symbol
stringlengths 1
9
| title
stringlengths 1
701
| text
stringlengths 1
140k
|
|---|---|---|
C | Nikkei Lower Despite The Newly Announced Stimulus Plan | Asian trade Asian markets and U S futures are trading under the break even line after a number of companies had their ratings cut lower Furthermore the Nikkei is trading in the red despite the newly announced stimulus plan In Asia the Nikkei fell 94 95 points 1 10 to 8 572 28 while the Australian S P Asx slipped 4 20 points 0 12 to 3 577 00 U S markets also closed lower having the S P lose 19 14 points 2 12 to 885 28 and the Dow Jones shed 291 35 points 2 49 to 8 604 99 Moody s cut Citigroup s debt rating two grades lower yesterday The bank s rating was reduced from A2 from Aa3 on concerns about future earnings In the same time Standard and Poor announced a negative outlook for GE with full chances of loosing its AAA rating in the following quarters The main reason was that GE s earning prospects strongly diminished in the last few months affecting its money flows The Japanese Government decided to buy around 220 billion of bank shares in order to support the economy and more specially to support the financial system The Government will inject another 100 billion in the bank s balance sheets to increase liquidity The two measures announced are part of a 650 billion stimulus plan that will help the Japanese financial system survive the credit crisis However these days timing is almost everything If these measures are implemented too late it could have minimal effect for the financial system Crude oil declined even though OPEC announced a cut in production Crude oil for January delivery fell 0 20 to 42 20 Gold snapped a three day rally on dollar strength Bullion for immediate delivery fell 1 60 to 849 75 Previous Wall Street trade U S equity markets declined for a second day after ratings company Standard Poor s cut its outlook on General Electric to negative on concern that dwindling earnings at its financial unit may force a credit downgrade The S P s negative outlook for GE is not the same thing as being put on a credit watch but it does mean the rating agency sees a one in three chance that an actual credit rating downgrade could happen over the next three years Shares in GE plunged 8 22 for the day Meanwhile the dollar roared against most major currencies on concerns it may have declined too far over the last several weeks The greenback had declined about 11 against a basket of its trading partners since reaching a mult year high on Nov 21 Previous European trade In Europe the U K Ftse rose 6 47 points 0 15 to 4 330 66 while the German Dax rose 48 02 points 1 02 to 4 756 40 |
C | Deflation May Be The Next Problem | Current Futures Dow 35 00 S P 4 00 NASDAQ 6 50 European Trade Asian markets closed the trading session lower while European markets are continuing the trend and are trading in negative territory Currently U S futures are pointing to a weaker start on Wall Street It seems that the strong declines in the energy market mostly in the crude oil market are dragging the overnight markets lower Oil plunged to a 4 year low yesterday even though the dollar strengthened and OPEC said it would cut production Oil is currently trading at 36 per barrel falling over 75 from the top reached earlier this year in July The strong declines have raised new fears in the financial markets At the start of the year inflation seemed to be a big problem now deflation is becoming an even greater one The strong declines in the oil market together with weak consumption are driving the CPI reads lower globally This means that only by holding money will their value increase something that does not happen in a normal working economy As such consumers are encouraged to further delay their expenditures because goods will become less expensive as the real value of money increases Another side effect of deflation is that investors are less willing to invest since only holding money would have a profitable outcome considering all of the risks It is highly desirable that such side effects be avoided at all costs in the current economic environment In Asia the Nikkei fell 78 71 points 0 91 to 8 588 52 while the Australian S P Asx gained 34 50 points 0 96 to 3 615 70 In Europe the Ftse fell 51 71 points 1 19 to 4 278 95 while the German Dax loss 34 95 points 0 73 to 4 721 45 The biggest declines in the overnight markets were seen in the commodity stocks Crude oil fell to a four year low on Thursday Overnight crude oil for January delivery rose 0 10 to 36 30 Gold snapped a three day rally on dollar strength Bullion for immediate delivery fell 7 05 to 844 25 Previous Asian trade Asian markets and U S futures are trading under the break even line after a number of companies had their ratings cut lower Furthermore the Nikkei is trading in the red despite the newly announced stimulus plan Moody s cut Citigroup s debt rating two grades lower yesterday The bank s rating was reduced from A2 from Aa3 on concerns about future earnings In the same time Standard and Poor announced a negative outlook for GE with full chances of loosing its AAA rating in the following quarters The main reason was that GE s earning prospects strongly diminished in the last few months affecting its money flows The Japanese Government decided to buy around 220 billion of bank shares in order to support the economy and more specially to support the financial system The Government will inject another 100 billion in the bank s balance sheets to increase liquidity The two measures announced are part of a 650 billion stimulus plan that will help the Japanese financial system survive the credit crisis However these days timing is almost everything If these measures are implemented too late it could have minimal effect for the financial system |
C | 2008 in Numbers | Current Futures Dow 30 00 S P 4 40 NASDAQ 2 75 European Trade Equity markets opened for the last day of 2008 which has been a terrible year for stock traders Even though in the last few months the major indexes have risen a few points the MSCI World Index finishes the year down 40 Equity markets were shaken this year by huge bankruptcies such as Lehman and Bear Sterns and by a ponzi scheme that seems to haunt the financial markets every few years However the prompt government and central banks interventions helped the markets stabilize in the last few months of 2008 avoiding any further losses and other huge bankruptcies that might have just been delayed until 2009 A Bloomberg report shows that out of the 89 major indexes only 3 finished the year posting gains Ghana was the best performing market of 2008 gaining 60 after an offshore oil deposit was discovered Ghana s GDP was 15 billion in 2007 compared with the 40 billion Citigroup had to write down in 2008 Bonds were the clear winners in 2008 returning the most in the last decade U S Government issued debt returned nearly 15 this year while the yield on treasuries fell to the lowest point on record even being negative for a short period of time It is said that the credit crisis erased 30 billion in market value while banks write downs approached 1 trillion in 2008 Now beat that 2009 Crude oil is back under the 40 dollar benchmark Crude oil for January delivery fell 0 50 to 38 30 Gold bounced off the high reached one day earlier Bullion for immediate delivery lost 7 70 to 867 40Previous Asian trade Asian equity markets opened for trading advanced tonight in line with the U S markets as the financial division of GM GMAC received a substantial bailout The GMAC s bailout package adds to the efforts made by the U S administration to save the car industry With the 6 billion bailout money the bank would be able to further finance loans for new cars helping the car industry GMAC rose 20 as the news went public Also yesterday a report showed that consumer confidence dropped to a new record low while the price for homes measured by the S P Case Schiller report continued to tumble On average house prices are down an average of 18 in October while some areas such as Las Vegas and Phoenix house prices are down by 30 from one year earlier |
C | UPDATE 3 Singapore recession deepens govt cuts 09 outlook | Adds house price data
By Kevin Lim
SINGAPORE Jan 2 Reuters Singapore s recession deepened
in the fourth quarter as the global financial crisis took its
toll on manufacturers and the services sector and the
government warned the economy may shrink by as much as 2
percent this year The economy contracted at a seasonally
adjusted annualised pace of 12 5 percent during the
October December quarter following a revised 5 4 percent
decline in July September data showed on Friday
It was the third consecutive quarter of decline in gross
domestic product and was worse than the most pessimistic
forecast of nine economists polled by Reuters which was for a
decline of 8 6 percent
The government now expects Singapore s GDP to come in
between a decline of 2 percent and growth of 1 percent in 2009
lower than the previous forecast of 1 percent to 2 percent
made in November
But some economists are predicting an even deeper
recession If we are correct 2009 will mark the most
severe recession in Singapore s history surpassing the Asian
Financial Crisis when GDP contracted 1 4 percent and the 2001
tech recession said Citigroup economist Kit Wei Zheng who
predicts the economy would shrink 2 8 percent in 2009
This sets the stage for more aggressive fiscal stimulus on
the Jan 22 budget and further monetary easing by MAS the
Monetary Authority of Singapore in April or even before
Singapore which became in independent country in 1965
last reported a fall in annual GDP back in 2001 when the
economy shrank 2 4 percent after being hit by the collapse of
the dotcom bubble
The economy grew 1 5 percent for all of 2008 compared with
7 7 percent in 2007
From a year ago fourth quarter GDP fell 2 6 percent
following a drop of 0 3 percent in the third quarter advance
estimates from the Ministry of Trade and Industry MTI showed
WEAKENING DOMESTIC DEMAND
Activity in the manufacturing sector shrank 9 percent in
the fourth quarter from a year ago while year on year growth
in the construction and services sectors slowed to 13 3 percent
and 1 1 percent respectively from 18 6 percent and 5 3
percent in the third quarter
What is worrying is that the weakness has spread rapidly
from the externally oriented sectors eg manufacturing
tourism to domestically oriented sectors too analysts at
OCBC Bank said in a note to clients
The speed of the growth deceleration in Q4 2008 is
somewhat disconcerting for construction and especially
services which does portend a growing risk that their
respective 2009 growth forecasts may need to be revised
downwards
Singapore reports advance GDP data based largely on
information from the first two months of the quarter and
follows up with detailed GDP numbers for the period about five
to six weeks later
Reflecting the slowdown separate data showed private home
prices fell 5 7 percent in the fourth quarter worsening from a
drop of 2 4 in the preceding period
Prime Minister Lee Hsien Loong warned in his New Year
message on Wednesday that the global financial crisis had hit
the city state of 4 8 million people hard and that the
economic outlook was uncertain
We must therefore prepare for a difficult year ahead and
especially the first half of 2009 Our economy will probably
contract further he said
Additional reporting by Saeed Azhar
Editing by Kazunori Takada |
C | UPDATE 2 German output plunges worst post war recession looms | Adds details background comment
By Dave Graham
BERLIN Jan 9 Reuters German industrial output in
November posted its biggest annual fall in 1 1 2 decades
dragged down by a sharp downturn among manufacturers that is
threatening to cause the worst recession in the country s
post war history
Preliminary Economy Ministry figures on Friday showed output
fell by 10 percent year on year as demand for cars and other
capital goods faded across the globe This was the biggest fall
since 1993 according to the Federal Statistics Office
Analysts spoke of a collapse in German manufacturing and
the latest round of weak data are expected to put more pressure
on the European Central Bank to cut its main lending rate again
next week from the current level of 2 5 percent
We re at the start of a really deep recession said
Juergen Michels an economist at Citigroup in London Our basis
scenario for gross domestic product in 2009 is a contraction of
1 5 percent But it could be down by up to 5 percent
Compared with the previous month output fell by 3 1 percent
in seasonally adjusted terms This was bigger than the decline
of 2 0 percent that had been forecast in a Reuters poll
Since World War Two German gross domestic product GDP has
never contracted by as much as one percent over a full year but
more and more analysts are saying the economy is likely to
shrink by much more than that this year
A senior government source told Reuters on Friday Chancellor
Angela Merkel s government believes the economy shrank by around
1 5 to 2 0 percent during the final quarter of 2008
This would be the biggest contraction since Germany
reunified in 1990 according to Bundesbank figures
UNEMPLOYMENT RISING
One ray of light has been consumer spending which has so
far held up relatively well during the economic crisis
Data earlier on Friday showed German retail sales rose by
0 7 percent on the month in November and likely increased in
December too according to the Federal Statistics Office
However with unemployment rising for the first time in
nearly three years in December many economists believe sales
could weaken in the course of this year as the manufacturing
slump starts to leave its mark on the job market
The Economy Ministry s figures showed that manufacturing
output fell by 3 5 percent on the month and energy production
by 0 2 percent Construction output was unchanged
Manufacturing orders have fallen steeply since late last
year In the November October period orders were down by nearly
a quarter from the same two months a year earlier
Many famous names in German industry have been hit hard
German carmaker BMW said on Friday its group sales
fell by more than 26 percent on the year in December
A range of leading manufacturers among them big carmakers
have announced cuts to production and temporary shutdowns due
to weakness in demand both at home and abroad
Some carmakers had announced longer Christmas holidays and
that ll be reflected in December and January data so the
weakness will continue said Michels at Citigroup
The Economy Ministry said due to the decline in orders
output was likely to stay negative in coming months
Writing by Dave Graham additional reporting by Rene Wagner
Paul Carrel Madeline Chambers and Kerstin Gehmlich |
WMB | Murray to make singles return in Cincinnati | Reuters Andy Murray will return to singles action at the Cincinnati Open starting on Saturday after accepting a wildcard Britain s former world number one said on Friday
The 32 year old three time Grand Slam champion has not played singles since losing in the Australian Open first round in January to Spain s Roberto Bautista Agut after which he had hip resurfacing surgery in a bid to salvage his career
That feeling when you accept a wildcard for the singles in Cinci LetsDoThis HereWeGo Murray said in a brief post on Facebook NASDAQ FB that had a picture of him celebrating a point
Murray returned to doubles action at Queen s Club this year winning the title with Spain s Feliciano Lopez and also played mixed doubles with Serena Williams NYSE WMB and men s doubles with Frenchman Pierre Hugues Herbert at Wimbledon
The draw ceremony at Cincinnati will be held later on Friday with the main draw set to begin on Sunday |
WMB | Trump administration moves to limit state powers to block pipelines terminals | By Valerie Volcovici WASHINGTON Reuters The Trump administration on Friday unveiled a proposal that would curb state powers to block pipelines and other energy projects part of the Trump administration s effort to boost domestic oil gas and coal development The U S Environmental Protection Agency move drew swift criticism from New York s governor and an organization representing progressive states It comes four months after President Donald Trump ordered the EPA to change a section of the U S Clean Water Act that states like New York and Washington have used to delay pipelines and terminals When implemented this proposal will streamline the process for constructing new energy infrastructure projects that are good for American families American workers and the American economy EPA Administrator Andrew Wheeler said in a press release announcing the move The EPA s proposal is centered on changes to Section 401 of the Clean Water Act which allows states and tribes to block energy projects on environmental grounds it said In its 163 page proposal the EPA said a section 401 review must be limited to considerations of water quality Trump and EPA chief Andrew Wheeler have accused some states of denying permits for reasons that go beyond water protection such as climate change impacts The proposal says a state or authorized tribe must act on a section 401 certification request within a reasonable period of time which shall not exceed one year in an effort to speed up the permitting process The Trump administration has criticized New York for its decision to delay and block an interstate gas pipeline Williams NYSE WMB Cos Inc s Constitution line from Pennsylvania accusing the state of creating bottlenecks and supply disruptions New York Governor Andrew Cuomo called the EPA s proposal hostile It is a gross overreach of federal authority that undermines New York s ability to protect our water quality and our environment he said in a statement It s a hypocritical double standard said David Hayes director of the State Energy and Environmental Impact Center part of the New York University Law School which coordinates policy with state attorneys general He said the proposal runs counter to the administration s promises to support so called cooperative federalism that gives states broad authority to decide policy The Trump administration gives lip service to cooperative federalism but it practices fair weather federalism he said In 2017 Washington Governor Jay Inslee a Democrat and 2020 candidate for president used the 401 provision to block a permit for the Millennium Bulk Terminal a coal export facility that would have expanded the ability of companies to send Western coal to Asian markets
Inslee said in April that Trump s executive orders to weaken state powers would put the country on a fatal path of unconstrained fossil fuel use and hold back clean energy development |
WMB | Canadian Andreescu stuns Pliskova to reach Toronto semis | By Frank Pingue TORONTO Reuters Serena Williams NYSE WMB moved into the Rogers Cup semi final with a 6 3 6 4 victory over Naomi Osaka on Friday in their first meeting since the American s infamous row with an umpire overshadowed last year s U S Open final Unlike the at Flushing Meadows last year where Osaka won her first Grand Slam title there were no fiery exchanges with the umpire no smashed rackets no point or game penalties just a rock solid performance from Williams The 37 year old is looking to shore up her hardcourt game for the Aug 26 Sept 8 U S Open where she will chase a record tying 24th career Grand Slam title Williams who had slow starts in her previous two outings this week came out much stronger for this one and delivered a serving masterclass that denied Osaka any break point opportunities The match played in windy conditions stayed on serve until Williams broke in the eighth game and the three times champion went on to serve out the set She struck earlier in the second set with a break in the third game to go ahead 2 1 and never looked back as she went on to secure he first career victory from three career meetings with Osaka We haven t played since New York which was a really good match for her and I just wanted to come out and try to win a set this time because she s beaten me twice so I just wanted to do the best I could today Williams said in an on court interview There was a scary moment in the second set when the American ran into the net post while trying to chase down an Osaka drop shot but despite nursing her right arm Williams confirmed that no serious damage had been done It burns she said But you know as an athlete you got to take the hits and keep going So I was just was like I gotta keep going Up next for Williams will be the winner of the late match between holder Simona Halep and Czech qualifier Marie Bouzkova In earlier quarter final action Canadian teenager Bianca Andreescu coped with leg pain to keep her dream run alive with a 6 0 2 6 6 4 upset of Czech third seed Karolina Pliskova Andreescu looked to be in trouble when she gingerly returned to the court from a medical timeout late in the second set with her right thigh heavily taped and her movement hampered But the 19 year old who shot to prominence with her Indian Wells triumph in March went toe to toe with her more experienced opponent to win by serving out to love When I step out on the court I m fearless I show no mercy no matter who I play and I think that s showing a lot said Andreescu Pliskova s loss was good news for Osaka who will now replace Ash Barty as world number one when the new rankings are issued on Monday
Up next for Andreescu will be unseeded American Sofia Kenin who extended her impressive Toronto run with a 7 6 2 6 4 win over Ukrainian former champion Elina Svitolina |
WMB | Canadian teenager Andreescu reaches Toronto final | By Frank Pingue TORONTO Reuters Serena Williams NYSE WMB rallied to avoid a stunning upset and secure a 1 6 6 3 6 3 semi final win over Czech qualifier Marie Bouzkova at the Rogers Cup on Saturday setting up a title showdown with local teenager Bianca Andreescu Williams was in a battle from the outset against the 21 year old Czech who showed no nerves despite playing her first WTA semi final against a player who was her role model growing up Bouzkova quickly went up a double break for a 4 1 lead and sealed the first set in 29 minutes but Williams quickly made the necessary adjustments and got her first break of the match to go ahead 4 3 in the second before forcing a decider The consistency that Bouzkova displayed early in the match suddenly started to fade and when Williams broke to go ahead 3 1 in the third set it all but brought an end to the Czech s impressive Toronto run She just did everything well she had a really good game plan and she was moving great said Williams I just had to make some adjustments mostly mentally to stay positive Bouzkova s week included wins over 2017 U S Open champion Sloane Stephens former French Open winner Jelena Ostapenko and a clash with Wimbledon champion Simona Halep who retired hurt after dropping the first set of their quarter final Williams arrived in Toronto hoping to get plenty of hardcourt matches in before going for a record equaling 24th career Grand Slam title at the Aug 26 Sept 8 U S Open Up next in her bid for a first title since returning to competition in 2018 after the birth of her daughter will be Canadian 19 year old Andreescu who beat American Sofia Kenin 6 4 7 6 5 in the other semi final Andreescu who shot to prominence with her Indian Wells triumph in March extended her dream run to become the first Canadian woman to reach the final of the tournament since 1969 For Andreescu who is competing for the first time since withdrawing from the French Open with a shoulder injury the win was her first two set victory all week after having spent more time on court than any other player I ve been through so much the past two months and all I can say is I m so happy to be back on court an emotional Andreescu said on court
I m glad it was two sets today but it wasn t easy I was so so nervous and I just felt like crying after because I m just so happy I d say this is even bigger than winning Indian Wells |
WMB | Democratic 2020 contenders condemn Trump for spreading Epstein conspiracy theories | By John Whitesides WASHINGTON Reuters Democratic presidential contenders Beto O Rourke and Cory Booker slammed U S President Donald Trump on Sunday for promoting unfounded conspiracy theories about the apparent suicide of disgraced financier Jeffrey Epstein in his New York jail cell After the death on Saturday of Epstein a millionaire charged with sex trafficking who once counted Trump and former President Bill Clinton as friends Trump retweeted a baseless claim from a conservative comedian that Clinton was involved in the death This is another example of our president using this position of public trust to attack his political enemies with unfounded conspiracy theories O Rourke a former congressman from Texas said on CNN s State of the Union O Rourke said Trump was trying to shift the public s focus away from last weekend s two deadly mass shootings in El Paso Texas and Dayton Ohio which have led to new calls for gun restrictions and criticism of Trump s divisive anti immigrant and racially charged rhetoric He s changing the conversation and if we allow him to do that then we will never be able to focus on the true problems of which he is a part O Rourke said from his hometown of El Paso Booker a U S senator from New Jersey said Trump s retweet was just more recklessness He is giving life to not just conspiracy theories but really whipping people up into anger and worse against different people in this country he said on CNN The FBI and the Department of Justice s Inspector General have opened investigations into the death of Epstein who a source said had been taken off suicide watch Last month Epstein was found unconscious on the floor of his jail cell with marks on his neck and officials were investigating that incident as a possible suicide or assault U S Attorney General William Barr said he was appalled to learn of the apparent suicide in federal custody Mr Epstein s death raises serious questions that must be answered Barr said in a statement on Saturday Alexandria Ocasio Cortez a Democratic congresswoman from New York City and a leading progressive voice tweeted We need answers Lots of them White House senior adviser Kellyanne Conway said investigation of Epstein should continue despite his death Jeffrey Epstein has done some very bad things over a number of years so let s continue to investigate that she said on Fox News Sunday I don t think that somebody s crimes and the accountability for that necessarily perish with them More than a decade ago Epstein pleaded guilty in Florida to state charges of solicitation of prostitution from a minor in a deal with prosecutors that has been widely criticized as too lenient Then in July Epstein was indicted federal prosecutors in New York accusing him of knowingly recruiting underage women to engage in sex acts with him sometimes over a period of years while paying the women for each encounter He pleaded not guilty O Rourke and Booker are among two dozen candidates seeking the Democratic nomination to challenge Republican Trump for the White House in 2020 Nearly all of those Democrats have condemned Trump s incendiary rhetoric for inflaming racial tensions and anger We ve seen people s lives being threatened because this president whips up hatred This is a very dangerous president that we have now Booker said Trump had retweeted on Saturday a message from conservative comedian and commentator Terrence K Williams NYSE WMB who said in part that Epstein had information on Bill Clinton now he s dead Clinton spokesman Angel Urena blasted Trump for making the suggestion Ridiculous and of course not true and Donald Trump knows it Has he triggered the 25th Amendment yet he said referring to the procedures for replacing the president in event of removal or incapacitation Trump has a history of promoting conspiracy theories about political rivals Even before he was a presidential candidate Trump repeatedly questioned whether former President Barack Obama was born in the United States even after Obama produced a birth certificate proving that he was
During the Republican presidential nomination race in 2016 Trump spread an unfounded conspiracy theory linking the father of rival U S Senator Ted Cruz to the assassination of former President John Kennedy a claim Cruz denounced as a lie |
WMB | Serena retires injured in Toronto final against Andreescu | By Frank Pingue TORONTO Reuters Serena Williams first U S Open tune up ended in dramatic fashion as the tearful American was forced to retire with a back injury while trailing Canadian teenager Bianca Andreescu 3 1 in the Rogers Cup final on Sunday Williams NYSE WMB who hopes to chase a record equaling 24th career Grand Slam title at the U S Open seemed fine on court but suddenly sat crying in her chair before deciding to retire 19 minutes into the match with back spasms I m sorry I couldn t do it today I tried but I just couldn t do it an emotional Williams who struggled to get the words out told the crowd It s been a tough year but we ll keep going Andreescu consolidated an early break to move 3 1 up at which point Williams went to her chair where she called for the trainer and broke down in tears Williams said the spasms began during her three set semi final win over Czech Marie Bouzkova on Saturday They got so bad that she was unable to sleep and could not really move but she added that she at least wanted to try and play the final I was just trying to figure out how do you play a match where you have no rotation said Williams And I don t want to get this far and not at least try I think I would have really regretted not at least going out there and seeing maybe if a miracle happened The 37 year old Williams whose competitive action this year has been severely limited because of knee issues declared herself pain free ahead of the tournament which she was hoping to use as a springboard for the rest of her hardcourt swing But the six times U S Open champion still without a title since returning from maternity leave in 2018 now faces her latest injury setback with the year s final Grand Slam just two weeks away Williams who is due to compete in Cincinnati next week said she has experienced back spasms a lot in her career and that if this latest episode plays out like those before she does not expect it to keep her out of any events They re incredibly painful but it goes away after like 24 36 maybe 48 hours and like clockwork said Williams In that first phase it is incredibly painful to a point where I usually don t get out of bed So if it s what typically happens I will be fine but I have to wait and see As Williams sat dejected in her chair Andreescu who is no stranger to injury setbacks went over to console her The pair embraced and had a heartfelt conversation Andreescu who shot to prominence with her Indian Wells triumph in March and was competing this week for the first time since withdrawing from the French Open with a shoulder injury is the first Canadian to win the event in 50 years I feel for Serena so much I ve been through so much the last year with injury so I am so sorry she had to go out this way the 19 year old said during the trophy ceremony
Sometimes you can t push your body and she couldn t today and I wish her a fast recovery |
WMB | NFL notebook Steelers WR coach Drake dies at 62 | The Pittsburgh Steelers are mourning the loss of wide receivers coach Darryl Drake who died Sunday morning
Drake who joined the Steelers in 2018 was 62 No information about the cause of his death was available
Team owner Art Rooney issued a statement honoring Drake on Sunday morning
We are at a loss for words following Darryl Drake s passing this morning it begins Darryl had such an impact on the players he coached and everyone he worked with throughout his entire career He was a passionate coach and had a tremendous spirit toward life his family his faith and the game of football
The New York Jets were forced to find a replacement after kicker Chandler Catanzaro announced his retirement
The 28 year old Catanzaro missed two of three extra point tries in the Jets preseason opener on Thursday He was the only kicker in camp so the Jets signed free agent Taylor Bertolet after a tryout
Catanzaro entered the league with the Arizona Cardinals in 2014 and spent three seasons there He spent the next season with the Jets before splitting the 2018 between with the Tampa Bay Buccaneers and Carolina Panthers
Ron Minegar the executive vice president and COO of the Arizona Cardinals was arrested on suspicion of DUI
Ron Minegar s actions last night are inexcusable the team said in a statement He made the decision to drive after drinking alcohol and is fortunate that he was pulled over before injuring anyone or himself According to MADD drunk driving results in almost 11 000 deaths per year and is the number one cause of fatalities on roadways We fully recognize the seriousness of these actions and they will have serious consequences
It is the second straight summer that a Cardinals executive has been arrested on a drunk driving charge Last July the team suspended general manager Steve Keim for five weeks and fined him 200 000 after he entered a guilty plea to extreme DUI
The Baltimore Ravens traded kicker punter Kaare Vedvik to the Minnesota Vikings
The Ravens said they are receiving an undisclosed draft pick in exchange ESPN s Adam Schefter reported it was a 2020 fifth round pick
Several teams had contacted the Ravens about Vedvik after the 25 year old Norwegian drilled four field goals including a 55 yarder in Thursday s preseason opener against Jacksonville Baltimore already has Justin Tucker the most accurate kicker in NFL history Dan Bailey is currently the kicker in Minnesota
Denver Broncos running back Theo Riddick will be out six to eight weeks with a slight shoulder fracture according to a report
Mike Kils of 9News in Denver said Riddick sustained the injury Thursday in the Broncos preseason game against the Seattle Seahawks He said surgery won t be required
