Weekly News Summary For October 18-24, 2019

Friday, October 18: China’s GDP Growth Slows to 30-year Low

China’s growth momentum slowed further in the third quarter, as the world’s second-largest economy expanded to its slowest since the first quarter of 1992, with the US trade war weighing on its factory sector, strengthening the possibility of Beijing employing further support.

Gross domestic product expanded at an annual rate of 6.0% in the three months ended September, declining from 6.2% registered in the previous quarter and ending below forecasts of a 6.1% growth as well as the government’s full-year target range of 6.0%-6.5%.

Monday, October 21: Boeing Shares Slip after Analysts Cut Ratings

Shares in Boeing dropped by 5% on Monday, dragging the Dow, after analysts from two notable firms downgraded their ratings and price targets due to recent reports concerning the US planemaker’s grounded 737 MAX jetliner.

Credit Suisse analyst Robert Spingarn and UBS analyst Myles Walton both lowered Boeing’s shares to neutral from buy, due to reports that surfaced on Friday about the aerospace group’s test pilot unknowingly misleading safety regulators about a control system of a 737 MAX.

Tuesday, October 22: SoftBank to Take Over WeWork

SoftBank Group Corp. has been given the green light from WeWork’s board to take charge of the struggling startup, in a deal that would see co-founder Adam Neumann stepping down from the company’s board of directors and receiving a payout of about $1.7 billion.

Reports had stated that WeWork’s valuation might fall to as low as $8 billion under the new agreement, dropping from the $47 billion valuation that the firm targeted ahead of its IPO.

Wednesday, October 23: Lira Strengthens, Trump to Withdraw Sanctions

The lira rose further on Wednesday, driven by US President Donald Trump’s plans to withdraw sanctions against Turkey, following the announcement of a ceasefire in Syria.

The news sent Turkish currency up, with the greenback weakening by 1.3% to 5.73 against the lira, while the BIST 100 index advanced by 1.94% and the main banking index added 2.27%.

Thursday, October 24: Oil Prices Fall after Rising on US Supply Drop

Oil prices edged lower on Thursday, after Russian Energy Minister Alexander Novak said, no formal plans have been proposed to change the terms of the output-cut deal sealed between the OPEC and its allies.

US crude oil WTI futures lost 0.8% to $55.50 per barrel, while global benchmark Brent oil futures shed 0.6% to $60.83, paring gains registered the previous day, following EIA’s report of an unexpected weekly slump of 1.7 million barrels in US crude supplies.

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