The week in investor relations: Fed comments boost Wall Street
Stocks fell on Monday as losses in Apple shares put wider pressure on the tech sector with investors gearing up for key testimony from the Federal Reserve’s Jerome Powell later in the week, CNBC reported. And technology and healthcare shares drove US stocks to a low finish on Monday as the market fell for a second straight trading day following a recent run of record highs, reported the Los Angeles Times.
The South China Morning Post reported Monday that the People’s Bank of China is looking into officially sanctioning its own crypto-currency.
Deutsche Bank revealed a major banking overhaul – easiest the biggest since the financial crisis – closing its equity trading business and slashing 18,000 jobs as well as splitting off €74 bn ($83 bn) in assets, reported the Financial Times.
European stocks fell on Tuesday on the back of much bad corporate news, led by lower chemical and bank shares, reported the Wall Street Journal.
Also on Tuesday, sterling fell to levels not seen for two years in the face of Brexit uncertainty and the possibility of a no-deal departure from the EU, reported the FT.
In a rare move in private equity, European buyout group EQT is talking to investors about a potential IPO in Stockholm in November or December, reported the FT.
The FT reported that fund managers have put hundreds of thousands of pounds into the campaigns of Tory leadership candidates Boris Johnson and Jeremy Hunt as the investment industry keeps a close eye on the contest to become Britain’s next prime minister — and pick up clues on the future of Brexit and business. The donations are mostly from hedge fund managers including RK Capital Partners and SRM Global.
UK power company SSE has struggled to attract new investors because of the opposition Labour Party’s threat to renationalize energy, according to the FT.
On Wednesday, the Dow was given a boost and the S&P 500 went beyond 3,000 points for the first time ever on the back of remarks from Powell – who hinted that a rate cut is coming, reported CNN.
Many FTSE 100 companies were accused of hiring female directors for symbolic value and failing to advance women’s boardroom careers, according to a report from Cranfield University, reported The Guardian.
On Thursday, Reuters reported a rise in a range of stocks around the world as financial shares boosted Wall Street’s benchmark index.
Also on Thursday, Bank of England governor Mark Carney warned that a no-deal Brexit could trigger a major economic shock in the UK, reported The Guardian.
Market conditions were blamed as Zurich-based Swiss Re’s £3.3 bn ($4.1 bn) London IPO was suspended on Thursday, reported Sky News.
On Friday, the BBC revealed that extremely troubled travel company Thomas Cook is in intense £750 mn rescue talks with banks and its largest shareholder, Fosun, that would see the Chinese investor purchase the business.
The International Energy Agency expects the return of an oversupplied oil market next year, with oil supply in the first six months of 2019 exceeding demand by 0.9 mn barrels per day, according to CNBC.
After Carney’s comment on Brexit, senior Bank of England official Gertjan Vlieghe on Friday said the bank might need to cut interest rates to almost zero after a no-deal Brexit, reported Reuters.
In his latest outburst, US President Donald Trump launched a cutting attack on crypto-currencies, including Facebook’s proposed Libra coin, warning that the social media network might be subject to full banking regulation if it is to launch the project, according to the FT.
Stocks in major Asian stock markets closed higher overall on Friday, according to CNBC. US stock index futures also rose on Friday, with Wall Street set to prolong this week’s strong run after Powell’s dovish remarks boosted the likelihood of an interest rate cut this month, reported Reuters.