The US Department of Justice is considering requesting a Judge to break up Google, after it was found guilty on the 5a.<\/sup> of August, of maintaining a monopoly in US general search services and US general search text advertising. The DOJ in its court filing has stated that they are considering remedies to address four categories of harms related to Google\u2019s search distribution and revenue sharing, generation and display of search results, advertising scale and monetisation, and accumulation and use of data. The DOJ goes on to state that they are considering structural remedies that would prevent Google from using products such as Chrome, Play and Android, which may be interpreted as a break up of Google in order to \u201cresolve the serious competition issues that have plagued the relevant markets for more than a decade\u201d. The potential move by the DOJ to break up Google (#GOOG), could significantly weigh on the company\u2019s stock price, as a splitting of its business could reduce overall revenue for the company. However, we should note that a further refined proposed final judgement will be presented in November and a revised proposed final judgement in March, which may see changes to the proposals and could provide a clearer picture of the remedies sought by the DOJ and might not include a breaking up of Google in the final proposal. In our view, we would not be surprised to see a hefty fine being imposed against Google, with potential structural changes that could facilitate increased competition in the search engine business.<\/p>\n\n\n\n \u00a0As for financial releases we note that the US CPI rate is anticipated to showcase easing inflationary pressures in the US economy. In particular, the headline rate on a year-on-year basis is expected to slow down from 2.5% to 2.3%, which may further amplify the soft-landing scenario for the US economy. Hence, should the CPI rates for September come in as expected or lower it may validate the Fed\u2019s rate-cutting path and may provide the Fed with some leeway should they continue on their monetary easing path. In turn, the implications of easing financial conditions and a soft-landing scenario in the US economy may provide support for the US Equities markets as the possibility of a recession may further decrease. However, should the CPI rates unexpectedly accelerate and come in higher than expected, it may re-ignite concerns about a recession in the US economy, which in turn may weigh on the US stock markets.<\/p>\n\n\n\n Boeing announced yesterday that it has withdrawn its pay offer to 33,000 US factory workers after talks collapsed with the labour union, with Boeing stating the union\u2019s demands were \u201cnon-negotiable\u201d. As a reminder, the striking union of the company\u2019s West Coast factory workers is requesting a 40% pay rise over four years and the restoration of a defined-benefit pension plan that was taken away a decade ago. The company\u2019s latest offer included a 30% raise and a restoration of a performance bonus which has since been struck down by the union representatives and effectively withdrawn from the table by Boeing. The strike appears to be poised to continue, as no agreement appears to be in sight and thus should it continue next week, it would mark the 5a.<\/sup> consecutive week that workers have been on strike. Overall, should the strikes continue, it may weigh on the company\u2019s stock price, as further delays and increased costs may deter investors and paint an even more dire picture for the company\u2019s financials, with Moody\u2019s considering a downgrade on Boeing\u2019s rating to junk status per Reuters<\/p>\n\n\n\n Earnings season makes a return this week, with Wells Fargo (#WFC) and JP Morgan (#JPM set to release their earnings on Friday. Whereas next week we would like to note Johnson&Johnson (#JNJ), Citigroup (#C), Goldman Sachs (#GS) and Morgan Stanley (#MS) amongst others.<\/p>\n\n\n\nUS CPI rates for August in sight<\/strong><\/h2>\n\n\n\n
Boeing(#BA) continues its battle with its labour union<\/strong><\/h2>\n\n\n\n
Earnings Season returns<\/strong><\/h2>\n\n\n\n
An\u00e1lise t\u00e9cnica<\/u><\/strong><\/h2>\n\n\n\n
US500 Cash Daily Chart<\/strong><\/h2>\n\n\n\n
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