{"id":13539,"date":"2019-10-14T07:51:38","date_gmt":"2019-10-14T12:51:38","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=13539"},"modified":"2019-10-14T07:51:38","modified_gmt":"2019-10-14T12:51:38","slug":"before-the-open-oct-14-18","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=13539","title":{"rendered":"Before the Open (Oct 14-18)"},"content":{"rendered":"

Good morning. Happy Friday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mostly down. India did well, but China, Hong Kong, South Korea, New Zealand, Australia and the Philippines were weak. Europe, Africa and the Middle East<\/strong> currently lean up. Turkey is up more than 3%, and Kenya, Austria, Sweden and Saudi Arabia are also doing well. Poland is weak. Futures in the States<\/strong> point towards a slight up open for the cash market. <\/span>
\n—————
\n VIDEO: <\/strong>State of the Market<\/a>
\n—————<\/span>
\n The dollar is down. Oil and copper are down. Gold and silver are down. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Asian markets were mixed after China reported GDP of 6.0% in Q3 vs. the 6.2% pace recorded in Q2 and the consensus forecast for a 6.1% gain. The GDP print was the weakest in more than 26 years. While industrial production and retail sales in China perked up a bit by quarter’s end amid the trade war, investment in fixed assets was soft, and investment in the agriculture, manufacturing and industrial sectors fell off in September. Hong Kong’s Hang Seng Index fell 0.5%, while the Shanghai Composite Index shed 1.3% and the smaller-cap Shenzhen Composite was flat. Japan’s Nikkei rose 0.2% after inflation rose 0.3% in September as expected. South Korea’s Kospi was flat on the day, while Australia’s ASX 200 dropped 0.8% higher. Meanwhile, European stocks are having a softer day with the Stoxx 600 Index slipping 0.1% as the good cheer over Brexit fades just a bit. U.S. stock futures are pointing slightly lower ahead of the trading day, with Coca-Cola (NYSE:KO), American Express (NYSE:AXP) and State Street (NYSE:STT) all due to step up to the earnings confessional.<\/span>
\n Tariff day in Europe<\/span>
\n The U.S. is slapping tariffs on $7.5B worth of European goods today. Aircraft produced in the European Union will be slapped with 10% tariffs, while a group of consumer products that includes wine, whiskey and cheese will be slapped with 25% tariffs. Earlier this week, the World Trade Organization cleared Washington to take action after concluding that Airbus (OTCPK:EADSF) received billions of dollars in illegal subsidies over the years.<\/span>
\n Spotlight on oil<\/span>
\n Oil prices continue to look for direction after some cooling off of Middle East tension and a tentative Brexit deal offset concerns over cooling growth in China and a fifth straight weekly rise in U.S. crude supplies. Looking ahead, ANZ Research sees downward pressure on prices. “Concerns about softer growth in the demand for oil and doubts about OPEC\u2019s ability to rebalance the market on the current production cut rate will be key drags on prices in the near term,” noted the firm. In today’s early action, WTI crude oil futures +0.7% to $54.32\/bbl and Brent crude +0.2% to $60.02\/bbl.<\/span>
\n Fedheads to talk<\/span>
\n Investors will get a steady dose of Federal Reserve talk today as Robert Kaplan, Esther George, Neel Kashkari and Richard Clarida all have speeches scheduled. The burning question at the moment is if the Fed will cut rates again at the FOMC meeting on October 29-30 or hit the pause button. Some Fed watchers think policymakers will want to see what effect the current stimulus has on the economy before continuing with rate cuts. The speeches today also give Fed officials the chance to stress again the importance of the central bank maintaining its independence into an election year.<\/span>
\n Credit Suisse goes negative in Switzerland<\/span>
