CAPIS Global Recap – 9/18/2019
Asian Headlines Mainland China and South Korea outperformed on small gains today while losses elsewhere were subdued. Energy names of course pulled back on the Saudi news pertaining to renewed production with that sector down 4%. Insurers slipped as well with scant moves in most sectors. Focus was on weaker trade data for August in…
Asian Headlines
Mainland China and South Korea outperformed on small gains today while losses elsewhere were subdued. Energy names of course pulled back on the Saudi news pertaining to renewed production with that sector down 4%. Insurers slipped as well with scant moves in most sectors. Focus was on weaker trade data for August in Japan even as their trade deficit shrunk as well as the BoJ meeting and today’s US Fed. Back in China Energy was lower while defensive names worked higher. Real Estate names finished better on hopes of less government curbs post easing of prices. Talks between them and the US are expected to resume as well buoying sentiment. The much-watched Power Consumption number rose 3.6% YoY in August. Down Under, IT and Industrial names crept a bit higher.
On the energy front Iran has supposedly sent a letter to the White House claiming they have no responsibility in Saturday’s refinery attack while Saudi Arabia prepares for a presser outlining proof they did. TTN noted a story that China has expanded their investment into the Iranian oil complex to the tune of $290B which is netting them a 12% discount on their energy imports.
- AAC Tech rallied 10% on word iPhone pre-orders have been strong. Short covering was said to boost returns today.
- Anta Sports ran up 3.8% with the government said to be planning fitness and sports-related investments. Focus will be on winter sports with a gov statement noting the sector will grow to 800B Yuan by 2022. Li Ning +3.6%, Xtep +3.7%.
- With further rate cuts possible by the BoJ, Sumitomo Mitsui Bank said they may impose account fees with much of the sector no doubt to follow if that occurs.
- Hyundai Motor +1.2% has reportedly ordered more parts from Japanese suppliers as tension between the two countries ramps.
European Headlines
After a flattish start indices have moved slightly higher with leading. The skew of sectors is to the upside with Energy, Autos, and Utilities leading while Personal Goods a seeing small losses. Ahead of the Fed turnover on the Stoxx 600 is running inline. Economic-related headlines include EU new car registrations off 8.4% in August after a slight rise in July with July construction output also disappointing. Consumer inflation met estimates in the EU, up .9% in August, but was slightly off vs expectations in the UK. On that, the Pound is trading lower today.
- Utility service firm Orsted -2.1% is down on word they will sell units to SEAS-NVE for ~$3.15B. SEAS-NVE is already a large stakeholder in Orsted, holding 9.5%, with the country of Denmark holding 50%.
- Defense contractor Cobham -.5% is lower with the UK gov looking into their firm’s acquisition by PE firm Advent International. National security issues are in play but the firm is hoping the US-based Advent will give it further inroads into business in the States.
- Dovetailing with the pull back in new car registrations Pendragon is off 9% after the firm said FY adjusted losses will be at the bottom of the range as the firm cancels its dividend. The 2H is seen as challenging with Brexit weighing on customer’s confidence. The firm is performing a strategic review in its Car Store business with several locations to be shut.
- Luxury names are mostly weaker with UBS downgrading Richemont -2.5% after it has outperformed this year.
