Trump policy doubts, weak inflation to weigh on Wall Street (Reuters) Trump Remarks on Violent Rally Rattle Aides, Risk Agenda (WSJ) Trump blasts Republican senators over Charlottesville criticism (Reuters) Trump's crisis spurs talk of White House departures (Reuters) Apple denounces neo-Nazis as Spotify bans ‘white power’ tracks (Guardian) The 48 Frantic Hours Before CEOs Broke With Trump (BBG) ECB Officials Expressed Concern Over Risk of Euro Overshoot (BBG) Euro dives to three-week low after ECB points to overshoot (Reuters) Saudi Crude Exports Fall Just as Domestic Stockpiles Dwindle (BBG) Goodbye contango? Oil's long march toward backwardation (Reuters) North Korea shows the Capitol Building being obliterated by red missiles (Daily Mail) What will Kim do next? Sixth nuclear test seen critical for North Korea (Reuters) Robert Mueller May Not Be The Savior The Anti-Trump Internet Is Hoping For (NPR) U.S. General Says Trump Has Final Say on Unilateral Korea Strike (BBG) The Growing List of Money Managers Cutting Their Exposure to Junk Bonds (BBG) Despite Economic Growth, Many in Europe Still Lack Steady Jobs (WSJ) For Bull Market in U.S. Stocks, You’re Only as Young as You Feel (BBG) Alibaba beats on earnings as e-commerce remains core revenue driver (Reuters) Bannon Says He Fights Mnuchin, Cohn Daily for Tough China Policy (BBG) Henry Hub Emerges as Global Natural Gas Benchmark (WSJ) Wal-Mart Sales Rise as Retailer Dodges Industry Malaise (WSJ) Overnight Media Digest WSJ - Business leaders disbanded two CEO councils created by the White House, a move they said was protesting Donald Trump's failure to sufficiently condemn racism, marking a dramatic break between U.S. companies and a president who has sought close ties with them. on.wsj.com/2w3vk9d - Apple Inc has set a budget of roughly $1 billion to procure and produce original content over the next year, as the iPhone maker shows how serious it is about making a splash in Hollywood. on.wsj.com/2w3Njwm - Facebook Inc dismantled a popular anonymous discussion board for employees last year that had become a forum for conservative political debate that sometimes degenerated into racist or sexist comments. on.wsj.com/2w3zOMU - Recent moves by tech companies including Alphabet Inc's Google, GoDaddy Inc, Uber and GoFundMe to crack down on white supremacists thrust them into unusual territory for corporations that often take a more hands-off approach. on.wsj.com/2w3R19g - President Trump's comments faulting both sides in Saturday's deadly white nationalist protest in Virginia rattled his staff and risk setting back his policy agenda in Congress. on.wsj.com/2w3LqQ5 FT - The Energy & Utilities Alliance, a group of energy companies, is pressing a Parliamentary inquiry into the consequences of the closure of Centrica Plc's Rough storage site off the Yorkshire coast. - Amazon.com Inc has boost its UK investment with new fulfilment centre in Bristol that will create 1,000 new permanent jobs. Ahead of the facility's opening which is slotted for 2018, Amazon will begin recruiting operation managers, engineers, human resources specialists. - An official data published on Wednesday shows the number of EU nationals working in the UK has hit a record high with an estimated 2.37 million EU workers. This is the highest figure since records began two decades ago and was driven by a large increase in the number of Bulgarian and Romanian citizens who have found employment in the UK. - Hedge fund Elliott Management acquired a specific class of debt worth about $60 million from Fidelity Investments that gives it the power to approve or block Berkshire Hathaway Inc's $18 billion agreement to buy Oncor. NYT - U.S. President Donald Trump announced that he would dissolve two councils of business leaders after a decision by the members of his Strategic and Policy Forum to disband. nyti.ms/2fMFB36 - A growing number of Federal Reserve officials see a need to adjust the central bank's assumptions on the economy, according to an account of the latest policy meeting. nyti.ms/2fMj2eT - Eboni Williams, a host of the show "the Specialists" on Fox News, derided Trump in exceptionally blunt terms over his response to the violence at a white supremacist rally in Virginia on Saturday. In the days since her segment aired, Williams said she had received nearly 150 menacing messages from people who denounced her remarks and called her a traitor, a racist, a "disgrace," and anti-American. nyti.ms/2fNFPH2 - The Trump administration opened talks with Canada and Mexico on the North American Free Trade Agreement by asserting that the current deal had failed. nyti.ms/2fMP7Dg - Some of China's biggest technology players are backing a plan to invest nearly $12 billion in one of the country's telecommunications giants, China Unicom Hong Kong Ltd, the latest move in a broader government push to shake up the country's bloated state-run companies. nyti.ms/2fMH3lP Canada THE GLOBE AND MAIL Fidelity Investments Canada ULC is gearing up to enter the crowded market for exchange-traded funds, with the company on the hunt for an executive to develop ETFs to sell in this country. tgam.ca/2vLtwPw The Saudi Arabian government is defending the recent deployment of Canadian-made armoured vehicles against residents of the kingdom's eastern province, saying security forces found it necessary to use "military equipment" to fight terrorists who threatened the safety of its population. tgam.ca/2w4qlVJ The federal government has pledged more than C$21 million ($21.00 million) in humanitarian assistance to help respond to an unprecedented famine in Yemen and parts of Africa, matching donations made by Canadians to registered charities earlier this year. tgam.ca/2w4b3A9 NATIONAL POST The executive chairman of Sears Canada Inc, Brandon Stranzl, has stepped down in order to focus on making a bid for the insolvent retailer, currently operating under court protection. bit.ly/2w54sWo Grocery chain Loblaw Companies Ltd and Canadian Imperial Bank of Commerce have terminated their 19-year President's Choice Financial partnership as the bank unveiled its own digital brand on Wednesday. bit.ly/2w4CEkK Britain The Times - The U.S. government has filed what could be the largest Libor scandal-related lawsuit yet against some of Britain's biggest lenders, alleging that their role in rigging borrowing rates had played a part in the collapse of American banks once worth more than $400 billion. bit.ly/2w2StIX - The Financial Reporting Council said that it had fined PwC an initial 6 million pound ($7.73 million) and had severely reprimanded it for "extensive" misconduct relating to RSM Tenon Group Plc. bit.ly/2w2StIX The Guardian - U.S. President Donald Trump was forced to disband two White House business councils disintegrating around him on Wednesday in the wake of his controversial remarks about the weekend violence in Charlottesville. bit.ly/2w3lt31 - Figures from the Finance and Leasing Association, which represents about 86 percent of borrowing against vehicles in UK, show the number of used cars bought using finance increased by 7 percent in June compared with the same month a year ago. bit.ly/2w3lt31 The Telegraph - Activist investor Elliott Advisors has shelved its legal battle against Dulux maker Akzo Nobel NV after its bid to oust the company's chairman was last week rejected by a Dutch court. bit.ly/2w2rJIu - Fiat Chrysler Automobiles NV is signing up to the group of BMW, Intel Corp and Delphi Automotive Plc and Continental AG to develop systems for self-driving cars. bit.ly/2w3srFs Sky News - The bakery chain Greggs Plc is in talks to join a truck cartel claim being brought by the Road Haulage Association which could total almost 4 billion pounds ($5.16 billion). bit.ly/2w3n74W - Billing blunders by energy firms cost customers more than 102 million pound ($131.47 million) last year in the UK, figures reveal. A survey by energy switching site uSwitch found around 1.3 million households were overcharged by an average of 79 pound ($101.82) each by suppliers -- and some are still waiting for a refund. bit.ly/2w31AJt The Independent - Amazon.com Inc has unveiled plans for a new warehouse near Bristol in Britain that is set to create over 1,000 jobs in a bid to meet growing customer demand. The online retail company says it will start recruiting engineers, operations managers, HR and IT specialists in 2018 ahead of the Severn Beach site's opening next year. ind.pn/2uHY9YJ - The UK Government is preparing a crackdown on the rapidly increasing proportion of top degrees being awarded by universities, amid fears that the value of higher education is being eroded. ind.pn/2w2NXKk
White House Risks a Backfire Over China and North Korea (WSJ) Three More CEOs Turn Their Backs on Trump (BBG) Cities ramp up removal of Confederate statues (Reuters) Moon Vents Korea Frustration by Asserting Right to Veto U.S. War (BBG) Iran says its drones near U.S. vessels are safe, following rules (Reuters) U.S. sanctions hit Russian hopes of a 'Trump bump' for investment (Reuters) China says it will defend interests if U.S. harms trade ties (Reuters) Defaults Increase for ‘Green’ Loans (WSJ) Nuclear Power’s Woes Imperil U.S. National Security, Moniz Says (BBG) Britain asks for interim customs deal with EU, new trade deals post-Brexit (Reuters) The Nordic Bank That Doesn’t Want Corporate Cash (BBG) Profit-Rich Pickups, SUVs May Catch Break in Trump Auto Review (BBG) U.S. hedge funds bearish on FAANG stocks in second-quarter (Reuters) Netflix Co-Founder’s Crazy Plan: Pay $10 a Month, Go to the Movies All You Want (BBG) Asian neighbors protest as Japan PM sends offering to war dead shrine (Reuters) Junk Bonds of the Financial Crisis Were the Decade’s Biggest Winners (BBG) Some Companies Want You to Take a Mental-Health Day (WSJ) Overnight Media Digest WSJ - U.S. Donald President Trump, under pressure to explicitly denounce hate groups involved in the weekend's deadly racial violence in Virginia, singled out white-nationalist groups by name for condemnation. on.wsj.com/2vDIp6p - Pandora Media said former Sling TV Chief Executive Roger Lynch will lead the Internet-radio company as it faces an increasingly competitive landscape. on.wsj.com/2vDzCkY - Merck & Co's Frazier, Intel Corp's Krzanich and Under Armour Inc's Plank resigned from a manufacturing-advisory council to the Trump administration in an apparent protest of the president's failure to quickly condemn the white supremacists in Charlottesville, Virginia. on.wsj.com/2vDTVil - North Korea pulled back its threat to attack a United States territory, after days of trading increasingly bellicose rhetoric with President Trump, and hours after China took its toughest steps against Pyongyang to support U.N. sanctions. on.wsj.com/2vDJs6z - Jana Partners Llc, the activist hedge fund whose investment in Whole Foods Market Inc catalyzed the natural grocer's takeover by Amazon.com Inc has taken a 2 percent stake in meal-kit maker Blue Apron Holdings Inc . on.wsj.com/2vDU59r - Warren Buffett's Berkshire Hathaway is getting out of one of America's oldest companies: General Electric Co . Berkshire received most of the shares after the investor lent roughly $3 billion to GE in October 2008 during the depths of the financial crisis. on.wsj.com/2vDDCSn FT - Telit Communications said that its chief executive Oozi Cats, who has led the company since 2000, had resigned. Telit, last week, suspended Cats following allegations of links between him and a U.S. fugitive by the name of Uzi Katz who was accused of wire fraud in Boston in 1992. - Corvex, a U.S. activist hedge fund run by Carl Icahn protégé Keith Meister, has built a $400 million stake in Danone SA. Corvex considers Danone to be undervalued. - A UK government paper due to be published on Tuesday makes clear that the UK wants to remain in a customs union with the EU for at least the estimated three years of transition after Britain's 2019 exit. - Pandora Media Inc has named Roger Lynch, the founding chief executive of Sling TV, as its new chief executive. Lynch will replace Tim Westergren, Pandora's cofounder, who left in June as part of a plan to "refocus" the online radio company. NYT - Three corporate leaders stepped down from a White House advisory group after President Trump equivocated in his initial remarks on racially motivated violence in Charlottesville, Virginia. nyti.ms/2fGfrPw - Pandora Media Inc, the struggling internet radio giant, appointed a new chief executive on Monday, after a shake-up in June that installed SiriusXM as an influential new investor. nyti.ms/2fGfHhs - In a legal action that will be watched closely in Hollywood, several producers of "The Walking Dead" on Monday sued AMC Entertainment Holdings Inc — the cable network that presents the hit TV series — seeking a greater share of profits. nyti.ms/2fGKYRb - Billionaire Beny Steinmetz was detained by the Israeli police on Monday morning for questioning in connection with an investigation into money laundering, obstruction of justice and bribery, officials said. nyti.ms/2fH5PUv - The prospect of further regulatory actions against Wells Fargo & Co, whose misdeeds are far-reaching, appear to be diminishing under the Trump administration. nyti.ms/2fG5S2S Britain The Times - The joint heads of the newly merged Standard Life Aberdeen have vowed to continue in their shared role for another ten