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Trump Invites May
Donald Trump has invited Theresa May to visit him immediately after his inauguration.
Editor’s Remarks: Donald Trump was a keen supporter of the Brexit campaign, and he is apparently determined to ensure strong relations remain between the US and the UK. Despite giving disparaging remarks of Trump earlier this year, it seems relations have turned sweeter after the election. Trump has undoubtedly eased concerns of many Brits and worried Remain voters by displaying such an eagerness to work with the British government. Canada on the other hand, is not quite getting the same treatment.
What to watch: Theresa May, Supreme Court Ruling, Donald Trump, GBP/USD
ConocoPhillips To Sell
US oil firm ConocoPhillips declared it would sell between $5bn-$8bn in assets and buy back $3bn in shares.
Editor’s Remarks: The length of the oil glut and the low oil price has caused many firms to shore up their finances and streamline their operations. ConocoPhillips is no exception as it chose to cut natural gas and focus on petroleum. The move looks like the right one for ConocoPhillips but finding buyers at the right price might prove to be harder than it believes. ConocoPhillips has already dropped from operating in 28 locations to 14. It seems that natural gas production will become an increasingly dense market.
What to watch: ConocoPhillips, Chesapeake, Gazprom, Exxon Mobil, CNPC
Dow Rises, Tech Falls
The Dow Jones Industrial Average continued its rally, reaching a record high while tech firms fell dramatically with the Nasdaq down almost 2%.
Editor’s Remarks: As Trump met Obama for the first time since the election and discussed transition, markets began making further assumptions on how the new president’s policies will lean. Banks and healthcare firms surged under the assumption Trump will be less heavy on regulation. However, the biggest winners appear to be heavy industries as metals, mining and construction assumed Trump would at least try to fulfil his promise of boosting infrastructure. This trend will likely continue as markets take bets early.
What to watch: DJIA, Nasdaq 100, Donald Trump, S&P 500, S&P 500 Information Technology
Department Store Market Boost
Department stores, from Macy’s to Nordstrom, saw great numbers in this week’s earnings reports that beat analyst expectations despite many closing stores across the globe.
Editor’s Remarks: Investors are responding well to the cost cutting by large department stores. Many, including Macy’s and Kohl’s, reported net sales falling by over 2%. Investors appear simply happy that they seem to have stemmed the bleeding better than expected. Macy’s has gone a step further by partnering with Brookfield Asset Management, whom will advise the company in handling their real estate assets. Department stores are getting lean and should see more partnerships with popular companies like Michael Kors as well as more stores closing.
What to watch: Macy’s, Kohl’s, Nordstrom, J.C. Penney
Emerging Markets Down Hard
Across the BRICS, South East Asia and South America, currencies fell with Mexico and South Africa leading the charge at over 3.5%
Editor’s Remarks: Analysts across the board are currently taking bets on how protectionist Trump’s policies will be. Regardless, emerging markets should expect to feel the bite of Trump’s election for some time. Mexico will lead the pack, but China should expect to be the other major target. Alibaba is the first Chinese firm to threaten Trump that alienating China will severely damage the US and global economy. Eastern Europe is still not clear on how much NATO will change and has therefore not seen similar pains in its bond markets. However, the foreign exchange market should still expect to see tremendous movement but not in a great direction for the world’s emerging economies.
What to watch: USD/ZAR, USD/MXN, USD/PHP, USD/BRL, EUR/USD