dChan
Anonymous ID: 40d7bd April 25, 2019, 5:24 a.m. No.6308295   🗄️.is 🔗kun

Dow Futures Drop After 3M Plummets; Dollar Soars On Global Currency Carnage

(China printed up about $287B yuan and gave it out, it then said it was not going to loosen or tighten)

It was shaping up as a relatively quiet session, with world equity markets slipping modestly on Thursday - despite blowout beats by Facebook and Microsoft which sent the latter's stock 5% higher, sending its market cap above $1 trillion and making it the most valuable company in the world - amid worries on global growth and as investors digested European earnings, while the Swedish crown slumped to its lowest in 17 years and the euro suffered after German data.

But it was Dow heavyweight 3M's disastrous earnings report and guidance cut that sent Dow futures sharply lower as the industrial conglomerate became the first stock to validate investor fears about growth challenges for the rest of the year.

3M Company (MMM)

200.33 -18.75 (-8.56%)

Pre-Market: 8:09AM EDT

In a nutshell, this is what 3M reported: Q1 adjusted EPS $2.23, estimate $2.48, and revenue of $7.86BN, Exp. $8.02BN. But most concerning of all was its guidance, which was slashed to an adjusted EPS of $9.25 to $9.75, down from its prior guidance of $10.45-$10.90, and far below the consensus estimate of $10.53, suggesting sharp weakness for the rest of the year. And the cherry on top: 3M announced it would fire about 2,000 jobs as the broad slowdown hits its operations.

 

Elsewhere, Europe's STOXX 600 lost 0.3% in early trading, with concern over prospects for global growth underscored by weak economic data from South Korea which earlier in the session reported its weakest GDP print since the financial crisis.

Asian markets had fallen earlier in the day, losing 0.5% as South Korea’s economy unexpectedly contracted in the first quarter, a vivid reminder that the global economy continues to slowdown sharply. Chinese stocks also fell sharply late in the day, losing more than 2% following attempts by the central bank to temper expectations for further easing of monetary policy and another substantial liquidity withdrawal by the PBOC. Chinese officials also warned of protracted pressure on economic growth, casting a shadow over hopes for a sustained recovery in the world’s second biggest economy.Turkey’s lira also crashed against the dollar, tumbling after the central bank announced it was removing its tightening pledge, and confirming that Turkey would no longer defend the lira after the nation's reserves dropped to dangerously low levels.

Market Snapshot

 

S&P 500 futures down 0.03% to 2,929.75

STOXX Europe 600 down 0.3% to 389.91

MXAP down 0.4% to 161.83

MXAPJ down 0.9% to 536.76

Nikkei up 0.5% to 22,307.58

Topix up 0.5% to 1,620.28

Hang Seng Index down 0.9% to 29,549.80

Shanghai Composite down 2.4% to

3,123.83

Sensex down 0.2% to 38,970.94

Australia S&P/ASX 200 up 1% to 6,382.14

Kospi down 0.5% to 2,190.50

German 10Y yield fell 0.3 bps to -0.015%

Euro down 0.1% to $1.1142

Brent Futures up 0.9% to $75.25/bbl

Italian 10Y yield fell 4.0 bps to 2.262%

Spanish 10Y yield rose 0.8 bps to 1.081%

Brent Futures up 0.9% to $75.25/bbl

Gold spot up 0.2% to $1,277.62

U.S. Dollar Index up 0.01% to 98.18

 

US Event(Data)Calendar

 

8:30am: Initial Jobless Claims, est. 200,000,

prior 192,000; Continuing Claims, est.

1.68m, prior 1.65m

8:30am: Durable Goods Orders, est. 0.8%,

prior -1.6%; Durables Ex Transportation, est.

