Morning 7-14

 Earnings Results (from Bloomberg)

 JPM (stock +1.5%)

  • trading revenue Surged 79%=Good for wall street
  • Money set aside for Loan Losses expected $9.15B actual $10.47B=bad for Main Street

Wells Fargo (stock -5%)

  • First quarterly loss since 2008
  • Cut Dividend to 10 cents from 51 cents expected 20 cents
  • Loan loss provision $9.5B expected $4.86B
  • “our view of the length and severity of economic downturn has deteriorated considerably from assumption last quarter

Citi: Earnings look okay

  • Fixed Income trading a beat $5.60 B vs $4.59B
  • Loan Loss provisions $7.9 vs expected $7.66
  • “Combined with cost cuts, it helped the
    bank salvage a $1.3 billion profit — albeit one that was 73%
    lower than a year earlier — as the lender braced for a wave of
    potential defaults amid lockdowns on commerce”

Delta: we will just leave to one line

Delta posts second-quarter net loss of $5.7 billion, biggest in more than a decade, driven by coronavirus – CNBC

US covid deaths:

California Closing Indoor dining and bars and shifted Schools to Online learning for Fall as reopening attempt falters

  • Bloomberg headline Virus officially slowing US recovery based on High frequency data points
  • Face covering compulsory in all shops in England starting 7-24
  • Japan saying a new state of Emergency is Possible if infections increase further

News: (itc markets and Mizuho)

  • The U.K. is poised to ban Huawei Technologies Co. from its next generation mobile networks under a two-step plan to protect critical systems from security threats, a person familiar with the matter said – Bloomberg
  • Foreign investors dumped a net 17.4 billion yuan of China stocks Tuesday, the most ever. The previous record was 14.7 billion yuan set on March 13…. Shanghai Stocks -.8%, CSi 300 -.95%
  • GER Jul ZEW Expectations: 59.3 vs 60.0 cons; Current Situation -80.9 -63.0 cons
  • -German ZEW: After poor Q2 expect a gradual increase in GDP for H2 and early 2021
  • Solid demand at BTP auctions overnight
  • China trade data better than expected on both imports and exports
  • China Foreign MIn: Will apply sanctions on Lockheed Martin
  • Chinese companies purchased 4.03 million tons of #soybeans from the #US in June, according to the American Soybean Association. The purchases show efforts on #China’s part to implement the phase one #TradeDeal: expert
  • U.S. said Chinas Claims to South China sea are unlawful
  • Small business optimism index beat


 Outside of U.S. Stocks lower Stoxx -1.2%<dax -1.1% Mib -.8% Sectors travel and leisure -2.85% tech -2.7% Spoos higher by slimmest of margins. Dollar blah Watching euro for a break of 1.114 Gold lower, Copper and silver as well but just a bit Bunds higher along with treasuries One of these days Spoos will move lower with all the bad news.

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