The Bullet Point Brief July 22-26

The global facts affecting your investments

Global Markets

Currencies v GBP

Commodities

Monday

  • Shares rocket as much as 520% on Shanghai’s new science and technology equity Star Market.

  • Thailand’s trade balance posts a $3.2 billion surplus in June, the fourth largest monthly surplus on record.

  • India rejects President Trump’s offer to help resolve the decades-long conflict over Kashmir with Pakistan, denying the  Prime Minister asked for help.

  • Greece’s new conservative government wins a confidence vote to include tax cuts and plans to speed up investments in its economic policy.

  • Global aluminium output falls for the first time since 2009 as Chinese growth momentum stalls.
     

  • US banks resist the EU’s Mifid II regime as the SEC considers extending  exemptions to allow US brokers to sell research to European fund managers.

  • Iran announces it has broken a 17- strong ring of Iranian nationals trained as spies by the American intelligence agency.

Tuesday

  • UBS warns of a disappointing outlook for Europe’s banks after second-quarter results see wealth and investment bank earnings decline.

  • Boris Johnson is elected UK Prime Minister.

  • Home sales in the US fell more than expected at 1.7% in June and property shortages pushed prices to record highs.

  • Spanish leader Pedro Sanchez fails to get parliament’s backing to form a government.

  • German industrial manufacturers such as trains, aircraft and defence equipment giants are expected to increase short-time work to cut hours as economic outlook falters.

  • Coca-Cola raises annual forecast and stocks rally 5% as global economy stands firm for the drinks giant.

  • US retail sales were higher in June by 0.4% spurred by motor sales and domestic goods.

Wednesday

  • Australian stocks recover pre-financial crisis levels to close at a their highest since November 2007.

  • Italian government wins a parliamentary confidence vote in a victory for the far-right Interior Minister Matteo Salvini.

  • Deutsche Bank slumped to its largest quarterly loss since 2015 as restructuring charge to reduce investment bank hit.

  • The S&P 500 closes 0.5% higher at 3,019.6 to record another all-time high.

  • UK home sales fell 16.5% in June from the same time last year with property experts blaming political uncertainty.

  • Germany’s 10-year bund yield hits an all-time low of minus 0.43 % and French, Italian, Spanish and Greek bonds also rally on slower signals.

Thursday

  • Tesla’s quarterly losses were bigger than expected as margins fall and it seeks larger markets for the Model 3.

  • French unemployment falls to 5-year lows according to Labour Ministry data.

  • Nissan warns of a 90% drop in Q1 profits and considers cutting 10,000 jobs globally.

  • South Korea’s economy grew its fastest in two years during Q2 as government spending countered a slowdown in China.

  • Turkey’s central bank slashes the one-week repo rate 4.25% to 19.75%, the biggest rate cut since 2002. 

  • Donald Trump says that China may not reach an agreement  to end  trade wars until after the presidential election in November 2020.

  • Boeing warns of halting 737 Max production if grounding continues after a record quarterly loss of $3.4bn.

  • Mario Draghi signals fresh stimulus to boost the eurozone economy with more ECB asset purchases and rate cuts before his October departure.

  • North Korea fires missiles into the Sea of Japan in a warning to ‘war-mongering’ South Korea.

Friday

  • US economic growth slowed to 2.1% in Q2 fuelling the Federal Reserve’s case for significant rate cut next week.

  • Fitch Ratings cuts South Africa’s outlook to negative from stable on rising debt and growth worries, maintaining its BB+ junk rating.

  • White House economic official Larry Kudlow rules out intervention in currency markets to weaken USD as President  Trump voices concerns over its strength.

  • Anti-government protesters target Hong Kong’s airport with some countries warning against all travel there.

  • Russia’s central bank cuts key interest rate 25bps to 7.25% to cool inflationary concerns, warning the economy grew slower than expected in June.
     

  • The UAE states trade with Iran will halve this year as the region’s finance and business centre faces headwinds on US sanctions for the Islamic republic,

  • The S&P 500 hits an intraday all-time high of 3,027.98 and the Nasdaq closed at a record 8,330.21 as tech stocks outperform, despite slower growth.  

  • Singapore’s manufacturing slumped the most for 3.5 years in June falling 6.9% year on year, but less than the  expected 7.9%.

  • Mario Draghi signals fresh stimulus to boost the eurozone economy with more ECB asset purchases and rate cuts before his October departure.

The week ahead…

  • UK - Net lending to individuals, mortgage approvals, Nationwide house price index, BOE rate decision, UK construction.

  • US – Non-farm employment, FOMC statement, Federal Funds rate, personal income m/m, personal spending m/m, pending home sales, composite- 20 HPI y/y.

  • EU – GDP, core inflation, unemployment rate, Spanish inflation, Italian prelim GDP and inflation, Italian unemployment, French prelim inflation, Spanish GDP, German unemployment, German consumer confidence, German inflation, Eurozone business confidence, Eurozone retail sales.

  • Asia - Japanese retail sales, BOJ rate decision, Japanese unemployment, Chinese PMI. 

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