Here are the key news highlights that investors should be aware of as they begin their trading day:
1. Focus on Federal Reserve
Investors are eyeing this week’s Federal Reserve meeting as stock index futures rise. Dow Jones Industrial Average futures rose 0.03%, while S&P 500 and Nasdaq 100 futures rose 0.09% and 0.16%, respectively. Most market participants expect the Fed to leave interest rates unchanged.
There’s a 99% chance the Fed will keep interest rates steady when it announces its decision on Wednesday, according to CME Group’s FedWatch tool, which measures market prices in federal funds futures. Moreover, the probability of an interest rate increase in November is only 31%. But investors want to know more about the central bank’s financial future. Please stay tuned for updates in the store.
2. UAW Strike
As United Auto Workers members continue to strike over the weekend, Jeep maker Stellantis has announced a 21% increase in nearly full wages for the duration of the contract for unionized workers, including an emergency 10% raise. bid announced increase.
The proposal follows similar proposals from Detroit’s other two major automakers, Ford and General Motors. Strantis’ recommendations also include eliminating payday credits for some workers and improving retirement and retirement plans for current employees and retirees.
UAW’s demands include increasing hourly wages by 40 percent, reducing the weekly working hours to 32 hours, revising the old wage plan and removing the credit score. Ford and GM renegotiated with the UAW over the weekend, while Stellantis plans to renegotiate on Monday.
3. Streaming War
Is the era of traditional TV coming to an end? Over the years, consumers’ migration to streaming services has disrupted media’s business model and left most major media struggling to cope with these changes.
Even Disney is reportedly exploring the possibility of selling ABC and its affiliates, cable networks and a minority stake in ESPN. This move suggests that Disney may be ready to move away from traditional media as it enters a new phase. Also linked to publishing competition is the constant opposition from writers and actors in Hollywood.
The main problem right now is that streaming is still not profitable for most studios. Media companies have also been reluctant to disclose audience figures, leaving investors and creators in the dark.
4. Hotel Benefits
New York City is taking steps to ban short-term rentals, a move that could benefit the hotel industry. As of last month, the city’s long-awaited regulations were put into practice. The rules state that property owners must be physically present to stay 30 days or less, and no more than two tenants can live in the same building at a time.
Additionally, homeowners will have to register their names with the municipality or face heavy fines. As a result, job platform Skift reported a 77% decline in Airbnb shortlistings in New York from June 4 to September 10.
This change of scenery in rent has caused many people to travel in search of other places to live. “Last week we saw our highest booking rate for the next six months, higher than any comparable period since 2015,” said Kevin Davis, CEO of JLL Hotels & Hospitality Americas. ” Monday, “Squawk Box Asia.”
5. Ukraine is Making Progress
Ukraine, sustained offensive begins and recently recaptured two villages near Bakhmut in eastern Ukraine’s Donetsk region. Ukrainian forces also make some progress in the area. It has also made territorial gains.
The British Ministry of Defense said in a new intelligence report published on Sunday that the Russian army could strengthen its defensive positions around the city of Tokmak towards southern Ukraine, retaking nearly two square kilometers of land on the southern front this week. Ukraine is approaching.
Parliament House on Thursday and a meeting was held with senators. Zelensky is also expected to meet with President Joe Biden this week and attend the United Nations General Assembly in New York. Its aim is to gain international support for Ukraine during the conflict.
Summary
Investors are closely watching the Federal Reserve meeting this week, with expectations of interest rates remaining unchanged. The UAW strike continues, impacting major automakers. The streaming war disrupts traditional TV, and NYC’s short-term rental ban benefits the hotel industry. Meanwhile, Ukraine shows progress in its offensive, seeking international support. Stay tuned for updates in the market.
