tyb
Morning Market report
Some headlines
Alibaba files for HK listing that may raise $20 billion as soon as third quarter
China’s biggest e-commerce company Alibaba Group Holding Ltd has filed confidentially for a Hong Kong listing that could raise up to $20 billion as early as the third quarter of this year.
biggest secondary for 7 years.
https://www.reuters.com/article/us-alibaba-listing-hongkong/alibaba-files-for-hk-listing-that-may-raise-20-billion-as-soon-as-third-quarter-source-idUSKCN1TE0M2
Chinese vice premier urges more support for economy amid trade war
Chinese regulators should step up support for the economy and keep ample liquidity in the financial system, Vice Premier Liu He said on Thursday, suggesting Beijing would soon unveil more policies to bolster growth amid rising U.S. trade pressure.
translation=the last round of printing and yuan 'revaluation' did not do much so we will do it again and again and again, etc.
https://www.reuters.com/article/us-china-economy/chinese-vice-premier-urges-more-support-for-economy-amid-trade-war-idUSKCN1TE072?
US Futures, Global Stocks Bounce As Oil Surges After Persian Gulf Tanker Attack
It was shaping up as another bad day for stocks, which have once again been spooked by the lack of de-escalation in the US-China trade war (as reported yesterday, the S&P would have to drop below 2,650 for that to happen), when Iran came to the bulls' rescue, and "attacked" two tankers in the Straits of Hormuz, sending oil soaring and pushing energy stocks - and European stocks and US equity futures - higher, even as bond yields dropped amid a general flight to safety.
the system will buy bonds is what 'flight to safety' used to mean.
Brent surged as much 4% after the attacks added to the already-heightened tensions between Iran and the United States. And of course, given that oil was at 5-month lows yesterday,
people are taking precautions that it might escalate into something further.
5 month lows and 'suddenly' a tanker gets attacked- really nigga's?
The European Stoxx 600 Index opened in the red following a second day of declines across Asia, but it went on to reverse losses, and contracts on the three main U.S. gauges tracked the move,
as oil exploded higher helping propel energy stocks on both sides of the Atlantic. Europe’s oil producers moved higher in the region’s stock markets. Shares were also lifted by some stellar gains in the tele-coms sector as Germany dished out licenses for its new 5G mobile network to some new entrants.
Investors will be looking to what the FOMC will say after its next policy meeting on June 18-19, with Fed Funds rate futures pricing in a 25-basis-point rate cut for the subsequent policy review on July 30-31.
That is 180 degrees opposite to the Fed’s projection three months ago, when policy makers saw gradual rate hikes in coming years.
pepe saw the actual evidence of it weeks ago-all of you FIRED!!!-if I were a gambling pepe I would say a .25 cut next week and again at july meeting.
In rates, the 10-year U.S. Treasuries yield dipped to 2.103%, near Friday’s 2.053%, its lowest level since September 2017, while Germany borrowing costs sank back toward all-time lows in Europe.
see cap#3 for our 10 year and if you have not re-financed and can-do it
Oil held its biggest daily loss this month to trade near $51 a barrel as a surprise increase in American crude inventories and no sign of a breakthrough in the U.S.-China trade war damped sentiment. Just a few hours later oil prices surged after the U.S. Fifth Fleet said two oil tankers were damaged in an incident near the Strait of Hormuz – one of the ships’ operators described the incident as a suspected attack. The development will inflame already-rising political tensions in the region.
See cap#4 and right on cue for those Aramco bonds that would have had real issues after today if that had not habbened.
US Event Calendar- remaining data releases
9:45am: Bloomberg Consumer Comfort, prior 61.7-(this is a survey)
Away from that we’re due to hear from the BoE’s Carney this afternoon while the aforementioned Conservative Party leadership contest will also be closely watched.
Meanwhile, Euro Area finance ministers will gather in Luxembourg to discuss Italy and the Euro Area budget.
Remember TRUST the PLAN and TRUST POTUS-there may be some ups and downs here but overall the trend is your friend, this is a historic time and things may look 'out of whack'-they are-but it's a good thing.
https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx
https://www.bloomberg.com/markets/stocks/futures
https://www.dailyfx.com/crude-oil
https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/
yesterday
CrowdStrike Holdings, Inc. (CRWD)
58.00+24.00 (+70.59%)
pre-market today
61.50 +3.50 (6.03%)
9:25AM EDT
methinks they intentionally low-balled it so it will have space to 'fall' in to when all that gets released.
can't have oil at a 5 month low for very long with these out there.
