Wednesday September 28 Daily Market Primer
|
LAST
|
CHANGE
|
% CHG
|
|
|
18228.3
|
133.47
|
0.74%
|
|
|
5305.71
|
48.22
|
0.92%
|
|
|
2159.93
|
13.83
|
0.64%
|
|
|
1246.38
|
5.44
|
0.44%
|
|
|
2450.6
|
6.14
|
0.25%
|
|
|
16465.4
|
-218.53
|
-1.31%
|
|
|
343.4
|
3.21
|
0.94%
|
|
|
6867.92
|
60.25
|
0.89%
|
|
|
13.13
|
0.03
|
0.23%
|
|
|
1487.91
|
-9.46
|
-0.63%
|
|
|
5412.4
|
6.5
|
0.12%
|
|
|
2987.86
|
-10.31
|
-0.34%
|
|
|
23619.65
|
47.75
|
0.20%
|
|
|
28292.81
|
69.11
|
0.24%
|
|
|
4449.31
|
50.63
|
1.15%
|
|
|
10476.46
|
114.98
|
1.11%
|
|
|
16309.28
|
174.57
|
1.08%
|
|
|
8767.8
|
79.6
|
0.92%
|
|
|
0.274
|
0/32
|
|
|
|
0.762
|
-1/32
|
|
|
|
1.138
|
-3/32
|
|
|
|
1.572
|
-4/32
|
|
|
|
2.296
|
-12/32
|
|
|
|
-0.689
|
0/32
|
|
|
|
-0.13
|
-3/32
|
|
|
|
45.08
|
0.41
|
0.92%
|
|
|
46.52
|
0.55
|
1.20%
|
|
|
2.981
|
-0.069
|
-2.26%
|
|
|
352.53
|
2.13
|
0.61%
|
|
|
2152.75
|
0
|
0.00%
|
The financial press overwhelming called the
debate for Clinton yesterday. I know you didn’t get enough debate chatter, so
here’s a sample of headlines from major financial and mainstream publications
yesterday morning just in case you didn’t have time to read them all.
Bloomberg: “Trump Allies Move to Stem Damage from Strong Clinton Debate”
WSJ: ”Undecided Voters Cool on Trump but Boost for Clinton Is Uncertain”
Barron’s: “Markets Cast Ballots For Clinton After Debate”
South China Morning Post: “Cybersecurity, terrorism, trade and nuclear threats ... why US presidential debate couldn’t ignore China”
Financial Times: “Clinton gets under Trump’s skin in first
presidential debate”
Fox News: :Trump, Clinton clash on trade, taxes,
temperament”
Reuters: “Clinton assails Trump in Blistering U.S
presidential debate”
The Economist: “The first presidential debate a win for
Hillary Clinton”
Business Insider: “Hillary Clinton was the clear winner
of first presidential debate”
New York Times: “Trump and Clinton Clash on Jobs, Race, and Temperament”
US
core capital goods rose .6% last month, vs a -.2% forecast, in another positive data
point for the economy. Wells Fargo chief John Stumpf is forfeiting $42
million in stock grants, as Congress gets the clawback they have been
demanding. We’ll see if the sacrifice allows him to keep his job. The
German government said again they are not bailing out Deutsche Bank and
the bank said again they don’t need a bailout, apparently
convincingly, since the stock rallied off recent lows.
Earlier rumors that
Amazon wants to knock the package carriers out of their supply chain may be
true, according to On The Way, below.
For
the record,
I misspelled Milan (Pharmaceuticals) yesterday, its Mylan. Obviously I was
thinking of Italian football club AC Milan.
Here’s
the news:
Oil talks
West Texas Intermediate crude remains below $45 a barrel as OPEC members
begin their talks in Algiers today. Iran's oil minister said ahead of the meeting
that his country is unwilling to freeze production at current
levels and has no intention of reaching an accord this week, but hinted that an
agreement could be struck at the next OPEC meeting that's taking place
in Vienna this November. Saudi Oil Minister Khalid Al-Falih
echoed the Iranian position on a November deal, saying his country would be a
"willing partner" in a freeze agreement.
The Russian ruble dropped this morning as the prospect of
lower-for-longer oil prices increased concerns for growth prospects in that
country which receives about half of its budget revenue from oil and gas sales.
Bank of England easing
Bank of England Deputy Governor Minouche Shafik, in a speech
at the Bloomberg Markets Most Influential
Summit in London on Wednesday, said that more easing would probably be needed for the
U.K. following the Brexit vote. While latest figures on consumer confidence show some recovery from
the post-vote drop, the pound is still showing little sign of improvement as it
is set for its longest run of quarterly losses since 1984.
Draghi, Yellen to face lawmakers European Central Bank
President Mario Draghi is set to face some of his biggest critics today when he answers questions
from lawmakers in the lower house of the German parliament. In the four years
since Draghi last met German lawmakers, dissatisfaction with the ECB's easing
policies has grown in Europe's largest economy, with the country's finance
minister urging members of parliament to go tough on the ECB president. At 10 a.m.
ET, Fed Chair Janet Yellen is due to testify before the House Financial
Services Committee, with speeches from regional Fed chiefs Charles Evans and
James Bullard also planned.
Markets recover
Overnight, the MSCI Asia Pacific Index declined 0.9 percent, with Japan's Topix
index dropping 1.4 percent as more than half of
the companies on the benchmark went ex-dividend. In Europe, the Stoxx 600 Index
had risen by 0.6 percent by 6:16 a.m. ET as
investors start to view the recent selloff as overdone. S&P 500
futures were broadly unchanged ahead of durable goods
orders, due at 8:30 a.m. ET.
