10 things you need to know before European markets open
Reuters/Leonhard Foeger
Colourful umbrellas decorate Dorner Platz in Vienna, Austria on September 1 2016.
Good morning! Here’s what you need to know on Friday.
Japan could make a huge investment in a Russia oil giant. Japan will propose a broad cooperation in the energy sector with Russia that could include a nearly $10 billion investment in Russian state-owned oil giant Rosneft, the Nikkei newspaper reported on Friday. The report comes as Prime Minister Shinzo Abe plans to meet Russian President Vladimir Putin on the sidelines of a two-day business conference beginning Friday in Vladivostok.
Albert Edwards thinks that the crutch holding up the US economy is about to be ‘kicked away.’ Societe Generale strategist Edwards argued that declining business investment and profits are presaging a recession — a point that he has made a number of times, and that the only thing supporting the economy is the consumer, which comprises about 70% of US gross domestic product.
Friday is US non-farm payrolls day. Friday’s jobs report will be the first in a while that really puts the Federal Reserve on the spot. As we approach one year since the first rate hike of this economic recovery, labor market data increasingly supports another one soon. NFPs are expected to increase by around 180,000.
Regulators are warning that U.S. banks need better defences against an interest rate shock. Years of stubbornly low interest rates and expectations they will remain low for years to come have prompted U.S. banks to shift their balance sheets in ways that put them at risk if rates suddenly spike, regulators are warning.
It is construction PMI day in the UK. Friday’s data release will give a snapshot of whether the UK’s construction sector continued to decline in August, or rebounded in a similar fashion to the manufacturing sector. July’s construction PMI from IHS Markit and CIPS showed the sector shrinking at its fastest rate since the financial crisis.
Crude oil is on track for its worst week since January. Crude prices rose on Friday after losses of more than 3 percent a day earlier, with investors treading cautiously ahead of key U.S. employment data that will help gauge the health of the world’s largest economy and oil consumer. Brent and West Texas Intermediate crude futures are on track for their biggest weekly losses since mid-January, hit by oil inventory builds and weak U.S. manufacturing data.
SpaceX was testing a Falcon 9 rocket at a Cape Canaveral launch pad when it was rocked by powerful explosions. The blast destroyed the rocket itself and Facebook’s Amos-6 satellite it was carrying. Falcon 9 rockets cost roughly $60 million each, and Spaceflight Now has said Amos-6 cost about $200 million.
London’s status as the global centre of foreign exchange is under threat as the proportion of trades going through the city fell in the last three years, according to the Bank of International Settlements. The British capital is still the biggest player in the forex markets, with 37% of global market share, but since 2013, that number has fallen from 41%, as foreign exchange volumes move eastwards toward Asia.
Investors are going wild for Saudi Arabian debt, with the country seeing “massive, massive demand” for its first ever international debt issuance. Saudi Arabia is expected to issue the first international debt in its history within the next couple of months, as it seeks to diversify government revenue streams away from oil while prices for the commodity remain depressed, and it seems as though investors are pretty keen on buying it up, according to a report from the Financial Times.
Britain’s manufacturing sector is on a charge, and has rebounded strongly from its initial post-Brexit downturn. Britain’s factories recorded activity of 53.3 in August, the highest level in 10-months and a huge acceleration from July’s reading, when the sector slipped into contraction, falling at its sharpest level since 2009, according to the latest data released by IHS Markit on Thursday morning.
Read more stories on Business Insider, Malaysian edition of the world’s fastest-growing business and technology news website.
Post a Comment