Short recap
Asia mostly in green with some hesitation about Fed
looking at June hike
Europe opening lower
Trump a bit “disruptive” in international field
Open to government shutdown, pushing for faster voting on
bills
US pushing China to agree on additional North Korea
sanctions
Brexit – GE-FR agreed on tougher stance towards
UK’s post-Brexit obligations (EUR 100 bln) Full
article
UK announced that they will not pay this amount, want to
discuss in details what are the rights and obligations
I love this one too…what discussions, all is written on the
paper and signed by them
Equities
Akzo Nobel meeting today to discuss offer PPG
Industries (USD 29 bln)
Peugeot to test self-driving cars in Singapore in
a partnership with nuTonomy
US auto sales losing the steam, the cycle likely
comes to an end
Valeant should be able to repay USD 5 bln by Feb
2018
Apollo, Blackstone, Centerbridge interested in Brookfield
Asset Management (CA)
Fairfax Financial looking to buy Home Capital
Active fund managers are underweighted Apple versus
indices despite high level of share price
VIX at 10.59 level – time to buy put options?
Earnings season
Apple’s iPhone sales/revenue down (customers waiting for
a new device), feeling the replacement cycle
Facebook – expecting higher revenue on mobile-ads,
market to focus on hiring and planned investments
AIG – markets is awaiting a CEO succession plan
Tesla – investors are very curious about the
company results as the company deliveries in Q1 jumped by 69% to record 25k
Home Capital Group (CA) – closely watched as there
are few bids in the wake of financial difficulties following mortgage fraud
accusation in the bubbling Canadian housing market
Others reporting: Prudential Financial, MetLife, Yum
Brands, Kraft Heinz Foods, Time Warners
Bonds
ECB bought much more FR (EUR 11.3 bln and IT (EUR 9.8
bln) bonds last month, while GE bonds purchases were in line
Amount that is in breach of the usual allocation key
ECB did so ahead of FR elections and due to issues IT is
coping with
10-yr Trys yield at 2.29% - trading a bit stronger ahead
of FOMC
10-yr Bund yield at 0.32%
10-yr Greek yield declined substantially to 6.16%
Gold – waiting for a catalyst: FOMC, US NFPs
Support 1249 (50% Fibo) and 1250 (50/200 DMA)
Data
EZ: Q1 GDP flash estimate – no change to 0.5%
US: ADP Employment report – expecting lower growth in
April
US: ISM Non-Manufacturing – expected slightly higher
Obamacare vote expected today/tomorrow
FOMC statement to be released (no press
conference)
Likely to discuss balance sheet (USD 4.5 tln, pace of
rate hikes, no policy change expected)
Just to refresh:
March PCE came at 1.6% as expected
Market pricing June hike at 70%
Upcoming
Friday – US NFPs
Focus on earnings while headline may not be stellar due
to Easter holiday
May 7 – French presidential elections 2nd
round (Macron/Le Pen – 60/40)
May 25 – OPEC/Non-OPEC meeting
Jun 11/18 – French Legislative (Parliamentary)
elections (a big question mark for Macron to gain majority)
Should you have any questions feel free to contact me
anytime.
Good luck Champs!
Mr Hawk
DISCLAIMER: This material was created for informational
purposes only and represents the Land of Trading team’s view of the past and
current economic and capital market environment. It is not an investment advice
and should not be viewed that way at all, and the creators of this material
cannot be held liable for any potential losses resulting from trading, where despite
this disclaimer someone would consider this material as an investment advice.
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