General Trend:
- Markets more cautious as barriers to reaching a trade deal between US and China continue to mount., US treasury futures rise and regional currencies stronger as risk off sentiment rises
- Nissan appoints a new Japanese CEO overnight, Renault chairman wants to work on strengthening alliance
- Reportedly China tones down expectations ahead of 13th round of US trade talks; the Chinese delegation is already planning to cut short its stay in Washington by one night
- US imposes visa bans on Chinese persons linked to abuses against the Uighurs in Xinjiang province; MOFCOM calls this move; China Embassy calls the US visa ban a violation of basic govt norms
- Chinese companies from all industries break off relationships with the NBA or stop selling NBA tickets and merchandise after pro-Hong Kong tweet by the GM of Houston Rockets
- Brexit outlook continues to be bleak, with EU indicating its going to be an extension or no deal; PM Johnson continues to hold to his position of no extension
Headlines/Economic Data
Australia/New Zealand
- ASX 200 opened -0.2%
- CUV.AU FDA approves first treatment to increase pain-free light exposure in patients with a rare disorder [+40% in early trade]
- (AU) Australia Oct Westpac Consumer Confidence Index: 92.8 v 98.2 prior (lowest since July 2015); M/M: -5.5% v -1.7% prior
- (AU) Australia sells A$800M v A$800M indicated in 2029 bonds; avg yield 0.8759%; bid to cover 2.27x
- (NZ) New Zealand Treasury calls on RBNZ to better explain the benefits of proposed increase in bank capital will offset the economic toll of higher borrowing costs and tighter lending
Japan
- Nikkei 225 opened -1.1%
- 7201.JP Promotes Vice President Makoto Uchida to CEO, Names Ashwani Gupta COO, effective Jan 1st
- 9503.JP Chairman Makoto Yagi reportedly to resign over ¥320M in undisclosed cash and gifts received by executives over many years – Nikkei
- (JP) Ruling LDP’s and Econ Min Seko said to received ¥6.0M in donations from the president of Kansai Electric (tied up in gift scandal); Seko office denies he knew former official – Japan press
- (JP) Japan PM Abe: No plan at this time to compile extra budget to respond to economic risks (overnight)
Korea
- Kospi closed for holiday
- 005930.KR Started ordering new equipment for its factory in Xi’an, China, which is expected to be working Spring 2020; also expanding Pyeongtaek site near Seoul – Nikkei
China/Hong Kong
- Hang Seng opened -0.6%; Shanghai Composite opened -0.4%
- (CN) China’s MOFCOM calls on the US to remove Chinese companies from blacklist; Urges US to stop making ‘irresponsible remarks’ on Xinjiang issue (Uygurs) and stop interfering in China’s internal affairs; Will take any necessary measures to ‘firmly’ protect China’s own interests
- (CN) Reportedly China tones down expectations ahead of 13th round of US trade talks; the Chinese delegation is already planning to cut short its stay in Washington by one night – SCMP
- (HK) Hong Kong govt is considering further restrictions on home sales to non-residents to ease property market in the city – HK press
- (CN) China PBOC sets Yuan Reference Rate: 7.0728 v 7.0726 prior
- (CN) China PBoC Open Market Operation (OMO): Skips for the 3rd consecutive session; Net drains CNY20B v CNY250B drain prior
- (CN) US imposes visa bans on Chinese persons linked to abuses against the Uighurs in Xinjiang province – press
- (CN) China Embassy: US visa restrictions seriously violates the basic norms governing international relations, interferes in China’s internal affairs and undermines China’s interest
Other
- (TR) Syria Defense Force: We will attack Turkey forces if they enter Syria – US Press
North America
- JNJ Pennsylvania jury awards plaintiff $8B in punitive damages for failing to warn that an antipsychotic drug could cause male breast growth – US Financial Press
- (US) Weekly API Oil Inventories: Crude: +4.1M v -5.9M prior
- (US) Fed’s Kashkari (dove; non-voter): single best indicator for recessions is inverted yield curve; it inverts because investors are nervous about future growth
- AAPL China People’s Daily column accuses Apple of ‘allowing its platform to clear the way for an app that incites illegal behaviour’, pointing to HKmap.live app that uses crowdsourcing to track police activity – SCMP
- (US) Fed Chair Powell: Fed will act as appropriate to support continued growth, a strong job market, and a return to 2% inflation; will carefully monitor incoming data; Fed will soon announce steps to add reserves over time – comments at NABE conf
- PCG To proactively turn off power for safety to nearly 800K customers across Northern and Central California from Weds to Thurs
Europe
- (UK) PM Johnson facing cabinet rebellion over no-deal Brexit, ‘many’ of his parties MPs may quit in the event of a no-deal Brexit – UK Press
- (UK) European Parliament Pres Sassoli: there’s been no progress from meeting with PM Johnson, who said he will not request an extension; At this point there are two options: Brexit delay or a ‘no deal’ Brexit; We think orderly Brexit is the best outcome
- CBK.DE Said to be planning to cut “four digit” jobs in the private and business customers unit – German press
Levels as of 01:20ET
- Hang Seng -0.6%; Shanghai Composite -0.0%; Kospi closed; Nikkei225 -0.7%; ASX 200 -0.7%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.2%, Dax +0.2%; FTSE100 +0.0%
- EUR 1.0952-1.0966; JPY 106.94-107.20; AUD 0.6723-0.6744; NZD 0.6295-0.6317
- Commodity Futures: Gold +0.5% at $1,511/oz; Crude Oil -0.5% at $52.39/brl; Copper +0.3% at $2.57/lb
