Analytics, 18 November 2019
Daily comment Nov 18
- Wall St opens mixed on trade uncertainty
- YNDX +7.5% on share repurchase, restructuring plans
- HP rejected Xerox acquisition bit
- TSLA to invest $4.4bn in Berlin factory
- PBC cut the short-term loans rate
- WTI -0.7%
Market movers:
- Apple (-0.3%): iPhone 11 shipments to China during Sep and Oct rose 6% y/y to 10mn devices. (https://bloom.bg/33XZF6S)
- Yandex (+7.5%) agreed with Kremlin a restructuring plan with transferring a “golden share” to Public Interest Foundation (PIF) with expanded veto power. (https://on.ft.com/2CRqFsJ)
- Yandex also approved up to $300mn (~2.5% of Mkt-Cap) share buy-back program. (https://reut.rs/2Ky1saS)
- Tesla (-0.3%) plans to invest ~$4.4bn in its recently announced factory in Berlin with a production capacity up to 150k cars annually. (https://bloom.bg/2Xn1ojF)
- Ford (+0.6%) is considering making its new electric Mustang Mach-E in China. (https://bloom.bg/35eYvns)
- HP (-0.3%): The Co’ board unanimously rejected a take-over proposal from Xerox, saying the offer would undervalue the company. (https://cnb.cx/37gY5Pp)
Macro:
- The US and China high-level trade negotiators held “constructive discussions” over the weekend to address “phase one” concerns. (https://bloom.bg/2pxvMeG)
- The US is reportedly planning to give another 90-day extension to Huawei license. (https://reut.rs/2KshV0r)
- PBC cut 7-day reverse repo rate to 2.5% from 2.55% (the first time since 2015) and injected $26bn into the financial system. (https://bloom.bg/33ZVxmG)
Commodities:
- WTI (-0.7%): Oil slipped amid US-China trade uncertainty.
- Hedge-fund WTI net-long position +32% to 153.2k futures and options. (https://bloom.bg/32Urk7q)
Coming up:
- On Tue (11/19): The 1st UK TV debates ahead of the next month elections.