German industrial production falls. Market moving daily news roundup – events & news likely to move markets 6th September 2019
Company performance, economic and political events but especially market sentiment will always influence market movement, for good or bad.
Summary
Economic calendar – scheduled news and events 6th September 2019
Germany – industrial production data due: 07:00 BST
UK – BoE consumer inflation expectations for next 12 months due: 09:30 BST
EU – GDP data due: 10:00 BST
EU – ECB member speech due: 10:15 BST
Russia – interest rate decision due: 11:30 BST
U.S. – non-farm payroll data due: 13:30 (This figure will be very closely watched).
U.S. – unemployment data due: 13:30 BST
Canada – employment data due: 13:30
Canada – PMI data due: 15:00 BST
U.S. – Fed’s chair Powell speech due: 17:30 BST
German industrial production falls
As the industrial powerhouse of Europe should we be worried by these figures? Is Germany facing recession in the next quarter?
German industrial production unexpectedly fell in July amid continuing worries that Europe’s largest economy could slip into a recession.
‘The industrial economy remains weak,’ the German economics ministry said. ‘In view of the weak start to the second half of the year and the lack of recovery in incoming orders, no improvement in the industrial economy is yet in sight,’ it added.
UK – U.S. trade deal talks
The U.S. Vice President is in London to hold trade talks with the Prime Minister, he gave a business speech Thursday. What are the UK – U.S. trade deal expectations?
Halifax UK house prices
UK house prices edged up last month, but the trend remains flat according to the latest data set released by Halifax.
China’s digital currency close to launch
China’s central bank has been preparing its own digital currency. The government is now saying that it will bear a similarity to Facebook’s Libra virtual currency.
Facebook has come under increasing criticism of its digital currency plans from central banks chiefs, regulators and politicians.
FTSE 100 remains flat and Sterling is down against the dollar.
U.S. Jobs report
August job creation was below target with 150,000 jobs created vs 158,000 expected. Investors will fret over this jobs report over concerns that the global manufacturing slowdown may spread to the service sector.
Slower job growth in the U.S., a creeping global slowdown, trade tensions, yield curve inversions, Brexit problems, Germany facing recession and general global recession woes are beginning to nibble away at investors confidence for equities again.
The Fed is quite likely to cut interest rates in September, but the markets expectations of endless rate cuts will be hard to accommodate.
Facebook facing competition probe
An antitrust investigation into Facebook has been launched to determine if the social media company has stifled competition and put users at risk.
The U.S. Department of Justice has reportedly launched an anti-trust investigation into car makers, Honda, Ford, Volkswagen and BMW over carbon emission standards.
Has the Conservative Party pressed the self destruct button?
- Parliament force through vote to take control of ‘no-deal’ Brexit – and within days the bill is passed by the House of Lords.
- A Conservative Party member publicly defected to the Liberal Democrats in clear view of the PM.
- On Wednesday night, the prime minister’s office stripped 21 others of the party’s parliamentary support after they voted against the government.
- His younger brother, Jo Johnson chose to resign his ministerial post and membership of Parliament on Thursday.
- More critical Parliamentary votes lost in quick succession – including the blocking of the vital a ‘no-deal’ vote and the vote to call for a general election.
- After a week of defections, sackings, resignations and failed policies and votes – Where now for Boris?
Boris to the rescue?
Boris Johnson campaigned to become leader of the Conservative Party, and by default, prime minister – on a promise that he would unify his party, and the United Kingdom, after years of fractious debate over the UK’s continued membership of the European Union.
So far he has achieved just two of those ambition… he became leader of the Conservative Party and by default he became PM – but he hasn’t made any progress in healing the United Kingdom, at least not yet!
Instead this week his aggressive strategy on Brexit, and to some extent his personal behaviour, has divided the Conservative party and possibly the UK even more. He desperately now needs an election – but will he get it? Or…
Knight in shining armour?
Will Nigel Farage of the Brexit Party ride to his rescue or will it be too late – will Boris Johnson be left to flounder and sink to become the biggest failure and shortest term serving PM in UK history?
This Brexit process has been cruel and taken no enemies. Boris is the third PM to serve in as many years. Will he just become another EU scalp? Or, can he dig a rabbit out of the hat – will he be able to garner public support for a general election? So far we have lost two PMs, Cameron and May in the Brexit battle. Is Johnson to be the third?
And remember – all the UK is attempting to do at this stage is to leave the EU – we’ve yet to start the serious process of negotiating future trade terms and deals!
God help us!.
Brexit latest
Opposition parties decide to block PM’s attempt to bring about a general election. The contentious closing of parliament was upheld as lawful by court. House of Lords pass ‘no deal’ Brexit deal.
Federal Reserve – Jerome Powell’s speech
On Friday 6th September 2019, Jerome Powell said that the ongoing trade war between China and the U.S. is weighing down companies investment decisions. Powell also said that lower interest rates are helping to keep the U.S. economy in a good place and that he does not expect the U.S. economy to fall into a recession.
Over to you then Trump.
Stock market indices update, 6th September 2019
Closing positions of: FTSE 100, DAX, DOW, S&P 500, NASDAQ, NIKKEI & GOLD
FTSE 100 – closed at: 7282
DAX – closed at: 12192
DOW – closed at: 26797
S&P 500 – closed at: 2979
NASDAQ – closed at: 8103
NIKKEI – closed at: 21199
GOLD – closed at around: $1,525
Key: Green highlight markets move up. Red highlight markets move down. All values rounded.
Note
Company performance, economic and political events but especially market ‘sentiment’ will always influence market movement, for the good or bad.