>>> Berkshire Hathaway (BRK.A/B) previews 13F Quarterly Report

Berkshire Hathaway (BRK.A/B) previews 13F Quarterly Report to be released tomorrow (205.17   -1.46)

  • "There will likely be press reports emphasizing changes -- upward or downward -- in the shares owned in various companies. With a few exceptions, Berkshire wishes to avoid owning 10% or more of an investee's shares. Since many investees are repurchasing these shares this intention sometimes requires Berkshire to make minor sales to avoid hitting the 10% threshold. During the second quarter this self-imposed limit caused Berkshire to sell some minor amounts of equity holdings in the banking and the airlines industries, while Berkshire was purchasing shares of other companies in the same industries. These buy and sell decisions did not reflect our investment management's views as to the relative attractiveness of the bought and sold securities but were rather a response to the 10% limitation. Similar situations may occur in future quarterly reports as Berkshire continues to have 9% plus holdings in a number of equity securities that are active repurchasers of their shares."
  • Briefing Note: prior qtrly filing included airlines such as LUV, DAL, UAL, AAL and banking names such as WFC, BAC, USB, GS, BK, MTB

>>> Greenlight Capital (David Einhorn ) discloses updated portf

Greenlight Capital (David Einhorn ) discloses updated portfolio positions in 13F filing: New GPS BBY DLTR positions

Highlights from 2018 Q2 filing as compared to 2018 Q1 filing:
  • New positions in: GPS (~0.13 mln shares), BBY (~0.05 mln), DLTR (~0.05 mln), TJX (~0.05 mln), DG (~0.04 mln)
  • Increased positions in: IAC (to ~0.33 mln shares from ~0.25 mln shares)
  • Maintained positions in: GRBK (~24.12 mln shares), GM (~21.16 mln shares), ESV (~20 mln shares), BHF (~11.58 mln shares), CCR (~5.49 mln shares), AABA (~1.76 mln shares)
  • Closed positions in: ODP (from ~2.1 mln shares), CEIX (from ~1.17 mln), BLMN (from ~0.22 mln), ANF (from ~0.21 mln), SFM (from ~0.21 mln), URBN (from ~0.14 mln), TPR (from ~0.11 mln)
  • Decreased positions in: MU (to ~0.28 mln shares from ~3.35 mln shares), CNX (to ~7.63 mln from ~10.64 mln), AER (to ~4.06 mln from ~6.55 mln), CNDT (to ~1.54 mln from ~3.85 mln), DSW (to ~0.21 mln from ~1.26 mln), VOYA (to ~2.9 mln from ~3.91 mln), TWTR (to ~1.6 mln from ~2.51 mln), MYL (to ~6.86 mln from ~7.65 mln)

>>> Omega Advisors (Leon Cooperman) discloses updated portfolio 13F Filing

Omega Advisors (Leon Cooperman) discloses updated portfolio positions in 13F filing: New MGY NRG LEN positions, Closed NAVI, NYCB, BMY, CLF, WFC

Highlights from 2018 Q2 filing as compared to 2018 Q1 filing:
  • New positions in: MGY (~1.5 mln shares), NRG (~1.27 mln), LEN (~0.63 mln), CZR (~0.53 mln), FGP (~0.43 mln), MPC (~0.43 mln), CVS (~0.41 mln), IMMU (~0.4 mln), WRD (~0.4 mln), IQV (~0.38 mln)
  • Increased positions in: NBR (to ~9.79 mln shares from ~8.34 mln shares), FTSI (to ~1.35 mln from ~0.27 mln), FRAC (to ~3.79 mln from ~2.97 mln), SBGI (to ~2.65 mln from ~1.89 mln), TRN (to ~1.89 mln from ~1.43 mln), TMHC (to ~0.75 mln from ~0.47 mln), C (to ~0.94 mln from ~0.68 mln) MU (to ~0.52 mln from ~0.27 mln), ASH (to ~1.21 mln from ~1.01 mln), CDEV (to ~0.6 mln from ~0.47 mln)
  • Maintained positions in: FDC (~7.74 mln shares), UAL (~2.69 mln shares), PE (~2.37 mln shares), DWDP (~1.18 mln shares), MSFT (~1.04 mln shares), GOOG.L (~0.15 mln shares)
  • Closed positions in: NAVI (from ~1.5 mln shares), NYCB (from ~0.75 mln), BMY (from ~0.47 mln), CLF (from ~0.47 mln), WFC (from ~0.41 mln), FOLD (from ~0.37 mln), IQ (from ~0.25 mln), NINE (from ~0.23 mln), GLPI (from ~0.2 mln)
  • Decreased positions in: AMCX (to ~2.74 mln shares from ~3.1 mln shares), HK (to ~0.35 mln from ~0.7 mln), VVV (to ~1.73 mln from ~2.07 mln), MXL (to ~2.04 mln from ~2.37 mln), HES (to ~1.05 mln from ~1.36 mln), SHPG (to ~0.12 mln from ~0.41 mln), ANDV (to ~0.11 mln from ~0.39 mln), AER (to ~1.13 mln from ~1.38 mln), DISH (to ~1.04 mln from ~1.22 mln)

