Analytics, 24 September 2019
Daily comment Sep 24
Daily comment Sep 24
- Wall St opens higher on trade hopes
- US-China trade talks to continue in 2 weeks
- China gave additional waivers to buy US farm products
- UK court declared PM’ decision unlawful
- NFLX -2.5% on analysts concerns
- AAPL +1.7%, to keep Mac Pro assembling in the US
- FB +0.2%, to acquire brain-control start-up
- WTI -0.9%
Market movers:
- Apple (+1.7%) will continue manufacturing the Mac Pro in Texas after securing China tariff reliefs. (https://bloom.bg/2kJ19jU)
- Meanwhile, Jefferies upgraded Apple to “buy” from “hold”, setting TP at $260 (~19% upside). (https://cnb.cx/2lju4ve)
- Netflix (-2.5%): Wall St analysts started raising concerns over looming streaming services competition. Barclays sees NFLX valuation “too-high”; Pivotal slashed its TP to $350 from the Street high $515. (https://cnb.cx/2mqbSQY)
- Alphabet (+1%): Google won a European “right to be forgotten” case. (https://on.wsj.com/2mQV5qj)
- Facebook (+0.2%) announced acquisition of brain-computing startup CTRL-labs. Sources said the deal was ~$1bn. (https://reut.rs/2mm1r0q)
Macro:
- UK Supreme Court declared unlawful PM Johnson’ Parliament suspension decision. The parliament will resume tomorrow. PM claimed disagreement with the Court ruling. The GBP advanced. (https://on.wsj.com/2mOIhk9)
- US Treasury secretary Mnuchin said the high-level negotiations will take place in Washington during the week of Oct. 7th. (Bloomberg)
- China granted additional waivers for domestic companies to buy US soybeans. (https://bloom.bg/2l3aS4Y)
- PBOC will not give additional monetary stimulus as other CBs did, according to PBOC Governor. (https://on.wsj.com/2moIbiQ)
Commodities:
- WTI (+0.3%): on Saudi Arabia’ progress in restoring refiners to full capacity after drone attacks. Earlier, Saudi Aramco reduced refinery run rates by 1mn bls/d. (Bloomberg)
- US crude inventories probably declined by 600k bls last week - Bloomberg survey.
- EIA published International Energy Outlook 2019, saying that world energy consumption will grow by ~50% between 2018 and 2050. (Bloomberg)
Coming up:
- Trump will address the UN General Assembly this morning.
- On Fri (9/27) -US Core PCE data is due.