Global News July 30, 2018

  1. BBC
  2. Global News July 30, 2018

“Tech Slide Deepens as Bonds Drop, Oil Breaches $70: Markets Wrap.”

The biggest technology shares fell for a third day as investors showed signs of exhaustion with the sector amid a slew of corporate earnings. Government bonds declined ahead of key policy meetings from some of the world’s biggest central banks.
The Nasdaq Composite Index slipped to a three-week low as sentiment soured on what had been some of this year’s best performing stocks, with Netflix Inc. and Twitter Inc. trading lower. Caterpillar Inc. couldn’t hold onto gains after earnings beat forecasts. Food and beverage makers weighed on the Stoxx Europe 600 Index following Heineken NV’s disappointing results. Financial companies were the best performers on the S&P 500 Index.
The euro climbed, and the dollar weakened. Copper dropped as the LMEX Index of six industrial metals headed for its worst month in two years. U.S. oil futures climbed past $70 a barrel for the first time in more than a week as a weaker dollar boosted the appeal of commodities and concerns over global supply disruptions persisted.
The tech selloff comes as equity strategists tell clients to allocate more defensively, with Morgan Stanley’s Michael Wilson saying the sector is showing signs of “exhaustion.” Investors are also prepping for central bank policy decisions, with traders focused on whether the BOJ will fine tune its policy and look for any indications the Federal Reserve is shying away from two more interest-rate hikes before the end of this year. Meanwhile, the Bank of England is widely expected to increase borrowing costs.
Elsewhere, emerging-market stock fluctuated after a four-day winning streak. Turkey’s lira fell as the country’s president showed little regard for potential U.S. sanctions.


“Trump threatens U.S. government shutdown over border wall.”

U.S. President Donald Trump said on Sunday he would allow the federal government to shut down if Democrats do not fund his border wall and back immigration law changes, betting that maintaining a hard line will work in Republicans’ favor in November congressional elections.
However, a disruption in federal government operations could backfire on Trump if voters blame Republicans, who control Congress, for the interruption in services. “I would be willing to ‘shut down’ government if the Democrats do not give us the votes for Border Security, which includes the Wall! Must get rid of Lottery, Catch & Release etc. and finally go to system of Immigration based on MERIT! We need great people coming into our Country!” Trump said on Twitter.
Americans are divided along party lines on immigration, and 81 percent of Republicans approved Trump’s handling of the issue, according to a Reuters/Ipsos poll released this month.
The Republican president has threatened a shutdown several times since taking office in 2017 in a bid to get immigration priorities in congressional spending bills, especially funding for a wall along the southern U.S. border. Trump has asked for $25 billion to build the wall.
Although Republicans control both the U.S. Senate and House of Representatives, disagreements between moderates and conservatives in the party have impeded a speedy legislative fix.
Standoffs over spending levels and immigration led to a three-day government shutdown, mostly over a weekend, in January and an hours-long shutdown in February. The House in June rejected an immigration bill favored by conservative Republicans.


BBC News
“Spanish taxis block roads in ‘anti-Uber’ protest.”

Taxi drivers across Spain have joined a strike against ride-hailing companies like Uber, demanding the government restrict their numbers. The striking taxi drivers, some of whom have been camping out for days, say the services threaten their livelihood and are putting thousands of jobs at risk.
As a result, they have blocked main roads in the capital, Madrid, and in Barcelona with their parked cars.The government is due to meet with ride-hailing companies later on Monday. Taxi unions want it to enforce the law which requires just one ride-hailing licence for every 30 taxi licences. Union representatives said in a statement that «Uber and Cabify are putting the viability of the taxi sector and 130,000 jobs at risk», adding it «considers this unfair competition intolerable».
The strike began in Barcelona last Wednesday, after the Spanish government appealed against a ruling by the Barcelona authorities that limited the number of licences for taxi services booked by smartphone apps. Madrid, Valencia, Bilbao and Seville are all following in Barcelona’s footsteps and are calling their own stoppages, causing widespread disruption.


“U.S. Pending Home Sales Increase for First Time in Three Months.”

Contract signings to purchase previously-owned U.S. homes rose for the first time in three months, indicating the housing market is stabilizing on the heels of a modest pickup in listings, lower taxes and a robust labor market, data from the National Association of Realtors in Washington showed Monday.
The month-over-month gain in contract signings was broad-based with all four major U.S. regions showing gains. Meantime, Portland, Oregon, Seattle and San Jose, California, were among several cities showing big increases in new listings, according to the NAR. While the pickup in inventory is welcome and could help bring down prices, the group says more supply is needed to meet demand.
Low unemployment and tax cuts are padding pocketbooks, and are seen as likely to aid home demand. More sizable gains, however, may prove difficult as homebuyers face headwinds from fewer affordable housing options as mortgage rates remain elevated. What’s more, wage gains are barely keeping up with rising inflation.
The figures follow recent reports showing the weakest pace of housing starts in nine months, fewer construction permits and the slowest rate of new-home sales since October.