30Jul2019 Pre-Market Commentary: Wall Street Futures Slide As Trump Slams China Amid Trade Talks, DOW Down 80 Points, Stocks Struggle Before Fed Meeting, Slew Of Earnings Reports

Here is the current market situation from CNN Money

European markets are broadly lower today with shares in Germany off the most. The DAX is down 1.92% while France’s CAC 40 is off 1.31% and London’s FTSE 100 is lower by 0.14%.

Oil prices boosted by expectations of Fed rate cut

Oil prices rose for a fourth day on Tuesday on optimism the U.S. Federal Reserve will this week cut interest rates for the first time in more than 10 years, supporting fuel consumption in the world’s biggest oil user.

Brazil Embraer’s deliveries of commercial jets continue to fall in second quarter

Brazil planemaker Embraer delivered 26 commercial planes in the second quarter of 2019, down from 28 planes in the same period of 2018 and 35 in 2017, the company said in a securities filing on Tuesday.

BP profit again outstrips forecasts, lifted by higher oil output

A strong rise in oil and gas production helped BP offset weaker crude prices and refining profit to again beat profit expectations on Tuesday, boosting its shares.

Under Armour cuts North America revenue forecast; shares fall 10%

Sportswear maker Under Armour Inc on Tuesday cut its full-year revenue forecast for North America, its biggest market, in the face of stiff competition from bigger rivals Nike Inc and Adidas AG , sending its share down 10%.

Futures drop as eyes shift to Fed meeting, Apple earnings

U.S. stock index futures dropped on Tuesday, as worries about the scale of consensus at the Federal Reserve in favor of deeper cuts in interest rates ate into the positive sentiment that drove indexes to record highs last week.

Swiss help Japan’s investigation into ex-Renault-Nissan boss Ghosn

Swiss prosecutors said on Tuesday they are assisting Japanese authorities in their investigation into former Renault and Nissan Motor boss Carlos Ghosn, who faces charges of fraud and misconduct.

D.R. Horton profit beats as lower home prices boost demand

No.1 U.S. homebuilder D.R. Horton Inc topped Wall Street estimates for quarterly profit and revenue on Tuesday, as lower home prices and declining mortgage rates whetted buyer appetite.

Higher consumer spending helps Mastercard beat quarterly profit estimates

Mastercard Inc on Tuesday beat Wall Street estimates for quarterly profit, as a robust economy encouraged customers to spend more, boosting fee income for the world’s second-largest payment processor.

Procter & Gamble sales, profit beat expectations; shares rise

Procter & Gamble Co’s quarterly revenue and profit beat Wall Street expectations on Tuesday, boosted by price hikes and strong demand for its beauty products such as SK-II and Olay, sending its shares up about 4% before the opening bell.

Fed’s Favorite Inflation Signal Remains Slow As Savings Rate Stabilizes

After May’s surprisingly positive rebound, income and spending growth was expected to slow in June and both printed right at expectations (+0.4% MoM and +0.3% MoM respectively).

This is the 4th month of slowing spending growth in a row…

Deal Or No-Deal, Brexit Dooms The Euro

Authored by Tom Luongo,

Deal or No-Deal, when it comes to Brexit, the euro is toast. Markets, however, believe the fantasy of its survival. As we approach the end of July the euro clings to support at $1.11, mere pips away from a technical breakdown.

BOJ Does Nothing, Vows To Achieve “Price Stability Target”

Submitted by Takashi Miwa of Nomura

The Bank of Japan chose to leave its monetary policy unchanged at its 29-30 July monetary policy meeting. This was an unsurprising outcome, as forecasters had by a wide margin expected no policy changes: 38 of 47 of those surveyed by Bloomberg in July indicated that they expected the BOJ to leave its policy as is. This BOJ monetary policy meeting was lined up to occur just prior to an FOMC meeting that is widely expected to end in a rate cut, and the concern has been raised that the BOJ may have no viable options with which to respond to the yen appreciation that could result from a US rate cut. For this reason, some forecasters had posited that the BOJ might extend the timeline given in its forward guidance that currently indicates that the Bank will “maintain the current extremely low levels of short- and long-term interest rates…at least through around spring 2020”. (14 of those surveyed by Bloomberg indicated that they expected forward guidance to be adjusted in a more accommodative direction.) Ultimately, the BOJ decided not to adjust its forward guidance at this meeting.

Why the BOJ took a pass on amending its forward guidance

There are two possible reasons why the BOJ chose not to revise its forward guidance on this occasion.

First, USD/JPY was quite consistently parked in the 108.5-109.0 range in the immediate run-up to the meeting.

Second, the BOJ may have worried that frequent adjustments to forward guidance might give off the impression that the Bank had used up all of its actual monetary policy ammunition.

However, we note that the statement that the BOJ will “make policy adjustments as appropriate…with a view to maintaining the momentum toward achieving the price stability target” is now followed by the assertion that the Bank “will not hesitate to take additi …

As Trade Talks Begin, Trump Lashes Out At China In Angry Tweetstorm

Just as the US trade delegation was set to leave for the first round of in-person talks with their Chinese counterparts since the latest Trump-Xi truce, President Trump sent out a furious series of tweets accusing Beijing of failing to live up to its promise to buy more American agricultural products – apparently “there are no signs that they are doing so” – while bashing the Chinese economy and suggesting that it might be better for the US in the long run to wait until after the 2020 election to make a deal, because “when I win, the deal that they get will be much tougher than what we are negotiating now…or no deal at all. We have all the cards, our past leaders never got it!”

Though, if Beijing gets lucky, they might get “one of the Democratic stiffs like Sleepy Joe. Then they could make a GREAT deal, like in the past 30 years…”

China is doing very badly, worst year in 27 – was supposed to start buying our agricultural product now – no signs that they are doing so. That is the problem with China, they just don’t come through. Our Economy has become MUCH larger than the Chinese Economy is last 3 years….

— Donald J. Trump (@realDonaldTrump) July 30, 2019

..My team is negotiating with them now, but they always change the deal in the end to their benefit. They should probably wait out our Election to see if we get one of the Democrat stiffs like Sleepy Joe. Then they could make a GREAT deal, like in past 30 years, and continue

� …

Plot thickens at Coffee Day: I-T sources doubt authenticity of note

Plot thickens at Coffee Day: I-T sources doubt authenticity of noteThe signature in Siddhartha’s ‘final’ note and the one seen in his firm’s annual reports don’t match: that is the claim.

Going beyond the business of coffee at CCD

Going beyond the business of coffee at CCDSiddartha’s letter says, business difficulties, including financial obligations, were a motivating factor.

Axis Bank sees a 95% jump in net profit in Q1

Axis Bank sees a 95% jump in net profit in Q1The numbers failed to meet poll ET Now poll projection of Rs 1,850 crore by a wide margin.

Economic Report: Consumer spending posts smallest gain in four months, but incomes and savings rise

American consumers didn’t spend as much in June as they did in the prior three months, but it’s not because they don’t have the money. Incomes rose strongly for the fifth month in a row and an already high savings rate edged even higher

Cannabis Watch: Cannabis companies are having a horrible summer as scandals mount and stocks slide

The cannabis sector has hit a three-month summer slump, weighed down by a series of scandals, regulatory deadlock and a growing sense that the industry is not delivering the gold rush that some investors were expecting.

2020 candidate Kamala Harris wants Wall Street to pick up the tab for her ‘Medicare For All’ plan

Presidential hopeful Kamala Harris, a California senator, wants to pay for expanded health coverage by taxing financial trades.