News / Analysis
Finance Update – Amazon Beats Alibaba 2:0May 13, 2020
Asian equities were mixed this morning, the Shanghai Composite up 0.04% and the DJ Shanghai down 0.05% as markets fret over the threat of a 2nd Corona wave.
Despite the ongoing kerfuffle with China, Australia’s consumer confidence measure for May is out of negative territory, posting a healthy 16.4% improvement with the wage price index steady at 0.5% QoQ.
New Zealand overnight maintained its interest rate at a quarter percent.
European indices were generally in the green at yesterday’s close, bar France’s CAC40 (-0.4%), Australia’s ATX (-1.15%) and Portugal’s PSI20 (-1.37%) .
Ahead of Friday’s GDP from Germany, Refinitiv data expects Germany to post its worst GDP contraction since the 2008 financial crisis – motivation perhaps to battle the EU’s bond-buying programme.
In Britain, this morning, industrial and manufacturing production came in much better than expected, Q1 GDP contracting by 1.6%, on expectations of 2.1%, and a trade surplus expanding beyond hopes. Same-store retail sales added 5.7% in April (YoY), after a 3.5% decline the month before.
Reuters reports that the BRC claims a 19% drop in retail sales, the worst in 1995. The report also says that payment card sales lost 36% YoY, based on Barclays’ data.
The Daily Telegraph reports that the kingdom’s borrowing bill could reach a record-breaking £337 bn this year.
Meanwhile, as EU-UK talks lumber on, Japan is next on Britain’s wish list – FTA talks scheduled to begin shortly.
The threat of COVID 2.0 was stronger in US stock markets, which fell yesterday led by the Russel 200’s 2.72% drop, followed by the NASDAQ.
Shares on both sides of the Pacific look on with apprehension after US senators yesterday introduced a bill to sanction China if it hinders efforts to examine the early stages of the Corona crisis.
The US’ April budget deficit only fell to $738 bn from $119bn the month before as CPIs disappointed across the board.
Despite yesterday’s 7.7mB addition to oil inventories (API), oil added a dollar 50 throughout yesterday’s session and is meeting resistance at $26, while Gold is consolidating towards the 1710 resistance level in a rising pendant.
Bitcoin is rising gradually after Monday’s halving and is preparing to attack the 9k level.
Seeking Alpha this morning reports that Amazon has been outperforming Alibaba, 154% to 71%, respectively YoY. Since the start of the Corona crisis – Alibaba shares have lost about 30% from their January high while Amazon has gained about $400 during the same period.
Facebook has announced it will pay damages to the tune of $52mn to content moderators experiencing PTSD.
Uber is reportedly in talks to purchase online groceries supplier Grubhub, injecting some energy into its ailing Uber Eats delivery service. Uber shares were up 2.4% on the news.
Vodafone yesterday reported a 3% increase in revenues, while Commerzbank this morning reported a €295 mn loss this past quarter after a €122 mn profit for the same quarter last year.
|09:00 AM GMT||EU||Industrial Production|
|11:00 AM GMT||US||Mortgage Applications. PPIs at 12:30.|
|ND||UK||GDP Estimate. House price balance at 11 PM|
|02:30 PM GMT||OIL||EIA Crude stocks change|
|01:00 AM GMT (+1)||Australia||Consumer inflation. Unemployment, participation rate at 1:30.|
|0:002 AM GMT (+1)||NZ||Budget release & ANZ Inflation gauge.|