Stocks up in Wall Street – Brexit talks continued

Stocks ended up in Wall Street on Friday. All the three major indices gained over 1 % because of the Bloomberg news that China has agreed to buy US goods by a value of 1 trillion dollars in order to reduce the US trade surplus to zero by 2024. Last year the trade surplus was 323 billion dollars.

Dow Jones – index gained 1,38 % and ended to 24706 points, S&P 500 -index gained 1,32 % and ended to 2670 points and Nasdaq 1,03 % to 7157 points. On Monday the markets will be closed due to Martin Luther King Jr holiday.

In London the Brexit talks continued and PM Theresa May had talks with EU-leaders and she met also other members of her Cabinet. According to Bloomberg she will have to present a new plan on Monday in the Parliament. The House of Commons will vote on different Brexit plans on January 29th. The stock markets ended up in London City and FT 100 -index gained 1,95 % to 6968 points.

In Germany the DAX index ended up 2,63 % to 11205 points and in France the CAC 40-index 1,70 %  to 4875 points.

In Asia the Nikkei-index ended up 1,24 % to 20666 points and in Hong Kong the Hang Seng index ended up 1,25 % to 27090 points.

Euro was trading 0,21 % down to 1,136 dollars. The UK sterling was down 0,85 % to 1,28 dollars.

Business Finance

Stocks to one-month high – Goldman up

The US stock markets continued their upward trend and the shareindexes reached one-month high during Wednesday trading. Two big financial companies, Goldman Sachs and Bank of America, both exceeded their earnings estimates.

Goldman Sachs reported its full year and fourth quarter earnings and according to the report, the group´s net revenues were 36,62 billion dollars and net earnings 10,46 billion dollars for the whole year 2018. The company shares jumped and lifted also Dow Jones- index and the banking sector as well.

-We are pleased with our performance for the year, achieving stronger top and bottom line results despite a challenging backdrop for our market-making businesses in the second half. For the year, we delivered double-digit revenue growth,
the highest earnings per share in the firm’s history and the strongest return on equity since 2009. We are confident that we are well positioned to support an even larger universe of clients, continue to diversify our revenue mix and deliver
strong returns for our shareholders in the years ahead, David Salomon, the CEO and Chairman of the Group said.

Dow Jones index ended up 0,90 % to 24 282 points, S&P 500 -index 0,41 % to 2623 points and Nasdaq ended up 0,39 % to 7051 points.

In London, where the UK Goverment won the confidence vote, FTSE ended down 0,47 % to 6862 points. The voting started at 7 pm local time. In Germany the DAX-index ended up 0,36 % to 10 931 points and in France the CAC-index ended up 0,51 % to 4810 points.

In Asia the Nikkei-index traded down 0,55 % to 20 442 points, while in Hong Kong the Hang Seng index ended up 0,27 % to 26 902 points.

 

Business Finance

Brexit: UK May wins confidence vote – crosstalks continue

The UK Prime Minister Theresa May´s Goverment wins the confidence vote in the Parliament today.  Numbers 325-306 the Goverment will continue its Brexit-negotiations and reaching some kind of deal with the EU.

Prime Minister Theresa May said after the voting results that she will continue the Brexit-negotiations with all the party leaders, starting tonight. She said that the target is to reach a statement by Monday about the EU deal in the Parliament.

Yesterday evening the Parliament rejected the  Goverment´s Brexit-deal and now the UK does not have any agreement to face the exit timetable March 29th. Many party leaders, including the Labour leader Jeremy Corbyn have stated that no-deal Brexit must be ruled out of the Brexit options.

EU leaders have not yet responded to the voting results but during the day there has been discussions of various options – including the extending the exit-time.

 

Business Finance

Brexit-deal rejected – stocks gaining in US

The UK Parliament has rejected the Brexit-deal with numbers 432-202. Prime Minister Theresa May and the other supporters fear that this could lead to a disorderly exit from the EU. According to the plan, the UK should leave the EU on March 29th.

After years of negotiations and fierce debate in the Parliament, the historic vote today means that the UK is now in a political crisis. The Labour leader Jeremy Corbyn said that he will ask for a vote of confidence, which will be tomorrow on Wednesday.

According to Reuters, the Cabinet ministers are still having a confcall tonight with the UK business leaders about the Brexit-vote and what does it mean to the business and City.

The EU has said that there will be no emergency summit beause of the situation. The EU leaders also confirmed that the deal, which was negotiated in November, will not be reopened.

The UK sterling was trading about 0,04 % up at 1,286 against to dollar. Euro was down by 0,49% to 1,14 dollars.

The US stocks were all up and Dow Jones showed 0,41 % to 24 008 points, S&P 500 -index was up 0,96 % to 2607 points and Nasdaq 1,47 % to 7007 points. In London the FTSE 100 ended up 0,73 % to 6895 points. In Germany the Dax-index ended up 0,33 % to 10891 points and in France the CAC 40 -index 0,49 % to 4786 points.

Business Finance

Brexit: Is there democracy?

After several months fierce debate over the Brexit agreement and its content, the next week will be historic for the UK economy and the country´s citizens. The Parliament is voting on Tuesday about the Brexit-deal and it will then give more guidance, how the Brexit-deal is going further and how the exit will happen on March this year.

