Weekly Highlights

Weekly Highlights 3 Nov: US Federal Reserve slashes rate again – 3rd time’s a charm?

#1 More ‘fun’ times ahead? 

US Federal Reserve slashes the lending rate from the current range of 1.75% – 2% to, 1.50% – 1.75%. It is the third time this year that the Federal Reserve slashes the rate.

Coupled with the strong October jobs data, the US markets break new highs.

https://www.cnbc.com/2019/10/30/when-the-fed-cuts-rate-three-times-and-pauses-history-shows-it-works-out-great-for-stocks.html

https://www.cnbc.com/2019/11/01/dow-futures-open-nonfarm-payrolls.html

 

#2 Trump getting impeached? 

This is getting real.

With a tally of 232 to 196, US lawmakers voted in favour of progressing to the next stage of the impeachment process.

https://www.channelnewsasia.com/news/world/us-house-formalises-trump-impeachment-process-in-landmark-vote-12051722

https://www.reuters.com/article/us-usa-trump-impeachment-televised-analy/democrats-decision-to-televise-trump-impeachment-hearings-could-prove-politically-perilous-idUSKBN1XB50K

 

#3 China and the US finally in-sync?

Apparently, China and the US have conducted ‘serious and constructive’ discussion on trade issues.

Phase one of the agreement, which is yet to be finalized, represents 60% of a long-term deal between the two countries and it includes a pause in tariff escalation and China buying US agriculture products.

This is potentially good news for the stock markets if the deal pulls through. Coupled with the recent rate cut from the US Federal Reserve, 2020 is looking pretty good for the stock markets. If the market priced in the possibility of the US reaching a long-term deal with China, we could see the US markets continue to break new records in the coming weeks.

https://www.cnbc.com/2019/11/01/china-says-its-reached-a-consensus-in-principle-with-the-us-during-this-weeks-trade-talks.html

 

#4 The biggest IPO to kick-off?

According to some source, the crown prince gave the green light for Saudi Aramco to announce its intention to float, i.e. to go public.

https://www.reuters.com/article/us-saudi-aramco-ipo-prince/saudi-crown-prince-approves-kick-off-of-aramco-ipo-on-sunday-sources-idUSKBN1XB51I

 

 

Have a good week ahead.

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