decisions

Global markets were buoyed on Monday morning by expectations of another Fed rate cut and growing optimism that the US and China are moving closer to a trade deal, following comments from President Donald Trump.

The optimism wiped out gains in safe-haven assets such as gold futures and boosted stock exchanges across the globe.

Yet, leading European benchmark indexes opened mostly flat, except for Milan’s FTSE MIB, which was up by 0.61%. Madrid IBEX 35 also gained 0.37% by around 11:00 CEST.

At the same time, European benchmark STOXX 600, as well as the FTSE 100 in London, remained nearly flat. The DAX in Frankfurt gained 0.15% while Paris’ CAC 40 lost less than 0.1%. This came after credit rating agency Moody’s changed France’s outlook from stable to negative on Friday.

Investors in Europe are closely watching for signs of economic health, with one of the strongest indicators — the first reading of the eurozone’s third-quarter GDP — due on Thursday.

On the same day, the European Central Bank (ECB) is scheduled to hold its monetary policy meeting. Given that inflation in the bloc has remained around the bank’s 2% target, the ECB is expected to hold interest rates steady this week for its third straight meeting. The key deposit rate has been at 2% since June.

US-China relations

Across the globe on Monday, US futures were mostly up in pre-market trading. This came as Asian shares rallied too, with Japan’s benchmark Nikkei 225 topping 50,000 for the first time.

Later this week, the US President has a scheduled meeting with the Chinese leader Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation forum (known as APEC), to discuss the trade deal between the world’s two strongest economies.

US and Chinese officials confirmed on Sunday that they had reached an initial consensus for Trump and President Xi Jinping to finalise during a meeting later in the week.

“I have a lot of respect for President Xi,” Trump told reporters after visiting Malaysia for a summit of Southeast Asian nations, where he reached preliminary trade agreements with Malaysia, Thailand, Cambodia, and Vietnam.

“I think we’re going to come away with a deal,” Trump said.

And investors see it as a strong signal. According to Stephen Innes of SPI Asset Management: “This isn’t just photo-op diplomacy. Behind the showmanship, Washington and Beijing’s top trade lieutenants have quietly mapped out a framework that might, just might, keep the world’s two largest economies from tearing up the field again.”

The enthusiasm brought about a shift in risk-taking among investors, demonstrated by a fall in gold futures. The safe-haven asset’s continuous contract fell by almost 2% on Monday morning, as an ounce was priced at $4,055.50.

The euro and Japanese yen remained flat against the US dollar. One euro was traded at $1.1638, while the greenback cost ¥152.8070. The British pound climbed 0.26% against the US dollar, and the rate was at $1.3345.

Crude oil prices fell after European markets opened, with both benchmarks trading nearly 1% lower. The US benchmark WTI crude’s price was $61.06 a barrel, and Brent was at $65.47.

In other dealings, leading cryptocurrencies were up. CoinDesk’s Bitcoin Price Index (XBX) gained 4.86% and climbed to $115,395.34. Ethereum cost $4,171.84, up by 4.82% on Monday morning in Europe.

Another Fed rate cut on the cards, coupled with Big Tech reports

Wall Street hit record highs on Friday, after lower-than-expected inflation numbers from the US fuelled further hope that the Federal Reserve is about to cut interest rates further this Wednesday.

The data on inflation was encouraging because it could mean less pain for lower- and middle-income households struggling with still-high increases in prices. Even more importantly for Wall Street, it could also clear the way for the Federal Reserve to keep cutting interest rates in hopes of giving a boost to the slowing job market.

The Fed just cut its main interest rate last month for the first time this year, but it’s been hesitant to promise more relief because lower rates can make inflation worse, beyond boosting the economy and prices for investments.

Meanwhile, a flood of big tech companies’ earnings is on its way this week, with Microsoft, Meta and Google-parent Alphabet reporting on Wednesday. Apple and Amazon’s numbers are due to be released on Thursday.

Better-than-expected profits could fuel hopes for steady growth in the US. Information is scarce about the current state of the world’s biggest economy due to the prolonged government shutdown.

NEW YORK — The decision about whether to keep Jimmy Kimmel on his late-night ABC show depends on far more than his jokes. The choice is complicated by a web of business and regulatory considerations involving ABC’s parent company, other media companies and the Trump administration.

It’s the inevitable result of industry consolidation that over years has built giant corporations with wide-ranging interests.

ABC owner Walt Disney Co., a massive organization with far-flung operations, frequently seeks federal regulatory approval to expand, buy or sell businesses or acquire licenses. And the Trump administration has not spared the company from investigations, opening multiple inquiries in just the last few months to investigate alleged antitrust, programming and hiring violations.

Kimmel was suspended from his show last week following comments suggesting that fans of Charlie Kirk were trying to “score political points” over the conservative activist’s shooting death. Federal Communications Commission Chairman Brendan Carr called the remarks “truly sick” and suggested his agency would look into them.

Carr answers to President Trump, a frequent Kimmel target whose dislike of the comedian is well known.

Two companies that operate roughly a quarter of ABC affiliates nationwide, Nexstar Media Group and Sinclair Broadcasting, also said they would not air Kimmel’s show.

Disney took a step in December to avoid a confrontation with Trump by paying $15 million to settle Trump’s defamation lawsuit against ABC News and anchor George Stephanopoulos, in a case many civil rights attorneys considered weak. It also made moves to dismantle some of its diversity, equity and inclusion practices, including removing references in its annual report to its Reimagine Tomorrow program aimed at “amplifying underrepresented voices.”

Apparently that wasn’t enough.

In April, the FCC sent a a blistering letter to Disney Chief Executive Bob Iger saying it suspected the company was so thoroughly “infected” with “invidious” practices favoring minorities that it had no choice but to open an investigation.

Among other questions, the inquiry sought to determine whether Disney had really ended policies designed to ensure characters in its shows and its hiring practices favored “underrepresented groups.”

Meanwhile, a Disney deal struck in January to buy a stake in the streaming service FuboTV fell under scrutiny too, with several reports that the Justice Department was investigating possible antitrust violations.

The Federal Trade Commission also launched an inquiry into whether Disney broke rules by gathering personal data from children watching its videos without permission from parents. Disney settled the case this month by paying $10 million and agreeing to change its practices.

Disney also needs approval from the Trump administration for ESPN to complete its acquisition of the NFL Network.

It hasn’t helped that Disney was a target for many conservatives well before the current controversy. Republican Florida Gov. Ron DeSantis battled with the company over its criticism of a DeSantis-backed law that restricted discussion of sexual orientation in schools.

Kirk wasn’t a fan, either, criticizing Disney when it closed Splash Mountain rides at theme parks three years ago to remove references to the 1946 film “Song of the South,” which has long been decried as racist for its romanticized depictions of slavery.

The move, Kirk’s website posted, was “destructive to our cultural and societal fabric.”

The companies with ABC stations that put out statements disavowing Kimmel have their own business before the government. Nexstar needs the Trump administration’s approval to complete its $6.2-billion purchase of broadcast rival Tegna.

Sinclair has its own regulatory challenges. In June, it entered into an agreement with the FCC to fix problems with paperwork filed to the agency and to observe rules about advertising on children’s shows and closed-captioning requirements. It has also petitioned the regulator to relax rules limiting broadcaster ownership of stations.

The companies are being asked by advocates and others to put aside financial concerns to stand up for free speech.

“Where has all the leadership gone?” ex-Disney Chief Executive Michael Eisner wrote Friday on social media. “If not for university presidents, law firm managing partners and corporate chief executives standing up to bullies, then who will step up for the First Amendment?”

The administration’s attacks on Kimmel have also been criticized in some unexpected places, such as the Wall Street Journal and Bari Weiss’ website, the Free Press — both known for their conservative editorial voices — and by Republican Sen. Ted Cruz of Texas, a staunch conservative and Trump ally.

The comedian’s comments don’t justify the right wing’s move toward regulatory censorship, the Journal wrote in an editorial. “As victims of cancel culture for so long, conservatives more than anyone should oppose it,” the Journal wrote. “They will surely be the targets again when the left returns to power.”

“When a network drops a high-profile talent hours after the FCC chairman makes a barely veiled threat, then it’s no longer just a business decision,” the Free Press wrote in an editorial. “It’s government coercion. Is it now Trump administration policy to punish broadcasters for comedy that doesn’t conform to its politics?”

Bauder and Condon write for the Associated Press.