HomeContributorsFundamental AnalysisTrump Interview And Mnuchin/Pelosi Talks Are Expected On Thursday

Trump Interview And Mnuchin/Pelosi Talks Are Expected On Thursday

General Trend

  • Aussie equities have continued to rise after the Tuesday budget announcement; ASX Resources, Financial and Consumer Discretionary indices rise over 1%
  • Topix Marine/Transportation, Iron/Steel and Securities indices are among the gainers; Airlines lag amid gov’t support speculation
  • Aeon (Japanese retailer) declines by over 3% following H1 results
  • Japanese companies expected to report earnings after the market close include Lawson, Ryohin Keikaku and Seven & I.
  • HK markets decline ahead of Shanghai’s return; Property, Gaming and Tech firms are among the decliners
  • Samsung Electronics pares gain despite better than expected Q3 guidance, LG Electronics expected to issue prelim Q3 results later today
  • Taiwan Semi is expected to issue Sept sales later today
  • NZD declined amid RBNZ comments, later pared losses

Headlines/Economic Data

Australia/New Zealand

  • ASX 200 opened +0.2%
  • (AU) Australia PM Morrison: Announces Simon Birmingham to become Finance Minister, To replace Cormann
  • (NZ) Reserve Bank of New Zealand (RBNZ) Chief Economist Ha: Does not have a fixed number for a lower OCR bound; Looking at tiering regime for Negative OCR plan
  • (NZ) Reserve Bank of New Zealand (RBNZ) Assistant Gov Hawkesby: RBNZ is ‘actively’ working on Negative interest rates and funding for lending program; Additional information on Funding for Lending Program to be available at Nov policy meeting (Nov 11th); Inflation to be lower than 1-3% target for next 2-3 years
  • (NZ) New Zealand Oct Prelim ANZ Business Confidence: -14.5 v -29.8 prior; Activity Outlook: +3.6 v -6.8 prior

China/Hong Kong

  • Hang Seng opened +0.1%, Shanghai Composite closed
  • Alibaba [9988.HK]: Reportedly the US exploring blocking Ant Financial and Tencent payment systems [no specific measures were seen in the article], cites national security concerns; Trump administration officials are said to have held talks about whether to place restrictions on the Chinese payment systems, no final decision is expected in the near-term – press
  • (CN) China Finance Ministry (MOF) said to plan to sell $6.0B in US dollar denominated bonds, the multi-tranche bond sale is expected to occur next week – US financial press
  • (CN) CHINA SEPT FOREIGN RESERVES: $3.143T V $3.1657TE (first decline in 6 months) [from Oct 7th]

Japan

  • Nikkei225 opened +0.4%
  • (JP) Japan MoF sells ¥2.5T v ¥2.5T indicated in 0.10% 5-year JGBs; avg yield -0.0910% v -0.0910% prior, bid to cover 4.9x v 3.56x prior (highest BTC since May 2019)
  • (JP) Japan Chief Govt Spokesman: Still in talks with airlines on stimulus [was asked whether Japan’s gov’t is considering support for airlines]
  • (JP) Bank of Japan (BOJ) Gov Kuroda: Reiterates Domestic economy remains severe but has begun to pick up; Reiterates won’t hesitate to add easing if needed
  • (JP) Bank of Japan (BOJ) quarterly Regional Economic Report (Sakura): Raises assessment in 8 of 9 regions
  • (JP) Japan Aug Current Account (BoP basis): ¥2.10T v ¥2.03Te; Adj Current Account: ¥1.65T v ¥1.54T prior; Trade Balance (BoP): ¥413.2B v ¥137.3B prior
  • (JP) Japan Sept Tokyo Avg Office Vacancies: 3.4% v 3.1% prior
  • (JP) Japan Sept Eco Watchers Current Survey: 49.3 v 44.9e; Outlook Survey: 48.3 v 44.0e
  • (JP) Japan said to lower travel advisory for certain countries starting Nov 1st, the 12 countries include China – Press

Korea

  • Kospi opened +0.9%
  • Samsung Electronics [005930.KR]: Reports Q3 prelim (KRW) Op 12.3T v 10.5Te, Rev 66.0T v 64.1Te (62.0T y/y)
  • (KR) South Korea Aug Current Account: $6.6B v $7.5B prior; Balance of Goods (BOP): $7.0B v $7.0B prior
  • (KR) South Korea and China agree to extend currency swap agreement (as expected)
  • (KR) South Korea confirms 69 additional coronavirus cases v 114 prior; 2 additional deaths

North America

  • (US) White House Chief of Staff Meadows: Senate Majority Leader McConnell (R) willing to look at separate airline bill, there is wide support on certain parts of stimulus; Trump would be willing to look at counter proposal if Speaker Pelosi comes back with something closer to proposal by Trump Admin
  • (US) Speaker Pelosi and Treasury Sec Mnuchin spoke on Airline bailout bill at 18:00EST, will speak again tomorrow (Thursday, Oct 8th)
  • (US) President Trump to give an interview on Fox Business News on Thurs morning (Oct 8th)
  • (US) FOMC SEPT MINUTES: ECONOMIC ACTIVITY AND EMPLOYMENT HAD PICKED UP IN RECENT MONTHS BUT REMAINED WELL BELOW THEIR LEVELS AT THE BEGINNING OF THE YEAR
  • (US) Fed’s Evans (dove, non-voter): Comfortable with current bond buying plan; Fed will get to a point where it will need to give more explicit guidance on pace and type of asset purchases; Fed has capacity to do more asset purchases, but does not see need for it now; Too early to judge response amid lack of fiscal aid; Will have clearer view of economic outlook in the Spring [2021]
  • Regeneron [REGN]: Said to submit application to FDA for emergency use authorization (EUA) for Antibody treatment – Press
  • (US) BSEE: 49% of natural gas production cut due to closures in Gulf of Mexico due to Hurricane Delta

Europe

  • (UK) SEPT RICS HOUSE PRICE BALANCE: 61% V 40%E\

Levels as of 1:20 ET

  • Nikkei 225, +1%, ASX 200 +1.1% , Hang Seng -0.8%; Shanghai Composite closed ; Kospi +0.4%
  • Equity S&P500 Futures: +0.4%; Nasdaq100 +0.4%, Dax +0.3%; FTSE100 +0.1%
  • EUR 1.1771-1.1759 ; JPY 106.10-105.93 ; AUD 0.7149-0.7122 ;NZD 0.6584-0.6546
  • Gold -0.1% at $1,888/oz; Crude Oil flat at $39.94/brl; Copper -0.3% at $3.0208/lb
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