\n A new policy by Credit Suisse (NYSE:CS) will see wealthy clients with large cash deposits in Swiss francs charged a fee to hold cash balances at the bank. Individual and business customers will be charged a rate of -0.75% on cash balances above 2M Swiss francs, while balances of less than 2M francs will be unaffected. A rate of -0.85% will be imposed on business customers with balances above 10M francs. Other banks in Switzerland have already adopted a negative interest rate policy.<\/span>
\n AT&T reportedly talking with Elliott over activist campaign<\/span>
\n AT&T (NYSE:T) is in talks with Elliott Management over the latter’s activist campaign for change in the telecom\/media giant’s management, board and asset mix, the WSJ reported. AT&T delayed its earnings report a week to Oct. 28, a move that gets it more time for an agreement with Elliott beforehand. Items under discussion include a strategic review of assets for disposal, a push for better margins, stock buybacks and\/or board moves on which Elliott would consult (and peace now would likely head off a proxy fight that could come next year).<\/span>
\n Schwab goes with fractions<\/span>
\n Charles Schwab (NYSE:SCHW) will enable investors to buy and sell fractions of shares, in a move aimed at attracting millennials. The move by Schwab is the first for a major incumbent brokerage. Earlier this month, Schwab rocked the discount trading world by eliminating trading commissions, leading to quick actions by TD Ameritrade (NASDAQ:AMTD), Interactive Brokers (NASDAQ:IBKR), E*Trade (NASDAQ:ETFC), TradeStation and Fidelity to keep pace.<\/span>
\n Spotlight on Sanderson Farms<\/span>
\n Sanderson Farms (NASDAQ:SAFM) is due to hold an analyst day event in New Orleans today. Heading into the presentation by Sanderson execs, there has been a lot of discussion over the ongoing impact of African swine fever. The last read from Sanderson Farms was that it expected a shortage of pork in China to raise prices globally for chicken and beef. The company is also expected to provide an update on current marketing initiatives, the export markets and the domestic retail grocery\/food service market. Shares of Sanderson Farms are up 46% YTD.<\/span>
\n Zuckerberg address takes on free speech, China<\/span>
\n Mark Zuckerberg used a major speech at Georgetown University to stake out Facebook’s (NASDAQ:FB) position on free expression, with both China’s crackdown in Hong Kong and U.S. electoral politics running at a higher pitch. Social media forms a “fifth estate” (beyond the “fourth estate” of the press), he says, and he wants his company to be a beacon of speech. But despite worrying about an “erosion of truth,” the company won’t ban political ads even though they’re small business. And China’s censorship on TikTok is “one of the reasons” Facebook won’t operate in China.<\/span>
\n Under Armour to ride in space<\/span>
\n Under Armour (UAA, UA) unveiled a new line of spacesuits and boots that it created as part of a long-term partnership with Virgin Galactic. The gear is for future space travelers on Virgin Galactic’s spaceflights, which are expected to start next year. Under Armour CEO Kevin Plank said the company used its patented technology to develop a suit to keep passengers warm, dry, comfortable and safe. While space tourism isn’t likely to be volume UA business anytime soon, Plank said the publicity from successful space flights will be priceless.<\/span>
\n What else is happening…<\/span>
\n Videogame sales drop again.<\/span>
\n Value of Juul (JUUL) goes up in smoke.<\/span>
\n Saudi Aramco (ARMCO) delays IPO.<\/span>
\n Banks see Fed’s softening on cash liquidity buffer levels.<\/span>
\n Thursday’s Key Earnings<\/strong>
\n Intuitive Surgical (NASDAQ:ISRG) +3.5% PM on Q3 earnings beat.
\n Atlassian (NASDAQ:TEAM) -0.5% PM after Q1 beats, Code Barrel acquisition.
\n E*Trade (ETFC) +4.2% PM on earnings beat, operating margin growth.
\n Bank OZK (NASDAQ:OZK) -2.7% AH on earnings shortfall.
\n WD-40 Company (NASDAQ:WDFC) -5.3% PM on lower-than-expected FY20 guidance.
