Another week of positive returns. Markets are now up 4 weeks in a row. The overarching theme have been investors are hopeful that there will be trade-deal between U.S. and China. If not that, potentially Trump administration removing all tariffs until a deal is reached. Also, recent positive macro data have fueled the market.
On the other side, there are plenty of bad news. The U.S. government shut-down is now the longest ever. So far the economic effects have not worried the markets. Teresa May lost most recent Brexit vote in parliament. Resulting in more uncertainty. No one knows if there will be delay of the Brexit, a new vote, or other outcomes. EU countries have commenced contingency plans in case of a hard Brexit. Data out of China continue to be negative side, but again markets have put its hope to a deal.
Earnings have been hit and miss in the first week of earnings. The banks reported mixed results with Goldman and Bank of America report better than expected results, whilst Morgan Stanley and JP Morgan were less stellar. Netflix missed its numbers, but the markets shrugged. American Expressed missed on lower spending. On the retail side, Signet missed while Tiffany beat. On the auto side, Tesla is laying off works as it is facing headwinds.
Finally, one major concern from last year was the freezing up of credit markets. It appear to have now to have opened up, giving investors more confidence things are all ok. With that said, the markets have priced in plenty of good news. Anything negative could easily turn the markets. Let it be Mueller probe, trade talks or geopolitical events.
Economy, Trade & Fed, Macro
Over 300 small-business loans a day aren’t happening because of the shutdown
U.S. Restaurant Prices Jump the Most Since 2011
Boom Fizzles: Shipments Fall for 1st Time Since Transportation Recession
Dimon says JP Morgan `won’t be stupid’ with loans as end of business cycle nears
India: Biggest Strike in World History. 200 million People Strike against Modi’s Government. Will the Government and the Markets Fall?
China exports fall most in 2 years as slowdown and trade war bite
Jiayuan crash underscores China property risks
You can’t contain China: Former US trade chief Robert Zoellick warns Donald Trump
Xi Jinping’s turn away from the market puts Chinese growth at risk
China: Xi makes it Clear – Prepare for War with Taiwan – Maybe a Convenient way for the U.S. to bankrupt China
Japan's optimistic millennials shed frugal habits and lift spending
Europe: Economies Shows Stress. Car Sales Collapse – U.S. Signals More Auto Tariffs.
Draghi Warns Lawmakers Eurozone Economy Weaker Than Expected
German industry’s plan to face the China steamroller
EU offers Brexit reassurance but no changes to deal
Brexit latest polling: Public hate Theresa May's deal - but still back leaving
As UK's EU withdrawal nears, Germany steps up Brexit prep
France launches contingency plans for hard Brexit
Ivanka Trump to Help Select Nominee for World Bank President
Markets / Companies
Do You Chase Longs Here?
Are Market Moves Happening Faster?
Buy Protection When You Can, Not When You Must
If Earnings Have Peaked, Will a Stock Wipeout Follow?
Diverging Central Banks
Lions and Tigers and Yield Curve Inversions
Dull Markets Killing Volatility – Time for the Contrarian Trade?
Mighty JPY not Buying the Risk On
Poor Morgan Stanley results end Wall Street winning streak
Apple’s Next Big Move? It Should Buy Nintendo
Apple supplier Dialog Semi weathers iPhone slump to hit revenue target
Foxconn axes 50,000 seasonal jobs as Apple slowdown bites
Netflix is raising prices across of all of its tiers
What Amazon’s Rise to No. 1 Says About the Stock Market
China’s Tencent and Alibaba hit the brakes after dealmaking binge
Is the Overpriced M&A Spree by the Chinese Showing Cracks? German Robotic Company Kuka Could be a Sign
Alibaba faces growing regulatory threat as China’s economy falters
Was The Facebook '10 Year Challenge' A Way To Mine Data For Facial Recognition AI?
Elon Musk Says Tesla Is Cutting Full-Time Jobs to Maintain the Low Cost of Its Cars
WeWork’s CEO Makes Millions as Landlord to WeWork
Chinese tech unicorn ByteDance launches new social app to rival WeChat
Exclusive: PG&E talking to banks on multibillion dollar bankruptcy financing – sources
Safe Or Not, Roundup Is Toxic for Bayer
Newmont buys Goldcorp in US$10B mega deal to be top gold miner
Beware the Mega- Merger
German regulator saddles Deutsche Bank with onerous money laundering reviews
Canada’s Canopy Growth shares jump on deal to develop industrial hemp farms in New York
The weed middleman that expects to make billions as the Sunkist of pot
iPhone On Rails: How Finnish Elevator Maker Kone Is Using Technology To Reach The Next Floor
The Marijuana Billionaire Who Doesn’t Smoke Weed
As Americans Drink Less Alcohol, Booze Makers Look Beyond the Barrel
Alaska officials probing BP oil, gas wells at Prudhoe Bay after spill
California’s largest utility just declared bankruptcy. Hello, climate change.
Apollo Nears Deal to Buy Arconic for More Than $10 Billion
US pursuing criminal charges against Huawei for alleged theft of trade secrets
Fiserv to acquire First Data in all-stock deal with equity value of $22 billion
Spain wrestles with a private equity boom
Exclusive: Snoop Dogg Invests In Klarna, Sweden's $2.5 Billion Unicorn
Fidelity looks to AI as the future for portfolio management, asset selection
Are Structured Products Trash?