Oct 30 2020 0
Check out the most important financial news of today, October 30th.
China promises to be a tech powerhouse, emphasizing quality growth by announcing its first glimpse of its economic plans for the next five years. The details initially released by the Communist Party Central Committee on Thursday pledged to develop a strong domestic market and enhance China's technological autonomy into a pillar of national strategy. At the heart of that effort is autonomy in chips, the foundation for innovations from artificial intelligence to fifth-generation networks and autonomous vehicles.
The release did not state the rate of growth policymakers will be targeting. It comes just as the US-China conflict over the chip is about to worsen. It is not surprising that Chinese investors see the China-US conflict continue to linger after the election.
US stocks fell late in US trading, while Asian stocks looked ready for a mixed start on Friday. The Dollar and Treasury Bonds yield rebounded to 0.80%. An ETF that tracks the Nasdaq 100 Index has plunged during the after-hours trading after a series of reports from Amazon.com, Facebook, Alphabet and Apple. The S&P 500 has rallied a day earlier after its biggest rally in four months. Meanwhile, the euro weakened after the European Central Bank paved the way for a new easing package in December.
Apple stock down
Apple shares fell more than 5% after the company reported iPhone sales that failed Wall Street estimates and revenue from China - one of the company's most important regions - slumped 29%. to 7.9 billion USD, the lowest in many years. However, on Thursday the company said fiscal fourth-quarter revenue reached $64.7 billion, a record for the period, thanks to record sales of Macs and Services. That surpassed analysts' estimates of $63.5 billion. Meanwhile, tech giant Amazon predicts that its sales will skyrocket this quarter, with sales reaching between $112 billion and $121 billion.
Hope for Hong Kong
The Hong Kong economy is showing the first signs of recovery to come after an economic recession caused by political instability last year and deepened by the global pandemic. After more than a year of weakening on many economic indicators, this week's data showed that exports from the Asian financial hub surged the most in nearly two years in September, driven by shipments to China. Green increased 17%. The previous quarterly economic growth data released today are forecast to show quarterly growth of 0.7%. In the United States, the path to economic recovery seems less certain after its third-quarter record gain.
North America's largest oil company, Exxon Mobil, will cut its global workforce by 15% by the end of 2022 - an unprecedented cut as it struggles to preserve dividends. The cuts will include 1,900 jobs in the United States, mainly in Houston, as well as previously announced layoffs in Europe and Australia. Stocks rose after the news of CEO Darren Woods' latest attempt to cut spending and stem the worst quarterly chain of losses since Exxon took over Mobil in 1999.