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.

Business Finance

Ralph Lauren to source 100% sustainable materials by 2025

Ralph Lauren Corporation (RL) unveiled its renewed strategy on Global Citizenship & Sustainability today in New York. According to the new company sustainability strategy, Ralph Lauren will source 100 % sustainable materials by 2025, including cotton.

The strategy named “Design the Change”, is both a commitment and a journey to accelerate the Company’s work across citizenship and sustainability.

-When Ralph founded our Company more than 50 years ago, he did so with the conviction that whatever we create is meant to be worn, loved and passed on for generations,” says Patrice Louvet, CEO and President, Ralph Lauren Corporation.

Design the Change is focused on three areas where Ralph Lauren can create the greatest positive impact: Creating Timeless Style, Protecting the Environment, and Championing Better Lives. Its foundation is 16 ambitious goals that will guide the Company’s work across each of these areas.

Some of the company key performance indicators are:

  • Achieve 100% sustainably-sourced key materials – including cotton – by 2025
  • Train design, product development and merchant teams on sustainable, circular, inclusive and culturally-aware design annually by 2020
  • Set science-based greenhouse gas reduction targets by 2020 and 100% renewable energy targets by the end of 2019
  • Achieve gender parity with equal representation in leadership positions at the Vice President level and above by 2023
  • Increase female representation in factory management by 25% by 2025

The strategy also include the product actions like EarthPolo, the innovative fabric produced entirely from plastic bottles. One Polo is made from approximately 12 plastic bottles.

The sustainability strategy also integrate better gender balance in different positions in the company and a new campaign to close the leadership gap between  women and men.

Ralph Lauren (RL) shares were trading up 0,18 % to 113,86 dollars in New York today.

 

Business Finance Lifestyle

Stocks markets rally – rate cut & QE possible

The stock markets rallied on Tuesday, when Federal Reserves Chairman Jerome Powell signalled a possible interest rate cut if needed. He was referring to the trade negotiations between the China and US. Also some markets estimates that the ECB, The European Central Bank, would start again the quantitative easing actions from January, lifted the trade worries.

Dow Jones index ended up 2,06 % to 25 332 points, S&P 500 index ended up 2,14 % to 2803 points and the technology-index Nasdaq closed up 2,65 % to 7527 points. According to Bloomberg News, this increase was the biggest since January.

The big banks and the car manufacturers were the leading sectors. The economic slowdown due to the trade tariffs between the China and US has been pushing the stocks downward trend.

The recent IPO-companies were mixed, the Uber (UBER) closed up 3,64 % to 42,53 dollars, while Lyft (LYFT) closed down 0,62 % to 59 dollars. The market speculation which of the new companies would power the better way to autonomous future continued. The electric car manufacturer Tesla (TSLA) closed up 8,17 % to 194,50 dollars.

From the financial markets side, Goldman Sachs (GS) ended up 3,65 % to 190,40 dollars and JP Morgan (JPM) closed up 3,08 % to 109,77 dollars.

The global economic situation was also in the World Bank´s new economic estimate on Tuesday, that the global economy is decreasing next year due to the trade situation. -Global economic growth is forecast to ease to a weaker-than-expected 2.6% in 2019 before inching up to 2.7% in 2020, the World Bank says.

The Dutch banking group ABN Amro said in their review that they expect the European Central Bank to start the quantitative easing program again in January 2020. They expect the buying of bonds start from 70 billion euros next year and that the ECB would need to rise the issuer limit from 33 % to as high as 50 %.

It is expected that this new policy decision will be given to the new ECB president, which is going to be elected during this year as part of the EU top jobs puzzle. Mr Mario Draghi is leaving the central bank during this year. The ECB is having its next Governing Council meeting on Thursday in Vilnius, Lithuania.

In Europe, the stocks ended also up and the FTSE 100 index closed up 0,41 % to 7214 points in London. In Germany the DAX-index closed up 1,51 % to 11971 points and in France the CAC 40 index ended up 0,51 % to 5268 points.

The euro was trading flat at 1,125 dollars and the sterling was up 0,01 % to 1,2699 dollars.

Business Finance