World economies

Market moving daily news roundup July 26th 2019

Market moving daily news roundup – events & news likely to move markets 26th July 2019

Company performance, economic and political events but especially market sentiment will always influence market movement, good or bad.

This post is ongoing…

Market moving news roundup, 26th July 2019

Summary

Amazon and Alphabet

After hours, Amazon shares drop on report of weaker than expected sales. Alphabet (Google parent company) reported earnings were up. Asian markets fell overnight, NIKKEI down 98pts to close at: 21658.

Softbank announces artificial intelligence investment

AI

Japanese conglomerate, Softbank, announces multi billion dollar artificial intelligence investment fund. Australia plans system to ‘police’ large technology conglomerates such as Google and Facebook – (Aren’t France & UK already looking into something like this)?

Vodafone plans business spinoff

Vodafone reports falling quarterly sales but announces new business/section to spinoff antennae masts into a separate business of which there are some 61,000 plus in their mobile network infrastructure. I wonder if this will lead to an IPO for the new project?

Apple buys chip maker unit

Estate agent Foxtons has reported a loss for the year. TSB reports profits up from loss of previous year. Mothercare’s profits remain under pressure, shares slide. Revenues and profits at Rightmove are up, even with less homes being purchased.

Apple

Apple reported to be spending $1 billion for Intel chip unit enabling the company to be independent of outside chip suppliers for its smartphones.

U.S. GDP – below Trump’s 3% target

Twitter reports second quarter profits up, shares up too. U.S. GDP comes in below Trump administration’s 3% target but higher than Wall Street expected and grew at 2.1% in the second quarter. Guessing Trump won’t be too happy with these figures.

Also, president Donald Trump says Apple will not receive tariff waiver/relief on products made in China. U.S. McDonald’s fast food outlets reported sales up in second quarter.

Free 5G at Three

UK Three mobile network operator announces it will give customers 5G at no extra cost – 5G for FREE! Sounds good to me.

UK Sterling down on the day at $1.24. FTSE 100 up around 60pts on the day to close at: 7549

U.S. – Alphabet stock climbs, investors very happy with share buyback announcement. Twitter shares up sharply. Starbucks and McDonald’s up too.

Record breakers

S&P 500 & NASDAQ set all time new highs today, 26th July 2019

U.S. earnings season

At the start of the U.S. earnings season, analysts expectations were subdued, but results have been far better than expected, so far at least. Some 40% or so S&P 500 companies have now reported, and a much higher than expected percentage have reported stronger than forecast results.

Is there a U.S economic slowdown?

With the backdrop of a ‘supposed’ economic slowdown in the U.S. I would question how the analysts were so far off the mark? It was widely reported that this earnings season was anticipated to be under pressure and therefore highly likely to produce a set of lack lustre results.

Did analysts believe companies were playing down their own expectations as they sometimes do? Or, was their analysis wide off the mark? Do investors take too much notice of analysis? Trade what actually happens – not the best guess?

Is the U.S economy slowing down, or is the fear greater than the actual? Does the Fed really need to cut interest rates yet, if at all?

Trump tariff threat on France

Trump threatens France with new tariffs and even a ‘wine’ tariff if France proceeds with the so called digital tax.

Market moving news roundup, 25th July 2019

Summary

Brexit – deal or no deal? Enough is enough, just get on with it – UK voted to leave, so leave.

UK – Boris Johnson’s first full day as PM at no. 10. New cabinet gets to work. Brexit with or without a deal. Please, just get on with it! Boeing problems persist, may halt 737 Max production. Anglo American profits rise. Unilever first half profits see little changed from last year. Astra Zeneca profits rise.

Nissan, Cobham, Facebook, Sage & Metro Bank

Reports suggest Nissan to cut 12,500 jobs as profits fall. Cobham shares soar as take over bid agreed. German business confidence falls. Facebook reports revenues up despite heavy $5 billion fine. Sage shares drop. Metro Bank shares fall.

Euro hits a low

Euro trades down. JLR reports loss. American Airlines and Southwest take hit from grounded Boeing 737 Max aircraft. U.S. chemical company, Dow, reduces spending due to trade conflicts. U.S. jobless claims fall.

