Daily comment Sep 16

Analytics, 15 September 2019

Daily comment Sep 14

Wall St opens in the red amid heightened geopolitical risks after drone attacks and slowdown in China production
AAPL -0.1% on EU $14bn tax fight
WTI +9.7% on oil disruptions

Market movers:

Apple (-0.1%) will appear in Luxemburg Court this week over Irish tax avoidance case. The company will challenge EU’s Vestager ruling back in 2016, that levied AAPL ~$14nb tax bill. (https://reut.rs/2lWwEXQ)
Separately, Apple rebuffed recent Goldman Sachs’ report, saying Apple TV+ launch and its accounting treatment will not have material impact on financials. (https://reut.rs/2kovTqo)
Meanwhile, Disney’ CEO resigned from AAPL’ board as two companies launching competitive streaming services. (https://cnb.cx/2lWnPxa)
Facebook (-0.3%) after French and German authorities agreed to ban “Libra”. (https://reut.rs/2mipuNZ)

Macro:

China Aug Industrial output +4.4% y/y vs est. +5.2% and +4.8% in July. The growth was the weakest in 17.5 years. (https://bloom.bg/2kOuOs3)
PM Johnson will meet EU President Juncker today. Multiple reports suggest he will reiterate that his intention to secure a deal by Oct 18 but will reject any delay after Halloween. (https://reut.rs/2lT9L7N)

Commodities:

WTI (+9.7%) after drone attacks knocked out 5.7mn bpd of production. Yemen’s Iranian-aligned Houthi rebels claimed responsibility for the attack, saying they sent 10 drones to strike at Aramco facilities. (https://reut.rs/2lSyoBH)
According to WSJ, the full recovery will take a few weeks. By now, Saudis restored around a third of disrupted production. (https://on.wsj.com/2kf3bbc)

Coming up:

Company / Analytics