years. Martin Gilbert insisted that he and Keith Skeoch, his fellow joint chief executive at the fund manager, made a "powerful combo". bit.ly/2vDb5fI - Beny Steinmetz, an Israeli billionaire who has interests in iron ore and diamond mines, has been detained on suspicion of money laundering. Israeli Police said that Steinmetz and four others were being held for allegedly drawing up false contracts and property deals to launder money. The list of suspects includes David Granot, the chairman of Bezeq Israeli Telecommunication Corp. bit.ly/2vDsaGu The Guardian - Brexit is being blamed for a decline in the number of job vacancies in the City and a drop in applications for key posts compared with last summer. According to headhunters Morgan McKinley there was an 11 percent slide in the number of City jobs in July, compared with a year ago, and a 33cent fall in professionals seeking positions. bit.ly/2vDxutH - The squeeze on cash-strapped British households is expected to be illustrated this week by official figures to be released by the Office for National Statistics on Tuesday, followed by labour market data the next day which are expected to show wage growth stagnated while unemployment continued to fall. City economists are forecasting that the consumer price index rose at an annual rate of 2.7 percent in July, up from 2.6 percent in June. The figures will bit.ly/2vWmnhI The Telegraph - A "Japanese fungus" which is resistant to drugs has spread to at least 55 hospitals across the UK, public health officials have warned. National Health Service trusts have been ordered to carry out deep cleans of all affected areas after more than 200 patients were found to be infected or carrying the potentially fatal pathogen. bit.ly/2vDLYJU - J Sainsbury Plc's is shelving making a 130 million pound ($168.42 million) bid for convenience chain Nisa until UK's competition watchdog has ruled on Tesco's 3.7 billion pound ($4.79 billion) takeover of Booker in late October, according to insiders. bit.ly/2vDgwLL Sky News - British Government will propose a new UK-EU customs union as an interim measure to avoid a "cliff-edge" for manufacturers after Britain leaves the bloc. The proposal is contained in the Government's first "future partnership paper", published on Tuesday by the Department for Exiting the European Union. bit.ly/2vDEXbO - Uber Technologies Inc users will be able to leave drivers a tip via the ride-hailing company's smartphone app - but could also now be charged for keeping cabs waiting. The firm has announced a number of changes aimed at appeasing drivers, including in the UK where it has fought drivers claiming an entitlement to minimum pay and a holiday wage. bit.ly/2vDutJy The Independent - Uber has been accused by the Metropolitan Police of failing to report one of its drivers accused of sexually assaulting passengers. ind.pn/2vCW3GR
One quarter after virtually every hedge fund loaded up on one or more of the six most influential tech stocks in the U.S stock market, Facebook, Apple, Amazon, Netflix and Google - a handful of stocks roughly responsible for half the market's YTD gains - the love affair with FAANG continued, albeit far less passionately, with quite a few cases of "buyer's remorse" emerging. According to an analysis by Reuters, closely-watched U.S. hedge fund managers were generally bearish on FAANGs in Q2, with eight prominent investors in aggregate cutting or liquidating 18 stakes in the companies, according to the latest 13-F dump. Among those who had chilled on the tech space, were Coatue Management, Omega Advisors, Third Point, Tiger Global Management, Appaloosa Management, Paulson & Co, Soros Fund Management and Greenlight Capital, who in aggregate slashed 16 stakes, sold two stakes, increased six stakes, opened two new stakes, and maintained two positions in the so-called FAANG stocks in the three months ended June 30. Some examples: Dan Loeb's Third Point increased its stake in GOOGL by 120,000 class A shares to 575,000 and increased its position in Facebook by 500,000 class A shares to 3.5 million as of June 30. On the other hand, Leon Cooperman's Omega Advisors took a more bearish stance overall and cut its stake in Facebook by 26,700 class A shares to 236,200. It also cut its stake in Netflix by 12,700 shares to 65,000 shares and trimmed its stake in Amazon by 8,900 shares to 10,500 shares. Omega kept its stake in Alphabet of 158,835 class A shares unchanged. Soros Fund Management sold its entire stake in Alphabet of 1,300 class A shares, cut its stake in Facebook Inc by 161,373 class A shares to 476,713, sold its entire stake in Netflix of 131,966 shares, but took a new stake in Amazon of 7,500 shares. Chase Coleman's Tiger Global - a pioneer in tech investing - cut its stake in Amazon by 110,120 shares to 1.2 million shares and trimmed its stake in Netflix by 52,600 shares to 376,400. Philippe Laffont’s Coatue Management trimmed its stake in Netflix by 17,909 shares to 3 million shares and cut its stake in Apple by 46,060 shares to 2.9 million shares. David Einhorn’s Greenlight Capital also cut its Apple position by 42,400 shares to 3.9 mln shares. John Paulson unimaginatively named hedge fund took a new stake of 12,300 shares in Apple. On the bullish side, most "balls to the wall" was David Tepper, whose Appaloosa Management increased its stake in Apple by 325,000 shares to 625,000, raised its Alphabet position by 110,000 shares to 585,000 - the fund's second largest position at roughly $531MM as of Q2 - and boosted its Facebook holdings by almost 450k shares to 2.356 million shares. However, Appaloosa's most bullish bet was a massive, 3.6 million new share position in Alibaba, equal to over $520MM as of June 30. As a reminder, in Q2 all of the FAANG stocks rose in the second quarter, with Alphabet surging the most, by 9.7% and Apple the least at just 0.3%. Judging by the move in the third quarter, in which all of the FAANG stocks have continued their ascent, with Netflix gaining the most at 14.5% and Alphabet the least at 1%, some of those who sold were likely dragged right back in. Below, courtesy of Bloomberg, is a breakdown of some key moves by marquee hedge funds during the second quarter: ADAGE CAPITAL Top new buys: BCR, EMR, CBS, LMT, NDSN, DXC, KGC, GDDY Top exits: OGE, JCI, EQT, MPC, SQM, RF, TMUS, LII, RBC, AGR Boosted stakes in HON, DOV, DHR, ABX, SPR, COF, CMCSA, GOOG, AERI, NOC Cut stakes in DE, DIS, CC, GD, ITW, TIF, BKH, JAZZ, AAPL, FOXA APPALOOSA MANAGEMENT Top new buys: BABA, DG, SYK, ETE, LB, WFC, CX Top exits: RF, PFE, MYL, TEVA, SYMC, CHTR, MT, UAL, GLBL, X Boosted stakes in MU, GOOG, WDC, FB, AAPL, URI, TMO, UNH, DAL Cut stakes in LUV, GM, AGN, KMI, WPZ, HCA, NUE, BSX, MHK, PNC BAUPOST GROUP Top new buys: CAR, SRUN, SRC Top exits: INVA, MCK, SYT, ABC Boosted stakes in SYF, AR, ESRX, QRVO, CAH, PRTK, FWP Cut stakes in CACC, LNG BERKSHIRE HATHAWAY Top new buys: SYF, STOR Top exits: GE Boosted stakes in BK, GM, AAPL Cut stakes in IBM, WFC, WBC, SIRI, UAL, AAL, DAL BLUE HARBOR Top new buys: INCR, AXTA, COMM, CLNS Top exits: AKAM Boosted stakes in OTEX, ADNT, SPY, FFIV, RDC Cut stakes in BWXT, AVT, AGCO, XLNX, LAZ, IWM BRIDGEWATER ASSOCIATES Top new buys: GLD, CHK Top exits: DIS, CVS, SPLS, MU, CTL, AET, X, DISH, JCP, WMT Boosted stakes in HYG, RL, NFX, SWN Cut stakes in ENDP, CLF, IPG, UPS, PBR, COP, BP, KORS, CVX, XOM COATUE MANAGEMENT Top new buys: SHOP, NOW, CRM, CGNX, ON Top exits: JPM, ZAYO, ILMN Boosted stakes in BABA, TWLO, ALGT, NTRI, CMCM Cut stakes in BAC, EBAY, DIS, APPL, NTNX CORVEX MANAGEMENT Top new buys: CTL, TWX, JBLU, FDX, SBNY, BTU, CFCO Top exits: YUM, YUMC, BLL, CRM, PX, CL, HUM, ETFC, JACK, PRXL Boosted stakes in EGN, SIG, GOOGL, BAC Cut stakes in BIO, MDCO, PAH, RF, FB, NOMD DUQUESNE FAMILY OFFICE Top new buys: BABA, MRK, NOW, YUMC, DAL, V, MA, SBAC, CCI Top exits: LYB, ABX, BAC, AA, AEM, PXD, COG, LNG, SYMC, TMUS Boosted stakes in FB, GOOGL, MSFT, AMZN, CMCSA, PCLN, JD, CTRP, PYPL, EA Cut stakes in PTC ELLIOTT MANAGEMENT Top new buys: NXPI, BTU, NORD, GIMO, WYN, ATHN, FMSA, ARCC Boosted stakes in ECA, MPC, AA, RYAAY, EGN, ACAD, GPI, SAH, ABG, NRG Cut stakes in LOGM, CJ FIDELITY MANAGEMENT Top new buys: EEX, YEXT, FPH, ATUS, NCSM Top exits: GCO, VR, SYT, NYRT, FCN Boosted stakes in PYPL, BABA, GOOGL, UNH, FB Cut stakes in APC, AAPL, CMG, TJX, NXPI GREENLIGHT CAPITAL Top new buys: HPE, TGNA, ADNT, TPX, CARS, NYRT Top exits: TWX, SYT, CI, IAC, ALR, TPH, FMC Boosted stakes in PRGO, MYL, DDS, MU, DSW Cut stakes in CC, PVH, FRED, QHC, AAPL, MON HIGHFIELDS CAPITAL MANAGEMENT Top new buys: HDS, FOXA, GS, KO, NVDA, DLTR, MCD, FE Top exits: CVS, SYT, MPC, IAC, KMI, YPF, BTE Boosted stakes in TWX, TEVA, TV, FDX, MON, WBA, VER, TGT, HCA Cut stakes in AMT, CCE, GOOG, TSLA, GOOGL, APO, VOD, ICE, NAK, HLT ICAHN ASSOCIATES Boosted stakes in IEP, FCX Cut stakes in PYPL, AIG, XRX JANA PARTNERS Top new buys: EQT, ZBH, P, FDC, MOH, CDK, PF, SFM Top exits: WLTW, AET, ADS, SHPG, BMY, WBMD, ACAD, SNAP, BMRN, GWPH Boosted stakes in WFM, HPE, HDS, NUVA, ZAYO, DERM Cut stakes in UHS, DOW, CAG, SHW, CRM, HAWK, TIF, LBRDK, CTSH, LADR LANSDOWNE PARTNERS Top new buys: PYPL, WDC, FSLR, HCC, VXX, CAFD, BTU, SWK, ENIC Top exits: WFC, SNAP, GE, NFLX, TGP, TGS, ALGN, TSLA, SPWR Boosted stakes in TSM, DAL, BAC, JPM, LB, C, HAS, CNQ, JCI, BABA Cut stakes in DIS, CMCSA, FB, NKE, IR, ETN, UTX, ADNT, HON, SYY LONE PINE CAPITAL Top new buys: MSFT, ORLY, MA, ICE, TRU, NOW, UNH, ATUS, AAP, CRM Top exits: NKE, EA, V, PCLN, DLTR, RICE, COMM, SHPG, ALGN, ECA Boosted stakes in BABA, Q, EXPE, CMCSA, FLT, FB, ANET, SNAP, TMUS, TV Cut stakes in CHTR, SYMC, CSX, ALB, ADBE, EQIX, ULTA, ATVI, STZ LONG POND CAPITAL Top new buys: DHI, SLG, VER, RF, BXP, HLT, LSI, ATH, FOR Top exits: ESS, GGP, REG, LEN, TPH, CZR, INXN, UDR, QCP, BK Boosted stakes in AIV, PGRE, SRC, WFC, RPAI, CLGX, TCO Cut stakes in EQR, MSG, LOW, FCE/A, MAC, LQ MARCATO CAPITAL Top new buys: NTCT, CFCO, RYAM Top exits: SIG, FC Boosted stakes in DECK, TEX, RCII, LQ, BWLD Cut stakes in AVT, BID, GT, ERI, TPHS, IAC MAVERICK CAPITAL Top new buys: TAP, DOW, MGM, QCOM, FIS, CHTR, V, ATUS, MIK Top exits: NWL, KHC, SBAC, FLT, MYL, CMCSA, NVDA, HSY, MELI, FFIV Boosted stakes in DLTR, EVHC, IPXL, WYNN, LVS, UHS, FB, SHPG, MCD, WTW Cut stakes in ADBE, PFE, COMM, AET, CI, USFD, VMC, WCN, ORLY, ANDV MELVIN CAPITAL Top new buys: GOOGL, WYN, QSR, YUM, FLT, TTWO, PANW, EDU, MHK Top exits: AAP, FOXA, FDX, DLTR, CALM, NTES, SKX, MAS, HDS, DFRG Boosted stakes in BABA, STZ, AMZN, V, ADBE, WYNN, KMX, LOW, AOBC, LAUR Cut stakes in MCD, FB, SHW, DE, COO, BURL, THO, RLGY, SUM, CASY MOORE CAPITAL Top new buys: MON, WMT, CDEV, AMT, SRUN, PVH, YNDX, QTS, SBAC Top exits: GS, MS, EXPE, CTRP, PCAR, SNAP, MCD, DLTR, CMG, WLK Boosted stakes in GOOGL, JD, UTX, MLCO, CRM, BURL, IT, VMC, CCL Cut stakes in MSFT, BAC, AAPL, ATH, HD, XLF, AER, BKD, PLYA, SYF OMEGA ADVISORS Top new buys: MXL, OCN, CVA, LB, TRN, ADSK, AAL, ETE, NCLH Top exits: WBA, TPH, WPZ, HUM, P, FL, IBKC, CLF, FGL, AA Boosted stakes in MSFT, SBGI, VVV, NBR, ZNGA, PVH, GIMO, FRAC, WPX, SYF Cut stakes in HRG, ASPS, ARRS, HES, LOW, BERY, AMZN, AIG, NRZ PERSHING SQUARE Top new buys: ADP Top exits: APD Boosted stakes in HHC Cut stakes in MDLZ POINT72 ASSET MANAGEMENT Top new buys: JNJ, IGT, PAGP, WMT, LMT, DHR, LLL, CAH, BKD, MSG Top exits: BDX, BCR, JCI, MEOH, CTSH, APA, COST, ESRX, FTI, GPC Boosted stakes in BIIB, GOOGL, CMCSA, TTWO, GOOG, EA, V, AMZN, OLN Cut stakes in FB, AAP, MCD, DIS, TWX, EOG, CLR, PK, ANDV, MYL POINTSTATE CAPITAL Top new buys: C, MGM, CCI, SBAC, BTU, DAL, ADBE, BA, TSRO, REGN Top exits: ECA, VIAB, FANG, PNC, PE, HON, CRM, URI, ALKS, OLN Boosted stakes in BABA, COG, AMZN, CMCSA, BAC, BMA, ETN, RICE, WMB, AGRO Cut stakes in DOW, LYB, WFC, STZ, TMUS, CSX, EA, CFG, VRTX, BIIB RENAISSANCE TECHNOLOGIES Top new buys: PFE, MCK, ADSK, AIG, WDAY, T, WFC, KHC, AXP, NKE Top exits: PCLN, TSLA, TEVA, AMD, CVS, MYL, REGN, TAP, ESRX, INFO Boosted stakes in BMY, DPZ, NVDA, EA, CL, LLY, GSK, GILD, SBUX, AMGN Cut stakes in CMCSA, FB, AET, MRK, PX, UNH, SHW, SIRI, INTC, NFLX RUANE CUNNIFF & GOLDFARB Top new buys: SPSC, APPF Top exits: PRGO, CHTR, AMG, MCD, NVO, GHC, CVS, MSFT, ACGL, JNJ Boosted stakes in OMC, PCLN, FCAU, GOOGL, V, CACC, WAT, GOOG, KMX Cut stakes in FAST, BIDU, ORLY, BRK/B, BRK/A, TJX, WUBA, PRI, CMG, COF SANDELL ASSET Top new buys: ALR, GNCMA, WFM, BCR, TWX, BABA, TIVO, PCRX, BKS Top exits: BOBE, WGL, CIT, VIAV Boosted stakes in MGI, NXPI, BRCD, LVLT SOROS FUND MANAGEMENT Top new buys: EQT, ATUS, GIS, K, PAGP, BCR, TRGP, CARS, NEP Top exits: AGRO, HPE, SYMC, CJ, SUPV, COP, GS, NFLX, VMW, CTXS Boosted stakes in VIAV, MMYT, KHC, EPC, BABA, NOMD, TWX, ATGE, TIVO, ALLT Cut stakes in LRCX, WMB, TMUS, CRC, FB, SBAC, TTWO, LBRDK, SNAP STARBOARD VALUE Top new buys: FCE/A, WBMD, ILG, SRC, PHG Top exits: TRCO, CL, MYCC, PNK Boosted stakes in HPE, FTNT, AAP Cut stakes in NSP, BCO, CTSH, BAX, ABCO, QTM TEMASEK Top new buys: NFX, GRA, AVGO, KREF, NETS, CELG, AMGN, BIIB, MON Top exits: SNAP Boosted stakes in RDS/B, REGN, ALXN, UNVR Cut stakes in GILD, ATH, AMRS, TMO, PTLA TIGER GLOBAL Top new buys: NETS, ATUS, JCP, OKTA, CLDR Top exits: NTES, MELI, ELF Boosted stakes in MSFT, TDG, APO, FLT, CMCSA, AWI Cut stakes in CHTR, FCAU, DPZ, GOOG, GOOGL, FB, QSR, NFLX, ONDK, AMZN THIRD POINT Top new buys: BLK, BABA, NXPI, VMC, ALXN, FMC, BMA, EQT Top exits: JPM, CRM, QCOM, ZAYO, RICE, CE, PXD, AA, NOMD, SNAP Boosted stakes in GOOGL, FB, BAC, ANTM, PE, RSPP, TWX, DHR, DOW, HPE Cut stakes in CHTR, SHW, HUM, MHK, STZ, HON, GD, BAX TRIAN FUND Boosted stakes in BK, PNR, PG, SYY, GE Cut stakes in MDLZ, WEN TUDOR INVESTMENT Top new buys: FB, TRCO, FICO, CACQ, DISH, PCLN, GOOG, DXC Top exits: SYT, BIVV, THS, BOBE, MBLY, CFG, CTAS, KEY, CB, MMC Boosted stakes in GOOGL, AMZN, SPY, BCR, LVLT, AKRX, IAC, SEE, UNP Cut stakes in DVA, ZBH, TSS, UNH, PCRX, FIS, BABA, NDAQ, EW, RTN VALUEACT Top new buys: KKR Boosted stakes in STX, AFI Cut stakes in MSFT, CBG, WLTW, BIVV, NTCT VIKING GLOBAL Top new buys: WFC, APC, AFL, BABA, TDG, MOH, RJF, FLT, NSC, LOW Top exits: GOOG, SCHW, JPM, ICE, BIIB, DIS, UTX, CNC, GPOR, WDC Boosted stakes in V, CRM, PH, JAZZ, LYB, NUVA, AVXS, XRAY, CALA, HDB Cut stakes in FB, DOW, WBA, JD, NFLX, GOOGL, MSFT, DE, AMZN, ECA Source: BBG
