▲ +584.60 / +2.05%
▼ -15.31 / -0.43%
▲ +256.16 / +0.22%
▼ -4.99 / -0.16%
▼ -252.38 / -0.48%
▼ -74.73 / -0.21%
▼ -59.39 / -0.37%
▲ +277.41 / +0.48%
▼ -25.55 / -0.36%
JSE Top 40
▼ -250.77 / -0.42%
Despite the disappointing jobs report released last week, investors still flocked to tech stocks causing the Nasdaq to keep rallying to record levels.
Last Week’s Highlights
US jobs report misses expectations by a lot
Investors and the Fed alike focused on the expectations set on this month’s US Labor Department’s job report. Experts had estimated the addition of more than 700,000 jobs for the U.S Economy. However, the report showed that only 243,000 people were hired this month compared to more than a million in July. After the news, U.S indices remained mixed, with the Dow Jones losing up to 100 points intraday and the Nasdaq keeping a modest gain with investors flocking to technology stocks. As this report was the last one before this month’s Fed policy meeting, it will prove crucial in the decision making, as the reserve will use it to analyze the situation of the economy to assess bond purchase tapering and other accommodating conditions.
GM cuts output in North America
Covid related restrictions and shortages of semiconductors have caused General Motors to shut down many of its plants in North America for two weeks. According to reports, this will include plants that manufacture profitable vehicles for GM like SUVs and Crossovers from most of its brands. The auto industry canceled orders earlier in the pandemic because of fears of a prolonged loss of sales; however, as demand recovers, chipmakers cannot cope with the demand, and part shortages are becoming prevalent. Other brands like Toyota and Ford have announced global production cuts for this month.
Coming Up This Week
Germany’s elections remain uncertain
Europe’s most important economy is going to elect a new parliament on September 26th this year. This election will mark the end of a 15-year era as Angela Merkel steps down from her post as chancellor. However, the outcome is entirely unknown, and Germany is expected to experience several months of negotiations to form a new government after the elections. The left-wing SPD is expected to win the election with 24%, followed by a 21% vote for the conservative coalition, followed by the Greens with about 16%. This could spell turmoil when forming a government as many alliances could be formed after the election, thus making Europe wary of its leading economy’s next in policymaking.
Apple allowing own payment platforms
After Japan’s regulatory bodies and South Korea’s legislature passed new reforms to forbid companies like Apple to mandate the use of their payment platforms, the maker of the iPhone announced on Wednesday that it would modify its rules to allow Netflix and Spotify, among other developers, to redirect users to their pages for payment, thus avoiding paying Apple’s fees. Other developers included in this change are magazine subscription apps and other services. This change will be effective in early 2022.
More Things to Sip On…
China will create a stock exchange for Beijing.
Walmart is giving more than 500,000 workers a raise.
Apple delays child protection feature after privacy backlash.
Two former Kraft employees were charged by the SEC on an accounting scheme.
How to pay off debt (while prioritizing saving)
Bull and Bear Markets: How to tame these beasts
Understanding time value of money
“Successful investing is about managing risk, not avoiding it.”
– Benjamin Graham –
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