Brexit: MPs vote to block no-deal

The UK Parliament has today voted to block the no-deal Brexit scenario. According to this bill, the Prime Minister will have to seek Brexit delay if no new agreement has been made by the 19th October. The bill was voted by numbers 327 to 299. This result has been a defeat for the new PM Boris Johnson, which has been against the delay of the exit time.

The Parliament also voted down the PM´s attempt for snap general elections, which would have needed two thirds of MPs to win the case.

On Wednesday the Treasury Committee published the letter of the Bank of England Governor Mark  Carney regarding the new updated Brexit perceptions. The BoE says that in no-deal Brexit case the economic impact would not be so severe than the bank´s forecast in November. This is due to the situation that there has been preparations by companies and government for the new trade situation.

– UK banks are capitalised to withstand much more adverse combinations of domestic and global economic shocks and to keep serving the UK´s households and businesses. The UK banks have sufficient capital to continue lending through both worst-case, disorderly Brexit and a global trade war, Mr Carney wrote in the letter.

The stocks closed slightly up in London on Wednesday and the FTSE-index was up 0,59 % to 7311 points. The UK sterling was trading also up 0,02 % at 1,23 dollars.

 

 

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China to make a complaint over US tariffs to WTO – stocks down

The US stocks were declining on Tuesday trading, when the Chinese government said it has made a complaint to the World Trade Organisation over US tariffs.

The S&P 500 dropped 0.5% shortly, while the Dow Jones Industrial Average lost nearly 1 % to 26146 points and he Nasdaq Composite fell 0.38% 7932 points.

Also the European indexes closed down: Dax-index -0,14 % to 11936 points, FTSE 100 -index -0,26 % to 7262 points and CAC 40 -index -0,33 % to 5479 points.

The U.S. imposed new tariffs on Chinese goods including clothing, tools and electronics on last Sunday as Chinese tariffs also took effect.

“We expect there will be continued volatility in the market over the next 30 to 60 days, said one market analyst according to Wall Street Journal.

 

Business Finance Lifestyle

Stocks plunged in Wall Street due to global growth

The global economic growth was the major concern in the financial markets today. Wall Street plunged and the main indexes showed decline by over 2,8 %. According to market analysts the economic information from China and Germany and the ongoing uncertainty with the UK Brexit-deal were the main topics.

China´s industrial output growth has declined to 17-years low and Germany´s export declined during the second quarter Reuters reported. S&P 500 -index declined by 2,77% to 2845 points, Dow Jones index by 2,91 % to 25516 points and Nasdaq-index by 2,87 % to 7786 points.

Department store Macy´s (M) published its figures and the stock declined by 13,22 % to 16,80 dollars. The company’s net sales during the second quarter was 5,5 billion dollars that is nearly the same level than a year ago. According to the release the company said the quarter was a slow start and was below expectations. Macy´s lowered its guidance for the whole year.

In Europe the stocks declined as well and in Germany the DAX-index closed down 2,19 % to 11 492 points and in France the CAC 40 -index closed down 2,08 % to 5251 points. In London the FTSE index closed down 1,42 % to 7147 points.

Euro was trading at 1,11 dollars and sterling at 1,205 dollars.

 

 

 

 

 

 

 

 

 

Business Finance

Tech stocks up in Wall Street – RealReal +12 %

The tech stocks soared up in Tuesday trading in New York. Apple´s (AAPL) stock closed up 4,23 % to 208,97 dollars due to the tariffs delays in the US China trade negotiations. Also retail gained and for example Amazon (AMZN) closed up 2,21 % to 1824 dollars. The tariffs delay is expected to help the Christmas shopping as well.

The re-used luxury online shop RealReal gained over 12 % in trading. The company published its second quarterly figures ending June 30th. According to the press release the total revenue gained 51 % to 71 million dollars from a year earlier and the average order value was 452 dollars. The net loss was 26,8 million dollars compared to the loss of 17,6 million dollars a year ago. The company had the IPO in the beginning of July.

Tesla (TSLA) was also up, 2,62 % to 235 dollars and Ralph Lauren (RL) also up 1,61 % to 93,41 dollars. The retail company Macy´s was also up, 0,41 % to 19,36 dollars. The company is to publish its figures on Wednesday.

Dow Jones- index closed up 1,44 % to 26 279 points, the large S&P 500 -index closed up 1,48 % to 2926 points and tech-index Nasdaq closed 1,95 % to 8016 points. Semiconductor sector index closed up 2,95 % to 1489 points.

Business Finance

US to delay some tariffs with China – stocks up

The US Trade Administration has delayed some tariffs with China. Tariffs, which were about to come into force in September, are now delayed until mid December. The goods, valued at 300 billion dollars, are related to some electronics, toys and clothings.

The US financial markets jumped after the news and Dow Jones -index is trading up 1,6 % and Nasdaq nearly 1,9 % up. The larger S&P 500- index is also trading up, 1,5 % and the Brent oil future is having over 5 % increase. Euro is trading at 1,12 dollars.

Business Finance

Stocks tumbled in NY – hit by trade war

The financial markets tumbled today globally as a response to the tightening trade war between the US and China trade. The global economy growth was the main concern in the markets while the Chinese currency, yuan decreased to its lowest levels in decade, to around 7 per dollar. Last week the US President Donald Trump informed about the new tariffs in the China trade.

Dow Jones index closed down 2,9 % to 25 717 points, the S&P 500 index closed down 2,99 % to 2844 points and the tech-Nasdaq index down 3,47 % to 7726 points. The gold and Japanese yen increased.

Apple (AAPL) closed down 5,23 % to 193,34 dollars, ride-hailing company Uber (UBER)closed down 3,34 % to 39,05 dollars, IBM (IBM) closed down 4,41 % to 140,76 dollars, Microsoft (MSFT) closed down 3,43 % to 132,21 dollars and Walmart down 3,27 % 105,82 dollars. Luxury company Ralph Lauren (RL) closed also down 3,19 % to 95,73 dollars. The electric car manufacturer Tesla (TSLA) closed down 2,57 % to 228,32 dollars.

According to Bloomberg market analyst, the trade war could hit US jobs as early as the next two months. This would also increase the global pressures for more rate cuts by the central banks in Europe and in the US. Last week the Fed lowered its fed funds by 25 basis points for the first time since the financial crisis.

In Europe the stocks were also down. In London the FTSE 100 index closed down 2,47 % to 7223 points, in Germany the DAX-index closed down 1,80% to 11 658 points and in France the CAC 40 -index closed down 2,19 % to 5241 points.

In Asia the Hang Seng closed down 2,85 % to 26151 points in Hong Kong and the Nikkei 225 index closed down 1,74 % to 20720 points.

Business Finance

Stocks mixed in NY before G20 Osaka

The US equities closed mixed today in New York ahead of the G20 meeting in Osaka, Japan on Saturday. The US President said he would use the “Plan B” if the US and China cannot proceed with the trade issues during the weekend. He said the new tariffs would be closer to 10 % rather than 25 %.

Dow Jones closed down 0,04 % to 26 536 points, S&P 500 index closed down 0,12 % to 2913 points, but Nasdaq ended up 0,32 % to 7909 points.

In the tech-stocks the ride-hailing company Uber (UBER) ended down 1,37 % to 42,45 dollars, showing the market capital of 72 billion dollars. The rival Lyft (LYFT) ended also down 1,67 % to 62,82 dollars with the market cap of 18,3 billion dollars. The latest IPO tech company, Slack Technologies rose 4,96 % to 32,37 dollars (16,4 billion market cap). Cryptocurrency Bitcoin reached above 13 000 dollars.

One of the hottest issues during the G20 leaders summit will be foreign exchange rates. Mr Trump has said that the US dollar is too strong compared to euro and Chinese yuan and thus taking competitive edge from the US companies. The G20 finance ministers and central bankers have already made their commitments from competitive devaluation, according to Bloomberg. In the markets, the Federal Reserve rate cut is expected to happen in July meeting.

The important meeting with President Donald Trump and the Chinese President Xi Jinping will be on Saturday. Mr Trump will also meeting for example the Russia´s President Vladimir Putin and Turkey´s Erdogan.

In Europe the stocks wee also mixed. In London the FTSE 100 index ended down 0,08 % to 7416 points, while in Germany the DAX index ended up 0,14 % to 12 245 points. In France the stocks declined by 0,25 % to 5500 points. The German 10 year government bond yield dropped to record low to -0,31 %.

The debate about Brexit continued and Boris Johnson, the PM and Conservative leader candidate, said that he does not expect no-deal departure on October.

The sterling was trading down 0,03 % to 1,2685 dollars, while euro was trading down 0,01 % to 1,1366 dollars. Dollar was up 0,54 % to 107,78 Japanese yen.

In Asia the stocks were also mixed. In Shanghai the stocks closed down 0,19 % to 3117 points, while in Hong Kong the Hang Seng index closed up 0,13 % to 28 221 points. In Japan the Nikkei 225 index ended down 0,51 % to 21086 points.

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