\n Vicor (NASDAQ:VICR) -6% AH on earnings miss, contracting revenue.<\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 9:00 Fed’s Kaplan: \u201cDisentanglement of the Global Economy\u201d
\n 10:00 Fed’s George Speech
\n 10:00 Fed’s Kaplan Speech
\n 10:00 Leading Indicators
\n 10:30 Fed’s Kashkari Speech
\n 11:30 Fed\u2019s Clarida: Economic Outlook and Monetary Policy
\n 1:00 PM Baker-Hughes Rig Count
\n 5:10 PM Fed’s Kaplan Speech<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n———————————-
\n Good morning. Happy Thursday. <\/span>
\nThe Asian\/Pacific<\/strong> markets were mixed and quiet. Hong Kong and India moved up; Japan and Australia moved down. Europe, Africa and the Middle East<\/strong> are mixed. The UK, Poland, Finland, Saudi Arabia and the Czech Republic are up; Turkey, Norway and Hungary are down. Futures in the States<\/strong> point towards a positive open for the cash market. <\/span>
\n—————
\nJoin our email list<\/a> – get technical research reports sent directly to you.<\/strong>
\n—————<\/span>
\nThe dollar is down. Oil is down; copper is up. Gold is down; silver is up. Bonds are down. <\/span>
\nStories\/News from Seeking Alpha…<\/span>
\nEfforts to hammer out a Brexit agreement suffered a serious blow overnight after the Democratic Unionist Party said it could not support the deal as it stands. DUP support is seen as crucial if Prime Minister Boris Johnson is to win Parliament’s approval for the deal in time for his Oct. 31 deadline. The news comes as Johnson heads to a European Union summit seeking approval of a tentative withdrawal agreement. In fact, U.K. and EU negotiators just agreed to a deal, sending the pound soaring to seven month highs against the dollar. But the key is whether the new Brexit can pass Britain’s fractious Parliament.<\/span>
\nNew GM contract has $7.7B in investment and key union wins<\/span>
\nA new tentative deal between General Motors (NYSE:GM) and the UAW covering more than 46,000 workers includes key union wins along with a pledge to invest $7.7B into U.S. factories, according to the Wall Street Journal. That move would create or preserve 9,000 jobs, and an additional plan to invest $1.3B near its Lordstown, Ohio, plant would create another 1,000. The deal also includes wage hikes, bonuses and other worker demands, along with plans to shutter idle plants. The UAW strike at GM will continue until union leaders vote.<\/span>
\nNetflix says competition’s OK in a growing streaming pie<\/span>
\nNetflix (NASDAQ:NFLX) jumped double digits in post-market trade after its Q3 earnings showed a rebound from poor subscriber results in Q2, even while it hinted toward hotter competition in coming quarters. The company added 6.77M net subscribers vs. last quarter’s 2.7M, and said forward guidance accounted for pressure from upcoming services such as Disney Plus (NYSE:DIS), Apple TV Plus (NASDAQ:AAPL), AT&T’s HBO Max (NYSE:T) and NBC’s Peacock (NASDAQ:CMCSA). But the potential market is large, Netflix said, and “we are all small compared to linear TV”.<\/span>
\nNestle plans to return as much as $20B to shareholders<\/span>
\nNestle (OTCPK:NSRGY) said it will start a new stock buyback program in January and may complement it with special dividends, seeking to return as much as $20B to shareholders by 2022. The news comes as the company also reported YTD sales rose 3.7%, in line with analyst estimates, helped by Starbucks-branded (NASDAQ:SBUX) coffee for Nespresso machines and Purina pet food. Nestle also signals it is ramping up its M&A focus as it unveils a new management group to seek out growth opportunities, and says it is restructuring its bottled water unit – where YTD sales have slipped – to focus on faster growing brands such as Perrier and S. Pellegrino.<\/span>
\nTesla cleared to start manufacturing cars in China<\/span>
\nTesla (NASDAQ:TSLA) has been approved by China’s industry ministry to begin production at the $2B Gigafactory the company is building in Shanghai, the first fully-foreign-owned car plant in China. Tesla plans to produce at least 1,000 of its Model 3s per week from the Chinese factory, which reportedly could be up and running within weeks. The new factory will give Tesla access to China – the world’s biggest car market – and help the company avoid higher import tariffs that are imposed on cars made in the U.S.<\/span>