Authored by Mac Slavo via SHTFplan.com, Anyone putting money in the stock market at this point should have their head examined. The fact that the stock market had reached a record high for the ninth day in a row should be enough for any rational person to see that we’re in a bubble of massive proportions. But there’s also the fact that all of the big players in the investment community are backing out of stocks like there’s no tomorrow. Sovereign wealth funds are pulling their money out of stock markets in developed countries, corporate insiders are selling stocks in their own companies, and infamous investment companies like Goldman Sachs are admitting that there’s a 99% chance that the stock market won’t keep rising like this in the near future. Berkshire Hathaway, the 7th largest company in the S&P 500, is sitting on a $100 billion dollar pile of cash that grows year after year, because as the stock market climbs to new heights, there aren’t many attractive investments left. You can’t buy low and sell high when there are no lows, and that should say a lot about current state of the economy. The latest damning report on the stock market comes from Barry James, the president of James Advantage Fund. In a recent interview with CNBC he compared the global market to Yellowstone National Park. “It’s beautiful, but it has a volcano underneath it.” “Even though [the market] looks beautiful - setting new highs, good momentum, and earnings have been coming in strong, [there are] things to worry about,” explained the portfolio manager recently on CNBC’s “Futures Now.” Aside from the rise of passive investing, which James says is creating a “herd mentality” among investors, he also believed that the earnings picture isn’t telling the whole story. “In the 18 months ending in June, we saw companies that had no earnings, they were losing money, outperform those that were making money,” said James. He highlighted many stocks’ performances this year may not be reflective of their revenues. And when you look at the data behind these stocks, you’ll find that we’ve been down this road before, and it’s not pretty. Much like Goldman Sachs’ prediction that the market simply cannot sustain itself at this rate, James sees evidence that we’re in for a crash sometime in the next year. But the biggest threat to the market rally, according to James, is the current valuation levels of stocks. “We went back to 1994 and researched team data that said [that if we look at cyclically adjusted P/E, one out of two times] the market was down in the next 12 months, and about one out of three times it was down more than 10 percent,” he said. The stock market has defied all expectations for years. We’re in the one of the longest bull markets in history, which has also coincided with some of the worst economic growth numbers ever recorded, and that obviously isn’t sustainable. Every day that passes, the odds of our economy crashing go up a little more, and the investors who know this are getting out while they still can.
Insider.pro Холдинг Berkshire Hathaway сообщил, что на конец второго квартала наличные средства на счету компании составили чуть менее 100 млрд долларов. Berkshire не выплачивает дивиденды и редко проводит обратный выкуп акций, поэтому Уоррен Баффетт должен будет найти способ инвестировать эти средства. Что отталкивает легендарного инвестора от покупок?
It took stocks only a few minute to "price in" the latest political shock out of Washington, and as of this morning Emini futures no longer care that Mueller has a grand jury, trading 0.08% in the green with European stocks and Asian shares all little changed as investors await the looming July jobs report, which is expected to show a slowdown in hiring from 222K to 180K but will have little impact on either the Fed's thinking or the market. Stocks, gold and most metals headed for a fourth week of gains on Friday, as fresh political woes for U.S. President Donald Trump and the prospect of a trade war with China kept the dollar depressed ahead of payrolls. The Bloomberg Dollar spot index inched lower for a third day, hovering near the weakest in 15 months, while cable rose to $1.3154, the euro hit a fresh two-and-a-half year high against the dollar and oil retreated. Global stocks were just barely in the green this morning with the MSCI All-Country World Index rising less than 0.05%. In key overnight macro moves, the Aussie dollar gained against the greenback despite RBA warnings about currency’s strength, while the USD/JPY fell as much as 0.2% to 109.85, the weakest since June 15, before paring decline to 110.03. In Asia, Japan’s Topix index slid 0.2% and Australia’s S&P/ASX 200 Index lost 0.3%. South Korea’s Kospi was up 0.5 percent after sliding 1.7 percent on Thursday. Japan's Nikkei ended the week little changed, dropping 0.4 percent on Friday as a stronger yen weighed. Wall Street was expected to start marginally higher, having seen the Dow index break through 22,000 points this week. Hong Kong’s Hang Seng Index was little changed, while the Shanghai Composite Index swung between gains and losses. European markets got off to an underwhelming start, with Britain's FTSE 100, Germany's DAX and France's CAC 40 all lower. The FTSE was on course for its best week in two months, boosted by the latest tumble in the pound. The Stoxx 600 traded sideways as Swiss Re AG’s profit drop weighed on insurers. The rising Euro, which ING now expects to rise as high as 1.20 in the next 4 weeks, has capped Stoxx gains in recent months, on concerns it will pressure exporter earnings. The U.K.’s FTSE 100 Index gained less than 0.05 percent to the highest in more than a week. Germany’s DAX Index jumped 0.1 percent. The dollar index, which has just recorded its worst run of monthly losses since early 2011, was 0.1 percent lower at 92.766 on the day and about 0.6 percent during a week in which it fell to a 15-month low of 92.548. "We think things are overdone in terms of negative sentiment around the dollar," said PineBridge Investments fund manager Hani Redha, quoted by Reuters. "Overall we think global growth is going to be quite solid but we think the leadership is going to change back towards the U.S.," he added, saying Trump was also likely to get at least some fiscal stimulus measures through in the coming months. As SocGen's Kit Juckes writes this morning, the US Treasury market is heading towards today's non-farm payroll data with 10s at 2.23%, in the bottom half of their 2.12-2.42 range. The RBA sees lower inflation thanks to the AUD's rise to date and a threat to growth from further appreciation, Japanese wages fell and even smoothed show the same lack of wage growth as we see everywhere, despite a tightening labour market. Just taking those three bits of information I get a now-familiar snapshot of the world. Anchored US rates and yields will make sure that capital goes on flowing out of dollars and into anything that's perceived as more interesting. Other central banks will grumble (at the very least) about the weaker dollar trend and in Japan, the need to reboot inflation expectations remains as clear as ever, the difficulty of doing so likewise, and the danger that anchored US yields drag USD/JPY down and is pretty clear too. Previewing today's payrolls report, the SocGen strategist writes that with consensus forecasts of +180k in NFP an 2.4% in average hourly earnings, "the BOJ, RBA and the ECB for that matter, will be hoping for an upside surprise. An NFP surprise would provide some relief, a huge upside surprise in wage growth would really help them a lot. That doesn't make it likely, sadly." WTI fell below $49, extending its weekly loss with the Baker Hughes rig count due later. "It was very natural on the technical side that we should see consolidation around the 200 day moving average," Torbjorn Kjus, chief oil economist at DNB Bank, told Bloomberg. Brent is trading below 200-day MA Friday after moving above that level last week and settling above the marker for past 2 sessions; WTI also below Friday In rates, Europe's 10-year benchmark government bond yield and U.S. equivalents were pinned near one-month lows of 0.45 and 2.23% respectively amid the U.S. political uncertainty. U.S. yields have been falling for most of 2017 as the President's travails have cooled expectations for growth and inflation. 10-year gilt yield +1bps to 1.16% after Bank of England kept rates on hold Thursday. In commodities, West Texas Intermediate crude dipped 0.8 percent to $48.66 a barrel, the lowest in a week. Gold was steady at $1,269 an ounce and set to score and modestly weekly rise, which will be its fourth in a row. Copper advanced 0.2 percent to $2.88 a pound. Market Snapshot S&P 500 futures up 0.05% to 2,473 STOXX Europe 600 down 0.05% to 378.75 MSCI Asia up 0.01% to 160.92 MSCI Asia ex Japan up 0.2% to 529.07 Nikkei down 0.4% to 19,952.33 Topix down 0.2% to 1,631.45 Hang Seng Index up 0.1% to 27,562.68 Shanghai Composite down 0.3% to 3,262.08 Sensex down 0.04% to 32,225.85 Australia S&P/ASX 200 down 0.3% to 5,720.58 Kospi up 0.4% to 2,395.45 EUR/USD: +0.1% to 1.1880 USD/JPY: steady at 110.09 GBP/USD: +0.1% at 1.3154 German 10Y yield rose 0.3 bps to 0.456% US 10-year yield +1bp to 2.23% Italian 10Y yield fell 2.6 bps to 1.697% Spanish 10Y yield rose 1.6 bps to 1.468% Brent Futures down 0.8% to $51.62/bbl Gold spot up 0.06% to $1,269.40 U.S. Dollar Index down 0.1% to 92.75 Top Overnight News Payrolls May Show Stable Economy; Grand Jury Issues Russia Subpoenas; HNA Says It’s Not Raising Funds in N.Y. Toyota and Mazda to sell stakes to each other, worth about 50b yen each Special counsel Robert Mueller is using a federal grand jury in Washington to help collect information as he probes Russia’s meddling in the 2016 election and possible collusion by Trump campaign associates Pearson Plc made good on a pledge to cut costs, slashing 3,000 jobs and cutting its interim dividend to preserve cash as it works on a turnaround of its struggling education business Allianz SE and Canada Pension Plan Investment Board have agreed to buy a 20 percent stake in Spain’s Gas Natural SDG SA’s gas distribution business for 1.5 billion euros ($1.8 billion) The world’s biggest pension fund posted its fourth-straight quarterly gain, as global stocks rose and a decline in the yen against both the dollar and the euro helped boost the value of its overseas investments Teva Pharmaceutical Industries Ltd.’s warning to investors that it may breach debt covenants if cash flow weakens triggered its biggest bond selloff on record “Passive investing is in danger of devouring capitalism,” billionaire Paul Singer wrote in his firm’s second-quarter letter dated July 27 BOE Is Said to Find Error Behind Spike in U.K. Mortgage Arrears Rosneft Aids Venezuela’s State Oil Producer With Prepayment Icahn-Backed Change in Biofuel Rule Is Said to Near EPA Rebuff McDonald’s Japan July Sales Helped by Desserts, Hawaiian Burgers Teva Debt Sells Off After Warning May Breach Covenants Asian equity markets traded mixed, with the region indecisive ahead of key risk NFP data and after a lacklustre close in US where energy underperformed and the Russian probe seemed to have stepped up a notch. This saw early losses in ASX 200 (-0.2%) and Nikkei 225 (-0.3%), with financials the underperformer in Australia after big 4 bank CBA was accused of breaches to anti-money laundering and counter¬terrorism regulations. Shanghai Comp (+0.2%) and Hang Seng (+0.1%) were slightly positive after the PBoC upped its daily liquidity operations, although upside was capped as this still amounted to a net weekly liquidity drain. RBA Statement on Monetary Policy states recent AUD rise had modest effect on GDP and inflation forecast. Says: Holding policy steady consistent with growth and inflation target. Recent increase in AUD has modest dampening effect on economy. Further strength in AUD would reduce economic growth and inflation. RBA maintains inflation forecast for 2017 and 2018 at between 1.5%-2.5% for both, 2019 forecast kept at 2.0%-3.0%. Lowers GDP forecast for 2017 to 2.0%-3.0% from 2.5%-3.5%, 2018 forecast maintained at 2.75%-3.75%, while 2019 forecast was increased to 3.0%-4.0%. Top Asian News China Hedge Fund Says Most ‘Violent’ Deleveraging Phase Over China Millionaires in Jeans Spur Wealth Manager Push Abroad Abe’s New Cabinet Shows Continuity in Japanese Economic Policy Summit Announces $1 Billion LNG-to-Power Project in Bangladesh Indonesia Sees Room to Ease If Inflation, Forex Rate Manageable JT to Buy Karyadibya