Morning Reads, News, Charts and more
- Apple Idea
- It's The Supply and Demand
- Unemployment Holds at 8-Year Low
- China Stocks Retreat
- Tesla’s Model 3, Hits Production This Week
- Next Big Antitrust Target
- Not Giving up Yet
- How Strong is the Labor Market?
- Goldman said to review its commodities business after worst start in a decade.
- The rally in the riskiest corporate bonds is showing signs of faltering.
- Tesla CEO Musk realizes 15-year quest with Model 3.
- How retailers can fight back against Amazon.
- Burger costs hit a three-year low ahead of Independence Day.
- Is it unethical for me not to tell my employer I've automated my job?
- The Financial Nutrition Labels
- From the Weekend
- Futures start Q3 in the green
- Musk tweets news on Model 3
- Verizon rumored to be eyeing Disney
- IEA discusses oil rebalancing
- More regulatory problems at Caterpillar?
- First crisis-era criminal charges
- Danone to sell Stonyfield to Lactalis
- Arab nations extend Qatar deadline
"Model 3 passed all regulatory requirements for production two weeks ahead of schedule. Expecting to complete SN1 [Serial Number 1] on Friday," tweeted Tesla (NASDAQ:TSLA) CEO Elon Musk. "Handover party for first 30 customer Model 3's on the 28th! Aug [production] should be 100 cars and Sept above 1500... Looks like we can reach 20,000 Model 3 cars per month in Dec." The car, which already has over 400K pre-orders, is Tesla's cheapest vehicle to date - starting at $35K. TSLA +3% premarket.
It's the latest step in China's efforts to open up and integrate into the global financial system. Overseas investors are now able to access the world's third-largest debt market through a bond-connect program between China and Hong Kong. The system, which opened today, will echo the two stock-connect programs between the former British colony and the mainland.
Japan's Tankan survey of business confidence has hit its highest level in more than three years, coming in at +17 vs. +12 in Q1. Meanwhile, the China Caixin manufacturing PMI survey showed a return to expansion in June, coming in at 50.4, marking a three-month high. Asian shares got a boost from the data, with the Nikkei, Shanghai Composite and Hang Seng closing higher.
The EU and Japan were nearing a trade deal on Saturday, but there were still gaps to overcome as two of America's biggest economic competitors look to bolster international commerce. The framework of an agreement was within reach, according to Japanese Foreign Minister Fumio Kishida, saying he was willing to go to Brussels to complete the pact before this weekend's G20 summit.
Ahead of the big meeting, German Chancellor Angela Merkel said the summit is "only going to be about [economic] growth but rather sustainable growth," adding that it's about making a "win-win" situation for everyone. "We need the climate protection agreement, open markets and improved trade agreements in which consumer protection, social and environmental standards are upheld."
Factories across the eurozone rounded off the first half of 2017 by ramping up activity as rising prices failed to put a dent in orders. IHS Markit's Manufacturing PMI rose to 57.4 in June, up from May's 57.0. The reading was the highest since April 2011 and was comfortably above the 50 level that separates growth from contraction.
Saudi Arabia and its Arab neighbors have extended the deadline for Qatar to accept their demands by 48 hours. They include shutting down Al Jazeera, curbing ties with Iran and ending Turkey's military presence on its soil. The Qatari stock index sank as much as 3.1% yesterday, bringing its losses to 11.9% since June 5, ahead of the ultimatum.
"In the second half of 2017, we will see some movement towards rebalancing in the market," IEA Deputy Executive Director Paul Simons told CNBC. "And then in early 2018... I think there is quite a bit of uncertainty out there." Oil prices are now up for an eighth day at $46.27/bbl, their longest rally in over five years, following last week's 7% gain.
The Trump administration has told India that Westinghouse Electric will emerge from bankruptcy and be sold by the year end, raising the prospect of a Washington-supported sale or bailout. India, like other nuclear nations, has been closely watching the fate of the Toshiba (OTCPK:TOSYY) subsidiary, which filed for Chapter 11 in March after an estimated $13B of cost overruns at two U.S. projects.
Toshiba is also preparing to raise money through a flotation of Landis+Gyr, one of the world's biggest makers of electric meters, as part of its scramble to avert financial collapse. The first formal steps towards a Swiss IPO is likely to be made in the next week, although Toshiba (OTCPK:TOSYY) is still weighing whether to go ahead with a listing or instead pursue a sale.
