Friday, February 3, 2017

Relief of financial regulation and jobs data cheer Wall Street – Journal-of-Business – Portugal

The major u.s. indices have opened on a high this Friday, February 3, animated by jobs data and by the decision of Donald Trump to reverse the rules of the Obama administration to the financial sector.

The industrial index Dow Jones rises of 0.59% for 20.002,69 points, while the technological Nasdaq gained 0.26 per cent to 5.650,94 points. Already the S&P500 values of 0.44% to 2.290,91 points, in its third session in succession of ascents.

Before the opening of the market, it was revealed that the unemployment rate in the United States rose 4.7% in December to 4.8% in January, but job creation was the highest of the last four months. The world’s largest economy created 227 thousand jobs in January, a value above the estimates of economists surveyed by Reuters which pointed to 175 thousand.

This Friday, the White House further revealed that, after a meeting with a group of entrepreneurs, that includes the CEO of Blackstone, Trump will sign two executive orders to relieve financial regulation.

In the first place, it will hang the call rule as a trust – a rule that requires that the companies which manage savings for retirement to work for the best interest of their clients – that will come into force in April. The Obama administration argued that this rule would protect millions of retirees from being directed to investments that are inappropriate, involving great risks or costs, that generate more profits to the brokers.

in addition, the president of the United States will order a review of the laws of Dodd-Frank, enacted in response to the financial crisis of 2008.

On Monday, Trump claimed that this legislation issued the “entrepreneurial spirit” of the country, and access to credit. “The regulation was really horrible for large companies, but it has been worse still for the small businesses,” said the president. “Dodd-Frank is a disaster.”

This Friday, investors will still be aware of a speech by Charles Evans, president of the Federal Reserve bank of Chicago, which may give clues about the pace of rising interest rates in the United States.


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