\nMajority of iPhones from past four years run iOS13, Apple says<\/span>
\nApple (AAPL) said 55% of iPhones introduced in the past four years are running iOS13 — an important metric because users typically upgrade to new iPhones after four years. The company shared the data on its website for third-party developers, also reporting that 50% of all iPhones are on iOS 13, while 33% of iPads are on iOS 13.<\/span>
\nJ&J offers $4B opioid litigation settlement<\/span>
\nJohnson & Johnson (NYSE:JNJ) reportedly has offered to pay $4B to settle all claims accusing the company of contributing to the opioid epidemic, a deal that likely would please J&J investors since analysts had estimated opioid litigation could cost the company $5B-$10B to settle. If completed, the deal would resolve more than 2,000 lawsuits by state and local governments alleging that J&J’s marketing of pain drugs including Duragesic and Nucynta fueled the opioid crisis.<\/span>
\nBarneys selling to Authentic Brands, B. Riley in $271M deal<\/span>
\nLuxury chain Barneys New York has a deal to sell its assets to Authentic Brands and B. Riley Financial (NASDAQ:RILY) in a stalking-horse bid amounting to $271M. All Barneys stores are designated for closing, but the deal could lead to Barneys shops appearing in Saks Fifth Avenue stores. Blackrock (NYSE:BLK) is the largest shareholder in Authentic Brands, which controls more than 50 brands including Nautica, A\u00e9ropostale, Elvis Presley and Nine West.<\/span>
\nEurope issues antitrust order on Broadcom sales tactics<\/span>
\nThe European Union has issued an “interim measures” order on Broadcom (NASDAQ:AVGO), giving the company a 30-day ultimatum to stop suspect sales tactics. The company is ordered to stop applying certain exclusivity provisions contained in agreements with six of its main customers, based on preliminary findings from an ongoing investigation. Broadcom is seen as a test case for a policy that could have serious implications for companies such as Amazon (NASDAQ:AMZN), Apple (AAPL), Facebook (NASDAQ:FB) and Google (GOOG, GOOGL) that have been targeted in Europe over anti-competitive practices.<\/span>
\nFacebook still sees Libra winning enough financial backers<\/span>
\nThe head of Facebook’s (FB) Libra project said he still expects to get 100 banks and financial firms on board once regulatory concerns are addressed. Libra chief David Marcus told a panel at the International Monetary Fund conference in Washington yesterday that 1,600 entities globally had initially expressed an interest in joining the project, so Libra should have “no problem” reaching its goal of launching with 100 members. Facebook’s attempt to establish a global digital currency has suffered severe setbacks in recent days, abandoned by the likes of Visa (NYSE:V), Mastercard (NYSE:MA), PayPal (NASDAQ:PYPL), Stripe, eBay (NASDAQ:EBAY) and Booking (NASDAQ:BKNG).<\/span>
\nWeWork owner forms panel to consider competing lifelines<\/span>
\nWeWork owner We Co. (WE) is setting a special panel of two directors to consider competing proposals for a $5B rescue, Reuters reports. The purpose is to ring-fence the deliberations from the influence of SoftBank (OTCPK:SFTBY), its biggest shareholder and proposer of one of the rescues, a debt-and-equity investment that could end up giving it control of WeWork. SoftBank’s plan is competing against one from banks led by JPMorgan (NYSE:JPM). In either case, the $5B is sorely needed, as WeWork could run out of cash by the end of next month.<\/span>
\nWhat else is happening…<\/span>
\nAlcoa (NYSE:AA) reports Q3 loss but investors like portfolio review plan.<\/span>
\nCronos (NASDAQ:CRON) flies high after-hours following block trades.<\/span>
\nAir Canada (OTCQX:ACDVF) yanks 737 MAX (NYSE:BA) from schedule until February 14.<\/span>
\nWednesday’s Key Earnings<\/strong>
\nIBM (NYSE:IBM) -4.3% PM after revenue miss.
\nNetflix (NFLX) +7.6% PM on solid growth.
\nKinder Morgan (NYSE:KMI) reported Q3 earnings and revenue miss, reaffirmed EBITDA outlook.
\nAlcoa (AA) +2% AH as investors cheer drive to lower costs.
\nCSX (NASDAQ:CSX) +4.1% AH on earnings beat, record operating ratio.
\nCrown Castle International (NYSE:CCI) +1% PM on Q3 beat.
\nUnited Rentals (NYSE:URI) -1% AH on narrowing FY outlook.
\nSteel Dynamics (NASDAQ:STLD) -2% AH on Q3 revenue miss.
\nLimelight Networks (NASDAQ:LLNW) +20.5% PM on record revenue.
