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

Bank of Nova Scotia released its quarterly profit results early Tuesday, missing expectations. The Report on Business’ James Bradshaw has the details,

“Scotiabank quarterly profit rises slightly, falls short of expectations” – Bradshaw, Report on Business

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“Scotia Q2 profit misses estimates as loan loss provisions rise” – BNN Bloomberg

“Markets playing wait-and-see on the Canadian banks: Money manager” – (video) BNN Bloomberg

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Citi technology analyst Jim Suva has slashed his iPhone sales estimates in expectation that Chinese consumers will shun the U.S.-designed device amid trade tensions,

“We are materially lowering our sales and EPS estimates below consensus as China represents 18% of Apple sales which we believe could be cut in half. .. We remain optimistic on Apple services with Apple Arcade to launch in 2H 2019… Based on our updated below consensus we find the shares attractive and maintain our Buy rating but lower our target price to $205 from $220 and believe in the months ahead consensus will likely recalibrate lower.”

“@SBarlow_ROB C slashes iPhone sales forecast” – (research excerpt) Twitter

“Monday’s analyst upgrades and downgrades” - Leeder, Globe Investor

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Merrill Lynch frames the U.S. trade battle with China as a technological arms race,

“In our view, the struggle between the US and China will continue to play into two mega-themes extensively covered by Global Research: the decline of globalization and the technological arms race between the United States and China. With these themes comes a world less dependent on global trade where China poses a greater challenge to US dominance for leadership in areas such as 5G, artificial intelligence, cloud computing, and robotics.’

“@SBarlow_ROB ML: Less a trade war than technology arms race” – (research excerpt) Twitter

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Citi strategist Robert Buckland believes investors can benefit from shrinking global equity markets,

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“Why are stock markets shrinking? Most importantly, they are not competitive places to raise capital or sell companies right now… With equity expensive against debt, companies have increasingly turned to the bond markets for their financing needs. This impact has been compounded by QE… We can see a decent relationship between market valuation and de-equitisation. The shrinking US equity market trades on a higher PE multiple than non-shrinking Japan or Germany (Figure 14). Perhaps the S&P has rerated most in this cycle because its companies have been most willing to de-equitise. US equities are becoming a scarce resource. We always remember a legendary fund manager once telling us to “buy what’s scarce”.’

Mr. Buckland sees U.S. technology stocks as the biggest beneficiaries of the trend.

“@SBarlow_ROB de-equitization benefits U.S. tech stocks” – (research excerpt) Twitter

“ @SBarlow_ROB C: Net equity supply since 2002” – (chart) Twitter

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Tweet of the Day:

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Diversion: “US and French firms team up to accelerate the return of supersonic travel” – CNBC

Newsletter: “Investing is not the study of finance. It’s the study of how people behave with money” – Globe Investor

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