The Bullet Point Brief July 15-19

The global facts affecting your investments

Global Markets

Currencies v GBP

Commodities

Monday

  • Spanish caretaker Prime Minister Pedro Sánchez reveals talks with the anti-establishment Podemos party collapse, signaling repeat autumn elections.

  • Deadly Ebola outbreak in DR Congo reaches the capital Goma as first case is reported.

  • New York’s July business activity rebounds the most in two years as NY Federal Reserve’s Empire state manufacturing survey rises 13 points.

  • Developing market debt rises to an all-time high putting pressure on flagging global economy amid trade tensions.

  • China’s economy grew the slowest in almost 26 years during Q2 with GDP at 6.2%.

  • US fund manager broker commissions for trading and research halves in a decade reflecting a widening of Europe’s Mifid II transparency rules.

  • Ryanair is forced to cut flights and considers closing bases as Boeing's 737 Max crisis continues and delivery of 58 aircraft  gets reduced to 30.

Tuesday

  • The WTO announces many US tariffs on Chinese imports don’t comply with their rules opening possibility of retaliation from Beijing.

  • French environment minister Francois de Rugy resigns on allegations of spending tax payers’ money on lavish entertainment.

  • Mexican president Andrés Manuel López Obrador’s plans to slash Pemex’s tax by $6.7bn seen as ‘unconvincing’ and will not prevent another ratings downgrade.

  • Christine Lagarde submits resignation as MD of the IMF after being nominated as the next European Central Bank chief.

  • Turkey vows to ‘illegally’ drill for gas off the coast of Cyprus, showing defiance against EU sanctions against Ankara.

  • US retail sales grew more than expected at 0.4 % in June exceeding economists’ expectations of 0.1%.

  • German economic sentiment indicators fall significantly.

  • Ursula von der Leyen was approved narrowly as EU president but forced to depend on support from the far-right.

  • UK wage growth jumps to 3.6% in the three months to May, excluding bonuses, as a 44 year unemployment low creates competition to find employees.

Wednesday

  • US banks reveal mixed results as US interest rate cuts narrow the margins on lending profitability.

  • G7 finance ministers are asked for to $255m to improve financial inclusion in the developing world by increasing access to digital finances.

  • Facebook rejects US demands to delay launching its digital currency for being ‘a threat to users’ privacy, the banking system and national security’.

  • Bank of America is forced to review growth outlook on Q2 results as expectations of a 3% increase in 2019 earnings are cut to 1%.

  • The World Health Organization declares an international emergency over Ebola epidemic in DR Congo.

  • An index of the biggest US rail freight stocks fell 7% after gloomy report showing signs of economic weakness.

  • BHP reduces coal output from assets in Australia in the coming year looking to move from China towards  Japan and Taiwan.

  • London house prices drop 4.4% in the year to May 2019, higher than the 1.7% fall for the year to April.

  • The price carbon credits under the EU’s Emissions Trading Scheme to cut greenhouse gas emissions hits a record €29.27.

  • Renault injects EUR 128m into a JV with Jiangling Motors to gain exposure to the world’s largest electric car market.

Thursday

  • Morgan Stanley reports Q2 revenues of $10.2bn, 3% lower yoy but higher than forecasts of $9.99bn.

  • Japanese exports slump for a seventh month to 6.7% yoy in June, with a large drop in imports taking its trade balance back into surplus.

  • South Africa’s Reserve Bank cut rates by 25 basis points to 6.5% as economy contracts.

  • Bank of America Merrill Lynch survey reveals investors are most bearish since the global financial crisis.

  • Investors are at their most bearish since the global financial crisis, with the trade war and downturn fears topping their list of worries, according to a closely watched survey of fund managers.

  • The Australian dollar climbed as the unemployment rate held steady at 5.2%, according to the Australian Bureau of Statistics.

  • Microsoft beats earnings with revenues topping $1bn as company’s cloud and software businesses soar.

  • Boeing anticipates $5.6bn drop in revenues and earnings after a $4.9bn after-tax charge for the grounding of the 737 Max, compensating airlines and delayed deliveries.

Friday

  • The Federal Reserve Bank of New York clarifies speech by its president amid Wall Street criticism over rate cut “confusion”.

  • The US shot down an Iranian drone in the Strait of Hormuz after getting within 1000 yards of an American warship.

  • Standard Chartered is accused of handling $56.8bn in illegal transactions with Iranian connected entities as whistleblowers bring civil case.

  • Despite rising markets and assets rising to $7tn, Blackrock’s Q2 earnings drop 2% as flows into low-cost passive funds clip revenues.

  • Iran seizes two foreign taking including a UK registered vessel escalating tensions between the two countries.

  • Netflix stocks plunge after it loses 126,000 domestic subscribers and misses global customer growth targets of 2.3 million, the first decline since 2011.

  • The S&P 500 and Nasdaq  both fall more than 1% for the week in their biggest weekly loss since the end of May.

The week ahead…

  • UK - High street Lending, Rightmove HPI m/m.​ New Prime Minister to be elected with Chancellor Philip Hammond's possible resignation.

  • US – HPI m/m, exisiting home sales, new home sales, durable goods m/m, goods trade balance, prelim wholesale inventories m/m, unemployment claims, durable goods orders m/m, advance GDP index.

  • EU – Spanish unemployment, refinancing rate, ECB rate decision, French consumer spending.​ Eurozone consumer confidence Spanish acting Prime Minister Pedro Sanchez seeks backing to form a government.

  • Asia - Hong Kong: June CPI, imports and exports. Malaysia: June CPI and forex reserves. Taiwan: June exports and industrial production. Thailand: imports, exports and trade balance. Singapore: June CPI and industrial production, jobless rate.

If you have any comments, questions or would like to learn more about our services, please complete the contact form,  visit our contact page or send an email to contact@inveq.co.uk  and we will get straight back to you.

The Bullet Point Brief
Get in touch
arrow&v

Inveq Worldwide

Inveq provides financial services 

globally. As part of a global

network that is regulated in 

multiple jurisdictions, you can be

assured of the best possible 

results regardless of your location.

Contact/admin

Social

  • LinkedIn - White Circle
  • Inveq Twitter
  • Facebook - White Circle

9 Prince Maurice Court, Hambleton Avenue, Devizes, Wiltshire, SN10 2RT, UK.

Tel: +44 (0) 1380 717025

contact@inveq.co.uk

Robin Matthews trading as Inveq is a member of OpesFidelio and is authorised to give financial advice subject to contract in parts of the EEA (Excluding the UK). OpesFidelio is a trademarked network of the Aisa Group which includes Aisa Financial Planning Ltd and Aisa International s.r.o. Aisa Financial Planning is authorised and regulated in the UK as an independent financial adviser for UK retail clients by the Financial Conduct Authority and has permissions throughout the EEA under both directives IDD and MiFID.  View FCA authorisation here.

Aisa International s.r.o. is authorised and regulated in the Czech Republic as a financial adviser by the Czech National Bank and has permissions through selected EEA countries. Cash and Tax services are not regulated.