tyb
peace for you and yours sa.
Morning Market Report
pretty quiet here on the movement front.
Some headlines.
Stocks rally cut off by EU threats over Italy's budget
https://www.reuters.com/article/us-global-markets/stocks-rally-cut-off-by-eu-threats-over-italys-budget-idUSKCN1SY01W?il=0
Alibaba plans bumper $20 billion HK listing to boost investment war chest: sources
HONG KONG (Reuters) - Alibaba is considering raising as much as $20 billion through a listing in Hong Kong, people familiar with the matter told Reuters, lining up a second blockbuster deal following its 2014 record $25 billion float in New York.
https://www.reuters.com/article/us-alibaba-listing-hong-kong/alibaba-plans-bumper-20-billion-hk-listing-to-boost-investment-war-chest-sources-idUSKCN1SX1OR
along with the chinese threatening to de-list from NYSE-this trend will continue as the gamesmanship is on full display.
Gold fades as dollar firms, though stock weakness limits metal’s loss
Dollar ticks higher, bond yields slump, stocks called mixed
see cap#3 for US Tnote 10 year yield.
Gold futures prices eased slightly early Tuesday, struggling to build on the weekly gain last week that came with renewed trade-war worries, although even the trade factor has had limited impact in dramatically rallying a haven metal that remains largely tied to the dollar’s moves.
https://www.marketwatch.com/story/gold-fades-as-dollar-firms-though-stock-weakness-limits-metals-loss-2019-05-28
Beijing Won't Dump Treasuries, But It Might Stop Buying Them, Reinhart Says
yes we already knew this as doing so would devalue what they continue to hold-eventually they may try to as a token show of strength but it will fail.
https://www.zerohedge.com/news/2019-05-28/china-might-not-dump-treasuries-it-could-stop-buying-them-harvard-economist-says
Stock-index futures waver as trade worries hang over market
U.S. stock-index futures traded mixed Tuesday, pointing to a flat start as investors returned from a long holiday weekend and continued to eye trade tensions between the U.S. and China.
U.S. financial markets were closed Monday for Memorial Day. Stocks ended higher Friday but booked losses for the week, extending the Dow’s DJIA, +0.37% weekly losing streak to five, its longest since June 2011. The Dow saw a 0.7% weekly fall, while the S&P 500 SPX, +0.14% saw a 1.2% retreat and the Nasdaq Composite COMP, +0.11% gave up 2.3%.
What economic data are in focus?
The economic calendar is light Tuesday, featuring only the March reading of the Case-Shiller home-price index due at 9 a.m. Eastern, and the Conference Board’s May reading on consumer confidence at 10 a.m.
How are other markets trading?
Stocks in Asia closed mostly higher on Tuesday, with Japan’s Nikkei 225 NIK, +0.37% rising 0.4%, Hong Kong’s Hang Seng Index HSI, +0.38% adding 0.5% and China’s Shanghai Composite Index SHCOMP, +0.61% advancing 0.4%. In Europe SXXP, +0.12% stocks were trading mostly lower.
the dollar's movement is limiting the movement in gold.
Stocks making the biggest moves premarket: Fiat Chrysler, Uber, Alibaba, Beyond Meat & more
Nasdaq has pulled out of the bidding for Norway’s Oslo Bors, after Norway rejected Nasdaq’s argument that the stock exchange takeover should not be allowed if less than a two-thirds stake was bought.
https://www.cnbc.com/2019/05/28/stocks-making-the-biggest-moves-premarket-fiat-chrysler-uber-alibaba-beyond-meat-more.html
https://www.marketwatch.com/story/stock-index-futures-edge-lower-as-trade-worries-hang-over-market-2019-05-28
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil
https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx
Facebook CFO sold $1.98m in shares-May 22
Out of 34,457 registered for sale.
Cap#1 is most recent, Cap#2 is prior.
Facebook specializes in online social networking services. The group's activity is organized around 3 areas:
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networking services: primarily information exchanging and photography sharing for the individuals (2.2 billion monthly active users in 2018);
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operation of an application hosting platform and websites: to developers;
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operation of advertising spaces.
Net sales break down by source of income into advertising spaces (98.5%) and other (1.5%).
Net sales are distributed geographically as follows: the United States (46.1%), Europe (24.4%), Asia/Pacific (21%) and other (8.5%).
