Analytics, 14 October 2019
Daily comment Oct 14
- Wall St opens lower amid trade uncertainty
- The US bond markets are closed for Columbus Day
- 3Q earnings season kicks-off on Tuesday
- Mnuchin warned of increased China tariffs in December
- FB -0.5%: Libra’ partners are leaving again
- BA -0.3% as CEO lost his title
- WTI -2.4%
Market movers:
- Facebook (-0.5%): Visa, Mastercard, eBay and Stripe announced their departure from Libra cryptocurrency coalition. (https://cnb.cx/2oBYHh8)
- Boeing (-0.3%): BA board removed CEO Muilenburg from his position in a move that allows him to focus on returning 737 Max. (https://cnb.cx/2MBMYab)
- Revolut (private): The Co. is seeking to raise ~ $1.5bn to finance its global expansion plan. (https://on.ft.com/2Mcvbrp)
Macro:
- China wants further discussion before signing Trump’s “phase one”. (https://bloom.bg/2MEitRc)
- The “Phase one” or partial deal agreed on Friday includes China commitment to buy $40bn-50bn of US agricultural goods, transparent exchange rate and agreement on IP rights. (https://bloom.bg/2IJnmao)
- Mnuchin said the tariffs could go up in December in case no trade deal is signed with China. (https://cnb.cx/2VH2hCw)
- PM Johnson’s reiterated his ambition to deliver Brexit by 31 Oct. EU officials said, however, Brexit plan is still not good enough. (https://bloom.bg/2OUY6C7)
- China Sep exports in USD terms: -3.2% y/y vs est. -2.8%; Imports data: -8.5% y/y vs est. -6.0%. (https://reut.rs/2MIifZh)
Commodities:
- WTI (-2.4%): Oil futures dropped on trade concerns and worsened oil demand outlook.
- Saudi Aramco’ current production level reached 9.9mn bpd, the level before attacks on Sep 14. (https://bloom.bg/2B9rL29)
Coming up:
- Tue (10/15): Companies reporting 3Q earnings: Citi, JPM, Wells Fargo, Goldman Sachs, J&J and others
- Thu (10/17): European Parliament Committee meeting.
- Fri (10/18): China 3Q GDP data are due