In this weekly series, we break down seven different things every person needs to know from the world of finance news. We're taking complicated stories and making them simple, easy to understand, and quick to read. Perfect for the man who wants to be in the know, but doesn't have the time to obsess over global markets.
1.) Volkswagen Got Caught Cheating
Volkswagen was got caught cheating on US emission tests - as result its CEO was forced to resign and its stock sold off almost 30% this week. The scandal has also hurt other European carmakers, who mainly make diesel engine cars.
2.) No Interest Rate Rise This Year
Janet Yellen, the Chair of the US Federal Reserve, repeated her expectation that there will be an interest rate rise before the end of the year. The Fed recently chose not to raise rates citing, among other things, concerns about overseas growth – a pessimistic view which seemed to further frighten stock markets.
3.) As China Stumbles, Caterpillar Faces A Rocky Road
Caterpillar said that its sales will be lower than expected next year, due primarily to selling less equipment to big mining and energy companies. It shows how slowing global growth (especially in China) and the stronger US dollar is hurting some American companies.
4.) China = Losing Its Mojo
Chinese manufacturing contracted at the highest rate since 2009 in August. Some analysts had been expecting a better number as the government has been spending more money in an attempt to boost the economy.
5.) Instagram Is Killing It
Instagram is growing faster than expected: it has more than 400 million monthly users which is up by 1/3 in 9-months. It’s good for Facebook’s stock (FB owns Instagram) but is eating into Twitter’s revenues, as the companies vie for many of the same advertisers.
6.) Greek Elections Took Place
Alexis Tspiras was re-elected as Greece’s Prime Minister. The bailout program is expected to be implemented as planned and we can stop talking about Greece, for a while at least.
7.) Nike Does It
Nike made a lot more money than people were expecting and its sales in China were particularly good (up 30% versus last year). The stock jumped almost 9% on Friday.
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