What You Need To Know This Week — October 19th, 2019
What You Need To Know This Week
A weekly recap to keep you informed on the most important events this week impacting markets, business, tech and the global economy.
U.S. AND CHINA REACH PRELIMINARY “PHASE 1” TRADE DEAL
President Trump proudly stated that the U.S. and China reached a “very substantial phase one deal” which would entail China buying $40 — $50 billion in U.S. agricultural goods. In return, the U.S. agreed to cancel the previously announced tariff increases set to go into effect this week. The S&P 500 rose over 1% on the news.
CHARLES SCHWAB TO ALLOW INVESTORS TO TRADE FRACTIONAL SHARES
In a bid to attract a younger clientele, the discount brokerage firm will introduce fractional share trading. The move follows the recent elimination of commissions on stock and ETFs throughout the discount brokerage industry. Schwab did not indicate whether the fractional shares would be commission-free.
ALEXION ANNOUNCES ACQUISITION OF ACHILLION IN $930 MILLION BIOTECH DEAL
Alexion Pharmaceuticals agreed to acquire biotech firm Achillion Pharmaceuticals for $930 million in cash representing a 73% premium. Achillion shareholders will get $6.30 cash per share and are eligible to receive an additional $2.00 per share in the future from a contingent value right. The deal expands Alexion’s presence in the treatment of rare blood disorders.
UK AND EUROPEAN UNION REACH DEAL ON BREXIT
U.K Prime Minister Boris Johnson’s government has struck a draft deal with the European Union for the country’s exit from the bloc. The deal is subject to a high-stakes vote in British Parliament to become effective. The deal came together seemingly in the nick of time, with Brexit set to go ahead potentially without a deal on October 31st.
Recommended Articles, Podcasts, Books and Tweets
Listen to Tobias Carlisle talk with Phil Bak on why the ETF structure is a better way to run a hedge fund on the ETF Experience podcast.
Chinese third quarter economic growth slowed to 6.0% from a year earlier, missing analyst estimates of 6.1% and falling to its lowest level in 27 ½ years.
Softbank is preparing rescue financing for beleaguered office-sharing company WeWork at a valuation below $8 billion, a steep discount to its last financing round at $47 billion.
Saudi Aramco delayed its blockbuster IPO in order to update the market with its latest earnings release.
Boutique ETF issuers in the U.S. caught a break from new regulations that reduce issuers’ regulatory burden.
A profile of W. Brett Wilson and his use of his platform on Twitter to defend Canada, the energy industry and Alberta.
Options traders are now betting on negative interest rates: “not just possible but reasonably probable”.
Clients have pulled $1 Billion from Fisher Investments after Ken Fisher’s “incredibly disturbing” comments at a recent investor conference.
More and more fund managers are utilizing machine learning to unearth patterns in the market to profit from.
Bank of America portfolio strategists declared “The End of 60/40”, blaming the unattractiveness of bonds on the decline in interest rates.
Salesforce almost bought Twitter, until Salesforce CEO Marc Benioff slipped, hurt his leg and had second thoughts on the deal.
U.S. retail sales fell -0.3% in August, its first decline in six months.
Canada’s central bank is exploring a digital currency to replace cash and track how people spend.
Blackstone was in discussions to buy a stake in hedge fund Citadel at a $7 billion valuation.
-The Accelerate Team
