On Friday, the US stocks rallied to end the quarter in the high. The rally was slightly fizzled by the decision by the senate to recommend an FBI investigation into Trump’s supreme court nominee, Brett Kavenough. This happened ahead of the November mid-term elections. If the republicans fail to pass a supreme court nominee, it will lower the morale of republican voters and it will also be a victory to democrats.
On Saturday, it was reported that Canada was close to a deal with the United States on NAFTA. This is a major news for North America, which has found itself in trouble about NAFTA. It is also a major news because many people expected that Canada and the US will not find a deal. This is mostly because of Canada’s supply management policy. This policy imposes high taxes on milk imports with the aim of protecting Canadian farmers who are mostly from Quebec. Since Quebec has the most members of parliament, many expected that Trudeau will not make a deal with the US. A breakthrough will be a good thing for North American trade. This is because Canada and Mexico are the second and third largest trading partners with the US.
On Friday evening, a major breakthrough for Elon Musk happened. He reached a settlement with the SEC on the tweet that he sent a month ago. In the tweet, Elon said that he had secured the funds to take the company private. The part that was mostly dangerous is that he said that the funding was secured. This led to a sharp increase on the stock price. Over the weekend, he reached a deal with the SEC which allowed him to serve as the CEO but removed him from the chairmanship. Therefore, there is an expectation that Tesla’s stock price will rise this week.
It was a sad weekend in Indonesia as a major earthquake and tsunami. While the number of the dead was not available, experts believe that more than 1000 people died. This happened at a difficult time for the country. In the last quarter, Indonesia was one of the emerging market countries that developed major problems. Its currency declined by more than 10% this quarter as investors worried about its fiscal policies.
On Friday, Facebook announced that more than 50 million accounts were hacked. This was the first and biggest hack in the biggest social media company. In the next few weeks, there is a likelihood that the company will increase the number of accounts which were hacked. This presents a new headache to the company that has recently lost some of the senior-most executives. Last week, the founders of Instagram announced that they were stepping aside from the company.
On Sunday, China released the manufacturing PMI numbers. These numbers showed that the activity of purchasing managers in the country declined in September. The manufacturing PMI was at 50.8, which was lower than the 51.2 that analysts were expecting. This was the lowest level since January this year. Caixin manufacturing PMI was at 50, which was lower than the expected 50.5. A further decline from this will mean trouble for the sector.