Here’s their flywheel: 1. Lower prices on more offerings 2. Increase customer visits 3. Attract 3rd-party sellers 4. Expand the store, extend distribution 5. Grow revenues per fixed costs 6. Rinse and repeat
Archives of “November 2019” month
rssLIVE: A live stream from Fed’s Powell testimony before the House Budget Committee
OPEC still sees oil surplus in early 2020 ahead of meeting next month
OPEC comments in its latest monthly report
- Signals that oil markets remain on course for a surplus in early 2020
- Expects global supplies to exceed demand by about 645k bpd in 1H 2020
- That is even if OPEC producers keep output at current levels
It could be a bit of a push to its other members to pursue deeper cuts next month, though so far many are disinterested in the idea. It’s going to be interesting to take stock of the oil outlook next year in light of recent supply/demand debate.
China officially lifts ban on US poultry meat imports
The move had been previously announced as part of trade talks between both countries but is now made official
China’s customs have announced that they would lift restrictions on the import of poultry meat from the US, effective immediately.
I guess that’s some good news in terms of the way trade talks are progressing – that there’s still some goodwill – but as far as milestones go, this pales largely in comparison to the likes of tariffs and the US’ demand for agricultural purchases.
Eurozone Q3 GDP second reading +0.2% vs +0.2% q/q prelim
Latest data released by Eurostat – 14 November 2019
- GDP +1.2% vs +1.1% y/y prelim
The preliminary report can be found here. Quarterly growth remains unchanged with a slight upwards tilt to the annual growth rate. This continues to reinforce the sluggish economic growth seen in the region in Q3 and likely a similar story in Q4.
China: Trade war began with tariffs, it should end by the US removing them
Comments by the Chinese foreign ministry
- China, US in thorough talks on “Phase One” deal
- Level of tariff cuts should reflect significance of the first deal
I reckon you can sort of get the sense that both sides are still yet to land on some firm common ground with regards to this deal.
Markets aren’t reading much into the comments here but the remark on the degree of tariffs cancellation reflecting the importance of the “Phase One” deal reads badly in my mind.
China wants the US to commit to removing more tariffs over time and the US won’t budge on that because they risk giving up too much leverage.
Meanwhile, the US wants China to firmly detail their commitments on agricultural purchases and more structural issues but China isn’t willing to do so either.
AUD drops after China activity data misses for the month
AUd revisits its lows:
China October: Industrial Production 4.7% y/y (vs. expected 5.4%) & Retail sales 7.2% y/y (vs. 7.8% expected)
Chinese activity data for the month of October 2019
Industrial Production 4.7% y/y for a substantial miss
- expected 5.4%, prior was 5.8%
Industrial production YTD 5.6% y/y
- expected 5.6%, prior was 5.8%
Fixed Assets (excluding rural) YTD 5.2 % y/y
- expected 5.4%, prior was 5.4%
Retail Sales 7.2% y/y and also a miss
- expected 7.8%, prior was 7.8%
Retail Sales YTD 8.1% y/y
- expected 8.1%, prior was 8.2%
more to come
Private oil inventory survey shows a headline draw in US crude
A small build was the expected according to consensus of the survey.
Dow and S&P close at all time records. Nasdaq does not.
Dow leads the way. S&P marginally higher. Nasdaq marginally lower
The major US indices are ending the session mixed.
- The Dow led the way with a gain of 92.10 points or 0.33% at 27783.59
- The S&P index ended marginally higher by 2.20 points or 0.07% at 3094.04
- The NASDAQ index fell -3.989 points or -0.05% at 8482.10.
The record-o-meter is showing both the Dow and S&P closing at record high levels. The NASDAQ index – despite reaching new all time intraday highs – did not sustain the gains,and therefore did not close at a new all-time record high.