Number of employees : 35 587 people.
https://www.marketscreener.com/FACEBOOK-10547141/company/
https://www.secform4.com/insider-trading/1326801.htm
See this as a notable in pb.
>>6606430 pb California Rising: Mass protest against social media censorship at FB shareholder mtg (May 30)
Cap#1 should be this
they always make these announcements and some actually follow through but most do not.
would love to see that but seems she is just trying to make it harder to get back. Who in there right mind would clawback from a charity regardless of who or what it represents. Terrible optics
but love to see the MSM cuck out on that one.
Occidental to sell parts of Anadarko after debt-fueled acquisition
HOUSTON (Reuters) - Occidental Petroleum snatched up some of the richest shale oilfields in Texas when it beat out rival Chevron Corp in a bidding war to acquire Anadarko Petroleum.
It also quadrupled its debt - to $40 billion - at a time when investors are calling for spending cuts and higher dividends.
That means the acquisition’s success will depend on how quickly Occidental can sell off some of Anadarko’s assets and focus on optimizing and integrating the assets it keeps - especially prime U.S. shale fields.
Shedding debt will require selling assets when deals have been sluggish, said bankers and merger specialists. The number of U.S. deals has fallen to lows not seen in five years or more as investor demands for capital discipline have driven buyers from the market, said Todd Dittmann, managing director at investment firm Angelo Gordon.
“An acquisition is more often viewed as a confession of poor drilling locations and a failure of prior strategy,” Dittmann said.
Deal-makers say Chief Executive Vicki Hollub’s most likely sale prospects are Anadarko’s offshore assets in the Gulf of Mexico and its pipeline business. Her challenge will be to balance such sales with the need for their cash flow to pay debt and dividends.
Hollub already has one big sale lined up: France’s Total SA agreed to pay $8.8 billion for Anadarko’s oil-and-gas producing assets outside the United States, including its biggest future expense, a multibillion-dollar liquefied natural gas project in Mozambique.
Occidental declined to comment, but CEO Hollub told shareholders and analysts she expects to squeeze $3.5 billion per year in cost savings and capital spending cuts from the deal, and is eager to apply the company’s Permian Basin expertise to Anadarko’s Texas and Colorado oil fields.
“We will make this work,” Hollub vowed. “We will get these synergies.”
‘AMAZING’ CASH FLOW
Several major oil companies would be willing to buy the Gulf of Mexico offshore assets, or any Permian acreage if Occidental decided to sell some of its long-held properties. It controls about 2.7 million acres there already, split between shale and conventional production, and with the Anadarko deal will acquire an additional 240,000 acres in one of the more productive areas of the Permian Basin.
The Gulf of Mexico business provided nearly a quarter of Anadarko’s oil and gas output while consuming just 19 percent of production spending. Hollub has praised it for its “amazing free cash flow,” and M&A analysts say could be worth at least $6 billion.
Potential buyers would be the handful of large companies with deepwater experience, including Royal Dutch Shell, Exxon Mobil, Total and Chevron.
Another reason to sell it: Occidental has never operated in the Gulf before. That raises concerns among investors, said Jennifer Rowland, an analyst with Edward Jones.
“It just adds to the risk of a deal. They don’t have that knowledge in house,” she said.
IN THE ‘DOGHOUSE’ WITH INVESTORS
Another likely candidate for a sale is Western Midstream Partners, Anadarko’s majority-owned gas gathering and pipeline business, valued at around $7.5 billion. Occidental has previously sold off pipelines and coastal terminals. The company’s view of pipeline assets, said finance chief Cedric Burgher to analysts, is “you don’t need to own” them, only to have the right to use them.
If Hollub can sell the offshore business and close the deal with Total, she could hit a $10 billion to $15 billion divestment target, said Matt Sallee, portfolio manager at investment firm Tortoise Capital Advisors. That could make it less likely that the company would sell any of its onshore or pipeline operations, he said.
“They would probably really like to get another sale done before the deal closes to remove this risk” of too much debt, said Charles Johnston, analyst at debt research firm CreditSights.
Occidental’s stock fell to a 10-year-low after it reached a merger agreement with Anadarko.
https://www.reuters.com/article/us-occidental-divestitures/occidental-to-sell-parts-of-anadarko-after-debt-fueled-acquisition-idUSKCN1SY0XW
with you on that. Why else would the saudi's increase it's reserves by almost exactly the amount they take out each year?
they would have drained ghawar long ago due to the inability to have any type of constraints on themselves.
