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Tech Rout Hits Hong Kong (Again) As Tencent Extends Worrying Slide
Uh-oh. Tencent is in trouble. The ongoing tech rout on Wall Street which manifested itself in the worst 5-day stretch of underperformance for the Nasdaq 100 versus the broader market since 2009 is weighing heavily in Asia as the Hang Seng broke below 29,000. Leading the way was Tencent, which is now down 14% from recent highs. It was just two weeks ago when Tencent blew past Facebook in market value, making it the first Chinese tech name to join the ranks of the world’s five largest companies. At the time, it was valued at some $523 billion. Have a look: Tuesday marked the fourth decline in five sessions. Through Friday, Tencent had era... -
Finance 0
Treasury 10yr-2yr Yield Spread Continues To Slide
The gap between the 10-year and 2-year Treasury yields fell to 57 basis points on Monday (Dec. 4), according to Treasury.gov’s daily data. The dip marks yet another post-recession low for this widely monitored spread. The flattening of the yield curve implies that the economy is facing stronger headwinds, based on the spread’s history vis-à-vis the US business cycle. But the macro trend remains solid at the moment, suggesting that the 10-year/2-year yield gap has shed its value, at least temporarily, as an early warning of US recession risk. Whatever the outlook for the economy, the source of the sliding 10-year/2-year spread is clear. T... -
Finance 0
Bailins Coming In EU – 114 Italian Banks Have NP Loans Exceeding Tangible Assets
– Italy opposes ECB proposal that holds banks to firm deadlines for writing down bad loans – Italy’s banks weighed down under €318bn of bad loans – New ECB rules could ‘derail’ any recovery in Italy’s financial system – Draft proposal requires banks to provision fully for loans that turn sour from 2018 – ECB insists banks have better access to collateral on delinquent debt to solve problem – Investors should secure assets as proposal suggests more bailins on horizon and banks remain at risk Source: ilsole24ore.com Another week and another unjustifiable move by the ECB to ‘protect’ the EU’s banking system. This t... -
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On Verge Of A Monthly Breakout
Back in December of 2015, I wrote that the spike down to $26 a barrel for oil was a generational bottom and a point that we would look back at and wonder why we did not buy oil when it was that cheap. Of course, at that time it was hard to see that there were calls for $10 a barrel crude and noted analysts that said that oil might not ever trade above $40 a barrel again. That negativity gained some popularity when the U.S. stock market had its worst start in history. In January and February of 2016, we double bottomed at $26 a barrel. Of course, now looking back at those predictions they look ridiculous now. The long-term commodity cycle real... -
Finance 0
Morning Call For Tuesday, Dec. 5
OVERNIGHT MARKETS AND NEWS Dec E-mini S&Ps (ESZ17 +0.08%) this morning are up +0.08% as U.S. House and Senate lawmakers begin work on a compromise to tax-overhaul legislation. European stocks are down -0.36% as a slump in copper prices fuels a decline in mining stocks and commodity producers. Mar COMEX copper (HGH18 -2.04%) is down -2.10% at a 2-month low on concern a slowdown in China’s economy will weaken its demand for industrial metals. European stocks also fell back after Eurozone Oct retail sales fell a more than expected -1.1% m/m, the largest monthly decline in 3-3/4 years. Asian stocks settled mostly lower: Japan -... -
Finance 0
Realizing Synergies From Big C Acquisition
Background Berli Jucker Public Company Limited, founded in 1882 is a manufacturing, trading and retailing conglomerate. It acquired Thailand’s third biggest supermarket chain Big C in May 2016. BJC is also engaged in packaging manufacturing including glass and plastic solutions. Its consumer and healthcare units produce snacks, beverages, and stationery items. Business Description Retail business conducted through the Big C retail chain is the biggest revenue contributor and the newest business in the portfolio acquired in May 2016. Big C was later delisted on 28 September 2017. The rationale behind the deal was to achieve significant syne... -
Finance 0
Sterling Sold On Negotiating Snafu, Aussie Bounces On Retail Sales And RBA
The US dollar is confined to narrow ranges against the euro and yen, straddling unchanged levels in the Asian session and the European morning. The action is elsewhere. The British pound is the weakest of the majors, paring 0.4% against the greenback, though around $1.3425, it can hardly be considered weak. A month ago, sterling was a few cents lower. Still, its gains reflected two things: broader dollar weakness and optimism on Brexit talks. The British government was in denial, and perhaps because of this, many investors do not recognize the conflicting and mutually exclusive demand s that have been unleashed by opening the prover... -
Finance 0
4 ETFs To Gain From CVS-Aetna Deal
The healthcare space is consolidating with the latest development being the potential buyout of Aetna (AET – Free Report) by CVS Health Corp (CVS – Free Report). A drug chain and a pharmacy giant CVS has agreed to acquire the nation’s third-largest health insurer Aetna for $207 per share or $69 billion. This would be the biggest deal of the year and the first tie-up of a retailer, an insurer and a pharmacy benefit manager in history. As such, the proposed deal would change the landscape of healthcare business as well as streamline and cut costs in the drug supply chain. Inside The Deal Under the terms of the deal, Aetna ... -
Finance 0
U.K. Services Slow In November Amid Rising Prices
The U.K. largest sector, services sector, slowed in November amid rising price pressures, the IHS Markit reported on Tuesday. The services Purchasing Managers Index contracted from 55.6 in October to 53.8 in November. This was below the 55 predicted by most economists and suggests economic uncertainties continued to impact business activities in the month. While the economy is expected to expand at 0.5 percent in the final quarter of 2017, pound depreciation following the Brexit referendum and high oil prices are weighing on business sentiment, according to Markit. Meaning, higher costs are likely to impact consumer spending going forward, ... -
Finance 0
Tax Euphoria Fades As Tech Rout Spreads
One look at S&P futures this morning reveals an unchanged market, however it is again the violent sector rotation that is taking place behind the scenes that is the real story, with defensive sectors real estate, retail, food, utilities outperforming while investors continue to bail and book profits on tech stocks after sharp gains since the start of the year. Monday’s Nasdaq rout also spread to European and Asian markets which fall on last-minute changes to the tax plan, most notably the retaining of AMT which could prevent companies from making use of intellectual property tax breaks, effectively raising their tax rates. As a rem...
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