The Broncos signed Riddick to a one year deal for 2 5 million with 1 million guaranteed just a week ago after the Detroit Lions released him
New York Jets cornerback Trumaine Johnson injured a hamstring in practice and will be sidelined indefinitely
The 29 year old veteran apparently suffered the injury on a long interception return
Anytime a guy that makes a living has a hamstring we ll see how it goes coach Adam Gase said per ESPN He s going to have to get a lot of treatment and strengthen it up and we ll get him back as fast as possible
San Francisco 49ers tackle Shon Coleman had surgery to repair a broken fibula and dislocated ankle suffered in Saturday s preseason opener against Dallas
Coleman 27 was injured in the first quarter and left the game on a cart with an air cast around his lower right leg
A third round pick of the Cleveland Browns in 2016 Coleman was traded to the 49ers in August 2018 He appeared in 23 games for the Browns including 16 starts in 2017 and was expected to be the 49ers swing tackle behind starters Joe Staley and Mike McGlinchey this season
The Cardinals activated tight end Charles Clay and cornerback Brandon Williams NYSE WMB from the physically unable to perform list
Clay was sidelined with a knee injury and Williams has been dealing with a back issue The moves leave only offensive lineman Max Garcia knee on Arizona s PUP list
Clay 30 signed a one year contract with the Cardinals in February after four seasons with the Miami Dolphins 2011 14 and four with the Buffalo Bills 2015 18 He caught 21 passes for 184 yards in 13 games in 2018 and has 339 career receptions for 3 631 yards and 23 touchdowns in 112 games
The Cleveland Browns signed tight end Rico Gathers and released tight end fullback Orson Charles
The Dallas Cowboys who selected Gathers in the sixth round of the 2016 NFL Draft waived him earlier this week
Gathers played college basketball at Baylor and the Cowboys drafted him in hopes he d become the next Antonio Gates who turned into an All Pro with the Chargers franchise after a basketball career at Kent State But in three years in Dallas Gathers caught just three passes for 45 yards
Field Level Media |
WMB | Murray ready to go it alone in Cincinnati | Reuters Andy Murray has sharpened his game on the practice courts with some of the best players in the world but the Scot says now is the time to really test himself with a return to singles action at the Cincinnati Masters
Murray had hip resurfacing surgery in January in a bid to salvage his career and eased himself back into competitive action in doubles play
The 32 year old is now ready to go it alone and will face Frenchman Richard Gasquet on Monday in what will be his first singles match since losing in the Australian Open first round to Spain s Roberto Bautista Agut seven months ago
The performances against top singles players in practises have been good said the three times Grand Slam winner whose world ranking has slipped to No 325
But at some stage you have to take the step to try and play The quickest way to get up to speed is by being on the practice and match court with top players the ATP Tour s website quoted him as saying
Now with a metal covering on part of his hip Murray says he is pain free but knows it will take time to regain his agility and movement around the court
I m not expecting to move as well I used to but I think I can move better than I am now he said at a news conference That will take some time since I only started playing singles a couple of weeks ago
When you re playing at the highest level against the best players they hit the ball big and that takes some time to get used to
Murray said he taken inspiration from doubles player Bob Bryan who made a successful return from hip surgery
I probably would have had the operation regardless he said But I m not sure I would have tried to play if I hadn t seen what he had done and heard everything he told me about He s been brilliant
Murray returned to doubles play in June winning the Queen s Club title with partner Feliciano Lopez who he also partnered to the last 16 in Montreal last week and will team up with again in Cincinnati
Murray who also played mixed doubles with Serena Williams NYSE WMB at Wimbledon would go against fourth seed Dominic Thiem in the second round if he gets by Gasquet
You realize getting back to singles is a hard thing to do because you re at the mercy of the draws a lot of the time Murray said I ll just deal with it as it comes but hopefully it makes for some exciting early rounds |
BMY | Celldex CLDX Posts Narrower Q2 Loss Focus On Pipeline | Celldex Therapeutics Inc NASDAQ CLDX reported a second quarter 2016 loss of 32 cents per share narrower than the Zacks Consensus Estimate and the year ago loss of 33 cents per share Total revenues in the second quarter of 2016 declined 36 2 year over year to 1 4 million but were in line with the Zacks Consensus Estimate Revenues are mainly generated under the company s clinical trial collaboration with Bristol Myers Squibb Company NYSE BMY and its research and development agreement with Rockefeller University Research and development expenses declined 3 from the year ago period to 25 7 million reflecting lower clinical costs partially offset by higher contract manufacturing costs and personnel costs including higher stock based compensation expense General and administrative spend declined 4 9 to 7 8 million reflecting lower commercial planning costs partially offset by higher stock based compensation expense Celldex is currently conducting a phase IIb study on glembatumumab vedotin its most advanced pipeline candidate in patients with metastatic triple negative breast cancers that overexpress gpNMB The candidate is also in a phase II single agent study in metastatic melanoma with data to be presented at the European Society for Medical Oncology ESMO Congress in Oct 2016 the study met its primary endpoint The candidate is being evaluated in several other studies as well Meanwhile varlilumab is being evaluated in combination with Bristol Myers Opdivo in a study that includes cohorts in advanced non small cell lung cancer colorectal cancer ovarian cancer head and neck squamous cell carcinoma renal cell carcinoma and glioblastoma Varlilumab is also being evaluated in combination with Roche s OTC RHHBY Tecentriq atezolizumab in a phase I II study for multiple solid tumors The phase II portion of the study in renal cell carcinoma will commence in the third quarter Varlilumab is being evaluated in several other combination studies as well 2017 should be a catalyst rich year for the company as data from several glembatumumab vedotin and varlilumab programs are reported Celldex expects that its cash cash equivalents and marketable securities plus anticipated proceeds from future sales of its common stock under a 60 million sales agreement will be enough to fund working capital requirements and planned operations through 2018 CELLDEX THERAPT Price Consensus and EPS Surprise Celldex is a Zacks Rank 3 Hold stock ANI Pharmaceuticals Inc NASDAQ ANIP is a better ranked stock in the health care sector carrying a Zacks Rank 1 Strong Buy Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 Days |
WMB | 6 Stocks To Watch For The May 22 Trading Session | Index Futures Net Changes and Settlements
Foreign Markets Fair Value and Volume
In Asia 6 out of 11 markets closed higher Shanghai Comp 0 49 Hang Seng 0 18 Nikkei 0 05
In Europe 10 out of 13 markets closed lower CAC 0 37 DAX 0 27 FTSE 0 11
Fair Value S P 1 25 NASDAQ 9 48 Dow 6 72
Total Volume 1 27 million ESM 227 SPM traded in the pit
As of 7 00 a m CST
Today s Economic Calendar
Today s economic calendar includes James Bullard Speaks 1 00 AM ET MBA Mortgage Applications 7 00 AM ET John Williams NYSE WMB Speaks 10 00 AM ET Raphael Bostic Speaks 10 10 AM ET Robert Kaplan Speaks 10 15 AM ET EIA Petroleum Status Report 10 30 AM ET FOMC Minutes 2 00 PM ET and Raphael Bostic Speaks 4 00 PM ET
S P 500 Futures Quiet Day Of Upside
During Monday nights Globex session the S P 500 futures ESM19 CME printed a high of 2863 50 a low of 2846 25 and opened Tuesday s regular trading hours at 2859 25
Going into the RTH open the ES had been trading sideways in a 7 handle range for several hours and the same price action continued after the 8 30 CT bell At 9 30 the futures finally broke out and made a move to the upside printing a new high for the day at 2870 75
Once the high had been established the ES once again began to drift sideways this time extending the range to 10 handles
There was no change going into the close When the MiM revealed 930 million to buy MOC the ES was hovering around its highs but wasn t able to trade above 2869 75 It would then go on to print 2866 25 on the 3 00 cash close and 2866 00 on the 3 15 futures close up 22 handle for the day
It was a quiet day all around Volume was low with only 1 2 million ES contracts traded and the RTH range was tight
Disclaimer Trading Futures Options on Futures and retail off exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors You should carefully consider whether trading is suitable for you in light of your circumstances knowledge and financial resources Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person s authorizing such transaction s BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE S AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
Original post |
WMB | Why Is Williams Companies Inc The WMB Down 3 Since Last Earnings Report | It has been about a month since the last earnings report for Williams Companies Inc The NYSE WMB Shares have lost about 3 in that time frame outperforming the S P 500
Will the recent negative trend continue leading up to its next earnings release or is Williams Companies Inc The due for a breakout Before we dive into how investors and analysts have reacted as of late let s take a quick look at the most recent earnings report in order to get a better handle on the important drivers Williams Companies Posts Weak Q1 ResultsWilliams Companies reported first quarter 2019 adjusted earnings from continuing operations of 22 cents per share missing the Zacks Consensus Estimate of 24 cents Lower contribution from its West segment led to the underperformance Nonetheless the reported EPS was higher than the prior year figure of 19 cents For the quarter ended Mar 31 the company reported revenues of 2 054 million lagging the Zacks Consensus Estimate of 2 373 million and decreasing from the year ago figure of 2 088 million Key TakeawaysDistributable cash flows came in at 780 million up 8 from the year ago quarter Adjusted EBITDA came in at 1 216 million in the quarter under review compared with 1 135 million in the corresponding period of 2018 Cash flow from operations totaled 775 million compared with 694 million in the prior year period Higher revenues from Transco projects drove cash flow in the quarter Segmental AnalysisAtlantic Gulf This segment comprising Williams Transco Pipeline and properties in the Gulf Coast region generated adjusted EBITDA of 560 million compared with 466 million recorded in the year ago quarter Transco expansion projects including Atlantic Sunrise and Gulf Connector which became functional in October 2018 and January 2019 respectively drove the improved performance of the company West The segment including Northwest pipeline and operations in various regions such as Colorado Mid Continent Haynesville Shale among others delivered adjusted EBITDA of 346 million lower than 406 million recorded in the year ago quarter Severe weather conditions resulted in a decline in volumes translating into 12 7 lower revenues on a year over year basis Further lower commodity margins impacted the segment s results Northeast G P This segment engages in natural gas gathering and processing along with NGL fractionation business in Marcellus and Utica shale regions The segment generated adjusted EBITDA of 302 million up 21 from the corresponding quarter of last year Increased gathering volumes from the Susquehanna Supply Hub and higher returns from investments in Marcellus and Bradford systems drove the results Others The segment posted adjusted EBITDA of 8 million compared with 13 million in first quarter 2018 Expenses SummaryIn the reported quarter total costs and expenses decreased 6 5 to 1 493 million from 1 597 million a year ago Product operating depreciation and S GA expenses declined in the quarter under review Capex Balance SheetDuring the reported quarter Williams total capital expenditure was 1 244 million As of Mar 31 the company had cash and cash equivalents of 43 million and a long term debt of 20 703 million representing a debt to capitalization ratio of 57 2019 Guidance RevisedThe company maintained its adjusted EBITDA guidance in the band of 4 850 5 150 million with distributable cash flow within 2 900 3 300 million However the company revised its adjusted EPS view for the year within 83 cents to 1 07 from the earlier projected range of 77 cents to 1 01 Growth capex is now expected in the band of 2 3 2 5 billion versus prior forecast of 2 7 2 9 billion
How Have Estimates Been Moving Since Then
It turns out fresh estimates flatlined during the past month
VGM Scores
At this time Williams Companies Inc The has a strong Growth Score of A though it is lagging a lot on the Momentum Score front with an F Charting a somewhat similar path the stock was allocated a grade of D on the value side putting it in the bottom 40 for this investment strategy
Overall the stock has an aggregate VGM Score of C If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Williams Companies Inc The has a Zacks Rank 3 Hold We expect an in line return from the stock in the next few months |
WMB | Nasdaq Composite Enters Correction Territory | Foreign Markets Fair Value and Volume
In Asia 7 out of 11 markets closed lower Shanghai Comp 0 96 Hang Seng 0 49 Nikkei 0 01
In Europe 9 out of 13 markets are trading higher CAC 0 29 DAX 1 14 FTSE 0 24
Fair Value S P 0 28 NASDAQ 3 27 Dow 3 67
Total Volume 2 29 million ESM 487 SPM traded in the pit
As of 7 00 a m CST
Today s Economic Calendar
Today s economic calendar includes the 8 Week Bill Settlement Charles Evans Speaks 7 00 AM ET John Williams NYSE WMB Speaks 8 30 AM ET Redbook 8 55 AM ET Charles Evans Speaks 9 45 AM ET Jerome Powell Speaks 9 55 AM ET Factory Orders 10 00 AM ET Lael Brainard Speaks 3 45 PM ET and Robert Kaplan Speaks 6 45 PM ET
S P 500 Futures Market Leader Nasdaq Falls
Chart courtesy of Scott Redler RedDogT3 spx futures 15 We ll see they type of bounce today as tech will be important
The S P 500 futures ESM19 CME gapped lower Sunday night to open the Globex session at 2741 00 down 11 50 handles from Friday s close It would then go down to print a low at 2731 25 and rally to print a high of 2752 00 then open Monday s regular trading hours at 2751 00
The morning trade consisted of wide heavy algo driven swings The ES first traded up to 2759 75 after the 8 30 CT bell then down to 2738 00 then back up through the opening range to a new high at 2763 75 all in the first 90 minutes of trading
Once the new high was in the ES turned around and set its sights on the Globex low but stopped short only making it down to 2735 00 Volume dropped significantly but the selling pressure was still strong
At 12 30 James Bullard announced that an interest rate cut could be warranted to help lift inflation and the ES reacted in kind spiking up to 2756 75 After that the futures pulled back to make a new RTH low by one tick then ran back up to 2753 00 before going down to make another new low at 2728 75
Going into the close when the MiM came out showing 543M to buy the ES was trading at 2735 75 It would then go on to rally printing 2743 75 on the 3 00 cash close and 2750 25 on the 3 15 futures close down 2 50 handles on the day
In the end the overall tone of the ES was pretty weak In terms of the days overall trade total volume was high with 2 2 million futures contracts traded
Disclaimer Trading Futures Options on Futures and retail off exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors You should carefully consider whether trading is suitable for you in light of your circumstances knowledge and financial resources Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person s authorizing such transaction s BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE S AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS |
WMB | USD Strengthens But Remains In Check | The greenback retraced some of its earlier fall despite the weaker than expected ADP employment figure yesterday Analysts tend to also attribute the correction to an initial overreaction during yesterday s morning as the USD had continued to weaken Analysts also fear that the market may be pricing too aggressively the possibility of a rate cut by the Fed and sooner than later The US labor department is to release its Employment report for May tomorrow and the markets are expected to scrutinize the employment data to estimate whether there is a slack in the US employment market or not We could see the USD stabilizing somewhat today yet should market worries persist we could see the USD start weakening again USD JPY maintained a sideways movement yesterday between the 108 50 R1 resistance line and the 107 90 S support line We expect the pair to maintain its sideways movement for today yet the market may start positioning itself ahead of the US employment report Should the pair s long positions be favoured by the market s we could see it breaking the 108 50 R1 resistance line Should the pair come under the selling interest of the market we could see it breaking the 107 90 S2 support level
ECB interest rate decision
The ECB is to release its interest rate decision today 11 45 GMT and is widely expected to remain on hold at 0 0 EUR OIS imply a probability of 95 for the bank to remain on hold at the current stage Given the probably unchanged interest level the markets are expected to be influenced by the accompanying statement and the following press conference of ECB President Mario Draghi 12 30 GMT The bank may sound dovish given the recent soft inflation rate and despite some hopes still existing regarding growth Points of special interest would include the announcing of possible terms for the new TLTRO program any further rate guidance and any changes in the bank s forecasts Should the bank sound more on the dovish side we could see the common currency weakening EUR USD tumbled yesterday after testing the 1 1300 R2 resistance level breaking the 1 1260 R1 support line now turned to resistance the upward trendline incepted since May 31st and continued its drop only to bounce on the 1 1220 S1 support line As the pair broke its upward trendline we switch our bullish view in favor of a sideways scenario Should the bulls take over the pair s direction we could see it breaking the 1 1260 R1 resistance line once again and aim for higher grounds Should the bears dictate the pair s direction we could see it breaking the 1 1220 S1 support line and aim for the 1 1175 S2 support barrier
Other economic highlights today and early tomorrow
Today during the European session we get Germany s factory order s growth rate for April and Eurozone s 2nd estimate of the GDP growth rate for Q1 In the American session we get the US international trade balance for April and Canada s trade balance figure also for April as well as the Ivey PMI for May In tomorrow s Asian session we get Japan s household spending for April As for speakers please note that BoJ Governor Kuroda BoE Governor Carney IMF s Christine Lagarde Dallas Fed President Kaplan NY Fed President Williams NYSE WMB BoJ Governor Kuroda and San Francisco Fed President Daly are scheduled to speak
Support 107 90 S1 107 20 S2 106 60 S3
Resistance 108 50 R1 109 15 R2 109 75 R3
Support 1 1220 S1 1 1175 S2 1 1125 S3
Resistance 1 1260 R1 1 1300 R2 1 1340 R3 |
WMB | EUR USD Euro Steady Ahead Of ECB Rate Decison | EUR USD has ticked higher in the Thursday session Currently the pair is trading at 1 1237 up 0 14 on the day On the release front German Factory Orders slowed to 0 3 above the estimate of 0 1 Eurozone GDP improved to 0 4 matching the estimate Later in the day the ECB releases its key interest rate which is expected to remain at a flat 0 00 In the U S the key event is unemployment claims which is projected to remain steady at 215 thousand
All eyes are on the ECB which holds its policy meeting on Thursday With policymakers expected to hold rates at 0 00 investors will be focused on the policy statement and follow up comments from Mario Draghi Traders should be prepared for a dovish stance at Draghi s post meeting press conference The ECB will also provide new outlooks for inflation and growth In March the ECB forecast GDP at 1 1 and inflation at 1 2 in 2019 Will the bank revise the upcoming forecast upwards If so investors could respond with a thumbs up and drive the euro higher
Since raising rates back in December the Federal Reserve has sounded neutral with regard to rate movement However the passive stance was shattered this week with Fed Chair Jerome Powell hinting at a rate cut On Tuesday Powell said that the Fed would act as appropriate to sustain the expansion It was also noteworthy that Powell did not mention his patient approach to monetary policy which has been a buzzword in his recent comments Also this week St Louis Fed president said that the Fed might have to lower rates shortly due to low inflation and the ongoing trade war with China
EUR USD Fundamentals
Thursday June 6
2 00 German Factory Orders Estimate 0 1 Actual 0 3
5 00 Eurozone Final Employment Change Estimate 0 3 Actual 0 3
5 00 Eurozone Revised GDP Estimate 0 4 Actual 0 4
5 12 French 10 year Bond Auction Actual 0 14 2 6
7 30 US Challenger Cuts
7 45 ECB Monetary Policy Statement
7 45 ECB Main Refinancing Rate Estimate 0 00
8 30 ECB Press Conference
8 30 ECB Press Conference
8 30 US Unemployment Claims Estimate 215K
8 30 US Revised Nonfarm Productivity Estimate 3 6
8 30 US Revised Unit Labor Costs Estimate 0 9
8 30 US Trade Balance Estimate 50 5B
10 30 US Natural Gas Storage Estimate 110B
13 00 US FOMC Member Williams NYSE WMB Speaks
Friday June 7
2 00 German Industrial Production Estimate 0 4
2 00 German Trade Balance Estimate 18 7B
8 30 US Average Hourly Earnings Actual 0 3
8 30 US Nonfarm Employment Change Estimate 180K
8 30 US Unemployment Rate Estimate 3 6
All release times are DST
Key events are in bold
EUR USD for Thursday June 6 2019
EUR USD for June 6 at 7 15 DST
Open 1 1221 High 1 1243 Low 1 1221 Close 1 1237
EUR USD Technical
EUR USD has posted small gains in the Asian and European sessions
1 1212 is a weak support line
1 1300 is the next resistance line
Current range 1 1212 to 1 1300
Further levels in both directions
Below 1 1212 1 1120 1 1046 and 1 0950
Above 1 1300 1 1434 and 1 1553
Original Post |
C | Data Reports and Rumors Help Drive Stocks Lower Dollar Higher | New data on manufacturing a report from Oppenheimer Co analyst Meredith Whitney and a rumor regarding industrial giant General Electric were helping to drive stocks lower and the dollar higher against the euro pound and Australian dollar Monday morning
The Institute for Supply Management reported that manufacturing contracted at the fastest pace in 25 years during November and that the overall economy shrank for a second consecutive month It was the fourth straight month of decline for the sector
The U S credit card industry may pull back well over 2 trillion of lines over the next 18 months due to risk aversion and regulatory changes leading to sharp declines in consumer spending banking analyst Meredith Whitney said today in an article published by the Financial Times
Meanwhile Citigroup issued a report to clients which said a webcast scheduled for tomorrow by General Electric could be used as a forum to downgrade the company s 2009 profit guidance
In recent trade the DOW was trading 4 25 lower The broader S P 500 was moving lower by 5 1 and the NASDAQ by 5 26 The dollar was trading in risk aversion mode with gains of 0 48 on the euro 3 45 on the pound and 1 53 against Australia s dollar as it lost 1 9 to the yen NYMEX crude for January delivery was losing 3 80 6 98 on the day to 50 63 per barrel while COMEX gold for January delivery was trading lower by 43 50 5 31 to 775 50 per ounce |
C | UPDATE 2 German orders collapse stirs fears of record slump | Adds background details
By Dave Graham
BERLIN Dec 5 Reuters German manufacturing orders
plunged in October after a record decline the previous month
raising the spectre of a record slump in Europe s largest
economy as it struggles with a collapse in foreign demand
Adjusted for seasonal swings orders fell 6 1 percent in
October led by a sharp downturn in demand from Germany s euro
zone trading partners preliminary Economy Ministry data showed
on Friday A Reuters poll had forecast a rise of 0 4 percent
Compounding the bad news which helped to send the euro to a
session low against the dollar was a downwards revision to the
September result to show a decline of 8 3 percent
German industry seems to be drowning in the financial
crisis said Carsten Brzeski an economist at ING Financial
Markets What started off as a relatively normal correction
from very high levels has developed into serious collapse
Economists said the data showed the European Central Bank
would have to cut interest rates further and that a sharp
depreciation in the euro had not brought exporters relief
Domestic orders fell 6 1 percent Foreign orders were down
6 2 percent with euro zone orders falling 7 4 percent
Industrial production will decline further in coming months
due to the persistent weakness in orders the ministry said
German business sentiment is near its lowest level in 16
years and a survey of manufacturing firms published this week
showed the outlook for new orders worsened in November
Further highlighting the economy s woes premium carmaker
BMW said global sales plunged by a quarter in November as even
wealthy consumers cut their spending
A survey by the Ifo economic think tank showed a growing
number of German firms are finding banks lending conditions
restrictive particularly larger ones
HISTORIC SLUMP FEARED
The German economy is already in recession and fears are
mounting the country faces its biggest economic downturn next
year since World War Two
Deutsche Bank chief economist Norbert Walter told a
newspaper that German gross domestic product GDP could
contract by up to 4 percent in 2009
This would be four times as bad as its previous worst
one year performance since the end of the war
Germany the world s biggest exporter of goods since 2003
is heavily exposed to foreign demand and exports have slowed
markedly despite a sharp drop in the euro against the dollar
The weak euro does not seem to have helped The outlook for
coming months is gloomy said DZ Bank economist Philipp Jaeger
We expect to emerge from recession next summer If the numbers
get worse then we must correct our forecasts
The ministry data showed orders for capital goods fell 8 2
percent in October with those for intermediate goods down 4 5
percent Consumer goods orders fell by 1 6 percent
Juergen Michels an economist a Citigroup in London said
Germany was heading for an historic slump in 2009
We expect a contraction next year of 1 5 percent he
said It could be worse though
Additional reporting by Paul Carrel and Madeline Chambers
Editing by Victoria Main |
C | REFILE ANALYSIS Japan office vacancies timebomb for developers | Corrects date fixes typo in paragraph 21
By Mariko Katsumura
TOKYO Dec 11 Reuters Tokyo s office market the last
stronghold for investors in the country s faltering property
sector is showing signs of weakening as the economy wilts
heaping more pressure on developers and real estate trusts
already suffering from the global credit crunch
Hit by worldwide financial turmoil Japan slipped into
recession in the third quarter for the first time in seven
years with thousands of companies cutting staff and scaling
down the size of their businesses
That helped to push up the average vacancy rate in Tokyo s
core business district to a three year high of 4 3 percent in
October up 0 23 percentage points from September data by real
estate broker Miki Shoji showed
Among Tokyo s S class buildings the swankiest and most
prestigious ones in terms of location the vacancy rate jumped
2 1 percentage points from October to 5 8 percent in November
according to real estate brokerage CB Richard Ellis
Japan s biggest developers Mitsui Fudosan Co and
Mitsubishi Estate Co cut their full year profit outlooks by 5
percent and 7 percent respectively in October on the
weakening property outlook citing slower apartment sales
So far rising office vacancies have not had a major impact
on Mitsui or Mitsubishi because few leases have come up for
renegotiation but it will catch up with earnings eventually
Both firms are highly exposed to a downturn in the prime
segment relying heavily on office leasing and commercial
development
Mitsubishi has said some tenants at its Marunouchi Park
Building in central Tokyo which will open next near had
agreed to pay monthly rent of 80 000 yen 840 per 1 tsubo or
3 3 square metres nearly triple average rents for class A
space in midtown Manhattan
But such bullish deals might soon become legend
We aren t seeing negative news about those top class
buildings yet but that could happen from the year after
next They big developers might need to reduce rents by up to
5 percent said Goldman Sachs analyst Sachiko Okada adding
that times would be tough in Japan s property market for at
least the next few years
In the last big property downturn in the 1990s many
Japanese landlords were insulated from big falls in rents
because of cosy agreements with tenants many of whom were
parts of the same corporation But in the last few years as the
market rose Japanese landlords have tried to become more
Western and hike their rents in line with those usually set
by new buildings
Now that the property market is turning again tenants may
push back by demanding lower rents in coming years as their
multi year leases expire or threaten to move
Rising office vacancy rates may pose a more immediate
threat to real estate investment trusts REITs such Creed
Office Investment Corp which have bigger exposure to Class B or
C office buildings and smaller cities said independent REIT
analyst Shigeo Yamazaki
Nearly 500 real estate firms have already folded in Japan
this year with total debt of 1 7 trillion yen and investors
fear more cash strapped developers will collapse as lenders
reject their refinancing pleas More collapses could feed a
vicious cycle where failed firms are forced to dump cheap
assets onto the market further depressing property values and
rents
The Tokyo Stock Exchange s real estate index has lost close
to 60 percent of its value so far this year compared with a 46
percent fall in the benchmark TOPIX index
YEAR AFTER NEXT
Despite sliding property prices investors in prime Tokyo
offices will likely be able to squeeze out attractive returns
for some months yet until existing leases are renewed But any
rental deals done now will probably lock landlords into lower
rents for a few years which could see them lagging any
industry recovery
The rental yield for top class Tokyo offices is still
around 3 percent little changed from last year and 1 5
percentage points over 10 year Japanese government bonds
In Singapore a drop in capital values for class A
buildings has pushed yields up to 5 6 percent from 4 3 percent
last year while in Hong Kong yields have inched up to 4 7
percent from 4 5 percent Both of those economies have also
fallen into recession
In Tokyo the vacancy rate for class B and C offices could
reach nearly 10 percent said Daisuke Seki chief executive of
REITs consultancy IB Research Consulting
The vacancy rate for top class buildings was also likely to
reach 5 to 6 percent in 12 months three analysts said
Normally there s a one year time gap between the office
vacancy rate and macroeconomic movements said SMBC Friend
Research Centre analyst Masato Banba The office market could
further deteriorate and if so Mitsui and Mitsubishi can be
hit
Mitsubishi sees almost zero vacancy at its Marunouchi area
offices while Mitsui said the vacancy rate at its buildings in
metropolitan Tokyo was 1 6 percent in September
But Nikko Citigroup analyst Yoshizumi Kimura said strong
rents for top buildings are likely to be partly offset by
higher vacancy rates and longer vacancy periods after tenants
leave
For companies without new projects the current demand and
supply balance is such that March 2011 leasing business profits
will be either flat or down slightly on the yearly basis
Kimura wrote in a recent research note
Additional reporting by Dominic Whiting in Hong Kong Editing
by Kim Coghill |
C | POLL South Korea 2009 GDP growth to halve to 11 yr low | By Cheon Jong woo
SEOUL Dec 11 Reuters South Korea s economy will
probably grow in 2009 at its slowest clip in 11 years due to a
deepening global downturn with the growth rate slowing to less
than half the pace seen three months ago a Reuters poll
showed
Asia s fourth largest economy will recover some momentum in
2010 on the back of various domestic and global stimulus
measures but will perform far below levels since in recent
years the survey of 10 economists suggested
The poll was conducted before Bank of Korea slashed its key
rate by a record one percentage point to 3 0 percent a record
low to help the economy avoid sliding into its first recession
in a decade
The economy will probably grow 2 1 percent next year
marking its worst performance since a 6 9 percent fall in 1998
in the wake of the Asian financial crisis Growth is expected
to pick up to 3 8 percent in 2010 still below the 5 percent
pace recorded in the past two years median forecasts from the
survey showed
In the previous poll published in late September
economists had forecast that South Korea s economy would expand
4 6 percent in 2009