0.2%, prior -0.1%

8:30am: Cap Goods Orders Nondef Ex Air,

est. 0.2%, prior -0.1%; Cap Goods Ship

Nondef Ex Air, est. 0.1%, prior -0.1%

9:45am: Bloomberg Consumer Comfort,

prior 60.3

11am: Kansas City Fed Manf. Activity, est. 8,

prior 10

 

In terms of the day ahead,this morning in Europe we’re due to get CBI survey data for April in the UK. Also worth keeping an eye on given recent volatility is the Central Bank of Turkey decision at midday. This afternoon in the US we’ve got preliminary durable and capital goods orders data due which should be the last set of data to help sharpen Q1 GDP forecasts tomorrow. Also due up is the latest claims reading and Kansas City Fed manufacturing survey. Away from the data the ECB’s Guindos is due to speak this afternoon in New York. Japan’s PM Abe is also due meet Tusk and Juncker in Brussels while Japan’s Finance Minister Aro is due to meet with Mnuchin over provisions against currency manipulation.

Finally the earnings highlights today are Amazon, Intel, ComCast, 3M, Ford, Bayer, and UBS.

https://www.zerohedge.com/news/2019-04-25/dow-futures-plunge-after-3m-plummets-dollar-soars-global-currency-carnage

https://www.bloomberg.com/markets/stocks

/futures

https://www.dailyfx.com/crude-oil

Anonymous ID: 40d7bd April 25, 2019, 5:42 a.m. No.6308393   🗄️.is 🔗kun   >>8713 >>8760 >>8797 >>8837 >>8881

Deal Talks Between Deutsche Bank And Commerzbank Collapse

(this is the canary in the coal mine-so much crap debt reside's in both these places-think Greek debt crisis etc-all came from here)

Update: Germany has launched into damage control mode on Thursday, with the Bundesbank issuing a statement claiming that Deutsche and Commerzbank are "solid, stable banks".

 

Deutsche Bank, Commerzbank Are Solid, Stable Banks: Bundesbank

 

Translation: buy CDS

— zerohedge (@zerohedge) April 25, 2019

 

    • *

 

Alas, Germany's 'merger of weakquals' just wasn't meant to be.

 

After more than a month of increasingly fraught deal talks, Deutsche Bank and Commerzbank announced on Thursday that they have abandoned the negotiations after executives from both troubled lenders said the deal wouldn't have created sufficient benefits to offset to 'execution risks', capital costs and restructuring costs.

 

"We have concluded that this transaction would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration," Deutsche CEO Christian Sewing said in a statement.

 

Frankfurt am Main, April 25, 2019 – After careful analysis, the Management Board of Deutsche Bank has concluded today that a combination with Commerzbank would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration. As a result, the two banks have decided to discontinue discussions.

 

Deutsche Bank will continue to review all alternatives to improve long-term profitability and shareholder returns.

 

Commerzbank's board released a statement that was nearly identical.

 

After a thorough examination, the Commerzbank Executive Board has come to the conclusion today that a merger with Deutsche Bank would not provide sufficient added value - also with regard to the implementation risks, restructuring costs and capital requirements associated with such a large degree of integration. Therefore, both banks have decided not to continue the talks.

 

Signs that the talks were headed for failure had been evident for weeks, amid a drumbeat of reports about intensifying domestic opposition from the banks' powerful union and Deutsche's scramble to come up with a 'Plan B' to pitch to shareholders should the deal fall through, including the possibility of cleaving off Deutsche Bank's most toxic assets and unprofitable business lines in a separate 'bad bank' unit (though, as Dealbreaker quipped, what is Deutsche Bank if not a collection of toxic assets and unsustainable businesses?)

"As a general rule mergers tend to happen because there are clearly identifiable synergies to be had between two different counterparties, whose strengths complement each other," said Michael Hewson, chief market analyst at CMC Markets UK. "This proposed merger offers none of these benefits, given the respective weakness of both banks."

German Finance Minsiter Olaf Scholz had been pushing for a merger between the two banks in the hopes of creating a new 'national champion' to support Germany's exporters. But some shareholders argued that the conflicts and complications stemming from a potential tie-up made a deal a liability.

Other Commerzbank suitors have been circling, with Italy's UniCredit and Dutch Bank ING rumored to be interested in buying Commerzbank. UBS and Deutsche have also reportedly pursued talks for Deutsche's majority owned DWS asset management business to buy UBS's asset-management business.

Deutsche Bank shares climbed on the news, while shares of Commerzbank ticked lower.

https://www.zerohedge.com/news/2019-04-25/deal-talks-between-deutsche-bank-and-commerzbank-collapse