ZENITHWAVE CAPITAL 27TH OCTOBER MISSIVE
MORNING ; LEFT WING WIN BRAZIL ELECTION AND STOCK MARKETS HAS ITS BIGGEST DUMP IN 36 YEARS ! WHO SAYS NEWS NOT IMPORTANT ? THIS WEEK REALLY STARTS ON WEDNESDAY MONDAY WE SAW AI RISK APPETITE BOUNCE ,WHILE OIL REMAINS THE BIGGEST THREAT TO…
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Europe and US Previews
Tuesday sees the release of French consumer confidence, weekly ADP, US durable goods, FHFA house prices, S&P Cotality CS HPI, Conference board consumer confidence, Richmond Fed mfg index, new home sales and Dallas Fed service activity. There are no Central Bank speakers scheduled however do have supply from UK (5y Gilt), Italy (2y BTP & 6y & 9y BTPei), Germany (2y Schatz) and US (new 5y note).
Asian Overview:
A quiet session on a thin calendar, with the RBNZ, the Fed and the BoJ all to come this week. The AI trade extended its revival into Asia after Anthropic’s IPO filing, and regional equities rose, led by tech in Korea and Japan. The Kospi rose more than +4% in the Asia morning, triggering a buy side sidecar that suspended program buying for five minutes after KOSPI 200 futures held +5% higher for a minute. The momentum faded as the session went on: Nasdaq 100 and S&P 500 futures gave back initial gains to trade little changed and European shares were set for a weaker open. Tech fundraising set the tone alongside the Anthropic filing, Meta is seeking up to $95bn in equity, Broadcom arranged $63bn to finance chip purchases and SpaceX signed a roughly $40bn equipment lease. The rebound faces its test from Wednesday, when Alphabet and Microsoft report, with Amazon and Intel on Thursday; the focus is on spending plans and whether that spending is earning a return.
Focus Events, Tue 27th
EU Session:
00:01 – UK: BRC Shop Price Index;
07:45 – FRA: Consumer Confidence;
09:00 – EUR: M3;
09:00 – ECB Publishes Bank Lending Survey;
US Session:
12:00 – US: Building Permits;
12:15 – US: ADP Weekly Employment Change;
12:30 – US: Durable Goods Orders;
13:00 – US: FHFA HPI;
14:00 – US: New Homes Sales, CB Cons Conf, Richmond Fed;
20:30 – US: API Crude Oil Stock;
Bond Supply Events:
10:00 – UK: 5y Gilt £4.50BN (Equiv G 22k);
10:00 – ITA: 2y BTP, 6y BTPei, 9y BTPei total €3.50BN;
17:00 – US: New 5y Note $70.00BN (Equiv FV 741k);
- The Times: Anthropic has launched its historic stock market flotation with a pitch to investors that outlines rapid growth and eye-watering spending commitments, as well as a warning that its AI technology could pose ‘catastrophic or existential risks to humanity’ if it fell into the wrong hands.
- The Times: John Healey has warned cabinet ministers of the need for spending restraints as Whitehall departments chafe against pressure on their finances; the chancellor told colleagues to find savings in their budgets to fund Andy Burnham’s new priorities for government at a cabinet meeting last week.
- The Times: John Healey will announce plans to increase the minimum wage by nearly 4% but slow the rise for young people after warnings that they are being priced out of jobs.
- The Guardian: Shop price inflation has risen to the highest level in two and a half years, according to the British Retail Consortium, which warned that ‘the dam is starting to break’ when it comes to retailers trying to limit price rises for customers.
- Financial Times: Deloitte chief executive Richard Houston’s pay rose by almost half to £7.1m last year after the Big Four accounting firm cut its UK staff by 1,000 jobs and reduced the share of profits it hands to new partners.
- The Daily Telegraph: London flat prices have plummeted at their fastest pace in 17 years, with owners losing £50,000 on average since last summer, new figures show.
- The Daily Telegraph: Germany-based Helsing, a defence start-up backed by the founder of Spotify, is expanding into interceptors as Europe scrambles to fortify itself against Russian-style mass drone and missile attacks.
- Daily Mail: Computacenter founders have added more than £200m to their fortunes as they cash in on the artificial intelligence boom; the British computer company’s shares jumped 13% on Monday after it upgraded its annual profit forecasts for the fourth time this year.
- The Guardian: Microsoft announced that it would offer buyouts to 60,000 employees in an effort to reduce costs amid the rising use of artificial intelligence, according to reports.
- The Times: London stock market listing of TEK4, a British advanced manufacturer, has got off to a flyer, with shares on its first day of dealings up nearly 50%.
- The Times: Elon Musk said that the group of heavily indebted artificial intelligence cloud providers faced ‘guppy-level death’ as investors cooled on the AI boom.
- The Times: Revolut is to start offering personal loans in a significant acceleration of the fintech company’s ambitions to expand and win customers from traditional banks.
- The Times: FitzWalter Capital, the activist investor that made a failed takeover attempt for Auction Technology Group, has called for the removal of the FTSE 250 group’s chairman before a sales process is launched.
- The Guardian: European gas prices have jumped to levels not seen since 2022 as fears continue to grow around the continent’s supply this winter and the conflict in the Middle East.
- Financial Times: Singapore will begin storing Saudi Arabian oil in rock caverns from next year as it responds to global energy disruption from the war in the Middle East.