 Okay, very good morning. It is Wednesday the 27th of October. So I hope you're doing well Before I begin really exciting day for amplifiers You all know if you've been following the channel our new mission to democratize financial education for young people and today this afternoon We're going to be training 1.4,000 people in two hours this afternoon Fortunately through our society network We're going to be dealing with students from the likes of Queen Mary's in London Durham Imperial lots of others and so Even if you're not part of any of these universities You know our mission is to really bring Financial education to everyone every young person and so if you just go on to amplify me comm You can actually just jump on one of our open free public events as well that are coming up We do those on a weekly basis where you can get knees deep in a role in finance like market Making sales trading asset management and so on so I'm going to check that out and find me comm again We'd love to have you on our mission to get as many people Access to this type of training. So please do check it out otherwise quick look at the markets this morning and things are Relatively quiet. We did touch of course a record momentarily for the Dow and S&P yesterday in US indices Earnings still very much in focus. We had the likes of UPS general electric finished up around 7% 2% each respectively yesterday and for context around 81% of the S&P 500 members have reported better than expected Earnings results so far and obviously this week particularly busy one 164 spooze companies reporting And we did have a number of large mega cap tech names reporting after the close yesterday We'll have a look at those in a moment But generally looking at the overall sentiment After those highs that were seen in North American indices shortly after the open Just drifted a little bit since then and overnight in the Asia pack session But just bumping back up as European UK players come back into the market So overall pretty steady going I'd say an index futures US seen marginally higher the DAX down about 42 But finding some overnight support in the futures market at the pivot level in the FX market The Dixie's pretty much unchanged and that's reflected largely in the major pairs trading pretty flat as Two really is gold and the US 10 year oil just printing session loads I can see here as I'm just looking at my chart with down $1.83 62 Nothing particularly too meaningful from an oil perspective. We did have the API crude or infantry's last night Which we can recap but overall as you can see here largely Although a wide-scale a period of consolidation for crude oil given that big push that we've seen up over a multi-week period So I'm going to get straight into Corporate earnings from last night quite a bit of to get through So I'm going to try and keep this as brief and to the kind of need to know facts for each individual company And I've got five or six in total to go through so starting off with the mega cap tech names and Microsoft Microsoft traded up about 2% in aftermarket trades. So generally a positive response from the market They're adjusted EPS came in at 227 against 207 on the street revenues as well We're a beat 45.3 billion and this estimates were for just under 44 In particular as you can see here the software giant gets a boost from demand for a zoo and office 365 So they're intelligent cloud, which is what that division is called Which is made up of the Azure and service software that revenue rose to 17 billion That was hard and expected around 16.5 and then productivity division that mostly then entails the office software And also in addition to personal computing, which is made up of things like windows the surface tablet Xbox the gaming side of things they also those two divisions both beat expectations as well so generally some good news there and Shares already at a record rise in the 11th straight earnings beat there for Microsoft for alphabet They're actually was slightly lower aftermarket But very marginally and I definitely would stress that in context, you know Shares have been up close to 60% year to date And so the fact that they've come up a percent or so I'd say it's absolutely nothing at all really to worry about Looking at alphabet specifically in their share price. They've been the big out performer, of course Against those kind of big fire the fab five tech names Definitely well outperforming the lights of Amazon, which overall are only up marginally on the year Despite being a real pandemic standout, of course that we had in 2020 In comparison definitely these two firms alphabet and Microsoft have really outperformed the lights of Facebook, Apple on Amazon Looking at alphabet their EPS was at $27.99 $27.99 that was well and above expectations of 2350 revenues again 65 point one two billion a firm beat they had robust advertising spending, but it did have slightly disappointing Results for YouTube and cloud computing divisions, which was what will the kind of weighing factor was and why they finished down in aftermarket trade Otherwise couple of other quick ones AMD they were down marginally point seven aftermarket Their revenues were a slight beat, but they in terms of their another bullish forecast But overall not too much there that really got the market excited So again, they did beat on AMD on their EPS adjusted basis revenues and they had a pretty decent outlook But a lot of that already being factored in Twitter was another one aftermarket they were up about three and a half percent one of the standout things Here was is that social media names given the Privacy tracking changes that we've seen on the iOS on Apple. We saw that last week absolutely Decimate snap shares which fell around 25% or so concerns then about how Facebook numbers might have looked and other subsequent social media Companies which are heavily dependent on advertising. I believe Twitter Generates about 90% of its revenues from from