Good morning! Here’s what you need to know in markets on Friday.
1. JPMorgan CEO Jamie Dimon told Business Insider in an interview that bad policies held the US economy to 20% growth over the last nine years, whereas past recoveries suggest it should have been double that.Dimon cited an uncompetitive tax system, inability to build infrastructure, and the crippling bureaucracy and paperwork needed for things such as starting a business.
2. U.S. job growth likely accelerated in August, with the unemployment rate expected to have fallen back to an 18-year low of 3.8%, which would bolster views that the economy was so far weathering the Trump administration’s escalating trade war with China.Nonfarm payrolls probably rose by 191,000 jobs last month after gaining 157,000 in July, according to a Reuters survey of economists.
3. Asian shares slipped to a 14-month trough on Friday as investors feared a new round of Sino-U.S. tariffs could come at any moment, while a slump in U.S. chip stocks rippled through the tech sector. The Nikkei fell 0.8%, undermined by a rising yen and reports U.S. President Donald Trump could be contemplating taking on Japan over trade.
4. The European Union approved Apple’s planned acquisition of British music discovery app Shazam on Thursday, saying an EU antitrust investigation showed it would not harm competition in the bloc.The deal, announced in December last year, would help the iPhone maker better compete with Spotify, the industry leader in music streaming services. Shazam identifies songs when a smartphone is pointed at an audio source.
5. International Airlines Group said on Thursday that its subsidiary British Airways was investigating a customer data breach on the British Airways website and mobile application.The breach, now resolved, compromised personal and financial details of customers making bookings on the website and the app between August 21 and September 5 this year, IAG said.
6. A British Royal Navy warship that sailed close to islands in the South China Sea claimed by China risked hampering any talks about a free trade agreement after Britain leaves the European Union, a major Chinese state-run newspaper said on Friday.China and Britain agreed last month to look at the possibility of reaching a “top notch” post-Brexit free trade deal which, if struck, would be an important political win for Britain’s Conservative government.
7. Britain’s top markets regulator, backed by the United States, urged the European Union to soften its stance and grant broad access to UK banks after Brexit to avoid hitting investors and harming markets.Britain and the EU are negotiating the outline of future trading terms and Brussels has said the best option for banks, insurers and asset managers is probably the bloc’s current system of market access known as equivalence.
8. Shortseller Andrew Left of Citron Research filed a securities fraud lawsuit against Tesla and its Chief Executive Officer Elon Musk, alleging he had manipulated the stock price by issuing false and misleading information.Musk stunned the markets on August 7 with tweets about taking the Palo Alto, California-based company private and that funding had been “secured.”
9. Chip maker Broadcom reported a 13.4% rise in quarterly revenue on Thursday, driven by strong demand for chips and switching components used in telecommunications equipment and data centres.Net income attributable to common stock rose to $US1.2 billion, or $US2.71 per share, in the third quarter ended August 5 from $US481 million, or $US1.14 per share, a year earlier.
10. Marijuana stocks have have been on fire following the legalization of cannabis in Canada – and the US’s top stock-market regulator has a stern warning for potential investors.“If you are thinking about investing in a marijuana-related company, you should beware of the risks of investment fraud and market manipulation,” the Securities and Exchange Commission said in a press release Thursday.
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