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krisluke
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29-Jul-2013 16:34
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M& A fever helps European stocks rally
Business section of a newspaper with Euros
* Elan surges after $8.6 bln takeover offer from Perrigo * Media stocks jump after Publicis-Omnicom merger plan By Blaise Robinson PARIS, July 29 (Reuters) - European stocks rose on Monday as a flurry of big mergers and acquisitions deals boosted sentiment and helped the market bounce back after a two-session dip. Shares in Irish drugmaker Elan jumped 8.3 percent after U.S. peer Perrigo agreed to buy the firm for $8.6 billion, sparking a rally in health care stocks, with Shire up 2.1 percent and AstraZeneca up 1.2 percent. Media shares also surged, boosted by a merger plan between Publicis and Omnicom unveiled over the weekend, in a deal worth $35.1 billion. France's Havas soared 5.7 percent and UK's WPP added 1.7 percent. Publicis shares were halted on Monday. At 0802 GMT, the FTSEurofirst 300 index of top European shares was up 0.4 percent at 1,209.40 points, after losing about 0.8 percent in two sessions. The benchmark index has risen 9 percent since late June. Also among the biggest gainers on Monday, France's Essilor , an ophthalmic optics company, rose 4.1 percent after buying a 51 percent stake in photochromic lens unit Transitions Optical from PPG Industries Inc for $1.73 billion. The media and health care sectors have outperformed the market this year, with the STOXX Europe 600 media index up 17 percent and the STOXX Europe 600 health care index up 14.4 percent, while the FTSEurofirst 300 is up 6.9 percent. " These big M& A deals are a big boost for the market, although the buzz is usually short-lived, so I remain relatively cautious at this point," said Philippe de Vandiere, analyst at Altedia Investment Consulting, in Paris. " The market has risen quite a lot already and even though we didn't really have nasty surprises in earnings, there's no big catalyst seen ahead, and we see investors turning more defensive." On the earnings front, French food group Danone gained 3.1 percent after saying sales growth accelerated in the second quarter, and keeping its full-year 2013 profit and sales outlook. Siemens rose 1.5 percent. The German engineering conglomerate said its supervisory board will decide on the early departure of its chief executive on July 31. Around Europe, UK's FTSE 100 index was up 0.6 percent, Germany's DAX index up 0.8 percent, and France's CAC 40 up 0.5 percent. The euro zone's blue-chip Euro STOXX 50 index was up 0.3 percent at 2,748.96. " I'm quite positive, the market goes up slowly with some consolidation moves happening during the session," TradingSat analyst Alexandre Tixier said. " Trading volumes remain brisk, which is a sign of strong buying appetite at this point. Our exposure to equities is at 80 percent right now." |
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krisluke
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29-Jul-2013 16:33
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krisluke
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29-Jul-2013 16:31
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Japan's PM may rethink tax hike could shake markets, unsettle support
By Yuko Yoshikawa
TOKYO, July 29 (Reuters) - Japan's most significant fiscal reform in years - a planned increase in the country's sales tax - could be delayed or watered down in a move that might rattle financial markets and ultimately undermine support for the prime minister. Despite holding the strongest political mandate of any prime minister in years, there are signs Shinzo Abe is seriously rethinking the plan out of concern it could derail a nascent economic recovery he has crafted with an aggressive policy mix, dubbed Abenomics. In the latest sign, Abe has ordered a study of alternatives for implementing the sales tax increases, including introducing them more gradually, government sources said. Abe says he will decide in the autumn whether to proceed with the first part of the two-stage plan after gauging the state of the economic recovery, especially GDP data that is due on Sept 9. The tax, similar to general sales tax and value added tax in other countries, is due to rise to 8 percent in April 2014 and then 10 percent in 2015. Abe does not want to raise the tax, given the likely economic and political repercussions, but he understands the risks of upsetting the markets by giving the appearance of backtracking on promised reform, said a person involved in crafting economic policies. At 5 percent, Japan and Canada have the lowest equivalent consumption taxes in the Organisation for Economic Co-operation and Development, OECD data shows. The stakes in Japan are high. The tax hike was passed into law last year with the support of Abe's current coalition parties and the previous government and is meant to be the first step toward repairing Japan's tattered finances. However, the law also requires the government to judge the economic conditions before giving the final go ahead. Reneging on fiscal reform could hit investor confidence, which has allowed Tokyo to borrow money cheaply even though its $5 trillion public debt, well over twice the nation's annual economic output, is the heaviest burden in the industrial world. At the same time, Abe has stressed that his top priority is to rouse Japan from 15 years of deflation and tepid growth through his Abenomics programme of heavy government spending, massive monetary easing and promises of a longer-term growth strategy. Abe himself admitted the thorny dilemma just hours after scoring a landslide win in upper house elections on July 21 that gave his ruling bloc a clear parliamentary majority. " It will be a difficult decision," he said of the looming tax choice. " The economy is just starting to recover and now is the best chance for Japan to emerge from deflation," Abe said. " I don't want to lose this chance. At the same time, markets are watching (our progress) on Japan's fiscal reform." SPLIT Despite his electoral triumph, Abe's team is split. A small number of vocal reflationists, such as cabinet office adviser Koichi Hamada, say Abe should prioritise recovery and go-slow on raising the tax. Pitted against them, the Finance Ministry says it is vital for Japan to show markets and trading partners that it is serious about putting its fiscal house in order. Three sales tax scenarios will likely be reviewed by the Council on Economic and Fiscal Policy, a panel of top government and private sector officials, and possibly by a separate, newly established panel of experts as well, the government sources said. The three scenarios include: the current plan raising the rate by 2 percentage points in the first step, and then in increments of 1 percentage point and, raising it 1 percentage point annually. The top government spokesman, Yoshihide Suga, did not comment on whether Abe had ordered a rethink of the hike, but told reporters Abe will take into account the opinion of various economic experts. Public opinion, meanwhile, may play to the advantage of the reflationists. A survey of 902 people in the Nikkei business daily, conducted just after the election, found