Investing.com – The deflation spectrum in China has its ugly head, and the decline in production shows no signs of ending in Japan and Europe. In addition, there are problems in the IPO world as the WeWork agreement comes under pressure. Here are the top 5 things you need to know in the financial markets on Tuesday, September 10.
- Gloomy data, China noise
The risk of China exporting deflation to the rest of the world is increasing. Figures published overnight fell at their fastest pace in three years in August, highlighting the problems that an industrial sector faces largely dependent on access to the US market.
Japan also said it fell by 37% a year, the lowest since 2009, in another reflection on how prevailing trade and Brexit uncertainty is hampering business investment. and July data, released earlier, also fell below forecasts.
- Shares to open lower
Wall Street is set to lower after the largely bleak data from Asia and Europe reminded markets that the global downturn is still very much a thing.
By 6:00 PM ET (1000 GMT), down 39 points or 0.1%, while down 0.2%. was also down 0.2%, against the backdrop of growing US government control by Google (NASDAQ 🙂 and Facebook (NASDAQ :).
However, garden assets have not fared any better. Both bonds and gold are selling slightly, after explosive rallies in recent weeks. This was at 2.11%, while losing ground for a fourth day to $ 1,502.65 per ounce.
Citigroup (NYSE 🙂 and other finances will be in focus later after the company on Monday said it expected a decline in trading revenue in the third quarter.
- WeWork IPO under hot; Aramco's Progress
One of the biggest IPOs of the year may be about to be pulled. The We Company, which is the parent of the losing business WeWork, which has suffered losses, and is under pressure from Softbank, the largest external backer, to postpone an initial public offering to take place this month.
Reports have indicated that marketing for IPO should really start this week, but has been tapped by concerns and management.
However, another highly hyped offer looks a big step closer after Saudi Aramco CEO Amin Nasser told a conference that banks should lead the offer will be chosen "soon." The bad news for US investors is that Aramco, the world's most profitable company, will first be listed in Riyadh, followed by a foreign listing – most likely in Tokyo – at an unspecified later date.
Read more: Will oil markets finally be on the side of the new Saudi minister?
- Boris hindered, again
The British consolidated recent gains following the UK House of Commons hindered Prime Minister Boris Johnson's plans to hold a major election before the country's planned departure from the EU on 31 October.
The defeat – Johnson's sixth in parliament in just over a week – further reduces the chance of a disorderly Brexit in the fall, though popular dissatisfaction with the arcane maneuver in parliament still means Johnson could be the winner from an election when it finally becomes held.
The analysts at JPMorgan (NYSE 🙂 told clients on a note that: "The only choice we consider final viable is for the prime minister to present a deal to the Commons and secure approval for it, resign and let someone else make the request on extension as prime minister, or return from his stated position. At this point, our view is that resignation is the most likely of these three. "
The opposition-led bill requiring Johnson to ask the EU for an extension of the Brexit deadline if he cannot secure a transitional agreement entered into on Monday. Data released earlier showed that the UK held up surprisingly well, suggesting that the UK would avoid entering recession in the third quarter.
- PG&E proposes reorganization plan
California-based utility Pacific Gas & Electric (NYSE 🙂 presented a plan to settle billions of dollars in conditional claims and close bankruptcy next year and escape the creditors.
The preliminary proposal proposes to collect billions in debt and equity to cover burns and get out of bankruptcy law by June 2020, to the Wall Street Journal. But PG & E's commitments from many years of fires are still uncertain, and the company has not decided exactly how it will raise the money, WSJ, citing papers submitted to the relevant court.