World Bank cuts global growth forecasts; stocks hit the rocks
A scan of the world markets shows the major indexes all in the red Wednesday as the World Bank exacerbated the pessimism from oil prices with a downgrade of its global outlook for this year and next. The organization’s forecast was pessimistic on Japan, the Eurozone, China and some emerging countries. Oil and metal prices are continuing their weakness and the World Bank’s forecast takes into account the benefits of lower costs for some other sectors. Asian markets have all closed with losses and Europe is also trading in the red so far despite the European Court giving ‘in principle’ backing to full quantative easing. US stock futures are lower; oil is down; gold is also lower as currency and bonds are the favored safe havens currently.
Retail sales at 8.30am ET
Import and Export Prices at 8.30am ET
Business Inventories at 10.00am ET
EIA Petroleum Report at 10.30am ET
Fed Beige Book at 2.00pm ET
JP Morgan Chase and Wells Fargo are among those reporting earnings today.
Alibaba plans expansion with deal in India
Alibaba has been keen to stress that it’s not just a Chinese e-commerce company with plans to expand into other markets. Reports suggest that the firm is in talks with India’s One97 communications which would see an investment from Alibaba of $575 million in One97’s e-payment service and allow users from both territories able to use the services of both firms.
Tesla may not turn a profit this decade
Despite big plans to expand its business in China Tesla has found the market a tough one to crack. Speaking in Detroit yesterday Elon Musk, the CEO of the electric car producer, said that there was a communication issue in the marketplace which meant Chinese consumers thought they wouldn’t be able to install chargers at home. This is not the case and Tesla is also building another 400 charging points in the country to add to the existing 200. Musk said that by 2025 he expects Tesla to be making “a few million cars” every year but profit may not come until 2020.
Uber announces new deal with Boston
Uber hasn’t exactly made friends in every city; it is the subject of debate, scrutiny and legal action in many around the world; but it’s found a way to help the City of Boston with its transportation planning. The rideshare firm is to share anonymous data with the City about durations, lengths and general locations of rides to allow planners to better understand issues surrounding transportation. It’s the first partnership of its kind for Uber and comes after the firm refused to share similar data with the taxi regulator in New York.
Americans don’t shop around for home loans
A home may be the largest purchase most of us ever make but it seems American consumers are not prepared to spend much time sourcing their mortgage. A report from the Consumer Financial Protection Bureau says that most will rely on information given to them by lenders or agents rather than independent advice. The reason in a lot of cases is that they find the whole process of arranging a home loan intimidating.
More market talk: