Stock Market Jumps On Possible Brexit Deal
Stocks on Wall Street and Europe jumped 1% after Britain unveiled a plan to prevent a disorganized Brexit. In addition, strong corporate growth in the US helped the stock market rebound. However, slow China numbers caused oil prices to fall. Media reports quoted EU officials saying negotiators were close to a Brexit deal. This, in turn, triggered a late afternoon rally for the stock market.
In addition, sterling rose to its highest level against both the dollar and the euro. “If we can resolve the China trade issue and have a reasonably good resolution to the Brexit issue with the UK, it adds a sense of optimism to the market. Combine that with the earnings today being good and happy days are here again,” said Rick Meckler, a partner at Cherry Lane Investments.
IMF Warns Global Growth Slowest Since Financial Crisis
The International Money Fund said that global growth is the slowest its been since the financial crisis. They said that world growth would hit only 3%, a decrease from its estimate in July of 3.2%. The IMF blamed the slowdown on trade fights, Brexit uncertainty, and other geopolitical crises.
“With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot,” the fund said. “The global outlook remains precarious. At 3% growth, there is no room for policy mistakes.”
GM To Close Deal To End Strike
After nearly a month, GM and the UAW agreed on a deal to end the strike that cost the company nearly $2Bn. Currently, a final agreement has not been announced, but GM and the UAW agreed to terms on most issues. However, they were finalizing the wording on some matters. Both GM and the UAW declined a request to comment.
Thomas Cook Ex-Boss Interrogated
Thomas Cook’s ex-boss Peter Fankhauser told a committee of MPs that he worked “tirelessly” for the company. In this, he denied that he was the only one to blame for the firm’s downfall, even though he received a £500,000($638,400) holiday bonus. “What I can say to that is that I worked tirelessly for the success of the company and I am deeply sorry that I was not able to secure the deal. But it was not one-sided that I failed. There was multiple parties who had to contribute to the deal which finally then did not succeed,” Fankhauser said.
Banks Make $1Bn From Bond Trading Boom
Global banks made nearly $1 billion from trading government-backed U.S. mortgage securities in the first half of 2019. This is five times more than what they made last year, causing industry professionals to say it is the fastest-growing revenue source in investment banking.