>Kind of fun to watch.
It's grand!
most people know dick all about how any of these numbers are generated. Good that confidence is up however where was it just prior to 2008?
BTW it's not 1815 again regarding Napolean escaping elba so there will be no "event" to allow the the rothys to buy low and sell high again.
Beijing "Seriously Considering" Rare-Earth Export Ban
Following what was a mostly quiet holiday weekend for trade-war-related rhetoric (other than a dollop of trade-deal optimism offer by President Trump, little was said by either side), Beijing has started the holiday-shortened week by reiterating threats to embrace what we have described as a 'nuclear' option: restricting exports of rare earth metals to the US.
Global Times editor Hu Xijin, who has emerged as one of the most influential Communist Party mouthpieces since President Trump increased tariffs on $200 billion in Chinese goods, tweeted that China is "seriously considering restricting rare earths exports to the US."
Based on what I know, China is seriously considering restricting rare earth exports to the US. China may also take other countermeasures in the future.
— Hu Xijin 胡锡进 (@HuXijin_GT) May 28, 2019
There are signs that these warnings should be taken seriously: One week ago, President Xi and Vice Premier Liu He, China's top trade negotiator, visited a rare earth metals mine in Jiangxi province. Rare earths, which are vital for the manufacture of everything from microchips to batteries, to LED displays to night-vision goggles, have been excluded from US tariffs.
hough other Chinese officials have denied that export curbs were being considered, Xi's visit was widely viewed as a symbolic warning. Seven out of every 10 tons of rare earth metals mined last year were produced by Chinese mines. One analyst warned that Xi's visit was intended to send "a strong message" to the US.
Beijing is limited in its ability to retaliate against Washington's tariffs by the fact that there simply aren't enough American-made goods flowing into the Chinese market. Because of these limits, it's widely suspected that Beijing will find other ways to retaliate. Though they are more plentiful than precious metals like gold and platinum, rare earths can be expensive to refine and extract.
The tension has sparked a 30% increase in 'heavy rare earth' metals.
The prices of so-called heavy rare earths, which are used in batteries for electric vehicles and in defence applications, have risen 30 per cent this year, said Helen Lau, senior analyst and head of metals and mining research at Argonaut in Hong Kong.
"I think it is a little bit reckless, from my point of view, for China to ban the export of rare earths to the US directly," Lau said. "There’s always some way to have a similar impact…Maybe we want to reduce exports to everyone. That is a likely scenario."
Even if Beijing doesn't follow through on these threats, some analysts suspect that, given their scarce supply, China might move to restrict their export to help meet domestic demand. Beijing has already slapped tariffs on rare earths mined in the US.
Lau said she believes China, regardless of the trade war, will ultimately move to reduce exports of rare earths to meet its own domestic demand.
"Everyone knows that China needs rare earths for its electric-vehicle industry," Lau said. "Electric-vehicle production is very strong – every single month it is growing in high double digits, and this year it has doubled from last year. The demand for rare earths is very strong."
According to the SCMP, June could be a critical make-or-break moment for the global rare earth metals trade, because that's when China is expected to set its mining quota for the second half of the year. The quota for the first half of the year was 60,000 tonnes, unchanged from the year prior.
To wean the US off its dependence on Beijing, one American chemicals company on Monday signed an MoU with an Australian mining firm to develop a rare earths mine in Hondo, Texas.
And Japanese scientists recently announced the discovery of a massive cache of rare earths on the sea floor off the coast of Tokyo.
pretty sure this was discussed over 4 day trip…wouldn't you have.
But whether these alternatives can be cultivated in time is very much in doubt. Still, Beijing is likely wary of resorting to an export ban since it would likely only work once. Once the option has been invoked once, analysts say, efforts to develop these alternative sources will likely accelerate.
https://www.zerohedge.com/news/2019-05-28/beijing-seriously-considering-rare-earth-export-ban
The system has bet that it will move rates in september-down. This has changed since that post.
https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
>Also…we have Space Force now
that also going to affect precious metals pricing too. Too many variables with that to make any accurate or meaningful predictions. The silver/gold ratio going to re-adjust but it all depends on which way BOTH go.
>among 'other things'…
yes. They trotted out study after study "supporting" it.