Equity markets took a breather on fairly low volatility despite another heavy week of corporate earnings to be digested. Potential progress on some global issues hit snags as President Trump cut short his Hanoi summit without reaching any new agreement with North Korea, and as PM May reportedly conceded that the Brexit will have to be delayed from March 29 even if the Parliament supports her plan later this month. Washington was gripped by Congressional testimony from former Trump fixer Michael Cohen, as well as hearings with Fed Chair Powell and US Trade Rep Lighthizer who agreed that the economy looks healthy and would be helped by a resolution to trade tensions.
In corporate news this week, some key earnings emerged from the retail space. JCPenney shares lifted after posting stronger than anticipated earnings and laying out a plan to shutter some stores. L Brands tumbled after missing on earnings and guiding a disappointing FY19 EPS number. Macy’s Q4 beat on the top and bottom line and the company announced it would trim 100 management positions and cut $100M in annual costs. Gap Inc. notched a profit beat and announced plans to spin off its Old Navy division to separate into two independent publicly traded companies. A spate of M&A deals hit the corporate news space this week. Roche boosted its gene therapy portfolio with its acquisition of Spark Therapeutics for $4.3B. GE sold off its life sciences business to Danaher for $21.4B. eBay initiated a strategic review of its asset portfolio amid pressure from investors. The grocery store sector slumped on Friday after a report that Amazon is reportedly launching a new line of grocery stores with a lower price point than its Whole Foods division. Shares of Tesla sold off sharply after the car company made good on its long-promised $35K price point for a pared down version of the Model 3 sedan.
Macro :
- Italy’s League Gains Ground in Ipsos Poll as Five Star Slips
- Goldman, JPMorgan Still See Upside in China Assets After Rally
- May Gets Boost as She Seeks Approval for EU Deal: Brexit Update
- Mueller’s Final Report Will Ignite an Epic War Over Disclosure
- France Plans 5% Digital Tax as Governments Chase Internet Giants
Keep an eye on :
- BMW GY : BMW Group U.S. February Sales Climb 0.2% to 23,558 Vehicles
- BP/ LN : Bidders Said to Emerge In BP’s $7 Billion U.S. Shale Asset Sale
- DAI GY : Mercedes-Benz U.S. Luxury Auto Sales Down 12.5% in February
- DIA SM : DIA Board: LetterOne Capital Increase Doesn’t Solve Co’s Needs
- FB US : Facebook Sues China-Based Companies for Selling Fake Accounts
- FRE GY : Akorn Says to Still Defend Against Fresenius’s Remaining Claim
- III LN : 3i, Greene King, Takeaway.com to Be Added to Stoxx Europe 600
- ISAT LN :
- LIN GY : Linde Delays 10-K Filing; Required Added Time Due to Merger
- LOK LN : Lok’nstore Chairman Sells Shares, Cites Investor Buying Interest
- RR/ LN : Rolls-Royce Seeks Buyer for Nuclear-Equipment Unit: Sunday Times
- RYA ID : Ryanair in Pact With German Pilot Union on Pay, Allowances
- TIT IM : Telecom Italia Sparkle Names Mario Di Mauro New CEO
- UCB BB : Presented positive data from the Phase 2b BE ABLE extension study of bimekizumab in patients with moderate-to-severe chronic plaque psoriasis
- VAO GY : Vapiano to Slow Pace of Restaurant Openings: CEO to Focus
- VOw3 GY : Volkswagen of America Reports Feb. 2019 Sales Results Down 3.6%
- VOW3 GY : German Car Industry to Invest $45 Billion in Electric Vehicles
- VOW3 GY : Volkswagen Brand’s Profitability Falls in 2018: Spiegel