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Indices: Market Today. Market (52 weeks). Portfolio (52 weeks).
FX: USD Today. USD Year. AUD Today. AUD Year.
In Portfolioticker today
- Today at the stock market
- The portfolio today
- Energy: Oil and Gas Futures
- UK: Brexit Secretary David Davis Quits
- UK: Foreign Secretary Boris Johnson Quits
- AU: Risks Increase for Highly Leveraged Home Buyers
- Japan Update
- China Update
Today at the stock market
“U.S. stocks rose on Monday, giving the Dow and S&P 500 their biggest gains in more than a month, as bank shares jumped ahead of earnings reports later this week.
A Bank of America Merrill Lynch research report showed earnings per share for S&P 500 companies for 2018 was revised higher amid better-than-expected first-quarter results, higher oil prices and stronger-than-expected U.S. economic growth.
U.S. analysts’ estimates for S&P 500 second-quarter profit growth have risen slightly since Apr 2018, putting the latest forecast at around 21%, according to Thomson Reuters data.
Twitter Inc sank after the Washington Post reported the social media company suspended more than 70 million fake accounts in May and Jun 2018, which analysts said could be negative for user growth, but it pared losses after its CFO tweeted that most accounts Twitter removes are not included in reported metrics. The stock ended down 5.4%.” Reuters
^ S&P500 Index today (mouseover for 12 month view) [Chart: Google Finance]
|Index||Ticker||Today||Change||31 Dec 17||YTD|
|S&P 500||SPX (INX)||2,784.17||+0.88%||2,673.61||+4.13%|
^ USD and AUD denominated indices over the past 52 weeks Chart: Bunting
|Index||Currency||Today||Change||31 Dec 17||YTD|
Portfolio stock prices
Facebook closed on a record high of $204.74, up 0.74% on Friday’s record $203.23.
PayPal closed on a record high of $86.23, beating its 21 Jun 2018 record of $85.97.
|Stock||Ticker||Today||Change||31 Dec 17||YTD|
Selected Tech News Headlines
- US Supreme Court puts Amazon, Google in tax sights around the world: “The Supreme Court’s 5-4 decision in South Dakota vs Wayfair Inc handed down on 21 Jun 2018 overturned two previous judgements to find that online sellers had a physical presence in US states – and thus were liable to pay state sales taxes – even if it was only through cookies left on customers’ hard drives or apps downloaded to customers’ phones. While the decision relates only to US states, it comes as moves by the OECD, the European Commission and individual countries including Australia to establish taxing rights over digital transactions come to a head, using similar arguments about permanent establishment.” AFR SCOTUS Ruling Wikipedia
- Amazon is charging more for sellers to promote big discounts on Prime Day: “Amazon has turned Prime Day into one of the biggest online shopping holidays. But for many sellers, it’s becoming more expensive to participate. For the second year in a row, Amazon has increased the registration fee to run Prime Day Lightning Deals, which are limited-time promotions exclusively offered to Prime members. It now costs third-party merchants $750 to run each Lightning Deal, up from $500 last year, according to an invitation that was sent to sellers and viewed by CNBC. Amazon first introduced the fee for Prime Day last year, after not charging anything in 2015 and 2016. The fee hikes for Prime Day, which will be held on July 16 and 17, are another example of how Amazon is squeezing more money out of the sellers who wish to take part in the company’s annual shopping extravaganza, now in its fourth year. By charging more in fees, Amazon not only makes additional cash but also filters out sellers who aren’t confident that their products will be popular enough to justify the costs. Amazon now has over 100 million Prime members worldwide, and Prime Day continues to break sales records every year — making Lightning Deals a valuable asset.” CNBC
- PayPal is planning a $3 billion deal spree: “PayPal is on the lookout for further acquisitions following its recent takeover of iZettle, the Swedish fintech startup, for $2.2 billion, in the US payments company’s biggest ever deal. “We have a healthy balance sheet and we are ready to put it to work to buy more companies,” president and CEO Dan Schulman told Germany’s Handelsblatt business daily in an interview. PayPal is ready to invest up to $3 billion a year on acquisitions that enable it to acquire specific capabilities, Schulman added. “I wouldn’t rule out that we take on a bigger deal if there’s a good fit for us,” the German-language newspaper quoted Schulman as saying in extracts from an interview released from its Monday edition. Since separating from online marketplace eBay in 2015, PayPal has shifted from mostly processing online transactions for its parent company to offering a suite of digital payment services.” Business Insider
