Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, September 9, 2022.
Brendan Mcdermid | Reuters
Here are the key news items investors need to start their trading day:
1. Futures look strong
US stock markets were poised to open higher Monday morning as investors sought momentum from last week’s gains. All three major indices were mired in a three-week losing streak as markets grappled with the reality of yet another major Federal Reserve rate hike. The central bank’s policy-making committee is expected to raise its benchmark by three-quarters of a point next week, even if inflation is showing signs of slowing down. Investors will get the latest inflation news on Tuesday, when the government is scheduled to report August’s consumer price index.
2. Ukraine strikes back
Soldiers of the State Security Service of Ukraine pose for a photo in the recently liberated city of Kupiansk in Ukraine’s Kharkiv region in this photo released on September 10, 2022.
Press service of the State Security Service of Ukraine | Via Reuters
The Ukrainian army has Russia on the run in two parts of the country. After making significant gains in southern Ukraine, the country’s armed forces, supported by weapons from the US and other Western allies, launched a lightning-fast counter-offensive in the northeast. According to a Russian official, “the situation is getting more difficult by the hour” for the Kremlin’s armed forces in what has become a humiliating few weeks for the Russian president Vladimir Putin. Ukraine claims it recaptured more than 1,100 square miles of territory occupied by Russia this month. Follow live updates here.
3. Chapek casts a spell on D23
Bob Chapek, Disney’s Chief Executive Officer, speaks at the Disney Legends Awards 2022 at Disney’s D23 Expo in Anaheim, Calif., September 9, 2022.
Mario Anzuoni | Reuters
Disney CEO Bob Chapek launched a charm offensive at the D23 Expo over the weekend, sending positive messages to fans, employees and investors. It also seemed to work, at least for one major activist investor. Third Point CEO Dan Loeb had pressured the entertainment and media giant to divest its ESPN business, but he backed out at this point with a tweet on Sunday morning. “We have a better understanding of @espn’s potential as a standalone business and another vertical for $DIS to reach a global audience to generate ad and subscriber revenue,” he said. Chapek had told Variety that Disney has “a vision” of where ESPN fits into the company’s plan for the next 100 years. “We have not shared that plan,” he added.
4. JPMorgan buys another fintech company
Jamie Dimon, CEO of JP Morgan, speaks at the Boston College Chief Executives Club lunch in Boston, Massachusetts, USA, November 23, 2021.
Brian Snyder | Reuters
In an effort to combat fast-growing Stripe and Block, JPMorgan Chase has agreed to purchase fintech payments startup Renovite, TBEN’s Hugh Son reports. Chase is already the world’s largest provider of trading services. It processes approximately $9 trillion worth of transactions every day. But executives at the legacy bank, most notably CEO Jamie Dimon, have been sounding the alarm about budding competitors. Since late 2020, as the Covid pandemic raged, JPMorgan has acquired at least five fintech startups in a tech spending wave that has met with some criticism. The Renovite deal allows the bank to expand faster in global markets because it doesn’t require as much encryption, Mike Blandina, JPMorgan’s global head of payments technology, told TBEN.
5. New Chip Restrictions
US President Joe Biden attends the groundbreaking construction of Intel’s new semiconductor manufacturing facility in New Albany, Ohio, on September 9, 2022.
Joshua Roberts | Reuters
The Biden administration will unveil a new set of restrictions on shipments of US semiconductors to China next month. Reuters reported this, citing several people familiar with the case. The limits will focus on chips used for artificial intelligence, as well as tools for making semiconductors. KLA, Lam Research and Applied Materials were informed of the upcoming changes in letters earlier this year and the companies took note of the communication. Reuters also reported that some of its sources for the article said the government could also reveal additional actions against China as President Joe Biden pushes to make the United States more competitive with its rival.
— Carmen Reinicke, Holly Ellyatt, Jeff Cox and Hugh Son of TBEN contributed to this report.
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