This week ahead || Sep 25th - Sep 29th 2023

Labor strikes, inflation and Nike earnings: What to know this week

In the upcoming week, investors will focus on labor strikes, the Fed's preferred inflation gauge (PCE index), earnings reports from companies like Nike and Costco, and the possibility of a government shutdown. The UAW strike continues, impacting automakers like Stellantis, GM, and Ford. Nike's earnings report may provide insights into the consumer slowdown in China, wholesale markets, and retail crime concerns. Meanwhile, a government shutdown, if it occurs, is expected to have a limited economic impact. After the recent hawkish Federal Reserve stance, interest rate projections and inflation data will remain in focus, with markets currently not pricing in an immediate rate hike.

Dow Jones Futures: What To Do With Market In Correction; Is Tesla The Next Leader To Crack?

Stocks struggled amid a market correction triggered by the Fed's hawkish stance, with the Dow, S&P 500, and Nasdaq all declining. Tesla faced heavy losses, endangering its recent gains. Some stocks, like Meta Platforms, FedEx, and General Electric, held up relatively well, but in the current market climate, caution prevails over new investments. The 10-year Treasury yield surged to 4.44%, prompting concerns about inflation. Various ETFs, including those focused on growth, also saw losses. Tesla stock faced a significant drop, with analysts revising third-quarter delivery estimates downward. Meanwhile, stocks like Meta Platforms and Synopsys experienced mixed performances, emphasizing the challenging investment environment.

Read about it here.

Supermarket franchisee Spinneys Dubai plans IPO in 2024

Spinneys Dubai LLC, the franchisee of the supermarket chain in the United Arab Emirates and Oman, is reportedly planning an initial public offering (IPO) for the business in the second quarter of 2024. Albwardy Investment, the franchise's 100% owner, has hired Rothschild & Co to advise on the planned IPO. They have invited banks to pitch for roles in the offering, which is expected to involve up to 30% of the company. The potential IPO would add to the growing regional food retail sector and comes as IPO activity in the Gulf is expected to pick up after a slowdown in the first half of the year.

China central bank adviser proposes structural reforms to revive economy

A central bank adviser in China, Liu Shijin, has stated that China has limited room for further monetary policy easing. Instead, the country should focus on structural reforms, such as supporting entrepreneurs, rather than relying on macroeconomic policies to stimulate growth. Liu cited widening interest rate differentials with the U.S. and fiscal stress at various government levels as constraints on monetary policy. He emphasized that concentrating on macro policies for growth stabilization could lead to more side effects and miss opportunities for structural reforms. China's economy has faced challenges such as weak consumption, falling exports, and a property debt crisis despite previous monetary and fiscal measures.