Mahardhika for $1b Enterprise Value China Bulls’ Resolve Tested as Stocks Struggle to Pass Key Level Indonesia Says Google Agrees to Monitor Negative YouTube Content Hong Kong Stock Rally Buoyed by Bullish Profit Projections The majority of EU bourses have come off worst levels, and now trade in marginal green territory. The biggest movers throughout the European morning have been UK Home Building names, with an overnight article from "PropertyWeek" circulating, which states that the Government is reviewing its 'Help to Buy' Scheme. Taylor Wimpey (TW LN) and Perisimmon (PSN LN) shares were both down over 5% for the session, as the former generated 45% of its sales from the Scheme. Later reports from a UK government spokesperson stated that it is incorrect to infer that the government are set to cancel the help to buy scheme, did see many of the loses retraced. NFP Friday trade has been evident in fixed income. markets today, with the 1 Oy bund holding its slim range. Underperformance has been seen in peripherals, with delays relaying slight profit taking in BTPs and Bonos. Corporate issuance once again came into fruition today, with Verizon printing AUD 2.2bn "kangaroo" bond, with BAT mandating banks for a multi-currency and multi-tranch bond deal. Top European News BOE Says Companies Need Clarity as Brexit Crimps Investment German Factory Orders Jump in Sign of Robust Economic Growth Allianz Buys LV= Unit in Deal Valued at as Much as $1.3 Billion RBS’s Investment Bank Drives Second-Quarter Profit Beat Constellium Is Said to Weigh Options After Takeover Interest Swiss Re Drops as Earnings Succumb to Market-Pricing Pressure U.K. Housebuilders Fall After Reports of ’Help to Buy’ Review BOE Is Said to Find Error Behind Spike in U.K. Mortgage Arrears Rosneft Aids Venezuela’s State Oil Producer With Prepayment In currencies, GBP has seen the majority of volatility this morning as EUR/GBP and GBP/USD both briefly broke out of the post EU trading range. Elsewhere, overnight volatility was seen in AUD, following the release of the RBA's statement of Monetary Policy, with no fears of an overvalued currency, AUD/USD begun to gain some bullish pressure, we have continued to see buying following the bounce of August's low, with bulls now looking to retest 0.80. USD & CAD will both await their jobs reports due at 13.30BST. However, it is worth noting the greenback did once again see concerning news as political tensions continue with US Special Counsel Mueller empanelling a Washington Grand Jury in Russia probe. In commodities, Asian oil demand has been seen to shift back to the Middle East and Russia in Q4 following the recent rise in Brent. Elsewhere, OPEC has delivered a record high adherence to its oil cut in 2017, struggles do remain with Iraq and the UAE yet to show how they can meet their targets. Trade yesterday saw the USD 50.00/bbl level hold once again and the rejection has leaked into trade today, with WTI now trading around USD 48.80. Precious metals all trade in marginal positive territory, likely abiding to the risk tone following the recent acceleration in the US Russian probe. Looking at the day ahead, Friday is relatively quiet day for data in both Asia and Europe with only German factory orders data for June due and Italy’s retail sales for June. The US will be in greater focus as the July nonfarm payrolls number is due (180k expected) along with other labor market data. Alongside that, we will also get the trade balance reading for June. Onto other events, the Baker Hughes US rig count will also be out. Notable US companies reporting include: Cigna, Berkshire Hathaway and CBOE. Notable European companies reporting include: Allianz, Swiss Re and Erste Group. US Event Calendar 8:30am: Change in Nonfarm Payrolls, est. 180,000, prior 222,000; Change in Private Payrolls, est. 180,000, prior 187,000 Change in Manufact. Payrolls, est. 5,000, prior 1,000 Unemployment Rate, est. 4.3%, prior 4.4% Average Hourly Earnings MoM, est. 0.3%, prior 0.2%; Average Hourly Earnings YoY, est. 2.4%, prior 2.5% Labor Force Participation Rate, prior 62.8% Underemployment Rate, prior 8.6% 8:30am: Trade Balance, est. $44.5b deficit, prior $46.5b deficit DB's Jim Reid concludes the overnight wrap Hello Payrolls Friday. On a day we pore over how many people have been employed and how much they've been paid in the US, I'm still trying to come to terms with the €222 million buy out clause activated for the transfer of Brazilian Neymar from Barcelona to PSG. This is broadly equivalent to the annual GDP of the equatorial Marshall Islands (population over 53k) which is around the 190th biggest nation in the world. If you include his wages over a 5 year contract you can nearly double this and you get close to the annual GDP of Tonga - home to over 100k people. The Marshall Islands aren't a hot bed of economic activity although I did note that their income tax rates are 8% and 12% and corporation tax is at 3%. Anyone coming with me to set up a company? Although make sure you can afford your current buy-out first though. Back to US jobs and consensus expectations are for a 180k gain (222k previous) today. Our US economists project a more optimistic figure of 200k for headline and private payrolls, which they expect to be sufficient to lower the unemployment rate a tenth to 4.3%. However, they note that the July ADP survey and the employment subcomponents of the manufacturing and non-manufacturing ISMs add some downside risks to their forecast as their payrolls model (which uses the first reported values of ADP and the ISM composite employment reading) projects private payroll gains of around 165k. Counterbalancing this risk however is the fact that private payrolls have recently fallen short of the levels implied by ADP and the ISMs, and payrolls (including revisions) have accelerated in the past following similar misses. On other detail aspects of the report, they expect that hours worked should remain steady at 34.5 along with a 0.3% gain in average hourly earnings (AHEs), which would lower the YoY growth rate of the series to 2.4% (with a risk of rounding up and remaining at 2.5%). However, as long as there is no material surprise in either direction, they do not expect this month's AHEs to meaningfully impact policymakers' intermediate-term inflation expectations. Finally, the team notes that even if July payrolls fall below their forecast, Amazon's hiring spree this month could result in an upside surprise in next month’s (August) data, which will likely factor more prominently into the Fed's decision process going into the September 20 meeting. So another report where the market will look for any life in inflation and a reason for bonds to sell-off. This report comes on the back of a sizeable bond rally yesterday which seemed to be kickstarted by a relatively downbeat outlook from Mr Carney on a day the BoE cut their growth and wages forecast. Before we review this it's worth highlighting that the Wall Street Journal reported 30 minutes before the US close that Special Counsel Robert Mueller was said to have impaneled a grand jury in the ongoing Russia probe. It led to a small spike lower in risk (see below) into the close and it's another cloud for the Trump presidency to contend with. Back to the BoE. As widely expected, the Bank left rates steady at 0.25% with the number of dissent votes declining from three to two, due to Kristin Forbes’ departure. The Bank reiterated future policy may need to be tightened slightly more than the current market yield curve implies (the first hike is priced in 2H18), but DB’s Mark Wall notes that Governor Carney made no attempt during the press conference to re-price dovish market expectations for this year. In Carney’s opinion, the UK was still experiencing exceptional circumstances ‘and would do so for some time’, with Brexit-related risks to the forefront. The bank has also cut its economic growth projections to 1.7% in 2017 (vs. 1.9% previous) and 1.6% in 2018 (vs. 1.7% previous). Looking ahead, with two new members on the MPC as of the September meeting, our team think it will be difficult for the hawks to gain a majority on the MPC without the support of the Governor. So our team continues to expect the BoE to NOT tighten monetary policy until Brexit related uncertainty has been sufficiently reduced. Post the BOE release, Gilt yields dropped ~5bps in 10 mins of trading and continued to fall to close 9bps lower for the day. The more dovish rates outlook and cautious comments from Carney had a similar impact across most government bond markets with Gilts (2Y: -6bp; 10Y: -9bps), USTs (2Y: -2bps; 10Y: -5bps) and German bunds (2Y: +1bp; 10Y: -3bps) yields mostly notably lower. Elsewhere changes were a bit more modest with Italian BTPs (2Y: unch; 10Y: -2bps) and OATs (2Y: +1; 10Y: -3bp). Turning to currencies there was a fair bit of intraday activity for Sterling after the meeting. It traded as high as 1.1202 in the morning session against the Euro, but then fell to as low as 1.1052 in the hours after the BoE announcement, before closing at 1.1069 for the day (-0.7% for the day). Sterling/USD also had similar intraday trends, before closing down -0.6% for the day. For other currencies, the USD dollar index dipped 0.2%, partly due to the softer ISM non-manufacturing data and the Euro/USD edged 0.1% higher. In commodities, WTI oil fell 1.3% as investors weighed up reports of rising US production against a decline in crude stockpiles. Elsewhere, precious metals were slightly up (Gold +0.1%, Silver +0.2%), copper was flat, but aluminium fell 0.8%. Onto equities, the S&P also had its share of intraday action. The index was trading in a tight range for most of the day, but then fell ~0.3% post the Mueller news and closed -0.2% down for the day. The VIX also responded, rising ~+5.5% around that time to 10.5 but closed a bit lower at 10.44. Elsewhere, the Dow edged up ~+0.1%, breaking another fresh all-time high for the 7th consecutive day. Within the S&P, modest gains in the industrials and utilities sectors were more than offset by losses in energy (-1.3%) and materials (-0.7%). European markets broadly strengthened, the Stoxx 600 edged up 0.1%, the FTSE 100 up 0.9% (helped by the fx move) and the CAC (+0.5%), but the DAX fell 0.2%, impacted by Siemens (-3%). Away from the markets, as noted earlier, the WSJ has reported that Special Counsel Mueller has impaneled a grand jury as part of his probe into Russia’s interference in the US election and possible ties with President Trump’s campaign. A grand jury suggests that the probe has gone beyond investigating what might have happened, to potentially charging people with crimes. Mueller’s office has declined to comment. However, a special counsel to the president (Ty Cobb) added later that he wasn’t aware that Mueller was using a grand jury, but also acknowledged that “…grand jury matters are typically secret…". Elsewhere, US senators have introduced two bipartisan bills aimed at protecting Mueller on concerns that Mr Trump may look to dismiss him. We shall no doubt see more news flow on this in the coming weeks. This morning in Asia, markets are mixed but little changed. The Nikkei is -0.4%, the Kospi recovering slightly (+0.2%) after yesterday’s -1.7% fall, with the Hang Seng flat and China slightly higher on balance. Before we take a look at today’s calendar, we wrap up with other data releases from yesterday. In the US, data was in line to slightly soft. The ISM nonmanufacturing composite for July was below expectations at 53.9 (vs. 56.9 expected; 57.4 previous), which is the lowest level since a similar downward spike in August last year. Digging into the details, new orders index fell 5.4pt to 55.1 and the employment index fell 2.2pt to 53.6. However, even after factoring in the employment indices from the twin ISM reports together, DB’s economist believes the employment indicators are still consistent with decent payrolls growth (~200k per month). Elsewhere, factory orders for June was in line at 3%, initial jobless claims for July was slightly lower than expectations at 240k (vs. 243k) and continuing claims was at 1,968k (vs. 1,958k expected). The final durable goods order stat for June was reported higher at 6.4% (vs. 0% expected). Onto Europe and the June Eurozone retail sales were higher than expectations at 0.5% mom (vs. 0% expected) and 3.1% yoy (vs. 2.5% expected), while UK’s Markit services and composite PMI were also a tad higher than expectations at 53.8 (vs. 53.6) and 54.1 (vs. 53.8) respectively. Elsewhere, the final July services and composite PMI for the Eurozone (-0.1pt vs flash composite), France (-0.1pt) and Germany (-0.4pt) were also released and was slightly lower than the flash PMIs. Looking at the day ahead, Friday is relatively quiet day for data in both Asia and Europe with only German factory orders data for June due (0.5% mom, 4.4% yoy expected) and Italy’s retail sales for June (0.1% mom expected). The US will be in greater focus as the July nonfarm payrolls number is due (180k expected, DB 200k) along with other labour market data. Alongside that, we will also get the trade balance reading for June. Onto other events, the Baker Hughes US rig count will also be out. Notable US companies reporting include: Cigna, Berkshire Hathaway and CBOE. Notable European companies reporting include: Allianz, Swiss Re and Erste Group.
