Market Update
Tsys lower, yields 0.5-2bps higher, 10Y 2.20% (+2bps), with European equities flat, S&P futures -1.5, crude unch after rallying above $50 yest . Tsys lower overnite with no reaction to latest N. Korea missile launch and terrorist bombing in London. UK yields taking another sharp leg higher , 10Y gilt 6bps higher @ 1.29% & the GBP at the highs since Brexit after BOE member Vlieghe, a noted dove, backed calls for a rate hike in the near future. GOCs lower, underperforming tsys by 1-2bps, 10Y 2.09% (+3bps), provis unch with BC/Ont longs rumoured, as well as HQs.
News headlines
North Korea launches missile over Japan (CNN) The missile, which flew for nearly 2,300 miles, was fired less than two weeks after North Korea conducted a suspected hydrogen bomb test.
Terrorists attack London (BBC) A device exploded on a London Underground train at the Parsons Green tube station, injuring several people.
BoC eager to be more transparent but won’t signal every rate move: Wilkins (GlobeandMail) The Bank of Canada is eager to be more transparent, but it isn’t ready to explicitly foreshadow every interest-rate move it makes just to appease financial markets, deputy governor Carolyn Wilkins says. “Only moving when everybody knows that is what you’re going to do, I don’t think it leads to good policy outcomes or good inflation targeting, and that’s what we’re accountable for,” Ms. Wilkins said Thursday.
Google Considers Lyft Investment of About $1 Billion (Bloomberg) Alphabet Inc. has held conversations with Lyft Inc. about a potential investment in recent weeks, signalling strong support for Uber Technologies Inc.’s main U.S. competitor, according to people familiar with the matter. An investment of about $1 billion in Lyft may come from Google or CapitalG, Alphabet’s private-equity arm, said some of the people, who asked not to be identified because the discussions are private. A deal may not come together.
Japan’s SoftBank Wants Big Chunk of Uber, But at Steep Discount (WSJ) SoftBank Group Corp. 9984 0.46% is nearing an ambitious deal to take a substantial stake in Uber Technologies Inc.—but only if the Japanese technology investor can persuade shareholders to sell enough stock at a steep discount. After weeks of deliberation, Uber’s board in recent days has been hashing out its response to a potential investment led by SoftBank that could total as much as $10 billion, according to people familiar with the matter. If successful, that would be among the largest-ever single investments in a private venture-backed startup.
Oracle’s profit, cloud growth forecasts drag down shares (Reuters) Oracle Corp forecast current-quarter adjusted profit largely below Wall Street’s estimates and indicated to slowing growth in its soaring cloud business, sending the company’s shares down as much as 5 percent in aftermarket trading. Shares of the business software maker, which reported market-beating revenue and profit for the first quarter on Thursday, initially rose but reversed course after the forecast. They had gained about 37 percent this year.
Forget $3,000, Bulls May Retreat If Bitcoin Breaks $2,877 (Bloomberg) Bitcoin’s more-than 20 percent slump this week on China’s reported plans to shut down cryptocurrency exchange trading has investors speculating when it will drop below the key psychological level of $3,000. But the level to watch may be just beyond that threshold: $2,877.
Overnight markets
Overview: US 10yr note futures are down -0.037% at 126-12, S&P 500 futures are down -0.08% at 2492.25, Crude oil futures are up 0.4% at $50.09, Gold futures are down -0.11% at $1327.9, DXY is down -0.36% at 91.791, CAD/USD is down -0.23% at 0.824.
| Cda Benchmarks | Yield | Tsy Benchmarks | Yield |
| 2 Year | 1.603% | 2 Year | 1.376% |
| 5 Year | 1.812% | 5 Year | 1.794% |
| 10 Year | 2.09% | 10 Year | 2.195% |
| 30 Year | 2.437% | 30 Year | 2.765% |
US Economic Data
| 8:30 AM | Empire Manufacturing, Sep,24.4 , est. 18.0 (prior 25.2) |
| Retail Sales Advance, m/m, Aug, -0.2%, est. 0.1% (prior 0.6%, revised 0.3%) | |
| Retail Sales Ex Auto, m/m, Aug, 0.2%, est. 0.5 % (prior 0.5%, revised 0.4%) | |
| Retail Sales Ex Auto and Gas, Aug, -0.1%, est. 0.3% (prior 0.5% | |
| 9:15 AM | Industrial Production, m/m, Aug, est. 0.1% (prior 0.2%) |
| Capacity Utilization, Aug, est. 76.7% (prior 76.7%) | |
| Manufacturing Production, Aug, est. 0.3% (prior -0.1%) | |
| 10:00 AM | University of Michigan Sentiment, Sep P, , est. 95.0 (prior 96.8) |
Canadian Economic Data
| 9:00 AM | Existing Home Sales. m/m, Aug, (prior -2.1%) |
Disclosure and Disclaimer
The following sources of information have been, or may have been, used partially or in their entirety to compile the herein provided CTI Capital Securities Inc. (“CTI Capital”) ‘Morning Comments.’ CTI Capital believes these sources to be generally reliable, however, as said sources are varied and from third parties, CTI Capital cannot guarantee the accuracy or completeness of said information: Canadian Press (CP); Bloomberg News (BN); Wall Street Journal (WSJ); Stone & McCarthy Research Associates (SMRA); New York Times (NYT); Financial Times (FT); Market News International (MNI); Globe and Mail; Associated Press (AP); CNW Group (CNW); Reuters; Business News Network (BNN); Market Watch; and others.
Ivan Greenstein, Stephan Buu
Institutional Bond and Equity Desk
CTI Capital Valeurs Mobilières Inc.
Tel : (514)-861-0240
Fax: (514)-861-3230