\nSL Green Realty (NYSE:SLG) reported FFO, same-store sales and NOI growth.<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\nToday’s Economic Calendar<\/strong>
\n8:30 Initial Jobless Claims
\n8:30 Philly Fed Business Outlook
\n8:30 Housing Starts
\n9:15 Industrial Production
\n10:30 EIA Natural Gas Inventory
\n11:00 EIA Petroleum Inventories
\n2:00 PM Fed’s Evans: \u201cFed Listens: Monetary Policy’s Impact on Workers and Their Communities\u201d
\n2:00 PM Fed’s Bowman: \u201cFed Listens: Monetary Policy’s Impact on Workers and Their Communities\u201d
\n4:20 PM Fed’s Williams Speech
\n4:30 PM Money Supply
\n4:30 PM Fed Balance Sheet<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n—————————
\n Good morning. Happy Wednesday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mostly up. Japan, South Korea, New Zealand, Australia, Malaysia, Singapore, Thailand and the Philippines did well; China was weak. Europe, Africa and the Middle East<\/strong> lean to the upside. Russia, South Africa, Italy, Israel and Saudi Arabia are up; Denmark and Turkey are down. Futures in the States<\/strong> point towards a slight down open for the cash market. <\/span>
\n—————
\nJoin our email list<\/a> – get technical research reports sent directly to you.<\/strong>
\n—————<\/span>
\n The dollar is down. Oil and copper are down. Gold is flat; silver is down. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n Brexit negotiations continue today after yesterday\u2019s talks failed to finalize some important issues, according to The Wall Street Journal. A key summit of EU leaders starts tomorrow, where a deal is still possible. There\u2019s about two weeks left before the U.K.\u2019s scheduled departure.<\/span>
\n Service debut for long-haul Boeing plane depends on demand – executive<\/span>
\n Boeing’s (NYSE:BA) plans for putting its 777-8 craft into service for the world’s longest-ever commercial flights depend somewhat on customer demand, a company exec says. Boeing hopes to win an order from Qantas for use on the Sydney-London route, over the competing A350-1000 from Airbus (OTCPK:EADSY); Qantas would hope to have delivery in late 2022, but an engine delay in Boeing’s 777-9 may have pushed the 777-8 beyond an earlier plan for 2022 service.<\/span>
\n WeWork stops China expansion<\/span>
\n WeWork (WE) will continue to open its planned locations for 2020, but will halt its expansion plans for 2021, according to Nikkei. WeWork has opened offices in 125 buildings in 12 cities in the region since entering China in 2017. The key growth market accounts for 15% of total WeWork locations and is the third-largest geography in revenue. WeWork is cutting back as it works to extinguish its cash burn after the failed IPO.<\/span>
\n Apollo Global offers $5B bid for Tech Data<\/span>
\n Apollo Global Management (NYSE:APO) has reportedly approached Tech Data (NASDAQ:TECD) with a $130\/share cash buyout offer, which amounts to about $5B. Tech Data\u2019s shares are currently near all-time highs on optimism that demand from small and medium-sized businesses will remain strong despite macro concerns.<\/span>
\n United Airlines flies after raising full-year earnings guidance<\/span>
\n United Airlines (NASDAQ:UAL) topped Q3 earnings expectations and raised its FY19 EPS forecast to $11.25-12.25, in-line with consensus estimates. The company says this quarter\u2019s performance puts United \u201cahead of pace\u201d to meet its $11-13 EPS goal by the end of 2020.<\/span>
\n Eaton to sell lighting business to Signify in $1.4B deal<\/span>
\n Eaton (NYSE:ETN) has agreed to sell its Lighting business to Signify (OTCPK:PHPPY) for $1.4B after a comprehensive review of various transaction alternatives. The Lighting unit amassed sales of $1.7B in 2018, about 8% of the company\u2019s overall revenue. The acquisition is the largest by Signify, the former Philips Lighting, which was spun off from Philips in 2016.<\/span>
\n Johnson & Johnson sees $110M talc verdict overturned<\/span>
\n An appeals court in Missouri has overturned a $110M verdict against Johnson & Johnson (NYSE:JNJ) in a case over whether the company’s talc caused ovarian cancer. That overturned a 2017 decision favoring a Virginia woman who used the talc for feminine hygiene for decades. The appeals court cited a state supreme court ruling limiting out-of-state plaintiffs’ ability to sue. But J&J still faces several other lawsuits in St. Louis.<\/span>
\n What else is happening…<\/span>
\n Charter (NASDAQ:CHTR) prices $2B in debt.<\/span>
\n Buffett (BRK.A,BRK.B) asks for Fed OK, to boost Bank of America (NYSE:BAC) stake above 10%.<\/span>
\n Pratt (NYSE:UTX) urges engine checks after Swiss A220 flight diverted.<\/span>
\n Aramco (ARMCO) to pay up to $450M in fees to IPO advisors – Bloomberg.<\/span>
\n Tuesday’s Key Earnings<\/strong>
\n United Airlines (UAL) +1.4% AH on earnings beat, raising full year guidance.
