Analysts at the investment banks are not bullish on a resolution soon, saying:
- Some of the biggest issues remain unresolved
- the thorniest issues – fiscal aid to states and liability protections – are still outstanding
- no indication that differences have narrowed since last week
- a deal doesn’t seem particularly close
If you look across various ‘risk’ assets during the Asian session here you’d have to say they disagree with GS?
Back in mid-September the news broker that SoftbNk was selling its UK chip designer Arm Holdings to Nvidia Corp
Bloomberg have the headline that Chinese firms are seeking a curb on the sale.
There are no further details provided.
Financial Times say that UK Chancellor Sunak has told the PM that current plans should not go ahead due to the chaos of Covid-19.
A decision to scrap the three-year review in favour of a stopgap single-year settlement would be a setback for Mr Johnson, who saw the event as a chance to map out his priorities for a post-Covid world.
Johnson and Sunak have been discussing whether anything can be salvaged from binned plan.
Brexit trade talks appear to be floundering. Coronavirus outbreak infections surging. Lockdown accelerating, and resisted. Not a lot of good UK news about at present.
NASDAQ snaps 5 day losing streak. Dow and S&P break 4-day decline
The US major indices snapped their losing streaks but also close well off there intraday highs. The NASDAQ index had had a 5 day losing streak while the Dow and S&P declined for 4 straight days.
- S&P index closed up 16.23 points or 0.47% 3443.15. The high price reached 3476.93. The low extended to 3435.65.
- NASDAQ index closed up 37.613 points or 0.33% at 11516.49. The high price reached 11632.89. The low extended to 11471.23.
- Dow industrial average closed up 113.27 points or 0.4% at 28308.69. The high price reached 28575.03. The low extended to 28243.04
Netflix earnings released after the close and numbers were disappointing:
- The consensus EPS Estimate of 2.14 (up +45.6% Y/Y) . The actual earnings per share came in at $1.74
- Consensus Revenue Estimate is $6.38B (up +21.5% Y/Y). Revenues came in at $6.44 billion
- Analysts expect operating income of $1.29B
- Streaming paid net adds are expected to rise by 3.3M for the quarter. They came in much lower at 2.2MThe company guided to 2.5M.
- Netflix sees fourth-quarter streaming paid net change of 6 million vs estimates of 6.54 million
- See Q4 revenue of 6.57 billion vs. estimate 6.59 billion
- See 4Q EPS of $1.35 vs. $0.97 estimate
The price after the close is down close to 6%
Provisional closes for the major European indices
The European major indices are ending the session with mixed results. The German DAX fell -0.9%. The Spain’s Ibex increased by 1.0%. The provisional closes are showing:
- German DAX -0.9%
- France’s CAC, -0.1%
- UK FTSE 100, +0.15%
- Spain’s Ibex, +1.0%
- Italy’s FTSE MIB, +0.6%