The trade war between the United States and China has lasted for more than one year — and a resolution is nowhere in sight.World Economyread more
The Fed is expected to cut rates Wednesday, but it is unlikely to tell markets what they want to hear on future rate cuts.Market Insiderread more
Pelosi said Trump should not have tried to address China's trade practices in a way that opened Americans up to financial pain.Politicsread more
Investors await the Fed's latest decision on monetary policy, set to be released on Wednesday stateside. The U.S. central bank is widely expected to cut rates by 25 basis...Asia Marketsread more
TransferWise posted an annual net profit of £10.3 million on revenues of £179 million.Technologyread more
Live the high life with a night's stay at Highclere Castle, the iconic stately home made famous by Downton Abbey.Spendread more
Large banking institutions face the risk of failure if interest rates in Europe continue to stay negative, warns the global chief economist of the Economist Intelligence Unit.Banksread more
The fallout from two fatal crashes of Boeing 737 Max planes has ensnared the manufacturer's most-loyal customer: Southwest Airlines. The carrier has canceled thousands of...Airlinesread more
Brent crude oil jumped the most in history in the previous session after attacks on Saudi's oil industry disrupted the kingdom's production.Marketsread more
In the survey, conducted after the third in the Democratic Party's series of debate, the former vice president draws 31% compared to 25% for the Massachusetts senator. At 14%,...2020 Electionsread more
Stocks rose slightly on Tuesday, but gains were capped as the Federal Reserve kicked off a two-day monetary policy meeting.US Marketsread more
Here are the biggest calls on Wall Street on Tuesday:
Citi is bullish on the stock and notes the company may be in early testing with McDonald's and Starbucks.
"1) Despite competition, GRUB's ability to continue to grow GFS in the 20% range of late should result in the driver (delivery network) efficiencies needed to hit mgmt's 4Q19 EBITDA/order guidance (i.e., we now believe consensus forecast are less at risk) and, as a result, we are raising our forecasts; 2) We recently came across data suggesting that GrubHub may be in early tests with MCD, SBUX and other large chains, which could drive investor interest and potentially new diner and GFS growth over time..."
Credit Suisse said that "digital and delivery" will be keys for the restaurant industry going forward.
"Value creation in the sector is driven by three factors, (1) ability to leverage the box and increase in-store sales; (2) opportunity to expand global footprints; and (3) prospect for margin improvement...SBUX is one of the highest quality growth companies in restaurants, with ~8% rev growth, modest margin expansion and repurchases supporting our ~14.5% EPS growth 4-yr CAGR...SHAK's 2019 restaurant margin guidance implies 130-230bps of contraction, following 350bps of decline since 2015...Recent asset and technology investments support a more modernized MCD, and we believe the company is effectively expanding its competitive moat relative to peers..CMG has returned to a narrative of growth rather than recovery, with on-trend initiatives that well position the company to appeal to its target base and outperform peers."
Jefferies said Microsoft is unlikely to ever see margins like Amazon Web Services.
"Microsoft is one of the greatest software success stories in the short history of the sector, but we believe that MSFT, the stock, is materially overvalued. Azure will probably never see the margin broadly expected due to cultural and technical factors, and a recent unprecedented boost to cash flow from Windows may not persist. Azure will likely never see margins similar to AWS at scale, and the long-term margin of even AWS may be lower than most expect."
Loop downgraded Tiffany and pointed to slowing tourist traffic and difficulty in achieving comparable sales targets.
"We believe weak tourist traffic continues to impact global demand levels, and we are concerned that SSS growth may prove more difficult to achieve as the company laps its paper flowers launch. We think macroeconomic uncertainties have built since our last positive deep dive in mid-April."
Consumer Edge said that Kellogg is taking positive steps for the future but there are still too many "poor trends" and is lowering hope for a second half turnaround.
"Overall, while we think the company is taking the right steps for the long-term, they are coming at a higher than expected cost & risk. In our view, recently increased spot grain prices (+~20%) foretell an H2 cost headwind to offset recent energy & freight tailwinds. "