\n Interactive Brokers (NASDAQ:IBKR) -0.8% AH on in-line earnings, higher currency diversification loss.
\n J.B. Hunt Transport Services (NASDAQ:JBHT) +0.5% AH on missing Q3 earnings, flat volumes.
\n Am\u00e9rica M\u00f3vil (NYSE:AMX) remains flat post earnings.
\n Sleep Number (NASDAQ:SNBR) +5.9% AH on earnings beat, double-digit comp sales growth.<\/span><\/span><\/span><\/span><\/span><\/span>
\n Today’s Economic Calendar<\/strong>
\n 7:00 MBA Mortgage Applications
\n 8:30 Retail Sales
\n 9:00 Fed’s Evans: Monetary Policy
\n 10:00 Atlanta Fed’s Business Inflation Expectations
\n 10:00 Business Inventories
\n 10:00 NAHB Housing Market Index
\n 2:00 PM Fed’s Beige Book
\n 3:00 PM Fed’s Brainard: \u201cFuture of Money in the Digital Age\u201d
\n 4:00 PM Treasury International Capital<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n———————————
\n Good morning. Happy Tuesday. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mixed. Japan, India and Indonesia did well; China and the Philippines were weak. Europe, Africa and the Middle East<\/strong> currently lean to the upside. France, Turkey, Germany, Norway, Spain, the Netherlands and Israel are up; Hungary and Saudi Arabia are down. Futures in the States<\/strong> point towards a positive open for the cash market. <\/span>
\n—————
\nJoin our email list<\/a> – get technical research reports sent directly to you.<\/strong>
\n—————<\/span>
\n The dollar is up. Oil and copper are down. Gold is flat; silver is down. Bonds are up.<\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n U.S. futures are up this morning as the earnings season kicks off with several major financial earnings reports. BlackRock (NYSE:BLK), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), Wells Fargo (NYSE:WFC) and JPMorgan Chase (NYSE:JPM) are scheduled to report before the bell, while regional banks Hancock Whitney (NASDAQ:HWC) and Pinnacle Financial (NASDAQ:PNFP) will report post close. Healthcare majors Johnson & Johnson (NYSE:JNJ) and UnitedHealth (NYSE:UNH) are due to report before the open; United Airlines (NASDAQ:UAL) and J.B. Hunt Transport (NASDAQ:JBHT) from the transport sector will report post close. Dow futures are trading up 0.40%, S&P 500 up 0.40% and Nasdaq up 0.50%.<\/span>
\n EU Negotiator Says Brexit Deal Possible<\/span>
\n EU negotiator Michel Barnier told reporters a Brexit deal “is still this week,” even though reaching an agreement is proving more difficult than anticipated. Barnier says talks have been \u201cintense over the weekend and yesterday\u201d and that \u201cwork has just started now today.\u201d Sterling rose against the dollar following Barnier\u2019s comments.<\/span>
\n Market is eyeing trade news<\/span>
\n Market watchers will keep an eye on trade news after yesterday\u2019s end to Turkey trade negotiations and the U.S. treasury secretary\u2019s warning that China tariffs could go up if there\u2019s no deal by December. However, Mnuchin said he expects to reach a deal by then.<\/span>
\n China consumer inflation up 3%, near six-year high<\/span>
\n A surge in pork prices is largely responsible for Chinese consumer inflation that hit a near-six-year high Tuesday. The country’s consumer price index rose 3% year over year, up from a 2.8% pace in August; nonfood prices rose 1%, but food prices rose 11.2% led by pork that jumped 69.3%. While consumer prices increased at a hot pace, producer prices declined sharper, dropping 1.2% Y\/Y in September vs. 0.8% in August.<\/span>
\n WeWork reportedly favoring JPMorgan rescue over SoftBank<\/span>
\n Struggling WeWork (WE) is favoring a junk debt rescue from banks led by JPMorgan (JPM) over a lifeline from backer SoftBank (OTCPK:SFTBY), Bloomberg reports. JPMorgan’s $5B package would be one of the riskiest offerings in years but could be the last best chance for key private backers to avoid heavy dilution; SoftBank (which already owns a third of WeWork) would offer billions more in equity and debt but take control of the company. With a pulled IPO, WeWork risks running out of cash by November’s end.<\/span>
\n TikTok sets up merely miles from Facebook, poaches employees<\/span>