only 11 percent supporting the existing plan, compared with 58 percent who favour " flexibility" in the timing or scale of the increase and 27 percent who oppose raising the tax at all. History too provides a cautionary tale for Abe, who got a rare second chance at running the government in December. Noboru Takeshita, the premier who forced the first sales tax through parliament in 1988, and Ryutaro Hashimoto, who raised it to 5 percent from 3 percent in 1997, were driven from office as their public support collapsed - although other problems also plagued both men. The decision to double the tax contributed to fracturing the party of Abe's predecessor, Yoshihiko Noda. Adviser Hamada, a 77-year-old emeritus professor at Yale University and a key member of Abe's brain trust, told Reuters on July 23 that Japan needed much more evidence of a sturdy recovery before raising the tax. The economy, which grew at an annualised rate of 4.1 percent in the first quarter - the fastest among Group of Seven industrial powers - needs to maintain similar growth for two more quarters before enduring a tax hike, Hamada said. BOND TRADERS WATCHING He set the bar higher still, saying he is pushing Abe to wait not only until growth picks up but until employment improves, ensuring a firmer footing for the recovery. It is unclear how much influence Hamada has on fiscal policy, but the views of the reflationists might " have significant influence on Abe's thinking on this subject," said former Bank of Japan deputy governor Kazumasa Iwata, head of the prominent think tank, the Japan Centre for Economic Research. Some government officials are keen to start fiscal reform, privately worried that changing the tax plan would endanger Japan's promise to halve its budget deficit - excluding debt-financing - from fiscal 2010 levels by fiscal 2015 and balance the budget five years later. They say raising the tax in incremental steps each year could be too easily derailed, since the politically sensitive hikes would have to be approved for five years in a row - with national elections scheduled in three years. Finance Minister Taro Aso has insisted on sticking to the tax-hike plan, saying it was an international promise, but he has suggested some fiscal spending could soften the blow. BOJ Governor Haruhiko Kuroda said he did not think the current plan " will do any great harm to the economy." The Japanese government-bond market, which lets Abe's government borrow 10-year money for less than 0.8 percent, would be hit hard if Abe changes the sales-tax plan, said Tadashi Matsukawa, head of Japan fixed income at PineBridge Investments. " The whole of Abenomics would basically crash under that scenario," he said, adding he thinks it unlikely Abe will change the plan. Iwata, the former BOJ deputy governor, told Reuters that if Abe postponed the agreed tax hike, that would endanger the rest of the fiscal-reform schedule. " If Japan can't raise the tax rate even when the economy is in good shape, that may lead to market distrust over Abe's governance," Iwata said. |
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krisluke
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29-Jul-2013 16:30
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Winner Alberto Del Rio http://www.bollyrulez.net/wwe-smackdown/1471146-watch-wwe-smackdown-7-26-2013-26th-july-2013-hdtv-watch-online-download-%2Adivx%2A.html
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krisluke
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29-Jul-2013 15:51
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Brent drops below $107 on demand woes dollar supports
* Dollar pulls back in Asia ahead of Fed policy meet
* Hedge funds bet wrong on US crude before slump * Explosions rock Libya's Benghazi, protesters take to streets * Brent biased to drop to $105.88 -technicals (Updates prices) By Manash Goswami SINGAPORE, July 29 (Reuters) - Brent futures slipped below $107 a barrel on Monday due to concerns over demand growth, although a weak dollar and fears about supply disruptions kept losses in check. Investors have been rattled by the slowdown in China, and are awaiting manufacturing data to help gauge the demand outlook. Still, a fall in the dollar on expectations the U.S. Federal Reserve will affirm its low interest rate policy on Wednesday has helped support crude. Brent crude slipped 19 cents to $106.98 a barrel by 0643 GMT, after ending 48 cents lower on Friday and sliding for a second straight week. U.S. oil fell 54 cents to $104.16 after settling 79 cents down in the previous session. " Oil will not go up much higher or fall below these levels, with Brent drawing support from the Forties pipeline issues and the U.S. benchmark under pressure from rising production in North Dakota," said Yusuke Seta, a commodity sales manager at Newedge Japan. " It will be a volatile week for prices with key data and policy meetings due this week." The North Sea's Forties pipeline has cut pumping rates by about 40,000 barrels per day (bpd) because of maintenance work, trade sources said, tightening supply of the crude that underpins the Brent benchmark. In the United States, crude output hit its highest since 1990 in the week ended July 19, data from the U.S. Energy Information Administration showed. Seta expects Brent to trade between $106 and $109 a barrel this week with the U.S. benchmark hovering around $105. Brent's premium to the U.S. contract will stay between $3 and $6 a barrel as the European marker draws support from supply woes and West Texas Intermediate (WTI) crude is pressured by ample supplies, Seta said. DEMAND, SUPPLY OUTLOOK Hedge funds took huge positive bets on U.S. crude last week just before the market turned south. Positive wagers by money managers on WTI reached a record high for the week ended July 23, data from the Commodity Futures Trading Commission showed. " Investors will have to liquidate these positions they have built up, but the question is when," Seta said. Investors are eyeing official data this week from China on its manufacturing sector after an initial reading from HSBC showed activity at its slowest in 11 months in July. They are also awaiting a two-day policy meeting by the Federal Reserve starting on Tuesday. If the Fed confirms it will reduce its bond purchases by September, that will fuel another commodities sell-off. A delay will spur a rally. " Fed Chairman Bernanke indicated at his semi-annual testimony that the central bank isn't yet ready to start winding back its asset purchases," analysts at ANZ said in a note. " Our base case remains that the Fed will begin tapering its asset purchase program in September." Lingering supply disruption concerns continue to support oil prices. Explosions rocked the eastern Libyan city of Benghazi on Sunday, while protests in Egypt fuelled worries the conflict may spill over into other countries in the Middle East. (Editing by Tom Hogue and Himani Sarkar) |
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krisluke
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29-Jul-2013 15:49
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Israeli-Palestinian peace talks to resume after three years
By Arshad Mohammed and Ori Lewis
