Daily Briefing – Monday, November 13, 2017
A day after RICS announced that London house prices were taking a battering, UK data on Friday came in better than expected, with industrial production up to 2.5% (YoY, and manufacturing doubling to 0.7% MoM. The nation’s trade deficit dropped dramatically from -£4.190B to -£2.980B in September, and NIESR’s GDP estimate for the 3rd quarter was upgraded a notch to 0.5%. Still, the pound had a turbulent opening this morning after reports of growing pressure upon PM May to resign, and the FTSE closed down on retailers and energy stocks. . Elsewhere in the region, indexes had their worst weekly drop in 3 months on weak earnings and a strengthening Euro.
Hours after the departure of President Trump from the land, Beijing announced it will allow foreign firms to obtain a majority ownership of Chinese financial firms. However, the ECB last night released a report indicating that Chinese debt has reached 250% of the nation’s total GDP – a sizeable risk to the European economy. Stocks throughout the region opened quietly last night, closing in the Green in China and losing 1.32% in Japan, despite a weak yen. Hong Kong published its GDP growth figure, 3.6% – 2/3 of that on growing private consumption.
The Michigan consumer sentiment index last week plunged from just over 100 in October to 97.8 – primarily on employment concerns. Manhattan rent is down for the first time in 20 months, according to Bloomberg.
Oil continues to trend downward after Friday’s Baker Hughes count revealed the largest rig increase in 5 months – up 9 to 738 active wells.
Vodafone reports earnings tomorrow morning as the London Stock Exchange sounds its opening bell. Most analysts still post buy signals to this UK communications giant. Tomorrow morning, expect $0.56-65 per share (up from 0 last year) on revenues of $52.48 Billion and $58.74 Billion.
|7 PM GMT||US: Monthly Budget Statement|
|0:30 AM GMT (+1)||Australia: NAB Business Conditions & Confidence|
|2 AM GMT||China: Retail Sales, Industrial Production & Urban Investment|