Scott Barlow
A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the Web
Gizmodo is a wildly popular technology site that has just published a very harsh post on Blackberry Inc.
Gizmodo publishes a lot – more than any topic-specific website I know – and it's possible that everything they distribute, including "Blackberry Gives Up", is not fair and objective. There are analysts with a much more optimistic outlook – Cormark Securities analyst Richard Tse, for instance, has a speculative buy rating on Blackberry and an $11 target price. Nonetheless, the piece does provide insight into what at least some of the technology community thinks about the company,
"No matter how you slice it, Blackberry is desperate for a win. The company still makes about 40 percent of its revenue from its flailing handset division, according to Bloomberg. [CEO John] Chen hopes that some of that useless software will unlock Blackberry's next big source of revenue … one has to wonder: does BlackBerry even care any more? Does the release of a mediocre phone made by a foreign company just confirm the idea that the company has dug its own grave and feels fine flopping into it, like a failed character in a Martin Scorsese film? We'll see. Maybe the DTEK50 will be a hit. Probably not, though."
"Blackberry Gives Up" – Gizmodo
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A Bloomberg report on global integrated oil companies has significant and negative implications for Canada's Suncor Energy Inc. In 2015, larger oil companies like Suncor and Exxon Mobil Corp. benefited from high profit margins on refinery operations which compensated for lower oil prices. Refinery margins are now falling quickly,
"'The crash in oil prices in late 2014 brought refineries worldwide a pleasant surprise: booming margins,' said Amrita Sen, chief oil analyst at consulting firm Energy Aspects Ltd. in London. 'But now, the market is changing.' BP, the first major to report second-quarter results, showed the impact on Tuesday. The British company said its downstream earnings fell to $1.51 billion from $1.81 billion in the first quarter and $1.87 billion a year ago. Refining margins were the weakest for the April-to-June period in six years, BP said. "
"Oil Majors Lost One Engine; Now the Second One Is Sputtering" – Bloomberg
See also: "Oil falls close to three-month low as oversupply weighs" – Reuters
"Why haven't oil prices fallen further as hedge funds boost short positions?" – Reuters
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The gold price is falling ahead of the Federal Reserve announcement on interest rate policy. Chairwoman Janet Yellen will not be speaking to the press today, which usually indicates nothing change in benchmark rates. The Fed statement is expected to show less concern about the U.S. economy, potentially paving the way for a hike in the next few months.
"Gold Market Holds Breath as Traders Await Rate Clues From Fed" – Bloomberg
"@dbcurren BMO on #Fed statement today: pic.twitter.com/0BUaKfxqtt " – (includes research excerpt) Twitter
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Tweet of the day: "@C_Barraud #China's debt problem may be worse than expected, Moody's warns - CNBC - cnb.cx/2aavq67 " – Twitter
Diversion: "24 libraries of the world so magnificent they'll take your breath away" – Bright Side
Scott Barlow