“The intelligent investor is a realist who sells to optimists and buys from pessimists.” – Benjamin Graham

1. Trump Administration is Weighing to Drop Existing Tariffs with China — the Trump administration is weighing whether to drop existing tariffs on $112B of Chinese imports (which were introduced at a 15% rate on Sept. 1). “Phase One” of the pact would include Chinese purchases of American farm goods, rules to deter currency manipulation and some provisions to protect intellectual property and open up Chinese industries to U.S. firms.
2. European Union Aviation Safety Agency Stated Boeing’s MAX Likely to Return to European Service in Q1 2020 –Boeing’s (BA +1.7%) 737 MAX airliner likely will return to service in Europe in Q1 2020, says the head of the European Union Aviation Safety Agency. While the EASE expects to give its approval in January, preparations by national authorities and airlines may delay the resumption of commercial flights by as much as another two months, executive director Patrick Ky says.
3. Walgreens (WBA) Might Goes Private — reports suggested the U.S. drug store chain is exploring private equity interest. If a deal was struck, it would likely be one of the largest leveraged buyouts in history based off Walgreens’ $50B+ market cap. Several private equity firms would likely be involved, though many have long lost their appetite for teaming together on so-called club deals since the financial crisis.
4. U.S. Says Phase-One China Deal Would Include Tariff Rollback — China’s Ministry of Commerce said the world’s two largest economies had agreed to remove duties on each other’s goods in phases. “If China, U.S. reach a phase-one deal, both sides should roll back existing additional tariffs in the same proportion,” declared spokesman Gao Feng. That would potentially provide a road map to end the bruising trade war after reports yesterday suggested a meeting between President Trump and Xi Jinping could be postponed until December.
5. Facebook’s WhatsApp Eplores E-commerce via Catalog Feature — after buying the app for $19B in 2014, Facebook (NASDAQ:FB) is finally building out the service’s e-commerce tools by launching a catalog feature where businesses can display a “mobile storefront” showcasing their wares with images and prices. Facebook similarly added a shopping feature to Instagram in March that lets users click a “checkout” option on items tagged for sale (though transactions there happen directly within the app).

The week ahead — Economic data from Econoday.com: