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08.21.2019 18 new Morning Note posts under Morning Note (10) and International Summary (8)

International Summary

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International Summary

"CAPIS Global Recap – 7/15/2019"

posted by Clayton Duff on 07/15/2019 at 6:45 am

by Clayton Duff

07/15/2019 at 6:45 am

Asian Headlines

Post better GDP, Industrial Production, and Retail sales readings for China local indices there led the region. IT names were strong with broad gains seen.  Hong Kong too closed up with the Health Care sector a notable gainer.  The Nikkei was closed for Marine Day.  To the downside both Australia and Korea finished down with IT and Communication names weighing in the former.  Note that tonight RBA minutes from the July meeting will be released Down Under.

While the YoY reading met estimates and showed a slowing in growth the QoQ result for the 2Q GDP in China was a bit better.  Industrial Production results were strong with retail sales seeing gains from autos and online sales.  From late Friday post the headline numbers on the their trade balance Chinese exports of rare earths rose with 1H exports to the US down 2.6% YoY.  Imports though from the US fell just over 25% on a YoY basis.  On a more internal focus Aggregate Financing in June reached 2.26T Yuan, well ahead of the 1.9T estimate. The PBoC refrained again from open market ops but noted the planned 3rd phase of RRR cuts occurred, releasing CNY100B in funds for rural commercial banks.

  • Samsung finished up .3% with the firm reported to have scored much-needed materials despite the chip-component ban in Japan.  Both Samsung and SK Hynix +2% were able to secure hydrogen fluoride locally with suppliers Soulbrain +18% and Foosung +30% both higher.
  • Construction equipment firm Zoomlion roared 7.5% higher after noting it sees 1H NI growth up 172-212%,
  • Privately held Huawei is again in the news with the Trump administration said to allow US firms to again do business with them in the next 2-4 weeks.

European Headlines

After a tick up at the open European indices gave up gains to trade at slightly lower levels. However, markets have managed to rebound with small gains seen ahead of the US open. Sector moves are evenly split with losses thus far held to less than a percent.  Autos and Basic Resources are enjoying gains today with overall volume off 26%. Economic releases are scant with Switzerland seeing a pullback in producer & import prices.

Netherlands-listed Galapagos +18% is to the upside today on word current shareholder Gilead is upping their holdings in the firm to 22% from 12.3%.  The $5.1B investment gives Gilead access to Galapagos’ pipeline of research into diseases pertaining to inflammation and fibrosis. The two have previously partnered on a rheumatoid arthritis treatment.  The deal includes the ability for Gilead to increase their holding to 29.9%.

Also in focus, Anheuser-Busch -1.2% fell today after it had pulled its IPO for its Asian unit. On less than stellar interest the shelved deal could have raised $9.8B for the firm as it swims in a sea of debt.

Retailer Sports Direct is over -6% lower with regulators requiring more time to go over 2018 audit of their books prompting the firm to delay their quarterly results.  The firm said the integration of House of Fraser was proving to be more difficult than thought with doubt raised on whether HoF would continue in business.  Also, the firm will delist Game Digital from the LSE after it acquired 84% of it stock.

Miner Antofagasta +5% received positive news as an arbitration tribunal awarded them and Barrick Gold $5.84B concerning a pulled mining license by Pakistan. As they expect this to play out further into the future a rep for Antofagasta said they will not book anything for the win until funds actually are received.

UK 1) Rightmove House Prices MoM Jul -0.20% 0.30%
UK 2) Rightmove House Prices YoY Jul -0.20% 0.00%
CH 3) New Home Prices MoM Jun 0.66% 0.71%
CH 4) Fixed Assets Ex Rural YTD YoY Jun 5.50% 5.80% 5.60%
CH 5) Industrial Production YoY Jun 5.20% 6.30% 5.00%
CH 6) Industrial Production YTD YoY Jun 5.90% 6.00% 6.00%
CH 7) Retail Sales YoY Jun 8.50% 9.80% 8.60%
CH 8) Retail Sales YTD YoY Jun 8.20% 8.40% 8.10%
CH 9) Surveyed Jobless Rate Jun 5.10% 5.00%
CH 10) GDP SA QoQ 2Q 1.50% 1.60% 1.40%
CH 11) GDP YTD YoY 2Q 6.30% 6.30% 6.40%
CH 12) GDP YoY 2Q 6.20% 6.20% 6.40%
CH 13) Property Investment YTD YoY Jun 10.90% 11.20%
SW 14) PES Unemployment Rate Jun 3.60% 3.40%
NE 15) Trade Balance May 5.6b 4.2b
NE 16) Retail Sales YoY May 4.40% 4.70%
FI 17) CPI MoM Jun 0.10% -0.20%
FI 18) CPI YoY Jun 1.00% 1.20%
FI 19) Current Account Balance May 0.32b -4.24b
FI 20) Retail Sales Volume WDA YoY May F 0.00% -0.30%
DE 21) PPI MoM Jun -0.80% -0.40%
DE 22) PPI YoY Jun -2.50% -0.40%
SZ 23) Producer & Import Prices MoM Jun -0.50% 0.00%
SZ 24) Producer & Import Prices YoY Jun -1.40% -0.80%
IN 25) Wholesale Prices YoY Jun 2.25% 2.02% 2.45%
SZ 26) Total Sight Deposits CHF 12-Jul 579.0b 579.0b
SZ 27) Domestic Sight Deposits CHF 12-Jul 480.1b 476.1b
IT 28) General Government Debt May 2364.7b 2373.3b
IR 29) Trade Balance May 6501m 5355m
IN 30) Imports YoY Jun 4.30%
IN 31) Trade Balance Jun -$15000.0m -$15360.0m
IN 32) Exports YoY Jun 3.90%
BE 33) Trade Balance May -1286.6m

About the Author

Clayton Duff headshot
ClaytonDuffFVP,Senior International Trader

Clayton Duff joined the firm in 2008. He has worked in the industry since 1994 and held various trading and sales positions before CAPIS, including four years as a trader for First Southwest. He earned his bachelor’s degree from the University of Texas Arlington. Clayton maintains Series 3,...

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