Deutsche Bank bounce
Shares in troubled German lender Deutsche Bank AG are staging a
rally this morning, gaining 1.9 percent by 6:20 a.m. following
reassurances from CEO John Cryan that the bank would not need to raise new
capital and the agreement by the bank to sell its U.K. insurance business for 935
million euros ($1.2 billion). The problems at the bank, coupled with those at
carmaker Volkswagen AG, are so large that they now risk undermining the German
economy, which has been the driver of European economic growth for some time.
Germany denies reports of a possible Deutsche Bank bailout. Germany's finance ministry says it's not working on a rescue plan for Deutsche Bank, contrary to an earlier report from the German newspaper Die Zeit.
Deutsche Bank told employees not to worry. In a memo sent to employees, the German investment bank said it had no intention to settle with the US Department of Justice at a price "anywhere near the opening position of $14 billion" and that is had no plans to raise capital. It also said: "CDS spreads which reflect risk of our senior unsecured debt are no longer an especially reliable proxy for probability of default. Thin volumes amplify price movements."
Janet Yellen to testify before the House Financial Services Committee. While most of the questions are expected to be about financial regulation, Yellen could also be asked about topics ranging from monetary policy to bank stress tests to the election, The Wall Street Journal says.
Wells Fargo is clawing back cash from its CEO. Wells Fargo CEO John Stumpf will forfeit $41 million in stock awards as a result of the bank's scandal over sales practices, the Associated Press reports.
RBS has agreed to a "toxic" mortgage settlement. The bank has agreed to pay $1.1 billion to settle claims it mis-sold toxic mortgage security products to the US Central Federal Credit Union and Western Corporate Federal Credit Union in the run-up to the 2008 financial crisis.
Apple is already developing the iPhone 8. An employee at Apple's office in Herzliya, Israel, told Business Insider's Sam Shead that all new products were worked on at the facility and that the iPhone 8 would have a radical redesign.
Nike's future orders missed. The athletic-apparel giant beat on both the top and bottom lines but saw worldwide future orders up 7%, below analyst expectations for an 8% increase. Shares of Nike finished the after-hours session down by about 3%.
he Day After
While Hillary Clinton sought to capitalize on her strong performance in the most-watched presidential debate in history, Mr. Trump blamed a faulty microphone and what he called unfair questions from moderator Lester Holt for an appearance that even GOP strategists deemed uneven and insufficient. With the first debate behind them, both candidates fanned out into swing states and began plotting for the next showdown, on Oct. 9 in St. Louis. Mrs. Clinton looked to bolster her standing among female and Hispanic voters, as Mr. Trump continued to stumble over his past comments on 1996 Miss Universe Alicia Machado. Meanwhile, we report that Mr. Trump’s tactic of bluntly defending his business practices presents risks, particularly among centrist voters who may not see the rough and tumble of capitalism as a political virtue.
Clawback Coming?
Wells Fargo Chairman and Chief Executive John Stumpf will forfeit $41 million in pay because of the bank’s burgeoning sales scandal, marking one of the biggest rebukes to the head of a major U.S. financial institution. The bank’s board moved to rescind pay for Mr. Stumpf and former community-banking head Carrie Tolstedt ahead of a hearing of the House Financial Services Committee tomorrow. Wells Fargo’s board said Ms. Tolstedt, who oversaw retail banking during bad behavior there, will forfeit unvested equity awards valued at $19 million. Clawbacks became a big focus of a Senate Banking Committee hearing last week into the bank’s sales tactics, which earlier resulted in a $185 million fine and regulatory action. The awards being forfeited by Mr. Stumpf represent about a quarter of the total compensation he has accrued over his nearly 35 years at the bank.
On Its Way
Amazon, which already sells everything, now wants to ship everything, in a brazen challenge to America’s freight titans UPS and FedEx. Tackling the delivery business, Amazon executives say, is a logical way to add delivery capacity—particularly during the peak Christmas season. But interviews with nearly two dozen current and former Amazon managers and business partners indicate the retailer has grander ambitions than it has acknowledged. The company’s goal is to one day haul and deliver packages for itself as well as other retailers and consumers—potentially upending the traditional relationship between seller and sender. Amazon currently delivers its own packages from roughly 70 facilities in 21 states, having built most of them in the past two years, and could save $1.1 billion annually if it stopped using UPS and FedEx. But executives at the freight giants are skeptical, and so are analysts and logistics experts.
Stock markets around the world trade mixed. Japan's Nikkei (-1.3%) trailed in Asia, and Germany's DAX (+0.8%) leads the gains in Europe. S&P 500 futures are down 2.00 points at 2,150.75.
Blackberry reports ahead of the opening bell. The smartphone maker is expected to post an adjusted loss of $0.05 a share on revenue of $390.2 million, according to the Bloomberg consensus.
US economic data trickles out. Durable
goods orders will be released at 8:30 a.m. ET before Department of Energy
crude-oil inventories are released at 10 a.m. ET. The US 10-year yield is up 2
basis points at 1.58%.
The 'Trump trade.' Short peso, buy ruble.
China's ambitions to make the yuan the world's go-to currency.
Wells Fargo's CEO forfeits $41 million in fight to keep his
job.
Clinton tries to maximise her debate advantage with Trump on
defensive.
Shimon Peres, Israeli leader who won Nobel prize, dies at
93.
|
Elon Musk seeks Mars explorers with $200,000, and a
willingness to risk death.
European parliament's lead Brexit negotiator tries to explain U.K. politics.
|
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posted by Rich Barnett @ 7:18 AM
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