September 18, 2017
WHAT’S HAPPENING AROUND HERE
Fresh from the Garden at the Huntsville Botanical Garden – Enjoy live music, cocktails, strolling through the Garden and a family-style meal prepared by Chef James Boyce with the freshest seasonal finds on Friday, September 22nd at 5:30 p.m. Admission charged.
Come experience the arts in North Alabama’s beautiful River City! River Clay Fine Arts Festival is a juried fine arts festival in historic downtown Decatur, AL. The event is scheduled for September 23-24, 2017. Click here for more information.
INVESTORS SLAM ON THE BREAKS WITH RENTAL-CAR COMPANIES
Despite a short-term boost from hurricane-related damage, shares of car-rental companies slid last week, and the Bank of England hints at a rate hike.
THIS WEEK’S ECONOMIC DATA
- U.S. Jobless Claims are expected to increase in the coming weeks due to the impact of Hurricanes Harvey and Irma.
- U.S. CPI rose to 0.4% in August, which was better than the consensus expectations.
ECONOMY AND EQUITY MARKETS
Shares of rental-car companies Hertz Global Holdings and Avis Budget Group stalled on Sept. 14 after an analyst adjusted his outlook of the car-rental business despite a short-term boost driven by hurricane damage in Texas and Florida. Hertz saw its shares fall nearly 10% after Morgan Stanley analyst Adam Jonas downgraded his recommendation. Adding to the rally in recent weeks has been investors’ expectations that the storm damage would drive up car rental companies’ volume and pricing for both rental and used cars.
Signaling that inflation is overtaking Brexit-related slowdown as an economic risk, the Bank of England’s Monetary Policy Committee said it’s headed toward raising interest rates for the first time in more than a decade. The pound surged as investors anticipated rates may increase as soon as November, far earlier than the previous consensus.
INSIDE THE LOOP
Global Rebalancing-On Sept. 14, the leaders of India and Japan agreed to deepen defense ties and push for more cooperation with Australia and the United States, as they seek to counter growing Chinese influence across Asia. Relations have deepened between Asia’s second and third largest economies as Japanese Prime Minister Shinzo Abe and his Indian counterpart, Narendra Modi, increasingly see eye-to-eye to balance China as the dominant Asian power.
Innovation and Transformation-The use of artificial intelligence is making inroads in humankind’s oldest industry: agriculture. Companies like BASF are expanding early-stage investments in AI, joining other industries in betting that research and decision-making can be streamlined with computer programs that teach themselves by picking patterns out of data. Plants chosen with the help of computers are growing in North America this year, and algorithms are sifting weather data to anticipate crop threats such as pests and disease. BASF, the German chemical conglomerate, is working on automated image-recognition capabilities similar to those that confirm faces on Facebook and Apple’s Photos app.
Great American Companies-A group including Apple and Dell Technology is making a serious bid to acquire the Toshiba’s highly desired memory-chip business, a crucial supplier to some of the world’s biggest makers of electronic gear. The group signed a nonbinding agreement with Toshiba and intends to reach a deal by the end of September. The bid values the business at about $19 billion.
Tuesday: U.S. Housing Starts
Wednesday: U.S. Existing Home Sales, U.S. FOMC Meeting Announcement
Thursday: U.S. Jobless Claims
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QUOTE OF THE WEEK
“When I was a boy the Dead Sea was only sick.” George Burns
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*Economy and Equity Markets…(Source: Financial Times)
*Fixed Income…(Source: Bloomberg)
*Global Rebalancing…(Source: Reuters)
*Innovation and Transformation…(Source: Wall Street Journal)
*Great American Companies…(Source: Wall Street Journal)