As many traders quietly leave for summer break soaking up even more liquidity as they go, a busy US calendar unfolds in the week ahead, with ISM, PCE price data and, of course, payrolls in the spotlight. Key Events, courtesy of RanSquawk Monday: Eurozone CPI (Jul, P), China Official PMIs (Jul) Tuesday: RBA MonPol Decision, Eurozone GDP (Q2, Initial) Wednesday: ADP, Fed's Mester, Williams speak Thursday: BoE MonPol Decision, Meeting Minutes & Quarterly Inflation Report Friday: US Labour Market Report (Jun), Canadian Labour Market Report (Jun), RBA SoMP In North America, June’s US Labor Market Report headlines the docket next week. Analysts expect the Nonfarm Payrolls headline to print at 187,000, with the unemployment rate expected to tick down to 4.3%, while hourly earnings are expected to remain subdued. The H1 average for the Nonfarm Payrolls release sits at 180,000. Following its latest statement, the Federal Reserve noted that “job gains have been solid, while household spending and business fixed investment have continued to expand.” The main worry is wage growth, which has remained muted, and is perhaps keeping a lid on the Federal Reserve’s hiking cycle at present, as inflation has been kept in check. Friday will also bring the Canadian labour market report for July. Analysts looks for 14,500 jobs to have been added, although they do expect that the unemployment rate will remain steady at 6.5%. Following a string of hot labour market reports the Bank of Canada stated that “the robust labour market” was underpinning economic growth, as it hiked its key interest rate by 25bps at its most recent decision. In front of this specific print, RBC highlight that “July numbers have traditionally been affected by large fluctuations in the education sector; however, these swings have been smaller in the last two years and we assume little impact from education hiring this month.” Looking forwards RBC suggest that “broadly speaking, employment growth is expected to moderate alongside slower – albeit still above-trend – GDP growth.” Other releases of note during the week: Tuesday US ISM manufacturing survey (Jul) Wednesday US ADP Employment Report (Jul) Thursday US ISM manufacturing survey (Jul) Friday Canadian Trade Balance (Jun) Across the G-10 spectrum, announcements from the RBA & BOE will keep FX volatile, even if both banks are expected to remain on hold. Here are the details from Bank of America and RanSquawk, laying out the US summer data bonanza week: We have a busy US calendar ahead, with ISM - both manufacturing and non-manufacturing - PCE price data and Friday's employment report all in the spotlight. Consensus expects July NFP growth around 187k, unemployment holding at 4.3% and wages up 0.3% m/m, but down to 2.4% y/y growth. June core PCE inflation is likely to print only 0.1%, leaving the y/y rate unchanged at 1.4% and the ISM manufacturing index should edge down to 57.0 in July from 57.8. See our US Economic Weekly for full details. In G10 Central Banks: RBA and BOE on hold: The RBA can afford to be patient and any case for normalization of policy will take time to build, with recent AUD strength adding to the case for caution. The RBA will be slower and more gradual than other central banks. In the UK, hawkish expectations for the Bank of England beat a retreat in the face of a smorgasbord of soft data. Expect a 6-2 vote to keep rates on hold and little disagreement with the market rate profile. The Bank of England (BoE) convenes for its quarterly ‘Super Thursday’ event this week, where it will issue its latest monetary policy decision, the minutes from the meeting, and its quarterly inflation report. While almost all of those surveyed expect the BoE to stand pat, analysts at Nomura are looking for a 25bps hike, although they do assign a 40% probably of the Bank remaining on hold. The last decision yielded a surprising 5-3 vote, although Forbes’ (a hawkish dissenter) term has now come to an end. Analysts expect dissenters McCafferty and Saunders to vote for a 25bps hike once again, with focus falling on chief economist Andy Haldane following a hawkish intra-meeting speech. As a result, analysts will focus on whether the vote split is 6-2, or 5-3, with newcomer Tenreyro expected to side with the majority this time out. With UK consumers’ pockets feeling the squeeze of higher inflation Barclays remain “confident that the bank will maintain the monetary status quo over the foreseeable future.” It is probably fair to say that the Bank’s most recent inflation report was a little optimistic, and that the UK’s economic condition has deteriorated in Q2. As a result eyes will fall on the Bank’s growth projections, while the inflation outlook could be driven by a lower trade weighted sterling and a modest recovery in oil prices. The Bank’s assessment of the labour market will also be key as it grows ever tighter, with wage growth remaining subdued. July’s PMI releases will also garner interest. The manufacturing survey is due on Tuesday, while its services counterpart is scheduled to be released on Thursday. In the wake of last month’s surveys Markit noted that “a slowing in services sector growth completed a triple-whammy of disappointing PMI survey readings. Although the three PMI surveys are running at levels that are historically consistent with GDP growing by around 0.4% in the second quarter, it’s clear that the economy heads into the third quarter losing momentum. The indications are that the economy’s resilience is being tested. There are pockets of growth, notably in financial services and business services, but the overall picture is one of business spending, investment and exports failing to provide sufficient impetus to fully offset the consumer slowdown. Given the deterioration in the forward-looking indicators, such as business optimism and order book growth, the risks are tilted towards the economy slowing in the third quarter.” The week ahead in Emerging Markets: There are monetary policy meetings in India, Czech Republic, Romania and Ukraine. We forecast India's RBI to cut 25bp. Czech Republic CNB will likely hike 20bp. Sovereign rating review in Israel and Kuwait. We also get China PMIs. We next look at the global economic calendar on a daily basis courtesy of DB's Jim Reid. Monday we have German retail sales (+0.2% mom expected; +0.5% previous) and UK consumer credit data for June due, followed by the Eurozone unemployment rate (9.2% expected) for June and CPI estimate (+1.3% YoY expected) for July. In the US we will get the Chicago PMI number (60 expected; 65.7 previous), the Dallas Fed manufacturing activity reading (13 expected; 15 previous) for July and June pending home sales (1% expected). Tuesday kicks off in Asia where we will get the Caixin China manufacturing PMI reading and the final Nikkei Japan manufacturing PMI reading for July. In Europe we will get July data for the UK Nationwide House Price index, followed by a first look at the remaining manufacturing PMIs out of Europe and the final July manufacturing PMIs for France, Germany and the Eurozone as a whole. We will also get the advance estimate for Q2 Eurozone GDP. In the US we will get personal income and spending numbers for June and the ISM manufacturing PMI for July. Wednesday is a quiet day in both the Europe and the US with no real data of note outside of ADP and the Eurozone PPI. Thursday’s calendar will round out July PMI data for the week. In Asia we will get the July composite and services PMI numbers for China (Caixin) and Japan (Nikkei). In Europe we get the July PMIs with the final services and composite PMIs for France, Germany and the Eurozone due as well as a first look at some of the same data for the rest of Europe. Thereafter all focus should shift to the BoE policy meeting. Over in the US we should also get jobless claims data followed by the ISM non-manufacturing composite for July. Thereafter we will get factory orders data as well as the final readings for durable and capital goods orders for June. Friday is relatively quiet day for data in both Asia and Europe with only German factory orders data for June due. The US should be in greater focus as the July payrolls number is due along with other labour market data. Alongside that we will also get the trade balance reading for June. Other notable events: on Tuesday, trade ministers from the BRICS countries will meet in Shanghai. Then Wednesday, the Fed’s Mester will speak at a Community banking conference and the Fed’s Williams will speak in Las Vegas on monetary policy. For Thursday, ECB will publish its economic bulletin and the Baker Hughes US rig count will out on Friday. Finally, notable US companies due to report include: Apple, Pfizer, Tesla, Berkshire Hathaway. Closer to home, we also have HSBC, Heineken, BP, ING Groep, Siemens, BMW and Swisss Re due to report. * * * Finally, here is Goldman focusing on the US with key events and consensus estimates for every event: The key economic releases this week are the personal income and spending and ISM manufacturing reports on Tuesday, and the employment report on Friday. There are a few scheduled speaking engagements by Fed officials this week. Monday, July 31 09:45 AM Chicago PMI, July (GS 58.5, consensus 60.0, last 65.7): We expect the Chicago PMI to moderate to 58.5 following a 7.3pt jump in June to a 3-year high. The index has risen sequentially over the last five months and is likely to remain at a level consistent with solid growth in the manufacturing sector. 10:00 AM Pending home sales, June (GS +0.5%, consensus +1.0%, last -0.8%): Regional contract signings data released so far were mixed in June, and we estimate pending home sales rebounded 0.5%, following an 0.8% decline in the May report. We suspect some of the May weakness reflected the lagged impact of higher mortgage rates, the impact of which may have peaked. We have found pending home sales to be a useful leading indicator of existing home sales with a one- to two-month lag. 10:30 AM Dallas Fed manufacturing index, July (consensus +13.0, last +15.0) Tuesday, August 1 8:30 AM Personal income, June (GS +0.2%, consensus +0.4%, last +0.4%); Personal spending, June (GS +0.1%, consensus +0.1%, last +0.1%); PCE price index, June (GS +0.05%, consensus flat, last -0.1%); Core PCE price index, June (GS +0.14%, consensus +0.1%, last +0.1%); PCE price index (yoy), June (GS +1.47%, consensus +1.3%, last +1.4%); Core PCE price index (yoy), June (GS +1.53%, consensus +1.4%, last +1.4%): We estimate a 0.2% increase in personal income and a 0.1% increase in personal spending (nominal, mom sa) in June. Based on details in the PPI and CPI reports as well as the firmer price-related news in Friday’s GDP report, we forecast that the core PCE price index rose 0.14% month over month in June and was up 1.53% from a year earlier. Additionally, we expect that the headline PCE price index rose 0.05% and was up 1.47% from a year earlier. 09:45 AM Markit US manufacturing PMI, July final (consensus 53.1, last 53.2) 10:00 AM ISM manufacturing, July (GS 56.8, consensus 56.4, last 57.8): We expect the ISM manufacturing index to decline 1.0pt to 56.8 in the July report. Regional manufacturing surveys were weaker on balance in July, with declines in the Empire State, Philly Fed, and Kansas City manufacturing surveys. However, the Richmond Fed and Markit PMI manufacturing surveys both moved higher. On net, our manufacturing survey tracker—which is scaled to the ISM index—fell 0.9pt to 56.8 in July. 10:00 AM Construction spending, June (GS +0.5%, consensus +0.5%, last flat): We expect construction spending to rebound 0.5% in June following a below-consensus May report, which showed declines in both private residential and private nonresidential spending. 4:00 PM Total vehicle sales, July (GS 17.1mn, consensus 16.8mn, last 16.4mn): Domestic vehicle sales, July (GS 13.4mn, consensus 13.0mn, last 12.8mn) Wednesday, August 2 08:15 AM ADP employment report, July (GS +195k, consensus +190k, last +158k): We expect a 195k increase in ADP payroll employment in July, reflecting a boost from the stronger headline payrolls growth in June utilized in the ADP model. We expect an additional modest boost from net strength in the financial and economic indicators also used in the model. The ADP report introduced methodological changes last fall and now offers more details by sector. While we believe the ADP employment report holds limited value for forecasting the BLS’s nonfarm payrolls report, we find that large ADP surprises vs. consensus forecasts are directionally correlated with nonfarm payroll surprises. 11:00 AM Cleveland Fed President Mester (FOMC non-voter) speaks: Cleveland Federal Reserve President Loretta Mester will give the keynote speech at the Community Bankers Association of Ohio’s Annual Convention in Cincinnati, Ohio. 01:30 PM San Francisco Fed President Williams (FOMC non-voter) speaks: San Francisco Fed President John Williams will give a speech titled "Monetary Policy's Role in Fostering Sustainable Growth" in Las Vegas, Nevada. Audience and media Q&A is expected. Thursday, August 3 08:30 AM Initial jobless claims, week ended July 29 (GS 235k, consensus 240k, last 244k); Continuing jobless claims, week ended July 22 (consensus 1,955k, last 1,964k): We estimate initial jobless claims fell by 9k to 235k in the week ended July 29. Initial claims can be particularly volatile around this time of year due to annual summer auto plant shutdowns, and we believe the prior week’s larger than expected increase likely reflected a number of plant closures. Additionally, we expect some retracement from elevated levels of claims in California. Continuing claims – the number of persons receiving benefits through standard programs – likely declined in the week ending July 22. 09:45 AM Markit US services PMI, July final (consensus 54.2, last 54.2) 10:00 AM ISM non-manufacturing index, July (GS 57.0, consensus 56.9, last 57.4): Regional service sector surveys were mostly weaker in July, and we expect the ISM non-manufacturing index to pull back 0.4pt to 57.0 in July. The New York Fed, Richmond Fed, and Philly Fed surveys all deteriorated month-over-month in July, while the Markit PMI services survey was flat in the flash estimate. Our non-manufacturing survey tracker decreased 1.5pt to 54.2, but continues to suggest expansion in business activity. 10:00 AM Factory orders, June (GS +2.6%, consensus +2.8%, last -0.8%); Durable goods orders, June final (consensus +6.0%, last +6.5%); Durable goods orders ex-transportation, June final (last +0.2%); Core capital goods orders, June final (last -0.1%); Core capital goods shipments, June final (last +0.2%): We estimate factory orders rose 2.6% in June – following an 0.8% decrease in May – reflecting a sharp rise in commercial aircraft orders. Despite positive revisions, the June durable goods report showed a modest decline in core capital goods orders but a rise in core capital goods shipments. Friday, August 4 8:30 AM Nonfarm payroll employment, July (GS +190k, consensus +180k, last +222k); Private payroll employment, July (GS +190k, consensus +181k, last +187k); Average hourly earnings (mom), July (GS +0.3%, consensus +0.3%, last +0.2%); Average hourly earnings (yoy), July (GS +2.4%, consensus +2.4%, last +2.5%); Unemployment rate, July (GS 4.3%, consensus 4.3%, last 4.4%): We estimate nonfarm payrolls rose 190k in July, following a 222k increase in June and compared to three- and six-month moving averages of 194k and 180k, respectively. Labor market fundamentals remained solid – business employment surveys remain at strong levels, and the Conference Board’s labor market differential rose to a 16-year high – though we note some modest deterioration in jobless claims data. July payroll growth has been relatively firm in recent years – rising by more than 200k in July in each of the last three years. This trend may reflect changing seasonality in labor market flows and hiring rates in the month, and to the extent the seasonal factors have lagged such an evolution, this would suggest scope for above-trend job growth in the upcoming report as well. We expect the unemployment rate to edge down to 4.3%. The June unemployment rate barely rounded up (at 4.357%), and we believe solid overall job creation will more than offset a modest rise in continuing claims between the survey period. Finally, we expect average hourly earnings to increase 0.3% month over month and 2.4% year-over-year, reflecting somewhat favorable calendar effects. 08:30 AM Trade balance, June (GS -$44.1bn, consensus -$44.8bn, last -$46.5bn): We estimate the trade deficit narrowed by $2.4bn in June. The Advance Economic Indicators report last week showed a narrower goods trade deficit, and we forecast a similar narrowing in the broader trade balance in this week’s report. Source: BofA, DB, GS, RanSquawk
