China Stimulus Working
Asia was a sea of red outside of Korea and Mainland China as investors wait for developments on US-China trade talks in light of the coming December 15th tariff hike, ECB and Fed guidance, and a slew of economic data. US-China trade talks appear to be headed in the right direction as both Jared Kushner and Sonny Perdue, Agriculture Secretary, had positive comments on Monday.
Morning Insights: Dec. 10, 2019
Closing Bell (Dec 10)
China CPI Surges To Seven-Year High
Weekly Market Recap: Dec. 9, 2019
Recap: 2019 Greater New York Dental Meeting
Economic Update: Dec. 9, 2019
3Q19 real GDP growth was revised up to 2.1% q/q saar, driven by upward revisions to inventories, housing and consumption, although partially offset by downward revisions to government spending. Manufacturing produced mixed data, with the Markit manufacturing PMI moving up to 52.6, but ISM manufacturing remaining in contractionary territory at 48.1.
A Lot Hangs in The Balance
It’s just your typical Monday. Taking things from the top, China reportedly wants to get a trade deal worked out as soon as possible; there is some M&A buzz in the biotech space with ArQule (ARQL) and Synthorx (THOR) being taken out at huge premiums; worries about repo market functioning at year end are said to be festering; and there is a lot of interest in macro matters later in the week.
Why A Financial Transaction Tax Would Destroy Retail Traders
Democratic presidential candidates, including Joe Biden, Elizabeth Warren and Bernie Sanders, have proposed a new tax on financial transactions. While candidates argue these new taxes could help pay for ambitious healthcare programs that could benefit the middle class, critics say they would suffocate retail stock traders.
What’s on Tap Weekly Calendar: Dec. 9 – 13, 2019
Monday December 9th – Economic Calendar:No Major Economic Data Released today; Earnings Calendar:Earnings Before the Open: THO
Central Banks on Hold As Data Improves
Strength is this week’s theme, at least for the most part. Lower rates and Washington’s borrow and spend policy appear to be giving the US labor market a sizeable push going into year end. Growth in the global economy in general also appears to be improving, or at least no longer deteriorating. This lift is expressed in the week’s central bank decisions.
Weekly Corporate Highlights Dec. 9 – Dec. 13, 2019
Staying on top of corporate events is critical for any investment firm. Here are the selected events from Wall Street Horizon impacting the most widely held securities scheduled for this week. Monday: ASML Holding (ASML_NL): Presenting at UBS Global Media, Telecoms/Communications, Technology Conference 2019; Occidental Petroleum Corporation (OXY): Ex Date for Quarterly dividend of $0.790
Closing Bell (Dec 9)
China’s Exports Shrink, Tariff Deadline Looms Large
Room to Grow? The Outlook for Equities Late in the Cycle
Corporate Governance in Emerging Markets: Harnessing Winds of Change
Growth In ESG Begs The Question of Implementation
A significant level of assets have flowed into sustainable investment in recent years, to the tune of $30.7 trillion globally in the five major markets at the start of 2018—a 34% increase in two years—according to The Global Sustainable Investing Alliance’s most recent trends report.
Will the Real Manufacturing PMI Please Stand Up?
Taking Stock of Our 2019 Views
Closing Bell (Dec 6)
Nearing Another Turning Point, This Time According To The RBNZ
Here’s How Much A 24-Hour Internet Blackout Would Cost The US Economy
The internet has become the lifeblood for Wall Street and the U.S. economy, and every second the U.S. if off the grid costs companies and investors big bucks. In fact, just a 24-hour nationwide U.S. internet outage would cost the economy $7.29 billion, according to Statista.
Link Between US and EM Political Risk
The New Year’s Message for Corporate IR Engaging the Buy-Side: Keep Talking
Corporate access has come a long way in the last decade, especially after sweeping changes brought about by regulations like MiFID II.
Return of The Active Manager
As recently as 2009, active mutual funds enjoyed a market share of over 75%, with passive index funds making up less than 25%. In 2018, active and passive funds reached parity, with each taking about 50%. It’s safe to assume that, once the numbers are tallied, passive funds will overtake active funds in 2019. Howard and Voss eventually expect the split the stabilize at roughly 70% passive index funds and 30% actively managed funds.
Close is Enough
The U.S. and China are maintaining close communication. That’s the word from China’s Commerce Ministry and that is somehow making a lot of U.S. companies more valuable today even though it effectively means nothing.