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Trump doubles down on TikTok, and the stimulus talks nearly collapsed-August 9,2020by Trading ADR team on 08/09/20
August 9, 2020
Trump doubles down on TikTok, and the stimulus talks nearly collapsed.
Payroll jobs report is expected to show 1.48 million new
positions during July, a significant slowdown in the pace of job creation in June, and well below what is needed to offset the loss of 22 million in March and April.
The unemployment rate is forecast to have fallen to 10.5%, with data released. There have been mixed signals in this report, with Wednesday's number of ADPs well below estimates, while Fridays’ number of claims suggested that the job market is beginning to reassert itself.
Tick Tock President Donald Trump signed a pair of executive orders, which will take effect in 45 days, prohibiting US residents from doing business with the Chinese-owned TikTok and WeChat apps.
The move coincides with a push by the White House to sell TikTok to a US company. The video-sharing app said in a statement that it will seek all available remedies, including the US courts.
Shares of WeChat's parent company, Tencent Holdings Ltd., fell as much as 10% before cutting those losses after an official said the ban would only apply to doing business with WeChat, and not the entire tech conglomerate. Blame game No progress has been made on agreeing a new stimulus plan for the US economy, and the talks are now on the brink of collapse.
Treasury Secretary Steven Mnuchin said the White House and Democratic leaders remain
"Very, very separated on important matters." The Speaker of the House of Representatives, Nancy Pelosi, called a proposal from the Trump administration "anorexic." It is unclear if the two parties will meet again today.
President Trump said that he will sign executive orders extending enhanced unemployment benefits and imposing a payroll tax exemption if no agreement is reached on a broader package.
- Markets slippage Trump's move against Chinese tech companies threatens to derail this week's rally in global equities, putting the S&P 500 Index within 1.1% of its all-time closing high.
· The MSCI Asia-Pacific Index fell 0.7%, while the Japan Topix Index fell 0.2%. In Europe, the Stoxx 600 Index had fallen 0.2% as of 5:50 a.m., with oil and gas companies being the biggest load on the indicator.
- S&P 500 futures pointed to a lower open ahead of payroll data, the 10-year Treasury yield was 0.523%, and gold fell.