On the way back
US equity futures continue to rise, now 0.5% ahead, thanks to large market gains and solid economic data. August retail sales data will be released at 8:30 am, while investors watch the latest Fed policy meeting this afternoon. Meanwhile, House Speaker Nancy Pelosi has signaled that the chamber should postpone the October recess until lawmakers can strike a bipartisan deal on a new coronavirus relief bill, although that we do not know how Congress will be able to break the deadlock. Oil is also on the rise as Hurricane Sally disrupted more than 25% of offshore oil and gas production in the United States and the API showed a sharp decline in US crude inventories.
Take action against Facebook
Facebook (NASDAQ: FB) could be in for a tough session after Kim Kardashian West, along with a group of other celebrities, said they would join the Stop Hate For Profit movement and “freeze” their Instagram activity for 24 hours. “I cannot remain silent as these platforms continue to allow the spread of hate, propaganda and disinformation,” she wrote, encouraging her 188 million subscribers to do the same. Reports also suggest that the FTC would challenge Facebook’s dominance in social media by filing possible antitrust lawsuits by the end of the year. FB -1,3% pre-marketing.
Instead of an iPhone 12, Apple (NASDAQ: AAPL) yesterday unveiled its latest watch models (some versions don’t need to be paired with a phone) and a refreshed range of mid-range and low-cost iPads. He also spoke about software at the “Time Flies” event, with iOS 14 now slated for release on September 16. One of the biggest announcements was the long-awaited service offering. Called Apple One, customers will be able to access iCloud, Apple Music, TV +, Arcade, News +, and Fitness + for $ 15 / month for individuals or $ 20 / month for families.
No law has been broken
While several governance issues arose from the Eastman Kodak (NYSE: KODK) Announcing a planned loan of $ 765 million from the U.S. government in July, a special committee hired by the board said none of the issues violated the law. The stock soared before and after the announcement – which propelled the photography giant into drug manufacturing – but quickly turned into a roller coaster as stocks fell precipitously. Kodak seems to be going back to its old ways on the news, with the stock up 41% pre-sale at $ 8.80 / share.
Congressional report denounces Boeing, FAA
The House Transport and Infrastructure Committee released a 238-page dossier, in preparation for about 18 months, that paints a Boeing (NYSE: BA) which gave priority to profits over safety. Numerous design, management and regulatory failures during the 737 MAX’s development phase preceded the “preventable deaths” of 346 people in two crashes of the popular airliner, as well as an FAA that was unable to provide passenger safety. The report comes as regulators are in the final stages of recertifying the 737 MAX, which has been grounded around the world since March 2019. Boeing has also been hit by the coronavirus pandemic which has rocked demand for air travel and recently discovered flaws in some 787 Dreamliners.
WTO says tariffs violated trade rules
The United States violated international regulations when it imposed tariffs on Chinese products in 2018, the World Trade Organization said in a decision that will likely get nowhere. The United States is likely to appeal, which would put the case in a legal vacuum since Washington has already blocked the appointment of judges to the WTO appeals body. Any decision would also be the start of a legal process that could take years to unfold and, if upheld, would ultimately lead the WTO to approve retaliatory measures by China (a step it has already taken to on its own).
Go further: Trump removes 10% tariffs on aluminum imports from Canada.