Trade and politics remained the overriding constraint to risk appetite heading into the week, but big tech regulation concerns resurfaced this week, adding to the ‘wall of worry.’ Reports emerged that the US regulators were considering a fresh look at antitrust issues at Google and Facebook, sending the Nasdaq spiraling lower on Monday. On top of that global economic data continued to disappoint amid lingering trade tensions, forcing interest rates lower while pulling forward Fed rate cut expectations. Talks between the US and Mexico were reportedly constructive, and President Trump said he sees a good chance of making a deal, but maintained the threat of imposing a 5% tariff on cross-border trade starting Monday, despite resistance from the Chamber of Commerce and many Republicans in Congress.
In corporate news this week, Fiat withdrew its offer to merge with Renault, citing resistance from French government regulators. The FTC and DOJ reportedly are divvying up scrutiny of large tech firms, with the FTC taking the regulatory lead looking into Facebook and Amazon, while the Justice Department will focus on Apple and Google. The House Judiciary Committee is also opening its own probe of practices at the large tech firms. Salesforce beat consensus and raised its EPS outlook, noting increased momentum for its MuleSoft platform. Stitch Fix shares jumped after strong active client numbers boosted quarterly revenue growth. Tiffany’s comparable store sales and margins disappointed, and the jewelry retailer adjusted its outlook lower. Skyworks cut its Q3 outlook, citing the impact of Commerce Department actions against Huawei. Barnes and Noble agreed to be taken private by Elliott Advisors for $6.50/share in a deal valued at $683M after months of speculation about the struggling bookstore’s future. Google bought big data analytics platform Looker for $2.6B in cash in a move to compete in the business intelligence software space.
Macro :
- Joe Biden’s Easy Ride in 2020 Race Hits Pothole in a Bad Week
Keep an eye on :
- BYND US : Beyond Meat Short-Sellers Take a $155 Million Beating in Rally
- DBK GY : Deutsche Bank Downgraded to BBB by Fitch on Continued Difficulty
- DIA SM : Regulator Won’t Start Proceedings Over Ana Botin’s Tweet on DIA
- ENEL IM : Germany to Sell Stakes in Foreign Nuclear Companies: Der Spiegel
- ENGI FP : Germany to Sell Stakes in Foreign Nuclear Companies: Der Spiegel
- ENX FP : Euronext Controls 97.7% of Oslo Bors VPS Capital
- FXPO LN : Ferrexpo Investors Show Discontent With Miner’s Accounts
- FCA IM : Fiat Chrysler Recalls Nearly 300,000 Ram 1500s on Software Flaw
- HDD GY : Heideldruck Seeks Another Strategic Investor: Euro Am Sonntag
- IBE SM : Germany to Sell Stakes in Foreign Nuclear Companies: Der Spiegel
- MS I M : Mediaset, Mediaset Espana to Be Merged Into Dutch Holding
- MS IM : Berlusconi’s Fininvest May Own Over 50% Voting Rights in MFE
- MOSB LN : Gatemore Capital Takes 10% Stake in Retailer Moss Bros: Sky News
- NN NA : Dutch Insurer Vivat ‘Seems Like a Good Deal’ for NN: Degroof
- ALOCA FP : Oceasoft: Accord W/ Banking Partners on Redemption Conditions
- OTE1V FH : Outotec Awarded EU250M Copper Plant for Baikal Mining Company
- UG FP : PSA Is Always Open to New Deals, CEO Tavares Tells Expresso
- RNO FP : Renault Could Abstain on Nissan Governance at Nissan AGM: Source
- RNO FP : *ROSTEC PLANS TO SELL RENAULT ~8% OF AVTOVAZ FOR 10B RUBLES: RIA
- RNO FP : After Fiat Flop, Senard Faces Added Pressure to Fix Renault
- RVLV US : *CITRON SAYS IT EXPECTS REVOLVE STOCK TO TRADE TO $50 ( close $34 +88%)
- RDSA NA : Shell Says St. Fergus Capacity Restored After Unplanned Outage
- SEV FP : Rosneft and Suez to Consider Creation of Joint Venture
- SIE GY : Siemens Mobility Wins ~EU1.1B Order in Russia
- SIE GY : Gazprom, Siemens Discuss Creation of Russian Joint Venture
- TEG LN : *TEN ENTERTAINMENT: WOODFORD CUTS POSITION TO 5.54% VS 10.08%
- TER FP : Terreis Files Buyback Offer for Ordinary, Preference Shares
- UBI FP : EA and Ubisoft Have ‘Most at Stake’ as E3 Summons Gamers to L.A.