Why Barclays Downgraded Apple

In an unexpected breach from the herd of sellside optimism, this morning Barclays downgraded Apple to Equal Weight from Overweight, putting some pressure on the stock which was down modestly in the premarket. This is what Barclays said to justify its contrarian view on the world's largest company.

Frontrunning: January 24

  • Dollar steadies after stumble, sterling rides out Brexit ruling (Reuters)
  • After U.S. exit, Asian nations try to save TPP trade deal (Reuters)
  • U.K. Court Rules Brexit Trigger Needs Parliamentary Vote (BBG)
  • Brexit plans unlikely to be slowed by Article 50 defeat (Reuters)
  • Health Secretary Nominee Proposed Bill Benefiting Puerto Rico Investments (WSJ)

Trump Says "Illegal" Voters Cost Him Popular Vote

Sparking his latest confrontation with the media, and mostly CNN and WaPo, overnight president Trump told members of Congress on Monday in a private reception that he lost the popular vote in the election because millions of undocumented immigrants cast votes for his opponent.

Johnson & Johnson Slides On Top-Line Miss, Disappointing Drug Sales, Soft Outlook

The reason why JNJ was over 2% lower in the pre-market, and pressuing the entire Dow average as a result, is because it took a page out of the IBM playbook, and beat EPS only thanks to a sharply reduced effective tax rate; furthermore, virtually all major drug sales posted weaker than expected sales in the fourth quarter.

US Futures, Oil Flat As Greenback Rises Despite Mnuchin's "Strong Dollar" Warning

US equity futures were flat, European stocks rose and Asia was mixed after the dollar posted a modest rebound overnight despite Mnuchin's "strong dollar" comments, while oil was flat and gold fell, as investors focused on President Donald Trump’s plans to boost growth. The pound fell after a U.K. court ruled that Parliament must vote on triggering Brexit.

In Blow To Theresa May, UK Supreme Court Rules Parliament Must Vote Before Brexit Can Start

In a blow to Theresa May's ambitions to implement a "clean Brexit", on Tuesday morning UK’s Supreme Court ruled the UK Prime Minister can’t start the Brexit process without approval from Parliament, a decision that could potentially complicate her path toward a clear break from the European Union. Eight justices voted against the government and three voted in favor of it, in a decision that was widely expected.

Swedish Politician Resigns After Calls To "Shoot Trump"

A municipal council lawmaker in the Swedish city of Kalmar, Roland Pettersson, member of the biggest Swedish Social Democratic Party, resigned on Monday after asking on Facebook if someone could “shoot” America’s president, Donald Trump.

Iran Caught Smuggling Anti-Tank Missile Systems Through Ukraine Under "False Manifests"

"This isn’t the first time Iran has gotten caught red handed smuggling weapons with false manifests.  The question is how often does Iran get away with such smuggling and for what purpose? After all, if the weaponry is legal, there’s no reason for lying. If it’s not, Iran is violating international agreements. Either way, only fools and secretaries of state would trust Iran to uphold its agreements.”

Spanish Courts Don't Have Any Respect For Freedom Of Contract

The impartiality that should preside over any stance in the administration of justice has been completely forsaken by the judges in these particular rulings, in connivance with misguided headlines and a rampant anti-capitalistic mentality within society. Let us just hope it is not too late for liberty to strike back.

Trump’s Inauguration: A Typical Norwegian Response To A Historical Event

Instead of being happy for America on our historic day, The Norwegian “America Experts” (Nettavisen in Norwegian) blasted him as fierce and divisive. VG, the leading Norwegian paper referred to the speech as dark. Nowhere, in their analysis, was a counter-thesis, offering the underlying reasons for Trump’s statements. No acknowledgment of our decline over the past generation, despite the technological gain and offshoring.

Protest In The Era Of Trump

"If you see Trump as the problem to be solved, as opposed to a symptom of a discredited and failing system, you present more of a danger than a solution. "

80% Of Central Banks Plan To Buy More Stocks

Invesco recently released a report on central-bank investment polling 18 reserve managers around the globe. It found that 80% planned to buy more stocks in the future.