>>> Asian Update

Asia Market Update: China July data misses market expectations amid trade frictions, unemployment rate rises


General Trend:
-Asian markets show stability following losses on Monday; overall trading is mixed
-Chinese equity markets decline in early trading

***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened +0.3%
- ASX 200 Energy index +1.2%, Utilities +1.1%, Financials +1%, Consumer Discretionary +0.9%, Resources +0.8%; REIT -0.2%
- (AU) Australia Jul NAB Business Conditions: 12 v 15 prior; Confidence: 7 v 6 prior
- (AU) Australia sells A$150M v A$150M indicated in Nov 21 2027 indexed bonds, avg yield 0.7099%
- (NZ) New Zealand Fin Min Robertson: Domestic economy has strong fundamentals

China/Hong Kong
-Shanghai Composite opened -0.2%, Hang Seng flat
-Hang Seng Industrial Goods index -4.5%, Info Tech -3.6%, Materials -1.8%, Services -1.5%, Consumer Goods -1.3%, Property/Construction -1%, Financials -0.5%
- (CN) CHINA JUL INDUSTRIAL PRODUCTION Y/Y: 6.0% V 6.3%E
- (CN) CHINA JUL FIXED ASSETS INVESTMENT (EX RURAL) YTD Y/Y: 5.5% V 6.0%E (new multi-year low)
- (CN) China Jul Retail Sales Y/Y: 8.8% v 9.1%e: YTD Y/Y: 9.3% v 9.4%e
- (CN) CHINA JUL SURVEYED JOBLESS RATE: 5.1% V 4.8% PRIOR
- (CN) China Stats Official: Economic operation steady, with some changes in July; economic growth is still within a reasonable range, which is hard won
- (CN) CHINA PBOC SETS YUAN REFERENCE RATE: 6.8695 V 6.8629 PRIOR (weakest CNY fix since May 2017)
- (CN) China PBoc Open Market Operation (OMO): Skips OMO (18th straight skip)
- (CN) China Ministry of Commerce (MOFCOM): To evaluate US Act of Foreign Investment
- (CN) China Foreign Ministry: Situation in Xinjiang is stable
- (CN) China should prepare for free-floating yuan currency (CNY) framework - Chinese Press

Japan
-Nikkei 225 opened +0.9%
- TOPIX Electric Appliances index +1.2%, Info & Communications +1.2%, Real Estate +1%
- (JP) Japan Jun Final Industrial Production M/M: -1.8% v -2.1% prelim; Y/Y: -0.9% v -1.2% prelim

Korea
-Kopsi opened +0.1%
- (KR) North Korea state media: confirms will hold new summit meeting with South Korea in Sept

Other
- (ID) Indonesia said to hold cabinet meeting related to FX reserves

North America
-US equity markets ended lower: Dow -0.5%, S&P500 -0.4%, Nasdaq -0.3%, Russell 2000 -0.7%
-S&P500 Energy -1.3%, Materials -1%




***Levels as of 01:30ET***
- Nikkei 225, +1.9%, ASX 200 +0.7%, Hang Seng -1.1%; Shanghai Composite -0.5%; Kospi +0.5%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.3%, Dax +0.3%; FTSE100 +0.2%
- EUR 1.1415-1.1394; JPY110.88-110.58; AUD 0.7285-0.7260 ;NZD 0.6606-0.6570
- Aug Gold +0.3% at $1,201/oz; Sept Crude Oil +0.4% at $67.48/brl; Sept Copper -0.3% at $2.728/lb