The finance ministry aims for 2009 growth of around 4
percent after a projected 4 7 percent expansion this year but
several officials have admitted that the ministry s forecast
may turn out to be too optimistic
Actually I may have to lower the growth forecast further
as we have not seen a bottom yet Whenever I make a new
forecast I see fresh bad factors said Oh Suk tae an
economist at Citigroup who has a 2 0 percent forecast for
2009
Exports which have been a main engine for the country s
economic growth are cooling reflecting a slump in global
demand
Weaker exports and the global financial turmoil will
squeeze an already subdued domestic demand even further next
year economists said
With the economy losing momentum quickly the Bank of Korea
is expected to keep cutting interest rates in months ahead in
addition to 225 basis points of easing since early October
Despite rate cut expectations the won currency is
seen rebounding next year from a loss of more than 30 percent
this year as South Korea s trade balance is expected to turn
positive thanks to a sharp drop in oil prices and weaker
imports in general economists said
Results of the latest survey conducted last week
GDP CPI TRADE BAL
pct pct US bln
2009 2010 2009 2010 2009 2010
HSBC 0 6 4 6 2 6 3 6 6 0 19 9
HMC Investment 1 2 3 8 2 9 2 5 6 9 11 1
DBS Bank 1 4 2 2 18 0
SC First Bank 1 4 2 6 2 9 3 4 8 3 12 3
Citigroup 2 0 3 8 3 0 2 5 11 2 10 0
NH Investment 2 2 3 5 3 2 2 8 10 7 11 0
SK Securities 2 4 3 6 3 1 3 3 3 0 4 5
HI Investment 2 4 4 0 3 7 3 2 6 0 7 0
Hana Daetoo 2 5 4 5 2 7 3 0 3 5 5 5
Goodmorning Shinhan 3 2 4 9 3 2 2 8 10 7 11 0
Median 2 1 3 8 3 0 3 0 7 6 11 0
no forecasts
Forecasts for the won per dollar
End June 2009 End Dec 2009
Hana Daetoo 1 150 1 050
NH Investment 1 150 1 050
SK Securities 1 160 1 140
HI Investment 1 200 1 100
SC First Bank 1 250 1 150
Citigroup 1 300 1 250
DBS Bank 1 350 1 200
Goodmorning Shinhan 1 350 1 100
HMC Investment 1 350 1 300
HSBC 1 400 1 200
Median 1 275 1 145
Forecasts made in previous Reuters surveys
GDP CPI TRADE BAL
pct pct US bln
2009 2010 2009 2010 2009 2010
Sept 2008 4 6 n a 3 4 n a 3 3 n a
July 2008 5 0 n a 3 4 n a 8 5 n a
March 2008 5 0 n a 3 0 n a 5 7 n a
Historical data
GDP CPI TRADE BALANCE
pct change on pvs yr pct US bln
2007 5 0 2 5 14 6
2006 5 1 2 2 16 1
2005 4 2 2 8 23 2
2004 4 7 3 6 29 4
2003 3 1 3 5 15 0
5 yr average 4 4 2 9 19 7 |
C | POLL Taiwan growth to hit 8 year low in 2009 | By Lee Chyen Yee
TAIPEI Dec 11 Reuters Taiwan economic growth is
expected to slow in 2009 to its weakest pace in eight years as
the global downturn pushes the island s key export markets into
recession and weighs on domestic consumption a Reuters poll
shows
Economists slashed their forecasts for 2009 growth to 0 7
percent from 4 1 percent in a similar poll in September when
major U S banks buckled under the strain of the global credit
crisis and 5 0 percent in a survey in July
Five respondents forecast that the economy would contract
in 2009
The 2009 growth forecast is lower than the statistics
agency s forecast of 2 12 percent a pickup from expected
growth this year of 1 87 percent
Economists see 2010 growth picking up to 3 0 percent as the
global economy starts to recover
Taiwan s outlook basically depends on a recovery in the
external climate particularly in exports said Joseph Lau an
economist at Credit Suisse
Reflecting Taiwan s exposure to global trade exports fell
in September October and November having maintained annual
growth of some 10 percent to 25 percent for most of the year
Economic growth in China its biggest export destination
is also slowing and it is buying up less of Taiwan s flagship
products such as computer chips laptops mobile phones and
chemicals
The economic slide will be accompanied by a slide in the
currency the poll suggests The Taiwan dollar is
expected to drop to 34 6 to the U S dollar by mid 2009 before
pulling back a bit to 34 0 by the end of next year It is
trading at around T 33 32 now
Analysts forecast a 2009 trade surplus of 24 7 billion
bigger than 16 2 billion in the previous poll reflecting
expectations that the island s import bill will fall due to a
sharp decline in commodity prices The surplus will probably
narrow to 24 4 billion in 2010
The trend in domestic consumption for this year and next
has also prompted economists to revise down Taiwan s inflation
to 1 0 percent for 2009 from 2 5 percent in September with
consumer prices seen rising by 1 4 percent in 2010
Results of the latest survey
GDP CPI TRADE BALANCE
pct pct US bln
2009 2010 2009 2010 2009
2010
Chinatrust 1 7 3 5 1 4 1 6 27 5
22 0
Citigroup 1 5 3 0 1 0 1 2 28 2
34 4
Credit Suisse 1 1 2 1 1 4 1 4 23 0
17 2
DBS 1 0 0 8 27 6
JihSun Int l Bank 1 8 2 5 3 0 2 8 25 3
28 3
JPMorgan 0 4 4 6
Masterlink Securities 0 6 0 5 19 73
Mega Securities 1 5 0 4 20 0
Standard Chartered 0 7 3 2 1 3 1 6 24 1
24 4
Taiwan Securities 2 1 2 8 0 9 1 2 17 2
22 9
UBS 1 6 2 9 0 4 0 7 28 4
30 5
Median 0 7 3 0 1 0 1 4 24 7 24 4
Forecasts for Taiwan dollar to the U S dollar
By end June 2009 By end Dec
2009
Credit Suisse 35 5 34 8
DBS 32 7 31 8
HSBC 36 0 36 0
Jih Sun Int l Bank 35 2 34 6
Masterlink Securities 34 6 33 5
Mega Securities 34 0 34 0
Standard Chartered 34 1 33 0
Taiwan Securities 35 5 35 8
Domestic bank 34 0 32 5
Foreign Bank A 34 3 33 3
Foreign Bank B 35 0 34 2
Median 34 6 34 0
Forecasts made in previous Reuters surveys
GDP CPI TRADE BALANCE
pct change pct change US bln
2008 2009 2008 2009 2008
2009
Sep 2008 4 2 4 1 3 8 2 5 14 9
16 2
Jul 2008 4 6 5 0 3 5 2 9 23 8
22 2
Mar 2008 4 1 4 6 2 3 2 1 27 3
28 1
Dec 2007 4 1 2 0 28 2
Sep 2007 4 5 1 6 25 5
Jun 2007 4 7 1 7 29 1
Mar 2007 4 7 1 8 23 8
Historical data
GDP CPI TRADE BALANCE
pct pct US bln
2003 3 50 0 28 22 59
2004 6 15 1 61 13 61
2005 4 16 2 31 15 82
2006 4 80 0 60 21 32
2007 5 70 1 80 27 43
5 yr Average 4 86 1 21
20 15 |
C | UPDATE 1 MUFG in lead for Citi trust unit paper | TOKYO Dec 12 Reuters Japan s Mitsubishi UFJ Financial
Group is in the lead to buy Citigroup s Japanese trust bank the
Nikkei newspaper said on Friday in what could be part of a
massive global asset sale by the struggling U S firm
Mitsubishi UFJ Trust Banking an arm of Japan s largest
bank has outbid rivals Sumitomo Trust Banking and Mizuho Trust
Banking for the unit the paper said citing people familiar
with the negotiations
All three firms bid more than 20 billion yen 218 million
for NikkoCiti Trust and Banking Corp the Nikkei said Japanese
media previously reported the unit could fetch up to 40 billion
yen
Spokesmen for both Citigroup in Japan and Mitsubishi UFJ
Trust declined to comment
Mitsubishi UFJ Trust said this week it would work together
with Citigroup on the sale and promotion of Japanese depositary
receipts overseas
Citigroup has previously said it has no plans to sell its
Japanese brokerage and investment banking units or other core
businesses in Japan It has not however mentioned plans for
its trust bank
Citigroup last year embarked on an aggressive push to expand
in Japan buying up Nikko Cordial but has since been hit by
heavy losses from the global credit crisis
In October it sold most of its stake in an investment unit
Nikko Antfactor to Japanese lender Norinchukin Bank and trading
firm Mitsubishi Corp
The company has all but closed its consumer lending business
in Japan shutting down more than 30 outlets and 540 unmanned
branches
1 91 55 Yen
Reporting by David Dolan |
WMB | Saudi Arabia and Formula One discussing F1 race | By Alan Baldwin
LONDON Reuters Saudi Arabia and Formula One are discussing the possibility of holding a race in the country and team bosses have been asked for an opinion sources said on Tuesday
The Times newspaper reported that Formula One and the 10 teams would seek reassurance on issues including human rights gender equality and media freedom before any race could happen
Multiple informed sources confirmed to Reuters the substance of the report
They added however that Formula One had discussions with many would be hosts around the world which ultimately came to nothing
The Times suggested a Saudi race could become a reality as soon as 2021 with the schedule already expected to stretch to a record 22 races in 2020
Formula One and the teams are discussing major sporting and technical rule changes from 2021 and Ferrari NYSE RACE boss Mattia Binotto said in Hungary at the weekend that could see an expansion to 24 races
A Formula One source said that was more to allow flexibility replacing the existing rule that states teams must agree to expand the calendar beyond 21 races rather than being a target number
The Middle East already hosts two races at Sakhir in Bahrain and Abu Dhabi s Yas Marina with lucrative long term contracts in place
Bahrain was the first in 2004 but the race has proved controversial with rights groups accusing the country s rulers of using it to whitewash abuses and improve their image abroad
Saudi Arabia has come under heightened international criticism over its human rights record after journalist Jamal Khashoggi was murdered and dismembered by Saudi operatives inside its Istanbul consulate last October
The kingdom lifted a ban on women driving only last year
Formula One published a commitment in 2015 to respect internationally recognized human rights in its operations globally
Should the talks with Saudi Arabia move up a level the kingdom would likely be looking at a third regional slot
This year Bahrain was the second round of the season after Australia while Abu Dhabi will be the final round in early December
Any Saudi race would likely need to be separated from the other two regional rivals to protect their investment and the uniqueness of the event
Formula One is broadcast live and free to air in the Middle East and North Africa region under a five year deal struck last March with MBC Group founded by Saudi businessman Waleed al Ibrahim
The rights previously belonged to Qatar s BeIN media group which blamed broadcast piracy of its pay TV feed as a reason for not renewing
Saudi Arabia already features on the all electric Formula E calendar and hosted its first race last year on a street circuit at Ad Diriyah near Riyadh
Saudi companies have been involved in Formula One in the past with Albilad and the national airline Saudia sponsoring Williams NYSE WMB to their first title in 1980
Formula One s U S based commercial rights holders Liberty Media NASDAQ FWONA have stated already that they want to add races in the United States with Miami in line to join the U S Grand Prix in Austin and China both key markets for the sport s growth
There have also been talks with Argentina South Africa and Morocco with Africa the only major inhabited continent currently without a race
Europe the sport s historic heartland currently has 11 rounds of the championship when Russia and Azerbaijan are included |
WMB | MLB notebook Mariners Beckham gets 80 game PED ban | Seattle Mariners infielder Tim Beckham was suspended 80 games without pay by Major League Baseball on Tuesday after testing positive for the performance enhancing drug Stanozolol
Beckham 29 is batting 237 with 15 homers a career high 21 doubles and 47 RBIs in 88 games in his first season with the Mariners after signing a one year 1 75 million contract in January
He has started games at five different defensive positions first second and third base shortstop and left field as well as at designated hitter this season He has primarily played shortstop 39 starts
The Toronto Blue Jays will extend the protective netting at Rogers Centre before the 2020 season and they re taking the same measures at their spring training stadium in Dunedin Fla
As fans and followers of the game it is vitally important for us to preserve and enhance the live baseball experience while also ensuring everyone who visits our ballparks can do so safely said Andrew Miller the team s executive vice president of business operations
The netting at Rogers Centre currently extends to the end of the dugouts and the Blue Jays said they are working to figure out the new dimensions
The San Francisco Giants designated second baseman Joe Panik for assignment
In related moves the Giants recalled left hander Conner Menez who was scheduled to start Tuesday s game against the Washington Nationals and left hander Williams NYSE WMB Jerez from Triple A Sacramento Left hander Sam Selman was sent to Triple A on Monday night
Panik a former All Star and Gold Glove winner was batting a career low 235 with three home runs and 27 RBIs in 103 games Panik 28 will be placed on waivers on will be available to any team making a claim
The Los Angeles Dodgers placed outfielder Alex Verdugo on the 10 day injured list because of a right oblique strain
Verdugo 23 had been scratched from Monday night s game due to what was described as back soreness He has blossomed this season hitting 294 with 12 home runs and 44 RBIs in 106 games playing a bigger role than expected because of multiple injuries to free agent acquisition A J Pollock
The Dodgers recalled left handed pitcher Caleb Ferguson and infielder Edwin Rios from Triple A Oklahoma City They sent right hander Tony Gonsolin who pitched six scoreless inning against the St Louis Cardinals in a spot start Monday to Oklahoma City
The Detroit Tigers placed third baseman Jeimer Candelario on the 10 day injured list because of a sprained left thumb
Candelario 25 injured his hand Sunday during Detroit s 9 4 loss to the Texas Rangers On Monday he had X rays that revealed no significant structural damage He has just one hit in his past six games and is batting 198 with seven homers 24 RBIs and 82 strikeouts in 73 games this season
The Tigers recalled infielder Dawel Lugo from Triple A Toledo in a corresponding move
The Cleveland Indians placed outfielder Jordan Luplow on the 10 day injured list and recalled outfielder Greg Allen from Triple A Columbus
Luplow 25 injured his right hamstring Monday sliding into third with a stolen base during the seventh inning of Cleveland s 1 0 loss to the visiting Texas Rangers He is batting 271 with 11 homers and 29 RBIs in 69 games in his first season with Cleveland
Allen 26 has split this season between Cleveland and Columbus He has batted 230 with two homers and 17 RBIs in 45 games with the Indians and 268 with five homers and 17 RBIs in 48 games with the Clippers
Field Level Media |
WMB | Barty suffers shock second round loss in Toronto | By Frank Pingue TORONTO Reuters World number one Ash Barty s preparations for the U S Open got off to a rocky start as the Australian suffered a shock 6 7 5 6 3 6 4 loss to American Sofia Kenin in the second round of the Rogers Cup on Tuesday French Open champion Barty playing for the first time since falling in the last 16 at Wimbledon was far from her best and Kenin took full advantage recording her first victory in four meetings with the Australian I wasn t able to adapt quickly enough or well enough to play a match of the standard that I expect myself to play and I want myself to play said Barty And Sofia served today in the big moments She served particularly well and got a lot of free points World number 29 Kenin failed to serve out the opening set at 5 4 but did not let that setback derail her remaining poised the rest of the way even as Barty nearly rallied back from big deficits in the second and third sets Kenin led 4 0 in the second only for Barty to win three straight games and get back on serve In the decider Kenin broke twice early for a 4 1 lead and Barty again threatened but finally ran out of tricks on the fourth match point I am just really tired to be honest Kenin said Such a tough player and it was a tough match and I am just so happy to have pulled through Next up for Kenin will be either former world number one Victoria Azarenka who earlier beat hard hitting Italian Camila Giorgi 6 2 6 2 or Ukraine s Dayana Yastremska With the loss Barty could lose her number one ranking if Naomi Osaka wins her second round match on Wednesday or if Czech Karolina Pliskova reaches the semi finals Marie Bouzkova claimed the biggest win of her young career with a 6 2 7 5 upset of seventh seeded Sloane Stephens to close out the action on Tuesday The 21 year old Czech will next face either 2017 French Open champion Jelena Ostapenko or hard hitting Russian Anastasia Pavlyuchenkova In other matches seven times Grand Slam champion Venus Williams NYSE WMB was eliminated in the first round with a 6 4 6 2 loss to Spaniard Carla Suarez Navarro Williams who has now lost four consecutive matches was ultimately undone by a slew of unforced errors and double faults that allowed Suarez Navarro to reel off the final four games She was just extra sharp said Williams And I played a lot of great points but just didn t put enough in a row Indian Wells champion Bianca Andreescu beat former Wimbledon finalist Eugenie Bouchard 4 6 6 1 6 4 in an all Canadian first round clash while fifth seeded Dutchwoman Kiki Bertens reached the last 16 with a 6 2 6 1 win over Francesca Di Lorenzo Croatia s Donna Vekic beat American 14th seed Madison keys 3 6 7 6 5 7 6 5 in the first round while Wimbledon quarter finalist Zhang Shuai beat Latvia s Anastasija Sevastova 7 6 5 6 2 and will next face Russian qualifier Ekaterina Alexandrova who beat Japan s Misaki Doi 6 2 6 2
Among the other players to reach the Round of 32 in Toronto which is part of the U S Open Series leading up to the year s final Grand Slam were Czech Katerina Siniakova German qualifier Tatjana Maria and Polish qualifier Iga Swiatek |
WMB | Serena Osaka top Forbes list of best paid female athletes | Reuters Naomi Osaka s Grand Slam title wins at the U S and Australian Opens have helped catapult the Japanese tennis player up to second behind Serena Williams NYSE WMB in Forbes list of the highest paid female athletes over the last year
Williams a 23 times Grand Slam champion topped the annual list for a fourth consecutive year with estimated total earnings of 29 2 million the business magazine said
Osaka s total income grew to 24 3 million driven mainly by her off court earnings soaring to an estimated 16 million from 1 5 million a year ago but the Japanese still missed the cut for Forbes top 100 best paid athletes list
Williams is the only woman making it onto that list coming in at No 63
Forbes said it compiled its list based on prize money salaries bonuses endorsements and appearance fees between June 1 2018 and June 1 this year
U S women s soccer player Alex Morgan is the highest placed non tennis player on the women s list at number 12 with Forbes putting her total earnings of 5 8 million
Morgan s income which makes her the best paid women s soccer player in the world is dwarfed by that of Barcelona forward Lionel Messi who topped Forbes list of the best paid athletes over the past year with 127 million
The U S women s soccer team who won a record extending fourth World Cup this year have filed a lawsuit against the country s national soccer body demanding equal compensation with their male counterparts
Of the top 15 on Forbes list of best paid female athletes 12 were tennis players Indian badminton player P V Sindhu came in tied for 13th 5 5 million with Thai golfer Ariya Jutanugarn 5 3 million rounding out the top 15 |
WMB | Racing Point will bounce back says Szafnauer | By Alan Baldwin
LONDON Reuters Racing Point principal Otmar Szafnauer says it is only a matter of time before the team successors to now defunct Force India get back to being best of the rest behind Formula One s big three
If the standings question such optimism with the Canadian owned outfit languishing eighth out of 10 going into the August break after 12 of 21 races the American has plenty of perspective
He has been to the brink and back as chief operating officer of a Force India team that punched above their weight to finish fourth in 2016 and 2017 before last year running out of money
We ll get there Szafnauer told Reuters at last weekend s Hungarian Grand Prix We have the same people the same process even better tools and more funding so it s just a matter of time
The second half of the season should be a lot closer to where we ve been in the past he added Renault PA RENA had better watch out
Renault s well funded manufacturer team fourth last year are now sixth and only eight points ahead
This time last year Szafnauer announced that Force India had been rescued by Canadian billionaire Lawrence Stroll and investors in a deal that saved 405 jobs and kept the Silverstone based team on the road
The Vijay Mallya owned team had gone into administration with only 240 000 pounds 292 056 left and gross wages of 2 2 million due at the end of the month Keeping the staff on board through the crisis was key
The run up to that salvation could have been where everybody said you know what I ve had enough I m out of here recalled Szafnauer Leading up to it a lot of people had all sorts of opportunities and we all stuck together
REALLY INTENSE
Racing Point Force India the name shortened this season finished 2018 seventh overall despite starting from scratch after Hungary as a new team
Szafnauer would not rule out fourth as a target even for 2019 however much of a tall order that seems with McLaren there already and pulling away
I still think its possible but it s difficult said Szafnauer Not because we re that far away but because the competition in the midfield is really intense and we re really only fighting for a few points or tenths
If the top three teams do what they should do the top six race positions are gone You re only fighting for a handful of points and there s a lot of us in that midfield that could get that handful
Mexican Sergio Perez and Stroll s son Lance drew a blank last weekend and Racing Point are 51 points behind McLaren but only 12 adrift of fifth placed Toro Rosso
Szafnauer said the situation was still in line with expectations even if the tally was flattered by Stroll s surprise fourth in a chaotic German Grand Prix
We took such a hit last year because of the difficulties that we had he said We were on the back foot because when we were making decisions back in May and June 2018 about this year s car we had no money
So we compromised this year s car and I didn t really understand the impact of those compromises until this year
Now we re trying to unravel some of those things because we do have funding that we can spend on performance which is what we re chasing now
Szafnauer indicated Perez would stay next year alongside Stroll who was at Williams NYSE WMB last season I don t think so he said when asked whether he envisaged a change
Lance is young and learning has a lot of potential It s a totally different team for him and that takes time to gel with everybody and settle in but that s happening at a good rate
We re teaching him things about how we go about our business and Sergio is helping with that Sergio s been here a long time so I think it s a good mix a good combination
The team boss had no plans to move on either despite interest from others
I want to see this place succeed and do better than it has in the past he said |
WMB | New York Fed to divide key markets role into two jobs | By Trevor Hunnicutt
Reuters The New York Fed which serves as the U S central bank s eyes and ears on Wall Street will split a powerful role that oversees both market operations and the Fed s massive bond holdings it said on Wednesday
The Federal Reserve Bank of New York said it planned to hire two people to replace Simon Potter a longtime staffer whose departure was announced in May
Potter managed the U S central bank s portfolio including trillions in bonds bought to support the economy after the 2008 global financial crisis using its holdings to influence interest rates and other markets and advising the Fed s policy setting committee
He was also in charge of the New York Fed s Markets Group which trades in debt markets manages relationships with Wall Street and provides banking services to the U S government
Those responsibilities will now be split between two jobs one focused on the portfolio management role of turning Fed policy into action and the other focused on the Markets Group s overall operations policy staffing and technology
The changes come at a critical time for the Fed which cut rates last week for the first time since 2008 and is managing division over how to respond to risks including a deteriorating U S China trade relationship and signs of a global slowdown The Fed is also wrestling with how to manage nearly 4 trillion assets to prepare for the next downturn
The shift also marks a new direction after just over a year in the role for the New York Fed s leader John Williams NYSE WMB an accomplished monetary economist
Williams and other Fed officials have drawn scrutiny and some criticism for their communication with markets
The New York Fed was compelled to issue a rare clarification last month after Williams roiled markets with a speech that the regional central bank said was meant to be academic and not directed at current policy debates
Potter s departure was announced at the same time as that of the head of the Financial Services Group Richard Dzina Neither men commented on the reasons for their departures
In its statement the New York Fed said the changes would help the bank best meet its critical responsibilities and said it was using a search firm to draw up a list of candidates for the roles |
WMB | Sprint queen Thompson golden but does not shine at Pan Ams | By Steve Keating
LIMA Reuters Jamaican sprint queen Elaine Thompson may be the biggest name competing in a marquee event at the Pan Am Games but the Olympic champion failed to shine as she won gold in the 100 meters on Wednesday
A chilled crowd at the Estadio Atletico had hoped to see something special from the 2016 Rio Games champion but cold conditions and a ho hum field delivered an ordinary result with Thompson crossing unchallenged in a time of 11 18 seconds
Trinidad and Tobago s Michelle Lee Ahye took the silver in 11 27 and Brazil s Vitoria Cristina Rosa the bronze 11 30
While Thompson has clocked the season s best time of 10 73 her effort on Wednesday was not enough to crack the top 20 this year but more than enough to successfully keep in Jamaican hands the title won by four years ago by Sherone Simpson in Toronto
It was cold but I know everyone out there was cold Thompson told reporters
I just came out here to use this as preparation for the world championships
It s my first time here I don t think there is anything wrong with being high profile athlete here representing myself and my country
While Thompson was blase about her win Mike Rodgers was over the moon after grabbing the United States the men s 100m gold for the first time in 20 years
Rodgers winning time of 10 09 was also unspectacular but the 34 year old sprinter could not hide his delight at putting the U S back on top
Very very happy to bring gold back to the U S for the first time since Bernard Williams NYSE WMB won smiled Rodgers I brought home the gold
It was cold and I didn t think I was going to run that fast I got through it my start wasn t the best but I just focused on my race and just out executed everybody
My first gold at senior level at my first Pan American Games I m so happy to finally have some success
I got over the mountain today
Brazil s Paulo Andre de Oliveira took the silver in 10 16 while Antigua and Barbuda s Cejhae Greene completed the podium in 10 23
While Jamaica is well known for their prowess in the short sprints there was also gold on Wednesday for Natoya Goule who became the first from her country to win the women s 800m
On the opening day of the athletics competition on Tuesday Jamaican discus thrower Fedrick Dacres wiped out one of the Pan Am Games oldest records with a toss of 67 68m that bettered the mark set in 1983 |
WMB | Halep survives Brady test to reach last 16 in Toronto | By Frank Pingue TORONTO Reuters Serena Williams NYSE WMB made a solid start to her first U S Open tune up with a 6 3 6 3 victory over Elise Mertens on Wednesday while Naomi Osaka took a step closer to regaining her world No 1 ranking by reaching the last 16 Three times champion Williams playing her first match since falling to Simona Halep in the Wimbledon final married her trademark power with quick movement and a steady stream of booming serves to overwhelm Belgian Mertens It feels good Williams said of her return to the hard court surface Definitely feels different as I didn t play a ton this year on hardcourts but it feels good to be back out here Williams is keen to get more hard court matches in before going for a record equalling 24th career Grand Slam title at the Aug 26 Sept 8 U S Open and she took some time to hit her stride on Wednesday After a pedestrian start Williams raised the intensity during a lengthy four deuce service game in the first set that she closed out with a thundering ace to go ahead 4 3 and set the tone for the rest of the 75 minute match She went on to win six of the final seven games to seal the win Williams will face Russian qualifier Ekaterina Alexandrova in the last 16 and a win would set up a potential quarter final with U S Open champion Naomi Osaka which would be their first encounter since last year s controversial New York final Earlier on Tuesday Japanese second seed Osaka won the first set against Tatjana Maria 6 2 and advanced when the German qualifier retired I thought I played really well despite the fact that we only played one set said Osaka I m just happy that it was my first match in a while and I was able to get in the groove of things quickly By reaching the last 16 Osaka is set to unseat Australian Ash Barty who lost her second round match on Tuesday as world number one next week though Karolina Pliskova also has a chance to reclaim top spot if she reaches the semi finals The Czech third seed beat American qualifier Alison Riske 6 4 6 7 4 6 2 and will next face Estonian Anett Kontaveit who was beating Carla Suarez Navarro 7 5 3 1 when the Spaniard retired with a hip injury Fourth seed Halep survived a stern test from American qualifier Jennifer Brady with a 4 6 7 5 7 6 5 victory to reach the last 16 and keep alive her hopes of winning a second consecutive Rogers Cup title Halep playing her first match since Wimbledon needed a medical timeout to get treatment on her left leg and even after building a 4 0 cushion in the deciding set had to dig deep after Brady mounted a comeback I was tired in the third set I felt the Achilles since the first point of the match but it s normal after a break and also coming on the hard courts said Halep It s very difficult for the ankles and also for the knees Next up for Halep will be Russian wildcard Svetlana Kuznetsova who got by Croatia s Donna Vekic 7 6 4 6 3
Among the other players advancing were Ukrainian sixth seed and 2017 champion Elina Svitolina Ukrainian teenager Dayana Yastremska Latvian Jelena Ostapenko Canadian Bianca Andreescu and Swiss Belinda Bencic |
WMB | Chadwick has 500 000 reasons to be excited | By Alan Baldwin
LONDON Reuters Jamie Chadwick will be in the money to the tune of 500 000 on Sunday if she makes motor racing history as the first champion of the all female W Series
The 21 year old Briton enjoys a 13 point lead going into her final home round at Brands Hatch with Dutch racer Beitske Visser the only woman who can stop her claiming the winner s jackpot
The payday more than the annual wages of some current grand prix drivers and the publicity could boost her hopes of eventually becoming the first woman since 1976 Italian Lella Lombardi to race in Formula One
At the moment I m more excited than anything else I just really want to get going she told Reuters
It s hugely important she added of the significance of winning the title
Every race every championship you go into you want to win but this one especially in its first year and for everything it s managed to generate for me To win it would be a huge thing and a huge part of my career going forward
She said the money would help fund the next stage of her career wherever that might be and would make a massive massive difference
In simple terms Chadwick needs only a podium finish to take the title something she has managed in all five rounds so far having led the standings from her opening victory from pole position in Hockenheim in May
Brands Hatch is fond and familiar territory the southern circuit where last year she became the first female driver to win a round of the British Formula Three championship
Going there feels like we ve got the odds stacked in our favor but I don t want to let that jinx anything said Chadwick who has won two races and this year became a development driver for the Williams NYSE WMB Formula One team
Anything can happen I think just go in like I ve gone in to every other race and hopefully we can perform and do the job we need to
It s going to be a close fight and I guess that s great for the championship I would have liked to have dominated but it means that I ve had some good racing this year which is ultimately what they are out to achieve
CHANGED ATTITUDES
To get to Formula One drivers need a super license that requires 40 points acquired in junior series with a national F3 championship worth 10 Next year the W Series winner will also get points
Chadwick said that was a big plus for the series credibility making the dream of Formula One much more attainable for female racers
The series met some criticism when it was first announced with some prominent female racing drivers opposed to any segregation on track
Chadwick felt the reality with the series always stating it wanted to prepare women to take on the men in junior series such as Formula Three and Formula Two had changed some preconceptions
I think definitely attitudes have changed big time she said of a series that uses identical 1 8 liter Formula Three cars with drivers sharing data and switching cars from race to race to ensure fairness
Naturally there are still some critics but I think generally the reception to at least the first race was really positive
I think a lot of people have started to change their minds about it and see it for what it is and what the W Series are trying to do
I m enjoying every minute of it
The overall runner up will get 250 000 with 125 000 for third place and prize money through the field |
WMB | Tennis Pliskova into Toronto quarters Andreescu awaits | By Frank Pingue TORONTO Reuters Serena Williams NYSE WMB and Naomi Osaka advanced to the Rogers Cup quarter finals on Thursday to set up their first meeting since the American s infamous row with an umpire overshadowed last year s U S Open final Osaka won her first career Grand Slam at Flushing Meadows but the title match will be remembered for Williams feud with Carlos Ramos who warned her for a coaching violation before deducting a point and then a game for her behaviour Williams a three times Rogers Cup champion overcame a sluggish start on Thursday to earn a 7 5 6 4 win over Russian qualifier Ekaterina Alexandrova Japanese second seed Osaka then closed out the day s action with a 7 6 4 6 4 win over Polish qualifier Iga Swiatek I ve been actually looking forward to playing her for a while Williams said of the Osaka matchup Williams who is eager to get more hard court matches under her belt before seeking a record tying 24th career Grand Slam at the U S Open came back from an early double break down helped in part by eight double faults by Alexandrova in the first set The American eighth seed in her first career meeting with Alexandrova went down a break again and trailed 3 1 in the second but her serve suddenly started to click as she stormed back to 3 3 and from there raced home She played really well She didn t really give me any rhythm Williams said I wasn t sure what would come if it was going to be hard or soft or a winner or what so it was definitely a challenge for me Osaka also had her hands full and needed to save a pair of set points before grabbing the opener against Swiatek The Japanese made a quick start to the second set and seemed in control until Swiatek made a comeback the 18 year old winning over the crowd with her versatile play as the match wore on Osaka 21 said she was excited about the chance to play Williams someone she grew up watching and has beaten in their two previous meetings Whenever I get the opportunity to play her it s something that I feel is a once in a lifetime opportunity said Osaka It feels more like I am showcasing my skills to her like look what I can do So I will go into the match with that mentality Defending champion Simona Halep in her first event since winning last month s Wimbledon needed 67 minutes to secure a 6 2 6 1 win over Russian wildcard Svetlana Kuznetsova Halep took a medical timeout in her previous match to have her left Achilles tended to and she said she still felt pain in the area against Kuznetsova but that it was feeling much better The fact that I m back in the quarter finals here means a lot to me said Halep It feels like I m getting back the rhythm which I had in Wimbledon Up next for Halep will be in form Czech qualifier Marie Bouzkova who breezed by former French Open champion Jelena Ostapenko 6 2 6 2 and has yet to drop a set Earlier on Thursday Czech third seed Karolina Pliskova beat Estonian Anett Kontaveit 6 3 7 5 to set up a last eight meeting with Canadian Bianca Andreescu who upset Dutch fifth seed Kiki Bertens 6 1 6 7 7 6 4
Also securing passage to the last eight were American Sofia Kenin and 2017 champion Elina Svitolina of Ukraine |
BMY | Bristol Myers BMY Beats On Q2 Earnings Lifts Outlook | Bristol Myers Squibb Company s NYSE BMY second quarter 2016 earnings of 69 cents per share beat the Zacks Consensus Estimate of 67 cents and increased 30 from the year ago figure Total revenue of 4 87 billion was also above the Zacks Consensus Estimate of 4 63 billion Reported revenues improved 17 year over year Strong product sales drove the top line in the quarter
Opdivo Continues to Deliver
Global revenues increased 18 when adjusted for foreign exchange impact Excluding Abilify and Erbitux global revenues were up 24 or 26 adjusted for foreign exchange impact
While sales in the U S markets surged 46 to 2 7 billion international revenues were down 6 International revenues declined primarily due to lower hepatitis C virus HCV sales in Japan and France Adjusted for foreign exchange impact international revenues were still down 4
Leukemia drug Sprycel registered sales of 451 million up 11 Melanoma drug Yervoy contributed 241 million to the top line during the reported quarter down 19
Opdivo approved for multiple cancer indications generated revenues of 840 million significantly higher than 704 million in the first quarter of 2016
However performance of key drugs in the Virology unit was disappointing Sales of Baraclude declined 13 to 299 million Both the Reyataz and Sustiva franchises tanked 18 and 15 to 247 million and 271 million respectively
Nevertheless sales of Eliquis were 777 million during the reported quarter up 5 9 sequentially Bristol Myers has a partnership with Pfizer Inc NYSE PFE for Eliquis The HCV franchise at Bristol Myers contributed 546 million to the company s top line in the quarter up 14 Orencia revenues were up 29 to 593 million
Adjusted research and development R D expenses in the quarter increased 13 1 to 1 1 billion while marketing selling and administrative expenses rose 9 4 to 1 2 billion
2016 Earnings Outlook Upped Again
Bristol Myers has raised its earnings outlook for 2016 yet again The company now expects earnings in the range of 2 55 to 2 65 per share old guidance 2 50 to 2 60 The Zacks Consensus Estimate stands at 2 63 per share
R D expenses are now expected to increase in the mid teen range Previously the company had anticipated R D expenses to increase in the low double digit range BRISTOL MYERS Price Our Take
Bristol Myers delivered another strong quarter with both the top and bottom lines beating estimates Robust sales of drugs like Opdivo Orencia Eliquis and Sprycel in the reported quarter drove top line growth The company raised its earnings guidance once again for 2016 which is encouraging Meanwhile we are positive on Bristol Myers efforts to develop its pipeline We expect investor focus to remain on updates regarding the company s high profile immuno oncology drug Opdivo going forward Bristol Myers carries a Zacks Rank 2 Buy A couple of other favorably ranked stocks in the health care sector are Innoviva Inc NASDAQ INVA and ANI Pharmaceuticals Inc NASDAQ ANIP each sporting a Zacks Rank 1 Strong Buy |
WMB | USD Taking Stock | The sell off in risk assets has taken a pause but until a trade deal is done investors will be reluctant to buy the dip
USD Are stock markets telling Trump he pushed too hard
The sell off in risk assets has taken a pause after slightly more optimistic remarks from President Trump on the prospects of a US China trade deal over the next three to four weeks The reality is however that both sides have announced another round of tariffs and until a deal is done investors will be reluctant to buy the dip We should also be hearing by the end of this week whether Washington wants to push ahead with tariffs on auto imports There is far less cross party support in Congress for these but Trump could be tempted to take action to satisfy his base In addition the Chinese yuan remains vulnerable Overnight the People s Bank of China fixed USD CNY at 6 8365 not far away from model based estimates But the market based levels of the fixing hint that the PBOC may not throw the kitchen sink at USD CNY to keep it below 7 00 Let s see For today we should expect a modest bounce in US equities after yesterday s 2 4 sell off and focus on data NFIB small business optimism and Federal Reserve speakers John Williams NYSE WMB 0915CET Esther George 1845 Expect DXY to consolidate in the 97 00 97 50 range but a new low for the year in two year USD swap rates and the speculation as we saw yesterday of China mulling the sale of US assets should favour defensive positions in the Japanese yen over coming weeks USD JPY may well top out at 109 80 110 00
EUR German ZEW in focus
Were it not for the trade tension this week could have been a good one for the European re rating story The German ZEW investor sentiment index is expected to stabilise for the first time since its collapse from last Autumn and tomorrow s 1Q19 German GDP should be encouraging Given trade headwinds and no support from European Central Bank policy inflation expectations are on their lows it s hard to see anything other than a short squeeze supporting the euro Thus the 1 1260 1300 area will prove sticky resistance for EUR USD
GBP Could wage data re kindle the prospect of a November hike
There have been quite a few articles written on how the market is happy to ignore Governor Mark Carney s warning of earlier rate hikes Another strong UK wage figure today could question the 7 basis points of Bank of England hikes priced in over the next year That may be enough to swing cable back to the top of the near term range at 1 3050 3100
CZK Inflation has peaked and so has the CZK
As Jakub Seidler repeated yesterday we think Czech inflation peaked in March We also think the rate cycle is over and following a recent investor trip to the US our team believes US real money fails to appreciate the downside risks to the Czech koruna over coming quarters We target EUR CZK at 26 30 on a 12 month view
This publication has been prepared by ING solely for information purposes irrespective of a particular user s means financial situation or investment objectives The information does not constitute investment recommendation and nor is it investment legal or tax advice or an offer or solicitation to purchase or sell any financial instrument Read more
Original post |
WMB | Markets Steady After A Weak Week | Most markets still in the red despite rebound
Friday s action was one of consolidation in the Asian session with most assets classes still in the red for the week despite the rebound seen in the last few days The US30 index is down 0 33 on the week after bouncing off the 55 week moving average at 25 267 The NAS100 has fallen 0 14 and the S P 500 0 35
In the currency sphere AUD USD is languishing near 4 1 2 month lows after a disappointing week as the market interpreted recent data releases as an input that would push the RBA to an easing bias possibly as early as next month s meeting AUD USD is up 0 07 today at 0 6893 USD JPY has seen some profit taking and a scaling back of safe haven yen buying this week and is almost flat on the week It s now at 109 88 after touching 109 01 earlier in the week The FX pair could snap a four week losing streak this week
USD JPY Weekly Chart
Source OANDA fxTrade
Singapore exports contract further
Singapore s non oil domestic exports contracted again in April the second month in a row and this time by 10 0 y y following an 11 8 decline in March The major culprits for the decline were a 31 1 decline in shipments to Japan and 25 4 to the Euro zone Shipments to the US increased by 2 2 from a year ago
The Singapore dollar weakened further after the release of the data falling as much as 0 1 versus the US dollar to 1 3735 the weakest level since December 27 USD SGD is now trading above the 61 8 Fibonacci retracement of the decline from October to January The 78 6 retracement will be found at 1 3780
USD SGD Daily Chart
Source OANDA fxTrade
Are we due a Hong Kong growth revision
Hong Kong releases final economic growth numbers for the first quarter of this year later today The first estimate showed the economy expanded 0 5 from a year earlier with government spending the major contributor Despite the fact that China reported steady growth of 6 4 y y in the same quarter there is still a risk that the Hong Kong numbers could be revised lower
Such an outcome could indicate that Q2 performance might not be as buoyant and could result in a negative reaction across asset classes The data is released at 0830GMT
Euro zone consumer prices feature
Consumer prices in the Euro zone are expected to show a slower pace of increase in April according to the latest survey of economists Prices probably rose 0 7 m m after spiking to 1 0 in March the highest reading in 13 months
It s a slow calendar in North America with US Michigan sentiment seen improving to 97 5 in May from 97 2 Speeches from Fed s Clarida and Williams NYSE WMB complete the week
Original post |
WMB | Danske Daily Market Sell Off Takes A Breath | Market movers today
The US China trade war might be entering a quiet phase after the recent round of escalation The next thing to look for is any news on more Chinese stimulus and more specific information on when the next round of talks in Beijing could take place While things may calm down for now we still see a risk of another flare up later as the two sides seem far from each other on the final critical bits of the deal More financial stress is needed in our view to get enough pressure to reach a deal For more on this see also China Weekly Letter China strikes defiant tone recovery postponed 16 May 2019
On the data front it is a very light day We have the final euro area HICP for April out where we see scope for an upward revision in both core and headline inflation by 0 1pp In the afternoon the US releases preliminary consumer confidence for May from the University of Michigan We also have the Fed s Williams NYSE WMB voter neutral speaking tonight
Selected market news
After a dreadful start to the week risk sentiment recovered some ground on Thursday despite President Trump s decision to add more fuel to the fire with his executive order that effectively bans Chinese telecom firms Huawei and ZTE HK 0763 doing business in the US We still struggle to see a trade deal coming until there has been another round of escalation and sell off in the markets that creates the needed pressure for both sides to meet each other halfway
European equities shrugged off the trade angst and advanced for a third day in a row while Bunds sold off slightly and peripherals performed with the 10Y Italian government bond yield tightening some 7bp vs Germany However considering the recovery in European equities the change in 10Y Bund yields was still limited underlining that yields are not just depressed due to weak risk appetite but also due to a general pessimism in the market about the outlook for growth and inflation Market inflation expectations headed further South with 2y2y inflation swaps dropping below 1 for the first time since 2016 see here Hence even if the positive risk appetite continues next week we do not expect any significant fixed income sell off in core markets
In the US the market also reversed some of the pricing of Fed cuts seen earlier in the week after Fed speakers Brainard and Kashkari did little to support the market s expectation of the Fed cutting rates before year end Treasuries gave back some of this week s gains lifting 10Y yields back above 2 40 An outlier to the risk on move was emerging markets equities with the MSCI Emerging Markets Index falling to its lowest level against developed markets stocks since November
In the UK pressure on PM Theresa May to resign over her failure to deliver Brexit is mounting After a meeting with the Conservatives Party leadership the embattled premier agreed to set out a timetable for a Tory leadership race after the Withdrawal Agreement Bill is put to a vote in the House of Commons in the first week of June
Scandi markets
No releases in the Scandi countries today
Fixed income markets
We think that pricing of cuts from the ECB is premature as the possibility of for example tiering is very low Hence in Government Bonds Weekly we recommend to pay 9m3m EONIA We also take a closer look at the Italian bond curve and despite the recent spreadwidening we stay side lined in respect of BTPs given the political risks But we do repeat our cautious recommendation from last week to buy the 1Y BOT We also take a closer look at the new 20Y Dutch green bond that is due next week
Note the Danish FI market is closed today Bank holiday
FX markets
The main driver of FX markets yesterday was the recovery in risk sentiment which also helped send equities and commodity prices up USD JPY rose back towards the 110 level Scandies were bid and EUR USD fell below 1 12 as the market also reversed some of the pricing of Fed cuts In the big picture we do not expect yesterday s risk on move to extend much further in the short term For that we need substantial good news either on the trade war front data front or from more dovish central bankers |
WMB | Three Day Rebound Puts S P 2900 Insight | Index Futures Net Changes and Settlements
Foreign Markets Fair Value and Volume
In Asia 7 out of 11 markets closed lower Shanghai Comp 2 48 Hang Seng 1 16 Nikkei 0 89
In Europe 12 out of 13 markets closed lower CAC 0 72 DAX 1 13 FTSE 0 51
Fair Value S P 1 68 NASDAQ 11 80 Dow 1 49
Total Volume 1 67 million ESM 172 SPM traded in the pit
Today s Economic Calendar
Today s economic calendar includes Quarterly Services Report Advance 10 00 AM ET Consumer Sentiment 10 00 AM ET Richard Clarida Speaks 10 00 AM ET E Commerce Retail Sales 10 00 AM ET Leading Indicators 10 00 AM ET John Williams NYSE WMB Speaks 11 15 AM ET Baker Hughes Rig Count 1 00 PM ET Richard Clarida Speaks 1 40 PM ETm and John Williams Speaks 2 00 PM ET
S P 500 Futures Algo Down Algo Up
During Wednesday nights Globex session the S P 500 futures ESM19 CME printed a high of 2868 00 a low of 2840 50 and opened Thursday s regular trading hours at 2859 75
After the 8 30 CT bell the futures barely down ticked trading straight up to 2880 50 a 20 handle move in the first half hour It wasn t done there either Buying was strong all morning and the ES had set its sights on 2900 but ended up topping out at 2894 00
As the afternoon rolled around the futures had started to back off the highs a little and by 1 15 had traded back down to 2880 75 After some back and fill up to 2889 00 the ES continued lower going into the close and when the 2 45 cash imbalance reveal came out showing 589M to sell it had traded down to 2874 00 The futures would then end the day on a strong note printing 2877 75 on the 3 00 cash close and 2878 50 on the 3 15 futures close
In the end the overall tone of the ES was strong in the first half of the day and weak in the second half of the day In terms of the days overall trade total volume was lower than recent days with 1 7 million futures contracts traded
Disclaimer Trading Futures Options on Futures and retail off exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors You should carefully consider whether trading is suitable for you in light of your circumstances knowledge and financial resources Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person s authorizing such transaction s BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE S AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
Original post |
WMB | Tariff Wars And Slower Global Growth | Foreign Markets Fair Value and Volume
In Asia 6 out of 11 markets closed lower Shanghai Comp 0 41 Hang Seng 0 57 Nikkei 0 24
In Europe 12 out of 13 markets closed lower CAC 1 47 DAX 1 43 FTSE 0 89
Fair Value S P 1 44 NASDAQ 10 06 Dow 4 01
Total Volume 1 92 million ESM 284 SPM traded in the pit
Today s Economic Calendar
Today s economic calendar includes Chicago Fed National Activity Index 8 30 AM ET Raphael Bostic Speaks 8 50 AM ET Patrick Harker Speaks 9 30 AM ET John Williams NYSE WMB Speaks 1 00 PM ET Richard Clarida Speaks 1 00 PM ET and Jerome Powell Speaks 7 00 PM ET
S P 500 Futures Late China Headlines Weaken The Index Markets
During Thursday nights Globex session the S P 500 futures ESM19 CME printed a high of 2882 50 a low of 2852 50 and opened Friday s regular trading hours at 2853 00
After a 25 handle selloff overnight the ES was able to gather some strength going into the 8 30 CT open and traded up to an early high at 2867 50 From there the futures did a little back and fill down to 2857 75 before buyers stepped in and started squeezing the overnight shorts By 10 15 the ES had rallied up to 2887 25 30 handles off the low
Once the morning high was established the futures made a run for some sell stops eventually trading back down to 2869 00 before consolidating in a sideways range until the late afternoon At 2 00 CNBC came out with a headline announcing that trade talks with China had stalled and the ES tumbled down to 2857 50
When the 2 45 cash imbalance reveal came out showing 1 3 Billion to sell the ES had popped back up to 2864 25 It would then go on to print 2860 75 on the 3 00 cash close and 2862 50 on the 3 15 futures close ending the week on a low note and down 16 handles on the day
In the end the overall tone of the ES was weak In terms of the days overall trade total volume was high with 1 9 million futures contracts traded
Disclaimer Trading Futures Options on Futures and retail off exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors You should carefully consider whether trading is suitable for you in light of your circumstances knowledge and financial resources Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person s authorizing such transaction s BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE S AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
Original post |
C | TOPWRAP 6 US launches support plan big mining merger axed | U S launches 800 bln support plan EU France to follow
U S contracts China to slow German recession confirmed
BHP calls off bid for Rio Tinto citing economic slowdown
U S stock futures jump on U S consumer lending plan
For more stories on the global crisis click
By Mike Peacock
LONDON Nov 25 Reuters The United States and Europe
prepared fresh measures on Tuesday to tackle a sharp economic
downturn which top miner BHP Billiton cited in abandoning a 66
billion bid for Rio Tinto
The U S economy contracted by 0 5 percent in the third
quarter revised data showed and authorities announced an 800
billion life support scheme for the U S financial system
A further deterioration is expected this quarter putting
the world s largest economy into recession stretching into 2009
Wary of the effects of the worst financial crisis in 80
years BHP Billiton called off its hostile bid for rival Rio
catching markets off their guard
We have concerns about the continued deterioration of
near term global economic conditions the lack of any certainty
as to the time it will take for conditions to improve and the
risks that these issues imply for shareholder value BHP
Chairman Don Argus said in a statement
U S consumers cut spending at the steepest rate in 28
years according to a Commerce Department report underlining how
rapidly activity was slowing
China the world s biggest consumer of many metals this
month unveiled a 4 trillion yuan 586 billion spending package
to prop up its economy but growth would still likely slow to
around 7 5 percent in 2009 the World Bank said
That would be China s slowest growth rate since 1990
Official data confirmed Germany is in recession for the
first time in five years
And falling consumer and business morale in Italy and France
pointed to a continent heading for a prolonged recession with a
surprise tick up in consumer sentiment in Germany seen as an
isolated and temporary blip
U S PUTS UP 800 BLN
After Britain announced on Monday a 20 billion pounds fiscal
boost including a 2 5 points cut in value added tax the United
States and European Union put their shoulders to the wheel
The U S Federal Reserve announced a 600 billion programme
to buy mortgage related debt and securities and a 200 billion
facility to back consumer loans including student auto and
credit card loans
This action is being taken to reduce the cost and increase
the availability of credit for the purchase of houses which in
turn should support housing markets and foster improved
financial conditions more generally a Fed statement said
What started more than a year ago as a meltdown in the U S
market for high risk mortgages has engulfed the world freezing
access to credit sparking bank collapses and requiring the
financial bailout of entire countries
U S stock futures shot higher in response to the plan
European shares reversed earlier losses
The European Commission will propose on Wednesday measures
to stimulate the recession hit European economy including VAT
cuts and a call for lower European Central Bank rates
The draft proposal obtained by Reuters did not specify the
size of the stimulus plan which Germany said last week could be
worth some 1 percent of European Union gross domestic product
The French government will launch its own quite massive
stimulus in the next 10 days President Nicolas Sarkozy said
In less than 10 days we will announce a revival plan to
save the car industry and strengthen the building sector
Sarkozy said during round table discussions in northern France
A more reticent Chancellor Angela Merkel said the German
government would decide in January whether additional measures
to support growth were needed
RECESSION A REALITY
Paris based think tank the Organisation for Economic
Cooperation and Development projected the U S economy would
shrink 0 9 percent next year
It revised its forecast for the euro zone saying it would
contract 0 6 percent more than the 0 5 it had predicted
The recession which we are heading into now may turn out to
be even deeper and even the world economy at large may go into
recession OECD chief economist Klaus Schmidt Hebbel said
Bank of England Governor Mervyn King said Britain s fiscal
package would mitigate its recession but not solve it
The most pressing is to ensure that normal bank lending is
resumed he told a parliamentary committee Without that the
downturn in activity could become protracted and extremely
damaging
Following huge losses tied to the U S housing market
collapse banks continue to hoard cash rather than lend it to
each other to businesses and individuals
Corporate gloom was widespread eclipsing relief at the
rescue of number two U S bank Citigroup
AXA Europe s second biggest insurer based on premium
income cut its 2008 profit forecast and said its 2012 financial
goals were increasingly obsolete
The world s largest steelmaker ArcelorMittal is poised to
cut 16 percent of its U S workforce beginning in January the
Wall Street Journal said
Australia s Qantas airline cut its 2009 profit forecast and
Honda the world s top motorcycle maker said sales could stop
growing in 2009
Editing by Keith Weir |
C | European Markets Turn Negative U S Futures Decline | Current Futures Dow 84 50 S P 4 85 NASDAQ 3 00 European Trade Despite solid gains by European markets on Monday followed by another strong session on Wall Street European markets have reversed direction this morning and have traded in negative territory since the London open U S futures are also pointing to a weak start on Wall Street this morning During the overnight session further evidence emerged about the negative effects of the credit crunch on the business environment BHP Billiton the world s largest mining company retracted its offer for Rio Tinto citing difficulties in raising the necessary money for the transaction Both company s shares have traded very volatile since the announcement as the merge arbitrage positions were closed Rio fell 36 today while the BHP rose 11 The take over bid was valued at 66 billion U K Prime Minister Gordon Brown has adopted the classic measures against recessions higher taxes for the rich while at the same time increasing government spending mostly on infrastructure projects The decision is a departure from the state authorities commitment to keep the government deficit low which has formed U K policy during the past In the Asian markets the Nikkei gained 413 14 points 5 22 to 8 323 93 The Australian S P Asx rose 198 30 points 5 79 to 3 623 40 In Europe stocks traded in the red from the first minutes of trading The German Dax fell 82 72 points 1 82 while the Ftse decline 64 29 points 1 55 Crude oil moved very little since the start of the new trading day Crude oil for December delivery declined 1 05 to 53 05 Gold traded virtually flat during the Asian session despite trading lower earlier Bullion for immediate delivery fell 1 40 to 815 43 Previous Asian trade Asian shares are trading in the green after the U S equity markets posted the strongest two day rally in the past two decades on the Citigroup bailout The S P 500 rallied at 6 5 for a second consecutive day while the Dow rose almost 5 yesterday on the news that the government will bailout Citigroup which was the U S s largest bank some time ago Almost every bank rallied yesterday on the bailout news and by the end of the day the financial sector was leading the pack of gains in the equity markets Furthermore the government not only threw a huge support line to the bank but it also introduced a new bailout model The government will cover any losses that will result from the 300 billion of bad debt the bank had gathered across the years This is quite a subjective move since usually this off balance sheet s assets are not traded in a specific market and right now nobody wants these or needs them so their real value is close to zero It is very interesting how the Treasury will value this 300 billion worth of bad debt and more specifically what it is going to do with it since such a very large sum of taxpayers money are at stake In the mean time nobody finds only 25 billion for the auto industry which sums up a few millions of jobs |
C | FOREX Yen climbs volatile shares keep risk aversion high | Yen gains vs euro dlr pound slides
Risk aversion high shares recoup loss in choppy trade
High yielding Australian and New Zealand dollars tumble
Changes dateline byline adds quotes updates prices
By Naomi Tajitsu
LONDON Nov 25 Reuters The yen gained broadly on
Tuesday while currencies with high yields fell as global
recession fears returned to haunt financial markets keeping
stock markets volatile and risk demand low
Boosting the low yielding yen was an early slide in European
shares after optimism about news on Monday that the U S
government would rescue Citigroup quickly dissipated
Analysts said the market remained jittery about ongoing
problems in the banking sector which kept demand high to unwind
carry trades which use the yen to buy assets in higher yielding
currencies like the Australian and New Zealand dollars
The market is still braced for more news on bank rescues
which could potentially be positive said Michael Hart
currency strategist at Citigroup in London
But the fact that we re still looking for new policy
measures after all that has been done is a negative sign he
added
Ongoing signs of deep economic weakness also kept risk
demand low while comments from Bank of England Governor Mervyn
King that he may need to cut UK interest rates more than
expected reminded investors that more big rate cuts were in the
pipeline
Meanwhile media reports quoted European Central Bank
Governing Council member Ewald Nowotny as saying that the
central bank wants to keep some rate ammunition in reserve
bolstering the view that the ECB would refrain from aggressive
cuts seen by the BoE
The dollar fell 0 8 percent to 96 23 yen while the euro
dropped 1 17 percent to 123 15 yen
Putting selling pressure on the single European currency was
a 1 percent fall in European shares in early trade reversing a
near 9 percent rally on Monday
Stocks recovered to edge up 0 7 percent by 1138 GMT with
analysts citing month end demand for stocks to rebalance
investment portfolios but gains were limited as few traders
were interested in taking on significant risk
MORE EVIDENCE OF RECESSION
The euro fell 0 3 percent to 1 2868 extending losses after
data released early in the European session confirmed that the
German economy contracted by 0 5 percent in the third quarter
The two former mainstays of the German upswing investment
in machinery and equipment and exports have developed into
handicaps hardly an encouraging omen for 2009 Commerzbank
economist Christoph Weil said in a note to clients
Other surveys showed falls in confidence among French
businesses and Italian consumers
The high yielding Australian and New Zealand dollars lost
more than 2 percent against the U S currency while dropping
more than 3 percent against the yen as investors continued to
unwind carry trades
The dollar has also benefited from a sharp drop in risk
appetite as positions in risky investments are closed out and
their proceeds are converted back to the U S currency
The pound fell 0 6 percent to a session low of 1 5057
stung after the BoE s King said he may need to cut rates more
than the central bank would otherwise as banks have been slow to
pass on the effects of lower rates to customers
Traders also shed sterling positions after Monday s optimism
about stimulatory measures announced in the UK government s
Pre Budget report gave way to renewed fears about the weak
economic outlook and rising levels of debt
Investors awaited preliminary data on U S economic growth
in the third quarter at 1330 GMT as evidence mounts that the
U S economy is in a recession as the credit crisis continues to
batter the financial and auto industries
U S consumer confidence numbers for November and the
Richmond Fed index at 1500 GMT will also be closely eyed to
better gauge the health of the U S economy |
C | Savings banks mull sale of Itinere stake Kutxa | MADRID Nov 25 Reuters The Basque savings banks BBK
Kutxa and Vital are considering the sale of their 8 1 percent
stake in Spanish motorway company Itinere to Sacyr
for about 530 million euros 682 3 million a Kutxa
spokesman said on Tuesday
We are studying selling our joint stake in Itinere and we
have a commitment to sell to Sacyr the spokesman said
confirming a report in newspaper Cinco Dias
At the time of the merger between Itinere and other Spanish
motorway firm Europistas in November 2006 the three savings
banks agreed a sale option on their 8 1 percent in Itinere to
its core shareholder Sacyr at a price of 9 15 euros per share
subject to certain adjustments
The savings banks will book capital gains of some 371
million euros from the sale of the stake the Kutxa spokesman
said
A Sacyr spokeswoman said the stake sale option can be
exercised either between November 2008 and May 2009 or between
November 2010 and May 2011
The Spanish constructor has put up various assets for sale
including its 90 1 percent stake in Itinere with the aim of
reducing its heavy debt pile of over 18 billion euros
It is also selling its 20 percent stake in Spanish oil group
Repsol and sources have said Russia s LUKOIL
is in talks to buy it
The Itinere sale is taking longer than expected due to the
lack of interested buyers with only an infrastructure fund
owned by Citigroup still in the ring said sources close
to the matter
In the event that Citigroup or Sacyr decides to sell off
Itinere s motorways separately various concessionary companies
could be interested in buying them the sources said
Citi is in talks not just with Sacyr but also with other
concessionaries to whom it could sell some of the motorways in
Itinere s portfolio said a source involved in the process
In the hypothetical case that there is no agreement with
Citi Sacyr could negotiate the sale of Itinere s assets
directly with interested buyers a local analyst said
A source familiar with the operation said Barcelona based
motorway company Abertis is interested in three assets
which it currently shares with Itinere
Last week a financial source said that Italy s Atlantia
would be interested in buying Itinere s assets in Chile
and Brazil
Reporting by Jesus Aguado and Carlos Ruano Writing by Judy
MacInnes Editing by Rupert Winchester |
C | UPDATE 3 German inflation slows sharply in November | Recasts with preliminary pan German data
By Paul Carrel
BERLIN Nov 26 Reuters German inflation fell a full
percentage point in November slowed by lower fuel costs and
pointing to easing price pressures in the broader euro zone
preliminary data showed on Wednesday
The headline consumer price CPI measure slowed to 1 4
percent from 2 4 percent the Federal Statistics Office said A
Reuters poll had pointed to CPI of 1 6 percent
The slowdown the fourth in a row was led by a drop in
fuel costs which fell by between 8 1 percent and 10 0 percent
on the month in six states used to calculate the preliminary
national data ID nLQ64549
This is good news said Postbank economist Marco Bargel
said after the earlier release of state data
Easing inflation is the best economic stimulus programme at
the moment It supports purchasing power he added The
weakness in exports could at least partly be compensated by
stronger domestic demand
Fading exports dragged Germany into its first recession in
five years in the third quarter official figures released on
Tuesday showed
The German data provide the first insight into inflation
trends in the euro zone Germany s price index makes up close to
30 percent of the overall gauge for the single currency area
Slower German inflation could encourage the European Central
Bank to loosen borrowing costs further to counter the threat of
a lasting economic downturn The ECB next meets on Dec 4
In comments published on Wednesday ECB Governing Council
member Ewald Nowotny told Japan s Nikkei newspaper that receding
worries about inflation have made room for another ECB rate cut
The ECB targets inflation of close to but below 2 percent
over the medium term in the 15 member euro zone A Reuters poll
pointed to euro zone inflation due on Friday slowing to 2 4
percent in November from 3 2 percent in October
Economists expected German inflation to ease further
Natural gas prices will soon fall as well said Juergen
Michels at Citigroup So the inflation rate will sink further
in the coming months I would not be surprised if it fell below
the 1 percent mark on an annual average in 2009
German prices fell by 0 5 percent on the month in November
The EU harmonised price index HICP showed prices fell by
0 5 percent on the month with the annual measure easing to 1 5
percent from 2 5 percent in October
German HICP had been expected to fall by 0 3 percent on the
month Prices were tipped to rise by 1 7 percent on the year
Additional reporting by Noah Barkin Kerstin Gehmlich Dave
Graham and Erik Kirschbaum |
C | PREVIEW Hong Kong retail sales volume seen falling in Oct | What Hong Kong October retail sales
When Dec 1 at 4 30 p m 0830 GMT
Sales seen rising 3 3 percent volumes down 0 5 percent
HONG KONG Nov 28 Reuters Hong Kongers probably reined
in spending in October amid deepening turmoil in financial
markets and rising job insecurity with sales volumes forecast
to decline for the first time since January 2007 a Reuters
survey shows
The survey estimated a 0 5 percent dip in the volume of
October retail sales from a year earlier It projected a 3 3
percent rise in the value of sales the slowest growth since
April last year
The outlook is more pessimistic said Joanne Yim chief
economist at Hang Seng Bank The asset markets have yet to
find their bottoms and the unemployment rate has reverted to an
uptrend
The forecasts for October sales would mark a sharp slowdown
from previous months Retail sales by value increased 14 1
percent in the first nine months of this year from a year
earlier and rose 7 6 percent by volume
September sales totalling HK 20 9 billion US 2 7
billion rose 6 9 percent by value and 1 8 percent by volume
Hong Kong s economy slipped into recession in the third
quarter and is unlikely to rebound until the second half of
next year as its key trade and finance sectors are being hit by
the global financial and economic downturn
The weak economy has already prompted some lay offs
notably at investment banks and is making many people who are
in work worried about their job security and more reluctant to
spend analysts said
Consumer confidence in October was rocked by a highly
volatile stock market and continued weakening of the property
market A drop in tourism compared with October last year would
also have hurt sales as tourists account for 20 25 percent of
retail sales analysts said
Hang Seng Bank now expects retail sales volume to rise 4 8
percent and 1 3 percent in 2008 and 2009 respectively down
from its previous growth forecast of 6 percent and 2 percent
Yim said
A global survey by the Nielsen Company published this month
showed Hong Kong suffered one of the sharpest declines in
consumer confidence in the world between the first and second
halves of this year
Hong Kongers big investors in the stock market are
feeling the impact of heavy losses on the stock market as well
as a downturn in house prices As depressed corporate profits
are likely to crimp wage growth next year and force more
lay offs consumer confidence is expected to deteriorate
further prolonging the economic slump
Forecasts for October retail sales by value and volume
percentage change from a year earlier
Value Volume
Daiwa Inst of Research 7 0 2 0
JP Morgan n a 0 8
UBS 3 7 0 3
Hang Seng Bank 3 5 0
Citigroup 3 3 1 5
Standard Chartered Bank 3 3 0 7
ING Financial Mkts 2 8 1 0
Bank of East Asia 2 0 1 5
Median 3 3 0 5
September 6 9 1 8
US HK 7 8
Reporting by Susan Fenton Editing by Kazunori Takada |
C | RPT PREVIEW Hong Kong retail sales volume seen falling in Oct | Repeats story ahead of data
What Hong Kong October retail sales
When Dec 1 at 4 30 p m 0830 GMT
Sales seen rising 3 3 percent volumes down 0 5 percent
HONG KONG Nov 28 Reuters Hong Kongers probably reined in
spending in October amid deepening turmoil in financial markets
and rising job insecurity with sales volumes forecast to decline
for the first time since January 2007 a Reuters survey shows
The survey estimated a 0 5 percent dip in the volume of
October retail sales from a year earlier It projected a 3 3
percent rise in the value of sales the slowest growth since
April last year
The outlook is more pessimistic said Joanne Yim chief
economist at Hang Seng Bank The asset markets have yet to find
their bottoms and the unemployment rate has reverted to an
uptrend
The forecasts for October sales would mark a sharp slowdown
from previous months Retail sales by value increased 14 1
percent in the first nine months of this year from a year earlier
and rose 7 6 percent by volume
September sales totalling HK 20 9 billion US 2 7 billion
rose 6 9 percent by value and 1 8 percent by volume
Hong Kong s economy slipped into recession in the third
quarter and is unlikely to rebound until the second half of next
year as its key trade and finance sectors are being hit by the
global financial and economic downturn
The weak economy has already prompted some lay offs notably
at investment banks and is making many people who are in work
worried about their job security and more reluctant to spend
analysts said
Consumer confidence in October was rocked by a highly
volatile stock market and continued weakening of the property
market A drop in tourism compared with October last year would
also have hurt sales as tourists account for 20 25 percent of
retail sales analysts said
Hang Seng Bank now expects retail sales volume to rise 4 8
percent and 1 3 percent in 2008 and 2009 respectively down from
its previous growth forecast of 6 percent and 2 percent Yim
said
A global survey by the Nielsen Company published this month
showed Hong Kong suffered one of the sharpest declines in
consumer confidence in the world between the first and second
halves of this year
Hong Kongers big investors in the stock market are feeling
the impact of heavy losses on the stock market as well as a
downturn in house prices As depressed corporate profits are
likely to crimp wage growth next year and force more lay offs
consumer confidence is expected to deteriorate further
prolonging the economic slump
Forecasts for October retail sales by value and volume
percentage change from a year earlier
Value Volume
Daiwa Inst of Research 7 0 2 0
JP Morgan n a 0 8
UBS 3 7 0 3
Hang Seng Bank 3 5 0
Citigroup 3 3 1 5
Standard Chartered Bank 3 3 0 7
ING Financial Mkts 2 8 1 0
Bank of East Asia 2 0 1 5
Median 3 3 0 5
September 6 9 1 8
US HK 7 8
Reporting by Susan Fenton Editing by Kazunori Takada |
C | WRAPUP 1 S Korea sees sharper slowdown as exports tumble | South Korean November exports slump 18 3 percent
Slowdown faster than expected government official warns
Inflation hits 7 month low bonds surge on rate cut hopes
By Cheon Jong woo and Seo Eun kyung
SEOUL Dec 1 Reuters South Korean exports suffered
their biggest drop in seven years prompting a warning from a
government that the economy was slowing faster than expected
and piling pressure on the central bank for more interest rate
cuts
Analysts said that as the global downturn cuts into exports
that have long underpinned growth in Asia s fourth largest
economy the authorities had no choice but to focus on sagging
domestic demand for some economic support
The speed of the economic slowdown is faster than
expected The economy is seen recovering in the second half of
the next year but the speed is likely to be very slow if
the situation remains tough a finance ministry official told
Reuters asking not to be identified
The official was speaking after the government announced
that November exports plunged 18 3 percent from a year earlier
much more than expected
Analysts painted an even bleaker picture
The figures showed the country s economy is going down the
tubes rapidly and indicated overall Asian exports are shrinking
very quickly Next year South Korean exports are expected to
post a fall probably up to 30 percent said Oh Suk tae an
economist at Citigroup
The Bank of Korea will cut interest rates next week
further but a 25 basis point cut will not be enough I expect
the BOK to slash rates to 3 percent in the next six months
Government bond futures surged after the export
data lifted by expectations of more rate cuts on top of 125
basis points of easing over the past two months
The central bank holds its next monthly rate meeting on
Dec 11
Imports fell 14 6 percent due to sliding raw material
prices also more than expected but not enough to improve the
deteriorating trade balance
South Korea reported a 13 3 billion trade shortfall during
the first 11 months of the year putting the country on course
for its first yearly deficit since 1997 when it was hit by the
Asian financial crisis
It is inevitable for the annual trade deficit to exceed
10 billion Chung Jae hoon director general for trade at the
ministry told reporters
In 2007 South Korea had a 14 6 billion trade surplus
With industrial output and export data pointing to a
growing risk of recession the central bank is now under
growing pressure for more rate cuts It may opt for another 50
basis point cut next week said SK Securities economist Song
Jae Hyeok
TRADE LOAN RATES CUT
In its latest moves the central bank said it had cut the
interest rates for loans that smaller exporters take out using
their trade bills as collateral by 20 30 basis points and
removed the two year limit on rolling over foreign exchange
borrowings where the funds are used for working capital
It also promised to continue to provide more financial
support until it runs out of a 10 billion pool for traders
One statistic which may make it more willing to cut rates
was consumer inflation which rose a less than expected 4 5
percent its slowest annual growth since April
With further signs of easing prices and exports shrinking
too sharply the government cannot help but rely on domestic
demand to avert a recession said Hyundai Securities
economist Lee Sang jae
To encourage households and businesses to spend more the
government will try whatever weapons it can employ including
fiscal spending and monetary easing
Writing by Jonathan Thatcher Editing by Tomasz Janowski |
C | GLOBAL MARKETS World stocks oil fall after grim data | MSCI world index down 1 percent at 217 84
Grim PMIs push stocks lower in Asia Europe
Yen surges 10 year US Treasury yield at 50 yr low
By Natsuko Waki
LONDON Dec 1 Reuters World stocks ended six consecutive
days of gains on Monday and oil prices tumbled boosting flows
into the low yielding yen as data showing slumping manufacturing
activity in China and Europe fanned concerns over the economy
U S Treasury prices rose across the board driving the
benchmark 10 year yield to a fresh five decade low as investors
flocked to safe and liquid government bonds
A closely watched survey showed euro zone manufacturing
activity sank to a level not seen in its 11 year history in
November The grim reading reinforced expectations the European
Central Bank would cut interest rates later this week to 2 5
percent or even lower
A similar survey from China also showed the manufacturing
sector deteriorated
The data is just so terribly poor that it s going to be
difficult for any kind of period of sustained uptrend in
confidence said Derek Halpenny European head of global
currency research at BTM UFJ
Until we re through the deterioration in the data then the
likelihood is that risk aversion will remain elevated and we ll
see renewed interest in lower yielding currencies
The MSCI world equity index fell 1 1 percent after rising 12
percent last week
The FTSEurofirst 300 index of leading European shares fell 3
percent following a gain of more than 13 percent last week with
banks and mining companies leading the way down
Equity markets had perked up last week after the U S
government rescued banking giant Citigroup the Federal Reserve
said it would buy up to 800 billion of mortgage related and
consumer debt and China cut interest rates
Trading was subdued due to the U S Thanksgiving holiday
last week but fund tracker EPFR Global said there were sizeable
inflows into European equity funds in the week
Oil dropped by more than 5 percent to 51 57 a barrel after
producer cartel OPEC decided to delay a decision on a third
supply cut until its next meeting later in December as economic
woes squeeze oil demand
YEN OUTPERFORMS
The low yielding yen rose around 1 8 percent to 93 78 yen
only a few yen away from the level where finance chiefs from the
Group of Seven issued a warning about excessive yen strength in
October
The Australian dollar fell 2 percent against the U S dollar
the New Zealand dollar dropped 3 percent and the pound
weakened by more than 1 percent
The yuan also tumbled against the dollar heading for its
biggest daily decline since its peg to the dollar was abolished
in July 2005 on speculation China might adjust foreign exchange
policy permitting more yuan weakness to stimulate its economy
A gauge of manufacturing activity in China showed the
sharpest monthly contraction in the data series 4 1 2 year
history on plunging new orders for export goods
The crucial question no longer is whether or not a global
recession has started but rather how long it will last said
Bank of America in a client note
The 10 year Treasury yield hit a 50 year low of 2 857
percent In Europe the December Bund future rose 73 ticks on
the day
Interest rate futures are fully pricing in the chance that
the ECB would lower the cost of borrowing by 75 basis points on
Thursday but some analysts are anticipating an even deeper cut
as inflationary pressures ease across the region
Additional reporting by Veronica Brown editing by Stephen
Nisbet |
WMB | NFL notebook Saints Thomas gets 100 million extension | All Pro Michael Thomas and the New Orleans Saints agreed to a five year 100 million contract with a 20 million signing bonus that will make him the league s highest paid wide receiver
According to multiple reports the deal includes 61 million in guaranteed money
Thomas will earn 1 1 million in the final year of his rookie contract in 2019 and the extension will lock him up with the Saints through the 2024 season He did not report to training camp while awaiting a new deal
The Saints drafted Thomas an Ohio State product in the second round of the 2016 NFL Draft
With Dak Prescott Ezekiel Elliott and Amari Cooper all seeking new contracts Cowboys vice president Stephen Jones voiced the team s reluctance to pay top tier money
They want to see the market Jones said of the trio We can t push the issue unless we want to be a market setter And we re damn sure not going to be a market setter because of all the things that go with being a Dallas Cowboy
We want to be fair We want our players to feel good about their contract But at the same time we don t want to do things that are out of line because we can t afford to be that way When we save money whether it s with Dak whether it s with Zeke whether it s with Amari it s not saving owner Jerry Jones and I a dollar It s just money that s going to go to another player We re very convicted that we re going to get these deals done
Days before his 42nd birthday New England Patriots quarterback Tom Brady said he d be open to discussing a new contract entering the last year of his deal
Have I earned it Brady asked rhetorically to reporters I don t know That s up for talk show debate What do you guys think Should we take a poll Talk for Mr Kraft No like I said we got a great relationship so we ll see how it goes
None of us are really promised anything he added I am trying to do the best I can do today and let those things work themselves out
The Washington Redskins reportedly are discussing the possibility of trading holdout Pro Bowl left tackle Trent Williams NYSE WMB and the Patriots could be a potential landing spot
Jeff Howe of The Athletic reported that while it s unclear what type of compensation the Redskins could be seeking there s a feeling around the league the Patriots would be involved
Newly signed Donald Penn told reporters he joined Washington for a chance to start at left tackle He added he spoke to Williams before signing but said he d prefer to keep that discussion private
Nick Buoniconti a Pro Football Hall of Fame linebacker and part of the undefeated 1972 Miami Dolphins died Tuesday night his family announced He was 78
Buoniconti struggled with dementia and was admitted to hospice care this week He said in 2017 he was convinced that the degenerative brain disease CTE caused by hits to his head while playing football had taken my life away and he arranged to donate his brain to science
Buffalo Bills center Mitch Morse who signed a record four year 44 5 million deal in March is in concussion protocol
He suffered a concussion Saturday but his symptoms surfaced later The concussion was diagnosed Tuesday and announced Wednesday by coach Sean McDermott
Atlanta Falcons rookie offensive lineman Kaleb McGary was scheduled to undergo cardiac ablation a procedure designed to correct heart rhythm issues
The team said McGary drafted 31st overall has had two similar procedures which are considered minimally invasive in the past No timeline for his return has been disclosed
The Baltimore Ravens waived 2018 fifth round pick Jordan Lasley a day after the wideout reportedly got into a fight at practice and threw a football into a pond
Lasley was taken at No 162 overall last year He made the 53 man roster but did not play in a game
The Miami Dolphins activated tight end Dwayne Allen from the physically unable to perform list
Allen missed the start of camp with an undisclosed injury He joined the Dolphins on a two year 7 million deal in March
The Houston Texans activated rookie tight end Kahale Warring from the active non football injury list
A third round pick Warring is expected to compete for a prominent rookie role
The Tennessee Titans placed wide receiver Cameron Batson on injured reserve with an undisclosed injury
Batson was injured Monday when he landed on his left shoulder during drills
The Kansas City Chiefs are experimenting with moving cornerback Tremon Smith to running back
A sixth round pick in 2018 Smith returned 33 kicks for 886 yards as a rookie He played 74 snaps on defense in 14 games breaking up one pass
Field Level Media OLUSSPORT Reuters US Online Report Sports News 20190801T013121 0000 |
WMB | NFL notebook Chargers reportedly ignore RB s trade demand | Los Angeles Chargers running back Melvin Gordon formally requested a trade through his agents ESPN reported Thursday but was informed the demand will be ignored
Per reports from ESPN and CBS the Chargers have no intention of facilitating a trade General manager Tom Telesco reportedly informed Fletcher Smith and Damarius Bilbo who represent Gordon that the running back won t be going anywhere
NFL Network reported Thursday that Gordon training in Florida has asked for a deal worth 10 million annually Per the report the Chargers did not change their original contract offer Telesco said previously that the Chargers expect Gordon to play for the team this season
Gordon 26 is subject to fines up to 40 000 for each day of training camp he misses The two time Pro Bowl selection is in the final season of his rookie contract and slated to make 5 6 million this season
Broncos coach Vic Fangio is dealing with a kidney stone but he still made his Denver debut in the evening s Hall of Fame Game
ESPN s Adam Schefter reported that Fangio had spent a good part of the day in a Cleveland hospital but hadn t passed the stone Broncos spokesman Patrick Smyth confirmed the 60 year old coach s condition on Twitter saying Fangio intended to coach against Atlanta
Fangio a 40 year coaching veteran with 32 seasons of NFL experience is in his first season as a head coach
All Pro center Ryan Kalil agreed to terms with the New York Jets coming out of retirement to help block for second year quarterback Sam Darnold
The deal pending a physical will be for one year and 8 4 million per NFL Network s Ian Rapoport
Kalil 34 first quit in December after his 12th NFL season all with Carolina The five time Pro Bowler and two time All Pro was the Panthers second round pick in 2007 out of USC
Cam Newton s return from offseason shoulder surgery remains a work in progress the Carolina Panthers quarterback said
Newton 30 underwent shoulder surgery in January after missing the final two games last season Head coach Ron Rivera said the team opened training camp with Newton on a pitch count after consulting with team doctors and Newton s surgeon
Newton could be used lightly in preseason games On Thursday Newton and many noteworthy veterans received a rest day
Running back Theo Riddick cut by the Detroit Lions on Saturday will sign with the Denver Broncos according to reports
Riddick 28 visited with Denver and New Orleans Saints after his release allowing Detroit to shed his 3 2 million salary
Riddick a sixth rounder out of Notre Dame in 2013 has spent his entire six year career with the Lions mainly as a third down back
Phil Dawson retired after 21 seasons and will sign a ceremonial contract to hang up his cleats as a member of the Cleveland Browns
To have the opportunity to come back home and retire with the organization and the city that I love is incredibly meaningful to me Dawson said in a statement
Dawson is seventh in NFL history with 305 regular season games played and eighth all time with 441 field goals He ranks 11th with 1 847 career points
Jacksonville Jaguars rookie linebacker Quincy Williams NYSE WMB will be sidelined four to six weeks with a slight meniscus tear multiple outlets reported
The third rounder from Murray State needs arthroscopic surgery to repair the knee and could miss the Sept 8 opener against Kansas City
Williams is one of the candidates to replace Telvin Smith as a starter on the weak side
San Francisco 49ers guard Joshua Garnett will miss three weeks after finger surgery coach Kyle Shanahan confirmed
Garnett 25 dislocated the finger Saturday and aggravated it on Sunday A first round pick in 2016 Garnett hasn t started since making 11 starts as a rookie He missed 2017 with a knee injury and played 59 offensive snaps in seven games last season
Garnett will become a free agent after the season
Offensive lineman Isaac Asiata retired from the NFL one week after signing with the Buffalo Bills
Asiata 26 cited constant anxiety persistent worry and fear of the unknown on social media Asiata was drafted out in the fifth round of 2017 playing two games for the Dolphins over his first two seasons
In a corresponding move the Bills signed offensive lineman Nico Siragusa a fourth round pick of the Baltimore Ravens in 2017
The Ravens signed safety Brynden Trawick marking a return to Baltimore for the defensive back special teams player who started his NFL career with the team in 2013
Contract terms weren t disclosed Trawick 29 spent the past two seasons with Tennessee after playing one year with Oakland
The Ravens signed Trawick as an undrafted free agent out of Troy in 2013 He played in 38 games with Baltimore over his first three seasons and was named to the Pro Bowl on special teams after his 2017 season with the Titans
Field Level Media |
WMB | Kubica pulls in the Polish fans for Hungary home race | By Alan Baldwin
BUDAPEST Reuters Robert Kubica has just one point to show for his comeback season and even that could be taken away but the Pole can still count on more support than most at the Hungarian Grand Prix
Tens of thousands of his compatriots are expected to make the journey to Budapest to support the country s first and only Formula One driver at what is the closest thing to a home race for the 34 year old
With Kubica absent from 2010 until this year due to a near fatal rally crash the Polish flags are out in force at the circuit where the Williams NYSE WMB driver made his debut with BMW Sauber in 2006
I knew Robert was popular but I don t think I quite realized how popular Claire Williams deputy principal of the last placed team told Reuters on Friday
Every race we ve been to the Polish fans seem to be following him around the world and bringing their big banners For us at the moment that s just a really nice thing to happen she added
I m really looking forward to this weekend and seeing all his fans out there I think it will be lovely for him as well And he deserves it
In a year when the dark clouds are hanging quite heavy over the team you ve got to take any positives haven t you
Kubica won the 2008 Canadian Grand Prix and hailed as a potential champion was set for a Ferrari NYSE RACE future before he partially severed his right forearm in the 2011 accident in Italy
His return to a race seat this year had all the ingredients of a feel good story until it became apparent that Williams were an age off the pace
The Pole has been a backmarker regularly lapped and having to look in his mirrors and move aside for the faster cars coming through
He has also lost out to George Russell his British rookie team mate and last year s Formula Two champion who has beaten him in nine races out of 11
The 10th place at last weekend s German Grand Prix in Hockenheim was Williams first point of the year but possible only because the Alfa Romeo drivers who finished ahead were hit with post race penalties and were demoted out of the points
Alfa Romeo have appealed and could win the points back Kubica is a realist about the situation and what the fans can expect
I would like to pay them back for their support with a good performance but I think this will be quite difficult looking at the season up to now he said
But still it s great to see such big support not only in Formula One they have been around also when I was rallying when I was doing some other racing series Hopefully they will enjoy their weekend |
WMB | Kvitova withdraws from Toronto event with forearm injury | TORONTO Reuters Twice Wimbledon champion Petra Kvitova has withdrawn from next week s Rogers Cup in Toronto with a nagging forearm injury Tennis Canada announced on Friday
The 29 year old Czech who won the Rogers Cup in 2012 initially injured her forearm while training in Paris ahead of the French Open and has not competed since her loss in the last 16 at Wimbledon last month
My forearm injury is continuing to cause some problems so on the advice of my medical team I have made the decision not to travel to Canada Kvitova said in a Tennis Canada news release I will really miss being in Toronto this year
The injury has interrupted what has been an impressive season for Kvitova who triumphed in Sydney finished runner up at the Australian Open and then won the title in Stuttgart
Kvitova was among the favorites going into the French Open but withdrew from the year s second Grand Slam before her first round match because of the forearm injury that she said at the time required her to take up to three weeks off
Due to Kvitova s withdrawal from Toronto Tennis Canada said three times champion Serena Williams NYSE WMB will now be a top eight seed and play her opening match on Wednesday |
WMB | NFL notebook Gruden doubtful Redskins will trade Williams | Washington coach Jay Gruden said Saturday it s unlikely the Redskins will try to trade holdout offensive lineman Trent Williams NYSE WMB The Redskins placed Williams on the reserve did not report list last week after he failed to show up for training camp
I would seriously doubt that So no Gruden responded when asked about trade rumors involving the Pro Bowl left tackle
Whether the disgruntled veteran can be enticed to rejoin the Redskins remains a mystery Williams is said to be unhappy with the medical staff after a tumor scare earlier this offseason and also would like at least an alteration to his contract
Williams 31 has reached seven consecutive Pro Bowls He has been with the Redskins since 2010 when they took him fourth overall in the NFL draft
Suspended New England Patriots wideout Josh Gordon has applied to be reinstated to the league according to multiple reports
Gordon 28 was suspended indefinitely by the NFL in December for violating the terms of his reinstatement from a yearlong ban for substance abuse
The Patriots have supported Gordon since the suspension offering him a restricted free agent tender which Gordon signed in April If he is allowed to play this season New England would welcome him back In 12 games with New England last season he caught 41 passes for 737 yards and four touchdowns
Indianapolis Colts quarterback Andrew Luck s left calf injury will keep him out of practice for at least another week
Luck suffered the injury in April and took part in three practices in training camp He told the Colts last week that he wanted to sit out until his calf was fully healed
He won t play in the preseason game Thursday at Buffalo and while coach Frank Reich would like him to see some preseason game action the team won t rush him Backup Jacoby Brissett is taking the first team snaps in practice but Reich said Luck is progressing in his recovery
Running back Spencer Ware vowed to play in the 2019 season despite a report he will have ankle surgery
The Indianapolis Colts placed him on the reserve physically unable to perform list and NFL Network s Ian Rapoport reported the surgery He added Ware would be sidelined five to six weeks The Colts and Ware are expected to reach an injury settlement
I am NOT done for season When things happen you have to adjust and treat accordingly Ware tweeted I m going to play THIS YEAR so there are things that need to be done before that happens that ll put me in the best case scenario MINOR MINOR MINOR setback because of timing
Oakland Raiders wide receiver Antonio Brown plans to visit a foot specialist The Athletic reported
Brown was briefly on the non football injury list when training camp opened but was cleared to practice on July 28 He has yet to be a full participant however The specific nature of the injury has not been revealed
The Raiders acquired the seven time Pro Bowl selection from the Pittsburgh Steelers in a trade in March and later signed him to a three year 50 125 million contract
The Denver Broncos signed running back Theo Riddick to a one year deal for 2 5 million with 1 million guaranteed according to Mike Klis of 9News in Denver
Riddick 28 was released by the Detroit Lions last weekend
The Broncos made room for Riddick by placing defensive lineman Billy Winn on injured reserve after he suffered a triceps injury in Thursday s Hall of Fame Game against the Atlanta Falcons according to Klis
Dallas Cowboys All Pro guard Zack Martin had an MRI after experiencing back spasms and will not practice this weekend
The Cowboys are encouraged by the test results but will take a cautious approach before he returns to action
