Draghi: ECB rates unchanged – stimulus needed

The European Central Bank (ECB) kept its key interest rates unchanged in today’s Governing Council meeting. According to President Mario Draghi, the central bank is determined to keep the rates at least at the present or even lower level until the first half of 2020.

The tone of voice about the slow economic growth and the needed stimulus package has become more serious. The bank is now also considering the asset purchase program (APP) again.

-This outlook is getting worse and worse, and it is getting worse and worse in manufacturing and getting worse and worse in countries where manufacturing is very important, Mr Draghi said in the press conference.

He reminded about the geopolitical situation, trade tensions, lower manufacturing figures, hard Brexit and the low growth rate of Chinese economy as the main reasons for the low economic outlook. And he also said many times: We do not like what we see (referring to the low inflation figures).

The central bank said already in the previous press conference that it has helped banks to boost the financing and liquidity of corporate lending as part of the financial stimulus.

-Teltra 3 will help bank lending and access to finance especially for small and medium size companies in the euro-zone, Draghi reminded.

The financial markets are expecting that the ECB would lower its rates in September meeting, while the Federal Reserve is expected to do it already next week.

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Elon Musk: Tesla service development is going mobile

The Tesla (TSLA) CEO Elon Musk said in the company conference call yesterday that Tesla´s service development is going mobile, more and more in the future.

-Our mobile service is part of the growing service development, while this is the best way to reach our customers, Musk said.

The company also said it has opened 25 new service locations globally and that they measure the new locations by traffic and driving time. The need for service development is essential while the Tesla fleet have doubled in a year and the growth expectations are also showing the same trend. Also service needs to be scaled.

According to Musk, the car service operations is one of the main drivers for the new car sales. For example during the Q2 period this year, the company generated orders at a high pace.

Tesla is also developing its automation within the cars and for example the automatic stopping at the stop signs and traffic lights is going to part of the new safety automations. The Model 3 has reached the highest ever safety standards in the US Safety Assist Category, the company said.

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Tesla´s Q2 deliveries 95 356 – on track with China factory & Model Y

The US electric car manufacturer Tesla (TSLA) announced its second quarter results, which show that the company in on track with the Shanghai Gigafactory plant and with the new model, Model Y. It means the new factory would be ready by the end of this year and the new model by the fall 2020.

The company said its Q2 deliveries were 95 356 vehicles and they reach a record production of 87 048 vehicles. During the period Model 3 deliveries were 77 634 vehicles and the average selling price (ASP) was around 50.000 dollars. Tesla also said it expects its weekly production reach 10.000 by the end of the year. The total annual production expectation remained at 360.000- 400.000 vehicles.

The free cash flow was 614 million dollars. The car revenue was 5,3 billion dollars compared to 3,7 billion dollars in the previous quarter. The loss of car operations was 167 million dollars compared to 521 million dollars in the previous quarter and 621 million dollars a year earlier. The CEO Elon Musk said in the conference call that he expects the company to turn profitable during the rest of the year.

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Facebook’s revenue up 26 % to 16,9 billion dollars

Facebook’s revenue was 16,9 billion dollars during the second quarter, up 26% from the year earlier.

The tech company showed a 2,6 billion dollars profit, or 0,91 dollars per share. The profit would have been 1,99 dollars per share, but the 5 billion dollars settlement with the Federal Trade Commission decreased the profit.

The settlement was agreed due to the privacy issues in the Facebook processes.

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Brexit: No-deal is real again

The new UK Prime Minister Boris Johnson made his first public statement as a Prime Minister today. He said he is determined to deliver the exit on time and he said he is ready also for a no-deal Brexit, if it is the only way to declare the situation.

– The ports will be ready, the banks will be ready, the factories will be ready, business will be ready, he reminded.  He said he will take the issue on his own responsibility to deliver the Brexit on time.

According to Bloomberg he also promised lower taxes on capital investment and research, new road and rail infrastructure, plus full-fiber broadband. He also wants the UK to develop its own satellite systems.

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Brexit: Boris Johnson new PM -markets up

The UK´s next Prime Minister is Boris Johnson. He won the majority of the votes in the Conservative Party elections and will move to Downing Street 10 after he has visited Queen Elizabeth in Buckingham Palace tomorrow. The Queen will formally appoint the new Prime Minister.

– We are going to get Brexit done on October 31st and we are going to take advantage of all the opportunities it will bring, in a new spirit of can do, Mr Johnson said after the voting results.

The stock markets were up in globally, partly of the good earnings results, for example from Coca-Cola and of positive signs in China-US trade talks. The US trade representative Robert Lighthizer will travel to China next week in order to continue the trade talks.

Dow Jones closed up 0,65 % to 27 349 points, the tech Nasdaq-index up 0,58% to 8251 points and S&P 500 index +0,68 % to 3005 points, reaching over 3000 points.

In Europe the FTSE 100 index closed up 0,56 % to 7556 points in London, the DAX-index closed up 1,64 % to 12490 points and in France the CAC 40 index closed up 0,92 % to 5618 points.

In Asia the stocks also rose in Tuesday. The Nikkei index closed up 0,95 % to 21 620 points and Hang Send in Hong Kong rose 0,34 % to 28 466 points. The Shanghai Composite rose 0,45 % 2899 points.

The euro was trading 1,11 dollars. The UK sterling was at 1,11 euros and at 1,24 dollars.

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