\n Fast-growing app TikTok has set up office space just miles from Facebook (NASDAQ:FB) headquarters and is increasingly poaching its employees, CNBC notes. TikTok, owned by ByteDance (BDNCE), has moved into space previously held by Facebook’s WhatsApp and has hired more than two dozen Facebookers since 2018, in part using salaries that can be 20% higher. TikTok’s also hiring from Snap (NYSE:SNAP), Hulu, Apple (NASDAQ:AAPL), YouTube (GOOG, GOOGL) and Amazon (NASDAQ:AMZN).<\/span>
\n UAW summons local leaders to Detroit<\/span>
\n The United Auto Workers wants local union leaders in Detroit on Thursday to discuss GM (NYSE:GM) negotiations. Historically, such a meeting indicates either a tentative deal was reached or a vote is needed to pursue a new action. Last Friday, the UAW said it had countered an offer from GM.<\/span>
\n California governor wants rebates for PG&E customers hit by outages<\/span>
\n California Governor Newsom says PG&E (NYSE:PCG) should provide credits or rebates to customers affected by its \u201cfailures in execution\u201d during last week\u2019s planned power outages. Newsom wants the rebates to come from shareholders rather than ratepayers. California\u2019s regulations don\u2019t require the company to cover losses from intentional blackouts.<\/span>
\n What else is happening…<\/span>
\n Credible Labs holders approve Fox (FOX, FOXA) merger deal.<\/span>
\n U.S. steel market a ‘crapshoot’ in 2020, Nucor (NYSE:NUE) CEO says.<\/span>
\n New Turkish sanctions urged over Cyprus gas drilling.<\/span>
\n 737 MAX (NYSE:BA) grounding likely to lift airfares this holiday season.<\/span>
\n Today’s Economic Calendar<\/strong>
\n 4:25 Fed’s Bullard: \u201cThe Federal Reserve’s Monetary Policy Options\u201d
\n 8:30 Empire State Mfg Survey
\n 8:55 Redbook Chain Store Sales
\n 9:00 Fed’s Bostic Speech
\n 12:45 PM Fed’s George: \u201cU.S. Payments System\u201d
\n 3:30 PM Fed’s Daly Speech<\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n ——————————–<\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n Good morning. Happy Monday. Hope you had a good weekend. <\/span>
\n The Asian\/Pacific<\/strong> markets closed mostly up. Japan, China, Hong Kong, South Korea, New Zealand, Taiwan and Thailand all did very well. Europe, Africa and the Middle East<\/strong> are currently mostly down. Denmark is doing well, but Turkey is down more than 4% and Poland, France, Germany, South Africa, Finland, Switzerland, Norway, Spain, Belgium and Portugal are weak. Futures in the States<\/strong> point towards a down open for the cash market.<\/span>
\n—————
\n VIDEO: <\/strong>State of the Market<\/a>
\n—————<\/span>
\n The dollar is up. Oil and copper are down. Gold and silver are up. Bonds are up. <\/span>
\n Stories\/News from Seeking Alpha…<\/span>
\n British Prime Minister Boris Johnson is urging MPs to back whatever deal he secures from Brussels within 24 hours of a planned summit this week between European leaders. The burning issue at this late stage appears to be where the final borders of an independent Ireland and British Northern Ireland will be drawn. On Friday, the EU agreed to enter intense talks with Britain in an effort to break the impasse. An extension beyond October 31 is a possibility.<\/span>
\n Warren pokes Facebook with ad challenge<\/span>
\n Lacking enthusiasm for its policy of no fact-checking in political ads, Presidential hopeful Senator Elizabeth Warren (D-MA) has challenged Facebook (NASDAQ:FB) with ads from her campaign containing the false claim that chief Mark Zuckerberg is backing President Trump’s re-election bid. She is no friend to Big Tech, advocating antitrust action to quell their market dominance. In recently leaked transcripts from a July meeting, Mr. Zuckerberg told employees that he expects a legal challenge if Warren prevails in the election, adding that he expects to win that challenge.<\/span>
\n Lyft sues NYC to block cruising cap<\/span>
\n Following Uber’s (NYSE:UBER) lead, rival Lyft (NASDAQ:LYFT) has filed a lawsuit against the city of New York seeking to deep-six its new rule limiting the time its drivers are allowed to cruise Manhattan without passengers. Ride-hailing service providers are battling cabbies (and their supporters in City Hall) over the lucrative market. Uber has also contested another rule banning the issuance of new licenses to for-hire vehicles through August 2020.<\/span>
