5 things to know before the stock market opens on Wednesday, September 28

Traders on the floor of the New York Stock Exchange, September 27, 2022.

Source: NYSE

Here are the most important news investors need to start their trading day:

1. Looking for a background

2. The Bank of England gets involved

Analysts expect the Bank of England to raise interest rates more aggressively after the market turbulence on Monday morning.

Soup Images | Light Rocket | fake images

The Bank of England is intervening in the market chaos unleashed by the new UK government’s economic plan for deep tax cuts. The central bank said on Wednesday that it would postpone its plans to start selling bonds, also known as gilts in the UK, and start a temporary program of buying longer-term debt. “If the dysfunction in this market were to continue or worsen, there would be a material risk to the financial stability of the UK,” the Bank of England said. “This would lead to an unjustified tightening of financing conditions and a reduction in the flow of credit to the real economy.” The pound, which had fallen sharply against the dollar, was briefly in the news. Gilt yields are on track for their biggest monthly rise in 65 years. The new Prime Minister Liz Truss’s government’s tax cut plan has baffled investors, officials and pundits alike, and even sparked backlash. of the International Monetary Fund.

3. Ian enters

Hurricane Ian heads for the west coast of Florida after passing Cuba in a composite image from the National Oceanic and Atmospheric Administration (NOAA) GOES-East weather satellite on September 27, 2022.

NOAA | via Reuters

Ian became a category 4 hurricane as it prepared to crash into the Tampa region of Florida’s west coast. The storm’s center was about 75 miles west-southwest of Naples, Florida, at 5 a.m. ET Wednesday, according to the National Hurricane Center. Ian left Cuba without power before heading to Florida. The approach of the storm caused several authorities and companies to batten down the hatches. Walt Disney World and Universal Studios Orlando said they would be closing their parks for at least a couple of days, while Amazon said that close some of their stores in the region. Tampa and Orlando airports also suspended operations.

4. Crucial moment for Ukraine

A view shows the Russian flag waving in the square during a five-day referendum on the secession of Ukraine’s Zaporizhzhia Region and its union with Russia, in the Russian-controlled city of Melitopol, in Ukraine’s Zaporizhzhia Region, on September 26, 2022.

Alexander Ermochenko | Reuters

Referendums in the Russian-occupied areas of Ukraine have shown broad support for seceding and joining Russia. It’s a predictable result because the vote was hastily arranged after Ukraine’s blitzkrieg to retake large chunks of its territory, and because it was rigged, analysts say. It’s a worrying development for Ukraine and Western nations in general, as Russian leader Vladimir Putin and his government have said they will take any action to defend Russia’s land. “As for the risk that Russia will use these votes and the subsequent annexation of those territories as a pretext for nuclear attacks, we are aware of this risk, we understand that it is real,” Yuriy Sak, adviser to the Ukrainian defense minister, told CNBC. . There are also concerns that the United States and Europe cannot provide weapons to Ukraine fast enough. NATO held a special meeting on Tuesday to discuss the matter. “Unless we have new production, which takes months to ramp up, we won’t have the capacity to supply the Ukrainians,” one expert told CNBC.

5. GM hits the brakes as it returns to the office

General Motors CEO Mary Barra speaks to reporters as she awaits the arrival of President Joe Biden at the North American International Auto Show media day in Detroit, Michigan on September 14, 2022.

Rebecca Cook | Reuters

More companies are telling employees to return to the office after years of remote work. Covid infections are declining and treatments and vaccines are more widely available. But when general motors told his corporate employees on Friday that they would have to return to the office at least three days a week, it was not well received. So, on Tuesday, the company way back with another note to employees. After all, it’s hard to undo two and a half years of routine. “Our plan has always been, and continues to be, to collaboratively design the solution that best balances the needs of the business with the needs of each of you,” says the memo, which was signed by CEO Mary Barra and other executives.

– CNBC’s Jesse Pound, Elliot Smith, Sarah Whitten, Annie Palmer, Leslie Josephs, Natasha Turak and Michael Wayland contributed to this report.

Register now for the CNBC Investing Club to follow all of Jim Cramer’s stock moves. Follow the broader market action like a pro on professional cnbc.

Leave a Reply

Your email address will not be published.