What’s happening: According to a recent reading of the IHS Market’s Purchasing Managers’ Index, which monitors the manufacturing and service sectors, business activity in Europe has declined again.
As production progressed, fears of Covid-19 led to a decline in services in France and elsewhere, with fresh bans once again criticizing the hospitality business.
Chris Williams, chief business economist at IHS Markets, said the decline in activity was “much lighter” than what was seen between April and June. But he issued a stern warning on what could come down to the pike for Europe.
The risk of a double-dip recession in the eurozone is high, Williams said.
Big picture: Remember all the gossip about the recession that looked like V or Nike? The double-dipping scenario looks more like a W, interim recovery recovery quickly paves the way for painful pain relief.
A warning: France’s finance minister said on Friday that the country’s economy was likely to be between October and December.
“Probably. We will have a negative growth figure during the last quarter of the year,” Bruno Le Mere told Europe 1 Radio, according to Reuters.
The recent PMI reading for the United Kingdom, which is also facing a growing crisis of infection, showed the weakest growth in activity in four months.
Barclays said on Friday that he believes the blow to the UK economy in 2020 will be worse than expected in late June. He now expects the country’s output to fall 10.3%, down from 7.7%.
The rapidly deteriorating situation is putting new pressure on policymakers to step up relief efforts. On Thursday, UK Finance Minister Shi Sunak announced more liberal support to protect jobs. The UK government will increase its wage subsidy to help businesses keep staff and expand available grants.
Central banks, which have already deposited millions of dollars, may be asked to get back on the plate.
“The prospect of a recession will put more pressure on him [European Central Bank] IHS Not tightening the whole sector in October but looking to take more action in November, said Williamson of Markit.
Around the lake: It’s not just a European problem. U.S. PMI data arrives early this morning, providing an immediate boost to the economy as more than two dozen U.S. Covid-19 cases are on the rise in the states.
Goldm cost withdraws executive salary after a costly settlement
Latest: On Thursday, Goldman Sachs, a Malaysian subsidiary, pleaded guilty to conspiracy to violate US anti-bribery laws through its work with 1 Malaysia Development Berhad or 1 MDB.
The company has agreed to pay about 2. 2.9 billion to various executives. About 3 1.3 billion of that will go to the U.S. Justice Department – the largest ever penalty under the Foreign Corrupt Practice Act, U.S. law that prohibits companies from bribing foreign leaders. Goldman has settled the case with Malaysian authorities this summer.
“Greed is not good,” said William Sweeney, assistant director in charge of the New York FBI office fees. “This kind of greed ultimately costs a lot in society.”
This case 3. The billion is focused on the Department of Agriculture, which is the largest in the United States. The Justice Department says 1MDB was stolen in 2014 and 2015. The money was used to buy condos, hotels, yachts and jets in New York and to fund movies like “The Wolf Wall and Wall Street”. , “According to officials.
Goldman Sachs set up three large bond ingings for 1MDB funds, which raised 6. 6.5 billion and raised about 600 600 million in bank fees, according to court documents. Two bold gold ban bankers have been accused of helping to steal about half of the bonds.
Matters: The bank also said it would reduce or withdraw compensation of 17 174 million from top executives, including CEO David Solomon and former boss Lloyd Bla Bla Caffeine. The company’s board said it sees the matter as an “institutional failure” and has promised Goldman more oversight of executives moving forward.
Metal is growing up with kids stuck at home
Desperate parents try to entertain children stuck at home, as they pay to make toys.
“The toy industry as a whole has grown meaningfully and has shown resilience even in challenging economic times,” CEO Yon Kreiz told analysts. “The industry is once again proving to be a strategic class for retailers as parents continue to prioritize spending on their children.”
Investors’ insights: Metals shares, which are down about 5% year-over-year, are up about 6% in pre-market trading.
The company said it expects sales to increase during the holiday season, although Kreiz noted that “extraordinary growth in demand” could cause supply chain issues.
“This is not affected by covid,” he said. “This is literally about a surge and growth in demand.”
Now the next
Even today: U.S. for services and manufacturing sector posts. The latest reading of the Purchasing Managers Index morning: 45.: 45. At e.t.
Coming up next week: Ant Financial is expected to take its dual listing price in Shanghai and Hong Kong. The record may be the largest of the initial public offerings.
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