Week of Oct 9 2015 Weekly Recap & The Week Ahead
“I made my money by selling too soon & never lost money by turning a profit” — Bernard Baruch
1. Trans-Pacific Partnership Agreed — after five years of talks, a dozen nations across the Pacific Basin clinched an agreement that would reduce tariffs in countries making up 40% of the global economy. Tough issues surrounding the Trans-Pacific Partnership, including auto trade, dairy exports and monopoly periods for next-generation drugs were agreed.
2. Facebook To Beam Internet From Space to Africa — Facebook (FB) plans to launch a satellite in partnership with France’s Eutelsat Communications (OTCPK:EUTLY) to bring connectivity to large parts of sub-Saharan Africa. The satellite, part of Facebook’s Internet.org platform, is under construction and will be launched in 2016.
3. German Exports Slowed The Most Since 2009 Recession — German exports slumped the most since the height of the 2009 recession in another sign Europe’s largest economy is losing momentum in Q3. Foreign sales slid 5.2% to €97.7B M/M and imports tumbled 3.1% to €78.2B, narrowing the trade surplus to €19.6B. The data follows sharp declines in industrial orders and output in August, suggesting waning demand from abroad may be leaving its mark on Germany.
4. VW America CEO Knew of Emissions Problem in 2014 — shock revelations over Volkswagen (OTCQX:VLKAY) emission scandal have already wiped more than 40% off Volkswagen’s market cap, but the direct and indirect costs are still being assessed as the company risks severe fines and possible damages from customers’ lawsuits. In testimony of his hearing with the House energy committee, U.S. head of Volkswagen (OTCQX:VLKAY) Michael Horn offered a “sincere apology” over the “deeply troubling” pollution scandal and admitted he was made aware of “a possible emissions non-compliance” as early as spring 2014. According to an estimate by Warburg Research, the automaker will ultimately face costs and lost revenue from its damaged image of more than €35B ($39B).
5. Fed Minutes Shows Fear of Weak China, Prices — from the Sept 16-17 meeting, Fed policy makers chose not to raise rates last month due to worries about China and other overseas economies possible impact on US exports and overall economy. The minutes also show how concerned members were about inflation remaining persistently low.
The week ahead — Economic data from Econoday.com:
