Dow +0.50% S&P +0.56% NAsdaq +0.78% Russell +0.28% VIX 9.19 -4.57%
US Market closed on record level AGAIN, best sector Fiancilas & Tech, worst utilities. STZ +4% on better guidance. NFLX +5.4% after announcing price increase. AMZN +1.6%. In Washington, the House passed a $4.1 trillion budget that slashes spending over ten years, thereby paving the way for tax reform. However, the Senate still has to pass a budget of its own and, given the GOP's slim majority in the upper chamber, it may look quiet a bit different than the version the House passed today. US After Hours, YUMC +2.6% higher and COST -3.5% lower following earnings / gudiance... SNCR +21% after agreeing to Siris Capital exclusivity. Asian Market trades higher following move in the US, Banks trades higher in Nong Kong. Today US monthly payrolls report is in focus. Fed speakers are expected to include Bostic and Dudley. China’s Sept Caixin Services PMI may be released on Sunday Oct 8th, while Chinese markets will reopen next week.
Nikkei +0.28% HAng Seng +0.28% CSI Shanghai Shenzen closed for Golden Week
Eur$ 1.1702 CNH 6.6557 CNY 6.6528 JPY 112.998 GBP 1.3085 CHF 0.9795 RUB 57.7390 WTI$ 50.70 -0.18%
S&P -0.04% EuroStoxx +0.06% FTSE +0.23% Dax +0.20% SMI +0.15%
Macro :
- U.S. Exchanges Are Said to Weigh Delaying Trading Database: WSJ
- European Stocks See Further Inflows, U.S. Sees Outflows: BofAML (Europe equity funds see inflows of $1.6b, U.S. stock funds see outflows of $0.7b, marking a 14th week of redemptions in the past 16 weeks, So far this year, Europe equity funds have seen inflows of $37b, U.S. equity funds have seen outflows of $13.3b)
- U.K.’s May Facing ‘List’ of Tories Calling on Her to Resign
Keep an eye on :
- ATC NA : Disney & Altice USA Report Comprehensive Distribution Pact
- ATL IM : Atlantia Is Said Near Approval From Spain for Abertis Bid
- BAYN GY : J&J, Bayer to Stop Navigate ESUS Study Early For Futility
- BCVN SW : Six Exchange Probing Banque Cantonale de Geneve on Reporting
- BMW GY : BMW Financial Services to Contest Regulator Ruling on Fee: BD
- BMW GY : BMW Is Said to Plan Assembly Plant in Russia: Vedomosti
- BRNL NA : Brunel Up to Buy, Has ‘Just Left the Bottom’ Operationally: ING
- CABK SM : CaixaBank Said to Consider Moving Reg. Office From Catalonia
- EDF FP : French Nuclear Crunch Drives Power Buying Spree as Winter Nears
- EMSN SW : EMS-Chemie 9M Net Sales Rise 6.7% to CHF1.6b
- EN+ IPO : EN+ Valued at $9.1b-$12b, RBC Cites IPO Organizer VTB Capital
- LEON SW : Leonteq Names Marco Amato CEO; Says Had ’Profitable’ 3Q
- PRS SM : Prisa Is Said to Work With Santander as It Considers Share Sale
- RIO LN : Rio Tinto Is Said to Weigh Sale of Europe’s Top Aluminum Smelter
- SAN FP : Sanofi Is Said to Ready Sale of European Generics Unit: Figaro
- SREN VX : Swiss Re Agrees to GBP800m Minority Investment Into Reassure
- UNA NA : Unilever Is Said to Ask for Spreads Unit Bids by Oct. 19: Rtrs
>>> Up
* Barratt Raised to Outperform at Credit Suisse
* Brunel Raised to Buy at ING
* Credit Suisse Raised to Outperform at RBC, PT CHF18
* Gas Natural Raised to Neutral at Credit Suisse
* Luxottica Raised to Reduce at AlphaValue
* MorphoSys Raised to Overweight at JPMorgan, PT EU85
>>> Dowm
* Aeroports de Paris Cut to Underperform at RBC, PT EU115
* EDP Cut to Underperform at Credit Suisse
* Genmab Cut to Neutral at JPMorgan, PT DKK1,400
* GN Cut to Sell at SEB Equities
* GN Cut to Hold at HSBC, PT DKK223
* Jungheinrich Cut to Sell at Baader-Helvea, PT EU34
* Raiffeisen Cut to Accumulate at Erste Group, PT EU33
* Sixt Cut to Hold at DZ Bank, PT EU71
* Talenom Cut to Accumulate at Inderes, PT EU13.50
* Wacker Chemie Cut to Hold at Bankhaus Lampe
* Wartsila Cut to Hold at HSBC, PT EU63
* Xing Cut to Hold at Commerzbank, PT EU290
>>> Initiation
* Iberdrola Resumed Neutral at Credit Suisse, PT EU6.70
* NMC Health New Buy at Berenberg, PT GBP40
>>> Call
Asia Mid-Session Update: RBA official does not rule out rate cut following weaker retail sales, Aussie extends losses; US payrolls data in focus, while Chinese markets to resume trading next week
***Asia Summary***
-Following the gains in the US equity markets, Asian indices are generally higher. Markets in Hong Kong have traded at an intraday 10-year high, while record highs have been seen for the equity markets in the Philippines. Markets in China and South Korea are still closed in observance of national holidays.
-In Hong Kong, the banking sector has traded mostly higher. Shares of Standard Chartered have however underperformed, following reports that UK regulators are probing $1.4B in client fund transfers.
-The gaming sector in Hong Kong has been weighed down amid the release of Macau tourism data for the Golden Week period.
-Following yesterday’s retail sales induced declines, the Aussie has further weakened on today’s session. Earlier today, RBA official Harper did not rule out a rate cut amid the weaker retail sales data. The RBA last cut rates in Aug 2016.
-Looking ahead, the US monthly payrolls report is in focus. Fed speakers are expected to include Bostic and Dudley. China’s Sept Caixin Services PMI may be released on Sunday Oct 8th, while Chinese markets will reopen next week
***Key economic data***
-(HK) Hong Kong Sept Nikkei PMI: 51.2 v 49.7 prior
-(JP) Japan Aug Labor Cash Earnings Y/Y: 0.9% v 0.5%e; Real Cash Earnings; 0.1% v 0.1%e
-(JP) Japan Sept Official Reserve Assets: $1.27T v $1.27T prior
***Speakers and Press***
China
-(CN) S&P: Amid the government’s deleveraging efforts, asset growth in the domestic banking sector has lagged growth of nominal GDP for the first time since 2012.
-(CN) US Commerce Dept defers anti-dumping decision on imports of aluminum foil from China; to issue decision no later than Nov 30th
-(HK) Macau Number of Mainland China Tourists from Oct 1-4 at 363.4K, -5.1% y/y
-(HK) Hong Kong Securities and Futures Commission (SFC) plans to begin investor identification (ID) mechanism in early 2018 - HK Press
Other
-(AU) Australia Senator Xenophon (independent) to quit and move to state politics
-(AU) RBA Harper: Should a wider stalling of consumption occur, that could warrant rates response; NOT ruling out rate cut
-(JP) Japan Fin Min Aso: Confirms to hold 2nd economic dialogue with US in Washington DC on Oct 16th**Note: On Sept 24th, it was reported that Aso was expected to skip the G20 and IMF meetings in Washington due to be held in Oct, as the US and Japan are expected to hold their 2nd economic dialogue on Oct 16th in Washington.
- (JP) Tokyo Gov Koike (Party of Hope): Should freeze planned sales tax hike in 2019; To carry out 'Yurinomics' based on private-sector led economic revitalization, not relying excessively on monetary easing and fiscal spending.
