WALL STREET DRAGGED LOWER BY ENERGY, FINANCIALS
- Even Apple’s 2.3 percent gain, after two U.S. carriers reported strong demand for the new iPhones, was not enough to pull up the indexes.
- U.S. crude oil dropped 2.7% to $45.05 a barrel after the IEA slashed its forecast for global oil demand this year amid “wobbling” Asian demand.
- Speculation that the Fed could raise rates as soon as next week sparked a sharp selloff in stocks and government bonds on Friday.
US FINANCIAL MARKET
- The IEA downgraded its global oil demand predictions by about 100,000 barrels a day for this year.
- It also reduced the forecasts by about 200,000 barrels a day in 2017, with consumption increasing more slowly at 1.2 million barrels a day.
- “The stimulus from cheaper fuel is fading,” the IEA report said.
- The agency said advanced economies were storing record amounts of oil, with inventories rising to a record of over 3.1 billion barrels.
- T-Mobile and Sprint have received almost four times as many orders for Apple’s iPhone 7 than previous iPhone models.
- T-Mobile said it saw subscribers switching from Verizon, AT&T and Sprint.
- T-Mobile reported orders over four days and Sprint over three days.
- After last week’s firestorm over alleged cross-selling, CFO John Shrewsberry says the bank is spending additional $50 million a year to monitor sales tactics.
- The Chevrolet Bolt scheduled to go on sale late this year will travel 238 miles on a single electric charge.
- This will give GM a key marketing claim over Tesla Motors similarly priced model 3 which is projected to have a 215-mile range.
- Both GM and Tesla face the challenge of selling electric cars amid a prolonged period of low gas prices.
- Boeing estimated 6,810 aircraft purchases in the period to 2035, up 7.6 percent from its previous prediction of demand until 2034.
- “The continuing expansion of China’s middle class, coupled with new visa policies and a wide range of widebody airplanes… gives us every reason to expect a very bright future for China’s long-haul market,” Randy Tinseth, Boeing Commercial Airplanes’ vice president of marketing.
US ECONOMY & POLITICS
- The median annual household income—the level at which half are above and half are below—rose 5.2% from a year earlier, or $2,800, after adjusting for inflation, to $56,500, the Census Bureau said Tuesday.
- The boost leaves household incomes around 1.6% below the 2007 level, before the last recession began. But the 5.2% annual gain is the largest such increase since the Census Bureau began releasing such data in 1967.
- The official poverty rate in 2015 was 13.5%, down 1.2 percentage points from 14.8% in 2014, the report added.
- The bill is not anticipated to receive President Barack Obama’s signature if it ever reaches his desk.
- The bill, introduced this summer by the committee chairman, Republican Jeb Hensarling, would allow banks to choose between complying with Dodd-Frank or meeting much tougher capital requirements.
- Corresponding legislation to Hensarling’s bill has not been introduced in the Senate.
- Hensarling’s bill would also throw out the Volcker Rule that restricts banks from making speculative investments.
- It will also eliminate the authority of the Financial Stability Oversight Council consisting of regulatory agencies’ heads to designate firms as “systemically important,” also known as “too big to fail.”
EUROPE & WORLD
- Industrial output rose 6.3 % in August from a year earlier, as demand for products from coal to cars rebounded.
- Investment by state firms surged 21.4 % in the first eight months of the year and China’s fiscal spending rose 12.7 %.
- Property investment rose 6.2 % in August on-year, according to Reuters calculations, compared with 1.4 % in July, while sales by floor space grew 25.5 %.
- Private investment grew just 2.1 % in the first eight months of the year, the same pace as in January-July and remaining at record lows.
- The annual rate of consumer price inflation was unchanged at 0.6 percent in August.
- Lower prices for clothing, hotels and wine offset an upward effect from fuel prices, food and airfares.
- Data keeps the chance of another BoE rate cut on track despite a big rise in raw material costs after June’s vote to leave the EU.
TODAY in HISTORY
Chiang Kai-Shek became president of China (1943)
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