“For the first time in more than a century, weather has stopped U.S. equity trading for two straight days as Hurricane Sandy swept across New York City. NYSE Euronext (NYX) will this morning test a back-up plan in case its headquarters or trading floor are unable to open tomorrow.”
Comments »Monthly Archives: October 2012
World Wine Output Forecast to Drop 6.1%
The Yen Climbs Despite BoJ Stimulus
The BoJ release a new stimulus program into the economy; however, investors were not impressed and the Yen climb against most of its peer currencies. Not what the BoJ was looking for.
Comments »German Unemployment Rises More Than Expected, Jobless Rate Increases for the First Time in 3 Years
“German unemployment rose twice as much as economists forecast in October and the jobless rate increased for the first time in three years as the sovereign debt crisis damped economic growth and investment.
The number of people out of work climbed a seasonally adjusted 20,000 from September to 2.94 million, the Federal Labor Agency in Nuremberg said today. Economists forecast a gain of 10,000, the median of 31 estimates in a Bloomberg News survey shows. The adjusted jobless rate rose from a two-decade low of 6.8 percent in August to a revised 6.9 percent in September and held there in October, the agency said.”
Comments »Spain’s Bad Bank Proposes Purchasing Bad Real Estate Assets for a 63% Discount
European Markets Rally on Good Earnings Reports
“European stocks rose as companies from BP Plc (BP/) to Deutsche Bank AG (DBK) reported earnings that topped estimates. Asian shares and U.S. futures were little changed as Hurricane Sandy closed New York markets for a second day.
BP, Europe’s second-biggest oil company, gained 5 percent and Deutsche Bank, Germany’s largest lender, advanced 3.8 percent. UBS (UBSN) AG, Switzerland’s biggest bank, jumped to a 15- month high after raising a profitability goal. Danske Bank (DANSKE) A/S tumbled 6.8 percent on plans to sell new shares.”
Comments »$UBS Ups Profit Guidance With a 10k Pink Slip Plan
$BIDU Guides Below Analyst Estimates on a Slowing Global Economy
“Baidu Inc. (BIDU), owner of China’s most- used search engine, forecast the slowest quarterly sales growth in three years, lower than analysts’ estimates, as a weaker economy deters online advertising spending.
Revenue will range from 6.16 billion yuan ($987 million) to 6.35 billion yuan in the fourth quarter, Beijing-based Baidu said in a statement yesterday. That compares with the 6.41 billion-yuan average of 13 analysts’ estimates compiled by Bloomberg.
The top end of the forecast range represents year-on-year sales growth of 42 percent, the slowest pace since the fourth quarter of 2009, when revenue gained 40 percent, according to data compiled by Bloomberg. Slowing economic growth in China is damping demand for online advertising at the same time Baidu is fending off new competition from Qihoo 360 Technology Co. (QIHU), maker of China’s most-used Web browser.”
Comments »Hong Kong Tries for a Fith Time in Two Weeks to Weaken Currency
The Aussie and New Zealand Dollars Rally as Investors Doubt Stimulus Action
“The Australian and New Zealand dollars gained versus most of their major peers as investors pared bets that the countries’ central banks will lower interest rates.
The so-called Aussie and kiwi slid versus the yen after the Bank of Japan (8301) expanded its asset-purchase fund, its main policy tool, by 11 trillion yen ($138 billion) to 66 trillion yen. Demand for the higher-yielding currencies recovered after being limited earlier amid concern Sandy, the super-storm ravaging the American Northeast, will hurt the U.S. economy.
“Our house view is that the RBA will push a rate cut to December,” said Lee Wai Tuck, currency strategist at Forecast Pte in Singapore, referring to the Reserve Bank of Australia. “I’m pretty surprised by the resilience in the Aussie.”
Australia’s dollar climbed 0.3 percent to $1.0364 as of 6:07 p.m. in Sydney and fell 0.1 percent to 82.40 yen. The New Zealand currency added 0.4 percent to 82.20 U.S. cents. It declined as much as 0.6 percent before trading little changed at 65.34 yen.
Overnight index swaps data compiled by Bloomberg showed traders estimate there is a 59 percent that the RBA will cut its key rate to 3 percent from 3.25 percent at its Nov. 6 meeting, compared with a 64 percent probability yesterday. The odds for New Zealand’s central bank to lower its benchmark, currently held at 2.5 percent, in December by the same amount fell to 14 percent from 18 percent.”
Comments »Singapore Downgrades Growth Prospects as Price Pressures Rise
“Singapore’s economy will grow at below-potential levels for a second year in 2013 even as a tight labor market and rising costs of goods and services add to inflationary pressures, the central bank said.
The island’s pace of growth “slowed discernibly” in the past two quarters, and external demand is expected to remain “tepid and volatile” next year, the Monetary Authority of Singapore said in a twice-yearly review today. Gross domestic product may increase 1.5 percent to 2.5 percent this year, it said, reiterating a previous forecast. It didn’t give a prediction for 2013 growth.
“While the global economy should be relatively less volatile next year, its growth momentum is unlikely to pick up significantly as the deleveraging process in the advanced economies will be protracted,” the monetary authority said. “As such, Singapore could see its second consecutive year of below-potential growth in 2013.”
Comments »More on 147.0 BoJ Stimulus Program
“The Bank of Japan expanded its asset-purchase program for the second time in two months, a move that failed to cheer investors as stocks slumped amid mounting evidence that the economy contracted last quarter.
The fund will increase by 11 trillion yen ($138 billion) to 66 trillion yen while a separate credit loan program will stay at 25 trillion yen, the bank said in Tokyo, acting hours after data showed the biggest decline in industrial output since last year’s earthquake. The BOJ will also offer unlimited loans to banks to boost credit demand.”
Comments »Asia Pares Losses as the BoJ Adds New Stimulus to the Economy
“Most Asian stocks fell after the Bank of Japan’s expansion of its asset-purchase program failed to allay concern economic growth in the world’s third-largest economy is waning. Hurricane Sandy forced U.S. markets to shut for a second day.”
Comments »Sandy Shuts Down Refineries Sending Black Gold For a Bounce Above Four Month Lows
“Oil rose from a four-month low in New York as better-than-expected company earnings bolstered confidence that economic recovery will support fuel demand.
West Texas Intermediate crude climbed as much as 0.8 percent as European equities advanced after results from BP Plc (BP/) and Deutsche Bank AG beat analyst estimates. Prices fell earlier after Phillips 66, Hess Corp. (HES), NuStar Energy LP (NS) and PBF Energy Inc. reduced refinery operations on the U.S. East Coast because of Atlantic storm Sandy. Gasoline traded near a two-week high because of the storm’s disruptions to supply.
“We do not see much downside risk for oil demand,” said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas SA in London. The impact of Sandy is “mildly bearish” for crude prices, he said.”
Comments »Sans Nikkei Global Markets Trade Higher, U.S. Futures are Flat
InstaSnopes: Sorting the Real Sandy Photos from the Fakes
With Hurricane Sandy approaching the New York metro area, the nation’s eyes are turning to its largest city. Photos of storms and flooding are popping up all over Twitter, and while many are real, some of them — especially the really eye-popping ones — are fake.
AERIAL PHOTO: HUNDREDS OF AMBULANCES OUTSIDE NYU HOSPITAL ASSISTING WITH THE TRANSPORT
Times Square, Post-Sandy
The New York Stock Exchange Is Not Flooded
Comments »Earlier media reports that the floor of the New York Stock Exchange is flooded under three feet of water are totally false.
