Daily Market Update

Daily Market Update

Daily Market Update US and Europe shares rise; Asia dips
Yesterday saw a return to form on Wall Street, with the markets ending the day up after a bumpy day of trading; Warren Buffett’s Berkeley Hathaway earnings report produced a late boost to the market. Concerns that last week’s selling spree could be the start of a correction faded, or at least investors decided it was worth the risk. US stock futures were flat this morning. In Europe shares were trading up first thing after yesterday’s Wall Street rally, optimistic services and manufacturing data and positive earnings from French bank Credit Agricole and Germany’s BMW among others. Asia though has seen a decline in stocks today after data from China showed that growth in the country’s service sector had fallen to a record low.

Bankers may avoid crackdown on lucrative business
A review has found that banks have not made excessive violations of rules on leveraged loans. The banks had expected to be hit with increased restrictions but findings show the sector is roughly in line with last year and would suggest that regulators will not impose further rules. This area of banking is a lucrative business and tighter restrictions could damage it. The report has not revealed if any individual banks will be penalised for its activities; that information will be published in the autumn. Read the full story.

US would need 5.7 million jobs to return to pre-recession levels
While increases in official payroll figures are always welcomed, a report says that we’ve a long way to go to be back to pre-recession employment levels. The Hamilton Project says that the US would need 5.7 million to return to work for employment to be at the level it was in 2007. While job numbers are increasing, so it population, and the report suggests that at current rates of growth it will take until late summer in 2017 to return to a similar employment to population ratio. Read the full story.

Toyota predicts increasing US sales
Toyota has posted better than expected profit results today, up 4.4 per cent in the April to June period. The Japanese motor giant has also raised its sales predictions for the US, its biggest market; it’s expecting 2.71 million sales in the US in the year to March 2015. In July Toyota saw a 12 per cent increase in sales in the market, boosted by purchases of SUVs and pick-ups.

LinkedIn agrees to pay overtime
Social network LinkedIn has agreed to make good on unpaid overtime to current and former workers; the company will also pay damages. The Department of Labor says that the company had not been keeping track of the hours worked by some of its staff but that they had cooperated fully with the regulator’s investigation. LinkedIn will now pay $3.3 million in overtime and $2.5 million in damages to 359 workers.

Ecclestone offers $100m to avoid court case
The former boss of Formula 1 has agreed a $100 million settlement with prosecutors in Germany. The case surrounds an allegation that Bernie Ecclestone bribed a German banker during the sale of a major stake in F1. German law allows for a settlement to be agreed in this way subject to strict conditions. The final decision rests with a judge.