Today’s Big Picture

Equities in Asia finished mostly higher today, capping off a positive week in full. Japan’s Nikkei traded off modestly today as did Hong Kong’s Hang Seng while China’s Shanghai Composite climbed 1.7% after reopening following the conclusion of the Golden Week holiday. Data from China’s Ministry of Culture and Tourism showed 637 million trips in China over the eight-day holiday, which generated revenue of $69.5 billion – now to wait and see what if any fall out there is on the COVID-19 front. 

By mid-day trading, European equities were mostly higher and U.S. futures point to a continuation of the week’s move higher for all of the U.S. equity indices. Spurring them on this morning is the continuation of what we can only call fiscal stimulus headline roulette as President Trump says he wants a “big deal” before the election that includes more comprehensive relief. With 24 days until the 2020 presidential election, barring a quick compromise between the two sides, the probability of a fiscal stimulus deal before the election looks increasingly less likely as each day ticks by. Weekend news-watching will be a must as any developments good or bad will set the tone for how global equity markets start next week.

Because a global pandemic, record-destroying fires in the west, and a few hurricanes already under the south’s belt this year just aren’t nearly enough for the joy that is 2020, Hurricane Delta has strengthened to a Category 3 as it churns toward storm-weary Louisiana. It is expected to make landfall as Category 2 or 3 late Friday, battering some of the same areas ravaged by Hurricane Laura.

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International Economy

August Household Spending in Japan fell 6.9% YoY, matching expectations for the month and compared to the 7.6% drop in July. On



a man looking at the camera: Reuters


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Reuters

  • IBM surged on Thursday after it announced plans to spin off its legacy managed-infrastructure business so it can focus on building up its cloud division.
  • The spinoff is expected to be tax-free for IBM shareholders and be completed by the end of 2021, the company said.
  • CEO Arvind Krishna said the spinoff would allow IBM to be “laser-focused on the $1 trillion hybrid cloud opportunity.”
  • IBM also released preliminary third-quarter earnings results.
  • Visit Business Insider’s homepage for more stories.

IBM is shedding its legacy business to focus on growing its cloud unit, it said on Thursday.

IBM said it would spin off its managed-infrastructure business as a new publicly traded company in a tax-free deal for IBM shareholders. The spinoff is expected to be completed by the end of 2021, it said.

CEO Arvind Krishna said that spinning off the company’s legacy networking business would allow it to be “laser-focused on the $1 trillion hybrid cloud opportunity.”

The deal follows IBM’s acquisition of RedHat for $34 billion in 2019 to bolster its cloud offering.

“Now is the right time to create two market-leading companies focused on what they do best,” Krishna said.

Video: IBM CEO and executive chair on spinning off IT infrastructure unit (CNBC)

IBM CEO and executive chair on spinning off IT infrastructure unit

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IBM said that as it focuses on growing its cloud business, it will have “an enhanced financial profile with a clear trajectory for improved revenue and profit growth.”

News of the spinoff was well received by investors, with shares of IBM surging as much

FILE PHOTO: A man stands near an IBM logo at the Mobile World Congress in Barcelona, Spain, February 25, 2019.    REUTERS/Sergio Perez
FILE PHOTO: Man stands near an IBM logo at the Mobile World Congress in Barcelona


  • IBM surged on Thursday after it announced plans to spin off its legacy managed infrastructure business so it can solely focus on building up its cloud division.
  • The spinoff is expected to be tax-free for IBM shareholders and will be completed by the end of 2021, the company said.
  • “IBM is laser-focused on the $1 trillion hybrid cloud opportunity,” IBM CEO Arvind Krishna said.
  • IBM also released preliminary third quarter earnings results.
  • Visit Business Insider’s homepage for more stories.

IBM is shedding its legacy business to focus on growing its cloud unit, according to a release on Thursday.

IBM will spin off its managed infrastructure business as a new publicly traded company in a tax-free deal for IBM shareholders. The spinoff is expected to be completed by the end of 2021.

The spinoff of IBM’s legacy networking business will allow the company to become “laser-focused” on the $1 trillion hybrid cloud opportunity, IBM CEO Arvind Krishna said.

The deal follows IBM’s continued transition to the cloud business, which was heightened in 2019 after it acquired RedHat for $34 billion to help bolster its cloud offering.

“Now is the right time to create two market-leading companies focused on what they do best,” Krishna explained.

Read More: A $2.5 billion investment chief highlights the stock-market sectors poised to benefit the most if stimulus is passed after the election – and says Trump ending negotiations doesn’t threaten the economic recovery

With IBM able to focus on growing its cloud business, the company said it will have “an enhanced financial profile with a clear trajectory for improved revenue and profit growth,” the company said.

News of the IBM development was well received by investors, with shares