Democrats such as Elizabeth Warren had their eye on business and the working class during the first 2020 presidential primary debate in Miami.2020 Electionsread more
Chinese President Xi Jinping is expected to present U.S. President Donald Trump with the terms it expects the U.S. to meet before Beijing is willing to settle the countries'...World Economyread more
Huawei's legal chief told CNBC that the company makes "solutions for civil use."Technologyread more
The Chinese Ministry of Commerce maintained a firm stance against the U.S. during a weekly press conference on Thursday, less than two days ahead of a scheduled meeting...China Economyread more
Carl Icahn ratcheted up his fight with Occidental Petroleum over its pending purchase of rival Anadarko Petroleum by calling for a special shareholder meeting where he hopes...Energyread more
The issue over health insurance marked the first stark divide among the candidates, and sparked a heated back-and-forth between many of the candidates on stage.Politicsread more
The stock market is shrinking for several key reasons, but there's a way for investors to maneuver it, says Citi Research strategist Robert Buckland.Trading Nationread more
Four candidates mentioned China — but none of the Democratic contenders brought up trade in the debate.Politicsread more
Credit Suisse initiated coverage of Tesla Wednesday with an "underperform" rating and a price target 15% below where the stock closed.Marketsread more
Something unusual is happening in financial markets, and it could mean more gains lie ahead for stocks, if history is any indication.Marketsread more
Waymo has officially expanded its reach and is now making some of its self-driving minivans available for customers of ride-share firm Lyft.Transportationread more
Here are the biggest calls on Wall Street Wednesday:
"We are bearish on PBMs and expect 70% of prescriptions to ultimately move online. And we are initiating on CVS at Outperform with a PT of $76 (41% upside). We believe the current price doesn't reflect Aetna's solid MCO business and the LT value of a care delivery strategy at retail. We think the current valuation already reflects potential shock to PBM margins and future deterioration in the retail business... "
"We upgrade CCL shares to Buy from Neutral given: 1) accelerating net unit growth from ~2.5% over the past five years to 5% over the next three years should propel fundamentals; 2) Europe concerns appear overblown as even -3% net yields in the region would only drive a 1% difference in global net yield on our estimates, or 5% impact to EPS; and 3) CCL has set guidance well-below the 5-year average net yields providing a lower hurdle for beats and raises throughout 2019. In addition, valuation is compelling at 11.4X NTM EPS (vs. 5-year average of 16X), near trough absolute and relative levels to the S&P 500 and closest peer RCL even as management set a more conservative bar for FY19... If near-term trends are better than feared and beats ensue with ramping capacity growth, we expect an upward re-rating. Our revised 12-month price target of $65 implies 18% upside, relative to the average 9% upside for our coverage... We also update our estimates for CCL, RCL, and NCLH in this note... "
"Investor questions and conversation around Tesla have increased again following the company's recent product announcements (introduction of $35k Model 3 variant, price cuts on Model S and X products, plan to unveil the Model Y), updated guidance for 1H19 quarterly earnings expectations, and 10-K ﬁling, among other newsﬂow... In the US, we think the amount of information points to declines in demand for Tesla's higher priced vehicle variants following the start of the phase-out of the Federal Tax credit; and we believe moves by the company to continue to improve its cost structure in order to deliver lower priced vehicles and tap remaining consumer demand corroborate this... Meanwhile, International deliveries have begun and are not progressing without some delays; when combined with our expectation that Model S/Model X deliveries disappoint (we lower our 1Q19 delivery forecast), we now expect a meaningful working capital headwind in 1Q19 — and for quarter-ending cash to come closer to the $2bn mark. We maintain our Sell rating, and now expect 1Q19 deliveries/earnings to disappoint... "
Read more about this call here.
"Since October 2017, it has under performed our coverage universe by ~900 basis points... More recently, though, the shares have outperformed because of a) higher chicken prices and b) the prospect of China openings its border to US broilers... We now view the upside/downside risk as balanced... On the constructive side, industry bird weights are down, China indeed could open, and we now see upside to consensus estimates.. On the less constructive side, the US broiler industry is still planning on accelerating its capacity growth over the next couple of years, which could reverse currently positive pricing trends... All things considered, therefore, we view a Neutral rating as appropriate..."
"We downgrade CSG from OW to Neutral post strong YTD performance... We rate mgm't under CEO Tidjane Thiam highly as they have continuously grown private banking and Swiss retail businesses while over-delivering on cost targets, generating positive operating leverage, but we continue to question the ongoing underperforming IB strategy. In 2019E, IB-related businesses consume 36% of group capital and generate 22% of group PBT – IB remains a drag on valuation... We estimate Equity business is already loss making and needs to be right-sized for WM but our concern is on credit business gearing, running at peak earnings and accounting for an estimated 23% of group PBT... In our view, inventory losses is not the issue in the new de-risked IB strategy, but we see high earnings volatility/losses in a scenario of a drying-up of illiquid HY/leveraged loan revenues considering a very fixed comp base (80%E of comp) and our estimate of overall credit related revenues at c15% of group... CSG valuation is a support at 8.3x P/E, 0.7x TBV for 9.0% RoTE in 2020E, but we do not see shares outperforming L-T with cost cuts fully discounted and credit likely as good as it gets in the current cycle... "
"Following significantly better-than-expected results so far this year, we believe the sell-off in AOBC shares has been overdone especially given the opportunity for the company to manufacture growth in FY20 independent of a major rebound in demand... Investors are unlikely to get excited about the stock in the absence of such a rebound, however, while the near-term outlook, which includes the toughest comps of the Trump era and a hazardous FY20 guide, is more likely to further spook investors than to bring them on board... "