US stocks up – Uber & Lyft gained

The US stocks gained modestly in New York on Wednesday trading. The Fed, central bank left the key rates unchanged and expects that there is no need to change the rates during next year. The inflation is estimated to increase next year and would reach the inflation 2 % target in 2021.

Dow Jones closed up 0,11% to 27911,09 points, S&P 500 -index closed up 0,29% to 3141,62 points and tech-focused Nasdaq up 0,44 % to 8654,05 points. Tech and materials were the leaders of the trading day.

The ride-hailing companies Uber (UBER) and Lyft (Lyft) gained on Wednesday due to the positive report from Barclays. According to the estimate, Barclays estimates that both companies are well positioned to turn profit. Uber closed up 1,86 % to 28,42 dollars and Lyft closed up 4,64 % to 47,36 dollars.

Tesla (TSLA) closed up 1,11 % to 352,70 dollars, Ford up 0,44 % to 9,11 dollars and Apple (AAPL) up 0,85 % to 270,77 dollars.

The Fed also published its economic outlook, which estimates moderate growth for the next year and the unemployment rate is expected to stay at 3,5 %.

The big question of the US China trade deal is still open. The 15th December trade tariffs deadline is on Sunday and according to some media information, there have been talks to delay the deadline.

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Powell: Monetary policy is not the tool to volatility – rates unchanged

The Chairman of the Federal Reserve Jerome Powell said in the press conference today, that the monetary policy is not the right tool to tackle market volatility.  He commented the overall market volatility and the US China trade tensions, which have caused the global growth stagnation. The Federal Reserve have been in the repo-markets adding liquidity several times during this quarter.

Mr Powell also said that the central bank did not expect this kind of slowing global growth in the beginning of this year. – We did not expect this kind of slow growth for this 2019 year, he said today.

The Federal Reserve Open Market Committee FOMC decided the leave the rates unchanged. The federal funds rates range is between 1,5 % and 1,75 %. Mr Powell also mentioned that the central bank is interested to monitor changes in the repo-market operations in the future.

 

 

 

 

 

 

 

 

 

 

 

Business Finance

Fed: Economic outlook remains favourable- inflation target unchanged (updated)

The US Federal Reserve, Fed said today, that the US economic outlook has remained favourable. Inflation is expected to rise to 1,9 % next year and to 2,0 % in 2021.  The central banks inflation target is unchanged.

According to the Fed, the central banks monetary policy is well positioned and the policy will support growth and jobs.

The Fed left the federal funds rates unchanged as the markets expected. The fed funds range is 1,5%  – 1,75 %.

According to the central banks economy outlook, the median GDP for next year is 2,0 % and 1,9 % for 2021. The unemployment rate is expected to be 3,5% next year and 3,6 % in 2021.

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EU presented the Green Deal – climate-neutral continent (updated)

The European Commission presented today the “Green Deal” proposal for the climate-neutral continent in the world.  According to the Commission, becoming the world’s first climate-neutral continent by 2050 is the greatest challenge and opportunity of our times.

According to the Deal, it should “enable European citizens and businesses to benefit from sustainable green transition. Measures accompanied with an initial roadmap of key policies range from ambitiously cutting emissions, to investing in cutting-edge research and innovation, to preserving Europe’s natural environment.”

The European Green Deal covers all industry sectors, for example transport, energy, agriculture, buildings, and industries such as steel, cement, ICT, textiles and chemicals.

The EU Commission will also present the first European Climate Law and Biodiversity Strategy for 2030, the new industrial Strategy and Circular Economy Action Plan. The aim is also to make the Farm to For Strategy for sustainable food and pollution-free Europe.

All these actions require major investment and therefore the EU is also presenting a Green Financing Strategy next year.

-Achieving the current 2030 climate and energy targets is estimated to require €260 billion of additional annual investment, representing about 1.5% of 2018 GDP. This investment will need the mobilisation of the public and private sectors. The Commission will present in early 2020 a Sustainable Europe Investment Plan to help meet investment needs, the release says.

-At least 25% of the EU’s long-term budget should be dedicated to climate action, and the European Investment Bank, Europe’s climate bank, will provide further support. For the private sector to contribute to financing the green transition, the Commission will present a Green Financing Strategy in 2020, the EU said on Wednesday.

 

 

 

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Aramco shares performed the IPO price

The Saudi Aramco oil company started its trading in Riyadh today.  The company’s shares jumped 10 % in the early trading and the closing for the stocks was 35,20 riyals. This is above the IPO pricing of 32 riyals and the company valuation became closer to the earlier planned 2 trillion dollars.

The nearly 1,9 trillion dollars market cap Aramco has made history related to its IPO and the process itself. The IPO started in 2016 but was postponed due to several reasons and was finalised this year as part of the Saudi Arabia´s plan to modernise  the country’s gross domestic production. All the major Wall Street investment bankers were involved in the IPO. In the end majority of the shares ended to  “family and friends”, as the Kingdom said today.

Aramco is now the world’s largest company by market value followed by Apple (1,19 trillion dollars), Microsoft (1,15 trillion dollars), Alphabet (0,93 trillion dollars) and Amazon (0,86 trillion dollars).

The Aramco shares will be included in the world indices like MSCI and FTSE in the couple of weeks, Reuters said today.

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Brexit: Election race thightened – Sky

According to SkyNews election poll with YouGov, the Brexit general election race has tightened during the week. The survey, which included over 100.000 people, indicated a majority win to Tories, but the researcher noticed that this would not necessarily mean that the victory would be a clear majority.

According to the poll, Conservatives would win 339 seats, Labour Party 231 seats, SNP 41 seats and Liberal Democrats 15 seats. Greens would be unchanged with 4 seats.

The range for Conservatives seats in the Parliament would be between 311 – 367 and this would mean the end of the Tories as the largest party in the Parliament, Skynews reports.

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