China today held a military event showing off their military might. This event marked the 70th year anniversary of Communist rule in China. They showed off their new intercontinental ballistic missile, which has a reach of 12 to 15 km. The worrying thing for most of the world is the speed at which it could hit the US within only 30 minutes.
Today a tour guide in California, US, was charged with being a Chinese agent. The US Department of Justice said that Mr. Peng was purchasing secrets from an FBI leak and giving it to Chinese intelligence services.
Japan today increased their consumption tax for the first time in five years, raising the rates from 8% to 10%. The new rates will impact most services and good, although food seems to be exempt from the hike. The reversed ruling will enable more security for lower caste communities.
India’s Supreme Court has reversed one of its previous judgements that put lower caste groups with less protections. After the original ruling, around 8 people died after violent outbreaks occurred across India.
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 World Trade Organization reported that they expect global trade growth to the decline to the lowest point in a decade. They revised global growth down to 1.2%, compared from April’s expectation of 2.6% for the year. They mentioned many uncertainties such as trade as well as Brexit, indicating less trade will also equate as less jobs.
The UK factories are currently cutting jobs at the fastest pace in six years. New orders fell at the fastest pace since February 2013. UK transport minister George Freeman confirmed that state could drop further with a no-deal, with the disruption could cost the UK a billion GBP a week.
Anti-Brexit supporters are trying to force a legal motion in a bid to ask the EU for a delay to Brexit. Today, the UK government also apparently revealed its detailed plan for EU negotiations. The UK proposals contain a “custom clearance zone” on both sides of the Irish border. In a tweet by the Deputy PM of Ireland, Simon Coveney said the proposals were not acceptable and both Ireland and NI deserve a better solution. The spokesman for the Irish government said that proposal fell well short of the objectives of the backstop.
Iran sentenced a man to death today for spying for the US in Iran; two others were sentenced for 10 years and a UK citizen also was charged. Later, a UK spokesman said that the death sentence was later repealed. Iranian parliament speaker Ali Larijani also opened an invite to the Saudi crown prince for talks with the two countries in an attempt to resolve issues with the two countries. The crown prince was also quoted stating, “The political and peaceful solution is much better than the military one.”
The major Europe stock markets had a negative day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
US manufacturing declined to a 10-year low in September. The Institute for Supply Management (ISM) Purchasing Manager’s Index read 47.8% last month, a reading unseen since June 2009. Notably, June 2009 was also the last month of America’s Great Recession. According to the ISM, any reading beneath 50% signals a contraction. The data caused momentarily appeased investors to fear a potential recession once again. “Global trade remains the most significant issue, as demonstrated by the contraction in new export orders that began in July 2019,” stated Timothy Fiore, chair of the ISM Business Manufacturing Survey Committee. Fiore believes the best way to reverse the contraction would be to increase new exports. “There needs to be some relaxation here in trade,” Fiore continued. The data released today shows that new exports declined to 41% in September, down from August’s reading of 43.3%. Many see this decline as a clear signal that the US-China trade war is beginning to damage the economy.
Although the ISM cited trade and tariff wars as the main culprit for the manufacturing decline, President Donald Trump pointed a finger at the Federal Reserve. “As I predicted, Jay Powell and the Federal Reserve have allowed the Dollar to get so strong, especially relative to ALL other currencies, that our manufacturers are being negatively affected. Fed Rate too high. They are their own worst enemies, they don’t have a clue. Pathetic!” Trump tweeted this Tuesday. This data is likely to influence the Fed’s next rate decision at the end of the month.
Huawei Technologies executive Meng Wanzhou’s lawyers are now claiming that Canada’s border security illegally arrested their client last December. Citing the Extradition Act, Wanzhou’s lawyers claim that Canada was not permitted to issue an arrest on behalf of the US, who was seeking Wanzhou’s detainment over violating sanctions placed on Iran. The issue is further straining both US’ and Canada’s deteriorating relationship with China. Wanzhou’s extradition trial will take place this January.
US Market Closings:
Canada Market Closings:
Brazil Market Closing:
Oil prices rebounded intraday on reports that output from the world’s largest oil producers (OPEC, Russia, and the US) fell during the third quarter, although positive supply from Saudi curbed the rebound and pushed crude oil back into the red.
The oil markets had a negative day today:
The above data was collected around 12:40 pm EST on Tuesday.
Japan -0.15%(+8bp), US 2’s 1.54% (-8bps), US 10’s 1.62%(-5bps), US 30’s 2.09%(-3bps), Bunds -0.56% (+1bp), France -0.27% (+0bp), Italy 0.86% (+3bp), Turkey 13.46% (+26bp), Greece 1.40% (-24bp), Portugal 0.18% (+2bp), Spain 0.17% (+2bp) and UK Gilts 0.47% (-2bp).