- Twitter shares fall after report says account suspensions to cause user decline: “Shares of Twitter Inc fell 9% on Monday after a report said the social media company had suspended more than 70 million fake accounts in May and June, which could lead to a decline of monthly active users in Q2/2018.” Reuters
- Lawmakers Press Alphabet and Apple on Smartphone Users’ Privacy: “House lawmakers sent letters Monday to the chief executives of Alphabet Inc. and Apple Inc. seeking answers about how they handle users’ personal information, including spoken words, email content and location data.” WSJ
- Automakers and tech firms scramble for the once little-known element cobalt, essential for iPhones, laptops and electric cars: “Demand for batteries in everything from smartphones to electric cars has driven up the price of the once obscure element cobalt, fueling fears of a shortage. Prices for the metal, which is essential in making lithium-ion batteries, more than doubled in 2017 over the previous year, according to the United States Geological Survey. Researchers haven’t yet found a good substitute or way to build batteries without the mineral. Apple, which needs the metal for its iPhones, iPads, laptops and other gadgets, is looking to buy cobalt directly from miners. It’s also needed to make electric car batteries, sending automakers on the hunt for the raw material. German automaker BMW, which has been a relatively early entrant into the electric car business, is looking to sign five- to 10-year supply contracts. Demand for cobalt in vehicle battery materials is expected to grow over 40 percent in 2018, according to U.K.-based cobalt trading firm Darton Commodities. Electric and hybrid vehicle adoption in China and Europe are expected to be significant contributors, and the production ramp of the Tesla Model 3 is projected to be the major driver of EV adoption in the U.S., Darton said in its annual Cobalt Market Review report published in February.” CNBC
^ AUD vs Bloomberg Dollar Spot Index (DXY) movements today Chart: Bloomberg
^ Bloomberg Dollar Spot Index (DXY) movements today (mouseover for 12 month view) Chart: Bloomberg
“The Bloomberg Dollar Spot Index (DXY) rose 0.1%.
The EUR was little changed at USD 1.1749.
Britain’s GBP held at USD 1.3251.
Japan’s JPY closed at 110.83 per USD.
The yield on 10-year Treasuries gained four basis points to 2.86%, the highest in a week.” Bloomberg
^ AUD movements against the USD today (mouseover for 12 month view) Chart: xe.com
Oil and Gas Futures
Prices are as at 15:47 EDT
- NYMEX West Texas Intermediate (WTI): $74.06/barrel +0.35% Chart
- ICE (London) Brent North Sea Crude: $78.24/barrel +1.47% Chart
- NYMEX Natural gas futures: $2.83/MMBTU -1.12% Chart
UK: Brexit Secretary David Davis Quits
Note: Brexit is scheduled to be implemented 29 Mar 2019 at 23:00 GMT BBC
“David Davis has resigned as Brexit secretary, shattering the hard-won consensus around Theresa May’s Chequers deal and plunging her government into crisis. His resignation was swiftly followed by that of fellow Department for Exiting the EU ministers Steve Baker and Suella Braverman. It forces May to reshuffle her government, at the same time as trying to convince backbenchers to support her plan.
Davis has told friends he cannot live with the soft Brexit stance agreed between ministers on Friday, which proposes a “UK-EU free trade area”, governed by a “common rule book”. He is also said to have been “livid” about hostile briefing from senior figures in Downing Street about how Brexiters would be treated at Chequers – including suggestions they would be given the number of a local taxi firm if they chose to resign.
Theresa May will now have to confront furious pro-Brexit MPs in parliament on Monday, knowing she has lost the backing of one of the leavers’ champions in government.” Guardian (UK)
“David Davis’s resignation was swiftly followed by his No 2 at the Department for Exiting the EU, Steve Baker.” Guardian (UK)
“Pro-Brexit former housing minister promoted after David Davis’s resignation.” Guardian (UK)
UK: Foreign Secretary Boris Johnson Quits
“Boris Johnson has resigned as foreign secretary, becoming the third minister in 24 hours to walk out of the government rather than back Theresa May’s plans for a soft Brexit.” Guardian (UK) Resignation Letter
“European Council President Donald Tusk raised the idea that Brexit might be called off in a tweet on Monday after Boris Johnson, a campaigner for Britain to leave the EU, resigned as foreign secretary.” Reuters
^ JPY movements against the USD over the past month (mouseover for inverse) Chart: xe.com
Stockmarket: Nikkei 225
^ Nikkei 225 movements over the past week [Chart: Google Finance]
^ CNY movements against the USD over the past month (mouseover for inverse) Chart: xe.com
^ CSI 300 movements over the past week [Chart: Google Finance]