Beat the street: volatility; oil; Amazon-Anthropic; Ford; China
Wall Street will start the week on a muted note as investors eye renewed volatility due to concerns surrounding China, Evergrande, that Nomura banker, and rising energy prices. Plus, Amazon invests up to $4 billion in Anthropic.
(Video summary)
In this edition of "Beat the Street", prensenter Angeline Ong talks about the most recent news and information leading up to the Wall Street open.
In the last session, Wall Street stocks were struggling because people were worried about interest rates. However, they are now recovering and things are looking up.
Detroit 3 automakers' impact workers
One big topic on the show is the Detroit 3 automakers, which are almost done reaching an agreement with unions. This is an important development because it will affect the working conditions and wages of thousands of workers.
Cisco, a big company, just made its biggest purchase ever by buying Splunk. The reason for this acquisition is to make Cisco more diverse and strengthen its software business.
The stock market is cautious because the Federal Reserve (Fed) is considering raising interest rates again and there are other factors affecting the market. One indicator to watch is the S&P Global Manufacturing and Services PMI, which will show if there are any issues with the strong US economy.
Another factor is the yield on Treasury bonds, which has gone down after reaching record highs. Some stocks, like Apple and NVIDIA, had a tough time due to concerns about interest rate increases and monetary policy changes. But they are bouncing back a bit now. Surprisingly, both the Bank of Japan and the Bank of England kept their interest rates the same, which was unexpected by some market participants.
In terms of currency, the British pound is doing worse than the Japanese yen, while the US dollar is doing well against the yen.
Microsoft-Activision
Meanwhile, Microsoft's Activision deal is likely to be approved in the UK, paving the way for a huge $69 billion acquisition. There are also updates on negotiations between General Motors, Ford, and unions. Strikes might continue if no agreement is reached. Lastly, the strikes at Chevron's Australia LNG facility have come to an end because they accepted proposals from Australia's industrial umpire.
Overall, the video provides updates on a range of important market news, including stocks, acquisitions, interest rates, and negotiations between companies and unions.
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