Money Matters: Top Finance News Stories This Month

Everyone needs to know what is happening in the world of finance. Whether you're managing hedge funds, investing in stock markets, or simply looking after your savings, the top finance news stories will affect you. Most obviously, financial news can affect investments, causing the prices of stocks and shares to fall or rise. More significantly,

China's Economic Growth

China is the second-largest economy in the world and it is expected to overtake the US by 2030. However, this prediction has recently been questioned. The most recent figures suggest that China’s GDP expansion has been slowing with the last quarter being the slowest. Demand has dropped significantly and the third plenum policy is being reviewed.

The reduced growth means share prices are reducing in China, prompting investors to pull funds out of the country. Already, over $10 billion has been removed from China's blue chips. Continued poor economic performance is likely to increase volatility in the finance markets.

Of course, reduced economic output by China also means less trade in both directions, which will have an effect on markets across the planet.

Burberry Profit Warning

Burberry has just released a statement giving all shareholders a profit warning. It's expected annual profits will be significantly lower than expectations. It's expected to operate at a loss for the first half of the year. The news prompted a 15% drop in the value of their shares. The concern for the company was enhanced by the replacement of its current CEO, Joshua Schulman is replacing Jonathan Akeroyd. For investors, this is particularly concerning. If this 168-year-old luxury giant is struggling then many other businesses could be. It is likely to create uncertainty in the finance markets.

Pepsi Demonstrates Inflationary Effect

PepsiCo has recently released their second quarter figures and the profits have risen considerably. However, this is due to years of retail price hikes which don't reflect the cost of manufacturing Pepsi. The truth is, customers are buying less. Pepsi has increased its prices every quarter for the last two years. Clearly, customers are fed up with this approach and are buying less of Pepsi's products. In fact, many appear to be switching to store brands. If this trend develops more well-known brands will find their figures reducing and that potentially means a significant hit on share prices.

Bankruptcy Filings Increase

According to figures just released, there were 75 filings for bankruptcy by US companies in June 2024. There were 62 in May. June's total is higher than the number of filings during the peak of the pandemic. The biggest challenges to businesses are high interest rates, supply chain problems, and a reduction in customer spending. The question is how many more companies will file in July?

Asian Stock Market Volatility

Thanks to the concerns regarding China's economy the Asian stock market has become very volatile. Investors pulling out and changing tactics has led to gains and losses across the board. The result is gains for various factions, such as the US dollar and the Australian stock market. The volatility makes choosing the right investment much harder.

Trump Attempted Assassination

The attempted assassination of Donald Trump has led to a series of wagers which anticipate what would happen to the stock markets if Trump returned to power. In essence, his return would create a looser fiscal policy. A combination of the attempted assassination and Biden's poor debate performance means that a Trump presidency is more likely. On the back of this assumption, the dollar made gains across the globe and futures on the S&P 500 Index rose by 0.1%. Naturally, the possibility of a Trump win would increase the likelihood of political violence and this could have a negative effect on the finance markets.

Businesses Deserting London

According to the latest figures, the number of IPOs based in the UK has dropped dramatically. It is now at its lowest point in decades and is due to the overbearing and restrictive regulatory regime. Companies have simply relocated and, unless the regulations change, this will continue to happen. The end result could topple London as one of the most important powerhouses in the world.

NATO & Venture Capital

In a surprising boost to the markets, it has been revealed that NATO is looking at venture capitalists to help finance the drive into space and other modern technological advancements. The tying up of these two industries will help NATO remain the predominant power economically, militarily, and environmentally. It will also secure the drive into space and its associated benefits.

Should the union move ahead it's likely there will be a series of new businesses, backed by venture capitalists and NATO, which could seriously bolster the financial markets.

Summing Up

Financial news is constantly changing as there are so many events that can influence the markets. It's essential to keep as up-to-date as possible with all current events and assess how they can affect the finance markets. In general, everything is interconnected, so every news story can impact the markets.