FT News Briefing Wednesday, October 2
Oct 2, 2019
The US manufacturing sector faces a significant downturn, marking its lowest levels since the recession. Charles Schwab ignites fierce competition by eliminating stock-trading fees. A landmark ruling gives states authority over net neutrality regulations. Meanwhile, a growing scandal at Credit Suisse unfolds, with executives resigning amidst corporate espionage allegations and unauthorized surveillance of a former leader. The turmoil raises critical questions about the bank's future and the stability of its leadership.
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Manufacturing Slowdown
- US manufacturing activity contracted for the second consecutive month, hitting its lowest level since the global recession.
- This drop mirrors a global trend, with all 36 advanced economies experiencing lower output this summer compared to last year.
Zero-Fee Trading Impact
- Charles Schwab eliminated stock trading fees, following a trend started two years ago when they reduced fees to just under $5.
- This move, intended to compete with online platforms like Robinhood, caused Schwab's shares to drop 9.7%, impacting competitors like TD Ameritrade and E-Trade.
Net Neutrality Ruling
- A US appeals court ruled that states can create their own net neutrality rules.
- This ruling allows states to implement stricter regulations than the Trump administration's, which overturned Obama-era rules preventing internet providers from controlling internet access.