Martin 28 has only missed two games in five seasons since the Cowboys picked him in the first round 16th overall of the 2014 NFL Draft The 6 foot 4 315 pound right guard has made the Pro Bowl all five seasons and earned All Pro first team recognition in 2014 2016 and 2018
The toe injury suffered by Atlanta Falcons quarterback Kurt Benkert in Thursday s Hall of Fame Game could cost him the backup role
Pushing veteran Matt Schaub for the No 2 spot behind Matt Ryan Benkert boosted his cause in the preseason opener by completing 19 of 34 passes for 185 yards and a touchdown against the Denver Broncos in Canton Ohio
Benkert 24 left with the injury during the fourth quarter of the Broncos 14 10 win On Saturday NFL Network characterized the injury as a major one while the Falcons announced they had agreed to terms with quarterback Matt Simms
Hall of Fame quarterback Warren Moon settled a sexual harassment lawsuit with a former employee of his sports marketing firm the woman s lawyer told The Washington Post The amount of the settlement was not disclosed
Moon originally denied the allegations when the lawsuit was filed in Orange County Superior Court in California in December 2017
The suit alleged he made unwanted and unsolicited sexual advances toward his executive assistant at Sports 1 Marketing
Field Level Media |
WMB | Israeli army in no rush to go fully robotic | By Dan Williams NYSE WMB
ELYAKIM ARMY BASE Israel Reuters Israel a world leader in hi tech is around 30 years away from its ambition of deploying robot forces and for now will chose between three prototypes of semi automated armored vehicles to cocoon its troops in battle defense officials said on Sunday
Israel has long eyed a future robot army as a means of reducing the use of soldiers on its combustible fronts with Gaza Lebanon and Syria just as its air force has increasingly relied on pilotless drones
The country draws most of its military personnel from teenage conscripts
An unveiling of Israel s newly developed operating suites for ground fighting vehicles made clear it plans to keep soldiers at the controls albeit entirely insulated from the outside Hatches battened the cabins will have smart screens fed by outside cameras and sensors instead of windows or ports
Now the people will be sitting in the tank it s closed they are far better protected and they can advance without worrying about snipers or other things said Brigadier General Yaniv Rotem head of the Defense Ministry s development unit
The prototype suites designed by Israel s top three defense firms as they compete for an army tender include artificial intelligence systems billed as spotting enemy fighters and directing the vehicle s counter fire at them automatically
Asked why Israel was not eliminating human involvement entirely and operating the vehicles remotely Rotem told reporters At the end of the day it is the man in the vehicle who takes the decision You need someone who thinks more than a machine
The Defense Ministry he said was separately devoting a lot of discussion to a potential robot army of the future
Our vision is 30 years from now a lot of autonomous capability he said
A second defense official said that while the suites could in theory be remote operated disruptions or delays in the signal would potentially impede their effectiveness in battle
Two of the competing systems appeared inspired by video games and other home technologies appealing to young soldiers
State owned Israel Aerospace Industries has Xbox style controls Rafael Advanced Defense Systems also state owned has a vehicle simulator with touch screens and animation whose terrain and characters garb recall Afghanistan a nod to the U S Army whose officers also inspected the display on Sunday
The third Israeli bidder Elbit Systems Ltd TA ESLT came up with adapted air force helmets whose inside visors provide a 360 degree view of the vehicle s exterior Rotem said Israel was already incorporating the helmets among its Merkava tank crews |
WMB | Former champs Wozniacki Bencic advance at Rogers Cup | Two former champions cruised through first round matches at the Rogers Cup on Monday as Denmark s Caroline Wozniacki and Switzerland s Belinda Bencic each won in straight sets in Toronto Wozniacki the 2010 winner of the event and the 15th seed this week handled Kazakhstan s Yulia Putintseva 6 4 6 2 in 87 minutes Bencic the 2015 winner and 11th seed this week dispatched Russia s Anastasia Potapova 6 2 6 1 in just 64 minutes Wozniacki overcame a sluggish start as her serve was broken in the first game of the match She quickly righted the ship thwarting the only other break point she faced and breaking Putintseva s serve twice in a row to close both sets The former world No 1 will next face the winner of Tuesday s match between Poland s Iga Swiatek and Australia s Ajla Tomljanovic Bencic broke Potapova to open each set and five times overall while never facing a break point on her own serve Her biggest challenge was closing out the match as she finally converted her fourth match point on the 17th point of the final game Bencic will next face Germany s Julia Goerges who survived Slovakia s Polona Hercog 6 3 1 6 7 6 5 Meanwhile Johanna Konta of Great Britain was quickly ousted as Ukraine s Dayana Yastremska upset the 13th seed 6 3 6 2 in 80 minutes It was Konta s first action since losing in the quarterfinals at Wimbledon American Sofia Kenin moved on with a 6 4 6 3 victory over Taiwan s Su Wei Hsieh setting up a second round meeting on Wednesday with world No 1 and top seed Ashleigh Barty of Australia Barty is 3 0 against Kenin in her career including two victories in 2019 Others to advance in the early wave on Monday were American Jennifer Brady Belgian Elise Mertens and Czech Marie Bouzkova each of whom will face a top eight seed in the second round on Wednesday Brady draws No 4 Simona Halep of Romania who won the event in 2016 and 2018 Mertens will face No 8 Serena Williams NYSE WMB a three time champion 2001 2011 2013 and Bouzkova will meet No 7 Sloane Stephens the 2018 runner up
Other seeded players in action late Monday included No 12 Angelique Kerber of Germany who was set to face Russia s Daria Kasatkina and No 16 Anett Kontaveit of Estonia who was taking on Russia s Maria Sharapova Field Level Media |
WMB | Konta Sharapova fall at Rogers Cup in Toronto | Reuters Upsets bookended the Rogers Cup on Monday with Ukrainian teen Dayana Yastremska beating British 13th seed Johanna Konta 6 3 6 2 early on in Toronto before Maria Sharapova fell 4 6 6 3 6 4 to Anett Kontaveit under the lights in the evening session
Estonian Kontaveit battled back from a set and a break down in the first round match to defeat the five time Grand Slam champion who entered the tournament as a wild card after injuries kept her out of action for much of the season
The Russian sent a forehand service return long on match point to end the engrossing two hour and 41 minute battle
Kontaveit will next face either seven time Grand Slam champion Venus Williams NYSE WMB or Spain s Carla Suarez Navarro who play their first round match on Tuesday
Earlier in the day Yastremska ranked 33rd in the world squandered four match points but took her fifth opportunity dispatching Konta with the clock barely ticking past noon on the Toronto hardcourt
The result avenged Yastremska s loss to Konta when the pair met at Eastbourne in June
The 19 year old from Odessa is having a breakout season after claiming two titles and producing a spirited run to the last 16 at Wimbledon
Russia s Daria Kasatkina recovered from a disastrous first set to upset 12th seed Angelique Kerber 0 6 6 2 6 4 while Latvia s Jelena Ostapenko 15th seed Caroline Wozniacki and American Jennifer Brady all advanced in straight sets at the WTA s Premier 5 event
In other matches 76th ranked American Jennifer Brady defeated 50th ranked Kristina Mladenovic of France 6 1 6 2 Swiss 11th seed Belinda Benic the 2015 champion beat Russian Anastasia Potapova 6 2 6 1 and 20th ranked Belgian Elise Mertens outlasted Aliaksandra Sasnovich of Belarus 3 6 6 3 6 1
Tuesday s schedule features world number one Ashleigh Barty taking on American Sofia Kenin and an all Canadian clash between Eugenie Bouchard and teenager Bianca Andreescu |
BMY | Will Q2 Earnings Hold A Surprise For Nielsen NLSN Stock | Nielsen Holdings N V NYSE NLSN is set to report second quarter 2016 results on Jul 26 Last quarter the company posted a positive earnings surprise of 2 08 Moreover Nielsen surpassed the Zacks Consensus Estimate in each of the last four quarters with an average surprise of 3 47 Let s see how things are shaping up for this announcement Factors at PlayNielsen is an information and measurement company which offers media and marketing information on what consumers watch and buy on a global and local basis The company reported decent first quarter results with both earnings and revenues matching the Zacks Consensus Estimate Also revenues were up 2 0 year over year due to solid performance by its Buy and Watch businesses Regular dividend payment and share repurchase program reflect Nielsen s financial strength and commitment to return value to shareholders Also the company s new products are doing well and should drive revenues in the upcoming quarter However continued investments in technology and infrastructure could weigh on margins and profitability in the to be reported quarter Earnings WhispersOur proven model does not conclusively show that Nielsen is likely to beat on earnings this quarter That is because a stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen That is not the case here as you will see below Zacks ESP Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 69 cents Therefore the Earnings ESP for Nielsen is 0 00 Zacks Rank Nielsen has a Zacks Rank 3 which increases the predictive power of ESP However the company s 0 00 ESP makes surprise prediction difficult We caution against stocks with a Zacks Rank 4 or 5 Sell rated going into the earnings announcement especially when the company is seeing negative estimate revisions NIELSEN HOLDNGS Price and EPS Surprise Stock to ConsiderHere are some stocks which you may consider instead as our model shows they have the right combination of elements to post an earnings beat this quarter CalAtlantic Group Inc NYSE CAA has an Earnings ESP of 9 21 and a Zacks Rank 1 The company is slated to report second quarter earnings results on Jul 28 Bristol Myers Squibb Company NYSE BMY has an Earnings ESP of 1 49 and a Zacks Rank 1 The company s second quarter earnings release date is Jul 28 CoreSite Realty Corporation NYSE COR has an Earnings ESP of 1 18 and a Zacks Rank 1 The company is slated to report second quarter earnings results before the market opens on Jul 28 |
BMY | Synta SNTA Cuts Q2 Loss Y Y Madrigal Merger In Focus | Synta Pharmaceuticals Corp NASDAQ SNTA reported a second quarter 2016 loss of 2 cents per share much lower than the year ago loss of 15 cents With no approved product in its portfolio at the moment the company does not generate revenues yet
In the second quarter of 2016 research and development R D expenses decreased by 16 5 million General and administrative expenses increased 14 9 year over year to 3 6 million SYNTA PHARMACT Price Focus on Merger
In Apr 2016 Synta announced that it will be merging with a privately held company Madrigal Pharmaceuticals Inc in an all stock transaction This combined company will focus on the development of novel small molecule drugs addressing major unmet needs in cardiovascular metabolic diseases and non alcoholic steatohepatitis NASH
MGL 3196 which is Madrigal s lead candidate is phase II ready for the treatment of NASH and heterozygous as well as homozygous familial hypercholesterolemia
Once the proposed merger closes Madrigal shareholders will own 64 of the combined company while Synta shareholders will own 36 The merger is slated to close in the third quarter of 2016
We note that Synta had earlier focused on cancer treatments but the company suffered a setback last year when it decided to terminate a phase III study GALAXY 2 on its lead pipeline candidate ganetespib for the second line treatment of advanced non small cell lung adenocarcinoma due to futility Thereafter the company implemented strategic restructuring and discontinued a substantial portion of its R D activities relating to ganetespib and its oncology pipeline
However the company continues to conduct limited activities with respect to ganetespib including providing support for a couple of ongoing investigator sponsored studies in ovarian cancer phase II GANNET53 and sarcoma phase I SARC 023 enrollment in both studies expected to be completed in 2017 Limited activities will also be continued for the candidates from its Hsp90 inhibitor drug conjugate HDC program including its lead HDC candidate STA 12 8666
Synta has decided not to pursue an investigational new drug IND submission for STA 12 8666 in the immediate future However the company is currently conducting pre clinical studies on STA 12 8666 to support an IND submission if it determines to pursue such a submission at some point in the future
We expect investor focus to remain on updates from the Madrigal transaction going forward
Investors looking for well ranked stocks in the health care sector can consider ANI Pharmaceuticals Inc NASDAQ ANIP Bristol Myers Squibb Company NYSE BMY and Innoviva Inc NASDAQ INVA All three stocks sport a Zacks Rank 1 Strong Buy |
WMB | Gold Climbs On Trump Tariff Threat But Unable To Consolidate | It has been a busy start to the week for gold The base metal gained ground in Monday s Asian session but has since given up most of these gains In the North American session the spot price for one ounce of gold is 1280 118 up 0 08 on the day On the fundamentals front the sole event is a speech from FOMC member John Williams WMB On Tuesday the U S releases JOLTS Job Openings
President Trump s warning of further tariffs against China sent equity markets sharply lower on Monday and briefly boosted gold prices as nervous investors snapped up safe haven assets such as gold On Sunday Trump threatened to raise tariffs on 200 billion worth of Chinese goods as early as Friday from 10 to 25 Trump sounded nonchalant about the trade talks saying that even if an agreement wasn t reached U S coffers would benefit from the new tariffs China has threatened to cancel the talks although it s unlikely that China will pull the plug Still the negotiations could stall which would likely dampen risk appetite and boost gold prices
Gold recorded strong gains on Friday gaining 0 67 percent The catalyst was mixed U S job numbers as nonfarm payrolls were strong but wage growth remained soft Average Hourly Earnings edged up to 0 2 up from 0 1 However this missed the estimate of 0 3 Nonfarm payrolls sparkled climbing to 263 thousand up from 196 thousand a month earlier The reading easily beat the forecast of 181 thousand The unemployment rate dipped to 3 6 in April down from 3 8 a month earlier This marked the lowest unemployment rate since 1969
XAU USD Fundamentals
Monday May 6
10 00 US FOMC Member Williams Speaks
Tuesday May 7
10 00 US JOLTS Job Openings Estimate 7 35M
All release times are DST
Key events are in bold
XAU USD for Monday May 6 2019
XAU USD May 6 at 11 55 DST
Open 1279 07 High 1285 86 Low 1277 11 Close 1280 11
XAU USD Technicals
XAU USD posted gains in the Asian session The pair was flat in the European session In North American trade XAU USD edged lower but has recovered most of these losses
1261 is providing support
1284 is weak resistance line It was tested earlier on Monday
Current range 1261 to 1284
Further levels in both directions
Below 1261 1243 and 1218
Above 1284 1306 1326 and 1344
Original Post |
WMB | U S Impose Additional Tariffs On China As Trade Negotiations Continue | JPY stabilized against the USD yesterday as some hopes surfaced about the US Sino negotiations in Washington US and Chinese officials began two day talks on Thursday in an effort to prevent any further escalation but the US has imposed additional tariffs on Chinese imports which came into effect at the US midnight today The additional US tariffs imposed could be followed by threats on more tariffs on a wider spectrum of Chinese products imported in the US Also the newly imposed US tariff hike could be part of wider negotiating tactic of the US especially as the Chinese side during the negotiations had persisted on the US tariffs being removed while the US side was quite hesitant We expect the next episode of the tariff saga to be the Chinese response however their options may be getting narrower We expect that in the long run the two sides will probably be able to reach a deal as both have enough incentives to do that however we also expect a bumpy rise until then The uncertainty in the markets is expected to increase and that could lead to some strengthening of the JPY especially if the Chinese response escalates the situation substantially USD JPY rose yesterday bouncing on the 109 75 S1 support line however corrected somewhat lower later on As the down ward trendline incepted since the 3rd of May was broken we switch our bearish outlook in favor of a sideways movement Should the pair s long positions be favored by the market we could see it aiming if not breaking the 110 30 R1 resistance line Should the pair come under the selling interest of the market we could see it breaking the 109 75 S1 support line and aim for the 109 15 S2 support level
Oil prices break higher on US Sino hopes
Oil prices rose during the Asian session today as hopes for progress in the US Sino negotiations rose Analysts point out that the market is rather headline driven and financial releases could be taking a backseat Especially the statements made by president Trump as well as his tweets remain in the main focus of the markets however also Caution is expected to return to the markets as the additional US tariffs have been enacted and we expect argumentation for a possible Chinese slowdown to strengthen undermining oil prices Should the US Sino negotiations break down or should the situation escalate further we expect oil prices to weaken WTI prices rose during today s Asian session breaking the 62 00 S1 resistance line now turned to support As the downward trendline incepted since the 25th of April was broken we switch our bearish outlook for the commodity in favor of a sideways movement Should the bulls take control of WTI s direction we could see it breaking the 63 25 R1 resistance line and aim for the higher grounds Should the bears take over we could see WTI prices breaking the 62 00 S1 support line and aim if not break the 60 50 S2 support hurdle
Other economic highlights today and early tomorrow
In the European session we get the trading data for March from Germany the UK GDP growth rate for Q1 along with UK s trade balance and manufacturing output growth rate both for March In the American session we get the US inflation rates for April and the US Baker Hughes oil rig count From Canada we get the employment data for April and the building permits growth rate for March In Monday s Asian session we get from Australia the housing finance growth rate for March As for speakers ECB s Lautenshlager and Coeure along with Fed s Brainard Bostic and Williams NYSE WMB speak
WTI H4 Support 62 00 S1 60 50 S2 59 10 S3 Resistance 63 25 R1 63 65 R2 66 25 R3
USD JPY H4 Support 109 75 S1 109 15 S2 108 50 S3 Resistance 110 30 R1 110 90 R2 111 40 R3 |
WMB | Euro Edges Higher U S Consumer Inflation Looms | EUR USD is slightly higher in Friday trade Currently the pair is trading at 1 1212 up 0 12 on the day On the release front Germany s trade surplus widened to EUR 20 0 billion in March up from EUR 18 7 billion a month earlier This is the first time that the trade surplus has exceeded the EUR 20 billion level since May In the U S the focus remains on inflation indicators with the release of consumer inflation reports CPI is expected to remain steady at 0 4 while the core reading is projected to rise from 0 1 to 0 2
The trade war saga continues with an ominous development on Friday U S President Donald Trump made good on his threat to raise tariffs on some 200 billion worth of Chinese goods from 10 to 25 Trump had announced the measure on Friday and global equity markets have been in flux the entire week as risk appetite has waned There had been hopes that the unpredictable U S president would change his mind ahead of the midnight Thursday deadline but those hopes were dashed China has promised retaliatory measures against the U S move Despite these tensions a high level Chinese delegation is in Washington to continue the trade talks and it is certainly in the interest of both sides to try and reach an agreement
What can we expect from the Federal Reserve which has kept a low profile At last week s policy meeting the Fed maintained its key interest rate and indicated that it was comfortable with current monetary policy and had no plans to raise or lower rates in the coming months However the U S economy has exceeded expectations with a sparkling GDP of 3 2 in Q1 and a sharp nonfarm payrolls of 263 thousand Will these sharp numbers make a rate hike more likely The markets don t think so According to the CME Group there is zero probability that the Fed will raise rates before 2020 Moreover there is a 60 likelihood that the Fed will cut rates before the end of 2019 This sentiment could weigh on the greenback as rate hikes make the currency more attractive to Fundamentals
Friday May 10
2 00 German Trade Balance Estimate 19 4B Actual 20 0B
2 45 French Industrial Production Estimate 0 4 Actual 0 9
2 45 French Preliminary Private Payrolls Estimate 0 2 Actual 0 3
Italian Industrial Production Estimate 0 6 Actual 0 9
Italian Retail Sales Estimate 0 3
8 30 US CPI Estimate 0 4
8 30 US Core CPI Estimate 0 2
10 00 US FOMC Member Brainard Speaks
10 00 US FOMC Member Williams NYSE WMB Speaks
14 00 US Federal Budget Balance Estimate 165 2B
All release times are DST
Key events are in bold
EUR USD for Friday May 10 2019
EUR USD for May 10 at 6 25 DST
Open 1 1214 High 1 1238 Low 1 1214 Close 1 1228
EUR USD Technical
EUR USD has posted small gains in the Asian and European sessions
1 1212 is providing support
1 1300 is the next resistance line
Current range 1 1212 to 1 1300
Further levels in both directions
Below 1 1212 1 1120 1 1046 and 1 0950
Above 1 1300 1 1434 and 1 1553
Original post |
WMB | U S Energy Consumption Production And Exports At Record Levels | This is the main reason I like KMI and WMB so much
Neither Kinder Morgan NYSE KMI or Williams Companies NYSE WMB are tied to the price of oil or gas What they are tied to is the volume transported of both The more produced used and exported the better off both are as they are main sources of transportation of both oil and gas Whether oil is at 90 or 70 does not matter as long as more of it is being shipped each day Same for nat gas
Owning both gives me an 50 market share of all natural gas shipped in the U S As nat gas continues to only grow as the primary energy source n the U S I think that is a good place to be
Additionally I get paid over 5 in dividends in both just to hold shares
EIA
The United States produced a record amount of energy from various sources in 2018 reaching 96 quadrillion British thermal units quads an 8 increase from 2017 This increase in production outpaced the 4 increase in U S energy consumption which also reached a record high of 101 quads At the same time U S energy exports increased 18 to a record high of 21 quads in 2018 reducing net energy imports into the United States to a 54 year low of 4 quads or less than 4 of U S energy consumption
In 2018 crude oil and natural gas accounted for 57 of all U S energy production with crude oil production seeing an increase of 17 and natural gas an increase of 12 from 2017 Natural gas plant liquids production also increased by 14 The 17 increase in crude oil production outpaced a modest 2 increase in total domestic petroleum consumption resulting in a 73 increase in exports of crude oil and a 6 increase in exports of petroleum products in 2018 compared with 2017 Exports of crude oil and petroleum products made up 68 of all U S energy exports in 2018
Disclaimer The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment I or my affiliates may hold positions or other interests in securities mentioned in the Blog please see my Disclaimer page for my full disclaimer |
WMB | AUD USD RBA Downgrades Growth But Aussie Yawns | AUD USD has ticked higher in the Friday session Currently the pair is trading at 0 6994 up 0 08 on the day On the fundamentals front the RBA released its quarterly monetary policy statement In the U S the focus remains on inflation indicators with the release of consumer inflation reports CPI is expected to remain steady at 0 4 while the core reading is projected to rise from 0 1 to 0 2
The RBA released its quarterly policy statement on Thursday sending a pessimistic message to the markets The bank downgraded its GDP forecast to 2 75 down from 3 0 in February Inflation remains low and the RBA rate statement released on Tuesday said that the labor market would have to improve before inflation could reach the bank s target of 2 0 The RBA has been dovish about the economic outlook and thus surprised the markets when it did not lower the key interest rate earlier this week Despite the cloudy economic outlook rate setters are hopeful that the limping economy can rebound without the help of a rate cut
The trade war between the U S and China has taken a heavy toll on the Chinese economy China s trade surplus fell sharply in April dropping from 221 billion yuan to 94 billion 32 6 billion to 13 8 billion As well Chinese exports declined 2 7 in April on a year to year basis This was a sharper drop than the estimate of a 2 3 decline A slowdown in China has damaged the Australian economy as China is Australia s number one trading partner
AUD USD Fundamentals
Thursday May 9
21 30 RBA Monetary Policy Statement
Friday May 10
8 30 US CPI Estimate 0 4
8 30 US Core CPI Estimate 0 2
10 00 US FOMC Member Brainard Speaks
10 00 US FOMC Member Williams NYSE WMB Speaks
14 00 US Federal Budget Balance Estimate 165 2B
All release times are DST
Key events are in bold
AUD USD for Friday May 10 2019
Open 0 6989 High 0 7019 Low 0 6978 Close 0 6994
AUD USD Technical
AUD USD posted gains in the Asian session but then retracted The pair is flat in European trade
0 6970 is providing weak support
0 7085 is the next resistance line
Current range 0 6970 to 0 7085
Further levels in both directions
Below 0 6970 0 6825 and 0 6744
Above 0 7085 0 7190 0 7240 and 0 7315
Original post |
WMB | Trump Says Chinese President Xi Sent Him A Nice Letter | Foreign Markets Fair Value and Volume
In Asia 8 out of 11 markets closed higher Shanghai Comp 3 10 Hang Seng 0 84 Nikkei 0 27
In Europe 11 out of 13 markets closed higher CAC 0 49 DAX 0 79 FTSE 0 38
Fair Value S P 1 21 NASDAQ 11 31 Dow 7 83
Total Volume 2 68 million ESM 319 SPM traded in the pit
Today s Economic Calendar
Today s economic calendar includes CPI 8 30 AM ET Lael Brainard Speaks 8 30 AM ET Raphael Bostic Speaks 9 05 AM ET John Williams NYSE WMB Speaks 10 00 AM ET Mary Daly speaks on Sunday 10 55 AM ET the Baker Hughes Rig Count 1 00 PM ET and Treasury Budget 2 00 PM ET
S P 500 Futures Big Drop Pop
Chart courtesy of Stewart Solaka Chicagostock ES F Failed recovery 2900 followed by gap down today giving way to expand 2901 2956 range down to 2846 to fill March gap Market is ready for a trade deal
During Wednesday nights Globex session the S P 500 futures ESM19 CME printed a high of 2885 00 a low of 2852 00 and opened Thursday s regular trading hours at 2856 25
Selling pressure was strong after the 8 30 CT bell and by 10 30 the ES had traded down to a new low at 2836 25 thus filling the April 1st gap at 2840 75 From there the news headline algo s took over and after a few tweets from President Trump regarding the China trade deal the futures quickly sought higher ground
By 11 45 the ES had rallied back up to 2874 75 a 38 handle move in just over an hour After that the markets began to consolidate in a sideways range for the rest of the morning and into the afternoon
Just before 1 00 the futures began to creep higher again this time topping out at 2877 00 which would remain the RTH high for the day As the final hour rolled around the ES did a little back and fill down to 2859 25 then turned higher going into the close
When the 2 45 cash imbalance reveal came out showing 486M to sell the futures started creeping higher again and went on to print 2871 25 on the 3 00 cash close and 2872 75 on the 3 15 futures close down 14 50 handles or 0 50 on the day
In the end the overall tone of the ES was weak early in the day and strong late in the day In terms of the days overall trade total volume was on the high end with 2 7 million futures contracts traded
Disclaimer Trading Futures Options on Futures and retail off exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors You should carefully consider whether trading is suitable for you in light of your circumstances knowledge and financial resources Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person s authorizing such transaction s BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE S AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS
Original post |
WMB | EUR USD Euro Slightly Higher Shrugs Off Soft German Economic Outlook | EUR USD is slightly higher on Tuesday erasing the gains seen on Monday Currently the pair is trading at 1 1235 up 0 11 on the day On the release front German ZEW Economic Sentiment declined by 2 1 missing the estimate of 5 1 The eurozone release followed the same trend dropping by 1 6 This was well short of the estimate of 5 0 There was better news from German Final CPI jumped to 1 0 matching the estimate There are no major U S events on the schedule On Wednesday Germany and the eurozone release GDP reports The U S will post retail sales and the Empire State manufacturing index
The well respected ZEW economic sentiments disappointed in May The German release ended a long streak of declines in April with a gain of 3 1 The indicator slipped to 2 1 in May pointing to pessimism Eurozone ZEW economic sentiment posted a decline of 1 6 in May after a score of 4 5 in April The economic outlooks for the eurozone and Germany are not promising as the trade war between China and the U S has escalated with another round of tariffs between the sides The U S raised tariffs on some 200 billion in Chinese goods from 10 to 25 A response followed quickly as China announced tariffs on 60 billion in U S goods As well China has allowed the yuan to fall to its lowest level in four months A lower yuan makes Chinese exports more competitive and will cushion the effect of the new U S tariffs which makes Chinese goods more expensive for U S consumers Despite the rise in tensions between China and the U S the new tariffs do not take effect immediately The U S tariffs do not apply to Chinese goods that are in transit and the shipping of goods across the Pacific can take up to three weeks The Chinese tariffs do not kick in until June This hiatus gives negotiators some breathing room before the tariffs take effect
EUR USD Fundamentals
Tuesday May 14
2 00 German Final CPI Estimate 1 0 Actual 1 0
2 00 German WPI Estimate 0 4 Actual 0 6
3 15 US FOMC Member Williams NYSE WMB Speaks
5 00 German ZEW Economic Sentiment Estimate 5 1
5 00 Eurozone ZEW Economic Sentiment Estimate 5 0
5 00 Eurozone Industrial Production Estimate 0 3
6 00 US NFIB Small Business Index Estimate 102 3
8 30 US Import Prices Estimate 0 7
12 45 US FOMC Member George Speaks
Wednesday May 15
2 00 German Preliminary GDP Estimate 0 4
5 00 Eurozone Flash GDP Estimate 0 4
8 30 US Core Retail Sales Estimate 0 7
8 30 US Retail Sales Estimate 0 2
8 30 US Empire State Manufacturing Index Estimate 8 2
All release times are DST
Key events are in bold
EUR USD for Tuesday May 14 2019
EUR USD for May 14 at 6 00 DST
Open 1 1224 High 1 1242 Low 1 1220 Close 1 1235
EUR USD Technical
EUR USD posted slight gains in the Asian session and is showing limited movement in European trade
1 1212 is providing support
1 1300 is the next resistance line
Current range 1 1212 to 1 1300
Further levels in both directions
Below 1 1212 1 1120 1 1046 and 1 0950
Above 1 1300 1 1434 and 1 1553
Original post |
WMB | DAX Rebounds As China Says Trade Talks To Continue | The DAX has moved higher on Tuesday after starting the week with sharp losses Currently the DAX is at 11 937 up 0 51 In economic news German ZEW Economic Sentiment declined by 2 1 missing the estimate of 5 1 The eurozone release followed the same trend dropping by 1 6 points This was well short of the estimate of 5 0 points There was better news from German Final CPI jumped to 1 0 matching the estimate On Wednesday Germany and the eurozone release GDP reports
ZEW economic sentiments for Germany and the eurozone disappointed in May The German release ended a long streak of declines in April with a gain of 3 1 The indicator slipped to 2 1 in May pointing to pessimism Eurozone ZEW economic sentiment posted a decline of 1 6 in May after a score of 4 5 in April The economic outlooks for the eurozone and Germany are not promising as the trade war between China and the U S has escalated with another round of tariffs between the sides
The volatility continues on the stock markets as trade tensions between the U S and China have soared in the past few days On Friday the U S raised tariffs on some 200 billion in Chinese goods from 10 to 25 A response followed quickly as China announced tariffs on 60 billion in U S goods As well China has allowed the yuan to fall to its lowest level in four months A lower yuan makes Chinese exports more competitive and will cushion the effect of the new U S tariffs which makes Chinese goods more expensive for U S consumers Despite the rise in tensions between China and the U S the new tariffs do not take effect immediately The U S tariffs do not apply to Chinese goods that are in transit and the shipping of goods across the Pacific can take up to three weeks The Chinese tariffs do not kick in until June This hiatus gives negotiators some breathing room before the tariffs take effect
