10Dec2018 Pre-Market Commentary: Wall Street Stock Futures Turn Positive As Wall Street Tries To Curb Last Week’s Sell-off, DOW Up 0.1%, WTI Slides Into The Mid 51 Handle, US Dollar Rising

Here is the current market situation from CNN Money

European markets are mixed. The FTSE 100 is higher by 0.51%, while the DAX is leading the CAC 40 lower. They are down 0.31% and 0.30% respectively.

Huawei CFO bail hearing to resume in Canada as Beijing steps up pressure

A top executive of Chinese tech giant Huawei Technologies is due back in a Canadian court on Monday where she’ll fight for her freedom with the help of pressure from Beijing against prosecutors’ claims she cannot be trusted.

Japan’s top three telcos to exclude Huawei, ZTE network equipment: Kyodo

Japan’s big three telecom operators plan not to use current equipment and upcoming fifth-generation (5G) gear from China’s Huawei Technologies Co Ltd [HWT.UL] and ZTE Corp , Kyodo News reported on Monday.

China says it has never heard of any country having security problem with Huawei

China’s foreign ministry on Monday said it had never heard of any country having a security problem with Huawei Technologies Co Ltd [HWT.UL], after a top executive of the telecoms giant was arrested in Canada.

Nutella maker Ferrero in race to buy Campbell International business: sources

Nutella maker Ferrero is interested in buying Campbell Soup’s international business, which includes biscuit brand Arnott’s, two sources close to the matter said on Monday.

Futures slide further as global growth fears mount

U.S. equity futures fell about 0.4 percent to six-week lows on Monday, as a global selloff continued on signs of cooling growth and worries that escalating tensions between the United States and China could scuttle their fragile trade truce.

Ghosn, Nissan formally charged in financial misconduct scandal

Tokyo prosecutors indicted ousted Nissan Motor chairman Carlos Ghosn for under-reporting his income and also officially charged the automaker, making the firm culpable for the financial misconduct scandal that has shocked the industry.

Chinese state media distance Huawei arrest from U.S. trade talks

Chinese state media on Monday denounced the arrest of a top executive at tech giant Huawei , but did not link it to talks to resolve a trade dispute with the United States, an apparent effort not to undermine prospects for a deal.

SoftBank’s record IPO reaches $23.5 billion after extra share sale

SoftBank Group Corp is set to raise 2.65 trillion yen ($23.5 billion) in Japan’s biggest-ever IPO – a share sale widely regarded as finalizing the group’s transition from domestic telco to a monolithic global tech investor.

Stock selloff snowballs on fresh fears for world growth

Losses on global stocks snowballed on Monday, with European markets following Asian peers lower as fresh signs emerged of slowing growth worldwide and fears grew that simmering U.S.-China tensions would torpedo chances of a trade deal.

Elon Musk Tells 60 Minutes He Has No Idea How To Smoke Pot; Slams SEC: “I Do Not Respect Them”

If you didn’t understand that Elon Musk doesn’t quite “get” what being a public company is about, and how not to commit securities fraud from his funding secured tweet, the litany of lawsuits he has catalyzed or his downright insane behavior over the last year, you may be one of the few who were not shocked by his appearance on 60 Minutes Sunday night when he took to a national stage to laugh in the face of $35,000 Model 3 reservation holders and (again) belittle and insult the Securities and Exchange Commission, with whom he recently entered into a settlement with.

Musk said about the SEC on Sunday: “I want to be clear. I do not respect the SEC. I do not respect them.”

When asked about the terms of the settlement he had entered into, which required him to pay a fine and have his public communication monitored by the company, he responded by simply telling Lesley Stahl that he wasn’t holding up his end of the bargain. In fact, Musk responded by acting like the entire settlement never seemed to happen.

Lesley Stahl: Have you had any of your tweets censored since the settlement?

Elon Musk: No.

Lesley Stahl: None? Does someone have to read them before they go out?

Elon Musk: No.

