Archives of “November 2019” month

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US-China relations: US Senate passes bill in support of Hong Kong protests

  
  Analysis
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The bill will head on back to the house of Representatives now on its way to final passage.

Its a good idea to look at this in the context of trade talks. You can bet Chinese leaders will be. Not a risk positive.

Overnight :Nasdaq the sole record maker

  
Analysis, US Market
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S&P and Dow close lower

After a few days where the major indices all closed at record levels, today only the Nasdaq is closing with gains. The Dow led the way to the downside.
Home Depot is weighing on the Dow after revenues and forward guidance disappointed today. The price is down $-13.06 or -5.47%.   Home Depot has the 4th highest component weight in the Dow at 5.78%, hence the big impact.
The final numbers are showing:
  • S&P index fell -1.87 points or -0.06% at 3120.17. The high price reached 3127.64. The low extended to 3113.47
  • Nasdaq index rose 20.722 points or 0.24% at 8570.66. The high reached 8589.758. The low extended to 8536.727.
  • Dow index fell -102.37 points or -0.37% at 27933.85. The high reached 28090.21. The low extended to 27894.52
Some winner for the day included:
  • AMD, +3.43%
  • Tesla, +2.75%
  • First Solar, +2.71%
  • Broadcom, +2.12%
  • Amgen, +1.77%
  • Visa, +1.73%
  • Mastercard, +1.58%
  • Intuitive Surgical, +1.52%
  • Intuit, +1.41%
  • Adobe, +1.20%
  • Pfizer, +1.18%
Some of the biggest losers included:
  • Slack, -8.40%
  • Home Depot, -5.47%
  • AT&T, -4.04%
  • Beyond Meat -2.96%
  • Qualcomm, -2.79%
  • Micron, -2.57%
  • Nvidia, -2.01%
  • Bristol-Myers Squibb, -2.0%
  • Chevron, -1.77%
  • Phillip Morris, -1.52%
  • FedEx, -1.30%

Near-deal from May now being used as benchmark on how much tariffs to be rolled back – report

  
  Analysis
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US contemplates removing more tariffs than anticipated

China and the US are discussing linking the size of tariff rollbacks to the preliminary terms set in the deal that failed in May, according to Bloomberg who cites two people familiar.
The White House is still debating the precise percentage internally but the report says a deal would at least include removing the Sept tariffs and eliminating the planned Dec tariffs.
China has demanded that all tariffs imposed after May be removed immediately and those from beforehand be lifted gradually.
The report says that some of the $250B in tariffs imposed in 2018 are under consideration to be rolled back and that opposition to the move has softened. Overall, the White House is looking at the tariffs holistically and debating on whether to remove somewhere between 35% and 60%. Those percentages fall inline with what percentage of the overall deal Phase One accomplishes.
For reference, the US currently has tariffs on $360B in goods. That number was $250B before the May talks fell apart. On May 10, the US also raised the tariff rate on those $250B in goods to 25% from 10%.

Overall this report reflects a generally positive take and shows that both sides are working on a deal and perhaps closer than anticipated. This is the first indication they’re working off the May text but it’s also a hint that the US may remove more tariffs than anticipated. It would be a great signal for markets if anything from May or earlier was lowered.

Big gaps remain in China-US trade talks – Global Times

  
  Analysis
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This is more speculation than reporting

China’s Global Times is out with another piece downplaying the chances of a US-China trade deal.
There are no sources in the deal, instead the newspaper spoke to people who attended a US-China Entrepreneurs Roundtable.
“If the business roundtable was any indication, the trade negotiations still face major obstacles to reach any fair and reasonable deal,” the report says.
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