Dow plummets more than 600 points after Trump orders US manufacturers to leave China; European stocks close lower as US-China trade tensions escalate
Stocks plunged on Friday after President Donald Trump ordered that U.S. manufacturers find alternatives to their operations in China. Apple led the way lower. The Dow Jones Industrial Average closed 623.34 points lower, or 2.4% at 25,628.90. The S&P 500 slid 2.6% to close at 2,847.11. The Nasdaq Composite dropped 3% to end the day at 7,751.77. The losses brought the Dow’s decline for August to more than 4%.
Apple shares dropped 4.6%. The VanEck Vectors Semiconductor ETF (SMH) slid 4.1% as Nvidia and Broadcom both fell around 5%. Caterpillar shares, meanwhile, pulled back 3.3%.
The pan-European Stoxx 600 closed provisionally about 0.7% lower, with most sectors in negative territory. Autos stocks suffered sharp losses by the close, slumping around 2%.
Financial Times reported that the EU is considering plans for a 100 billion euro ($110.71 billion) sovereign wealth fund to finance European industrial champions in order to compete with U.S. corporate giants, such as Apple and Google.
JESV: Jedinstvo reports much higher consolidated sale and lower net profit
Jedinstvo Sevojno (JESV), reported RSD 3.3bn in 6M 2019 sales, up 27% y/y, on higher volume of executed jobs, while operating profit is more than doubled as profit margin was improved. However, net profit was down 34% y/y as other & financial results were worsen vs. a year ago.
Source: Belex, Ilirika
Serbia becomes 73rd non-regional member of Asian Infrastructure Investment Bank
Serbia has officially become the 73rd non-regional member of the Asian Infrastructure Investment Bank (AIIB). The Minister of Finance Sinisa Mali said that the membership was great news for Serbia who now had the access to affordable loans for the implementation of priority projects, the Ministry of Finance confirmed in a press release.
Wage, pension increases must wait for IMF mission – economists
Potential wage and pension increases for 2020 call for very precise calculations, in particular concerning the sustainability of the trend of economic growth, says Zoran Grubisic, a professor at the Belgrade Banking Academy. "We need to see what the expectations in terms of growth rates in the future - not only this year - are," Grubisic told Tanjug Friday. The IMF will approve the increases if room is created for them, he said, adding that the IMF always insisted on a target budget deficit of around 2 pct of GDP.