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The Federal Reserve is prepared to deliver another interest rate cut

The US central bank looks to follow the European Central Bank and lowers interest rates next week by a quarter of a percentage point. Fed chairman Jerome Powell has made clear that he does not believe a US recession is likely, but he has acknowledged that the economic headwinds are intensifying.

"There are all these risks, and we are monitoring them very closely and we are implementing policies in a way that will deal with them," he said earlier this month.

"The domestically focused, consumer-oriented parts of the economy are catching on, but with inflation that looks unthreatening, the Federal Reserve has room to offer support to the economy," wrote analysts at ING, a Dutch bank. [1

9659004] Trump factor: US President Donald Trump has used his Twitter feed to keep the central bank press. "The Federal Reserve should get our interest rates down to zero, or less, and we should then start refinancing our debt," he tweeted last week.

  China waives tariffs on some US goods for the first time since the trade war began

[19659002] Because Trump's own nominee to lead the Fed does not receive the message, used President ECB's decision last week to push interest rates further into negative territory to drive their points home.

"They try, and succeed, to depreciate the euro against the VERY strong dollar, hurt US exports …. And the Fed sits and sits and sits. They get paid to borrow money while we pay interest!" he tweeted.

Over to you, Mr. Powell.

US stock apps on tap?

Fed measures could lead the S&P 500 and Dow to new heights all the time. Last week was fantastic for stocks, with remissions from the US and China that aroused hopes that trade negotiations could bring a breakthrough if they resumed next month as expected.

China agreed last week to release shrimp, cancer drugs, pesticides and more than a dozen other customs products. US President Donald Trump responded by delaying a planned increase in tariffs from October 1 to October 15 in what he called "a gesture of goodwill." Then, on Friday, Beijing cleared the way for more purchases of American soybeans and pork.

Dow adds 1.6% last week for its third consecutive week. The S&P 500 rose almost 1% and Nasdaq rose 0.5% last week, matching Dow's winning line.

Apple's next big test

The iPhone 11 and its more expensive Pro brothers will go on sale in a large handful of countries Friday.

Apple ( AAPL ) could use a sales profit: iPhone sales have fallen in three of the last four quarters and with China's economy in a sustained decline, there is a slight chance for a turnaround in the near future.

That's why Apple is banking on its $ 5 month Apple TV + and Arcade subscription services to increase revenue.

But investors will still be careful to report how well Apple's sales of the iPhone 11 developed during the opening weekend. The lower than expected $ 699 price could add value to these sales.

Saudi oil capacity

Oil traders are on guard after concerted strikes knocked out 5.7 million barrels per day of Saudi Arabia's crude oil and gas production, about half of the country's total production.

Two Saudi Aramco sites including the world's largest oil treatment plant were defeated. State-owned Aramco "hopes to have that capacity restored within a few days," a source told CNN Business. The power outage will affect 5% of daily global oil production.

US Secretary of State Mike Pompeo pegged the strikes directly against Iran. Tehran has rejected the claim.

"Oil prices will jump by this attack," said Jason Bordoff, founding director, Center for Global Energy Policy at Columbia University. "The risk that the regional escalation will be tough to raise oil prices even higher has increased significantly."

The International Energy Agency said it was in contact with Saudi authorities. "At the moment, the markets are well stocked with plenty of commercial stock," it said.

Up next

Monday: China retail sales, industrial production

Tuesday: US industrial production for August; FedEx ( FDX ) Revenue
Wednesday: Fed rate decision; General Mills ( GIS ) and Lloyd & # 39; s of London Revenue

Thursday: BOE and BOJ interest rate decisions; US Existing Home Sales

Friday: Apple's iPhone 11 Sold in Selected Countries

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