>>> US After Hours Summary: VERI -24.7%, SWCH -22%, VIPS -9.4%, HUYA -


After Hours Summary: VERI -24.7%, SWCH -22%, VIPS -9.4%, HUYA -3.5%, YY -3.3% lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to news: GTE +9.1% (Director disclosed the purchase of ~78K shares worth ~$263K), SJW +7.3% and CWT +6% (California Water Service raises proposal to acquire SJW to $70.00 per share in cash), ARQL +4% (preclinical study data for ARQ 531, the rationally-designed, reversible inhibitor of both wild type and C481S-mutant Bruton's tyrosine kinase was published), CSIQ +3.1% (ahead of earnings), AKBA +2.4% (ticking higher - initiated with Outperform at Raymond James), YEXT +1.5% (initiated with Buy and $27 tgt at SunTrust), NANO +1.2% (after 8% move higher on conference call commentary), WTI +1.1% (CFO Gibons retires; company appoints Janet Yang CFO), ABX +0.9% (NovaGold Resources / Barrick Gold's Donlin Gold project received major federal permits), OSTK +0.8% (after relinquishing last week's earnings related gains - closing down 14% on the day), SYF +0.7% (Synchrony Financial and Lowe's announce multi-year extension of their strategic partnership)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: VERI -24.7%, SWCH -22%, VIPS -9.4%, HUYA -3.5%, YY -3.3%

Companies trading lower in after hours in reaction to news: SAIL -2.4% (files for 12.5 mln share common stock offering by selling shareholders), CB -1.1% (downgraded to Sell at Deutsche Bank), SGMS -1.1% (initiated with Underperform at Credit Suisse)

>>> Baupost Group (Seth Klarman) discloses updated portfolio positi


Baupost Group (Seth Klarman) discloses updated portfolio positions in 13F filing: New T, TRCO, SBGI, positions; Closed PBF, FWP, IMOS

Highlights from 2018 Q2 filing as compared to 2018 Q1 filing:
  • New positions in: T (~9.48 mln shares), TRCO (~3 mln), SBGI (~2.57 mln), TBIO (~1.92 mln), SHPG (~0.1 mln)
  • Increased positions in: FOXA (to ~39.42 mln shares from ~26.59 mln shares), TMQ (to ~13.05 mln from ~10.6 mln), FOX (to ~13.61 mln from ~11.43 mln), PCG (to ~4.5 mln from ~3.15 mln), ABC (to ~1.87 mln from ~1.32 mln)
  • Maintained positions in: CLNY (~49.69 mln shares), SYF (~29.3 mln shares), AR (~26.59 mln shares), VSAT (~13.73 mln shares), QRVO (~11 mln shares), AGN (~4.95 mln shares), PXD (~4 mln shares)
  • Closed positions in: PBF (from ~7.92 mln shares), FWP (from ~2.85 mln), IMOS (from ~0.93 mln)
  • Decreased positions in: LNG (to ~14.2 mln shares from ~20.73 mln shares)

>>> US Close Dow -0.50% S&P -0.40% Nasdaq -0.25% Russell -0.68%


Closing Market Summary: S&P Registers Fourth Straight Decline

The S&P 500 notched its fourth straight loss on Monday, sliding 0.4%, as the Turkish lira extended Friday's tumble, causing further concerns over the financial health of lenders with heavy exposure to the economically-struggling country. The Nasdaq slipped 0.3%, and the Dow declined 0.5%.

Turkey's central bank tried to shore up the country's financial system, but it did little to stop the lira's free fall. After dropping nearly 16.0% against the dollar on Friday, the lira fell another 8.7% on Monday, hitting a new all-time low and extending its five-month decline to roughly 80%. India's rupee, another emerging market currency, also hit a new all-time low against the dollar, losing 1.3%.

On Wall Street, most S&P sectors finished in negative territory. Financials, energy, and materials were the worst-performing sectors, losing between 1.0% and 1.2% apiece. However, no other group declined more than 0.5%. Health care (unch) and utilities (+0.1%) were the only groups to finish in the green.

The top-weighted technology sector got off to a solid start, adding as much as 0.9%, but weakened as the day wore on, eventually settling lower by 0.2%. Still, the group's relatively upbeat performance helped keep the S&P 500's loss in check. Within the group, tech giant Apple (AAPL 208.87, +1.34) was a top performer, adding 0.7%.

In corporate news, the CEO of Tesla (TSLA 356.41, +0.92, +0.3%), Elon Musk, attempted to clarify last week's tweet about taking Tesla private, saying that his claim that funding has been secured is based on repeated conversations with Saudi Arabia's sovereign wealth fund. Meanwhile, President Trump encouraged boycotting Harley-Davidson (HOG 41.38, -1.87, -4.3%) if it moves its manufacturing overseas.

Elsewhere, U.S. Treasuries sold off, sending the benchmark 10-yr yield two basis points higher to 2.88%; West Texas Intermediate crude futures lost as much as 2.8% in intraday trading before closing lower by 0.5% at $67.28/bbl; and the CBOE Volatility Index spiked 13.4% to 14.92, hitting its highest level in more than five weeks.