Aramco sells $12 billion bonds out of record $100 billion demand
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Bond issue is huge market vote of confidence in Aramco
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Demand beats $67 bln for Saudi's inaugural bonds in 2016
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Some investors concerned about govt influence on Aramco
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Bond issue seen as a gauge of potential interest in eventual IPO
DUBAI, April 9 (Reuters) - Saudi Aramco is set to raise $12 billion with its first international bond issue after receiving more than $100 billion in orders, a record breaking vote of market confidence for the oil giant which has faced investor concerns about government influence over the company.
State-owned Aramco's bond issue, split into maturities ranging from three to 30 years, is seen as a gauge of potential investor interest in the Saudi company's eventual initial public offering.
Before the bond deal was marketed on Monday, Saudi Energy Minister Khalid al-Falih said initial indications of interest for the paper were over $30 billion.
Having swelled to over $100 billion during the sale process, demand appeared to be the largest ever for emerging markets bonds, fund managers said, surpassing order book value of more than $52 billion for Qatar's $12 billion deal last year, $67 billion for Saudi Arabia's inaugural issue in 2016 and $69 billion orders for Argentina's $16.5 billion trade that year.
Such strong interest was also the latest sign that international investors are pouring money back into Saudi Arabia, as the kingdom tries to move on from the murder of Saudi journalist Jamal Khashoggi after his killing at the hands of Saudi agents in October strained ties with Western allies.
"Purely on figures, it is a fantastic credit," said Damien Buchet, CIO of the EM Total Return Strategy, Finisterre Capital.
But he added: "The thing is, they are part of Saudi Arabia, they are a government arm. For equity investors this is always going to be an issue, more so than for bond investors."
The issue has attracted interest from a wide range of investors, as the oil producer's vast profits would put its debt rating - if unconstrained by its sovereign links - in the same league as independent oil majors like Exxon Mobil and Shell.
Aramco has insisted on its independence while meeting investors ahead of the bond issue last week, saying the Saudi government remained committed to Aramco's governance framework to safeguard its independence even when oil prices dropped.
But for some investors Riyadh's control over the oil giant is an issue as its state ownership means decisions will ultimately be for the benefit of the government rather than investors.
"Aramco is more transparent, has stronger credit metrics and is on an improving ESG (environmental, social and governance) trajectory whereas the government is more complex," said Mohieddine Kronfol, chief investment officer of Global Sukuk and MENA Fixed Income at Franklin Templeton Investments.
"The link between the two however is understandably very strong," he said.
NO PREMIUM
Previously reluctant to do so, Aramco last week opened for the first time its books to investor scrutiny, showing it is by far the most profitable company in the world.
Having made core earnings of $224 billion last year and with $86 billion in free cash flow at the end of 2018, Aramco does not need to borrow.
Initial indications of over $30 billion in investor demand prompted Aramco to market the notes with almost no premium to Saudi government debt.
"They are clearly trying to price it (the bond) off existing AA corporates in this world, so people are looking at curves like Shell, Total, Exxon but also technology giants like Apple," said Buchet.
After "tightening" the price guidance, Aramco on Tuesday ended up selling a $1 billion three-year tranche offering investors 55 basis points (bps) over U.S. Treasuries, a $2 billion five-year tranche at 75 bps over the benchmark, a $3 billion 10-year tranche at 105 bps, $3 billion in 20-year notes at 140 bps and $3 billion in 30-year bonds at 155 bps, a document issued by one of the banks leading the deal showed.
Managers said the pricing meant the bonds will yield less than Saudi Arabia, which owns it. This is rare, as state-owned entities generally offer higher returns than their governments.
"I think it's madness that's it's going inside the sovereign by a decent margin. Despite the fundamentals of Aramco, it's ultimately sovereign risk," said Richard Briggs, emerging markets strategist at London-based CreditSights.
https://finance.yahoo.com/news/aramco-breaks-record-demand-bond-074445360.html
U.S. weekly jobless claims rise; imported inflation weak
WASHINGTON (Reuters) - The number of Americans filing applications for unemployment benefits unexpectedly rose last week, which could add to concerns that the labor market was losing steam after job growth slowed sharply in May.
Other data on Thursday showed import prices fell by the most in five months in May amid a broad decline in the cost of goods, the latest indication of muted inflation pressures. Signs of a slowing labor market and tepid inflation strengthen the case for the Federal Reserve to cut interest rates this year.
U.S. central bank policymakers are scheduled to meet on June 18-19 against the backdrop of rising trade tensions. Financial markets have priced in at least two rate cuts by the end of 2019. A rate cut is not expected next Wednesday.
Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 222,000 for the week ended June 8, the Labor Department said on Thursday. Economists polled by Reuters had forecast claims decreasing to 216,000 in the latest week.