WASHINGTON/JERUSALEM (Reuters) - Israel and the Palestinians plan to resume peace negotiations this week for the first time in nearly three years after an intense effort by U.S. Secretary of State John Kerry to bring them back to the table. The talks are scheduled to resume in Washington on Monday evening and Tuesday and will be conducted by senior aides to Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas, the State Department said. " Both leaders have demonstrated a willingness to make difficult decisions that have been instrumental in getting to this point. We are grateful for their leadership," Kerry said in a statement. Middle East analysts voiced scepticism that the talks might lead to a peace treaty to end the more than six-decade conflict that has defied two decades of U.S. efforts to broker a solution. Still, the resumption of negotiations is a rare moment of good news in the Middle East for the Obama administration, which has struggled to formulate a policy to try to end the civil war in Syria or to facilitate a democratic transition in Egypt. Even getting the Israelis and the Palestinians to agree to resume talks required great effort by Kerry, who made six peace-making trips to the region in the last four months - an unusual amount of time - to coax the two sides back. The last piece of the puzzle came together when the Israeli Cabinet on Sunday approved the release of 104 Palestinian prisoners, with 13 ministers voting for the release, seven against and two abstaining, an Israeli official said. In another sign of possible momentum, Martin Indyk, a former U.S. ambassador to Israel who directs the foreign policy program at the Brookings Institution think tank in Washington, is expected to be named as the new U.S. envoy for Middle East peace, possibly as early as Monday, a source familiar with the matter said. OBAMA'S INVOLVEMENT NEEDED? The last round of direct negotiations broke down in late 2010 in a dispute over Jewish settlement construction in the West Bank, land that Israel seized in a 1967 war, along with the Gaza Strip, which the Palestinians want for a state. It is unclear how the United States hopes to bridge the core issues in the dispute, including borders, the future of Jewish settlements on the West Bank, the fate of Palestinian refugees and the status of Jerusalem. While commending Kerry for his determination, Shibley Telhami, Anwar Sadat Professor for Peace and Development at the University of Maryland, said President Barack Obama would have to get involved if the talks were ultimately to succeed and the United States would have to offer its own ideas for a solution. " At some point, the central player in this saga is not going to be Netanyahu, it's not going to be Abu Mazen (Abbas), it's not going to be John Kerry, it's going to be Barack Obama," he said. " So far, it's not clear that ... the president is prepared to take the kind of risk that would move this forward." The State Department said the initial talks were planned for 8 p.m. on Monday at an iftar - the evening meal at which Muslims break their daily Ramadan fast - that Kerry will host at the State Department. They are to be followed by talks on Tuesday. State Department spokeswoman Jen Psaki suggested the talks in Washington would be to chart a path forward, rather than to leap directly into the thorny issues that need to be resolved. After his latest round of shuttle diplomacy, Kerry announced on July 19 in Amman, Jordan, that the parties had laid the ground to resume negotiations on the so-called " final status" issues that must be resolved to end the dispute. " The meetings in Washington will mark the beginning of these talks," Psaki said. " They will serve as an opportunity to develop a procedural work plan for how the parties can proceed with the negotiations in the coming months." PRISONER DEAL Earlier on Sunday, Netanyahu had urged divided rightists in his Cabinet to back the prisoner deal. " This moment is not easy for me, is not easy for the Cabinet ministers, and is not easy especially for the bereaved families, whose feelings I understand," he said when the Cabinet met, referring to families who have lost members in militant attacks. " But there are moments in which tough decisions must be made for the good of the nation and this is one of those moments." Israeli Channel 1 television said prisoners would be released in three stages, depending on progress in the talks, with a group of Israeli citizens left until the last stage. Abbas has demanded the release of prisoners held since before a 1993 interim peace accord took effect. Israel has jailed thousands more Palestinians since then, many for carrying out deadly attacks. The prisoner release would allow Netanyahu to sidestep other Palestinian demands, such as a halt to Jewish settlement expansion and a guarantee that negotiations over borders will be based on boundaries from before the 1967 Middle East war, when Israel captured the West Bank, Gaza Strip and East Jerusalem. Hundreds of protesters from the Popular Front for the Liberation of Palestine (PFLP) staged a rally against the resumption of peace talks, clashing with police in the West Bank city of Ramallah, the seat of Abbas's Palestinian Authority. PFLP activists also demonstrated in Gaza and chanted: " Listen Abbas, our land is not for sale. ... The (Palestinian) cause will never be resolved except by the rifle." Aaron David Miller, a former U.S. peace negotiator who works for the Woodrow Wilson International Center for Scholars think tank in Washington, said he was impressed by Kerry's tenacity. " He has invested so much in this now, and even through expectations are so low, he is in an investment trap, he really can't let it fail now," Miller said. " Which means he'll have to go to extreme lengths to keep this thing afloat." (Additional reporting by Allyn Fisher-Ilan and Ari Rabinovitch in Jerusalem, Ali Sawafta in Ramallah and Nidal al-Mughrabi in Gaza Editing by Alistair Lyon, Stacey Joyce and Paul Simao) |
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krisluke
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29-Jul-2013 15:47
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China shares end at 3-week low materials, financials weak
Welcome to Shanghai sign at night
The Shanghai Composite Index ended down 1.7 percent at 1,976.3 points. The CSI300 of the leading Shanghai and Shenzhen A-share listings dropped 2.2 percent. Both indexes fell to their lowest in three weeks. Construction material and railway firms dropped as investors booked profits after recent rebounds, while rate sensitive sectors such as banks and property were also weak as China's weighted seven-day repo rate jumped on Monday. (Reporting by Yimou Lee Editing by Jacqueline Wong) |
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krisluke
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29-Jul-2013 15:46
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Japanese stocks lead Asia lower as yen firms
Graph with stacks of Australian dollars
