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A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

Citi’s survey of U.S. portfolio managers from 70 different institutions uncovered that portfolio managers are expecting a huge change in market leadership,

“Fund managers perceive a year-end 2019 target of 2,963 and 2020 of 3,023, consistent with their expected 2% EPS growth outlook for the coming year… In light of weaker dollar assumptions, no recession and higher Treasury yields, it is quite reasonable that 50% envision value outperforming growth in 2020 versus only 20% this year. Energy is the most liked space next year followed by Materials and Industrials and, most surprisingly, IT slides into disfavor alongside Utilities and REITs.”

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“@SBarlow_ROB C: U.S. PMs looking to buy commodity stocks, sell REITs and utilities” – (research excerpt) Twitter

“@SBarlow_ROB C: "Third Quarter profit Results: Same Old Thing, But With a Twist "” – (research excerpt) Twitter

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I don’t envy oil traders. Crude prices are lower Monday morning despite Saudi warnings of a giant potential commodity price spike,

“Saudi Arabia’s Crown Prince Mohammed bin Salman has warned of astronomical oil prices in the event that tensions escalate in the Persian Gulf, two weeks after his country was hit by a drone and cruise missile attack that Riyadh and Washington have blamed on Iran. “If the world does not take a strong and firm action to deter Iran, we will see further escalations that will threaten world interests,” the crown prince said … “Oil supplies will be disrupted and oil prices will jump to unimaginably high numbers that we haven’t seen in our lifetimes””

“Oil will hit levels ‘we haven’t see in our lifetimes’ if Iran isn’t stopped, Saudi crown prince says” – CNBC

“ Oil falls as China's economic outlook remains weak” – Reuters

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“ IEA may cut its oil demand growth estimates if global economy weakens” – Reuters

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Equity markets dropped sharply last week on reports the White House was considering curbs on U.S.-listed Chinese stocks. There is now some backtracking going on in Washington D.C.,

“In a statement emailed to Bloomberg over the weekend, a spokeswoman for U.S. Treasury Secretary Steven Mnuchin said there were no current plans to stop Chinese companies from listing on U.S. exchanges. “The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time,” Treasury spokeswoman Monica Crowley said. Crowley did not address any of the other options reported and declined to offer any further details of the discussions”

“Trump officials play down reports of China investment limits” – BNN Bloomberg

“ Beijing warns delisting Chinese companies from U.S. exchanges would harm both sides” – Report on Business

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Canadian economist Mike Moffatt is entirely unconvinced of Green Party plans to tax robots in the domestic manufacturing sector, and his comments were strident on social media Monday morning

“This is a horrid idea. Reasons: 1. Most automation doesn’t involve “robots”. 2. The automation that does involve robots is largely in manufacturing. This automation has been exceptionally slow post-recession. 3. Canada’s problem is low, not high, productivity growth. … 4. Automation saved the manufacturing industry from 2003-09, when the dollar rose. Without automation, we’d have lost far more jobs as Canadian manufacturing would have been far less competitive. The robot tax is wholly inappropriate in an open economy with lagging productivity.”

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Tweet of the Day:

Diversion: “Top 9 Movies of the 1990s” – (video) Cinefix

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