how are you? (September 25 -October 1st)
Rattle market for tax reduction plan
Last week, the newly used British government announced a great tax reduction plan, so the market had plummeted, the pounds fell, and the bank was excited to restore. Panic is a fear that the tax and expenditure measures proposed by the recently appointed Prime Minister, Liz Truss, will promote the rapid inflation of the country and go against the efforts of the Central Bank to suppress. According to Mr. Truss, the government will stimulate the investment, and the benefits will activate other economies, but the investors are not convinced. Their anxiety spread to the whole European and the United States where the benchmark index fell. The pound recorded the recorded minimum, almost the same as the dollar. On Wednesday, England Bank intervened and said that it would start purchasing large -scale British government bonds in the coming weeks to “restore orderly market environments.” The powerful intervention has helped the pound back slightly and the market regains some of the loss.
Wall street confusion
The shock wave from the UK arrived as an investor in Wall Street. In Wall Street, stock prices were upset due to concerns that inflation control measures of the Federal Reserve may have led to recession. S & P 500, S & P 500. Was the third quarter with a loss. This is the first time that his index has lost his loss for three consecutive quarters since 2009. Analysts have stated that investors will not be settled until the Central Bank begins to confirm signs of economic deceleration. Allow the FRB to start to relax the campaign to raise interest rates. There are concerns that the Fed will go too far and cause serious damage to the US economy. Central Bank’s policy proprieters argue that it is still possible to achieve so -called soft landing, which cools the economy without falling into a recession. Evidence is that they point out the long -term expectations of consumers for powerful employment markets, abundant jobs, and recently relaxed inflation.
Hurricane Ian damage
Some companies in the southeastern United States have announced temporary closure because tropical storms have returned to Hurricane and landed along the coast of South Carolina. It has been closed, and the retail store, grocery store, and restaurants have announced that they will close or adjust the business hours. UPS and Fedex warned florida customers that some of the states would not receive or deliver luggage and would be expected to be delayed. The US Postal Corporation said that it has closed about 100 facilities in the state. As Arashi goes north, Florida’s economy begins to resume, but then the process of evaluating the damage begins. Insurance companies and analysts have said that it is too early to estimate the damage of Ian, but 200. Some said that $ billions of dollars would be damaged by $ 40 billion and hundreds of thousands of insurance claims.
what’s next? (October 2nd to 8th)
Measure the temperature of the employment market
The employment market was cold in August, but the employer added 315,000 employment and continued to be strong. Analysts anticipate the same trend in his September employment statistics announced on Friday. As the Federal Preparatory System Board of Directors raises interest rates, we will focus on reports to see if the overheated labor market is starting to cool. There are some evidence that their efforts are working, even if the number of employment reports is not so. In recent weeks, some famous companies such as Meta and Goldman Sachs. , We announced a plan for frozen or temporary dismissal of employment. This suggests that the unemployment rate, which has maintained the minimum score in 50 years, may begin to rise quickly.
Glossy new inflation indicators
Usually, data on the sale of mini cars is not much attention from outside the automotive industry. However, with the deceleration of the economy, this figure is becoming more and more useful as an insight on consumer demand and corporate interests. During the summer when inflation was peaking, the demand was hot, and the dealer struggled to catch up due to a supply chain problem. As a result, I was able to offset the higher costs paid to the manufacturer, resulting in a record profit for the dealer. Currently, the rise in interest rates may cause the demand for new cars to cool down.
Supreme Court Business Docket
In the term of the new Supreme Court, which starts on Monday, the judge will be involved in some business issues that are controversial, such as government regulations, state -of -the -art trade, diverse employment, and freedom of religion in the workplace. increase. The case that includes the last two issues of these last may attract the most attention. One is a major issue for the enrollment program that is conscious of the race of Harvard University and the University of North Carolina. Notable companies such as Apple, Google, and Meta are carefully watching because these programs often function as adopted pipelines. In another case, the judge determines whether her designer in Colorado can refuse services to a website that promotes same -sex marriage. The lawsuit reflects her 2018 Masterpiece Cakeshop litigation.
what else?
Sabotage is suspected of leakage found last week in Node Stream 1 and Node Stream 2, a pair of natural gas pipelines that carry fuel from Russia. Porsche’s shares rose 2 % when their debut on the Frankfurt Stock Exchange, and opposed the market. The revision of the US gross domestic product indicates that economic growth in the first half of this year is more slow than before.