ECB interest rate & policy announcement

EU – ECB leave interest rates unchanged with no new monetary stimulus, at least not yet. Indication is that a rate cut and more stimulus may now follow in September 2019. The stage is set.

Eleven years of ECB tinkering hasn’t helped. Inflation is far from out of control and 0% & even minus interest rates and massive quantitative easing – QE, just hasn’t done the trick. Look at Japan.

U.S. Stocks

Dow Jones falls. S&P 500 & NASDAQ trims back on yesterdays all time highs. Facebook falls.

U.S. Stocks fell on Thursday as investors start to fret again, concerned that the Federal Reserve may not be as accommodating with monetary policy next week as expected, especially less so now after strong economic data releases and remarks from ECB President Mario Draghi indicating that there is not a significant risk of a recession.

How the pendulum doth swing… I expect the Fed will have to cut by at least 0.25% to save a U.S. stock market pull back.

Market moving news roundup, 24th July 2019

Summary

U.S. delegation due to visit China as trade talks set to resume

Asian markets rise, NIKKEI up 0.5%. ECB monetary policy meeting due 25th July 2019. U.S. – China trade talks (in person) due to start again next week – markets lifted on this news. U.S. reportedly sending delegation to China week commencing 29th July 2019. Boris Johnson becomes the next UK Prime Minister, 24th July 2019

EU manufacturing data

German manufacturing at 7 year low. Germany’s largest bank, Deutsche Bank posts Q2 profit loss. Eurozone manufacturing contraction worsens. DAX continues to climb to close up at: 12523

The U.S. Justice Department has announced an investigation into large U.S. technology companies, examining ‘unfair’ monopolising practices.

Record breaking fine for Facebook

Boeing reports disappointing results with a heavy second quarter loss. Facebook receives $5 billion fine from the U.S. Federal Trade Commission (FTC), for consumer privacy violations, the biggest fine ever handed out by the FTC.

U.S. – Robert Mueller (former special counsel) testifies before Congress – questioned about alleged Russian interference in the U.S. election.

Tesla, Ford Motor Company, PayPal, Boeing and Caterpillar stocks fall (24th July 2019).

New records set for U.S. indices

U.S. S&P 500 & NASDAQ indices close at all time highs!

Market moving news roundup, 23rd July 2019

Summary

UK Prime Minister announcement

Boris Johnson is announced as the next Conservative Party leader and will become UK Prime Minister on Wednesday 24th July 2019.

Asian markets climb slightly. U.S. markets lift as Wall Street starts busy earnings week. Investors encouraged by news suggesting U.S. and China talks could resume next week. Dow closes up close to all time high on the back of this news.

New China STAR market declines after debut. PX Cussons profits drop. Fever-Tree sales slow. UBS profit up. UK supermarket sales drop. Santander profits fall. European markets up. DAX – 12430 at: 10:00 BST (23rd July 2019). NIKKEI up at: 21656 (10:00 BST). UK up: 7570 (10:00 BST).

HMRC says June UK house sales fell by nearly 17%, compared to the same period last year. Gold trading down slightly from recent highs. South Korea scramble jets and fires warning shots as Russian military aircraft enters airspace.

U.S. and China trade deal and U.S. interest rate cut combined?

UK government delays Huawei decision. Will U.S. President make licensing concessions with Huawei? If U.S. and China make some sort of agreement or announcement next week and the Fed make a significant interest rate reduction – we will likely witness a substantial stock market climb.

Put these both together and we have a perfect reason for markets to continue their upward trend and set new records. Investors will love this combination. Just a thought, we’ll see…

Market moving news roundup, 22nd July 2019

Summary

China brings new stock market system ‘STAR Market’ online . The pound ‘£’ continues to take a pounding – sterling remains under pressure. A ‘no deal’ Brexit attracts market attention. Brexit chaos just rolls on and on and on!

Oil price up on Monday due to continued political tensions with Iran. UK leadership challenge vote closes today, new leader to be announced Tuesday 23rd July 2019. U.S. & UK stock markets sit in a ‘holding’ pattern. Equifax receives heavy fine over 2017 data breach incompetence.

