2019 commenced with a bang as markets gyrated in much the same fashion as the closing weeks of 2018. key China PMI reading dropped into contraction territory while European and US data continued to soften. The US government remained in a partial shutdown and the prospects for ending the standoff anytime soon appeared remote. The Japanese Yen saw extreme upside volatility in the wake of the Apple news highlighting how global liquidity conditions maybe exacerbating capital market swings in the wake of central banks attempts to wean off of unconventional measures, namely quantitative easing. US rates fell aggressively after the December ISM reading dropped at the fastest pace since October 2008. For the first time since the financial crisis the Fed funds rate briefly traded above that of the yield on the 2-year Treasury note prompting more forecasts for an eventual rate cut by year’s end. Breadth on both the NYSE and NASDAQ widened to levels not seen in recent weeks as US stock indices rebounded into the weekend. Rising oil and copper prices supported the positive tone in equities, and for the week the S&P gained 1.9%, the DJIA added 1.6%, and the Nasdaq rose 2.3%. Leading corporate headlines during this holiday-shortened week was news that Bristol-Myers would acquire Celgene for $74B, which would make it the largest health-care deal ever. Apple slashed its outlook for the first time in the iPhone era, noting poor demand in China and unexpectedly less frequent model upgrades. Samsung announced plans to cut its chip inventory in order to maintain tight supplies as demand is expected to slow. Tesla shares fell after it reported a miss on Q4 targets for Model 3 and implemented a price cut for all vehicles to offset tax credit reductions. Delta weighed on the transports midweek after trimming its Q4 revenue outlook. Netflix named former Activision and Disney executive Spencer Neumann as its new CFO. Shares of winter clothing manufacturer Canada Goose lifted on the news that its store opening in China was well received.
Macro :
- Macron Spoke With May on Brexit, Confirmed November Deal Backing
- Juncker Says EU Has Plans for Unemployment Insurance: Welt
- Italy Coalition Will Focus on Infrastructure Plans, Di Maio Says
- Goldman Sachs Asks What If Lebanon Is Forced to Restructure Debt
Keep an eye on :
- AD NA : Ahold Delhaize’s Stop & Shop To Buy King Kullen Grocery Co.
- AZA IM : Alitalia bidder FS likely to be given further month to prepare final offer, industrial plan
- AMRN US : Amarin Slides Post-Market After Soft 2019 Revenue Outlook
- BT/A LN : BT ramps up takeover defence with help from Goldman Sachs, Robey Warshaw - The Times
- EPO LN : Earthport Investors Argue They Can Do Better Than Visa’s Offer
- GE US : GE Options Active Amid Report Apollo Eyeing Jet-Leasing Unit
- GLPG NA : Fibrocor & Galapagos Sign Partnership for Fibrosis Diseases
- INA PL : Caixa Geral Sells Stake in Inapa to Portuguese State for EU15.8m
- RADH SS : Radisson Board Evaluates Revised Offer From Jin Jiang
- RNO FP / 7201 JP : Key Nissan Executive Jose Munoz Taking Leave of Absence: WSJ
- UBSG SW : UBS Said in Talks With Meissner as Potential Ermotti Successor