Your Morning Briefing for June 29th

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4 min

Five most important news to start your day. These events are very likely to influence the market and trigger exchange rate fluctuations. Read to stay informed.
Stock Buybacks for Big US Banks Approved
banks34 largest banks in the United States approached the Federal Reserve with a request to buy back their shares and use the extra capital for dividends. All of them received a positive response from the authorities. The Federal Reserve must be sure the next financial downturn is not coming soon to let the banks utilize funds that could otherwise be used as a protective measure against financial instability. Fed officials said earlier that the banks have passed the second stress test and demonstrated adequate level of safety.
AI Will Contribute to the Global GDP
PwC is sure: artificial intelligence will contribute up to 14% of the global GDP by 2030. The robots will not only take jobs away from millions of people, they are expected to add $15.7 trillion to the world economy. Increasing productivity and consumption side-effects are the major drivers behind AI-fueled growth. Anand Rao, an AI researcher at PwC, believes the alienation between people and machines in the workplace will soon be replaced by cooperation.
Sycamore Acquires Staples Inc
Staples Inc, a US-based office supply company, will soon be acquired by Sycamore Partners for $6.9 billion. The deal was announced on Wednesday and is considered to be risky by certain investors due to the changing landscape of the retail market. Several brick-and-mortar retail chains have filed for bankruptcy over the course of two years, including Sports Authority, Rue21, and Gymboree. Being a niche retailer with good financial performance, Staples Inc has a potential to thrive in the not-so-bright period of retail decline.
US Travel Ban to Start Thursday
banCitizens of six Muslim countries — Iran, Libya, Somalia, Sudan, Syria, and Yemen — will soon lose their right to travel to the United States. Existing visas will be respected but the issuance of new ones will be stopped. Several exceptions are though provided. Business or family-related visit will be allowed in certain cases but will require additional proofs. Students and journalists will also get an exceptional treatment.
IMF: China Needs a Balance Between Deleveraging and Support
“There is increasing room for cautious optimistic views for the global economic outlook at this moment, but there are risks,” said Zhang Tao, deputy managing director at the IMF. According to him, it is time for China to find the right balance between deleveraging and support for a limited number of industries. Growing debt, that has helped to sustain the national economic growth for several decades, is becoming a serious problem for the Chinese government. It needs to be addressed not only to continue the uptrend but also to avoid a financial crisis in the long-term.
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