News of the day of July 5, 2024
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The U.S. payrolls report is expected to show that employers added 200,000 jobs in June, down from last month; bitcoin (BTC/USD) and other cryptocurrencies are down on fears of massive selloffs after bankrupt exchange Mt. Gox began paying out $9 billion; European Union (EU)) is reportedly set to warn social media platform X over content violations in the latest move against US tech companies; Disney (SAY), Netflix (NFLX), and other streaming services have asked a Canadian court to overturn content fees; and Shell (SHELL) plans to take an impairment charge of up to $2 billion after work on a biofuels plant was halted. U.S. stock futures were little changed after the Independence Day holiday. Here’s what investors need to know today.
1. Jobs report expected to show slowdown in hiring
Following yesterday’s holiday, investors will begin the trading day Friday with fresh labor market data when the Bureau of Labor Statistics releases its monthly employment report at 8:30 a.m. ET. Economists predict that Employers created 200,000 jobs in Juneless than the 272,000 in May, while the unemployment rate is expected to remain at 4% and hourly wages are expected to increase by 0.3%, compared to 0.4% the previous month. Federal Reserve June Meeting Released Wednesday, some officials said they were watching the jobs numbers more closely as inflation falls, as unexpected weakness in the labor market could prompt the Fed to move more quickly to cut interest rates.
2. Bitcoin and Ether Drop as Mt. Gox Payouts Begin
Cryptocurrency values ​​drop after Mt. Gox Exchange Fails has begun making payments to former customers that could total as much as $9 billion, putting selling pressure on cryptocurrencies from holders looking to realize gains. Bitcoin (BTC/USD) is down about 3% to around $55,000, while ether is down 3.5%, part of a selloff totaling $170 billion in market capitalization over the past 24 hours. The Mt. Gox payout could put between 65,000 and 140,000 new bitcoins on the market, while customers will also receive payments in Bitcoin Cash.
3. EU reportedly set to warn X for failing to tackle dangerous content
THE European Union (EU)) is preparing to issue a formal warning to Elon Musk’s social media platform X for failing to combat dangerous content, the latest in a series of actions it has taken against big tech companies under recently enacted laws, according to a press release. Bloomberg According to the report, a violation of the Digital Services Act (DSA) could result in a fine for X of up to 6% of its revenue. The EU has also used its new Digital Markets Act (DMA) to accuse other tech giants, including Apple (AAPL) by unfairly restricting the manner in which developers can request paymentsand Facebook’s parent Meta platforms (META) without allowing users refuse data collection.
4. Disney, Netflix among streamers seeking to block Canadian content fees
The Walt Disney Company (SAY), Netflix (NFLX) and other streaming companies have asked a Canadian court to halt their proposed 5% levy on domestic sales to help fund local content. The Motion Picture Association-Canada has filed a petition with the country’s Federal Court of Appeal seeking to halt the proposed payments by the Canadian Radio-television and Telecommunications Commission, which could cost streaming companies up to C$200 million ($147 million) a year. The Wall Street Journal reported. Other streaming services affected by the lawsuit include Warner Bros. Discovery’s (WBD) and Paramount Global (FOR).
5. Shell to take on $2 billion after suspending work on its biofuel plant in the Netherlands
British energy giant Shell (SHELL) said he was about to take a loss of value The European energy group said Friday it planned to book the tax after weak market conditions forced it to suspend construction of a biofuels plant in Rotterdam and sell its chemicals refinery in Singapore. The group also said it expected its Integrated Gas segment to generate lower revenue than its first-quarter results “due to seasonality.”
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