* Yen rises to one-month high vs broadly weaker dollar * Tentative gains seen for European stocks at open * Plenty of hurdles this week, not least Fed meeting By Ian Chua SYDNEY, July 29 (Reuters) - The yen rose to a one-month high against the dollar on Monday as investors braced for another round of disappointing economic news out of China, knocking Japanese stocks to four-week lows and dragging down regional markets. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.6 percent, giving back a chunk of last week's 1.9 percent gain. Tokyo's Nikkei share average slid 3.3 percent to its lowest close this month, and has now lost more than 7 percent in three days. Traders said there were concerns that manufacturing surveys later this week would point to more weakness in China, Asia's economic powerhouse and a major trading partner for countries throughout the region. " A sense of caution is looming in the market, especially because investors are worried about a slowdown in the Chinese economy. And when they see a risk in Asia, they tend to buy the yen, and the Japanese market is hit by that," said Kyoya Okazawa, head of global equities at BNP Paribas. Adding to the uncertainty were signs that a planned increase in the sales tax -- Japan's most significant fiscal reform in years and seen as a test of government resolve to fix its finances -- could be delayed or watered down. " Foreign investors expect Japan to raise its sales tax rate to 8 percent next April and this has supported the market for some time now," said Kenichi Hirano, a strategist at Tachibana Securities. " If this plan doesn't go through as expected, it could result in a huge sell-off in yen and Japanese stocks. Even a change or a delay in the plan would have negative effects on the markets." Despite the fall in Asian bourses, financial spreadbetters are calling for European markets to open slightly higher, partly supported by hopes the Federal Reserve, European Central Bank and Bank of England will this week offer reassurances that their monetary policies will remain accommodative for a long time. All three central banks hold their respective meetings later in the week. FIRMER YEN The yen strengthened to a one-month high around 97.64 per dollar, having been weaker than 100 per dollar as recently as last Thursday, while the euro fell back below 130.00 yen to two-week lows. Against the dollar, the euro was little changed at $1.3280 , having stalled for a third day just under $1.33. That helped the dollar index edge off a five-week trough hit earlier in the day. Still, expectations that the Fed will maintain its pledge to keep policy loose even if it is to begin tapering stimulus in coming months should keep the dollar pinned down, analysts said. " The Fed is likely to reiterate that while it is considering tapering its monetary stimulus later this year, it is conditional on stronger economic growth and that interest rate hikes are still a long way off," said Shane Oliver, head of investment strategy at AMP Capital. Oliver said the Fed might even consider adjusting its policy guidance to emphasise there will be no imminent tightening. " The Fed's assessment of recent mixed data will clearly be watched as a guide to whether the start of tapering will be delayed beyond the September meeting, which was initially the consensus favourite as to when it would begin." Worries about China kept commodities under pressure, although the soft dollar helped limit their losses. Copper reached three-week lows around $6,820 a tonne, while U.S. crude eased 0.5 percent to $104.14 a barrel, staying within sight of a three-week trough of $103.90 hit on Friday. Gold was a touch softer following a 3 percent rally last week. It stood around $1,327 an ounce, off a five-week peak of $1,347.69 hit last Tuesday. |
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krisluke
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29-Jul-2013 15:45
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Australia shares post minute gain, CBA hits all-time closing high
Entrance interior of the Australian Securities Exchange
SYDNEY, July 29 (Reuters) - Australian shares ended a volatile day's trade just 0.1 percent higher on Monday after strong leads from the financial sector were undermined by weakness in miners, with investors remaining cautious ahead of the U.S. Federal Reserve's policy-setting meeting this week. Commonwealth Bank of Australia added 0.3 percent to an hit an all-time closing high of A$73.86 The S& P/ASX 200 index added 4.3 points to 5,046.3 to hover at 2-month highs, and is up 5.1 percent so far for July. The benchmark edged up 0.1 percent on Friday. New Zealand's benchmark NZX 50 index slipped 0.1 percent or 3.5 points to finish at 4,578.5. (Reporting by Thuy Ong Editing by Eric Meijer) |
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krisluke
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29-Jul-2013 15:44
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SE Asia Stocks-Slide along with Asia Bangkok, Jakarta lead
BANGKOK, July 29 (Reuters) - Southeast Asian stocks fell,
tracking losses across regional markets on Monday, with Thai shares among underperformers due to political uncertainties at home while Indonesia's benchmark index sliding to a two-week low with large-caps leading the way. Trading volume was broadly light as investors awaited progress in the key global events this week including the U.S. stimulus from the Federal Reserve's policy meeting and the U.S. GDP data, traders said. Thai SET index fell 1.4 percent to 1,455.59 by midday, with 3.5 million shares changing hands, 33 percent of a full-day average over the past 30 sessions. Investors remained cautious ahead of a parliamentary session next month, which will consider some key bills including an amnesty bill. " For short-term strategy, we advise investors to maintain equity exposure at 50 percent of the portfolio while the weak bias remains intact for Thai stocks amid domestic political worries," said broker Phillip Securities in a report. Shares in Krung Thai Bank Pcl, the most actively traded and among major losers on the day, slipped 2.7 percent, extending a 5.7 percent drop over the past three sessions, partly hit by short selling activities, traders said. Among weak spots, Indonesia lost 1.37 percent to 4,590.95, the lowest since July 15, adding on a 1.4 percent fall last week due to concerns about the rupiah's weakness. The Philippines fell 0.8 percent after last week's 2 percent rise amid ratings hopes. The prospect of good earnings helped lure buyers, with shares in Manila Electric Co edging higher after the Philippines' largest power utility said it expected core net income to grow about 4 percent this year. For Asian Companies click For South East Asia Hot Stock reports, click SOUTHEAST ASIAN STOCK MARKETS Change at 0649 GMT Market Current Prev Close Pct Move TR SE Asia Index* 428.68 433.57 -1.13 Singapore 3228.28 3236.10 -0.24 Kuala Lumpur 1800.22 1807.61 -0.42 Bangkok 1455.59 1476.71 -1.43 Jakarta 4589.68 4658.87 -1.49 Manila 6713.20 6763.62 -0.75 Ho Chi Minh 487.20 493.93 -1.36 |
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krisluke
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29-Jul-2013 15:43
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Wall St wipes out losses late to end with slim gain
Times Square, New York
