CAPIS Global Recap – 7/10/2019

Asian Headlines Ahead of Congressional testimony by the US’ Fed Powell and the minutes to be released from the FOMC minutes from June Asian indices  closed again mixed.  Moves either way were contained as the world hopes to gleam what direction, if any, the Fed will take on the 31st.  Economic releases were light with…

Asian Headlines

Ahead of Congressional testimony by the US’ Fed Powell and the minutes to be released from the FOMC minutes from June Asian indices  closed again mixed.  Moves either way were contained as the world hopes to gleam what direction, if any, the Fed will take on the 31st.  Economic releases were light with consumer inflation inline in China.  Producer prices though were flat with oil and steel prices said to have pushed the reading lower than expected.  With a storm a’ brewin in the Gulf and a sizable draw from yesterday’s API reading oil is to the upside with West Texas Intermediate up 2% into the European session.

South Korea’s PM Moon said the country will address the Japanese export curb with line items in their extra budget including an emergency response system.  Talks between the two continue but they are country is being proactive as leaders met with local firms. Related, a Korean press story noted both Samsung +1% and SK Hynix +4.4% have pared NAND output.   A Samsung rep though called that claim “groundless”.

Real Estate names in China continue to lag as the Chinese Securities Journal reports some banks have been requested to limit loans for certain properties.  And to note, Larry Kudlow said that while phone conversations continue between China and the US, China has yet to up their purchases of US agricultural goods.  This jives with a SCMP story noting President Xi did not make specific commitments in relation to purchases of US ag products.

New Zealand Oil and Gas’ +.23% board said they recommend accepting the bid from Singapore’s OG Oil & Gas for the balance of the firm.   The board said the premium offered coupled with the government’s decision to not award further offshore locales was taken into consideration.

Post the close Taiwan Semi reported June sales up 21.9% YoY with the full 2Q beating analyst’s expectations.

European Headlines

Moves are mixed as well in Europe with a bias towards the downside. No surprise that volumes are off 14% on the SXXP with Banks leading today sector-wise.  Food, Utilities, and Personal Good names lead lower with all moves contained within a percent.  On the economic front the UK reported Industrial and Manufacturing Production that missed estimates while its May GDP reading met estimates.

The EU published their Summer interim forecast, cutting GDP for the region next year to +1.4% from 1.5%.  While GDP levels for the EU, Germany, and the UK were retained for this year, Germany and the UK were reduced as well.  Inflation for the region was pared for both this year and next, each to 1.3% from 1.4%.

Employment recruiter PageGroup is off 15% as it sees FY19 operating profit near the lower end of estimates. They see broad “challenging” markets in France, the UK, and in China. Specifically, they cited Brexit, Chinese-related trade tariffs, and HK unrest as weighing. The firm has had to lay off some staff with the possibility of more cuts possible with executive hiring weak in the UK.   Hays -7%.

To the upside Redx Pharma is up 124% as it will sell its pan-RAF inhibitor program to Jazz Pharma which will yield both upfront and potential milestone payments.

Laundry specialist Xeros Technology +35% is cleaning up today post registering a patent for a microfiber filtration system that can be applied to domestic washing machines. The system will reduce synthetic fibers like polyester and nylon being released into waste water as these microplastics from washers are said to be the biggest source released into the oceans.

