U.S. STOCKS RISE AFTER JOBS REPORT
- Nonfarm payrolls increased by a seasonally adjusted 151,000 last month.
- The unemployment rate was 4.9%, the same as in July.
- Investors largely expect the next U.S. interest-rate rise to take place in December.
- Oil halted four days of declines as Vladimir Putin said he’d like Russia and OPEC to reach an output freeze.
US FINANCIAL MARKET
- In one of the biggest global recalls of smartphones, Samsung said it would replace Galaxy Note 7 devices because of reports of battery fires.
- Samsung said it had shipped 2.5 million units of the Galaxy Note 7 since its launch on Aug. 19.
- The phone has a suggested retail price of more than $800 in the U.S.
- Satellite was part of effort to provide internet access to people in sub-Saharan Africa.
- KFC, Pizza Hut owner to sell $460 million stake to Chinese deal maker Fred Hu and Alibaba financial affiliate.
- Chinese e-commerce giant Alibaba, together with its financial affiliate, has carved out territory in China’s competitive online food-delivery and booking-services market.
- Alibaba and Ant Financial together made a $1.25 billion bet on food-delivery app Ele.me in April.
- The heavy-machinery maker has started a process that may result in the closure of its Gosselies plant and the loss of 2,000 jobs.
- Caterpillar previously said it would cut an unspecified number of additional jobs later this year on top of the more than 10,000 it had already planned to eliminate through 2018.
- Caterpillar’s workforce has fallen by 20%, or more than 30,000 jobs, since the end of 2012.
- The deal that could be valued at as much as $10 billion, the latest in a series of moves to narrow its focus.
- The unit being offered for sale makes software to manage business operations.
- The company plans to keep software businesses associated with pieces of customers’ key technology infrastructure—such as software-defined networking.
US ECONOMY & POLITICS
- Health-care, hospitality sectors added jobs, while manufacturing lost positions.
- Nonfarm payrolls rose by a seasonally adjusted 151,000 last month.
- U.S. employers have added jobs at a 182,000 monthly pace so far this year.
- The unemployment rate, calculated from a separate survey of American households, was 4.9% in August, unchanged from July.
- Average hourly earnings for private-sector workers rose by 3 cents, or 0.1%, in August from July to $25.73.
- From a year earlier, average hourly earnings were up 2.4%.
- The labor-force participation rate held steady at 62.8% in August.
- The figure has been hovering near the lowest levels in almost 40 years, partly because the Baby-Boom generation is retiring, but also because some younger workers have given up on finding a job.
- The U.S. trade deficit fell more than expected in July as exports rose to their highest level in 10 months.
- Trade gap narrowed 11.6% from a month earlier as exports rose to a seasonally adjusted $39.47 billion.
- The June deficit was revised to $44.66 billion from $44.51 billion.
- Exports of goods and services rose 1.9 percent in July to $186.3 billion, the highest since September 2015.
- Exports to the European Union dropped 9.5 percent, with goods shipped to the United Kingdom falling 9.2 percent.
- Exports to China increased 3.8 percent.
- Imports of goods and services slipped 0.8 percent to $225.8 billion in July.
- Imports from China rose 2.4 percent.
- Following declines of 1.2% and 1.8% in May and June, orders in August had their best gain since October.
- Orders for core capital goods (nondefense ex-aircraft) were especially strong in July, up 1.5 percent.
- Aircraft, which is always volatile in this report, is July’s biggest plus, surging 90 percent in the month.
- But vehicles are a negative in the report, down 0.5 percent.
- Other negatives include factory shipments which slipped 0.2% and include a 0.5% decline in shipments of core capital goods.
- Factory inventories are stable and lean, edging 0.1 percent higher in the month to keep the inventory-to-shipments ratio unchanged at 1.35.
- The United States is poised to sell $7 billion worth of Boeing fighter jets to Qatar and Kuwait after years of delays, and it may start notifying U.S. lawmakers as early as next week.
EUROPE & WORLD
- China’s commerce ministry will launch an anti-monopoly probe into Comcast’s planned purchase of DreamWorks Animation after receiving unspecified complaints that the U.S. media deal could hurt competition in the Chinese market.
- Comcast, owner of NBCUniversal, said in April it would pay $3.8 billion to buy DreamWorks, the producer of the “Kung Fu Panda” and “Shrek” franchises.
- China’s film market, the world’s second largest, is a magnet for film producers looking to tap the country’s 1.4 billion people, even though there are signs that stellar box office growth may be starting to slow.
- Louis Vuitton has launched its first perfume range since the founding merger of its parent LVMH in 1987.
- Louis Vuitton’s collection of seven perfumes, with names including “turbulences” and “matiere noire” or “dark matter,” are on sale for around 200 euros ($224) for a 100 ml bottle.
- Until now, shoppers on more modest incomes have only been catered for by Louis Vuitton’s key chains and very small leather goods, costing around 200-300 euros apiece.
- On Friday, Economy Minister Alexei Ulyukayev said his ministry had received documents needed to kick start the sale of 19.5 percent in Rosneft, including a valuation and proposals on terms of sale.
- Japan will propose a broad cooperation in the energy sector with Russia that could include a nearly $10 billion investment in Russian state-owned oil giant Rosneft.
- Japan has asked the European Aviation Safety Agency to ensure a problem with Rolls-Royce engines powering Boeing 787 Dreamliners does not repeat to cause flight disruptions or affect safety.
- Since February, three ANA flights have experienced engine trouble, once on a flight from Kuala Lumpur to Tokyo, a second time in March on a jet traveling to Vietnam and most recently on a domestic route in August.
- Of around 450 Dreamliners in operation worldwide, two fifths use the Rolls-Royce engines.
TODAY in HISTORY
The great fire of London broke out, destroying much of the city, including St. Paul’s Cathedral (1666)
The U.S. Treasury Department was established (1789)
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