Business Report - Week 3 (From 21st to 25th January 2019)

Published on January 28, 2019

Business Report - Week 3 (From 21st to 25th January 2019)

Business Report - Week 3 (From 21st to 25th January 2019)

The week started off in the negative territory due to trade talks between China and the US have been canceled, concerns regarding global growth, and the US partial government shutdown.

  • The weekly performances of US markets were mixed with the Dow Jones up by 0.1%, Nasdaq up by 0.1%, and the S&P 500 down by 0.3%.

  • The International Monetary Fund cut its 2019 global forecast growth to 3.5% from 3.7%. The main reason for this cut is the rise of risk.

  • US existing home sales dropped 6.4% last December (December being the slowest month during the course of the year). The 2018 median home price was $259,100 the highest in US history.

  • Despite concerns over a global economic slowdown, US blue chips Q4 earnings were strong especially for IBM and Procter & Gamble.

  • Commerce Secretary, Wilbur Ross, said the US and China are miles and miles apart from getting a deal. Chinese officials are set to come to Washington at the end of the month to resume negotiations.

  • The number of US applications for unemployment benefits fell below 200,000 to 199,000 for the first time since 1969.

  • Unrest in Venezuela has lifted oil prices

  • Carlos Ghosn has stepped down as CEO of Renault. Mr. Ghosn was charged with under-reporting his compensation.

  • President Donald Trump and Congress reached a deal to reopen the government for three weeks ending the longest government shutdown in US history (35 days).

  • The markets believe that some kind of agreement will be reached between the US and China over trade issues. However, the US wants more than just reduce or eliminate tariffs, its end goal is clear rules that prevent intellectual property theft

  • Major Central Banks have been retreating from the idea of raising interest rates as the global economy has cooled down. China has implemented a stimulus package and Mario Draghi, head of the European Central Bank, has implied that the ECB is unlikely to raise interest rates before 2020.

What to Watch next week

  • Apple Earnings (Tuesday)
  • Dow Component Quarterly Earnings: Boeing, Visa, McDonald’s, and Microsoft will be released (Wednesday)
  • Job report (Friday)

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