HOUSING CHARTS
Via The Daily Shot:
- Lower mortgage rates normally spur buying:
Source: BCA Research
- But the new tax law may change this dynamic having eliminated the tax advantage of entry-level homeownership vs. rent (due to a much higher standard deduction).
Source: John Burns Real Estate Consulting
U.S.-China Trade Talks to Resume in Final Push for Deal Negotiators for the U.S. and China have scheduled a new round of high-level trade talks in Beijing and Washington, aiming to close a deal by late April.
U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin plan to fly to Beijing next week to meet with Chinese Vice Premier Liu He, Trump administration officials said. The following week, a Chinese delegation led by Mr. Liu is expected to continue talks in Washington, the officials said. (…)
Japan Downgrades Its View of the Economy for First Time Since 2016
The Cabinet Office cited recent weakness in exports and industrial production in its monthly report released Wednesday, although it said the economy continued to recover at a moderate pace. (…)
The Cabinet Office downgraded its assessment of factory production for a second straight month, saying it has become “almost flat.” Exports are “in a weak tone,” it said, after data Monday showed that shipments fell for a third straight month in February.
Bloomberg Economics’ Yuki Masujima expects gross domestic product to take a hit in the first quarter, with the GDP tracker pointing to a 2.5 percent annualized contraction from the previous quarter.
Half of Canadians say they’re struggling to make ends meet: OECD
EARNINGS WATCH
We now have 496 reports in. The beat rate is stable at 69% but the growth rate edged up to +16.7%. Q1’19 estimates stable at –1.6% (-0.8% ex-Energy).
Trailing EPS now $162.88.
FedEx Lowers Outlook as Express Unit Struggles FedEx cut its outlook for the second consecutive quarter after it reported a decline in revenue in its express unit and lower profit in its ground business from the higher cost of operating six days a week.
The global delivery giant said softening macroeconomic conditions and weaker global trade trends continue to harm its international shipping business. Shippers also are sending lighter packages using slower, cheaper options in the express business, where the average price charged per package fell 2%. (…)
he Memphis, Tenn.-based company is trying to absorb the slowdown by reducing international capacity, limiting hiring and cutting back on discretionary spending. It recently enacted an voluntary buyout program for employees to save up to $275 million a year. Chief Financial Officer Alan Graf on Tuesday said FedEx is looking at additional actions in light of weaker-than-expected revenue. (…)
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Investors Have a FedEx Problem Weak results from the shipping giant bode poorly for the global economy, and investors don’t seem ready for a slowdown
- Dis you miss Monday’s post: DANGER ZONE?
BMW warns on 2019 profits after ‘challenging’ year Shares drop 5% after automaker says higher costs and trade conflicts are clouding outlook
UBS Says First Quarter Was ‘One of the Worst’ in Recent History CEO Sergio Ermotti gave a gloomy outlook to investors, saying conditions are among the toughest in years and investment banking revenues are down.
Swizerland’s largest bank adds to the evidence that conditions haven’t improved from the fourth quarter when French lender Societe Generale SAissued a profit warning for its markets business. Executives at both Citigroup Inc. and JPMorgan in recent weeks have warned of weaker trading revenues compared with a year ago. January was a terrible month for the trading business at Deutsche Bank, people familiar with the matter have said. (…)
Volatility and volumes are weak compared with the euphoric start to last year, and investors have not yet regained confidence. Ermotti said there has been very little merger or initial public offering business outside of the U.S., with investment banking revenues down about one third compared with a year ago. (…)
Have EM earnings revisions bottomed?
Source: Credit Suisse (via The Daily Shot)