* Expedia sheds more than 25 percent after results * Amazon shares touch 52-week high * Dow up 0.02 pct, S& P 500 up 0.1 pct, Nasdaq up 0.2 pct By Alison Griswold NEW YORK, July 26 (Reuters) - U.S. stocks erased losses late in Friday's session to close slightly higher on investors' optimism about the likelihood that the Federal Reserve will keep its easy money policy in play a while longer. With just three trading days left in the month, the S& P 500 is set to post its best month since October 2011. The Nasdaq's advance makes July so far the best month in a year and a half. After declining for most of the day, the market regained ground shortly before the close, and all three major indexes finished in positive territory. At one point, the Dow was down as much as 150.45 points. " I was surprised we ended up, but people have a sense of optimism about the market," said Matt McCormick, a money manager at Cincinnati-based Bahl & Gaynor Inc. " The bad news from the morning was digested and discarded. Earnings haven't been as bad as people expected, and the political issues aren't in the forefront right now. That could change at any moment, but enjoy the summer rally while you can." Five of the 10 S& P 500 industry sector indexes advanced, with the health sector leading the gains. The Dow Jones Industrial Average rose 3.22 points, or 0.02 percent, to end at 15,558.83. The Standard & Poor's 500 Index gained 1.40 points, or 0.08 percent, to finish at 1,691.65. The Nasdaq Composite Index advanced 7.98 points, or 0.22 percent, to close at 3,613.16. Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey, said the market began to turn around on news that President Barack Obama had not reached a decision on who will succeed Federal Reserve Chairman Ben Bernanke and on optimism that the central bank will keep monetary policy accommodative. " At least today, the market is expecting the Fed to offer no surprises, and if anything, to be maybe a bit more dovish," she said. Speculation over who Bernanke's successor could be has caused anxiety in the market, with investors wondering how different the next chair's policies would be. The timing of the announcement is also tricky as the Fed simultaneously considers when to begin pulling back its $85 billion a month in bond purchases. The prospect that former Treasury Secretary Lawrence Summers might get the nod, and not current Fed Vice Chair Janet Yellen, has concerned investors. Yellen is seen as more likely to provide a smooth transition after Bernanke's term ends, while Summers is viewed as more critical of the effectiveness of the central bank's stimulus. Investors will scrutinize the Federal Open Market Committee policy statement next Wednesday for any additional clues about the Fed's intended timeline for scaling back its quantitative easing. For the week, the S& P 500 finished essentially flat - down just 0.03 pct - the first week in five that it did not manage a gain. But the benchmark index is up 5.3 percent so far in July - its best month since October 2011. The Dow rose 0.1 percent for the week, extending its string of weekly gains. For July, the Dow is up 4.4 percent. The Nasdaq is up 6.2 percent in July so far, its best monthly gain in a year and half. For the week, the Nasdaq is up about 0.7 percent. Expedia ranked among the most active names traded on the Nasdaq. Shares of the online travel agency plunged 27.4 percent to $47.20 a day after it reported a quarterly profit far short of market estimates. Starbucks gave the biggest boost to the S& P 500 a day after the world's largest coffee chain reported a bigger-than-expected jump in quarterly profit. Starbucks' stock rose 7.6 percent to close at $73.36. Halfway through earnings season, 67.6 percent of S& P 500 companies have beaten analysts' expectations - in line with the 67 percent average beat in the last four quarters. About 56 percent of the companies have beaten revenue expectations, more than the 48 percent of revenue beats in the past four earnings seasons, but below the historical average. Amazon shares turned higher despite a forecast that disappointed on income and revenue. The stock rose 2.8 percent to $312.01, a rebound from a session low at $295.55. Earlier on Friday, Amazon's stock hit a 52-week high of $313.62. Boeing Co shares declined after the U.S. Federal Aviation Administration said it was proposing to fine the company's commercial airplane division $2.75 million for failing to take prompt action to fix a problem with fasteners on its model 777 airplanes. Shares of Boeing fell 1 percent to $105.60 and were the biggest drag on the Dow. In addition to the FOMC meeting on Tuesday and Wednesday, next week's packed economic calendar includes the advance estimate, or second look, at gross domestic product for the second quarter, and the July nonfarm payrolls report. About 5.4 billion shares changed hands on U.S. exchanges, below the daily average of 6.4 billion. Volume was relatively light for the week as a whole. Decliners outnumbered advancers on the New York Stock Exchange by a ratio of 8 to 7. On the Nasdaq, about five stocks fell for every three that rose. |
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krisluke
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29-Jul-2013 15:41
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Bumper M& A deal pushes Britain's FTSE higher
The London Stock Exchange logo is seen outside the exchange
Elsewhere, U.S. generic drugmaker Perrigo agreed to buy Ireland's Elan for $8.6 billion, while UK insurer Aviva is in talks over a deal to expand in Asia, a weekend newspaper report said. The FTSE 100 was up 34.73 points, or 0.5 percent at 6,589.52, by 0708 GMT. The index is hovering near 8-week highs, although the recent rally of more than 9 percent since June lows showed signs of running out of steam but a fresh blast of M& A could help underpin those gains. " Markets will continue to push higher, helped particularly by the $35 billion merger of Publicis and Omnicom, Aviva's push into Indonesia, and Perrigo's bid for Elan boosting market sentiment," Mark Ward, head of trading at Sanlam Securities, said. The world's no.1 ad agency WPP topped the list of FTSE 100 risers, up 4 percent after French peer Publicis and U.S. firm Omnicom announced a $35.1 billion merger. (Reporting by David Brett editing by Simon Jessop) |
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krisluke
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29-Jul-2013 14:28
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5 Reasons The Fed Taper Will Kick Off In September Little doubt remains at this stage that the Fed will begin slowing its securities purchases this September. The central bank under Bernanke's leadership has been highly focused on data and will consider the following 5 broad indicators to reach its decision. 1. Labor markets: As Bernanke recently pointed out, with respect to labor markets the hurdle for reducing purchases is lower than for raising rates. The FOMC will be looking for improvements in demand for labor in the US and will find it in these data:
While the labor situation is still terrible by historical standards, it will be sufficient for the FOMC who will be looking for steady improvements. The strength in consumer confidence (see latest from U Michigan) will also be viewed as supportive of the stronger labor markets thesis. 2. Money supply: Once again the view will be that broad money supply's relatively steady growth of above 7% per year will suffice.  3. Economic activity: While a number of indicators have been pointing to less than stellar growth, the Fed will consider (among other measures) the broadest indicator, the so-called Coincidence Index of Economic Activity. The index hides numerous problems with the economy but will nevertheless be an important data point for the central bank. And based on this indicator, the US is experiencing sufficiently steady growth. To support the steady growth thesis, the Fed will also consider surprisingly strong auto purchases and factory orders data (see Reuters story).  4. Financial stress: The Fed's own indicators point to fairly benign financial conditions. This is not surprising given the relatively tight swap spreads and credit spreads, low VIX, strong equity markets, etc.  Supporting the US data on financial stress is the ECB's " Systemic Stress Composite Indicator" (below), which has declined to near record lows. Given the impact of the Eurozone crisis on US financial markets, the Fed will clearly consider that index as well.
5. Impact on interest rates: Certainly with the Fed exiting treasury purchases, the demand for US government paper should will be reduced, pushing yields higher. But given the recent fiscal tightening in the US (due in large part to the sequester), treasury issuance is expected to decline - at least in the near term (chart below). The Fed will view this decline in the federal government's borrowing needs as counteracting its reduction in purchases and keeping rates under control in the near term.
Obviously, an exogenous shock such as a spike in oil prices could force the Fed to hold off. Also the US legislators' failure to raise the federal debt ceiling, which Bernanke called " a calamitous outcome" , could take tapering off the table. CIBC World Markets: - Any attempts to tie a budget deal to a repealing of Obamacare could throw a wrench into discussions, while inflexibility on either side could push negotiations to the eleventh hour. And with federal borrowing pressing up against the limit, wrangling over the debt ceiling—an apparent late summertime tradition—is set to heat up yet again. Aside from such events, the Fed is likely to shave off some $15-$20bn from its monthly purchases. With Bernanke likely departing early next year, the Fed is eager to wrap up this latest round of purchases soon and focus on the more traditional policy tools such as short-term rates and forward guidance (see discussion). |
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krisluke
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29-Jul-2013 14:25
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This Week Is So Stacked With Mega Economic Events We Might Just Feel The Axis Of The Earth Tilt " Risk events are set to pick up dramatically, threatening the summer lull," says Société Générale head of rates and forex strategy Vincent Chaigneau.
Economic Calendar
Market Commentary Despite the sea of uncertainty on the horizon, J.P. Morgan's Tom Lee is bullish. " With both U.S. and Europe expected to see better growth in [the second half of 2013], we believe the Street will be in a position to raise 2014E EPS," said Lee about stock market profits. " We are raising 2014E EPS to $120 (vs $117) and also raising our YE 2013E S& P 500 Target to 1775 (up 3.5% vs prior 1715)." Among other things, Lee is encouraged by the pent-up demand he sees in the U.S. " As for the U.S. and to a lesser extent for Europe, this is more than “easing financial conditions” but a story of pent-up demand," he said. " [I]nvestment/durables spending in the U.S. remains at 60-year lows. And at a time when the age of capital- stock is near record highs. This is a formula, in our view, for obsolescence asserting itself in the form of an eventual sharp rise in spending." We asked Matthew Cheslock, Equity Trader at Virtu Financial, what we should think about when it comes to China, Europe, and the U.S. Watch the video here:
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krisluke
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29-Jul-2013 14:20
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Saudi Prince Alwaleed warns against falling oil demand
By Yara Bayoumy
DUBAI, July 29 (Reuters) - Saudi billionaire Prince Alwaleed bin Talal warned that the Gulf Arab kingdom needed to reduce its reliance on crude oil and diversify its revenues, as rising U.S. shale energy supplies cut global demand for its oil. In an open letter to Oil Minister Ali al-Naimi and other ministers, published on Sunday via his Twitter account, Prince Alwaleed said demand for oil from OPEC member states was " in continuous decline" . He said Saudi Arabia's heavy dependence on oil was " a truth that has really become a source of worry for many" , and that the world's biggest crude oil exporter should implement " swift measures" to diversify its economy. Prince Alwaleed, owner of international investment firm Kingdom Holding, is unusually outspoken for a top Saudi businessman. But his warning reflects growing concern in private among many Saudis about the long-term impact of shale technology, which is allowing the United States and Canada to tap unconventional oil deposits which they could not reach just a few years ago. Some analysts think this may push demand for Saudi oil, as well as global oil prices, down sharply over the next decade. Over the past couple of years the Saudi government has taken some initial steps to develop the economy beyond oil - for example, liberalising the aviation sector and providing finance to small, entrepreneurial firms in the services and technology sectors. Naimi said publicly in Vienna in May that he was not concerned about rising U.S. shale oil supplies. Prince Alwaleed told Naimi in his open letter, which was dated May 13 this year, that he disagreed with him. " Our country is facing a threat with the continuation of its near-complete reliance on oil, especially as 92 percent of the budget for this year depends on oil," Prince Alwaleed said. " It is necessary to diversify sources of revenue, establish a clear vision for that and start implementing it immediately," he said, adding that the country should move ahead with plans for nuclear and solar energy production to cut local consumption of oil. The shale oil threat means Saudi Arabia will not be able to raise its production capacity to 15 million barrels of oil per day, Prince Alwaleed argued. Current capacity is about 12.5 million bpd a few years ago the country planned to increase capacity to 15 million bpd, but then put the plan on hold after the global financial crisis. While most Saudi officials have in public insisted they are not worried by the shale threat, the Organization of the Petroleum Exporting Countries (OPEC) has recognised that it needs to address the issue. In a report this month, OPEC forecast demand for its oil in 2014 would average 29.61 million bpd, down 250,000 bpd from 2013. It cited rising non-OPEC supply, especially from the United States. At its last meeting in Vienna in May, OPEC oil ministers spent time discussing shale technology and set up a committee to study it. |
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Octavia
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26-Jul-2013 11:57
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The Biggest Oil Discovery In 50 Years?
