Stocks along with oil and other commodities are weaker this morning after President Donald Trump poured a little molasses on the trade talk progress. It appears he believes that China wants a deal much more than he does. His comments about not agreeing on rolling back tariffs, despite trade talk progress has sent some mixed messages. He’s set to give a speech on Tuesday which should give more clues as to what exactly he means. For now, stocks are being sold off some. With markets at all-time highs and valuations a little stretched it’s not surprising to see some profit taking.
We’re not seeing a dramatic risk-off type posturing. The bond market is flat this morning and typical safe-have currencies such as the USD and Yen are actually lower. In fact, the best performing currency this morning is the British Pound as they head into the first full week of official election campaign mode.
The epicenter of the market weakness is Hong Kong, with the Hang Seng lower by -2.62%. A protestor was shot by police this morning during the morning commute. The unrest does not seem to be settling down at all and according to Hong Kong’s Lam: violence will not make the government yield to pressure
has become a day of dichotomy. While we’re solemnly remembering those that fought bravely for our freedoms, China is busy with Singles Day, a 24 hour shopping event
. Alibaba netted $1 billion in the first 68 seconds and $23 billion worth of sales in just the first nine hours. China is the worlds’ largest ecommerce country, and today is the day to top them all.The big news over the weekend concerns Saudi Aramco’s IPO, which is already starting to raise red flags
. A 600-page prospectus was released on Saturday which stated that the state-run giant would sell up to 0.5% of its shares; the deal is expected to value Aramco around $1.5-trillion. The report did not, however, include any third-party valuation on its reserves and failed to detail how much of the company would be floated in total, future commitments from cornerstone investors, or even how the government intends to use the proceeds from the sale. The company can also change its dividend policy without prior notice to its minority shareholders. As for the country’s commitments, the kingdom will be subject to a statutory lockup period for disposing of any shares after the listing for 6 months, and a contractual lockup period for 12 months. Furthermore, Aramco cannot list more shares for the first 6 months after trading initiates and will also be restricted from issuing additional shares for 12 months.
Meanwhile, in Canada, the Conservative government in Alberta announced on Friday that new conventional oil wells could be drilled without consideration to government production limits
. The broader production cuts remain in place (for wells that aren’t new), but the goal was to incentivize oil companies to bring new jobs to Alberta. Canada is expecting a 10% drop in wells drilled in 2020, though this may help that number to a some extent. As one analyst put it “It’s definitely going to results in more wells and more jobs… but this is not the start of a boom.”
Jim Rogers, the investing guru who earned a 4,200% return with George Soros, told us everyone should read these 3 books that made a 'huge impression' on his career
Interesting use of big techs well known company logo’s to shed insight into their companies diversity
, or lack thereof.Diversion
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