-(PH) BoJ signs $12.5B bilateral currency (FX) swap agreement with the Philippines, effective today
-(TW) Taiwan said to consider raising electricity prices - Taiwanese Press
-(SA) Saudi Arabia King: Remains keen on stability of global oil market
- (SG) Singapore Central Bank (MAS): To issue semiannual monetary policy statement and Q3 GDP data on Oct 13th
-IMF Lagarde: IMF supports accommodative policy for ECB and BoJ; more optimistic about global recovery
***Asian Equity Indices/Futures (00:30ET)***
- Nikkei +0.3%, Hang Seng +0.4%, Shanghai Composite closed, ASX200 +0.9%, Kospi closed
- Equity Futures: S&P500 flat ; Nasdaq flat, Dax +0.1% , FTSE100 +0.1%
***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1686-1.1716; JPY 112.76-113.02; AUD 0.7743-0.7799; NZD 0.7091-0.7118
- Aug Gold -0.2% at 1,270/oz; Aug Crude Oil -0.2% at $50.70/brl; Sept Copper -0.1% at $3.041/lb
- GLD SPDR Gold Trust ETF daily holdings -0.4% to 851.1 metric tons
-(AU) Australia sells A$700M in 2028 Bonds, avg yield 2.8410%, bid to cover 4.56x
***US markets on close: Dow +0.5%, S&P500 +0.6%, Nasdaq +0.8%, Russell +0.3% ***
- Best Sector in S&P500: Financials and Tech +1%
- Worst Sector in S&P500: Utilities -0.1%
- At the close: VIX 9.19 (-0.44pts); Treasuries: 2-yr 1.495% (+2bps), 10-yr 2.35% (+2.5bps), 30-yr 2.891% (+2.5bps)
***US Market Summary***
-US equities continued to extend gains today. The S&P 500 closed at a record high, hitting its longest streak of all-time closing highs since 1997. The Stoxx 600 turned positive and the IBEX popped higher after a news report from Spain indicated that Catalan representatives could stall their efforts for independence due to leadership divisions. The Dollar Index approached $94 as Brexit concerns and Canadian trade data weighed on Cable and the Loonie, respectively. The VIX ended down 2%, below the 9.50 level. Tech and financials outperformed, while telecom was in the red.
***US Afterhours Movers***
- SNCR Provides update on strategic alternatives process; enters exclusivity agreement with Siris; +26.0% afterhours
- YUMC Reports Q3 $0.52 v $0.55e, Rev $2.04B v $2.00Be (2 est); sets new dividend of $0.10 (1% indicated yield), increases share buyback; +3.5% afterhours
- COST Reports Q4 $2.08 v $2.02e, Rev $42.3B v $41.7Be; E-commerce surging; -1.8% afterhours
- NLY Files to sell 65M shares of common stock via CS, Merrill, GS, WFC (6.0% of shares outstanding); -2.3% afterhours
POTUS WILL BE THE FIRST!!!!
Airbus Defense and Space lacks, among other things, the money that the German government holds back for the Airbus A400M because the military carrier does not fulfill Airbus' commitments. It was only on Wednesday that the Franco-German group had warned the European governments that the delays in the A400M had a negative impact on their cash in this and next year. The aircraft and armaments group had actually undertaken to keep the inflow of funds at the level of 2016.
At the end of June, Airbus had 7.9 billion euros in the cash register, half a year earlier it was still 11.1 billion. The figures fluctuate strongly because of the huge advance for new aircraft models and the irregular medium-flow nozzle in the industry. If deliveries are delayed, this also weighs on the cash flow. There are also problems with the A320neo commercial aircraft because the US supplier Pratt & Whitney does not deliver the engines in time. Airbus does not publish the targets for its individual divisions.
A "Cash Crisis" team in the armaments division is now to examine the costs. All product programs would have to be involved, Whitehead demanded. An Airbus spokesman tried to bring the message down to the employees: such appeals are common in the end of the year. "It is important to remind our troops at this time in the fiscal year how important our cash targets are." This is the standard to reach the quarterly and annual targets at Airbus Defense and Space without detour.