Analytics, 11 October 2019
Daily comment Oct 11
- Wall St opens higher on trade progress
- It’s the second day of US-China trade talks
- AAPL +1.3% on 5G plans
- YNDX -11% on possible financing restrictions
- Hugo Boss -12.6% on profit warning
- Brexit deal now is likely
- WTI +0.5% after attacks on Iranian tanker
Market movers:
- Apple (+1.3%): The Co. is planning to develop its own 5G chip by 2022. (http://bit.ly/35jOKFH)
- Yandex (-11%): The Kremlin is backing a draft law to restrict foreign ownership of local tech firms on national security grounds despite warnings from providers that it will harm their businesses. (https://bloom.bg/2IIJxO1)
- Hugo Boss (-12.6%): The Co. reported 3Q results below estimate, cutting its FY19 EPS forecast again on weak demand in the US and Hong Kong. (https://reut.rs/33rdDNX)
- SAP (+9.2%): CEO Bill McDermott will step down, with Jennifer Morgan and Christian Klein taking over as SAP’ co-CEOs. The Co. also issued strong 3Q pre-announcement. (https://cnb.cx/31cR8Le)
- Walmart (-0.4%): US Walmart CEO Greg Foran will leave the Co. on Jan. 31 to become CEO of Air New Zealand. (https://cnb.cx/2VzKnlk)
Macro:
- US-China high-level trade talks went better than expected. Donald Trump will meet with China’s VP Liu He at 2:45 PM (EST). (https://reut.rs/2VuWPTk)
- UK PM Johnson and his Irish counterpart agreed to find “pathway to a possible deal” during the meeting yesterday. GBP +1.5% on positive sentiment. (https://on.ft.com/2fnBRm8)
Commodities:
- WTI (+0.5%): Iranian commercial oil tanker was damaged in a missile strike in the Red Sea. (https://on.wsj.com/3261pd7)
- IEA cut oil demand outlook by 65k bpd for 2019 year and by 105k – for 2020. (https://bloom.bg/318k3je)