S&P futures rose 0.1% on the last trading day of the month, trailing European and Asian markets boosted by China's July Mfg. PMI, which despite declining from from 51.7 to 51.4, and missing expecations of 51.5, saw the construction index rise to its highest level since December 13, sending Chinese iron ore futures surging and the European commodity sector broadly higher. DCE Iron ore futures +6.43% pic.twitter.com/z7TDGWHOkQ — Sunchartist (@Sunchartist) July 31, 2017 In equities, the MSCI All-Country World Index advanced 0.1%, and the MSCI Emerging Market Index increased 0.3%, while MSCI's broadest index of Asia-Pacific shares outside Japan reversed early losses to rise 0.25%. Stocks have rebounding from Friday’s selloff spurred by raw-material producers on "optimism the global economy is gathering momentum" amid "evidence points to resilient global growth, with investors assessing numbers from the world’s top three economies" according to Bloomberg. As noted above, China’s official factory gauge showed continued expansion in June, even as it slipped amid government efforts to curb financial risks. Japan’s industrial output expanded in June, while data Friday showed the U.S. economy accelerating in the second quarter. Investors remained wary after North Korea conducted a missile test late on Friday that it said proved its ability to strike the U.S. mainland. The U.S. responded by flying two bombers over the Korean peninsula on Sunday. But early jitters dissipated somewhat, with the Korean won reversing losses. The dollar was down 0.2 percent at 1,120.7 won, after jumping almost 0.7% on Friday. South Korea's KOSPI fell 0.2%. "The geopolitical overhang will likely keep topside moves in check early in the week as the disorganized U.S. and China policy towards North Korea is not helping matters," Stephen Innes, head of Asia-Pacific trading at OANDA, wrote in a note. In Europe, Anglo American, Rio Tinto Plc and BHP Billiton helped underpin the advance in the Stoxx Euro 600 Index as miners also propelled the MSCI All Country World Index toward a ninth month of gains. HSBC shares jumped as much as 3.7% to the highest since November 2014 on a $2 billion buyback as profit rose. Shares have climbed 26% this year, with the lender accounting for 13% of Hang Seng Index’s 24% YTD gain, most after Tencent. Despite today's 0.3% gain, the Stoxx 600 is flat for the month of July, in contrast with a gain of 2% for S&P 500 over the same period, according to Bloomberg. European stocks have been hurt by a strengthening euro which has fueled concerns for European earnings. “Global expansion dynamics are well underway,” analysts at Candriam Investors Group wrote in a report. “The European recovery is well on track and is leading to above-trend growth in 2017-18. This has led us to increase our profit earnings expectations for euro-zone equities. The economic news flow is starting to become more supportive in the U.S., while emerging markets are benefiting from a good economic momentum.” There is however, a latent risk: as Citi notes, political headlines may manifest themselves "the proposed healthcare bill is on life-support, tax reform is back in the news (though not yet on the table), and we await further reaction from the Trump administration to the diplomatic spat with Russia and to North Korea’s latest missile test – which, according to Korean newswires, may be imminently followed by another launch." A quick look at the FX book shows the Canadian dollar is biggest loser within G-10, while the yen and euro are mixed. Sovereign yields are near unchanged with the T-note yield at 2.29%. Asian stocks are broadly higher led by Australia and China. Chinese shares rose 0.6%, buoyed by several leading companies' forecasts for strong mid-year earnings. The blue-chip index and the Shanghai Composite both rose 0.6 percent. Japan’s Topix index closed 0.2 percent lower after swinging between gains and losses. Australia’s S&P/ASX 200 Index rose 0.3 percent and South Korea’s Kospi index added 0.1 percent. Hong Kong’s Hang Seng Index added 1.1 percent. HSBC was among the biggest contributors to the advance (more below). West Texas crude traded above $50 a barrel for the first time since May, while copper rose to a two-year high and iron ore surged. In the Asian session, the dollar index climbed with gains tempered by tensions over the weekend between U.S. and Russia, as wells as North Korea. In Europe, Euro, EGBs largely unchanged as euro area July inflation matches estimates. Pound slips against dollar. The Bloomberg Dollar Spot Index edged higher, paring its fifth straight month of declines, as investors prepare for a data-heavy week that will culminate with the release of non-farm payrolls data for July, while Apple, Pfizer, Tesla and Berkshire Hathaway will report earnings. The euro began the week on a soft note as investors waited for second-quarter growth data due Tuesday. The Swiss franc was little changed against the euro, after posting its biggest weekly decline in more than two years; last week’s selloff was triggered by a host of factors, including stop losses and talk of initial public offer-related flows. The ruble slid 1.2% to 60.2550 per dollar, falling for a third day and the most among emerging-market currencies amid heightened geopolitical risks after Russia ordered expulsion of U.S. diplomats. Russian government bonds fell, driving the 10-year yield higher by 9bps. Also overnight, the BOJ maintained its govt bond purchase plans for August unchanged from July. Below are Bloomberg's comparisons between planned purchase ranges for August against those for July and the amounts BOJ offered to buy at the last operations: 1-to-3 years: 200b-300b yen vs 200b-300b yen for July, 280b yen on July 28 3-to-5 years: 250b-350b yen vs 250b-350b yen for July, 330b yen on July 28 5-to-10 years: 350b-550b yen vs 350b-550b yen for July, 470b yen July 28 10- to-25 years: 150b-250b yen vs 150b-250b yen for July, 200b yen on July 26 More than 25 years: 50b-150b yen vs 50b-150b yen for July, 100b yen on July 26 Up to 1 year: 50b-150b yen vs 50b-150b yen for July, 100b yen on July 26 U.S. crude futures climbed 0.3 percent to $49.87 a barrel, after earlier hitting $50.06, their first foray above $50 in two months. Brent crude advanced 0.5 percent to $52.78, adding to Friday's 2 percent surge. Gold was little changed at $1,268.26 an ounce, after earlier climbing to its highest since June 14. In rates, the yield on 10-year Treasuries advanced less than one basis point to 2.29%. Germany’s 10-year yield climbed one basis point. Britain’s 10-year yield fell less than one basis point. Copper climbed 1.1 percent to $2.91 a pound, the highest in more than two years. Zinc gained 1.1 percent, nickel 0.7 percent and tin 1 percent Gold fell 0.2 percent to $1,266.98 an ounce after rising to $1,271.23, the highest since June 14. Gold remains on course for its biggest monthly advance since Feb., with prices trading near highest level in more than six weeks, as speculation that Federal Reserve will go slow on raising interest rates hurts dollar. Bullion for immediate delivery +2.2% this month, most since Feb.’s +3.1%. “U.S. GDP data was weaker than expected and inflation remains subdued, which could damp Fed rate hike expectations,” Guotai Junan Futures says in note. “Gold has scope to rise further in the near term.” Markets are awaiting speeches by Cleveland Federal Reserve President Loretta Mester and San Francisco Fed President John Williams on Tuesday, for further insight into whether the central bank has turned more dovish in light of recently muted inflation. "It is easy for uncertainty to increase about the Fed's ability to raise rates next year if inflation remains low. We could see the dollar head below 110.00 yen under such circumstances," said Junichi Ishikawa, senior forex strategist at IG Securities in Tokyo. The slew of corporate earnings continues. Apple Inc., Tesla Inc., Berkshire Hathaway Inc. and Toyota Motor Corp. are all set to unveil results this week. Pending home sales and Dallas Fed manufacturing activity is expected later on Monday, along with earnings reports from Stifel Financial, Loews and others. Overnight Bulletin Summary from RanSquawk European equities trade higher with outperformance in the FSTE (+0.4%) amid gains in HSBC USD-index has regained some ground against majors, while EUR inflation data saw the headline meet expectations Looking ahead, highlights include Chicago PMI and Pending Home Sales Market Snapshot S&P 500 futures up 0.11% to 2,473.00 STOXX Europe 600 up 0.3% to 379.46 MXAP up 0.3% to 160.20 MXAPJ up 0.4% to 529.01 Nikkei down 0.2% to 19,925.18 Topix down 0.2% to 1,618.61 Hang Seng Index up 1.3% to 27,323.99 Shanghai Composite up 0.6% to 3,273.03 Sensex up 0.5% to 32,479.54 Australia S&P/ASX 200 up 0.3% to 5,720.59 Kospi up 0.07% to 2,402.71 US 10Y yield +0.35bps to 2.29% German 10Y yield unchanged at 0.541% Euro down 0.2% to 1.1726 per US$ Italian 10Y yield rose 2.7 bps to 1.829% Spanish 10Y yield fell 3.1 bps to 1.494% Brent Futures up 0.2% to $52.61/bbl WTI up 0.2% to 49.80/bbl Gold spot down 0.3% to $1,266.39 U.S. Dollar Index up 0.3% to 93.51 Top Overnight News Inflation in the euro area remained well below the European Central Bank’s goal as policy makers prepare to discuss unwinding stimulus. After the collapse of Obamacare repeal, Republicans may have to choose between pursuing another health bill or pushing through a tax overhaul this year, because there’s almost certainly not enough time to do both. So how much did it end up taking after European Central Bank President Mario Draghi memorably said five years ago he’d do “whatever it takes” to save the euro? About 1.2 trillion euros. The Saudi-led alliance that severed ties with Qatar reinstated a list of 13 demands that must be met before talks to resolve the eight-week crisis could start, just as as fresh economic data highlighted the impact of the unprecedented boycott on the Gulf nation. Trump’s New Chief Has One Key Asset: Ivanka and Kushner’s Nod Trump Hints Ending Subsidies to Insurance Cos if No Bill Passed SoftBank Is Said to Plan Making Direct Offer for Charter; Charter Says Has No Interest in Acquiring Sprint India Needs 2,100 Planes Worth $290b in 20 Years, Boeing Says Astra’s Imfinzi Granted FDA Breakthrough Therapy in Lung Cancer J&J Granted FDA Orphan Drug Status for Bedaquiline Ford Takes Action to Help Address Concerns of First Responders Five Banks Reach $111.2m Total Pact Over FX case, Law Firm Says Lockheed Lands $3.69B Advance to Build 50 F-35s for Int’l Buyers Alaska Air Says Hacker Accessed Virgin America Worker Passwords Koch Network Readies Push for Lower Taxes After Border Tax Kill Raytheon’s Troubled GPS III Ground Control Network Slips Again Asia equity markets traded mixed ahead of this week's key risk events and as participants digested Chinese Manufacturing PMI and further provocation from North Korea. ASX 200 (+0.4%) was underpinned by commodity names amid strength in the metals complex coupled with WTI crude's brief reclaim of USD 50/bbl to the upside, while Nikkei 225 (-0.2%) was dampened by broad-based JPY strength. Geopolitical concerns pressured the KOSPI (-0.3%) following another North Korean missile test on Friday which it claimed was capable of striking mainland US, while both Hang Seng (+1%) and Shanghai Comp. (+0.6%) were positive despite Official Chinese Manufacturing PMI data missing estimates, as the Construction sub-index rose to its highest since December 2013. Finally, 10yr JGBs were flat and failed to benefit from the cautious risk tone in Japan, with demand subdued following a lacklustre BoJ Rinban announcement valued at just only JPY 325b1n of JGBs. PBoC injected CNY 160 bin 7-day reverse repos and CNY 80bln 14-day reverse repos. Chinese Official Manufacturing PMI (Jul) 51.4 vs. Exp. 51.5 (Prey. 51.7). Chinese Non-Manufacturing PMI (Jul) 54.5 (Prey. 54.90) Top Asian News China Is Said to Ask Waldorf Owner Anbang to Sell Assets Abroad BOJ Keeps August Bond Purchase Ranges Unchanged From July Biggest Indian Bank Surges as Deposit Rate Cut May Boost Profit Sumitomo Mitsui 1Q Net Income Rises 31% to 241.5b Yen SMFG Reports 1st Qtr Group Earnings Result Panasonic Reports 1st Qtr Group Earnings Result (IFRS) Tian Guoli Is Said to Be Named China Construction Bank Chairman European bourses are higher across the board this morning led through material names, following the Chinese Mfg. PMI data, in which the construction index rose to its highest level since Dec'13. Firm earnings and an announcement to plan a USD 2bln share buyback from Europe's largest bank, HSBC (+3%), has lifted financial names higher this morning with support for health care names also seen in the wake of earnings from Sanofi (+1.8%) whereby the Co. also raised their guidance. A cautious start was initially seen for German paper this morning ahead of this morning's Eurozone CPI data with prices relatively unreactive to the release which saw the headline match expectations with core slightly firmer than anticipated. Peripheral debt outperforming its German counterpart with the BTPSs and Bonos tighter by 3bps. Some suggest BTPs are set to benefit from large month-end extensions. Top European News U.K. Consumer Borrowing Cools After Bank of England Warning HSBC Rises as Second Quarter of Growth Backs Turnaround Story Putin Says Hopes Retaliation Ends Once 755 U.S. Staff Ousted Rolls- Royce Shares Fall; Is Said to Caution on Cash Flow to FT Greece’s Road to Bailout Exit: 140 Reforms Down, More to Go U.K. Takes Two Steps Forward, One Step Back on Brexit Plan Italian Unemployment Declines; Jobs Growth Led by Temporary Work In currencies, the USD-index begins the week slightly firmer, rising 0.1% overnight to pull off 15-months lows reached last week amid a raft of soft US data. USDCAD has been the notable mover with bargain hunting the likely catalyst, given Friday's 1% decline. Major support lies around 1.2400 with the pair testing stalling at 1.2410¬20 multiple times last week. The antipodeans (AUD,NZD) will be in focus this week, both currencies slightly tailing off their 2Y highs. Last week, AUD reached the highest level since May'15 at 0.8066, however the currency has pulled off somewhat with the Aussie back below 0.80. Focus will be on the RBA statement, in which the central bank may sharpen their language on the AUD to temper its recent surge. NZD hovers above 0.75 with participants likely to keep an eye for latest GDT auction and jobs data which will guide price action. Cable: Another central bank to announce their latest decision will be the BoE who will announce their latest economic projections. It is likely the central bank will keep rates unchanged with inflation cooling to 2.6% in June and growth remaining tepid, this has subsequently reduced speculation over a near term rate rise. Since the last meeting, GBP has risen over 3% with the currency now above 1.31. Resistance ahead at 1.3150-60 with additional offers situated at 1.32 (option barrier level). In commodities, Brent and WTI futures up a nudge this morning, the latter met resistance at USD 50. Over the weekend, Shell's Pernis oil refinery had been forced to close after reports of a fire at the 404k bpd refinery. Also, source reports indicate the US could announce oil related sanctions on Venezuela as soon as today in a response to Sunday's election. Industrial metals supported overnight from the Chinese PMI data, which saw Dalian iron ore futures hitting limit up in Asia, while steel rebar soared to a 3Y high. US could announce oil related sanctions on Venezuela as soon as today in a response to Sunday's election, according to sources. Sources added that US is considering banning sales of US oil and refined products to Venezuela, but are not expected to include a ban on Venezuelan oil shipments to the US. Looking at today's session, we will get the Chicago PMI number (60 expected; 65.7 previous), the Dallas Fed manufacturing activity reading (13 expected; 15 previous) for July and June pending home sales (1% expected). US Event Calendar 9:45am: Chicago Purchasing Manager, est. 60, prior 65.7 10am: Pending Home Sales MoM, est. 1.0%, prior -0.8%; NSA YoY, prior 0.5% 10:30am: Dallas Fed Manf. Activity, est. 13, prior 15 DB's Jim Reid concludes the overnight wrap Welcome to the last day of July and the end of one life and start of a new one split between work and childcare, with nothing much in between. It’s likely that August will see a barbell of excitement with decent activity at either end but with a notable slowdown in the middle. This week we see the monthly PMIs/ISMs over the next couple of days which are a crucial barometer on realtime growth momentum, the BoE on Thursday (probably a lower key event after recent inflation numbers) and then payrolls on Friday which is always fun! Then a likely lull for 2-3 weeks before the Jackson Hole Symposium on August 24-26th with guest star Mr Draghi present for the first time since he attended and strongly hinted at QE three years ago. Will he tee-up further autumnal tapering and create some bond volatility? We saw a little bit of bond vol on Friday after stronger German CPI (HICP 1.5% yoy vs 1.4% expected) saw 10 year Bunds climb from 0.53% to 0.58% in the morning session where they stayed until a slightly weaker than expected US Q2 GDP print (2.6% vs 2.7% annualised QoQ expected) helped see them reverse course again to close at 0.54%. The US GDP print still represented a significant pick up from Q1 growth but that was revised down from 1.4% to 1.2%. The growth rebound was bolstered by strong Q2 consumer spending data that was in line with expectations at +2.8% SAAR (vs. +1.9% previous). Later in the day we got the final University of Michigan consumer sentiment reading for July which was revised marginally higher from 93.2 to 93.4. This morning, China’s July manufacturing PMIs were a tad softer than expectations at 51.4 (vs. 51.5 expected; 51.7 previous), partly due to adverse weather conditions such as high temperatures in parts of China and floods in others as well as routine maintenance in some enterprises. There was also a small fall in the non-manufacturing PMI to 54.5 (54.9 previous). Focus will turn to the extent of economic growth in 2H, as China’s policy makers had previously indicated a preference for slower credit growth. Elsewhere, Japan’s industrial production for June beat expectations at 1.6% mom (vs. 1.5% expected; -3.6% previous). This morning in Asia, Chinese related bourses have all strengthened, with the Hang Seng (+0.7%) and the three Chinese markets up ~+0.6%. The Nikkei (-0.1%) and the Kospi (-0.3%) are both marginally weaker. Global equity markets were on the softer side on Friday as US equities (S&P -0.1%; NASDAQ -0.1%) mostly dipped on the slightly lower than expected Q2 growth. However the Dow bucked the global trend to climb 0.16% (supported by solid results from Chevron) and to another new record close - the third day in a row. Earlier European equities (STOXX -1.0%) struggled as the Euro strengthened on the day and auto makers continue to weaken. Tobacco stocks fell heavily on both sides of the Atlantic as news filtered through that the US Food & Drug Administration plans to look at regulating nicotine levels in cigarettes. Across the region, other markets also softened, with the DAX (-0.4%), FTSE 100 (-1%), CAC (-1%) and FTSE MIB (-0.9%). Over in government bonds, change in yields were modest for both US Treasuries (2Y: unch; 10Y: unch) and German Bunds (2Y: -1bp; 10Y: +1bp). Other sovereigns also had modest changes, although yields at 10Y slightly increased, while 2Y yields were marginally lower, with Gilts (2Y: -1bps; 10Y: +1bps), OATs (2Y: -1bps; 10Y: +1bps) and BTPs (2Y: +1bps; 10Y: +3bps). Turning to currency, the US dollar index fell 0.6% on the back of softer Q2 GDP data, but has recovered a little this morning. The Euro/USD strengthened 0.6% to a new 30-month high of 1.175 and Sterling/USD was also up 0.5% to a fresh 10 month high. Commodity markets saw another day of strong performance, with the energy segment broadly higher on the day as oil rose again (WTI +1.4%) to end the week up over 8%. Precious metals were broadly higher (Gold +0.8%; Silver +1.0%), while industrial metals were slightly lower (copper: -0.3%; Aluminium -0.4%). Agricultural commodities were broadly higher on the day as well. Away from the markets, voting efforts to repeal Obamacare have ended for now. Despite being health stricken, Senator McCain flew in last week to allow the senate to start the debate on healthcare legislation. In the end, it was McCain and two other senators that blocked the skinny repeal of Obamacare on a vote of 49-51 last Friday. Senate majority leader McConnell said “he’ll move on to other legislative business”, but Trump is not giving up, tweeting “…if a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies….will end very soon!” Trump is referring to ending subsidy payments to health insurance companies which help make insurance accessible to poorer Americans. The next payment is due 21 Aug and the Health and Humans Service Secretary Price has said on Sunday that “no decision (on the subsidy) has been made” either way. The North Korean situation will also be giving Mr Trump some headaches after the state fired off more intercontinental missiles over the weekend. China has condemned the latest tests, but fell short of more aggressive actions as desired by Mr Trump. Conversely, the US has sent bombers to joint military exercises with South Korea on Saturday and the US ambassador to the UN has said “the time for talk is over…China must decide whether it is finally willing to take this vital step (to resolve this situation)..” The Krw/USD was up 0.8% last Friday and is little changed this morning. Elsewhere, one thing appearing to head in a better direction for Mr Trump is tax reform. The Republicans are now more confident of overhauling the US tax code, with an outcome likely by the end of the year. This follows House speaker Ryan making a concession and ditching his controversial border adjusted tax last week, which was expected to raise $1trn of tax revenue over a decade. Obviously there is still a long way to go though. Taking a look now at some of the other data out on Friday, in Europe we got advanced reading of France Q2 GDP which increased marginally more than expected to +1.8% YoY (vs. +1.6% expected; 1.1% previous). We also got the preliminary July CPI readings for France which came in line with expectations at +0.8% YoY (-0.4% mom), while German inflation was higher than expected at 1.5% YoY (as discussed above) which was the main story of interest. We also saw a group of Eurozone confidence indicators for July where economic confidence (111.2 vs. 110.8 expected), services confidence (14.1 vs. 13.4 expected) and industrial confidence (4.5 vs. 4.4 expected) beat estimates although the business climate did disappoint (1.05 vs. 1.14 expected). The final reading for the July consumer confidence indicator also saw no revisions from the initial reading of -1.7 (as expected). Taking a look now at this week’s economic calendar. Today, we have German retail sales (+0.2% mom expected; +0.5% previous) and UK consumer credit data for June due, followed by the Eurozone unemployment rate (9.2% expected) for June and CPI estimate (+1.3% YoY expected) for July. In the US we will get the Chicago PMI number (60 expected; 65.7 previous), the Dallas Fed manufacturing activity reading (13 expected; 15 previous) for July and June pending home sales (1% expected). We kick off tomorrow in Asia where we will get the Caixin China manufacturing PMI reading and the final Nikkei Japan manufacturing PMI reading for July. In Europe we will get July data for the UK Nationwide House Price index, followed by a first look at the remaining manufacturing PMIs out of Europe and the final July manufacturing PMIs for France, Germany and the Eurozone as a whole. We will also get the advance estimate for Q2 Eurozone GDP. In the US we will get personal income and spending numbers for June and the ISM manufacturing PMI for July. Wednesday is a quiet day in both the Europe and the US with no real data of note outside of ADP and the Eurozone PPI. Thursday’s calendar will round out July PMI data for the week. In Asia we will get the July composite and services PMI numbers for China (Caixin) and Japan (Nikkei). In Europe we get the July PMIs with the final services and composite PMIs for France, Germany and the Eurozone due as well as a first look at some of the same data for the rest of Europe. Thereafter all focus should shift to the BoE policy meeting. Over in the US we should also get jobless claims data followed by the ISM non- manufacturing composite for July. Thereafter we will get factory orders data as well as the final readings for durable and capital goods orders for June. Friday is relatively quiet day for data in both Asia and Europe with only German factory orders data for June due. The US should be in greater focus as the July payrolls number is due along with other labour market data. Alongside that we will also get the trade balance reading for June. Onto other events, on Tuesday, trade ministers from the BRICS countries will meet in Shanghai. Then Wednesday, the Fed’s Mester will speak at a Community banking conference and the Fed’s Williams will speak in Las Vega’s on monetary
Главный исполнительный директор Amazon Джефф Безос обогнал Билла Гейтса и стал самым богатым человеком в мире по версии Forbes с состоянием, впервые превысившим 90 миллиардов долларов. Издание Forbes начало отслеживать состояние миллиардеров по всему миру в 1987 году. Безос стал седьмым по счету человеком, который удерживает титул самого богатого в мире, и третьим американцем, возглавляющим глобальную корпорацию помимо Билла Гейтса и генерального директора Berkshire Hathaway Уоррена Баффета. Читать дальше →
Рост стоимости акций Amazon.com Inc. в четверг утром накануне выхода отчета о прибыли приблизил главу компании Джеффа Безоса к статусу самого богатого человека в мире, пишет Bloomberg. До сих пор это звание принадлежало основателю Microsoft Биллу Гейтсу.
Рост стоимости акций Amazon.com Inc. в четверг утром накануне выхода отчета о прибыли приблизил главу компании Джеффа Безоса к статусу самого богатого человека в мире, пишет Bloomberg. До сих пор это звание принадлежало основателю Microsoft Биллу Гейтсу.
A surge in Amazon shares this morning (ahead of earnings) has propelled founder Jeff Bezos past Microsoft founder Bill Gates as the world’s richest person... As Bloomberg reports, shares of the online retailer rose 1.8 percent to $1,071.31 as of 9:30 a.m. in New York. If the gains hold through the close, Bezos, 53, could leapfrog Gates on the Bloomberg Billionaires Index. The 61-year-old Microsoft Corp. co-founder has held the top spot since May 2013. Bezos owns about 17 percent of Seattle-based Amazon, which has surged 40 percent this year through Wednesday, helping to add $24.5 billion to his net worth. He started 2017 as the world’s fourth-wealthiest person and has since leapfrogged Inditex SA founder Amancio Ortega, who ranks third with $82.7 billion, and Berkshire Hathaway Inc.’s Warren Buffett, No. 4, at $74.5 billion. Notably, Amazon and Facebook are now both worth over $500 billion market cap. And as far as what (or who) is behind the success of Bezos, it's simple... Central Bank policy truly means the rich get richest! So this means that "the leader of the free world" is now in a feud with "the world's richest man" - should be fun to see who wins that.
