The US jobless rate falls to 3,5 % from 3,7 %. New jobs showed 136.000 increase in August.
Category: Business
US stocks turned up in late trading – Fed rate cut?
The US stocks turned up in the late trading on Thursday. The stocks were pressured by the three year low services index ISM indicating for a recession in the service sector. The market optimism was however back after the expectation of a growing Federal Reserve rate cut.
For example the UBS portfolio manger said in the Bloomberg Market Closing – program that the bank expects two more Fed rate cuts in order to mitigate the recession and to boost the economy.
Dow Jones index closed up 0,35 % to 26169 points, the S&P 500 -index closed up 0,81 % to 2910 points and the tech-index Nasdaq closed up 1,12 % to 7872 points.
The global recession question was also in the UK, where the service sector was showing a downturn in September.
WeWork´s layoffs and credit rating cut
WeWork was planning a 20 billion dollar IPO deal for this autumn, but the largest owner Softbank decided to postpone the IPO related to market conditions.
After the decision the company also announced changes in the top management. The company has now two co-CEOs Artie Minson and Sebastian Gunningham after the former CEO Adam Neumann decided to step back from operating role and focus on the board work.
Brexit: EU likely not to accept the new proposal
The comments related to the new Brexit proposal by the UK Prime Minister Boris Johnson show that the deal is unlikely. For example the Irish Prime Minister Leo Varadkar said on Thursday, that Ireland could not sign if there is no open Irish-British border.
The EU has backed the Ireland comments and said that the EU is open, but more needs to be done. According to European Commission President Jean-Claude Juncker the proposal has some issues that are problematic.
The equity markets ended down on Thursday as the global recession concerns were on the top of mind by investors. FTSE 100 -index closed down 0,63% to 7077 points in London. In Europe the German DAX index closed down 2,76 % to 11925 points, but in France the CAC40 -index closed up 0,30 % to 5438 points.
US stocks down – manufacturing data and trade tariffs
The US equity markets were clearly down in New York on Wednesday. The global growth concerns related to recent manufacturing and car sales data were the primary reasons. Dow Jones lost 1,86 % to 26078 points, the S&P 500 -index 1,79 % to 2887 points and the technology Nasdaq-index declined 1,56 % to 7785 points.
The US manufacturing data showed the global growth concern is having impact on the US economy. The US China trade talks have put pressures on the US manufacturing and for example the Ford Motor Company released its car sales figures, which were showing a decline in the third quarter. Also the declining figures in German manufacturing is one part of the global concern.
Tesla (TSLA) also announced its third quarter deliveries, which were approximately 97,000 vehicles, according to the company release. According to Tesla the total deliveries were at record level, but according to Reuters the deliveries were down to Wall Street expectations and the share fell over 6 % after the bell. Last week the CEO Elon Musk was quoting that the company may reach a six-figures deliveries.
The US also announced a new trade tariffs to the EU related to the WTO Airbus decision. The new tariffs would include 7,5 billion dollars worth of goods. According to Bloomberg this would mean a new 10 % tariffs to aircraft goods and 25 % tariffs on farming and other industrial items. The new tariffs would be effective by October the 18th.
In the UK the FTSE -index also declined 3,23 % to 7122 points. The UK Prime Minister Boris Johnson delivered the new Brexit proposal to the EU. The country is aiming the EU leaders summit on the October 17th in order to seek the deal with the EU.
In Germany the DAX-index closed down 2,76 % to 11925 points and in France the CAC 40-index declined 3,12 % to 5422 points.
US to impose new tariffs to the EU – WSJ
The US is imposing new trade tariffs to the EU after the WTO ruling related to Airbus subsidies. According to Wall Street Journal, the new tariffs are the largest escalation since the steel and aluminium import from the EU last year.
The US is imposing new tariffs on 7,5 billion dollars to the EU import starting on October the 18th.
Microsoft: Dual-screen devices for multitasking
The US tech company Microsoft (MSFT) has today announced five new products and two new dual-screen devices, Surface Neo and Duo, in its event in New York. According to Microsoft, the new dual-screen devices are being built in order to able more multitasking with one device and to enhance the mobile experience with Android apps.
– Surface Neo is dual-screen device built for productivity on Windows 10X, an expression of Windows 10. A 360-degree full-friction hinge connects two 9” screens, enabling Surface Neo to adapt to whatever posture you need in the moment. When you open it you have a full-size 13” display in the thinnest LCD in its class. It’s built for productivity and multitasking like a true PC would be, the company says.
– Surface Duo is the first Surface to fit in your pocket. Surface Duo brings together the best of Microsoft productivity experiences, Android apps and Surface hardware design into a single device you can take anywhere. And, yes, it makes phone calls. It has two paper-thin 5.6-inch screens that unfold to 8.3 inches, and just like Surface Neo, it can be used in a variety of modes to let you work the way you’d like, Microsoft adds.
-We’re excited to work with developers and the industry to create the next wave of dual-screen computing and unlock a new era of mobile creativity, the big tech says.
The company shares were down 1,79 % to 134,66 dollars in New York after the announcement.