| Event | Survey | Actual | Prior | Revised | |||
| SK | 10) | Export Price Index MoM | Aug | — | 1.50% | -0.20% | -0.30% |
| SK | 11) | Export Price Index YoY | Aug | — | -3.90% | -5.30% | -5.40% |
| SK | 12) | Import Price Index YoY | Aug | — | 0.00% | -1.30% | -1.10% |
| SK | 13) | Import Price Index MoM | Aug | — | 0.90% | 0.60% | 0.80% |
| JN | 14) | Trade Balance | Aug | -¥365.4b | -¥136.3b | -¥249.6b | -¥250.7b |
| JN | 15) | Trade Balance Adjusted | Aug | -¥160.7b | -¥130.8b | -¥126.8b | -¥104.0b |
| JN | 16) | Exports YoY | Aug | -10.00% | -8.20% | -1.60% | -1.50% |
| JN | 17) | Imports YoY | Aug | -10.70% | -12.00% | -1.20% | — |
| AU | 18) | Westpac Leading Index MoM | Aug | — | -0.28% | 0.14% | 0.15% |
| EC | 19) | EU27 New Car Registrations | Aug | — | -8.40% | 1.40% | — |
| AS | 20) | CPI MoM | Aug | — | 0.10% | -0.40% | — |
| AS | 21) | CPI YoY | Aug | — | 1.50% | 1.40% | — |
| IT | 22) | Industrial Sales WDA YoY | Jul | — | -0.60% | -0.80% | — |
| IT | 23) | Industrial Sales MoM | Jul | — | -0.50% | -0.50% | -0.70% |
| IT | 24) | Industrial Orders NSA YoY | Jul | — | -1.00% | -4.80% | -4.90% |
| IT | 25) | Industrial Orders MoM | Jul | — | -2.90% | -0.90% | -1.00% |
| EC | 26) | ECB’s Guindos Speaks in Madrid | |||||
| UK | 27) | CPIH YoY | Aug | 1.90% | 1.70% | 2.00% | — |
| UK | 28) | CPI MoM | Aug | 0.50% | 0.40% | 0.00% | — |
| UK | 29) | CPI YoY | Aug | 1.90% | 1.70% | 2.10% | — |
| UK | 30) | CPI Core YoY | Aug | 1.80% | 1.50% | 1.90% | — |
| UK | 31) | Retail Price Index | Aug | 291.4 | 291.7 | 289.5 | — |
| UK | 32) | RPI MoM | Aug | 0.70% | 0.80% | 0.00% | — |
| UK | 33) | RPI YoY | Aug | 2.60% | 2.60% | 2.80% | — |
| UK | 34) | RPI Ex Mort Int.Payments (YoY) | Aug | 2.50% | 2.60% | 2.70% | — |
| UK | 35) | PPI Input NSA MoM | Aug | -0.20% | -0.10% | 0.90% | 0.60% |
| UK | 36) | PPI Input NSA YoY | Aug | -0.10% | -0.80% | 1.30% | 0.90% |
| UK | 37) | PPI Output NSA MoM | Aug | 0.20% | -0.10% | 0.30% | — |
| UK | 38) | PPI Output NSA YoY | Aug | 1.70% | 1.60% | 1.80% | 1.90% |
| UK | 39) | PPI Output Core NSA MoM | Aug | 0.20% | 0.20% | 0.40% | — |
| UK | 40) | PPI Output Core NSA YoY | Aug | 2.00% | 2.00% | 2.00% | — |
| UK | 41) | House Price Index YoY | Jul | 0.60% | 0.70% | 0.90% | 1.40% |
| EC | 42) | Construction Output MoM | Jul | — | -0.70% | 0.00% | 0.60% |
| EC | 43) | Construction Output YoY | Jul | — | 1.10% | 1.00% | 1.60% |
| EC | 44) | CPI Core YoY | Aug F | 0.90% | 0.90% | 0.90% | — |
| EC | 45) | CPI MoM | Aug | 0.20% | 0.10% | -0.50% | — |
| EC | 46) | CPI YoY | Aug F | 1.00% | 1.00% | 1.00% | — |
| IT | 47) | Trade Balance Total | Jul | — | 7631m | 5728m | 5701m |
| IT | 48) | Trade Balance EU | Jul | — | 3575m | 1876m | 1848m |
| MB | 49) | CPI EU Harmonized MoM | Aug | — | 0.80% | 0.30% | — |
| MB | 50) | CPI EU Harmonized YoY | Aug | — | 1.90% | 1.80% | — |
| CC | 51) | CPI Harmonized YoY | Aug | — | 0.60% | 0.10% | — |
| CC | 52) | CPI Harmonized MoM | Aug | — | 1.70% | -0.40% | — |
| PO | 53) | PPI MoM | Aug | — | -0.50% | 0.00% | — |
| PO | 54) | PPI YoY | Aug | — | -1.10% | -0.40% | — |