14 November 2017

Castle PS Market Update 14 November 2017

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14 November 2017

Top News

Chinese industrial output misses expectations. Industrial output grew 6.2%in October from a year earlier, the National Bureau of Statistics said on Tues-day, just under analysts' estimates for a rise of 6.3% after increasing 6.6% in September. Property and construction activity, two of the economy's main growth drivers, are starting to slow due to higher borrowing costs and gov-ernment measures to cool a heated housing market and curb industrial pollu-tion.

Former UN secretary general says Trump has shown some flexibility on North Korea. "While we appreciate this maximum pressure and engagement policy, this time he has been showing some sense of flexibility in addressing this issue. He has shown some possibility of addressing this issue through diplomatic means," the former United Nations Secretary-General Ban Ki-moon told CNBC on Monday. "There is no military solution," he said. "Military means sometimes may be effective for a time being but it's not sus-tainable.”

US Chief House Tax Writer says GOP has the votes to pass tax reform bill. House Ways and Means Chairman Kevin Brady says he’s confident that the chamber has enough Republican votes to pass its tax legislation this week. “We don’t anticipate major changes. A lot of the work’s been done,” Brady told reporters on Monday. Brady added that he’s told Senate lawmakers that preserving the deductions for property taxes up to $10,000 is a top priority for the House. The Senate tax proposal calls for fully repealing state and local tax deductions, which includes property taxes.

Global Market Commentary

Tyson Foods beats Wall Street expectations as low-cost animal feed provides boost. The number 1 US meat processor re-ported fourth quarter net revenues of $10.15 billion, rising 10.8% YoY, and beating out estimates of $9.89 billion. Earnings per share came in at $1.43 per share, also topping estimates of $1.38. Profits at meat processors and producers such as Tyson have been bolstered by declining costs for feed and as consumers buy more beef and chicken. Shares of Tyson rose 1.96% on Monday, recording a +22.55% return since the start of the year.

China’s JD.com shares jump after an unexpected profit in the third quarter. JD posted net earnings of 1 billion yuan ($151 million), its highest ever quarterly profit, in the three months to Sept. 30, far above an analyst consensus forecast of a 213 million yuan loss. JD has accused its main competitor, Alibaba, of engaging in "coercive" tactics, saying its rival obliged mer-chants to choose between online platforms. Competition between JD and Alibaba has become increasingly heated as the companies invest heavily in overlapping e-commerce markets. Shares of JD jumped 3.5% on Monday, to end at $41.34.

Source: Bloomberg, 14th November 2017