Week of Mar 1 2019 Weekly Recap & The Week Ahead
βHe who knows when he can fight and when he cannot will be victorious.β β Sun Tzu
1. California Crackdown On Single-Use Plastics — California lawmakers have introduced legislation to phase out single-use non-recyclable plastic food containers and other packaging by 2030. If the legislation becomes law, some experts believe it could lead to other states taking similar steps. Last year, California became the first in the nation to restrict the use of plastic straws in restaurants, and the Golden State banned the use of single-use plastic bags at grocery stores in 2014.
2. Iranian Stocks Plunge on Foreign Minister Resignation — Iran’s stock market dropped around 2,000 points overnight following the surprise resignation of Foreign Minister Javad Zarif. President Hassan Rouhani hasn’t yet accepted Zarif’s resignation, but indications suggest he was undermined in his role. Zarif was the architect of the 2015 nuclear deal, which the U.S. pulled out of in May last year, leaving the pact on shaky ground.
3. China/US Trade Talks Shaky — statements from U.S. Trade Representative Robert Lighthizer are weighing on Chinese investor sentiment, with the Shanghai Composite falling 0.4% during the session. He said it was too early to predict an outcome in trade talks and the U.S. will need to maintain the threat of tariffs on Chinese goods for years, even if Washington and Beijing strike a deal. China’s manufacturing PMI for February also fell to 49.2, highlighting another contraction and deepening cracks in the country’s economy.
4. Vietnamese Carriers Sign Deals for 110 Boeing Jets — during President Trump’s visit to Hanoi, Vietnam’s Bamboo Airways and VietJet Aviation signed deals to buy 110 aircraft from Boeing (NYSE:BA) worth more than $15B as the fast-growing companies look to expand their operations. Earlier this month, the FAA said Vietnam complied with international aviation standards, allowing Vietnamese carriers to fly to the United States for the first time and codeshare with U.S. airlines.
5. Gap Spinning Off Old Navy — Gap (NYSE:GPS) announced restructuring plans which will include the spin-off of Old Navy. The company also plans the closing of about 230 Gap speciality stores over the next two years. The shutterings should hit annual sales by about $625M and result in pretax costs of $250M-$300M. Annualized pretax savings are seen at roughly $90M.
The week ahead — Economic data from Econoday.com: