Good morning! Here’s what you need to know in markets on Friday.
1. US stocksgot hit hard overnight as yesterday’s global bond rout weighed on risk sentiment. It followed an equally rough session for Asian stocks, and ASX futures are pointing lower this morning. Benchmark US 10-year bond yields reached a new seven-year high of 3.23%, before edging back to around 3.19%. As trading volumes in global bond markets surged, the yields on both UK and German 10-year debt also rose sharply.
2. All-important US employment data will take center stage today, as evidence of strong jobs growth and higher wages could see bond yields rise again. The bond market selloff on Wednesday night was partly due to strong ADP payroll figures, which raised expectations for a bumper jobs print later today.
3. Samsung Electronics on Friday said its third-quarter operating profit likely rose to a record high, on demand from data centres and improved production yields. The third quarter is, however, expected to mark a peak in earnings as a two-year super cycle of tight supply and soaring demand comes to an end, with prices of some types of chips already sliding sharply.
4. Wells Fargo is planning its first post-crisis offering of bonds tied to US home loans without government backing, Bloomberg reported on Thursday, citing people familiar with the matter. The $US441 million non-agency bond will include top portions, which will be rated AAA and the sale will be finalised next week, according to the report.
5. Cryptocurrency exchange Coinbase said on Thursday its head of institutional platform group and fifth employee, Adam White, is stepping down from his role. White’s departure comes a day after the company said former chief executive of brokerage Instinet Jonathan Kellner will be the managing director of its institutional coverage group. Apart from this job role, Kellner will take some parts of White’s role, Coinbase spokesman Elliott Suthers said in a statement.
6. Apple is denying just about every fact in a Bloomberg published a blockbuster investigation that found that Chinese spies were able to plant tiny microchips on motherboards in data servers supplied by SuperMicro to a slew of American tech companies, including Apple. The goal of the Chinese spies was reportedly to use these microchips to gain access to sensitive corporate data and other secrets through advanced hacking, the Bloomberg report.
7. Warehouse club operator Costco’s quarterly sales narrowly beat estimates on Thursday, with online sales losing steam in the face of intense competition from Amazon and Walmart . Net income attributable to Costco rose to $US1.04 billion, or $US2.36 per share, in the fourth quarter ended Sept.2, from $US919 million, or $US2.08 per share, a year earlier.
8. Unilever has abandoned its plan to scrap its dual-listed structure and move its headquarters to the Netherlands after opposition from UK shareholders, the Financial Times reported. The company said after a consultation with investors, the plan “has not received support from a significant group of shareholders and therefore consider[s] it appropriate to withdraw”.
9. Tesla CEO Elon Musk seemed to take aim at the Securities and Exchange Commission in a tweet on Thursday, calling it the “Shortseller Enrichment Commission.” “Just want to that the Shortseller Enrichment Commission is doing incredible work,”he said. “And the name change is so on point!” The tweet comes only days after Musk reached a settlement with regulators requiring Tesla to exercise more oversight of the CEO’s Twitter account.
10. The US and the European Union must quickly flesh out their aim of cutting trade barriers, German Economy Minister Peter Altmaier said ahead of an EU trade meeting on Friday. US President Donald Trump and European Commission President Jean-Claude Juncker agreed in July to hold back on threatened 25-per cent car tariffs while the United States and Europe talked about cutting other trade barriers.
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