[{"post_title":"Coca Cola Shares Lower Following Earnings Miss","content":"Shares in us beverage giant Coca Cola are trading a little lower pre-market on Friday following a disappointing earnings call yesterday. The beverage-marker reported third-quarter earnings per share of $0.40, undershooting estimates for a $0.46 EPS.\r\n\r\nDespite the miss on headline earnings, revenues were above expectations at $8.65 billion. This beat estimates<\/a> of an $8.36 billion result. However, even at this level, revenues were down 9% on the same period last year.\r\n

Organic Sales Drop<\/strong><\/h2>\r\nLooking at the breakdown of the data, organic sales fell 6% year on year. Unit case volume, which is a measure of demand that strips out pricing impact\/currency impact, was lower by 4%.\r\n\r\nIndeed, all four categories of the company\u2019s drinks reported a falling unit case volume. Of these, the least affected was sparkling soft drinks which noted only a 1% decline.\r\n

Tea and Coffee Hit Hardest<\/strong><\/h2>\r\nOf the company\u2019s four drinks categories, tea and coffee were the worst hit, falling by 15% over the quarter. Just behind them was enhanced water and sports drinks which saw an 11% decline in unit case volume.\r\n\r\nMeanwhile, juice, dairy, and plant-based drinks were lower by 6%.\r\n\r\nCommenting on the big fall in demand for tea and coffee, CEO James Quincey said that the drop in traffic to the group\u2019s Costa cafes was the main reason and cautioned that traffic was not expected to pick up much in the near term.\r\n

At-Home Demand Growing<\/strong><\/h2>\r\nCommenting on the results, Quincey noted that the company had suffered as a result of the closure of cinemas over the quarter as well as reduced demand from restaurants and office buildings though did note a pick up in at-home demand which remains elevated.\r\n\r\nOn this, Quincey said:\r\n
\u201cWe have been winning share in at-home channels, and that\u2019s going to set us up for emerging stronger and being in a stronger position, even though mechanically in the short term, we lose share\u201d.<\/blockquote>\r\n

Slimming Down its Portfolio<\/strong><\/h2>\r\nQuincey also noted that the company is mid-transition as it continues to slim down its portfolio, letting go of brands that haven\u2019t performed well recently while focusing more on those that have.\r\n\r\nTab and Odwalla have both been cut, the latter of which recorded a $160 impairment charge over the quarter to Coca Cola\u2019s overall business. The company is now aiming to reduce its portfolio by 50% by end of the year.\r\n

Coca Cola Attempting to Breakout<\/strong><\/h2>\r\n\"cocacola<\/a>\r\n\r\nShares in Coca Cola are now once again fighting to get back above the broken bullish trend line with the key 51.55 level resistance sitting just above also. If price can break above here, there is a clear run-up to the next resistance at the 53.97 level. To the downside, the key local support is at 49.84 with 46.28 just below.\r\n\r\n[shortcode-variables slug=\"gbpusd-spread-demoaccount\"]","link":"https:\/\/www.orbex.com\/blog\/?p=127005","createdAt":"2020-10-23 15:16:56","image":"https:\/\/www.orbex.com\/blog\/wp-content\/uploads\/2020\/10\/Blog-Post-20-150x150.png"},{"post_title":"Everything You Need to Know About Amy Coney Barrett","content":"Yesterday, Trump's latest nominee for the US Supreme Court was voted out of the Senate Committee along party lines.\r\n\r\nThe nominee will now be voted on by the full Senate before October 26th according to the most recent schedule.\r\n\r\nThe event is significant mostly for political reasons but could have an impact on the election. And consequently, the markets.\r\n\r\nGenerally, the Supreme Court isn't a market mover, except in some narrow instances.\r\n\r\nFor example, in legislation that involves a specific company, a ruling from the court could drive their share price.\r\n\r\nBut, the Court's rulings more often than not have to do with legal wrangling that impacts the nation's legal system, politics, and social norms. So what's different now?\r\n

Upcoming Potentially Major Events<\/strong><\/h2>\r\nAmy Coney Barrett (or ACB) was nominated to replace Ruth Bader Ginsburg after her death.\r\n\r\nThe process has been controversial, to say the least. But that's not a matter for the markets.\r\n\r\nThe issue at hand is that the Trump Administration and Republicans in the Senate are doing their best to get Judge Barrett seated before the end of the month (whereupon she'd become Justice Barrett).\r\n\r\nThere are two major issues that could be market moving which will come before the Court in early November:\r\n

1.\u00a0 If there is a contested election<\/strong><\/h3>\r\nBoth presidential candidates are staffing up on lawyers in the advent that neither wins the election<\/a> decisively.\r\n\r\nThat could lead to a protracted legal battle that could extend into January. This would likely involve the Supreme Court like it did in 2000.\r\n\r\nThe markets would be unhappy with the uncertainty, and Barrett is expected to play a key role in those potential decisions. (Recent polling has shown Joe Biden's lead in the polls waning, sapping risk sentiment as the result is less certain.)\r\n

2. The Affordable Care Act<\/strong><\/h3>\r\nOn November 10th, the Supreme Court will hear a case involving the Affordable Care Act. This could either significantly modify the prior administration's signature legislation or do away with it entirely.\r\n\r\nThat would have far-reaching effects not just on insurance companies, but the economy as a whole.\r\n

Who is ACB?<\/strong><\/h2>\r\nAmy Coney Barrett's role is key here because she's on the right of the political spectrum.\r\n\r\nUp until now, the court was balanced between four conservative justices, four liberal, and one (Roberts) who leans either way. Barrett's nomination would tip the court to the conservatives' favor.\r\n\r\nBut \"conservative\" has a different legal definition than the political idea. Barrett is an \"originalist\".\r\n\r\nOriginalist judges \"interpret the laws as written\" in her own words. This differs from the \"liberal\" view that judges should interpret the law in the context of current events.\r\n\r\nBarrett wouldn't be expected to rule in favor of Republican laws any more than her predecessor and mentor, Antonin Scalia.\r\n\r\nIt means that the Supreme Court is likely to take a less activist role in deciding cases, leaving more contentious issues to Congress. In the long run, the increased certainty is likely to support economic growth and the markets.\r\n\r\n[shortcode-variables slug=\"trade-usd-movement-open-account\"]","link":"https:\/\/www.orbex.com\/blog\/?p=126965","createdAt":"2020-10-23 13:32:09","image":"https:\/\/www.orbex.com\/blog\/wp-content\/uploads\/2020\/10\/Blog-Post-2020-10-23T121117.549-150x150.png"},{"post_title":"SPX500 Flat To Complete Near 3154.78","content":"The structure of the SPX500 index shows a 5-wave impulse cycle.\r\n\r\nImpulse wave V of a cycle degree is currently under development. It consists of primary sub-waves \u2460-\u2461-\u2462-\u2463-\u2464.\r\n\r\nHorizontal correction wave \u2463, which is currently being formed is a double three (W)-(X)-(Y). Waves (W) and (X)\u00a0 ended, whereas wave (Y) is under development.\r\n\r\nIn the near future,\u00a0we could see a decline in wave (Y) to the 3154.78 area. At that level, primary correction \u2463 will be at 38.2% of impulse \u2462.\r\n\r\n\"spx500\"<\/a>\r\n\r\nAfter that, we could expect the market to rise in primary wave \u2464.\r\n\r\nAn alternative scenario shows primary correction wave \u2463 completed a simple bearish zigzag.\r\n\r\nWe then saw the formation of bullish impulse wave \u2464.\r\n\r\nIn the short term, we could see the index rise in the intermediate wave (5) near 3908.59.\r\n\r\nAt that level, wave \u2464 will be at 61.8% of primary impulse \u2462.\r\n\r\n[shortcode-variables slug=\"spx500\"]","link":"https:\/\/www.orbex.com\/blog\/?p=126982","createdAt":"2020-10-23 12:15:51","image":"https:\/\/www.orbex.com\/blog\/wp-content\/uploads\/2020\/10\/SPX500-1-2-150x150.png"},{"post_title":"GBPAUD Holds in Ascending Channel","content":"GBPAUD has been trading inside an ascending channel for a 2-month period. Since then, an attempted breakout at the upper level has been met with a mean reversion.\r\n\r\nThe said mean has been a point of support and resistance. We now look towards a possible move towards the lower channel.\r\n\r\nBias is currently on the downside from the past few sessions. The 23.6% 1.7492\/1.826 Fibonacci upside leg is the next target.\r\n\r\nShould prices drop past the said level and towards the lower channel, this would nullify the recent hidden bullish divergence on the momentum indicator.\r\n\r\nShould the median regression act as a support, then we could see another attempt towards 1.86, which would be a confluence on the upper channel.\r\n\r\n\"\"<\/a>\r\n\r\nAn intraday day perspective shows support at the upper border of the Ichimoku cloud.\u00a0This could indicate that the bias is ready to move to the median regression.\r\n\r\nThe week-long bearish divergence noted on the momentum indicator could put a halt to those proceedings. If this comes into fruition, then a slide towards the 23.6% long-term Fibonacci leg would see prices fully engulfed in the cloud.\r\n\r\n[shortcode-variables slug=\"gbpwillfare\"]","link":"https:\/\/www.orbex.com\/blog\/?p=126945","createdAt":"2020-10-23 11:27:40","image":"https:\/\/www.orbex.com\/blog\/wp-content\/uploads\/2020\/10\/main-10-150x150.png"}]