World Themes This Week 🌍 Boeing Braces For Turbulence ✈

Table of Contents

 

1. World Themes This week

After a bumpy week, markets are set to return to more volatility as Brexit, the US budget and potential US-EU tariffs come into focus. Buckle up for another big week!

With the Brexit deadline ever closer, Theresa May now has only 24 hours to fight for more concessions from the EU to save her Brexit deal, but with the talks still in deadlock, its not looking good for the UK Prime Minister. The Pound felt the majority of the impact, dropping lower at the start of trading, but growing speculation about a Brexit delay could cause a strong Pound resurgence in the coming weeks.

Investors will focus closely on President Trump’s budget speech today as the US deficit remains on course to reach levels last seen during World War II. Without any signs of slowing up, rising debt levels will become more and more concerning for markets. Can anything stop the runaway debt train?

On the European front, investors are still waiting to see whether President Trump will take advice from a research report arguing the need for tariffs on Europe’s struggling auto market. Tariffs would undoubtedly dent both European and global growth which is already in an extremely fragile state. Europe has already warned of retaliatory measures should the US enforce tariffs….Oh no, here we go again!

Another big week coming in hot!

 

2. Boeing Braces For Turbulence

Boeing is in for a tough time this week as news of the tragic Ethiopian Airlines 737 Max crash filters its way into the markets. The flight heading to Niarobi plummeted to the ground shortly after take-off, killing all 157 passengers on board. Our condolences to the families of those involved.

To make matters worse for Boeing, this is the second 737 Max to crash in just five months. This has sparked safety concerns among many airlines and caused both Ethiopia and China to ground all 737 Max aircraft pending further inspection.

The crash is likely to also have devastating effects on the company’s share price, which fell almost 7% in response to the first Lion Air crash in Indonesia. A second incident is likely to have far worse ramifications if the entire global production run of 737 Max’s are recalled.

Analysts are estimating that the fallout could shave more than 100 points off the Dow Jones index and bring a large portion of the market down in its wake. The accident will only add to pressures on major global indexes which lost a great deal of momentum as the 2019 rally starts to show signs of fatigue.

Boeing’s share price has already dipped considerably in pre-market trading, but will experience the full brunt of the fallout when markets open today. This could get ugly!

 

2. Company Results Coming Up This Week

Monday – Polymetal International, Coupa Software, Banco de Chile

Tuesday – Volkswagen, Cairn Energy, Amadeus Fire, Ping An Insurance, Close Brothers, Computacenter, Sonae Sierra

Wednesday – Adidas, Standard Life Aberdeen, Intidex, MorphoSys, E.On, PZU Group, Raiffeisen Bank, Rheinmetall, Hikma Pharmaceuticals, Provident Financial, Verbund

Thursday – Autogrill, Enel Russia, Swatch, Cineworld, DFS Furniture, Marshalls, OneSavings Bank, Savills, Dollar General, Docusign, Jabil Inc

Friday – UBS, Restaurant Group

Today we are watching…

1.  Brent Crude Oil (#brent)

Salesforce looks set for a solid earnings announcement and growth trajectory for the rest of 2019. The company’s broad cloud-based infrastructure and maintenance solutions offering has made its product essential to companies and is growing in popularity against rivals Google, Adobe and Microsoft. The consensus EPS estimate is $0.56 (a whopping +60%) on revenue of $3.56bn (+25%). Don’t miss out!

2. Nvidia (#nvidia)

Beaten down chip-maker, Nvidia, has thrown its hat into the ring to bid for Israeli tech giant, Mellanox. The company develops networking technology and data storage systems, and was already drawing the attentions of Intel before Nvidia made its way into proceedings. Nvidia has shown its intentions to beat Intel’s $6bn offer made in January at a 35% premium. This investors concerned that Nvidia may be overpaying. We’ll have to see how the drama unfolds!

 

 

 

 

 

 

 

Share:
More Posts
The Crude Oil Bust 🛢

Surging global crude oil prices, driven by factors like OPEC+ production cuts have pushed U.S. West Texas Intermediate futures to over $95 per barrel.

Metaverse Returns 🤖

Meta, led by CEO Mark Zuckerberg, is intensifying its commitment to innovation in the Metaverse through the introduction of the Quest 3 VR headset.

Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.