Written by Gary
US stocks lower as industrials slide (SPY -0.2%). Global share rally cools as US turns up trade heat on Europe.
Here is the current market situation from CNN Money | |
European markets are lower today with shares in Germany off the most. The DAX is down 0.56% while London’s FTSE 100 is off 0.25% and France’s CAC 40 is lower by 0.22%. |
What Is Moving the Markets
Here are the headlines moving the markets. | |
Big Wynn? Vegas giant makes $7.1 billion play for Australia’s CrownWorld No. 2 casino operator Wynn Resorts made a A$10 billion ($7.1 billion) takeover approach for Australia’s Crown Resorts, the target company said on Tuesday, hoping to expand its geographic reach as it faces growth hurdles in Asia. | |
Bank of America to raise minimum wage to $20 per hour by 2021Bank of America Corp said on Tuesday it would raise its minimum wage to $20 per hour in increments over a two-year period. | |
American Airlines cuts first-quarter forecast for unit revenueAmerican Airlines Co Group Inc said on Tuesday its first-quarter revenue per available seat mile would be below its previous forecast due to the groundings of Boeing 737 MAX planes and the U.S. government shutdown. | |
EU plans for own retaliation in aircraft dispute with U.S.The European Union has begun preparations to retaliate over Boeing subsidies, an EU official said on Tuesday, a day after Washington listed EU products it plans to hit with tariffs in their aircraft dispute. | |
Trump slams EU in aircraft dispute, pushes tariffs on $11 billion of importsU.S. President Donald Trump said on Tuesday the United States would impose tariffs on $11 billion of products from the European Union, a day after U.S. trade officials proposed a list of EU products to target as part of an ongoing aircraft dispute. | |
Aramco gets whopping $100 billion demand for landmark bondOrders for Saudi Aramco’s debut international bonds topped $100 billion on Tuesday, a record breaking vote of market confidence for the oil giant despite some investor concerns about government influence over the company. | |
Lenders seize UK retailer Debenhams, wiping out AshleyDebenhams’ lenders took control of the ailing retailer on Tuesday after it went into administration, wiping out shareholders including billionaire Mike Ashley in the latest corporate failure on Britain’s high street. | |
Exclusive: Bottle maker Verallia set for possible 4 billion euros IPO – sourcesBuyout group Apollo is preparing French glass bottle maker Verallia for a stock market listing later this year, in what could become one of the largest French initial public offerings of the year, people close to the matter said. | |
China wants to ban bitcoin miningChina’s state planner wants to eliminate bitcoin mining in the country, according to a draft list of industrial activities the agency is seeking to stop in a sign of growing government pressure on the cryptocurrency sector. | |
Canadian Crypto Exchange QuadrigaCX Officially Declared BankruptAuthored by Ana Alexandre via CoinTelegraph.com, Canada’s major cryptocurrency exchange QuadrigaCX has been officially declared bankrupt, local media outlet CBC reported on April 8. | |
Wal-Mart Is Rolling Out The Robots After Raising Minimum WageOffering yet another lesson in how raising the minimum wage can destroy jobs, particularly for the most poorly compensated workers whom activists had intended to help, the Wall Street Journal reported on Tuesday that Wal-Mart is deploying robots to carry out mundane tasks like mopping its floors and tracking inventory as it seeks to cut down on labor costs after raising wages last year, while also expanding into new services like grocery delivery. Wal-Mart, which is the largest employer in the US, said at least 300 stores will introduce machines that scan shelves for out-of-stock products. Meanwhile, so-called “autonomous floor scrubbers” will be deployed in 1,500 stores, and conveyor belts that automatically scan and sort products as they are loaded off of trucks will more than double to 1,200. Another 900 stores will install 16-foot-high towers that will allow customers to pick up their online grocery orders without interacting with humans. | |
Rally Fizzles, Futures Drift As Trump Opens New Trade War Against EuropeThe global equity rally stumbled for the second day, and risked running out of steam ahead of Wednesday’s action-packed event bonanza, even as Asian and European shares gained while US equity futures pared losses as investors appeared to shrug off threats from President Trump for new tariffs on goods produced in the EU in retaliation for Airbus subsidies. Treasuries were unchanged, as the dollar drifted lower. | |
Biggest Orderbook In History: Aramco Bond Demand Tops Record $100 BillionUpdate: just as we expected earlier (see below), the Aramco order book has now crossed $100 billion, making this not only the largest ever orderbook seen in emerging markets, covering 10x the $10 billion Aramco is expected to raise (a number that will almost certainly jump shortly), but the largest orderbook in bond market history, surpassing the prior record when Verizon drew $100BN of orders for a record-breaking $49BN corporate bond sale in 2013. * * * Yesterday, when previewing the massive Aramco bond offering coming in a time of sheer yield desperation, and when the offering was “only” 4x oversubscribed, we said that demand could even surpass the record $53 billion in bids that Qatar received for its $12 billion bond sale last year. Well, fast forward just 24 hours later when not only is the Saudi murder of Jamal Khashoggi long forgotten, but demand for the inuaugural bond has doubled and with hours to go before the 6-part bond offering prices, there is now a staggering $85 billion of orders from investors. The Saudi state-backed oil giant, which last week revealed that it was the world’s most profitable company, earning over $110 billion each year… | |
Futures Movers: U.S. oil prices hold at 5-month highs as Libyan civil unrest threatens supply crunchU.S. oil futures prices hold at five-month high in firmer Tuesday action, as investors were cautious around potential supply outages tied to civil unrest in Libya. | |
Deep Dive: Walgreens and CVS stocks look like tempting values, but investors may be swallowing a bitter pillThere are fundamental problems for brick-and-mortar pharmacies that the companies may be unable to solve. | |
Earnings Outlook: Bank earnings preview: The Fed’s moves are squeezing profits once againStill, the Federal Reserve’s support for the economy could provide support for banks in the longer term. |
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