Healthcare showdown (Reuters) Tax Overhaul in Doubt With House Stuck on Budget Disagreements (BBG) Dollar steadies after Fed skid, shares hit new highs (Reuters) Samsung Is Closing In on Apple as World’s Most Profitable Tech Firm (WSJ) Sweden's PM Refuses to Resign After Cyber-Security Scandal (BBG) In Trump-Sessions Impasse, Aides Urge President to Back Off (WSJ) Scaramucci Says He’ll Contact FBI Over ‘Leak’ of Financial Data (BBG) U.S. lawmakers reach deal for Senate Russia sanctions vote (Reuters) AstraZeneca shares drop most on record after big drug trial setback (FT) Macron Taps a Decade of Italian Anger Since Zidane Headbutt (BBG) Verizon’s All-You-Can-Eat Data Plans Win Users, Lift Profit (BBG) Libor Interest Rate Benchmark to Be Phased Out in 2021 (BBG) Treasury Market's Big Short Bet Foiled by Fed Policy Statement (BBG) Why You’re Not Getting a Raise (BBG) Secretary of State Tillerson says he is 'not going anywhere' (Reuters) Wall Street Needs You to Borrow Against Your Stock (WSJ) Here Come the Tesla Model 3s... and a Few Surprises (BBG) Nestle Outlook for Weakest Sales in 20 Years Gives Loeb Ammo (BBG) Deutsche Bank expects lower 2017 revenue after mixed second quarter (Reuters) Energy Capital Is Said to Hold Advanced Talks to Buy Calpine (BBG) Ukraine president strips one-time ally Saakashvili of citizenship (Reuters) Etihad Posts $1.87 Billion Loss in Worst Blow for Gulf Carriers (BBG) China reviewing copper scrap imports; may call halt in 2018 (Reuters) U.S. indicts suspected Russian 'mastermind' of $4 billion bitcoin laundering scheme (Reuters) Overnight Media Digest WSJ - Senate GOP leaders picked up support Wednesday for their plan to pass a scaled-back bill to repeal a handful of elements in the current health law, and then open negotiations with House Republicans to try to bring together their two very different bills. on.wsj.com/2uEqZ9s - Foxconn, the maker of iPhones and other gadgets for Apple Inc, plans to build a plant in Wisconsin that a White House official said will initially bring 3,000 jobs to the state. on.wsj.com/2uEifjp - The U.S. Federal Reserve signaled Wednesday it is ready as soon as September to start slowly shrinking its holdings of more than $4 trillion in bonds it bought to try to buoy the economy. on.wsj.com/2uDEtSJ - Viacom Inc is out of the running to acquire Scripps Networks Interactive, leaving Discovery Communications Inc as the only remaining suitor in talks to purchase the cable TV programmer, people familiar with the situation said. on.wsj.com/2uDZxbP - Amazon.com is launching in Singapore with a twist: It is targeting loyal, time-strapped shoppers by starting with its more limited one- and two-hour subscription delivery option. on.wsj.com/2uErWyn - A bankruptcy judge will consider approval of Berkshire Hathaway Energy Co's proposed takeover of Oncor Electric Delivery on Aug. 21. Paul Singer's Elliott Management had sought a later date for more time to raise financing for its rival proposal. on.wsj.com/2uEpkkc FT Britain's home secretary, Amber Rudd, promised business on Thursday that she would not close the door to European workers after Brexit, in a significant softening of the government’s tone on EU migration. German insurer Allianz SE has reported a 23 percent jump in second-quarter profits and says that its full-year numbers will be towards the top end of its target range. Artemis, the holding company of France's Pinault family, has sold its stake in French retailer Fnac Darty SA to Germany's Ceconomy, which is seeking to consolidate European electronics sellers to compete against Amazon. Cerberus, the U.S. private equity group, has bought a 675 million euro stake in Commerzbank AG, which makes it the third-largest shareholder in the German lender and sets up a potential clash with the government in Berlin NYT - The former head of labor relations at Fiat Chrysler Automobiles was indicted on conspiracy and other charges by a federal grand jury on Wednesday, accusing him of siphoning off millions of dollars from a workers training center. nyti.ms/2uDQebD - A jury in Los Angeles on Wednesday awarded Quincy Jones $9.4 million damages, finding that he was underpaid his share of royalties for the use of music in the posthumous Jackson film "This Is It" and two Cirque du Soleil shows. nyti.ms/2uEfaQq -A Russian man, Alexander Vinnik, was arrested in Greece on Tuesday after being charged for overseeing a black market Bitcoin exchange that helped launder billions of dollars and stood at the nexus of several criminal enterprises, according to a federal indictment. nyti.ms/2v9VHdk - The Fed, in a statement after a two-day meeting of its policy-making committee, said it would start reducing its bond holdings "relatively soon" as long as moderate economic growth continues. nyti.ms/2v9HbCr - Britain announced on Wednesday that sales of new diesel and gas cars would reach the end of the road by 2040, the latest step in Europe's battle against the damaging environmental impact of the internal combustion engine. nyti.ms/2uDS7Fw Canada The Globe and Mail ** The Supreme Court of Canada affirmed on Wednesday that Indigenous people do not have a veto over resource projects affecting their traditional territory, even as it quashed a regulatory permit for an oil-exploration program that Inuit residents of Baffin Island feared would damage their hunting rights. tgam.ca/2v0o0dW ** Canada is reviewing the U.S. administration's decision to sanction 13 current and former Venezuelan government officials ahead of a controversial election on Sunday that could turn Venezuela into a dictatorship. Foreign Affairs Minister Chrystia Freeland welcomed the United States sanctions, but did not say if Canada will follow suit. tgam.ca/2v0476U ** Suncor Energy Inc is battling higher costs at its Syncrude oil sands project and said it would take longer than expected to restore production at the problem-plagued operation after a fire tore through the facility earlier this year. tgam.ca/2v0tF3x National Post ** Canada Mortgage and Housing Corp continues to give the national housing market its worst possible rating, saying there still is "strong evidence of problematic conditions" — an assessment first made three quarters ago. bit.ly/2ePpz8g ** The chief executive of U.K.-based Finastra, which absorbed Toronto-based DH Corp last month, said Canada would continue to be an "incredibly crucial part of our ecosystem going forward" and that it intended to expand its capabilities on this side of the pond. CEO Nadeem Syed also said Canada represents upwards of 20 percent of Finastra's overall revenues — just behind the United States. bit.ly/2u1bBSo Britain The Times Royal Bank of Scotland Group Plc has agreed a deal with Brussels that will finally allow the lender to call off its sale of the Williams & Glyn business. bit.ly/2tZWSr1 GlaxoSmithKline Plc will cull more than 30 development programmes and aim for 1 billion pounds ($1.31 billion) of extra annual savings in a shake-up under its new boss. bit.ly/2uDHToE The Guardian Britain's car industry has warned that the government's proposed ban on sales of new petrol and diesel cars by 2040 risks damaging the industry and stalling sales of new cars. bit.ly/2tEAPXf A regulatory regime intended to crack down on the behaviour of bank bosses is to be extended to 47,000 firms including dentists, gyms and tool hire companies that offer credit to customers. bit.ly/2eP5Aq4 The Telegraph Lloyds Banking Group Plc has set aside 300 million pounds to repay 600,000 customers for mortgage arrears errors that took place over a seven-year period, sources said. bit.ly/2v9r9bE BT Group Plc has landed a blow against attempts to boost competition in the market for heavy-duty broadband lines for businesses, threatening access to the "dark fibre" that rivals say will be crucial to 5G mobile connectivity. bit.ly/2eOYGBb Sky News The government will stop charging employment tribunal fees and refund those who have already paid them - after the Supreme Court found they were unlawful. bit.ly/2uDbs9D JPMorgan Chase & Co is drawing up plans to merge its UK-based private banking arm into its wider European wealth operation ahead of the UK's departure from the European Union. bit.ly/2ePFa7M The Independent The Royal Institution of Chartered Surveyors found that nearly half of construction workers predict the gender pay gap will be less than 15 percent by April 2018. It is currently 18.1 percent. ind.pn/2tZQ10O
WILMINGTON, Del. (Reuters) - A U.S. bankruptcy judge on Wednesday gave Elliott Management Corp 11 more days to formalize its plans to bid on Oncor Electric Delivery Co before the court approves the $9 billion offer for the utility from Berkshire Hathaway Inc.
Home Capital said it had repaid the outstanding balance on credit facility provided by a unit of Berkshire Hathaway. T
Oil bounce, results keep stocks on high (Reuters) Healthcare brawl returns to Senate floor (Reuters); Senate Sets Up Health Votes for Chaotic Obamacare Debate (BBG); Health Debate Rolls On After First Option Fails (WSJ) Who Will Blink First in the Sessions Standoff? (BBG) Iran Says ‘Hostile’ U.S. Sanctions Vote Undermines Nuclear Deal (BBG) Russia Warns of ‘Painful’ Response If Trump Backs U.S. Sanctions (BBG) In Ohio, a struggle for the soul of the Democratic Party is playing out (Reuters) EU launches proceedings against Poland over judicial reform (DW) How to Build a Business Empire by Drinking, Gambling and Napping (BBG) Executive Pay Falls for Big Mall Owners as Retail Storm Rages On (WSJ) Swedish government under threat, opposition seeks ministers' ouster over data contract (Reuters) Britain will ban new petrol and diesel cars from 2040: minister (Reuters) Venezuelans Prepare for the Worst Days Before Maduro Tightens His Grip on Power (BBG) Investors to Big Oil: Restrain Yourselves (WSJ) Bankers Ditch Fat Salaries to Chase Digital Currency Riches (BBG) How Jony Ive Masterminded Apple’s New Headquarters (WSJ) U.S. energy secretary duped into fake interview with Russian comedians (Reuters) To See the Future of Renting, Watch the College Kids (BBG) A School’s Dilemma: How to Spend Its Snap IPO Millions (WSJ) Sluggish UK economy inches forward, Bank of England unlikely to act (Reuters) Blue Apron COO Matthew Wadiak steps down in post-IPO shakeup (TC) Trump Is Selling Out the Midwest, Biofuel Industry Says (BBG) Americans Are Cutting a Shorter and Cheaper Path to Decent Pay (BBG) Overnight Media Digest WSJ - Senate Republicans overcame a range of internal fissures in voting to begin debate on their healthcare overhaul, but the party suffered a setback hours later when a proposal replacing major portions of the Affordable Care Act failed to attract enough votes to pass. on.wsj.com/2uA4AtU - SoftBank Group is angling for a piece of Uber Technologies, a move that would further the grand ambitions of SoftBank's charismatic founder and muddy the mix of alliances in the global ride-hailing business. on.wsj.com/2uzKEXS - U.S. President Donald Trump is signaling his next priority: overhauling the tax code to push corporate rates down and give middle-class taxpayers a break, even if it means some of the wealthiest pay more. on.wsj.com/2uzxRoA - U.S. President Donald Trump expressed his disappointment in Attorney General Jeff Sessions in an interview — but declined to say whether he planned to fire him. on.wsj.com/2uA3CO7 - Apple Inc Chief Executive Tim Cook has committed to build three big manufacturing plants in the United States, President Donald Trump said, a surprising statement that would help fulfill his goal of reviving manufacturing. on.wsj.com/2uzD1ka - A former Fox News executive who left the company after being accused of sexual assault and harassment by an on-air contributor has sued the channel's parent, Twenty-First Century Fox, alleging fraud and breach of contract. on.wsj.com/2uVD0K0 FT Michael Gove will herald the end of the internal combustion engine in Britain within a generation as he announces plans to ban the sale of new petrol and diesel cars by 2040. Nasdaq Inc has agreed to buy a London-based software company that uses artificial intelligence to sniff out rogue traders, as the US group seeks to acquire cutting edge technology under its new chief executive. Metro Bank Plc has accelerated plans to raise 278 million pounds of equity capital to fuel its growth by launching a share placement on Tuesday night. Amazon.com Inc will double the size of its research and development team in London by hiring an additional 450 staff as part of a plan to boost its UK workforce to 24,000 this year. NYT - Oliver Schmidt, a Volkswagen executive accused of helping to cover up the automaker's diesel emissions fraud has agreed to plead guilty in federal court next week, a development that could bolster the Justice Department's efforts to prosecute individuals involved in the scandal. nyti.ms/2v6Fh5L - Former Fox News vice president Francisco Cortes sued Twenty-First Century Fox on Tuesday accusing the company of making him a scapegoat in an effort to battle negative publicity about sexual misconduct. nyti.ms/2vHljeZ - The Securities and Exchange Commission said on Tuesday that it had concluded after an internal investigation that at least some virtual currencies being sold to investors should be categorized as securities and needed to follow federal securities laws. nyti.ms/2h1tDCU - Activist hedge fund Starboard Value sued big media measurement company Comscore on Tuesday, seeking to force the company to schedule an annual meeting for the first time in two years. nyti.ms/2vHmV8r Canada The Globe and Mail ** Malaysian oil company Petronas has cancelled plans for an C$11.4 billion ($9.12 billion) liquefied natural gas terminal on the British Columbia coast, dealing a major blow to Canada's hopes of becoming a global LNG supplier. tgam.ca/2uAqqgO ** Canadian National Railway Co posted a 20 percent rise in second-quarter profit, but warned that the stronger loonie poses a headwind for the rest of the year. Montreal-based company beat analyst expectations in a quarter that saw many freight categories post double-digit gains. tgam.ca/2uAD6UH ** British Columbia Premier John Horgan offered no assurance on Tuesday that his government will issue permits that Kinder Morgan Canada Ltd needs to commence construction of the Trans Mountain pipeline expansion in September, despite federal approval for the C$7.4 billion ($5.92 billion) project that Alberta Premier Rachel Notley considers critical to her province's economic well-being. tgam.ca/2uAzfqK National Post ** Home Capital Group, the Toronto-based alternative mortgage lender, says it has repaid a C$2 billion ($1.60 billion) line of credit from Berkshire Hathaway Inc . bit.ly/2uWnZaQ ** SNC-Lavalin Group Inc is eyeing tuck-in acquisitions to "turbo charge" its capabilities in artificial intelligence following the closing of its C$3.6 billion ($2.88 billion) deal for WS Atkins, the company's chief executive says. Britain The Times Factories are increasing production at the fastest rate in 22 years, according to a CBI survey that suggests manufacturing may provide a boost for the economy as the dominant services sector begins to slow. bit.ly/2vYQlOy Metro Bank Plc has warned that it will take two years longer than expected to hit its financial targets as it announced a surprise 278 million pound ($362.15 million) capital-raising amid growing speculation about a gap in its finances. bit.ly/2v6j6we The Guardian Victims of the ground rents scandal are demanding ministers go further in tackling unfair abuses of the leasehold system, amid claims that as many as 100,000 existing homeowners remain trapped in properties that are "unsellable". bit.ly/2uutfS1 Noel Edmonds has increased his compensation claim against Lloyds Banking Group Plc to 300 million pounds after he fell victim to fraud at the hands of former HBOS Reading staff. bit.ly/2vYjeum The Telegraph The Guardian has developed plans to erect a paywall around its website and apps if its existing membership scheme and appeals for donations do not meet financial targets amid upheaval in the news market. bit.ly/2uVk661 Britain's car industry has been given a "vote of confidence" by BMW AG, the government said after the German automotive firm announced it will build an all-electric version of the Mini in the United Kingdom. bit.ly/2h0ODJY Sky News Private equity groups Clayton Dubilier & Rice and Bain Capital have joined forces to assemble a knockout takeover bid for the 6 billion pounds Unilever Plc division which houses the Flora margarine brand. bit.ly/2h1ul2O Virgin Money Holdings Plc Chief Executive Officer Jayne-Anne Gadhia has used a post-results slide in its stock market valuation to acquire about 100,000 pounds-worth of the company's shares. bit.ly/2h1FgJV The Independent Amazon.com Inc plans to expand the number of people it employs in research and development across London – a powerful endorsement of the capital's booming tech sector despite the economy being steeped in uncertainty ahead of Britain's departure from the European Union. ind.pn/2v31X6Z
Миллиардер Уоррен Баффет заинтересовался очередной страховой компанией. По информации агентства Bloomberg, инвестиционный фонд Berkshire Hathaway в данный момент ведет переговоры о покупки доли в концерне IRA Brasil Resseguros.
Уоррен Баффетт наметил рекордную высоту // Berkshire Hathaway готовит крупнейшую сделку в аэрокосмической отрасли
Berkshire Hathaway близок к подписанию соглашения о покупке американской металлургической корпорации Precision Castparts, главными клиентами которой являются Airbus и Boeing. Сумма сделки оценивается в $30 млрд, что будет крупнейшим поглощением не только для холдинга Уоррена Баффетта, но и для всей аэрокосмической отрасли.
Согласно данным регулятивных органов США на 30 сентября текущего года, американская инвестиционная компания Berkshire Hathaway приобрела 40,1 млн акций Exxon Mobil на общую сумму $3,7 млрд. Стоит отметить, что компания Уоррена Баффета также сократила долю в ConocoPhillips на 44% до 13,5 млн акций.