Its flotation would be the largest since Snap's (NYSE:SNA) listing earlier this year. Cloud storage company Dropbox (Private:DROPB) is considering going public, according to Reuters, which said the tech company is talking to investment banks about underwriting a potential IPO. Dropbox was valued at nearly $10B in a private fundraising round in 2014.
Everyone was saying Target needed to make a move, and on Saturday the big-box retailer finally did. Target (NYSE:TGT) finally revealed where it's been investing quietly in reinventing itself - in two key categories: Apparel and home goods. Four new, private-label brands will be launched later this fall: A New Day, Goodfellow & Co., JoyLab and Project 62.
French dairy company Danone is selling Stonyfield, one of its U.S. dairy subsidiaries, to Lactalis for $875M. The sale is part of an agreement reached with the U.S. Justice Department in connection with Danone's (OTCQX:DANOY) recent acquisition of WhiteWave (NYSE:WWAV). Closing of the sale is expected in the third quarter of 2017.
"One rumor making the rounds last week was that Verizon (NYSE:VZ) may be eyeing a Disney (NYSE:DIS) purchase. While that sounds fantastical, a well-placed banker told 'On the Money' not to count Verizon out." Verizon already snapped up assets of AOL and Yahoo to keep up with AT&T (NYSE:T), which recently purchased Time Warner (NYSE:TWX).'On the Money' is a section of the New York Post.
Federal investigators believe Caterpillar failed to submit numerous required export filings with the government in recent years, adding to the regulatory questions facing the manufacturing giant, WSJ reports. The findings are preliminary, but offer an avenue for investigators to examine whether missing export submissions were part of a possible effort by Caterpillar (NYSE:CAT) to avoid paying taxes.
Four ex-Barclays executives will appear in a London court today facing charges linked to an emergency fundraising in Qatar. "It's the first time criminal charges have been brought against a global bank and its leadership team, with regards to action taken during the financial crisis," said CNBC's Gemma Acton. Barclays (NYSE:BCS) has also reportedly chosen Dublin as its post-Brexit EU hub and plans to add over 100 jobs in the city.
The engine of a United (NYSE:UAL) passenger jet caught fire moments after the aircraft landed at Denver International Airport on Sunday, but all 63 people aboard exited the plane safely. The twin-engine Bombardier CRJ700 (OTCQX:BDRAF, OTCQX:BDRBF) made a normal landing before emergency crews quickly reacted to extinguish the fire. The cause is still under investigation.
Following a recent merger between its parent company and planemaking arm, Airbus (OTCPK:EADSY) has formally kicked off a leaner corporate structure, with Fabrice Bregier as group-wide chief operating officer and president of commercial aircraft. The move will allow Airbus to "benefit from a simpler structure that enables faster decision-making, less bureaucracy, greater collaboration and increased efficiency."
It's Iran's first major energy contract with a European oil company in more than a decade. Total (NYSE:TOT) has signed a $4.8B gas development agreement, only weeks after the U.S. senate approved new sanctions against Tehran. The field, South Pars, located under the Persian Gulf, is one of the world's largest. TOT +1.3% premarket.
The WHO has declared an end to the most recent outbreak of Ebola in the Democratic Republic of Congo, marking the latest key milestone in the fight against the deadly disease. Four people died and four survived after being infected by the virus. It was the first reported Ebola outbreak since the 2014-2016 epidemic in West Africa that killed more than 11,000. Related stocks: MRK, JNJ, GSK, HEB, BCRX, NLNK, NNVC, INO, SRPT, CMRX, PLX, NSPH, LAKE, APT, VSR, SMED, MTP, EBS, REGN, CEMI
Nevada has officially joined Colorado, Washington, Oregon and Alaska as the only states where people can buy marijuana for recreational use. Voters approved legalization in November, making Nevada's the fastest turnaround from the ballot box to retail sales in the U.S. The market is expected to outpace any other in the nation thanks to the millions of tourists who flock to Las Vegas.
In Asia, Japan +0.1%. Hong Kong +0.1%. China +0.1%. India +0.1%.
In Europe, at midday, London +0.4%. Paris +1.1%. Frankfurt +0.7%.
Futures at 6:20, Dow +0.3%. S&P +0.3%. Nasdaq +0.2%. Crude +0.1% to $46.08. Gold -0.7% to $1233.60.
Ten-year Treasury Yield +1 bps to 2.31%Today's Economic Calendar
8:30 Gallup US Consumer Spending Measure
9:45 PMI Manufacturing Index
10:00 ISM Manufacturing Index
10:00 Construction Spending