The UK Prime Minister Theresa May and the Bank of England have warned of the non-deal Brexit. This means that if the Parliament rejects the negotiated Brexit-deal by the PM, this would be the worst scenario for the UK´s economy and its citizens, according to Central Bank´s analysis. The analysis, which was published in December, highlights that this would mean dramatically lower property prises, market volatility and  severe difficulties in trade for goods and services.

Today on Sunday, the PM Theresa May wrote in Sunday Express about her feelings and thoughts. Her message was clear: “It is time to forget the games and do what is right for the country”. She also pointed that by rejecting her Brexit-deal would mean that the Parliament has forgotten the original Brexit-vote and thus undermined the deomocracy.

In the BBC TV Labour leader Jeremy Corbyn told in today´s interview that his own view is that he would rather get a negotiated deal now and stop the danger of a no-deal exit from the EU.

Also the Japanese Prime Minister Shinzo Abe, who was visting the UK Cabinet last week in the UK,  sent his greetings that “the whole world want UK to avoid no-deal Brexit” and gave his full-support for the UK-EU deal.

Theresa May and her Cabinet have been discussing with the EU leaders about the Irish border issue ( a new physical border)  during the December and January time. This issue is sensitive for the UK, while the critics see this border issue as an binding element for the UK to follow the EU rules forever.  The new border would be between the Northern Ireland and the Republic of Ireland.

The UK economy saw the worst Christmas sales for years while the consumer confidence was weak due to Brexit. The UK economy is like in a war situation: the inventories are been filled with foods and drugs if the non-deal Brexit would cause chaos in the customs during the spring time. Travellers have been warned for the longer waiting times in the customs.

According to the Band of England´s Governor Mark Carney, the banks and the banking system are prepared for the worst, if this would be the case.

So, what to expect from the next week? The market volatility is expected to continue, but the traders and markets are looking for the Tuesday  UK decision until they make any big decisions. The markets are doing the thing PM May wished for today.

 

 

Business Finance

Stocks gained – no new news

Financial markets gained on the Wednesday trading in Wall Street. Dow Jones was trading 0,67 % to 23947, the tech- index Nasdaq was up 1,16 % to 6976 points. The composite index S&P 500- index was up 0,5 % to 2588 points.

The US-China trade talks gained also attention, when China committed to buy more US agricultural goods, energy goods and manufactured goods. Also president Donald Trump said that he is committed to make a deal.

In the UK the stocks ended up 0, 76 % to 3787 points. Prime Minister Theresa May was defending the Brexit plan. The Parliament is to vote about the deal on Tuesday next week. There were rumors in the EU side that the UK have to ask for an extention for the negotiating period.

In Germany the Dax- index ended up 0,83 % to 10893 points and in France the Cac- index ended 0,84 % to 4813 points.

In Asia the Nikkei-index ended up 1, 10 % to 20427 points. In Hong Kong the Hang Seng index ended up 2,27 % to 26462 points.

Business Finance

Stocks started up in Wall Street – Tesla and Apple in headlines

The financial markets ended slightly up on Wednesday trading in Wall Street. The year´s first trading day started with a small downside, but at the end of the day, the direction was positive with all the major Wall Street indices.

The electric car manufacturer Tesla (TSLA) announced its production figures from the fourth quarter and according to the information, the company produced 63.150 Model 3 Sedans during that period. Totally the company annual electric car production was about 245.200 in 2018. The official quarter figures are still to be published, the day is not yet confirmed. Tesla shares fell sharply first, but ended down 6,81 % to 305,50 dollars due to the published price cuts. The company informed that the car prices will be lowered by 2000 dollars in the US markets.

The second surprice for the markets was the mobile phone manufacturer Apple (AAPL), who said that the revenue forecast will be lower due to the economy situation in China. According to CEO Tim Cook, the China economy slowdown has been greater than earlier expected. Apple´s announcement sent the stock price to about 7 % decline.

Apple´s announcement was the first big information about the China economy and the trade talks situation. The President Donald Trump and his Chinese collaque President Xi Jinping are expected to continue the talks next week. During the holiday weekend president Trump indicated that the US and China trade talks have had positive signs.

In the US markets, the goverment shutdowns have continued and after the political leaders meeting the outcome was, that the shutdowns are expected to continue.

In the UK, The Brexit situation is the same as Prime Minister Theresa May said that the situation is not changed. According to Financial Times, PM May is going to have discussions with some of the European leaders during this week.  The UK Goverment has urged pharma companies and supermarkets to reserve enough drug and food stock in the case of no-Brexit. The UK Parliament is expected to vote on the deal in the middle of January.

Dow Jones -index ended up 0,08 % to 2344 points, S&P 500 -index ended up 0,12 % to 2509 points and Nasdaq-index ended up 0,46 % to 6665 points. In London the FTSE 100 -index was up 0,09 % to 6734 points and in Germany the DAX-index ended up 0,20 % to 10580 points.

In Asia the Wednesday trading was on negative side, while in Tokyo the stocks fell and Nikkei-index ended down 0,31 % to 20014 points and in Hong Kong  the Hang Seng index declined 2,77 % to 25 130 points.

Euro declined 1,04 % to 1,13 dollars as did the UK sterling, 1 % to 1,26 dollars.

Business Finance