Boris Johnson officially became the U.K.’s Prime Minister this week. Concerns about a no-deal Brexit persist because Johnson made it clear he intends to withdraw from the European Union by October 31, with or without a deal in place. Stateside, the second quarter U.S. GDP data showed slower growth with weakening business investment offsetting stronger consumer spending. Also, the FTC came down on Facebook Wednesday with a $5 billion fine and various required measures due to privacy issues with Facebook’s users. The House passed a two-year budget deal Thursday that would raise the debt ceiling that the U.S. government was projected to reach in September. It is expected to be passed by the Senate and then on to President Trump for his signature.
Domestic small and large cap stocks had a strong week even amid mixed corporate earnings reports. Facebook, despite facing fines and increased regulation, reported strong revenue and user growth. International stocks in developed and emerging markets ended the week down – perhaps due to ECB President Mario Draghi’s comments that came across to investors as more hawkish than expected. As Draghi set the stage for his departure, he announced a new stimulus package to be implemented in September. Short- and long-term U.S. Treasury yields increased this week as investors moved toward riskier assets during a generally strong week for markets.
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