\n UAW increases strike pay for workers as agreement with GM remains elusive<\/span>
\n The United Auto Workers (UAW) has increased its weekly payout to General Motors (NYSE:GM) strikers by $25 to $275 as the walkout nears its fourth week with no apparent agreement in sight. The union has also lifted a restriction on members seeking part-time temporary work.<\/span>
\n World Bank cuts growth outlook on India by 20%<\/span>
\n Citing risks in its non-bank financial sector and a cyclical downturn, the World Bank has trimmed its 2020 economic growth forecast for India to 6% from 7.5%. The Indian economy grew at a 5% annual rate in Q2 despite a liquidity crunch, but private consumption dipped to an 18-month low of 3.1%. Industrial output contracted 1.1% in August, the worst month in almost seven years. Growth is expected to rebound to 6.9% in 2021 and 7.2% in 2022.<\/span>
\n Global economic growth hits the skids<\/span>
\n Research conducted by the Brookings Institution and Financial Times points to anemic global economic growth for the foreseeable future, a situation called “synchronized stagnation” by Brookings’ Eswar Prasad. The IMF plans to cut its forecasts, expecting slower growth in 90% of the world this year. Policymakers’ efforts to stoke growth have been ineffective thus far.<\/span>
\n China to double spending on U.S. Ag products – Trump<\/span>
\n President Trump announced a “substantial phase one deal” with China that, he says, includes a commitment to buy $40B-50B per year of U.S. agricultural products as well as agreements on intellectual property and financial services. Prices of soybeans, hogs and cotton rallied prior to the announcement. China is the world’s top consumer of the three commodities.<\/span>
\n SoftBank has financing package to take charge of WeWork<\/span>
\n SoftBank (OTCPK:SFTBY) – already owner of a third of WeWork (WE) – has a financing package to ease the start-up’s cash crunch that would also get SoftBank control of the company, according to reports. The Japanese firm would invest billions more in new equity and debt, and would take a greater role in a potential turnaround – moves that would also further sideline WeWork’s founder and ex-CEO, Adam Neumann.<\/span>
\n AECOM nears $2.4B sale of management services unit<\/span>
\n Construction\/engineering firm AECOM (NYSE:ACM) is closing in on a $2.4B deal to sell its management services business to a group of private equity firms, including Lindsay Goldberg and American Securities, Bloomberg reports. The company has been pressed by activist Starboard Value since June to undertake a strategic review of assets.<\/span>
\n Natural gas futures jump on early snow, chilly forecasts<\/span>
\n Natural gas futures broke a five-day losing streak as snowstorms blanket the Rockies and Northern Plains. Forecasts call for colder-than-normal temps across the western U.S. The November contract is up 3.2% after dropping 5.9% last week.<\/span>
\n What else is happening…<\/span>
\n Sempra Energy (NYSE:SE) near deal to sell Chilean business for $3B.<\/span>
\n PG&E stumbles (NYSE:PCG) with rolling blackouts in California.<\/span>
\n Canopy Growth (NYSE:CGC) divests AusCann (OTCPK:ACNNF) stake.<\/span>
\n Santos (OTCPK:STOSF) poised to buy ConocoPhillips’ (NYSE:COP) N. Australia assets for $1.5B.<\/span>
\n Today’s Economic Calendar<\/strong>
\n No event scheduled.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Friday. The Asian\/Pacific markets closed mostly down. India did well, but China, Hong Kong, South Korea, New Zealand, Australia and the Philippines were weak. Europe, Africa and the Middle East currently lean up. Turkey is up more than 3%, and Kenya, Austria, Sweden and Saudi Arabia are also doing well. Poland is […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/13539"}],"collection":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13539"}],"version-history":[{"count":0,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/13539\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13539"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13539"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13539"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}