India is considering banning private cryptocurrencies in the country in favour of a state backed crypto. A 10 year jail term and heavy fines could be the punishment for anyone dealing in private digital currencies.

Markets generally move sideways in a ‘holding’ pattern ahead of earnings update this week and probable Fed rate cut.

This post is ongoing…

Market moving news roundup, 19th July 2019

U.S. earnings season

U.S. earnings season has had a much better start than the ‘experts’ had predicted. Company earnings, so far, have come in above forecasts. Were corporate Q2 earnings forecasts set at lower estimates making it easier for companies to beat them? UK to delay decision on use of Huawei equipment in 5G network.

Summary

Boeing takes $5 billion hit over 737 problems. Oil price rises on U.S./Iran tension. Asian markets rise, recover some of yesterday fall. Microsoft reports figures above expectations. UK – borrowing increase, highest since 2015 according to ONS. U.S. – Blackrock reports fall in Q2 profits. Sterling under pressure again today, falls back against dollar to level $1.25. American Express reports Q2 profits rise. Trump tweets for Fed to lower rates. U.S. consumer sentiment moved up slightly in June from 98.2 to 98.4. Wall street stock indices declined after a report suggesting the Fed may only cut interest rates by 0.25? Gold price touches 8 year high. Reports of UK oil tanker been seized in the Strait of Hormuz near Iran.

Market moving news roundup, 18th July 2019

Summary

Japan exports fall. Sterling continues its slide. Bank of Korea delivers unexpected rate cut of 25 basis points. Report suggest no deal Brexit will lead to recession (no kidding)! Asia markets fall – NIKKEI down 1.8%. Netflix subscribers fall and so does its share price. UK retail sales improves for June 2019. Morgan Stanley solid results. Iran seize tanker. UK MP’s vote to block Parliament shutdown. Toys R Us reported to be making U.S. comeback. FTSE 100 closes lower at: 7493. U.S. stocks close slightly higher.

News roundup – ongoing from 9th – 17th July 2019

Summary

U.S. & China trade war – no new information since 9th July 2019 when it was indicated talks were in ‘progress’. Any hint of positive trade news is likely to send an already ‘high’ U.S. stock market even higher!

Fed interest rate cut?

Fed interest rate cut speculation continues to push markets up to record all time highs! Investors keenly await and expect a rate cut. U.S. earnings season reporting starts 15th July 2019. Banks up first. Geopolitical tensions (U.S., Iran, UK, EU) remain over Iranian sanctions deal. UK Brexit paralysis continues. U.K. leadership challenge ebbs on, result expected week commencing 22nd July 2019.

Global economic slowdown

Italy debt and weakening economy. Potential global economic slowdown concerns linger even with a high U.S. stock market. Japan and South Korea trade tensions continue. China – U.S. – concerns over Taiwan arms deal. China indicating it may impose sanctions on U.S. over deal. U.S. trade tensions with India growing.

UK economy grows

The UK economy grew more than expected in May according to data from the Office for National Statistics but remains subdued. New EU commission president elected 16th July 2019 – Ursula von de Leyen, indicated she is not adverse to extending the Brexit deadline, but only for good reason. Get out clause for UK then…again!

Trump says should Google be investigated over China alleged ‘links’ claim? Facebook challenged by U.S. senators over cryptocurrency – concerned of past scandals and consumer data breaches. Does Facebook deserve consumer trust? Some central banks, President Trump, France finance minister and U.S. Senate unimpressed with Facebook’s crypto plan.

Sterling slides

EU launches Amazon investigation into use of ‘sensitive’ information of sellers on its platform. Sterling continues to slide (17th July 2019). London house prices reported to be falling (17th. July 2019). Hard time for banks? With low interest rates (and a possible further cut likely in July) banks profit making machine may be under more pressure to come up with the goods.

Sterling under pressure – drops to lowest level for two years 16th July 2019. Brexit ‘no-deal concerns linger. UK inflation at 2% – on target (17th July 2019)UK – U.S. trade deal faces issues according UK trade minister Liam Fox.

EU car sales report a fall. Huawei remains on U.S. blacklist. Foreign purchases of U.S. homes in decline. Chinese buyers desert the U.S. market.

Note

Company performance, economic and political events and especially market sentiment will always influence market movement.

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