Lesley Stahl seemed positively charmed by Musk’s response:

Blain: “I’ve Never Experienced A December Like This”

Blain’s Morning Porridge, submitted by Bill Blain

“Let no tongue on earth be silent, every voice in concert ring, evermore and evermore! “

From now till Christmas, the morning quote will be from Christmas songs. Give yourself 10-points for each one you recognise, and an extra 10 if you sing it out loud in the office…

Over the weekend I was told recent Porridge’s have been far too Doom and Gloom flavoured. It’s been suggested I should relax about the perilous state of the global economies and stop worrying so much about fractured politics… Even take my own advice about things never being as bad as they look – breathe deep and move on. Although the stories dominating the headlines look profoundly negative – “their collective effect will be little more than light ripples across the teacup of global activity.” (Not sure I believe that… this feels serious…)

However, the Morning Porridge is not about not worrying or trying to scare readers! It’s about spotting the events likely to discombobulate markets, and how these might be approached as opportunity. Events trigger volatility – and volatile markets present opportunities. On the other hand, I’ve never experienced a December like this – normally markets relax, business activity tumbles, and everyone parties. This time it feels very different. Markets aren’t supposed to stay serious through December! It bodes ill for January.

Sadly, the stories likely to dominate the markets this week do not make me think “its beginning to feel a lot like Christmas”.
There is a definite lack of resilience to current markets. It does not feel like we are on solid foundations – perhaps it’s because its only 2 more Brexit secretaries till Christmas, or maybe it’s because we’re all hoping next year will get better? (Hope …

India Stock Futures Tumble After Central Bank Head Unexpectedly Resigns In Government Spat

India’s central bank governor Urjit Patel unexpectedly announced his resignation on Monday following a tense stand-off with Prime Minister Narendra Modi’s government over the bank’s independence.

In a statement on the Reserve Bank of India’s website, Patel said that “on account of personal reasons, I have decided to step down from my current position effective immediately.” He stepped down from a position he held since September 2016, when he was selected to replace Raghuram Rajan.

The Oxford-trained Patel, who had tried to stay away from the spotlight, was initially seen playing along with Prime Minister Narendra Modi after he backed a ban on high-value currency notes in November 2016. Since then, he has waged a war to get India’s struggling banking system in order and punish errant borrowers who have stopped servicing their debt even though they have the ability to pay.

His exit comes at a time when India, which is closing in on Italy to become home to banks with the worst bad-loan ratio among major economies, is delivering a bitter pill to resuscitate its banking sector.

Earlier this year, the RBI introduced new rules forcing lenders to declare a delinquent borrower even if payments we …

World Markets “In World Of Pain” As Nothing Can Stop Relentless Stock Selling

After another painful week for bulls, it’s again a sea of red this morning with the selling extending on Monday as U.S. equity futures slide but off their worst sessions while European stocks follow Asian shares lower as traders focused on the latest dismal trade and inflation data from China over the weekend and the sharp drop in Japan’s GDP, renewing concerns for slowing global growth while the escalation of tensions between Washington and Beijing continues. The dollar was mixed while the euro advanced, and 10Y TSY yields rebounded from session lows.

The biggest surprise may be that Monday is not more in the red, with the following non-exhaustive list of potential risk-off drivers hanging over Monday’s open (as succinctly summarized by Bloomberg’s Garfield Reynolds):

China summons U.S. Ambassador over the Huawei case

Trump Chief of Staff Kelly to leave, amid a welter of fresh Mueller developments

China reports weaker trade and inflation data

May pushes ahead on Brexit vote despite Cabinet, DUP opposition

Soggy U.S. payrolls, though not soggy enough to stop a December Fed hike

France protests intensify, raising concern of economic damage

“Another day, another reason to sell risk …

The Wall Street Journal: Travelport to go private in $2 billion deal with Siris, Evergreen

Travelport Worldwide Ltd., which operates a travel-commerce platform, has agreed to be acquired by affiliates of Siris Capital Group LLC and Elliott Management Corp. in an all-cash deal valued at about $2 billion.

London Markets: FTSE 100 climbs as pound falls on fresh Brexit uncertainty

London markets were turbulent on Monday, with the FTSE 100 falling, then reversing direction on Brexit headlines.

These Lowe’s stores are closing in the next three months

Lowe’s says it will close 47 underperforming stores and 4 other locations, including 20 stores in the U.S., as part of its plan to focus on its most profitable stores.