In a virtually uninhabitable section of South Australia, a discovery has been made which could rock the world. Some are calling it the biggest discovery of oil in 50 years. Earlier this year, a company called Linc Energy announced that tests had revealed that there was a minimum of 3.5 billion barrels of oil equivalent sitting under more than 65,000 square kilometres of land that it owns in the Arckaringa Basin. But that is the minimum number. It has been projected that there could ultimately be up to 233 billion barrels of recoverable oil in the area. If that turns out to be accurate, the oil sitting under that land is worth approximately 20 trillion dollars, and it would be roughly equivalent to the total amount of oil sitting under the sands of Saudi Arabia. In essence, it would be a massive game changer.
That prediction didn't exactly work out for him did it? It is time that the American people were told the truth about our energy situation, and the truth is that we have plenty of energy resources. The following stats have been updated from one of my previous articles... #1 Back in 1995, the U.S. Geological Survey told the American people that the Bakken Shale formation in western North Dakota and eastern Montana only held 151 million barrels of oil. Today, government officials are admitting that it holds 7.4 billion barrels of recoverable oil, and some analysts believe that the actual number could be closer to 24 billion barrels of oil. #2 It is estimated that there are 19 billion barrels of recoverable oil in the tar sands of Utah. #3 It is estimated that there are 86 billion barrels of recoverable oil in the Outer Continental Shelf. #4 It is believed that there are 800 billion barrels of recoverable oil in the Green River formation in Wyoming. #5 Overall, the United States is sitting on approximately 1.442 trillion barrels of recoverable oil. #6 According to the Institute of Energy Research, the United States has an 88 year supply of natural gas. #7 According to the Institute of Energy Research, the United States has a 169 year supply of oil. #8 According to the Institute of Energy Research, the United States has a 465 year supply of coal. #9 Goldman Sachs is predicting that the United States will be the number one oil producing country in the world by the year 2017. So the bottom line is that we have plenty of energy resources. We do not need to be importing oil from OPEC or anyone else. But just because we are not going to run out of oil, natural gas or coal any time soon does not mean that we should not be developing alternative energy resources. We should definitely be seeking ways to produce energy more cheaply, more cleanly and more efficiently. If America does not end up leading the world in developing new forms of energy, we should be ashamed of ourselves. And right now, the Chinese appear to be way ahead of us as far as thorium energy is concerned, and Italian scientists appear to be ahead of our own scientists in developing " cold fusion" technology. So yes, let's be glad that we are not going to be facing a crippling energy crisis in this generation, but let's also not be complacent. There are lots of new technologies out there just waiting to be developed, and the rewards are going to go to those that are able to develop them first. 
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krisluke
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26-Jul-2013 11:53
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Analysts predict industrial production to shrink 3.8%After 2 months of growth. According to DBS, industrial production (June) due today will likely disappoint. A contraction of 3.8% YoY has been penciled into forecast. That is, after two consecutive months of expansion – output grew 5.0% in Apr13, followed by 2.1% in May - production is expected to fall back to reality. Here's more from DBS: - See more at: http://sbr.com.sg/economy/news/analysts-predict-industrial-production-shrink-38#sthash.KggraRKz.dpuf |
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krisluke
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26-Jul-2013 11:37
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REUTERS/Shannon Stapleton Facebook Inc. CEO Mark Zuckerberg is seen on a screen televised from their headquarters in Menlo Park moments after their IPO launch in New York on May 18, 2012. STOCKS CLIMB, FACEBOOK SURGES: Here's What You Need To Know Markets made some small moves today. But the Nasdaq outperformed thanks to a gigantic move in Facebook shares. First, the scoreboard:
And now, the top stories:
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krisluke
Supreme |
26-Jul-2013 11:29
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Seoul shares rangebound, Samsung Elec dips after results
* Market cautious before FOMC meeting next week
* Samsung Elec shares slip after Q2 results, outlook * Defensive sector, STX outperform SEOUL, July 26 (Reuters) - Seoul shares were flat on Friday with investors cautious ahead of the U.S. Federal Reserve's policy-setting meeting next week, while the market's biggest component Samsung Electronics slipped after posting record second-quarter profit. The Korea Composite Stock Price Index (KOSPI) was up 0.1 percent at 1,911.50 points as of 0135 GMT. " There are not many compelling reasons to buy at the moment, particularly before major financial events including the FOMC meeting next week," said Park Jeong-woo, a market analyst at Samsung Securities. " Profit-taking appetite abounds. Investors are acting more defensively," Park added. Samsung Electronics Co Ltd shares edged 0.5 percent lower in mid-morning trade after posting a record $8.5 billion operating profit. The company is under mounting pressure to produce eye-catching new smartphones after its mobile business shrank 3.5 percent in the second quarter. The company said it expected its average selling prices of smartphones to decline slightly in the third quarter, because of the growing portion of mid-and low-end smartphones. POSCO, the third-biggest share on the main KOSPI, was down 0.9 percent after the company late on Thursday forecast flat second-half profits and warned steel prices would fall further this year due to the economic slowdown in top consumer China. Its earnings were