WeWork´s layoffs and credit rating cut

The US office-rental company WeWork has said it is in the process of laying some of its employees after the abandoned IPO process. According to Bloomberg, the size of the layoffs will be published later this month.
The company faced also a credit rating cut from Fitch. According to Fitch, the office provider is now in the CCC+ category, which means a junk bond rating. The credit outlook is now negative.
WeWork was planning a 20 billion dollar IPO deal for this autumn, but the largest owner Softbank decided to postpone the IPO related to market conditions.
After the decision the company also announced changes in the top management. The company has now two co-CEOs Artie Minson and Sebastian Gunningham after the former CEO Adam Neumann decided to step back from operating role and focus on the board work.

 

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Brexit: EU likely not to accept the new proposal

The comments related to the new Brexit proposal by the UK Prime Minister Boris Johnson show that the deal is unlikely. For example the Irish Prime Minister Leo Varadkar said on Thursday, that Ireland could not sign if there is no open Irish-British border.

The EU has backed the Ireland comments and said that the EU is open, but more needs to be done. According to European Commission President Jean-Claude Juncker the proposal has some issues that are problematic.

The equity markets ended down on Thursday as the global recession concerns were on the top of mind by investors. FTSE 100 -index closed down 0,63% to 7077 points in London. In Europe the German DAX index closed down 2,76  % to 11925 points, but in France the CAC40 -index closed up 0,30 % to 5438 points.

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US stocks down – manufacturing data and trade tariffs

The US equity markets were clearly down in New York on Wednesday. The global growth concerns related to recent manufacturing and car sales data were the primary reasons. Dow Jones lost 1,86 % to 26078 points, the S&P 500 -index 1,79 % to 2887 points and the technology Nasdaq-index declined 1,56 % to 7785 points.

The US manufacturing data showed the global growth concern is having impact on the US economy. The US China trade talks have put pressures on the US manufacturing and for example the Ford Motor Company released its car sales figures, which were showing a decline in the third quarter.  Also the declining figures in German manufacturing is one part of the global concern.

Tesla (TSLA) also announced its third quarter deliveries, which were approximately 97,000 vehicles, according to the company release. According to Tesla the total deliveries were at record level, but according to Reuters the deliveries were down to Wall Street expectations and the share fell over 6 % after the bell. Last week the CEO Elon Musk was quoting that the company may reach a six-figures deliveries.

The US also announced a new trade tariffs to the EU related to the WTO Airbus decision. The new tariffs would include 7,5 billion dollars worth of goods. According to Bloomberg this would mean a new 10 % tariffs to aircraft goods and 25 % tariffs on farming and other industrial items. The new tariffs would be effective by October the 18th.

In the UK the FTSE -index also declined 3,23 % to 7122 points. The UK Prime Minister Boris Johnson delivered the new Brexit proposal to the EU. The country is aiming the EU leaders summit on the October 17th in order to seek the deal with the EU.

In Germany the DAX-index closed down 2,76  % to 11925 points and in France the CAC 40-index declined 3,12 % to 5422 points.

 

 

 

 

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Brexit: New proposal to EU this week

The UK Government will send a new Brexit proposal to the EU during this week. The aim is to target the EU leaders meeting on October 17th in order to have the deal before the deadline.

The main question is still the Irish border issue and the island itself. There have been several leakages from the proposal but according to EU spokesman so far the EU has not seen a document that would bring new proposal to the Irish question.

The financial markets were down in Europe. The FTSE 100-index was down 0,65 % to 7360 points in London and the German Dax-index was down 0,97 % to 12 307 points. In France the CAC 40 -index was down 0,99 % to 5621 points.

The US dollar was trading at 0,818 pounds and at 0,918 euros.

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Brexit is happening next month – Tories -Skynews

– Brexit is happening next month, says UK´s foreign secretary Dominic Raab in the Conservative Party conference in Manchester on Sunday. According to Skynews, Mr Raab said that there is “no ifs or buts”.

According to the news, Prime Minister Boris Johnson commented that he has a plan to break the Brexit deadlock in a way the MPs could support.

PM Johnson has faced several questions of his tone of voice in the Parliament regarding the Parliament suspension. And this has also increased the concern if the Government is able to find a solution to the Brexit deal and the Irish border issue before the October 31st.

In the financial markets, one of the Bank of England´s Monetary Policy Committee members,  Mr Michael Saunders, estimated that the Central Bank´s Bank Rate, the key rate in the UK, might be moving down rather than up. He commented the interest rates markets situation last week. During the same week, the US Federal Reserve continued also to support the short-term repo-markets.

 

 

 

 

 

 

 

 

 

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Trump considers to ban Chinese listings on the US?

The US President Donald Trump is considering to ban the new listings on US exchanges and also to hinder the US pension funds to make investments in Chinese equities. The news send the US stock markets down while it is a sign of new tensions between the US and China trade talks, which should begin again in October.

The news about the topic and content were mixed in different media sources. For example according to Financial Times the sanctions would mean listings and financial investments between the countries. On the other hand, according to Reuters it was about how the Chinese companies could be delisted from the US markets.

The real content of the idea will maybe revealed later on, but the fact is that both ways would mean a dramatic change in the financial markets and its global functions. And some one could also consider if it would be possible anyhow. The financial markets regulations is not one-way street, but rather a highway or even a crossroad of high speed trains.

Big Chinese companies like Alibaba Group Holdings and JD.com both declined over 5 % after the news in New York. According to Reuters, there are 156 Chinese companies listed in Nasdaq and NYSE.

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