Daily Market Update

Daily Market Update

Daily Market Update
World shares starting the week lower

Shares in Asia have been hit by political unrest in Hong Kong as pro-democracy protestors took to the streets yesterday angry at China’s ‘undemocratic’ election policy for Hong Kong. Hong Kong’s shares hit a near four month low while mainland China fared better. Europe’s markets are expected to see gains following Wall Street’s rebound on Friday after revised Q2 GDP figures but are so far trending lower. The news that the US economy grew by its fastest pace in 2 ½ years is seen as a clear sign that it’s the brightest star in the world’s economic skies. The dollar continues its run of highs. It’s not all good news though as economists are predicted lower than forecast growth for Q3 but with the economy growing steadily for some time. US futures are mixed with gold edging higher but oil lower. Shares are expected to suffer some losses today.
 
Today’s data

Data on personal income and spending and the price index from the U.S. Bureau of Economic Analysis is due at 8.30am ET.
Pending home sales index data from the National Realtors Association at 10am ET.
 
Economists predict jobs boost

After two less-than-expected new jobs figures, economists are predicting a rebound in hiring for September with a 200,000-plus net gain in jobs. There is also hope that with unemployment falling and hiring increasing, that there will soon be rising wages, one of the main concerns among experts that could hold the economy back. Read the full story.
 
SoftBank in talks with DreamWorks

SoftBank is eyeing a possible takeover of DreamWorks Animation or some other potential tie-up. The Japanese conglomerate, which dropped a bid for T-Mobile two months ago could use any deal to boost its Sprint business against AT&T and Verizon. SoftBank was one of the largest beneficiaries of the Alibaba IPO with a 32 per cent stake in the Chinese e-commerce firm. Analysts say SoftBank’s strategy seems to be acquisition of content providers to add value to its mobile communications offer. Read the full story.
 
Apple fall foul of EU tax crackdown

It’s been a mixed month for Apple; the buzz surrounding the new product launches was clouded by issues with the updated operating system and claims that the phone bends. Now the EU is launching an investigation which could cost Apple several billion dollars, the biggest ever EU fine, if it’s found that it has prospering from illegal tax deals with the Irish government. Apple has operated in the country since 1980 and maintains that it has not acted illegally and has no special deal. Starbucks is another big name who will fall under the investigation. Read the full story.
 
Lenovo aims to become world’s largest server manufacturer

Lenovo is expected to complete its $2.1 billion acquisition of IBM’s low-end server business this week and is setting its sights on becoming the world’s number one manufacturer of servers. Lenovo is already the largest producer of PCs in the world, having taken over IBM’s personal computer business nearly a decade ago but now plans to challenge Dell and HP for the server market. Read the full story.