slightly better than analysts' forecasts, despite a 36 percent year-on-year drop in operating profit. But Hyundai Motor Co, the second biggest share on the main KOSPI, rose 0.9 percent, continuing its gains for a third session after reporting forecast-beating earnings an hour before the stock market closed on Thursday. Defensive issues outperformed. Shares in Orion Corp , a snack manufacturer, were up 1.7 percent. Lotte Chilsung Beverage Co Ltd rose 1.1 percent. Shares in ailing STX Group affiliates continued to rally amid expectations for a rescue cash injection. Shares in STX Offshore & Shipbuilding jumped 9.2 percent as creditors were nearing a decision to inject an extra 2.15 trillion won by 2017 to rescue the shipbuilder, according to sources with direct knowledge of the matter. STX Pan Ocean Co Ltd shares spiked 11.2 percent, continuing to be helped by comments from the chairman of its main creditor Korea Development Bank (KDB) on Wednesday that the bank was mulling over an unspecified financial injection into the cash-strapped bulk shipper. Airlines and tour issues held firm as the summer vacation season is expected to peak in August. The prolonged monsoon season is due to end by end-July or early next month. Shares in Korea Air Lines Co Ltd and Hanatour Service Inc both climbed 1 percent. The KOSPI 200 benchmark of core stocks was up 0.02 percent, while the junior KOSDAQ rose 0.45 percent. (Reporting by Jungyoun Park Editing by Jacqeline Wong) |
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krisluke
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26-Jul-2013 11:28
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Nasdaq likes Facebook's surge, but earnings curb Dow, S& P
Times Square, New York
* Facebook's best daily percentage gain boosts Nasdaq * Amazon shares fall on results in extended-hours trading * U.S. jobless claims rise modestly in latest week * Dow up 0.1 pct, S& P 500 up 0.3 pct, Nasdaq up 0.7 pct By Alison Griswold NEW YORK, July 25 (Reuters) - The Nasdaq climbed on Thursday, led by a rally in Facebook a day after its earnings, but the broader market's advance was modest after another round of mixed earnings reports. Facebook Inc shares scored their biggest daily percentage gain ever - soaring 31.6 percent to a session high of $34.88 a day after the online social network company reported a huge jump in mobile advertising revenue. The stock closed at $34.36, up 29.6 percent, and topped the Nasdaq's list of most actively traded names. Disappointing earnings in the cyclical sector limited the gains in both the Dow and the S& P 500. Caterpillar Inc was the biggest drag on the Dow, falling 1.6 percent to $82.14. The stock slid for the second day, extending a selloff that began on Wednesday after the world's largest maker of mining and construction equipment cut its 2013 earnings forecast. General Motors and Dow Chemical reported profits that exceeded expectations, but that was not enough to help the S& P 500 make a big push into positive territory. GM's stock fell 0.2 percent to $37.08, after touching a two-year high of $37.70. Dow Chemical rose 1.8 percent to $34.99. Still, the market managed to advance slightly, with nine of the 10 S& P 500 industry sector indexes ending the day higher. Material and utility shares were the best performers, after being among the weakest in Wednesday's session. " The trend in the market is upward unless there's some active piece of bad news. No news is good news, in that sense," said Brian Gendreau, market strategist with Cetera Financial Group in Gainesville, Florida. " The earnings aren't really surprising anybody. The corporate sector is strong, and the earnings sector is still pretty strong." Shortly after the bell, Starbucks released its third-quarter results and its stock jumped 6.8 percent in extended-hours trading. Starbucks ended the regular session at $68.17, up 2.3 percent. Shares of Amazon.com Inc dropped 2.3 percent in extended-hours trading after the world's largest Internet retailer reported second-quarter earnings and gave a cautious forecast for the third quarter. During regular trading, Amazon's stock rose 1.5 percent to close at $303.40. The Dow Jones Industrial Average rose 13.37 points, or 0.09 percent, to end at 15,555.61. The Standard & Poor's 500 Index added 4.31 points, or 0.26 percent, to 1,690.25. The Nasdaq Composite Index gained 25.59 points, or 0.71 percent, to close at 3,605.19. The major U.S. stock indexes have advanced steadily this year. The S& P 500 has climbed 18.5 percent in 2013 after hitting a number of record closing highs along the way. For July, the benchmark index has added 5.2 percent. With 47 percent of the S& P 500 companies having reported earnings so far, about 68 percent have topped profit forecasts, above the historical average of 63 percent. About 56 percent have reported better-than-expected revenue, a rate that is below the historical average. TripAdvisor Inc shares vaulted 16.3 percent to $71.10 a day after the company reported a jump in quarterly profit and revenue from its travel website. The stock was the S& P 500's second-biggest percentage gainer. Natural gas processor Oneok Inc leaped 25.5 percent to $53.77. The stock was the S& P 500's best performer on the day after the company said it would separate its gas distribution business into a standalone publicly traded company called ONE Gas Inc. On the flip side, homebuilders' shares tumbled and weighed on the S& P 500 after Pulte Group and D.R. Horton reported earnings. Shares of Pulte Group sank 10.3 percent to $16.55, while D.R. Horton's dropped 8.6 percent to $19.38. An index of housing stocks fell 2.5 percent. In the latest economic snapshot, initial claims for U.S. jobless benefits rose to 343,000 in the latest week from 334,000 in the previous week, the Labor Department said. Economists were looking for a read of 340,000. New orders for durable goods rose 4.2 percent in June, far stronger than the forecast for a growth rate of 1.3 percent. About 6.4 billion shares changed hands on U.S. exchanges, on par with the daily average. Advancers outnumbered decliners on the New York Stock Exchange by a ratio of 17 to 13. On the Nasdaq, about two stocks rose for every one that fell. |
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