Event Survey Actual Prior Revised
SK 16) Unemployment rate SA Jun 4.00% 4.00% 4.00%
JN 17) PPI MoM Jun -0.10% -0.50% -0.10%
JN 18) PPI YoY Jun 0.40% -0.10% 0.70% 0.60%
AU 19) Westpac Consumer Conf Index Jul 96.5 100.7
AU 20) Westpac Consumer Conf SA MoM Jul -4.10% -0.60%
JN 21) Bloomberg July Japan Economic Survey (Table)
CH 22) CPI YoY Jun 2.70% 2.70% 2.70%
CH 23) PPI YoY Jun 0.20% 0.00% 0.60%
NE 24) Manufacturing Production MoM May -0.50% -0.60% -0.50%
NE 25) Manufacturing Production YoY May -1.80% -1.20% -1.00%
NE 26) Industrial Sales YoY May -4.40% 3.10% 0.00%
FI 27) Industrial Production MoM May -2.80% 2.20% 2.60%
FI 28) Industrial Production WDA YoY May -0.30% 6.50% 7.00%
DE 29) CPI MoM Jun -0.20% -0.10%
DE 30) CPI YoY Jun 0.70% 0.60% 0.70%
DE 31) CPI EU Harmonized MoM Jun -0.30% 0.00%
DE 32) CPI EU Harmonized YoY Jun 0.50% 0.70%
NO 33) CPI MoM Jun 0.20% 0.10% -0.30%
NO 34) CPI YoY Jun 2.10% 1.90% 2.50%
NO 35) CPI Underlying MoM Jun 0.50% 0.40% -0.20%
NO 36) CPI Underlying YoY Jun 2.40% 2.30% 2.30%
NO 37) PPI including Oil MoM Jun -4.90% -1.00%
NO 38) PPI including Oil YoY Jun -6.50% 0.40%
SW 39) Prospera Swedish Inflation Expectations Survey
FR 40) Industrial Production MoM May 0.30% 2.10% 0.40% 0.50%
FR 41) Industrial Production YoY May 1.60% 4.00% 1.10%
FR 42) Manufacturing Production MoM May 0.30% 1.60% 0.00% -0.10%
FR 43) Manufacturing Production YoY May 3.40% 0.50% 0.40%
IT 44) Industrial Production MoM May 0.20% 0.90% -0.70% -0.80%
IT 45) Industrial Production WDA YoY May -1.50% -0.70% -1.50%
IT 46) Industrial Production NSA YoY May -0.70% 0.10% 0.00%
UK 47) Monthly GDP (MoM) May 0.30% 0.30% -0.40%
UK 48) Monthly GDP (3M/3M) May 0.10% 0.30% 0.30% 0.40%
UK 49) Industrial Production MoM May 1.50% 1.40% -2.70% -2.90%
UK 50) Industrial Production YoY May 1.20% 0.90% -1.00% -1.10%
UK 51) Manufacturing Production MoM May 2.20% 1.40% -3.90% -4.20%
UK 52) Manufacturing Production YoY May 1.10% 0.00% -0.80% -1.00%
UK 53) Construction Output MoM May 0.10% 0.60% -0.40% -0.50%
UK 54) Construction Output YoY May 0.90% 1.70% 2.40% 3.10%
UK 55) Index of Services MoM May 0.10% 0.00% 0.00% 0.10%
UK 56) Index of Services 3M/3M May 0.10% 0.30% 0.20% 0.30%
UK 57) Visible Trade Balance GBP/Mn May -£12550m -£11524m -£12113m -£12761m
UK 58) Trade Balance Non EU GBP/Mn May -£4800m -£4905m -£4595m -£5255m
UK 59) Trade Balance GBP/Mn May -£3200m -£2324m -£2740m -£3716m
IC 60) International Reserves Jun 841b 767b
GR 61) CPI YoY Jun -0.30% 0.20%
GR 62) CPI EU Harmonized YoY Jun 0.20% 0.60%
GR 63) Industrial Production YoY May -1.20% -0.80%
EC 64) European Commission Publishes Summer 2019 Economic Forecasts
IR 65) Property Prices YoY May 2.80% 3.10% 3.00%
IR 66) Property Prices MoM May 0.50% 0.30% 0.20%
PO 67) CPI MoM Jun F 0.00% 0.00%
PO 68) CPI YoY Jun F 0.40% 0.40%
PO 69) CPI EU Harmonized MoM Jun F 0.40% 0.40%
PO 70) CPI EU Harmonized YoY Jun F 0.70% 0.70%
PO 71) Trade Balance May -1631m -1802m -1839m
IR 72) CPI MoM Jun 0.20% -0.10%
IR 73) CPI YoY Jun 1.10% 1.00%
IR 74) CPI EU Harmonized MoM Jun 0.20% -0.10%
IR 75) CPI EU Harmonized YoY Jun 1.10% 1.00%