Goldman Sachs on US stimulus talks – a deal doesn’t seem particularly close

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

 

there is

 

  • no indication that differences have narrowed since last week

 

and

 

  • 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?

Huawei and other Chinese firms said to be seeking curbs on Nvidia deal to buy ARM

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.

New York Times report on Trump holding an account at a Chinese bank

The NYT have popped up an article with further on Trump’s tax filings:

  • China is one of only three foreign nations – the others are Britain and Ireland – where Mr. Trump maintains a bank account
  • The foreign accounts do not show up on Mr. Trump’s public financial disclosures, where he must list personal assets, because they are held under corporate names. The identities of the financial institutions are not clear.
It goes on:
  • In response to questions from The Times, Alan Garten, a lawyer for the Trump Organization, said the company had “opened an account with a Chinese bank having offices in the United States in order to pay the local taxes” associated with efforts to do business there. He said the company had opened the account after establishing an office in China “to explore the potential for hotel deals in Asia.”
Seems reasonable.
The NYT have popped up an article with further on Trump's tax filings:

FT report that UK PM Johnson’s 3-year spending master plan to be ditched

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.

US major indices break losing streaks but close well off the highs

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%

European shares end the session with mixed results

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%