advertising and so those tracking changes would be very detrimental as what people were fearing and in fact They're having what the company called a modest impact on sales and actually that in itself was far lesser Degree than what markets were expecting and hence the reason why their their shares were a little bit higher Daily active users in Q3 was 211 million five million more than the previous period and a 13% increase in fat from a year earlier for Twitter and obviously those DAU numbers are Particularly important for these types of stocks and their revenues were broadly in line Otherwise Robin Hood from a percentage basis actually was one of the standouts. They actually Were down about eight and a half percent eight point five percent Their EPS was much worse than expected It came in a loss of two dollars and six cents analysts were looking for a loss of just one thirty seven You can see here revenue from crypto trading plunged 78% from the preceding quarter It's a strange one Robin Hood. I think kind of had its day I'm definitely not calling them down and out yet, but they were so popular during that whole game stop kind of meme squeeze that we had but that's kind of a distant memory now and The process of obviously IPOing takes time and that as well as why we've had lots of other SPAC bills and things of late given the the time to market can be much quicker But that's the kind of double-edged sword of being related to that kind of momentum Wall Street bets type marketplace is where you know really time is of the essence and and and also the fact that There's just plenty more competition there now out for zero commission kind of trading platforms Robin Hood. So One of the figures that stood out to me was something called the ARPU, which is the average revenue per user and that decreased 36% to 65 bucks. So yeah, the Company stuck stock falling around eight and a half percent last night another big one as well Just to mention was visa. They were down about two and a half percent The EPS was a beat as was their revenues and they also boosted their quarterly dividend But not perhaps up to the the kind of more lofty heights that some analysts were anticipating And so their shares just a little bit weaker All right Jumping over to the macro side of things quick update on China generally tone overnight in Asia was just a bit on the soft side Failing to really take on the positive handover from the US where the S&P was up about two tenths the down as that generally We're pretty flat Couple things on the evergrand side Chinese authorities have told the billionaire Hugh Kar-Yan Who is the evergrand founder to use his personal wealth to alleviate the property developers deepening crisis? according to people familiar the matter on Bloomberg and Yeah, I'm not I'm not sure what What he can do his personal wealth, I think it was in 2017 around 40 50 billion It's now down to just seven billion. I say just just seven billion. I think that's you US dollar based So, I mean that's obviously a drop in the ocean of the some 300 billion or so that the company kind of requires And how deep their their debt is at this point in time But I think it's more symbolic than that that the government are very reluctant to bail out this particular company And so they're just putting some pressure. I guess from the kind of management of this situation on the lights of the founder in attempt to I guess try and Stop this type of activity Manifesting into this this situation again in the future in whatever other sector that might be For ever grand themselves the next test will be a dollar coupon payment Which comes due basically in a couple days time on the 29th That's when a 30-day grace period ends and as you'll remember they did actually pay that 85 million dollars or so Last time that kind of kicked the can down the road a little bit further. Will they do that again? Probably so I would imagine Other things that I thought were quite interesting to mention from overnight was the ongoing tensions between Biden and G They've obviously tried to reestablish some kind of line of communication But the US Federal Commission Communications Commission the FCC an independent government agency overseen by Congress yesterday Voted 4-0 to cancel permissions for to operate in the US for the unit of China Telecom and China Telecom is one of the three leading communication providers in China So the FCC citing national security concerns and government connections. So obviously this will increasingly frustrate the counterparty in China in Beijing and so Just not that surprising. I guess this is kind of just keeping the pressure on as those talks Continue between those two superpowers Then the other thing talking about the Asia-Pac region was Australia Probably would have caught some of these headlines. The Aussie really hasn't moved a great deal, but the rates market has And the rationale is that Australian three-year bond yield has climbed to its highest level since July 2019 Comes after consumer inflation picked up pace in September quarter Strengthening rate hike expectations Perhaps I can show you this the black line is the annual core inflation in Australia And as you can see here really ramped up here with a kind of surge in commodity prices that we've had the supply chain Disruptions which globally have obviously caused this very hot inflationary environment at the moment and Australia is no different So their core inflation numbers very high And then you've got the Aussie three-year bond that spread to cash rate in this orange line here As you can see so swap traders now have priced in Three hikes by the RBA by the end of 2022 to take the cash rate up to what would be 0.75% according to overnight index swap futures so if you heard tapping them my My toddler daughter knocking on the door trying to test out my focus, but um Yeah, that's then Wednesday The report we had overnight was the inflation report from Australia's annual trim mean gauge Accelerated