Mnuchin: US considering to issue 50-year bond next year

The US Treasury Secretary Steven Mnuchin said the Government is “seriously considering” issuing a 50-year bond next year. He said in the CNBC interview that the Government is looking for cheaper and longer-term ways to finance its debt.

-This is something I have talked about over the last two years, it is something we are very seriously considering. We think there is some demand for it, he said.

For US the longest bond duration now is 30 years and this new 50-year bond would be called ultra bonds.

Regarding the bond demand in the financial markets, the European Central Bank announced today that they will start their asset purchase programme again in November. This means that the ECB will be buying 20 billion euros worth of bonds every month.

 

Business Finance

ECB to lower rates and restart bond buying

The European Central Bank ECB announced today that it has lowered the key interest rate to negative 0,50 % and that the central bank will restart the bond buying program.

– The interest rate on the deposit facility will be decreased by 10 basis points to -0.50%. The interest rate on the main refinancing operations and the rate on the marginal lending facility will remain unchanged at their current levels of 0.00% and 0.25% respectively, the central bank said in the press release.

– Net purchases will be restarted under the Governing Council’s asset purchase programme (APP) at a monthly pace of €20 billion as from 1 November, the bank continued.

The main messages stated again that the ECB will keep the interest rates at their present or lower levels until it has seen the inflation outlook to be nearing the 2 % target. The asset programme is expected to continue as long as necessary.

 

Business Finance

Trump to delay China tariffs by two weeks

The US President Donald Trump has said the US will delay some Chinese tariffs related to 250 billion dollars in the beginning of October 1st.

– At the request of the Vice Premier of China, Liu He, and due to the fact that the People´s Republic of China will be celebrating their 70th Anniversary on October 1st, we have agreed, as a gesture of good will, to move the increased tariffs on 250 billion dollars worth of goods (25% to 30%) from October 1st to October 15th, he tweeted.

The US and China have also earlier agreed that they will start the trade negotiations again in October.

Business Finance

Hong Kong to make rival offer of London Stock Exchange – FT (updated)

The Hong Kong Stock Exchange is making a rival offer of London Stock Exchange, LSE. According to Financial Times, the deal would be worth of 32 billion pounds.

According to the Hong Kong Exchanges & Clearing Ltd CEO Charles Li they considered the offer for months. He says that the combination would be rationale for many reasons and one of them is the assets trading in euros, dollars and renminbi.

– First, LSEG is one of the most well-known, highly respected and successful exchange groups in the world. Based in London, it is a global offshore centre for Eurodollars. Likewise, HKEX is one of the top Asian exchange groups based in Hong Kong, the world’s leading offshore market for Renminbi. A combination of two markets of this size and significance has never been done before and would create a globally-connected exchange group that serves as the leading international platform for financial assets denominated in US dollars, Euro and Renminbi, the CEO Li says in his blog today.

The HKEX has offered 20,45 pounds a share in cash and 2,495 new HKEX shares, which would make a 23 % premium to LSE´s closing price yesterday, the Financial Times says. The shares of LSE are trading up about 8 % to 7368 pounds in London.

 

Business Finance Tech

Brexit: UK Parliament 5 weeks break

The UK Parliament has started its five weeks break during this week. The MPs are getting back on the 14th October, while the Halloween deadline for Brexit is scheduled for the 31st of October.

The parties will be having their annual conferences during this time and also preparing for the possibility of general elections. The Prime Minister Boris Johnson has said that he will not delay the Brexit and his ambition is to get a new deal with the EU, with the new EU leaders.

On the other hand, if there is no new deal at the end of October, the 19th, the Prime Minister has to extend the deadline to the end of January 2020 and resign. And this would mean new elections or new referendum.

The Labour leader Jeremy Corbyn and other opposition parties have agreed not to back the PM´s demand for a general election before the EU-summit. The EU Summit will take place on the 17-18th October in Brussels.

 

Business Finance

Apple to integrate a new phone and content – Apple TV+

The US ecosystem provider Apple (APPL) has today announced the new iPhone 11 and news related to Apple TV service. The company is integrating the iPhone and tv content so that all new iPhone buyers get one year free tv stream from Apple.

– Customers who purchase any new iPhone, iPad, Apple TV, Mac or iPod touch starting September 10 can enjoy one year of Apple TV+ for free. Beginning November 1, customers can initiate the one-year free offer in the Apple TV app on the device running the latest software, the company said in the press release.Apple-tv-plus-launches-november-1-the-morning-show-screens-091019According to the iPhone launch the new iPhone 11 will cost 699 dollars and the Pro-model starting 999 dollars and iPhone 11 Pro Max 1099 dollars. The new models should be available from September 20th.

The Apple TV service will cost 4,99 dollars per month.

In Wall Street, the Apple news were taken positively and the company shares were trading up 0,11 %, while for example the other streaming service providers were down: Disney (DIS) shares were trading down  -2,71 % as well as Netflix (NFLX)  -3,52 %.

The general Dow Jones index was trading slightly down -0,14% and technology Nasdaq-index  -0,50%.

Business Finance Tech