Morning Brief: IMF cuts global growth forecast
Tuesday, October 9, 2018
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What to watch today
Bond markets will re-open on Tuesday, giving markets a catalyst after last week’s trading in the equities market was largely driven by rates with Treasury yields across the curve hitting multi-year highs.
The U.S.-China trade war continue to hit carmakers. Britain’s biggest carmaker Jaguar Land Rover said it will close a plant for two weeks later this month after it reported a nearly 50% fall in sales to China.
On Tuesday, the day’s biggest data highlight is likely to be the NFIB’s latest reading on small business optimism. The headline index fell to 107.9 in September from 108.8 in the prior month. Despite the decline, it’s the third highest reading in the survey’s history.
Top news
IMF cuts forecast for global growth: The International Monetary Fund said the world economy is plateauing as the lender cut its growth forecast for the first time in more than two years, blaming escalating trade tensions and stresses in emerging markets. [Bloomberg]
Papa John’s jumps more than 16% on Trian takeover report: Trian Fund Management is considering a takeover bid for Papa John’s (PZZA), the Wall Street Journal reported. The activist hedge fund also has a 13% stake in Wendy’s. Papa John’s has been exploring a sale after the company took a hit due to founder John Schnatter’s controversial comments on a conference call. [CNBC]
In boon for farmers, Trump lifting ethanol restrictions: The Trump administration is moving to allow year-round sales of gasoline with higher blends of ethanol, a boon for Iowa and other farm states that have pushed for greater sales of the corn-based fuel. President Donald Trump is expected to announce he is lifting a federal ban on summer sales of high-ethanol blends during a trip to Iowa on Tuesday. [AP]
Microsoft is investing in ride-hailing firm Grab: Microsoft (MSFT) said it will invest an undisclosed sum into Singapore-based ride-hailing company Grab, as part of a strategic partnership.The two companies will also collaborate on technology projects in areas such as big data and artificial intelligence, while Grab will now use a number of Microsoft products, including the Azure cloud computing service. [CNBC]
Google goes global with events for new phones:Alphabet Inc.’s Google (GOOG, GOOGL) will unveil the third edition of its Pixel smartphone at 10 media events across the world on Tuesday, a hint that it is prepared to expand geographic distribution of a device it hopes someday is as popular as Apple Inc.’s (AAPL) iPhone. [Reuters]
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The Morning Brief provides a quick rundown on what to watch in the markets, top news stories, and the best of Yahoo Finance Originals.
