Trump to meet Chinese top negotiator Liu on Friday

The US president Donald Trump will meet the top trade negotiator from China  in Washington on Friday.  According to his Twitter, he will meet Mr Liu He in the White House.

According to Bloomberg, last week the US Administration approved licenses for some American companies to sell tech goods to Huawei Technologies. And China agreed to buy more US agricultural products.

The latest US China trade news have lifted the stock markets and Dow Jones index is now trading up 0,62 %, S&P 500 -index up 0,60% and Nasdaq index up 0,64%. In London, the stocks were also up 0,38 %.

Business Finance

Brexit: The UK Parliament to sit on Saturday 19th

The UK Parliament is having a working day on the 19th of October after the EU Leaders meeting. According to Independent, the Parliament is getting ready for different kind of Brexit scenarios.

The UK Prime Minister Boris Johnson is having different leaders meeting during this week and for example meeting with the Irish Prime Minister Leo Varadkar. Yesterday the German counsellor Angela Merkel told the media, that the Brexit-agreement seems unlikely if the Irish border issue is not solved.

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Hong Kong Exchange is not proceeding with LSE

The Hong Kong Exchanges and Clearings (HKEX) has today informed that they will not proceed with the London Stock Exchange Group (LSEG) offer.  The company says it is disappointed about the feedback of the suggested merger, while Hong Kong still sees the merge would have offered the world-leading exchange services and products.

The stocks of the Hong Kong Exchanges and Clearings were up 2,92 % to 232,60 dollars in Hong Kong today.

 

 

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Volvo Cars and Geely to combine R&D and engine operations in electric cars

The new Volvo XC60

The Swedish Volvo Cars and its Chinese owner, Geely have announced a plan to combine their electric cars R&D and engine operations. The aim is also that the new unit will offer the services to other customers in the future. The change is part of the Volvo Car´s focus in electrification of its whole production.

This means that the companies intend to merge their existing combustion engine operations into a stand-alone business that will seek to develop next generation combustion engines and hybrid powertrains.

– The proposed new business would clear the way for Volvo Cars to focus on the development of its all-electric range of premium cars. Volvo Cars is building an entirely electrified product range, as part of the company’s ambition to put sustainability at the core of its operations. By the middle of the next decade it expects half its global sales to be fully electric and the other half hybrid, supplied by the new unit, Volvo said in its press release.

– For Geely, the planned new entity means technologically-advanced and efficient combustion engines and hybrid powertrains would be available to Geely Auto, Proton, Lotus, LEVC and LYNK & CO. The planned new stand-alone business can also supply third party manufacturers, providing possible growth opportunities, companies say.

The new entity will have 3000 employees from Volvo Cars and around 5000 employees from Geely´s combustion engine operations.

Volvo Cars believes the electrification of the automotive industry will be a gradual process, meaning there will be significant ongoing demand for efficient hybrid powertrains alongside fully-electric offerings.

-Hybrid cars need the best internal combustion engines. This new unit will have the resources, scale and expertise to develop these powertrains cost efficiently, said Håkan Samuelsson, Volvo Cars’ president and chief executive.

The detailed plans of the new business are under development and subject to union negotiations as well as board and relevant authority approvals, companies say.

Volvo Cars is about to launch its first fully electric XC40 in October 16th. Later in October Volvo will also publish its Q3 report.

Picture: The new Volvo XC60 T8 R-Design in Crystal White

Business Finance

Brexit: PM does not have to ask for extension – Court

The Scottish judge has today announced that the UK Prime Minister Boris Johnson does not have to ask for the extension to the Brexit-deal if there is no deal ready by 19 October.

The EU leaders summit is taking place 17-18 October and some MPs have asked that the UK Government should ask extension to Brexit if the leaders are not able to reach an agreement in order to avoid the no-deal scenario.

This positive sign for possible Brexit deal was welcomed in the markets and FTSE 100 -index closed up 0,59% to 7197 points in London. In Germany the markets closed also up and Dax-index rose 0,70 % to 12097 points. In France the CAC 40 -index closed up 0,61 % to 5521 points.

 

 

Business Finance Lifestyle

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.

 

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