Weekly News Summary For July 26 to August 1, 2019

Friday,  July 26: Apple Confirms $1B Modem Chip Unit Deal with Intel

Apple confirmed on Friday its purchase of the majority of Intel’s modem chip unit in a deal worth $1 billion.

The arrangement with Intel is expected to push Apple closer to its goal of developing its own modem chip, as the smartphone maker has always depended on outside suppliers for the component, which link devices like iPhone to wireless data networks.

Monday, July 29: Pound Sterling Hits 2-year low on Brexit Concerns

The pound sterling dropped as low as $1.2322 on Monday to register its lowest level since March 2017, after a senior figure in the new government, Michael Gove, signaled a possible no-deal Brexit on October 31.

Expectations of settling a last-minute agreement weakened further, as British Foreign Secretary Dominic Raab said it was the European Union (EU) that had to change, what he described as stubborn position, to prevent the UK from departing the EU without a transitional deal.

Tuesday, July 30: BoJ, Brexit Impacts Currency Markets ahead of Fed

A stream of factors shook currency markets on Tuesday, with the US dollar index climbing to a two-week high ahead of the Federal Reserve’s two-day policy meeting.

The yen reached intraday highs against the dollar after the BOJ maintained its overnight rate at -0.1%, while the British pound remained in the red, posting fresh 28-month lows against the greenback, as UK Prime Minister Boris Johson doubled-down on his disagreement to the Irish backstop.

Wednesday, July 31: Euro Zone Growth Halves, Inflation Slows in July

Signs of a worldwide economic slowdown increased further on Wednesday, as the euro zone grew at a sluggish rate in the second quarter, declining to 0.2% from 0.4% in the previous three months.

Despite jobless data recording an 11-year low, Eurostat’s flash reading showed year-on-year inflation in July slowed to 1.1% from 1.3% in June, raising market hopes of a softer monetary policy decision from the European Central Bank in September.

Thursday, August 1: BMW Reports Weaker Second-quarter Earnings

BMW saw earnings dropped by 20% in the second quarter, due to currency headwinds and as the costs of building electric and hybrid automobiles grew further.

The German carmaker stated that its earnings before interest and taxes declined to $2.4 billion in the quarter, as a more stringent carbon emission legislation set to be applied in 2021 pushes auto companies to invest to manufacture lower-emission cars.