Despite the rise in tensions between China and the U S the new tariffs do not take effect immediately The U S tariffs do not apply to Chinese goods that are in transit and the shipping of goods across the Pacific can take up to three weeks The Chinese tariffs do not kick in until June This hiatus gives negotiators some breathing room before the tariffs take effect
Economic Calendar
2 00 German Final CPI Estimate 1 0 Actual 1 0
2 00 German WPI Estimate 0 4 Actual 0 6
3 15 US FOMC Member Williams NYSE WMB Speaks
5 00 German ZEW Economic Sentiment Estimate 5 1
5 00 Eurozone ZEW Economic Sentiment Estimate 5 0
5 00 Eurozone Industrial Production Estimate 0 3
Wednesday May 15
2 00 German Preliminary GDP Estimate 0 4
All release times are DST
Key events are in bold
DAX Tuesday May 14 at 6 40 DST
Previous Close 11 876 Open 11 916 Low 11 899 High 11 954 Close 11 937
Original post |
C | GLOBAL MARKETS Citi rescue plan boosts world shares oil | MSCI world equity index up 1 5 percent at 197 70
300 billion plus rescue plan for Citi boosts shares
Yen trims gains dollar falls
By Natsuko Waki
LONDON Nov 24 Reuters World stocks rebounded on Monday
from last week s 5 1 2 year low and oil also rallied after the
U S government unveiled a 300 billion plus rescue package for
banking giant Citigroup
Washington s plan its biggest rescue of a bank yet
could become a model for other U S banks expected to face
growing losses from the credit crisis which began in 2007
But the plan failed to erase worries about the impact of
deteriorating major economies on corporate profits and consumer
consumption supporting the low yielding yen
Monday s closely watched IFO survey offered the latest
evidence of gloomy economic conditions with the German business
climate index falling to 85 8 its lowest since February 1993
The Citigroup plan is a good thing in the sense that it s
good for financial stability said Chris Gothard currency
analyst at Brown Brothers Harriman
But concerns still remain about the state of the global
economy and the state of the financial system worldwide
MSCI world equity index was up 1 4 percent having hit a
5 1 2 year low on Friday Emerging stocks rose 0 4 percent U S
stock futures rose almost 3 percent pointing to a firmer start
on Wall Street
Citi s shares rose nearly 40 percent in Frankfurt
U S crude oil reversed early losses to rise 3 5 percent to
51 71 a barrel
The IFO survey showed that German corporate sentiment fell
by much more than expected in November to its lowest level since
February 1993 as firms grew gloomier about the business outlook
The yen rose 0 2 percent to 95 75 per dollar trimming early
gains The dollar fell 0 7 percent against a basket of major
currencies
Once again the market is faced with a weekend hangover
where it has to decide whether it should feel relief that
something has been done or renewed unease that something had to
be done in the first place Calyon said in a note to clients
The December bund future fell 20 ticks
Additional reporting by Naomi Tajitsu Editing by Ron
Askew |
C | Bush to make statement following Citigroup bailout | WASHINGTON Nov 24 Reuters U S President George W
Bush will meet Treasury Secretary Henry Paulson on Monday at 10
a m EST 1500 GMT at the Treasury Department and will then
make a statement at 10 35 a m 1535 GMT the White House
said
Bush s meeting with Paulson follows the U S government s
announcement of plan to inject 20 billion in new capital into
Citigroup |
C | Existing Home Sales Fall 3 1 Prices Fall The Most On Record | Forex Technical Reaction Stocks looked to be holding up well on the heels of the Citigroup news and Mr Obama s 2 year fiscal stimulus plan The dollar is showing a weakening trend against the high yielders and is making some headway against the yen |
C | WRAPUP 1 US existing home sales fall buyers sidelined | By Lucia Mutikani
WASHINGTON Nov 24 Reuters Sales of previously owned
U S homes fell in October with the median home price notching
its biggest drop on record as tough economic conditions kept
buyers on the sidelines data showed on Monday
Adding to the gloom for the U S economy a separate report
from the Federal Reserve Bank of Chicago showed its National
Activity Index contracted again in October staying mired in
negative terrain for 15 straight months
Markets largely shrugged off the reports Stocks on Wall
Street surged amid euphoria over the U S government s decision
to inject 20 billion into Citigroup which averted the
banking giant s collapse
Also garnering attention was President elect Barack Obama s
announcement of his economic team to navigate the financial
crisis
Markets welcomed the selection of veterans Timothy
Geithner the president of the New York Federal Reserve Bank
as Treasury secretary and Lawrence Summers who was Treasury
secretary under President Bill Clinton as director of the
National Economic Council
Obama speaking at a news conference noted the wealth of
experience his team would have and stressed this would help his
administration s efforts to get the embattled economy back on
track as soon as it took over in January
News on the dire state of the economy was not lacking
The National Association of Realtors said the pace of sales of
existing homes in the United States fell 3 1 percent in October
to a 4 98 million unit annual rate This was slightly below
economists expectations for a 5 00 million unit pace
On an annual basis sales were down 1 6 percent on the 5 06
million units sold in October last year
Many potential home buyers appear to have withdrawn from
the market due to the stock market collapse and deteriorating
economic conditions NAR chief economist said Lawrence Yun
told reporters
The inventory of existing homes for sale slipped 0 9
percent to 4 23 million from 4 27 million in September The
median national home price declined 11 3 percent from a year
ago to 183 300 the lowest since March 2004 when the median
price was 183 200 the NAR said
The percentage drop in prices was the biggest since the NAR
started keeping records in 1968
Analysts said even though housing had become more
affordable sales were likely to remain depressed because of
tight access to credit and mounting job losses
MOUNTING LAYOFFS
House sales likely sagged further in November amid
tightening credit and mounting layoffs Adverse feedback from
the worsening economy and credit crisis threaten another leg
down in housing markets said Sal Guatieri an economist at
BMO Capital Markets in Toronto
The housing malaise which triggered a global financial
crisis has infected other sectors of the broader economy
translating into the highest unemployment rate in 14 years and
a record drop in retail sales
Analysts say stability in the housing sector is key to any
recovery in the U S economy which independent surveys say is
in recession
We have favorable affordable conditions but we need more
than that to give buyers with jobs the confidence they need
Without home price stabilization there will not be an economic
recovery NAR s Yun said adding that distressed sales were
accounting for 45 percent of sales
In the Chicago Fed s report while the index improved to
minus 1 06 in October from a revised minus 3 11 in September
it has stayed below trend growth for 15 straight months dating
back to August 2007
The index s three month moving average also moved up off
the lowest level since January 1982 The measure which smooths
out monthly fluctuations was minus 2 09 in October against
September s minus 2 16 previously reported at minus 1 78
When the three month value is below minus 0 70 following a
period of economic expansion there is an increasing
likelihood that a recession has begun the Chicago Fed said
The three month moving average has been below minus 0 70 every
month since February
Additional reporting by Dan Burns in New York Editing by
Chizu Nomiyama |
C | Stocks Rally On Citigroup Plan and Obama s Economic Stimulus | COMEX gold finished trading today up 32 60 4 12 to 824 40 per ounce |
C | Asian Shares Follow Wall Street Higher | Asian trade Asian shares are trading in the green after the U S equity markets posted the strongest two day rally in the past two decades on the Citigroup bailout The S P 500 rallied at 6 5 for a second consecutive day while the Dow rose almost 5 yesterday on the news that the government will bailout Citigroup which was the U S s largest bank some time ago Almost every bank rallied yesterday on the bailout news and by the end of the day the financial sector was leading the pack of gains in the equity markets Furthermore the government not only threw a huge support line to the bank but it also introduced a new bailout model The government will cover any losses that will result from the 300 billion of bad debt the bank had gathered across the years This is quite a subjective move since usually this off balance sheet s assets are not traded in a specific market and right now nobody wants these or needs them so their real value is close to zero It is very interesting how the Treasury will value this 300 billion worth of bad debt and more specifically what it is going to do with it since such a very large sum of taxpayers money are at stake In the mean time nobody finds only 25 billion for the auto industry which sums up a few millions of jobs In tonight s session the Nikkei gained 335 29 points 4 25 to 8 246 08 The Australian S P Asx rose 130 20 points 3 80 to 3 555 30 Crude oil moved very little since the start of the new trading day Crude oil for December delivery declined 0 20 to 53 85 Gold traded virtually flat in the Asian session even though it fell somewhere lower earlier Bullion for immediate delivery fell 2 30 to 814 63 Previous Wall Street trade Equity markets completed their biggest 2 day rally since 1987 after the Treasury Federal Reserve and FDIC moved to guarantee 306 billion worth of Citigroup s troubled assets and President Elect Obama pledged to have an economic stimulus package ready to be signed into law soon after he takes office on Jan 20 The government s bail out of Citigroup shields the bank from losses on the portfolio beyond the first 29 billion in exchange for 7 billion of preferred stock with an 8 dividend rate A key feature of the plan is that the government will provide Citigroup with a template to manage the assets based on mortgage modification procedures recently adopted by the FDIC It s a magnificent solution for the government said Matthew Carniol chief currency strategist at TheLFB forex com The government gets to shield Citi from 90 of the loss on the portfolio and it didn t have to buy the assets in order to do so Those assets will now likely to perform far better than they would have otherwise since the government can force Citi to implement work puts on the underlying mortgages as per the FDIC s plan Previous European trade European markets opened in positive territory and never looked back as the Dax gained 426 92 points 10 34 to 4554 33 and the U K Ftse rose 372 00 points 9 84 to 4152 96 |
C | CORRECTED CORRECTED Sydney office rents to fall landlords offer deals | Corrects paragraph 1 to say capital values are set to fall
by up to 15 percent not rental movements Corrects paragraph 6
and table to refer to capital values
By Eriko Amaha
SYDNEY Nov 25 Reuters Sydney office rents are seen
under further pressure and capital values are set to fall by up
to 15 percent next year analysts say as landlords scramble to
entice tenants as demand for space from the financial industry
wanes
About 60 percent of tenants in Sydney s main business
district are financial and insurance firms which are bearing
the brunt of the global credit crisis
Tenants are starting to sub lease space at a discount
halting five years of double digit rent rises
The big thing next year will be how many tenants will
contract in size and look to surrender a portion of their space
or relocate altogether said Darren Whitelegg managing
director of real estate management of Colliers International in
Sydney
Any landlords at the moment who have got vacant space are
a little bit nervous about what the next year holds so they
are trying very hard to get tenants as we speak
Analysts at Citigroup and consultants DTZ believe capital
values at Sydney s top notch buildings will fall 15 percent
over the next 12 months while CB Richard Ellis says a drop of
8 percent is likely
Local media have said struggling fund manager Babcock
Brown Ltd Lehman Brothers and property group
Octavia have tried to sublease office space in some of
Sydney s most prominent office towers
About 43 000 sq m of sublease space is in the market
double the amount just six months ago according to property
consultants CB Richard Ellis
Although the figure is only a fraction of the total 4 7
million sq m of office stock in the city rents in the sublease
space are competitively priced and industry watchers say the
ramifications for the direct lease market are huge
Landlords competing to lure tenants are also offering more
incentives such as finance for fit outs and relocation
The average lease incentive in Sydney s central business
district is now 20 percent of a long lease or equal 24 months
of free rent on a 10 year contract compared to 15 percent in
2007
Property industry executives expect the incentives to go up
to 30 percent or more next year a level not seen since the
early 1990s when the Sydney property market had a sharp
downturn
There is no question that the rents are falling and
incentives are increasing said Tim Green managing director
for Tim Green Commercial a Sydney based leasing agent
And we are probably sort of half way to where it s going
to go
Green said some landlords had already dropped headline
rents by 10 15 percent
As of September an average grade A building was fetching
700 per sq m a 14 3 percent increase from a year earlier
according to consultants Savills
Belinda Nowland a researcher for Savills said she now
expected face rents to remain flat in the next 12 months but
real rents would drop due to incentives
Cameron Williams state director for Colliers
International said he expected an additional 20 000 30 000 sq
m of sublease space to come onto the market in the next 6 to 9
months
But he added that unlike the early 1990s Sydney s office
vacancy rate is at historical lows and no major property supply
is due until 2010
We believe it s going to be a short term phenomena 12
to 18 months because at the end of the day once we get
through this low level of sublease supply we will fall back to
a very tight vacancy market he said
Forecasts for Grade A capital values in 12 months
Citigroup down 15 percent
DTZ down 15 percent
CB Richard Ellis down 8 percent
Jones Lang LaSalle flat
WBP Property Group flat |
C | FOREX Yen gains vs euro dlr as stock markets fall | Yen gains vs euro dlr pound slides
European stocks fall 1 percent as Citigroup optimism fades
High yielding Australian and New Zealand dollars tumble
Changes dateline byline adds quotes previous TOKYO
By Jessica Mortimer
LONDON Nov 25 Reuters The yen gained against the euro
and the dollar on Tuesday as global recession fears returned to
haunt financial markets sending stock markets lower as
investors shunned higher risk assets
Boosting the low yielding yen was a slide in European shares
after optimism on news of a U S government bailout of Citigroup
quickly dissipated
Given the scale of the rally in risk assets on Monday
investors are reassessing the situation and are less willing to
chase the rally higher BTM UFJ currency economist Lee Hardman
said
The underlying conditions are not conducive for further
gains in risk assets with below trend growth across the globe
and financial markets in a severe state of distress
Highlighting the grim outlook facing the global economy the
World Bank on Tuesday said China s growth could slow to its
weakest pace in almost two decades next year
By 0942 GMT the dollar had fallen 1 2 percent against the
yen to 95 95 yen and the euro dropped 1 5 percent to 123 40 yen
The euro came under selling pressure as European shares fell
1 percent reversing an 8 9 percent rally on Monday which had
helped to boost the single currency to its highest levels
against the dollar and the yen in more than two weeks
The euro fell 0 4 percent to 1 2860 sliding after
confirmation that the German economy contracted by 0 5 percent
in the third quarter
The two former mainstays of the German upswing investment
in machinery and equipment and exports have developed into
handicaps hardly an encouraging omen for 2009 Commerzbank
economist Christoph Weil said in a note to clients
Other surveys showed falls in confidence among French
businesses and Italian consumers
The pound also dipped 0 2 percent against the dollar as
Monday s optimism about stimulative measures announced in the
government s Pre Budget report gave way to renewed fears about
the weak economic outlook and rising levels of debt
Investors awaited preliminary data on U S economic growth
in the third quarter at 1330 GMT while U S consumer confidence
numbers for November and the Richmond Fed index at 1500 GMT will
also be closely eyed
HIGH YIELDERS SLUMP
The high yielding Australian and New Zealand dollars lost
over 2 percent against the U S currency Against the yen they
dropped more than 3 percent
High risk aversion has boosted the low yielding yen to the
detriment of the Australian and New Zealand currencies as
investors unwind carry trades that involved using the Japanese
currency to fund investments in higher yielding currencies
The dollar has also benefitted from a sharp drop in risk
appetite as positions in risky investments are closed out and
their proceeds are converted back to the U S currency
Given ongoing economic weakness the European Central Bank
is expected to cut interest rates further from 3 25 percent in
December Other central banks are expected to follow suit
taking them closer to 0 3 percent rates in Japan and the Federal
Reserve s 1 0 percent
The compression of yield between the rest of the world and
Japan and the U S will be supportive for further gains in the
yen and the dollar BTM UFJ s Hardman said
Reporting by Jessica Mortimer editing by Mike Peacock |
WMB | NFL notebook Bengals WR Green leaves practice with injury | Cincinnati Bengals star wide receiver A J Green was carted off the practice field Saturday after suffering an injury to his lower left leg
Green came down awkwardly during a 7 on 7 drill with his left foot appearing to get trapped underneath cornerback Dre Kirkpatrick who fell after leaping to knock away a pass Medical staff attended to Green on a sideline bench checking his left foot before he walked on his own power to the cart that took him off the field
According to multiple reports the injury is believed to be an ankle sprain
Coach Zac Taylor didn t speculate on the nature of the injury after practice but told reporters You don t want to assume anything but I think we re going to be OK
New York Giants wide receiver Golden Tate will appeal a suspension handed down for violating the NFL policy on performance enhancing drugs
Tate posted a statement explaining the failed test on social media shortly after the report He also said that he and the Giants will eagerly await my appeal
ESPN s Adam Schefter said the suspension was four games
The Detroit Lions released veteran running back Theo Riddick shedding his 3 2 million salary
The move helps Detroit afford the signing of former Green Bay Packers defensive tackle Mike Daniels who officially signed for one year and 9 1 million on Saturday
ESPN reports Riddick will now visit the New Orleans Saints
Second year running back Sony Michel has been cleared to practice with the New England Patriots after starting on the physically unable to perform list as training camp opened this week
Before practice Michel told reporters he was ready to go It s all about getting bigger stronger faster he said
Meanwhile defensive end Michael Bennett was excused from the first three days of camp for personal reasons according to director of player personnel Nick Caserio
Atlanta Falcons wide receiver Calvin Ridley missed practice and the team will be cautious with what coach Dan Quinn called a tight hamstring
He s got a sore hamstring and we re going to make sure he s full speed to go Quinn told reporters per the team s official website
The Washington Redskins placed tackle Trent Williams NYSE WMB on the reserve did not report list after he failed to show up for training camp
Coach Jay Gruden said he had not heard from him
NFL Network reported Monday that Williams would not report for the start of camp saying his absence could last for some time and that Williams is unhappy with the medical staff after a tumor scare earlier this offseason
Tennessee Titans running back Derrick Henry was not at practice and according to TitanInsider com was in a walking boot after suffering an undisclosed injury to his left foot Friday
Head coach Mike Vrabel didn t elaborate on the nature of the injury but told reporters that it is not serious and that Henry was considered day to day
The Seattle Seahawks brought back cornerback DeShawn Shead who started 22 career games for the team before playing last season with the Detroit Lions
He will be on a one year minimum contract according to ESPN
The Philadelphia Eagles announced the signing of veteran cornerback Orlando Scandrick
The 32 year old Scandrick was coveted due to injuries at the position He worked out for the team earlier Saturday
Patriots director of player personnel Nick Caserio denied a chance to interview with the Houston Texans in the offseason said he is pretty honored and privileged to be in the position I am in
New England filed tampering charges against the Texans after they approached Caserio about their vacant general manager position Houston withdrew its request the Patriots dropped the tampering changes and Caserio is back as Bill Belichick s right hand man
Kansas City standout receiver returner Tyreek Hill was heavily cheered at the Chiefs first practice and showed his appreciation by pumping his arms and high stepping on the field at Missouri Western State University in St Joseph Mo
Hill endured an offseason of turmoil as the NFL investigated child abuse allegations against him before announcing on July 19 that he didn t violate the league s personal conduct policy
Indianapolis Colts rookie linebacker Bobby Okereke told reporters that the sexual assault accusation made against him while he was at Stanford in 2015 was false
Those were untrue allegations said Okereke who was meeting the media for the first time since news of the allegations became public in June I fully complied with the school investigation and was found not responsible
General manager Chris Ballard said in June that Okereke told the Colts about the incident at the Senior Bowl in January Ballard added that the team studied documents from the Title IX case and were comfortable with selecting Okereke whom the Colts took in the third round 89th overall
Field Level Media OLUSSPORT Reuters US Online Report Sports News 20190728T032306 0000 |
WMB | Coco makes Washington main draw will face Diyas in first round | Reuters Cori Coco Gauff on Sunday made it through to the main draw of the Citi Open in Washington needing barely an hour to win her final qualifier
She will play 84th ranked Zarina Diyas of Kazakhstan in the first round in what will be Gauff s third tournament appearance in the main draw
Gauff 15 last month became the youngest woman in the professional era to make the Wimbledon main draw
She beat Venus Williams NYSE WMB before losing in the fourth round to eventual champion Simona Halep
Gauff had to get through two rounds of qualifying this weekend and she was barely troubled in either beating American Maegan Manasse and then Japan s Hiroko Kuwata in straight sets
These two matches I feel like will prep me for my first round especially because I ve never been to this tournament before Gauff said
I was glad that I was able to get a feel of how it is the site playing those two qualifying matches
The weather is similar to home in Florida so I felt like I ve been practising at home I ll be happy playing on any court |
WMB | Games Canada rugby sevens defend one title surrender another | By Steve Keating
LIMA Reuters Canada s women defended their Pan Am Games rugby sevens crown on Sunday while the men s team found a silver lining in being dethroned by a rampaging Argentina
Winger Asia Hogan Rochester tore through the United States with three tries to lead a young squad to a convincing 24 10 win over their arch rivals
But moments later Argentina brought the men s team s reign to a shuddering end with a 33 10 victory that left the Canadians walking off the field thinking about next year s Tokyo Olympics
From within the group it was You know what At least this is not the Olympics said Canadian men s coach Henry Paul
As a coach you just ask the guys for effort and I thought we had a lot of effort there we just didn t react fast enough
I think the early try from us really woke them up
Canada began the gold medal contest smartly with Josiah Morra scoring the opening try but it was all downhill from there as Argentina sparked by two tries from Luciano Daniel Gonzalez Rizzoni stormed to 21 5 halftime lead then piled on the punishment
Both the men s and women s bronze medal games needed extra time to decide
The United States beat Brazil 24 19 to take third place on the men s podium while Colombia topped Brazil 29 24 in the women s
Like the men the Canadian women got on the scoreboard first with a Hogan Rochester try but never lost control as the U S had no answer to Canada s speed and resolve
The girls just really wanted it said coach Morgan Williams NYSE WMB They played together as a 12 and they have been very tight all week
I could see it before the game they were up they were dancing I hadn t seen that energy in previous games
I knew they were going to come out and do something special
Both Canadian squads had new looks from the teams that swept gold on home turf in Toronto four years ago
Just two women were back for a crack at a second gold while the men s side had only four returnees
Playing in her first international tournament Hogan Rochester s three try performance undoubtedly caught the eyes of national selectors
I just got on the team and there are a lot of girls that have been pushing and working towards that Olympics but that 12 person roster is definitely something I am interested in said Hogan Rochester The Olympics are every athlete s biggest dream
There s still a lot of work to do I am still developing
Situated between two towering favelas the tournament s sparkling new venues are in stark contrast to the teeming slums surrounding the complex
It s a little bit different but what a great backdrop said Williams
You look around and it is an eye opener for a lot of these young girls who haven t really travelled and are constantly on their phones and Instagram to kind of see how other countries live |
WMB | After Pan Am Games slam dunk 3x3 basketball looks towards Olympics | By Steve Keating
LIMA Reuters The front page of FIBA s website offers a little teaser about its latest project From the streets to the Olympics says basketball s world governing body in a pitch for the 3x3 version of the game
While the 2020 Tokyo Summer Games is where the sport will have its big reveal there are a few stops along the way to Japan including this week in Lima where 3x3 went From the streets to the Pan Am Games
If the excited holiday crowd packed into the quaint Coliseo Eduardo Dibos on Monday was any indication the three a side version of hoops played on a half court could be a Tokyo Olympic hit
Despite having no basketball pedigree and little exposure to the sport beyond NBA highlight packages Peruvians seemed genuinely fascinated by the 3x3 version where the winner is the first team to 21 points or ahead after the 10 minute regulation period
The U S men did not need the full 10 minutes to get the job done Jonathan Octeus draining two free throws to seal a 21 19 win over Puerto Rico while the women completed an unbeaten run to the gold by stopping Argentina 21 17
We are definitely the pioneers first team to win the 3x3 gold medal I m glad it was the USA Octeus told Reuters This game is going to grow
In the Americas it is not as big but the Europeans from my understanding they have been playing this game for 10 15 20 years so it is crazy to see their growth and see what might happen over the next 10 years with the 3x3 game in the Americas
The gold medal contests looked much like something you might see in any park schoolyard or playground in the United States or Paris or Shanghai for that matter
While the 3x3 version is played now in every corner of the globe the game as a competitive entity remains largely unknown
FIBA has methodically introduced the sport starting with the 2010 Youth Olympics in Singapore where 3x3 had its first international competition
That was followed by its Asian Games debut in 2018 and another first at the Pan Am Games
FIBA also operates a 3x3 World Tour that this season consists of 11 events culminating with the final in November in Utsunomiya Japan
Many sports have recently trended towards condensed versions of their games in a bid to widen their appeal
Rugby sevens Twenty20 cricket and mixed curling are among the sports that have benefited from giving fans fast bite size versions of their games
Three on three does that and more with its fast paced action played out to a blaring hip hop sound track
Not a lot of people know about three on three I just learned about it two years but I think it s growing said Christyn Williams NYSE WMB who contributed five points to the U S win Winning gold will make a huge impact
It is a new sport for the U S so us playing in this benefited it
Since I started playing it has grown a lot so I think us playing in it and showing it to the U S it will grow even more |
WMB | Hibi tops error ridden Babos in Silicon Valley | Reuters Japan s Mayo Hibi battled back from 5 2 down in the third set to secure a 6 2 3 6 7 6 3 win over Timea Babos in the first round of the Silicon Valley Classic on Monday
Hibi benefited from 52 unforced errors from the Hungarian to claim one of the biggest wins of her career but will be the underdog when she next faces Maria Sakkari who rolled to a 6 1 6 4 victory over Ekaterina Alexandrova later in the day
The seventh seeded Greek who reached the third round of Wimbledon in July fired six aces and won 82 percent of her first service points to easily dispatch Alexandrova on a warm and breezy day in Northern California
Other first round winners included sixth seeded Spaniard Carla Suarez Navarro as well as Americans CoCo Vandeweghe and Kristie Ahn
The action picks up on Tuesday when former world number one Victoria Azarenka faces France s Harmony Tan and seven time major champion Venus Williams NYSE WMB is set to battle fellow American Bethanie Mattek Sands |
WMB | Murray closer than he thought to singles return | Reuters Former world number one Andy Murray is considering returning to singles action at Cincinnati next month saying he is closer than he thought to being ready The 32 year old has not played singles since losing in the first round of the Australian Open in January to Spain s Roberto Bautista Agut after which he underwent hip resurfacing surgery in a bid to salvage his career He returned to doubles action at Queen s Club this year winning the title with Spain s Feliciano Lopez and also played men s doubles with Frenchman Pierre Hugues Herbert and mixed with Serena Williams NYSE WMB at Wimbledon Three time Grand Slam champion Murray had previously said it was extremely unlikely he would be ready to play singles at the U S Open but now believes a return on the Cincinnati hardcourts in two weeks time is possible I m closer than I thought Murray said at the Citi Open in Washington where he is playing doubles with brother Jamie Best case scenario probably would be Cincinnati he said And then if I wasn t able to play in Cincinnati there s a good chance I would probably wait until after New York because I wouldn t want my first tournament either to be playing best of five sets Murray said he is practising singles in Washington and is also lined up to play doubles at the Rogers Cup next week in Toronto with Lopez In terms of moving and feeling and waking up the next day I m feeling good Murray said I m quite close but there s stuff that would need to get better
I could play singles but to get where I would want to be I d have to get back in the gym and get my cardio better |
WMB | College football notebook Georgia lands 5 star running back | Five star running back Kendall Milton announced his verbal commitment to Georgia over Alabama LSU and Ohio State
The 6 foot 1 1 2 229 pound recruit from Fresno Calif is ranked No 4 among running backs and No 22 overall in the 2020 class by the 247Sports com composite
I m very excited about my decision and feel really good about Georgia Milton told 247Sports com I knew on my official visit to Georgia that I found a home and that was the place for me I took a lot of visits unofficial and official and the vibe I had at Georgia was like no other place I visited
Milton is the third five star recruit to commit to the Bulldogs 2020 class along with linebacker Mekhail Sherman of Washington D C and offensive lineman Broderick Jones of Lithonia Ga
UTEP coming off a 1 11 season will have to try to make improvement without its leading rusher from 2018 as Quardraiz Wadley suffered a season ending toe injury in a pre camp conditioning workout
Wadley a senior rushed for 627 yards and seven touchdowns last season averaging 5 1 yards per carry Wadley has 1 072 career yards in 26 games and has a redshirt year available
