Analysts say the partial U.S.-China trade deal doesn't touch on thorny issues plaguing both sides, and warn talks could break down again.World Economyread more
"The Champagne should probably be kept on ice, at least until the two presidents put pen to paper," said state-owned media China Daily.Traderead more
Economists polled by Reuters had expected Chinese exports denominated in the U.S. dollar to fall by 3% and imports to decline by 5.2% in September, compared to a year ago.China Economyread more
The U.K. and EU are gearing up for what could be the busiest week in British politics since June 2016.Europe Politicsread more
"It seems like what the two leaders have done is try to set some of the thorny political issues to the side," said Dhruva Jaishankar, director of the U.S. Initiative at the...Asia Politicsread more
The U.S. had plans to hike duties on at least $250 billion in Chinese goods to 30% from 25% on Tuesday. Despite the partial trade deal, some banks on Sunday wrote that tariff...Marketsread more
The industry has pulled in $322 billion over the past six months, the fastest pace since the second half of 2008.Marketsread more
The United States has cleared the final procedural hurdle in order to impose tariffs on billions of dollars of European products later this month.World Economyread more
A technical recession occurs when there are two consecutive quarters of economic contraction.Asia Economyread more
"Deepfakes" are being used to depict people in fake videos they did not actually appear in, and can potentially affect elections, diplomacy and how markets move, experts say.Technologyread more
Chinese President Xi Jinping warned on Sunday that any attempt to divide China will be crushed.China Politicsread more
Here are the biggest calls on Wall Street on Friday:
D.A. Davidson said its view does not reflect a negative view of the company or its ability to execute, but rather the size of the total addressable market and the number of frequent purchasers.
"We think Beyond Meat has achieved a significant breakthrough which legitimizes a nascent segment (plant based meat) within a $1.4T category; our thesis does not reflect a negative view of the company, the quality of its portfolio, or its ability to execute. Rather, our cautious approach to the total addressable market—specifically, fewer likely frequent purchasers of plant based meat as compared to milk given roughly half the number of non meat eaters versus lactose intolerant—informs long term forecasts we believe are lower than the consensus view."
Read more about this here.
KBW downgraded the stock on the escalation of the trade war impacting economic growth, as well as prospects for further Fed rate cuts.
"We recently upgraded shares of Bank of America as we had expected economic conditions to improve. However, post the Fed's rate cut we got an escalation of the trade war which is now expected to lower economic growth and we now forecast further rate cuts from here which will pressure BAC earnings. Our updated estimates based on KBW's Economic Baseline are below consensus and in a falling rate environment where the yield curve remains inverted, we believe that creates an environment where it will be difficult for shares to outperform and a Market Perform is appropriate."
Read more about this call here.
"We initiate amid market worries over both capacity growth and demand weakness. In this environment of fear, our work suggests that US airlines can generate free cash flow in a range of scenarios, particularly for our Buy-rated stocks. We think there is selective opportunity in the sector on our outlook for pre-tax 2020 margin expansion amid pricing concerns from above-trend capacity growth."
Goldman predicted Kellogg would see accelerating organic sales and improved profit margins in its upgrade of the stock.
"We also raise our target price to $72 (from $58), which implies 14% upside to shares from current levels. A number of changes have occurred at the company in recent years that we believe will sustain a faster growth trend at K than the company has been able to historically achieve; primarily a strategic pivot to snacks (vs. its legacy cereal-first approach) and completed M&A (albeit at lofty valuations) which has bolstered its EM exposure."
Goldman said that consensus estimates for earnings and sales are "too high" in the near term.
"We downgrade CAG to Neutral from Buy as we lower our estimates and price target on fresh analysis of its portfolio. While we continue to see a path to outsized synergy and deleverage-fueled EPS growth for the company over the next three years, we believe both management and FactSet consensus estimates for sales and earnings may be too high in the near term. This near-term risk balances our longer-term optimism and causes us to step to the sidelines for now."