David Fuller and Eoin Treacy's Comment of the Day
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    Don't Trade a Bear Like a Bull; Reality Check for Earnings is Good

    Thanks to a subscriber for this report from Micheal Wilson for Morgan Stanley which may be of interest. Here is a section:

    Bid to Topple May Falters as Tory Lawmaker Revolt Struggles

    This article by Kitty Donaldson for Bloomberg may be of interest to subscribers. Here is a section:

    “My expectation is that the number will be reached and there will be a vote at some point,” Crispin Blunt said in an interview in his House of Commons office under a full-size union flag. “One could argue that it would be better that that vote comes after the vote on the deal. If one were to sequence this properly: one would wait until we had the vote on the deal and then have the vote on the prime minister’s position as leader of the Conservative Party.”

    Parliament is due to debate May’s Brexit deal in early December, and politicians across the chamber say they will vote it down.

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    India and Its Central Bank Signal Truce After Marathon Meet

    This article by Shruti Srivastava and Anirban Nag for Bloomberg may be of interest to subscribers. Here is a section:

    India’s central bank signaled a compromise with the government by agreeing to study a demand for sharing a part of its capital -- an issue that had triggered a public spat between the monetary policy makers and their political bosses.

    The Reserve Bank of India will form a panel to consider the funds transfer to the government, the central bank said in a statement after the board meeting that lasted a little over nine hours. It, however, did not immediately yield to demands for easing lending norms for weak banks while retaining capital buffers for banks at 9 percent.

    “Both the RBI governor and the finance ministry walked the extra mile,” Sachin Chaturvedi, a member of the board said in an interview to Bloomberg. “They were flexible on several issues.”

    The government and the RBI have been sparring over how much capital the central bank needs and how tough its lending rules should be. For a nation that relies on imported capital to fund investment, the reaching of a middle ground is key to retaining investor confidence in the world’s fastest-growing major economy.

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    China Is Giving the World's Carmakers an Electric Ultimatum

    This article from Bloomberg News may be of interest to subscribers. Here is a section:

    The world’s biggest market for electric vehicles wants to get even bigger, so it’s giving automakers what amounts to an ultimatum. Starting in January, all major manufacturers operating in China—from global giants Toyota Motor and General Motors to domestic players BYD and BAIC Motor—have to meet minimum requirements there for producing new-energy vehicles, or NEVs (plug-in hybrids, pure-battery electrics, and fuel-cell autos). A complex government equation requires that a sizable portion of their production or imports must be green in 2019, with escalating goals thereafter.

    The regime resembles the cap-and-trade systems being deployed worldwide for carbon emissions: Carmakers that don’t meet the quota themselves can purchase credits from rivals that exceed it. But if they can’t buy enough credits, they face government fines or, in a worst-case scenario, having their assembly lines shut down.

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    Nvidia Targets Slashed, Outlook Sparks Worst Day in a Decade

    This article by Ryan Vlastelica for Bloomberg may be of interest to subscribers. Here is a section:

    Goldman removed Nvidia from its conviction list, writing that it had underestimated both a channel inventory build and a correction in the company’s gaming division.

    “While we view the inventory correction in Gaming as a one-time reset as opposed to a change in the long-term growth profile, we believe it could take a few quarters before the market regains confidence in the growth trajectory of the business, especially given the weak economic backdrop.”

    Goldman maintains its buy rating, writing that Nvidia still “has access to one of the best growth opportunity sets in Semis,” along with a “sustainable competitive lead.” but cuts its price target to $200 from $283. The average price target is around $239, according to data compiled by Bloomberg.

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