Week of Jan 15 2016 Weekly Recap & The Week Ahead
“In bear markets, stocks usually open strong and close weak. In bull markets, they tend to open weak and close strong.” – William J. O’Neill
1. China Auto Sales Slowest Pace Since 2012 — auto sales in China rose 4.7% to 24.6M units last year to mark the slowest pace of sales growth since 2012, according to data from the China Association of Automobile Manufacturers. A sizable tax cut from Beijing during the last quarter wasn’t enough to help lift sales past the growth rate seen in the bustling U.S. auto market. General Motors (NYSE:GM) and Ford (NYSE:F) outpaced major domestic automakers in China through their local joint ventures.
2. Amazon’s Chinese Unit Gets License to Provide Ocean Freight Services — Amazon supplies its own trucks, drones and maybe some planes, but ships are now seen as the next horizon. The company’s China subsidiary has received a license in the U.S. to operate as an ocean freight forwarder – an entity that organizes the shipment of goods from a supplier or factory in one region to a company or customer somewhere else. UPS might be hurt by Amazon new strategy of providing its own transportation services.
3. Berkshire Hathaway (BRK.A, BRK.B) Bought an Additional 5.1M shares of Phillips 66 (NYSE:PSX) — according to regulatory filings, Berkshire Hathaway (BRK.A, BRK.B) bought an additional 5.1M shares of Phillips 66 (NYSE:PSX) between Jan. 4 to Jan. 11. The purchases boost Berkshire’s Phillips 66 investment to 65.68M shares, or about 12.3% of those outstanding. Buffett fans, and perhaps some crude oil watchers, likely are wondering if he is calling a bottom in the oil price rout.
4. Brent Briefly Slips Below $30 — brent oil prices briefly dipped below $30/bbl, hitting a new 12-year low and putting the benchmark at a discount to U.S. crude. Prices have already tanked 20% this year and analysts vary greatly over the level and when the commodity will hit a bottom.
The week ahead — Economic data from Econoday.com:
