Chinese economic data from last Friday showed that industrial company profits dropped 2% in August from a year ago. It reversed a 2.6% gain in the previous month, indicating growing pressure on the corporate sector as the economy slows further.
President Xi of China paid his respects to the founder of the Communist party Mao ahead of the 70th year anniversary of Communist rule in China. Tomorrow, there is expected to be a large buildup of military personnel in case any protests occur in Hong Kong.
Scientists at the Fudan University and Changchun Institute of Optics Fine Mechanics and Physics in China have developed a 500MP cloud-connected ‘super camera’ that can reportedly pick out facial details of an individual person among thousands in a crowded stadium. The new tech is raising serious concerns about privacy and government monitoring.
Pakistan’s prime minister, Imran Khan, warned last night that India’s actions in Kashmir could cause a “bloodbath” in the region and provoke war between the two countries. Tensions have been rising of late between the two nations since India repealed article 370. US President Trump has called on Imran Khan to critique Chinese treatment of Uighur Muslims.
A bid by four of the Indo-Pacific’s largest economies banded together to counter China’s growing influence in the region; the Quad group met for the first time at the ministerial-level in New York last Friday.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Some economic news from last night:
Some economic news from today:
The House of Commons today talked about the prospect of banning hedge funds from shorting the pound after the pound rebounded from the lowest point in history against the dollar. The UK also announced the economy has dropped 0.2% in GDP for the second quarter of 2019.
UK PM Boris Johnson is said to be planning to reveal the plan for Brexit at the last minute because he fears members of Parliament will block it again. MPs are discussing a possible legal case if the UK were to withdraw out of the EU by the 31st of October. Seems like that was the plan wasn’t it? Still, Boris Johnson feels adamant he can get it done, whilst Sajid Javid plans with the Tories to raise the minimum wage up to 10.50 pounds an hour. European ministers are calling the situation “gloomy,” stating that it is unlikely the EU will budge on a few points and 27 member states would have to agree on it.
The European Union has included Japan in its Asia “connectivity” plan, signing a landmark deal to coordinate transport, energy, and digital projects amid concerns over China’s dominance in infrastructure funding. This will be a direct competition to the silk road initiative by China.
Saudi Crown Prince Mohammed bin Salman told the international community that failure to control Iran could cause the price of oil to soar, and in turn destabilize the economy. He was also questioned of his involvement regarding the killing of Saudi news reporter Jamal Khashoggi, in which he replied, “I take full responsibility as a leader in Saudi Arabia, especially since it [the killing] was committed by individuals working for the Saudi government.” Yet, he denied being personally involved.
Oil slid after Iranian President Hassan Rouhani claimed Friday that the U.S. offered to remove all sanctions on Iran in exchange for negotiations. President Donald Trump and the State Department later denied those claims, causing oil to rebound from the lows.
The major Europe stock markets had a mixed day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
Rumors have been circulating that the US may delist Chinese companies from US stock exchanges. Senate Majority Leader Mitch McConnell dispelled rumors this Monday during an interview with CNBC. “We don’t want to make it more difficult for American companies to do business in China and for Chinese companies to do business here, but these national security implications are important,” McConnell stated. The Treasury Department has also quelled rumors, stating they have no interest in delisting Chinese companies. “The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time. We welcome investment in the United States,” tweeted Treasury spokeswoman Monica Crowley.
The US economy grew by 2% during the second quarter and the Federal Reserve recently upgraded their overall GDP projection for 2019 by 10 basis points to 2.2%. However, former Federal Reserve Chairman Janet Yellen referred to this forecast as “an optimistic projection.” Despite low unemployment, Yellen pointed to concerns over an overall decreasing workforce due to low birthrates and an aging population.
The presidential impeachment inquiry is continuing to grab headlines in the US, with the Democratic House of Representatives killing a resolution by the Republicans, who disapprove of a formal impeachment inquiry, in a vote of 222-184. Meanwhile, US President Trump attacked the lawmaker heading the House’s impeachment efforts, saying the chairman of the Intelligence Committee made misrepresentations when listening to the president’s conversation with Ukraine’s leader and subsequently called for him to resign. As of now, the House panels placed a subpoena on Secretary of State Pompeo for documents related to Ukraine probe. Today, Mitch McConnell stated he would have “no choice” but to bring the issue to the Senate floor if the House voted in favor of proceeding with the impeachment.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
Oil prices fell on Friday after fresh Chinese economic data revived concerns of slowing economic growth. A faster than expected recovery in Saudi crude oil output this week eased concerns of major supply disruptions. Today the oil price continued to fall by 3%.
The oil markets had a negative day today:
The above data was collected around 15:40 EST on Monday.
Japan -0.21%(+3bp), US 2’s 1.63% (+0bps), US 10’s 1.68%(+1bps), US 30’s 2.13%(+1bps), Bunds -0.58% (+bp), France -0.27% (+1bp), Italy 0.83% (+1bp), Turkey 13.20% (-20bp), Greece 1.39% (+2bp), Portugal 0.17% (-1bp), Spain 0.16% (+0bp) and UK Gilts 0.48% (+0bp).