Investors did not receive any economic data on Monday.

  • Nasdaq Composite +13.3% YTD
  • Russell 2000 +9.1% YTD
  • S&P 500 +5.6% YTD
  • Dow Jones Industrial Average +1.9% YTD

>>> Asian Update

Asia Market Update: Lira and emerging market currencies remain under pressure: Markets pare some of losses amid action from Turkey

General Trend:
- Asian equity markets trade generally lower amid continued declines in the Turkish Lira (TRY)
- Shanghai Composite Property index drops over 1%
- Yen (JPY) trades broadly firmer as equities decline
- South African Rand (ZAR) hits 2-year low, EM and Asian currencies trade broadly weaker
- Emerging market bond yields rise
- China PBoC continues to elect not to drain liquidity, skips open market operation for 17th straight session
- Singapore revised Q2 GDP growth lower



***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened -0.2%
- ASX 200 Resources index -1%, REIT -0.9%, Consumer Discretionary -0.7%, Financials -0.5%
- (AU) Australia sells A$400M v A$400M indicated in 2037 bonds, avg yield 2.867%, bid to cover 2.2x
- (NZ) New Zealand Jul Performance of Services Index: 55.1 v 52.8 prior

China/Hong Kong
-Shanghai Composite opened -0.9%, Hang Seng -1.4%
- Hang Seng Services index -3.7%, Materials -3%, Property/Construction -2.6%, Industrial Goods -2.6%, Info Tech -2.6%, Energy -2.2%, Telecom -1.9%, Financials -1.7%
- (CN) China July New Yuan Loans (CNY): 1.45T v 1.225Te
- (CN) CHINA PBOC SETS YUAN REFERENCE RATE: 6.8629 V 6.8395 PRIOR (weakest CNY fix since May 2017)
- (CN) China PBoC Open Market Operation (OMO): Skips open market operation (17th straight skip)
- (CN) China PBOC Q2 monetary policy report: reiterates PBOC has maintained a 'prudent' and 'neutral' monetary policy (released on Aug 10th)

Japan
-Nikkei 225 opened -0.8%
-TOPIX Marine Transportation index -3.4%, Electric Appliances -2.5%, Iron & Steel -2.4%, Securities -2.2%, Info & Communications -1.6%, Real Estate -1.3%, Retail Trade -1%
-Automakers trade broadly lower as yen strengthens
-Megabanks track recent declines in European financials
- (JP) Japan confirmed plan to raise the minimum wage by ¥26 to ¥874/hour, approx. 3% increase; cites labor shortage – Japanese Press

Korea
-Kospi opened -0.7%
- (KR) South Korea End-July Foreign Net Investment in Local Bonds (KRW): +1.44T v +2.1T m/m
- (KR) Bank of Korea (BoK) sells KRW1.22T in 1-year monetary stabilization bonds (MSBs); yield 1.83%

Other
- (SG) SINGAPORE Q2 FINAL GDP Q/Q: 0.6% V 1.4%E; Y/Y: 3.9% V 4.0%E
- Moody’s: July Asia Liquidity Stress Indicator: 32.7% v 30.9% m/m

North America
-Nielsen [NLSN]: Elliott said to acquire over 8% stake - US financial press


Europe
- (TR) TURKEY CENTRAL BANK (CBRT) CUTS RESERVE REQUIREMENT RATIO (RRR) BY 250BPS FOR ALL MATURITIES
- (TR) Turkey Finance Min Berat Albayrak said government has ‘action plan’ on currency – Local Media
- (TR) Turkey Banking Regulator: Limits swap transactions
- (TR) Turkey Presidency Communication Head: Reiterates President Erdogan did not talk about potential foreign FX deposits seizure
- (RU) On Sunday, Russia Fin Min Siluanov said Russia will further cut its holdings of US securities in response to new sanctions; has no plans to shut down US companies – RIA
- (GR) Fitch raises Greece sovereign rating two notches to BB- from B; outlook Stable (from Aug 10th)


***Levels as of 01:30ET***
- Nikkei 225, -1.5%, ASX 200 -0.4%, Hang Seng -1.4%; Shanghai Composite -1.3%; Kospi -1.4%
- Equity Futures: S&P500 -0.3%; Nasdaq100 -0.4%, Dax -0.7%; FTSE100 -0.5%
- EUR 1.1412-1.1365 ; JPY 110.76-110.10 ; AUD 0.7301-0.7262 ;NZD 0.6595-0.6562
- Aug Gold -0.3% at $1,215/oz; Sept Crude Oil flat at $67.62/brl; Sept Copper -0.5% at $2.732/lb