Live news update: Creditor Evergrande sells Hong Kong site for $636 million

The biennial event of nationally significant American elections is upon us and US midterm. All 435 House seats and 35 of the 100 Senate seats are on the ballot on Tuesday. Joe Biden is be concerned that last week he hit the campaign trail, ramping up the rhetoric.

The Democrats are likely to lose control of the DPR and the upper chamber is on a knife edge. That (or rather the divided government will make it). bad news for investors, according to Unhedged’s Rob Armstrong. FT columnist Janan Ganesh blame the voters.

Want to know more? This Thursday, FT reporters Edward Luce, Rana Foroohar and James Politi will be joined by veteran commentator Norm Ornstein for a subscriber-exclusive show assessing the US midterm results. Sign up for free today and you can submit questions in advance for our panel.

You can also subscribe to the Swamp Notes newsletter, which does a great job of exploring the intersection of money and power in American politics, and now free to read.

Across the Atlantic, COP27 meeting in Sharm el-Sheikh, Egypt, provides a focus for climate change news in the coming days (and weeks). More than 100 world leaders will attend, including Rishi Sunak after he found time in his diary, but no King Charles.

Again, you can do more insight from the FT. Starting Monday, FT Live will host a series of in-person, virtual and hybrid discussions with leading thinkers on sustainability and senior FT journalists. Each will complement the theme set in the day’s presidential program. Register your interest here.

Economic data

Line chart of implied funds rate in May 2023 (%) shows Fed rate hike expectations jump after hot US inflation data

Inflation was the main theme of economic news this week with consumer price index and producer price index updates from the US, China, Germany and Japan. Whatever the US figure, Fed chair Jay Powell made crystal clear in his comments last week that his team will do what it takes to squeeze inflation out of the economy. The consensus is for a 0.7 percent increase in the monthly US figure to make the annual figure 8.1 percent.

The gloomy project of the Bank of England last Thursday that the United Kingdom enters its the longest recession since the second world war Setting the tone for this week’s UK economic news item: the first estimate of third-quarter GDP on Friday. This is expected to show a contraction of around 0.2 percent quarter on quarter.

Company

and high street sales are down in England and talking about a prolonged recession, British retail is not in a good place. But this week, can give some respite – and we’re not just talking about return free coffee at Waitrose.

Marks and Spencer will on Wednesday present its first results under new management after the retirement of former chief executive and company lifer Steve Rowe during the summer. His replacement, Stuart Machin, has set out his stall in terms accelerated overhaul of store estate and redoubling efforts to cut costs so the focus is likely to trade now. Rival Next last week stuck with its full-year guidance after sales were held until early fall. Investors in M&S – which has not had a dividend since November 2019 – are expecting Machin too.

WHSmith’s profits are set to bounce back as the world travel industry recovers from the Covid-19 hit. Travel revenue, much of which comes from airport stores, has been running ahead of pre-pandemic levels in the last update in early September. Meanwhile, there are some hints about the slowdown in the quarterly results of the duty-free airport group Dufry last week.

A key constraint is the capacity limit at major airports, especially London Heathrow. No doubt there will be further discussion of this on Monday when Ryanair reports first half figures. Low-cost airlines like Ryanair have to adapt to the end, uh, low cost air travell, the answer is to try to do it from the more expensive operator.

End of season tech earnings news is likely to continue the gloomy mood. Lyft, reporting on Monday, last week announced significant job cuts, the second round of redundancies in recent months. Lyft isn’t alone among tech firms that need to tighten their belts, but it’s not looking good for the ride-hailing service, a smaller rival to Uber, which is also selling its ride-hailing business.

Elsewhere, we have a drugmaker update clutch. BioNTech, which reported on Monday, is among several Covid-19 vaccine makers that have raised the price of their jabs amid concerns about falling demand in 2023. Airfinity, a health data analytics group, predicts sales of Covid vaccines will drop by about a fifth to $47bn next year. There are also concerns about AstraZeneca, which revealed its third-quarter figures on Thursday, after the nasal version of its Covid vaccine. failed in the experiment. good news expected from the German drug and chemical group Bayer, whose figures are out on Tuesday.

Read the full week ahead calendar Here you go.

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