to 2.1% in the last quarter and that's then To the RBA is two to three percent target the first time it's really got to that point in six years And hence the reason why this rates market has has moved in the fashion that it has Find it hard to see why there They've been lagging that a little bit Given the acceleration of inflation has been quite clear for some time and the movement though Really has been a global one that's been happening in the rates market over the last couple of weeks Perhaps Australia just lagging that a little bit and playing a bit of catch-up in this most recent move And then jumping elsewhere co vid And you might have seen these headlines again as well the pound not having any movement to this because it's just fitting With the trajectory generally of the cases that we've been seeing of late And it's something that we're monitoring to see whether or not essentially the government in acts Plan B and so UK reported its highly highest daily death toll 263 from coronavirus since the beginning of March Yesterday adding to fears that tighter restrictions might well be needed this winter Steadily increasing hospitalization death rates have put pressure on the government to enact plan B Which would include mandatory face coverings and a recommendation to work from home So we just continue to keep an eye on that and just generally the comms coming out of of number 10 about their decision making going far Going forward. The other thing today of course is UK budget Rishi Sunak the Chancellor will brandish new official forecasts showing that the economy generally has grown fast and expected this year And that long-term covid scarring of the economy will be less severe than feared freeing him vital fiscal room for maneuver the upgraded forecast will allow the Chancellor to Trumpet investment in priorities including the NHS local transport left behind areas and so on The one thing I would say is that whenever we have the UK budget. It's always very clearly telegraphed I if you just to jump on any of the UK national newspapers today You can see a full list and break down of all of the major Things that are going to be announced today. So as you can see here lifts in the minimum wage You've got extra six billion pounds to be given to the NHS Leveling up of transport outside London so on and so forth So hence the reason why the budget doesn't really have Intra day too much of an impact on market prices because all of this is pretty much known at this point the one thing In future as a point of note if you were trading the UK fixed income market the announcement that typically bookends the chance of speech Which begins at 12 30 so when it gets to around kind of one one o'clock 115 because the speech normally lasts for about 45 minutes or so you get an announcement from the UK Treasury debt management office Which is in charge of the issuance of fixed income supply and depending on the supply Then that can have a short-term move on the 10-year yield in the UK Society to just be aware of but from a stunning perspective Not really expecting anything dramatic today, but certainly be interested and will generate a lot of headline buzz for sure Then from Pfizer on the vaccine side just a quick update Pfizer-BioNTech shop for children as young as five has won US backing of the US FDA vaccines advisory committee So just rounding up that kind of coverage. I've been doing over the last two days Quick look at the day ahead We've already had the German Data import prices month-to-month 1.3 percent actually sites often 1.5 again Not real reaction to that as you would expect so the UK European morning is pretty quiet as I mentioned the budget from Rishi Sonak starts at 12 30 US wise You've got durable goods coming at 130 and then you've got the Bank of Canada Interest rate decision at three o'clock According to analysts at ING the Bank of Canada is set to dial back It's stimulus further by tapering weekly QE purchases from what is currently two billion Canadian dollars to one billion ING add that the BOC could adjust their language Which could conceivably see the prospect of an April rate hike being priced fully in however They suspect that this move will be likely at the December meeting when they bring QE In this latest tapering to a conclusion. So something to look out for obviously if they start talking a Little bit more aggressively About that timeline then all the more kind of CAD positives that would be the lesser clarity on that The the probably the opposite vice versa effect Okay, and then Finishing up you've got the oil infantry data coming out from the DOE this afternoon quick recap The API's last night was a build of around 2.3 million in the headline crude Expectations were for actually a slight draw down But the cushing number was the biggest draw since the beginning of the year at 3.7 34 So slightly conflicting their headlines But as I said overall crude just ticking a little low as Europe would come into the market this morning And then finally from an earnings perspective Pre-market today interesting ones include the Dow Giant Boeing you've also got the likes of Coca-Cola and McDonald's We've also got GM and Ford reporting today as well as companies like Spotify, which I know are quite popular and well followed And that is it so I'm gonna leave it there that you guys get on with the day again for any students If you're not part of a finance society if you are part of a finance society And you want us to come to your university and run one of these sessions Doesn't come with any cost anything like that We just want to see an identified talent so that we can then talk to some of the big Investment banks that we work closely with and they're interested in trying to find the next Serena Williams So check it out and find me comm feel free to get in contact with me directly at info Amplified trading comm absolutely happy to help otherwise. Have a great day. I'll see you same time tomorrow. Take care