Global stocks opened the week on a positive note after President Trump refrained from slapping tariffs on Mexico, for now, but continued to espouse the utility of using tariffs as a blunt tool to address what he sees as unbalanced trade around the world. Monday also saw significant deals in the tech, defense and energy sectors revive animal spirits, pushing the S&P back within 2% of its all-time high. There was little new to report on the US/China trade spat and it remains unclear whether Presidents Xi and Trump will meet and the G20 later this month. Trump did indicate he had no deadline for additional China tariffs at this time, but only after saying early in the week that if Pres Xi doesn't come to the G20, he would put the next $300B of tariffs into effect immediately.
After WTI prices dropped following mid-week inventory readings that showed crude stockpiles continued to climb, on Thursday investors woke to find oil prices bouncing following an attack on two tankers sailing from Saudi Arabia near the Strait of Hormuz. US and UK officials were quick to point the finger squarely at Iran. By Friday, US indices opened lower and gold prices rose to a new high for the year. Chinese industrial production data disappointed investors while geopolitical concerns continued to rise after the U.S. released a video it said proved Iran was involved in the attacks on the oil tankers.
For the week, the S&P gained 0.5%, the DJIA added 0.4%, and the Nasdaq rose 0.7%. Merger announcements took top billing in corporate news this week. United Technologies announced a plan to combine its aerospace business with Raytheon in an all-stock merger that would create a new manufacturing behemoth, though President Trump noted he was ‘a little concerned’ about the deal’s effects on competition in the defense sector. Salesforce revealed its plans to acquire Tableau Software for $15.7B in an all-stock deal in order to diversify further into analytics. Ten state attorneys general, led by New York AG James, filed a lawsuit to block the Sprint/T-Mobile merger, though the two companies vowed to fight the states’ efforts if they do receive approval from the DOJ. Broadcom’s earnings report blunted a rebound in the chip sector as management confirmed that the US/China trade dispute and the ban on Huawei are hurting business to the tune of a $2B cut in FY guidance. The IPO market continued to be red hot, with the launches of CrowdStrike, Fiverr, and Chewy all drawing strong interest from investors.
Macro :
- Iran to Announce Further Retreat From Nuclear Deal on Monday
Keep an eye on :
- AIR FP : Airbus Warns European Governments to Prepare for No-Deal Brexit
- AIR FP : CFM Pledges to Have Engine Ready If Boeing Speeds 737 Successor
- ALV GY : Allianz Buys 49% Stake in Hudson Yards Building for $384 Million
- AZN LN : AstraZeneca to Invest $630 Million in South Korean Health Sector
- CHWY US : Chewy Tops LendingClub for Decade’s Second-Best Mega-IPO Pop (1)
- ENGI FP : GIP in Talks to Buy Engie’s Indian Solar Power Business: Mint
- ENX FP : Caisse des Dépôts to Buy Euronext Shares from ABN Amro, SocGen
- FCA IM : Fiat Chrysler, Renault May Seek to Restart Merger Talks: Sole
- GBT US : Global Blood Drops as Sickle-Cell Data Fail to Quiet Critics
- HIAG SW : Hiag & Six End Talks About Secure Swiss Cloud Service
- IAM MC : Maroc Telecom’s Offering Prices at 125.3 Dirhams a Share
- KER FP : Kering Stock Buyback’s Second Tranche To Begin June 17
- KIE LN : cites Times report that Kier plans to sell housebuilding unit
- KBX GY : Knorr-Bremse May See 2H Truck Unit Slowdown: Euro am Sonntag
- LLOY LN : Lloyds Sells Out of Philip Green’s Arcadia Group: FT
- MRK GY : Merck KGaA to Hold Off From Big M&A in Short Term, Boersen Says
- NZYMB DC : Novozymes Targets 5% or Above Annual Organic Sales Growth
- OCI NA : OCI Confirms Talks With Adnoc on MENA Fertilizer Assets
- RBS LN : RBS Sees Positive Financial Impact From Merger of Saudi Banks
- RNO FP : Fiat-Renault Deal Revival Hinges on Nissan Backing, French Role
- ROG SW : Bristol-Myers, Roche Settle Patent Suit on Tecentriq Cancer Drug
- SAF FP : CFM Pledges to Have Engine Ready If Boeing Speeds 737 Successor
- SGO FP : Saint-Gobain Cancels 6 Million Held Shares
- SESG FP : Verizon CEO Asks FCC Chief to Move ‘Quickly’ on C-Band Airwaves
- SRP LN : Babcock’s Board Rejects Serco’s Merger Proposal, Times Says
- TESB BB : Tessenderlo Buys Operator of T-Power From Itochu Unit; No Terms
- TIT IM : Telecom Italia to Start Voluntary Delisting of ADSs From NYSE
- VOLVB SS : Volvo Seen Offering Better Value Than Traton, Analysts Say (1)
- VOW3 GY : Volkswagen Tennessee Workers Reject Union, Dealing Blow to UAW
- WDI GY : Wirecard and Crédit Agricole payment services announce next stages of strategic partnership