While layoffs remain relatively low, the third straight weekly increase in claims suggests some softening in labor market conditions. The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, rose 2,500 to 217,750 last week.
The economy created only 75,000 jobs in May, with annual wages increasing at their slowest pace in eight months, the government reported last week. U.S. financial markets were little moved by the claims data.
The slowdown in hiring, which occurred before a recent escalation in trade tensions between the United States and China, raised fears of a sharp deceleration in economic growth. The claims data is being closely monitored for signs of any fallout from the trade war.
President Donald Trump in early May imposed additional tariffs of up to 25% on $200 billion of Chinese goods, prompting retaliation by Beijing. Trump on Monday threatened more duties on Chinese imports if no deal was reached when he meets Chinese President Xi Jinping at a G20 summit later this month in Japan.
A tariff on all goods from Mexico to force authorities in that country to stop immigrants from Central America from crossing the border into the United States was narrowly averted after the two nations struck an agreement late on Friday.
ECONOMY SLOWING
Data so far have suggested a sharp slowdown in U.S. economic growth in the second quarter after a temporary boost from exports and an accumulation of inventory early in the year. In addition to the sharp moderation in hiring last month, manufacturing production, exports and home sales dropped in April, while consumer spending cooled.
The Atlanta Fed is forecasting gross domestic product increasing at a 1.4% annualized rate in the April-June quarter. The economy grew at a 3.1% pace in the first quarter.
In another report on Thursday, the Labor Department said import prices dropped 0.3% last month, the biggest decline since last December, after edging up 0.1% in April.
Import prices exclude duties. In May, prices for imported fuels and lubricants declined 1.0% after rising 1.7% percent in the prior month. Imported food prices dropped 0.8% last month after surging 2.7% in April.
Excluding fuels and food, import prices slipped 0.2% in May after falling 0.3% in the prior month. So-called core import prices decreased 1.5% in the 12 months through May. Though the dollar has weakened a bit this year, its gains last year against the currencies of the United States’ main trading partners continue to depress core import prices.
https://www.reuters.com/article/us-usa-economy-unemployment/u-s-weekly-jobless-claims-rise-imported-inflation-weak-idUSKCN1TE1SS?il=0
that is lost on many anon-quite a mess if it had oil in it wouldn't you think? just like the fact that oil prices were at a 5 month low and suddenly this habbened. Those aramco bonds are tied to oil prices. But like most economic things in here that will also be missed
Splunk Execs sold $3.41m in shares-June 12
Splunk Inc. (Splunk) is engaged in the development and marketing of software solutions. The Company's offerings enable users to collect, index, search, explore, monitor and analyze data. Its offerings address diverse data sets that are referred to as big data and are specifically used for machine data. Machine data is produced by various software application and electronic devices in an organization and contains a definitive, time-stamped record of various activities, such as transactions, customer and user activities and security threats. Its products help users in various roles, including information technology (IT), security and business professionals, to analyze their machine data and achieve real-time visibility into and intelligence about their organization's operations. In addition, the Company offers user behavioral analytics to help detect, respond to and mitigate advanced, hidden and insider threats. The Company offers Splunk Enterprise, which is a machine data platform.
Number of employees : 3 200 people.
https://www.marketscreener.com/SPLUNK-INC-10454129/company/
https://www.finviz.com/quote.ashx?t=SPLK&b=2
shareholder meeting today too.
Co-Pres. of Heico Corp sold $3.96m in shares-June 11
HEICO Corporation manufactures Federal Aviation Administration (FAA)-approved jet engine and aircraft component replacement parts, other than the original equipment manufacturers (OEMs) and their subcontractors. The Company also manufactures various types of electronic equipment for the aviation, medical, telecommunications and electronics industries. It operates through two segments: Flight Support Group (FSG) and Electronic Technologies Group (ETG). The FSG segment consists of HEICO Aerospace Holdings Corp. and HEICO Flight Support Corp. and their collective subsidiaries. The FSG segment designs and manufactures jet engine and aircraft component replacement parts. The ETG segment consists of HEICO Electronic Technologies Corp. and its subsidiaries. The ETG segment designs and produces mission-critical subcomponents for various markets, which are utilized in larger systems, including targeting, tracking, identification, testing, communications, telecom and computer systems.
Number of employees : 5 400 people.
https://www.marketscreener.com/HEICO-CORP-12898/company/
https://www.finviz.com/insidertrading.ashx?oc=1031083&tc=2&b=2
so you let the MSM do your thinking for you?
They are not going to tell you that.
good luck with that.