UTEP will look to Treyvon Hughes 73 carries for 320 yards last season and local freshman Deion Hankins to lead the rushing attack
UConn linebacker Eli Thomas who suffered a stroke last October will not return to play his senior season coach Randy Edsall announced
Thomas who during the spring was named a team captain in 2019 will remain a member of the team and still represent the Huskies as a captain along with tight end Donovan Williams NYSE WMB defensive back Tyler Coyle offensive lineman Matt Peart and punter Luke Magliozzi
Clemson quarterback Trevor Lawrence is a huge favorite over Alabama s Tua Tagovailoa to win the 2019 Heisman Trophy
FanDuel Sportsbook installed Lawrence and Tagovailoa as co favorites in April But Lawrence has since rose from 250 to 200 while Tagovailoa is falling back to the pack and at 350
Former Alabama quarterback Jalen Hurts was a comfortable third in the opening odds but the public has not supported the notion of a third straight Heisman Trophy winning Oklahoma quarterback Baker Mayfield Kyler Murray Hurts will start for the Sooners but his Heisman chances have been bet down from 1100 to 2000
Former Michigan quarterback Denard Robinson the 2010 Big Ten Offensive Player of the year has joined the Jacksonville University staff as an offensive analyst
Robinson a native of Deerfield Beach Fla was a fifth round pick of the Jacksonville Jaguars in 2013 and he played four seasons as a running back with the club gaining 1 058 yards on 263 carries
He s been mentored by some of the best in the business along the way Jacksonville coach Ian Shields said in a statement and he ll have some great lessons and coaching points to pass along to our players
Field Level Media |
BMY | AstraZeneca s AZN Tagrisso Hits Phase III Primary Endpoint | AstraZeneca plc NYSE AZN announced that its lung cancer drug Tagrisso met the primary endpoint in a randomized phase III study AURA3 The study evaluated the efficacy and safety of Tagrisso as a second line treatment of patients suffering from EGFR T790M mutation positive locally advanced or metastatic non small cell lung cancer NSCLC whose disease had progressed following first line EGFR tyrosine kinase inhibitor therapy
Results showed that Tagrisso demonstrated superior progression free survival PFS compared to standard platinum based doublet chemotherapy with a safety profile that was found to be consistent with previous studies In addition to PFS the objective response rate disease control rate and duration of response also achieved clinically meaningful improvement versus chemotherapy
Meanwhile full evaluation of AURA3 study data including an analysis of overall survival is currently ongoing and the company intends to present the data at an upcoming medical meeting ASTRAZENECA PLC Price We are encouraged by the phase III study results We note that Tagrisso is currently approved in both the U S and EU for the treatment of patients with EGFR T790M mutation positive advanced NSCLC It is the first drug to be approved for this indication Eligibility for treatment with Tagrisso is dependent on confirmation that the EGFR T790M mutation is present in the tumor
Initial sales of the drug have been encouraging reflecting increased testing rates which have been driving the number of new patient starts
Currently Tagrisso is also being evaluated in the adjuvant and metastatic first line settings including patients with and without brain metastases in leptomeningeal disease and in combination with other treatments
AstraZeneca is working on strengthening its oncology product portfolio and has several candidates in its pipeline The company s target is to launch at least six new medicines between 2014 and 2020
AstraZeneca is a Zacks Rank 3 Hold stock Some better ranked stocks in the health care sector include Bristol Myers Squibb Company NYSE BMY Innoviva Inc NASDAQ INVA and Fibrocell Science Inc NASDAQ FCSC All three stocks sport a Zacks Rank 1 Strong Buy |
BMY | Bristol Myers Opdivo Label Expansion Under U S EU Review | Bristol Myers Squibb Company NYSE BMY received encouraging news with the FDA accepting and the European Medicines Agency EMA validating the company s marketing applications for label expansion of its immuno oncology drug Opdivo The company is looking to get Opdivo approved for the treatment of patients with previously treated recurrent or metastatic squamous cell carcinoma of the head and neck SCCHN
The company s supplemental biologics license application for Opdivo has been accepted for priority review by the FDA With the FDA granting priority review status a response should be out by Nov 11 2016 We remind investors that Opdivo was granted Breakthrough Therapy status in the U S for SCCHN in Apr 2016
The EMA has validated a type II variation application for the same patient population The validation marks the initiation of the EMA s centralized review process BRISTOL MYERS Price We are encouraged by the simultaneous acceptance of Opdivo for review in the U S and EU Data from the CheckMate 141 study has demonstrated that Opdivo is the first and only PD 1 inhibitor to show an overall survival benefit in a phase III study in these patients
Per the company s press release head and neck cancer is the seventh most common cancer worldwide accounting for an estimated 400 000 to 600 000 new cases per year resulting in 223 000 to 300 000 deaths annually SCCHN accounts for approximately 90 of all head and neck cancers and is usually associated with a particularly poor prognosis and very low survival rates
We note that Opdivo recorded worldwide revenues of 942 million in 2015 Label expansion into additional indications would give Opdivo access to an expanded patient population and increase the commercial potential of the drug
Meanwhile the company is working on expanding the drug s label further Opdivo is being evaluated for the treatment of various tumor types alone or in combination with other approved cancer products such as Yervoy Bristol Myers other immuno oncology drug
Bristol Myers is a Zacks Rank 1 Strong Buy stock Other equally ranked stocks in the health care sector include Innoviva Inc NASDAQ INVA Fibrocell Science Inc NASDAQ FCSC and Nektar Therapeutics NASDAQ NKTR |
BMY | ResMed RMD Q4 Earnings Disappointment In The Cards | ResMed Inc NYSE RMD is scheduled to report its fourth quarter fiscal 2016 earnings on Jul 28 after the closing bell
Last quarter the company posted a negative earnings surprise of 1 45 Though on a brighter note ResMed s earnings have outpaced the Zacks Consensus Estimate in two of the past four quarters with an average beat of 1 92
Let s see how things are shaping up prior to this announcement RESMED INC Price and EPS Surprise
Factors at Play
ResMed opened its account in the fourth quarter with the completion of Brightree s acquisition a health information technology group a deal which was signed in the preceding quarter Management expects this acquisition to expand ResMed s Air Solutions platform with a stronger end to end value proposition for ResMed s customers
Per management s earlier declaration financial integration of Brightree within its operations will start immediately after completion of the buyout Following this the deal is predicted to be accretive immediately to ResMed s gross margins and adjusted EPS
Consequently we believe this accretion to get evident from the yet to be released fiscal fourth quarter results in the form of raised gross margin and bottom line figures Notably management estimates that the Brightree acquisition will have a positive impact of 70 100 basis points on ResMed s gross margin in the fourth quarter
Furthermore management believes that initiation of the integration process for its recently acquired Innova Labs has offered ResMed considerable opportunities to grow its revenue in the fiscal fourth quarter and beyond by providing portable oxygen concentrators through its global market channels
In terms of product categories management remained particularly optimistic about ResMed s mask and accessories category wherein a solid growth is expected in the fourth quarter and going ahead
On the flip side the failure of the SERVE HF trial in May 2015 has been a drag to company s sales from Adaptive Servo Ventilation ASV devices for quite some time Management expects to witness similar weak ASV growth trend in the fourth quarter too with the largest impact on the company s EMEA and APAC region
Management also remains confident of the company s strategy to continue to make incremental investments across its research and development R D portfolio which in turn might raise the R D expenses for the quarter
Earnings Whispers
Our proven model does not conclusively show that ResMed is likely to beat earnings this quarter That is because a stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen That is not the case here as you will see below
Zacks ESP ResMed has an earnings ESP of 0 00 That is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 74 cents
Zacks Rank ResMed has a Zacks Rank 4 Sell which along with an ESP of 0 00 makes surprise prediction difficult
We caution against stocks with a Zacks Rank 4 or 5 Sell rated stocks going into the earnings announcement especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter
Bristol Myers Squibb Co NYSE BMY with an Earnings ESP of 1 49 and a Zacks Rank 1
GW Pharmaceuticals plc NASDAQ GWPH with an Earnings ESP of 6 36 and a Zacks Rank 2
Teligent Inc NASDAQ TLGT with an Earnings ESP of 100 and a Zacks Rank 2 |
BMY | GNC Holdings GNC Q2 Earnings Will The Stock Disappoint | GNC Holdings Inc NYSE GNC a specialty retailer of health and nutrition related products is scheduled to report its second quarter 2016 financial results on Jul 28 before the opening bell
Last quarter the company posted a negative earnings surprise of 8 00 Moreover GNC Holdings earnings lagged the Zacks Consensus Estimate in three of the past four quarters with an average miss of 4 89
Let s see how things are shaping up prior to this announcement
GNC HOLDINGS Price and EPS Surprise
Factors at Play
GNC Holdings started off 2016 on a discouraging note with its strong suite in vitamin products hit by deteriorating sales of Vitapaks To address this issue management has been taking proactive efforts by improving inventory planning and production process However it is mostly unlikely for consequences of these efforts to stem the plunge in the near term
Besides the company has also started focusing extensively on other vitamin products by offering store associates training to prioritise vitamin solutions for its customers capitalizing on the fact that over 70 of Americans are nutrition deficient through their diets Moreover as per management s earlier directive new promotions and store incentives must have started rolling out by now
We expect these initiatives might bring in a moderate improvement in the vitamin business which will be evident from GNC Holdings yet to be reported quarter results
With respect to its newly introduced products GNC Holdings successfully doubled its revenue in Mar 2016 before it was impacted by the effect of cannibalization Management holds a similar positive outlook from the outcome of new products in the second quarter as well
Moreover management expects the company to record a refranchising pre tax gain of approximately 20 million in the second quarter Further in order to better align its financial reporting structure beginning in the second quarter the company will be changing its reportable operating segment from Retail Franchise and Manufacturing Wholesale to U S Canada International and Manufacturing Wholesale as per its earlier announced plan
On the flip side GNC Holdings gross margin is anticipated to repeat a dreary performance in the second quarter as well as it had in the previous quarter with domestic retail product margin rate expected to stay low
On the other hand too many discounts on excess vitamin inventory nearing expiration date has continued the negative trends of the company s vitamin business which has been plaguing the company in recent times Although management has been trying hard to resolve this problem no near term respite is likely as of now This means the company will continue to see the declining trends in this business in the second quarter as well
GNC Holdings previously slashed its bottom line projection for 2016 on the assumption that these declining sales trend will continue to affect it for the rest of 2016 as well The company now expects to post adjusted EPS in the range of 2 80 2 90 for 2016 compared with the previous guided range of 3 15 3 35 excluding the net gain from corporate to franchise store conversions The current Zacks Consensus Estimate for 2016 EPS is stands at 2 87 within the company s guidance range
Earnings Whispers
Our proven model does not conclusively show that GNC Holdings is likely to beat earnings this quarter That is because a stock needs to have both a positive and a Zacks Rank 1 Strong Buy 2 Buy or 3 Hold for this to happen That is not the case here as you will see below
Zacks ESP GNC Holdings has an earnings ESP of 1 30 That is because the Most Accurate estimate is pegged at 76 cents while the Zacks Consensus Estimate is pegged higher at 77 cents
Zacks Rank GNC Holdings has a Zacks Rank 4 Sell which along with a 1 30 ESP makes surprise prediction difficult
We caution against stocks with a Zacks Rank 4 or 5 Sell rated stocks going into the earnings announcement especially when the company is seeing negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our proven model shows they have the right combination of elements to post an earnings beat this quarter
Bristol Myers Squibb Co NYSE BMY with an Earnings ESP of 1 49 and a Zacks Rank 1
GW Pharmaceuticals plc NASDAQ GWPH with an Earnings ESP of 6 36 and a Zacks Rank 2
Teligent Inc NASDAQ TLGT with an Earnings ESP of 100 and a Zacks Rank 2 |
WMB | Williams Companies Inc The WMB Lags Q1 Earnings And Revenue Estimates | Williams Companies Inc The NYSE WMB came out with quarterly earnings of 0 22 per share missing the Zacks Consensus Estimate of 0 24 per share This compares to earnings of 0 19 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 8 33 A quarter ago it was expected that this pipeline operator would post earnings of 0 22 per share when it actually produced earnings of 0 19 delivering a surprise of 13 64
Over the last four quarters the company has surpassed consensus EPS estimates two times
Williams Companies Inc The which belongs to the Zacks Oil and Gas Production and Pipelines industry posted revenues of 2 05 billion for the quarter ended March 2019 missing the Zacks Consensus Estimate by 13 44 This compares to year ago revenues of 2 09 billion The company has topped consensus revenue estimates two times over the last four quarters
The sustainability of the stock s immediate price movement based on the recently released numbers and future earnings expectations will mostly depend on management s commentary on the earnings call
Williams Companies Inc The shares have added about 28 5 since the beginning of the year versus the S P 500 s gain of 17 5
What s Next for Williams Companies Inc The
While Williams Companies Inc The has outperformed the market so far this year the question that comes to investors minds is what s next for the stock
There are no easy answers to this key question but one reliable measure that can help investors address this is the company s earnings outlook Not only does this include current consensus earnings expectations for the coming quarter s but also how these expectations have changed lately
Empirical research shows a strong correlation between near term stock movements and trends in earnings estimate revisions Investors can track such revisions by themselves or rely on a tried and tested rating tool like the Zacks Rank which has an impressive track record of harnessing the power of earnings estimate revisions
Ahead of this earnings release the estimate revisions trend for Williams Companies Inc The was mixed While the magnitude and direction of estimate revisions could change following the company s just released earnings report the current status translates into a Zacks Rank 3 Hold for the stock So the shares are expected to perform in line with the market in the near future You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead The current consensus EPS estimate is 0 24 on 2 35 billion in revenues for the coming quarter and 0 98 on 9 67 billion in revenues for the current fiscal year
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well In terms of the Zacks Industry Rank Oil and Gas Production and Pipelines is currently in the bottom 23 of the 250 plus Zacks industries Our research shows that the top 50 of the Zacks ranked industries outperform the bottom 50 by a factor of more than 2 to 1 |
WMB | Williams Companies Inc The WMB Lags Q1 Earnings And Revenue Estimates | Williams Companies Inc The NYSE WMB came out with quarterly earnings of 0 22 per share missing the Zacks Consensus Estimate of 0 24 per share This compares to earnings of 0 19 per share a year ago These figures are adjusted for non recurring items
This quarterly report represents an earnings surprise of 8 33 A quarter ago it was expected that this pipeline operator would post earnings of 0 22 per share when it actually produced earnings of 0 19 delivering a surprise of 13 64
Over the last four quarters the company has surpassed consensus EPS estimates two times
Williams Companies Inc The which belongs to the Zacks Oil and Gas Production and Pipelines industry posted revenues of 2 05 billion for the quarter ended March 2019 missing the Zacks Consensus Estimate by 13 44 This compares to year ago revenues of 2 09 billion The company has topped consensus revenue estimates two times over the last four quarters
The sustainability of the stock s immediate price movement based on the recently released numbers and future earnings expectations will mostly depend on management s commentary on the earnings call
Williams Companies Inc The shares have added about 28 5 since the beginning of the year versus the S P 500 s gain of 17 5
What s Next for Williams Companies Inc The
While Williams Companies Inc The has outperformed the market so far this year the question that comes to investors minds is what s next for the stock
There are no easy answers to this key question but one reliable measure that can help investors address this is the company s earnings outlook Not only does this include current consensus earnings expectations for the coming quarter s but also how these expectations have changed lately
Empirical research shows a strong correlation between near term stock movements and trends in earnings estimate revisions Investors can track such revisions by themselves or rely on a tried and tested rating tool like the Zacks Rank which has an impressive track record of harnessing the power of earnings estimate revisions
Ahead of this earnings release the estimate revisions trend for Williams Companies Inc The was mixed While the magnitude and direction of estimate revisions could change following the company s just released earnings report the current status translates into a Zacks Rank 3 Hold for the stock So the shares are expected to perform in line with the market in the near future You can see the complete list of today s Zacks 1 Rank Strong Buy stocks here
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead The current consensus EPS estimate is 0 24 on 2 35 billion in revenues for the coming quarter and 0 98 on 9 67 billion in revenues for the current fiscal year
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well In terms of the Zacks Industry Rank Oil and Gas Production and Pipelines is currently in the bottom 23 of the 250 plus Zacks industries Our research shows that the top 50 of the Zacks ranked industries outperform the bottom 50 by a factor of more than 2 to 1 |
WMB | Ahead Of U S Jobs Report The Greenback Remains Firm | Overview The US April jobs data stand before the weekend and the greenback is holding on to most of yesterday s gains as participants wait for the report Equities in the Asia Pacific region were mixed without leadership from China and Japan where the markets remain closed for the extended holiday On the week Australia s S P ASX 200 was the worst performing It lost 0 8 Hong Kong was the best with a 1 6 gain followed closely by Singapore s 1 3 rise European shares advanced through the morning and pared the week s loss to 0 4 to snap a two week gain The S P 500 reversed lower on Wednesday after setting a new record a little below 2955 It saw follow through selling yesterday but found bid near 2900 and looks technically set to recovery further depending on the US employment report Benchmark 10 year yields are firmer today and adding to the week s increase US 10 year yields are up three basis points on the week ahead of the jobs data The UK yield is up five basis points and Germany up four this week Italian and Spanish yields are slightly softer on the week The dollar gained broadly yesterday and is holding on to most of these gains today The Scandis and the Antipodean currencies are the heaviest on the week Sweden s Riksbank tilted dovish and the Norwegian krone has been sold on softer manufacturing data and the drop in oil prices Brent has fallen for six of the past eight sessions Around 70 20 Brent for July delivery is off a little more than 2 0 for the week ending a five week advance
Asia Pacific
The Reserve Bank of Australia and New Zealand meet next week Both meetings are live in the sense that a change of policy is possible In New Zealand the market thinks it is likely and discounted a little more than a 50 chance In Australia despite the plunge in building approvals reported earlier today 27 3 year over year after February s 12 3 drop the RBA is seen waiting a little longer There is about a one in three chance of a cut discounted
Without Japanese and Chinese markets open investors have to look for regional clues elsewhere Today Malaysia reported March trade data that suggest that while still challenged the slowdown is easing Malaysian exports slipped 0 5 year over year They had fallen 5 3 in February and economists did not expect the magnitude of this improvement Similarly imports eased 0 1 after a 9 4 drop in February
With the extended holiday in Japan the market has been reluctant to move the yen very far The dollar was on the JPY111 handle all week and net net is virtually unchanged on the week around JPY111 50 The Australian dollar is trading heavily In late April it dipped below 0 6990 but bounced back to close above 0 7000 It ran out of steam early this week near 0 7070 and closed at 0 7000 yesterday Earlier today it made a new marginal low since the January 3 flash crash 0 6085 There is a roughly A 870 mln option at 0 7000 that will be cut today
Europe
The results from the local elections in the UK are not all counted yet but the overall results are clear The Tories who had the most seats on the line were punished severely With less than half the councils reporting the Conservative lost about 440 seats Labour was also punished With the partial results Labour lost near 80 seats The big winner for the Liberal Democrats who picked up over 300 seats and Independents Small parties with a clear anti Brexit message also did well according to the early results Many observers see even these partial results as likely adding to the pressure for the Tories and Labour to reach an agreement On the other hand some argue that Labour was punished for not being more supportive of a second referendum or being strategically ambivalent At the same time there is speculation that after losing the Conservatives parliamentary majority and now this drubbing pressure on May to leave may increase This is not good for sterling as it appears to renew the risk of leaving without an agreement
Separately the UK saw a better than expected service and composite PMI The service PMI bounced back from the 48 9 reading in March to 50 4 in April as it returns to expansion mode The PMI composite rose to 50 9 from 50 0 Recall that it averaged 50 6 in Q1
Based on a few countries preliminary April CPI figures warned that the aggregate figure had upside potential It did not disappoint April headline CPI rose 1 7 from 1 4 in March which is slightly more than economists expected The core rate rose to 1 2 from 0 8 while economists expected a gain to only 1 The euro barely reacted Still it should not be lost that the economic data from the eurozone the first look at Q1 GDP and April inflation were stronger than expected
The euro fell three days last week and is down for the third session this week The single currency bottomed last week near 1 1100 and bounced to 1 1265 in the middle of this week before hitting a wall of sellers The slippage below 1 1170 today is troublesome from a technical point of view and warns of the risk of a retest on 1 1100 There are 1 5 bln euros in options between 1 1150 and 1 1155 that will be cut today Even if the US jobs data disappoint the euro may find it difficult to return above the 1 12 area as there are 2 6 bln euros struck between 1 1200 and 1 1210 that expire today Sterling has drifted lower and slipped through yesterday s 1 30 low after the PMI data There is an expiring option for GBP500 mln at 1 30 and options for a few hundred million pounds half a cent below GBP385 mln and half a cent above GBP265 mln
America
The median forecast for US non farm payrolls is for around 190k increase in line with the March increase Although there was a fluke of only 33k jobs created in February the underlying averages have been fairly stable The six month average is 207k The 12 month average is 211k while the 24 month average is 202k The 12 month average peaks in a business cycle as one would expect In this long cycle it peaked in February 2015 near 260k Average hourly earnings are expected to rise by 0 3 which if it materializes would lift the year over year rate to 3 3 from 3 2 The average workweek edged up to 34 5 hours from 34 4 hours in February The workweek has moved back and forth between 34 4 and 34 5 hours since September 2017
With the FOMC meeting past the quiet period ends with a bang At least eight Fed officials are speaking today including Clarida and Williams NYSE WMB Separately a couple of hours after pledging to fight on Moore candidacy was pulled It was never official Trump seemed to let the markets and press do the vetting While many economists were critical of Moore s economics ultimately it was his non economic work that undermined him An important consideration here is that the Republicans have a three seat majority in the Senate It became clear that a fourth Republican Senator was not going to support Moore Moore was the fourth candidate to the Fed that was unsuccessful Cain Liang and Goodfriend Two have been successful Clarida and Quarles
Weaker GDP and a central bank espousing a softer form of neutrality weigh on the Canadian dollar It gave up its earlier gains and is now a little lower on the week The US dollar s response to the jobs data will determine how it closes but the greenback rose in three of the past four weeks Oil prices have not helped this week WTI for June delivery is off for the second consecutive week for the first time this year It peaked on April 23 at 66 60 and yesterday dipped below 61 Nearby resistance is pegged near 62 The US dollar peaked around CAD1 3520 in late April The Dollar Index is firmer today and it has met the 61 8 Fibonacci retracement 97 90 of its recent pullback The recent high was 98 35 which is also its best level since Q2 17 Like with the GDP report a week ago we warn of the risk of buy the rumor sell the fact type of activity |
WMB | EUR USD Eurozone CPI Jumps But Euro Loses Ground | EUR USD is pointing lower for a third straight day Currently the pair is trading at 1 1156 down 0 15 on the day On the release front eurozone CPI Flash Estimate improved to 1 7 in April up from 1 4 a month earlier The core release climbed to 1 2 compared to 0 8 in March Both indicators beat their estimates In the U S the focus is on employment numbers Nonfarm payrolls is expected to slow to 181 thousand Will we see a repeat performance of the ADP release which also was expected in at 181 thousand but soared to 275 thousand Wage growth is expected to climb to 0 3 in April after a negligible gain of 0 1 a month earlier
Eurozone inflation is expected to climb to 1 7 in April marking a 5 month high The stronger reading is a reflection of higher oil prices which has pushed prices higher Inflation is moving closer to the ECB target of close to 2 percent and if the upward trend continues ECB rate setters will have to give some thought to raising interest rate levels The bank recently announced that no rate hikes were planned before the spring of 2020 and this dovish stance makes the euro less attractive to investors
The Federal Reserve maintained the benchmark rate as expected The rate statement noted that inflation pressures are muted and that the FOMC would remain patient regarding future rate movements Jerome Powell reinforced this stance at a follow up press conference saying we don t see a strong case for moving in either direction The Fed is already on record as saying it does not expect to raise rates before 2020 and with inflation levels persistently below the Fed s target of 2 0 the Fed can afford to continue its wait and see stance
EUR USD Fundamentals
Friday May 3
5 00 Eurozone CPI Flash Estimate Estimate 1 6 Actual 1 7
5 00 Eurozone Core CPI Flash Estimate Estimate 1 0 Actual 1 2
5 00 Eurozone PPI Estimate 0 0 Actual 0 1
8 30 US Average Hourly Earnings Estimate 0 3
8 30 US Nonfarm Employment Change Estimate 181K
8 30 US Unemployment Rate Estimate 3 8
8 30 US Goods Trade Balance Estimate 73 0B
8 30 US Preliminary Wholesale Inventories Estimate 0 2
9 45 US Final Services PMI Estimate 52 9
10 00 US ISM Non Manufacturing PMI Estimate 57 2
10 15 US FOMC Member Evans Speaks
11 30 US FOMC Member Clarida Speaks
13 45 US FOMC Member Williams NYSE WMB Speaks
15 00 US FOMC Member Bowman Speaks
Tentative US Treasury Currency Report
19 45 US FOMC Member Bullard Speaks
All release times are DST
Key events are in bold
EUR USD for Friday May 3 2019
EUR USD for May 3 at 6 20 DST
Open 1 1172 High 1 1178 Low 1 1152 Close 1 1157
EUR USD Technical
EUR USD was flat in the Asian session and is slightly lower in European trade
1 1120 is providing support
1 1212 is the next line of resistance
Current range 1 1120 to 1 1212
Further levels in both directions
Below 1 1212 1 1120 1 1046 and 1 0950
Above 1 1300 1 1434 and 1 1553
Original post |
WMB | Welcome To Jobs Friday | Index Futures Net Changes and Settlements
Foreign Markets Fair Value and Volume
In Asia 7 out of 11 markets closed lower Shanghai Comp 0 52 Hang Seng 0 46 Nikkei 0 22
In Europe 13 out of 13 markets closed higher CAC 0 24 DAX 0 39 FTSE 0 75
Fair Value S P 1 07 NASDAQ 12 12 Dow 32 16
Total Volume 1 81 million ESM 256 SPM traded in the pit
Today s Economic Calendar
Today s economic calendar includes Employment Situation 8 30 AM ET International Trade in Goods 8 30 AM ET Retail Inventories 8 30 AM ET Wholesale Inventories 8 30 AM ET PMI Services Index 9 45 AM ET ISM Non Mfg Index 10 00 AM ET Charles Evans Speaks 10 15 AM ET Richard Clarida Speaks 11 30 AM ET Baker Hughes Rig Count 1 00 PM ET John Williams NYSE WMB Speaks 1 45 PM ET Michelle Bowman Speaks 3 00 PM ET James Bullard Speaks 7 45 PM ET Mary Daly Speaks 7 45 PM ET Robert Kaplan Speaks 7 45 PM ET and Loretta Mester Speaks 7 45 PM ET
S P 500 Futures Rollercoaster Swings
Chart courtesy of Stewart Solaka Chicagostock CL F Shaking out longs after leaving them trapped 65 5960 next major test late March low 5817 next major stops
During Wednesday nights Globex session the S P 500 futures ESM19 CME printed a high of 2932 25 a low of 2915 50 and opened Thursday s regular trading hours at 2922 75
The ES was strong out of the gate after the 8 30 CT bell and rallied up to a new high at 2932 75 on solid factory orders data By 9 30 its had double topped at 2932 75 and then started to head lower
Wave after wave of selling pressure came in and the ES would find its way down to a double bottom at 2901 00 a 32 handle move in just under 2 hours The swings just kept coming after that and by 1 30 the futures had recovered back up to 2920 50
Going into the close the ES had pulled back a little trading down to 2909 75 and when the MiM came out showing 103M to sell the futures had popped back up to 2916 00 It would then go on to print 2918 75 on the 3 00 cash close and 2918 00 on the 3 15 futures close down 5 handles on the day
In the end the overall tone of the ES was weak but firmed up at the end of the day In terms of the days overall trade total volume was higher with 1 80 million futures contracts traded
Disclaimer Trading Futures Options on Futures and retail off exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors You should carefully consider whether trading is suitable for you in light of your circumstances knowledge and financial resources Any decision to purchase or sell as a result of the opinions expressed in the forum will be the full responsibility of the person s authorizing such transaction s BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE S AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS |
WMB | EUR USD Euro Ticks Lower | EUR USD is showing limited movement in the Monday session Currently the pair is trading at 1 1189 down 0 11 on the day On the release front the focus is on services PMI reports German services PMI improved to 55 7 just above the estimate of 55 6 This marked the strongest score since September The eurozone release dipped to 52 8 but still beat the forecast of 52 5 Eurozone Sentix Investor Confidence jumped to 5 3 well above the estimate of 1 1 As well retail sales slowed to 0 0 above the estimate of 0 1 There are no economic releases in the U S On Tuesday the U S releases JOLTS Job Openings
Eurozone inflation is expected to climb to 1 7 in April marking a 5 month high The stronger reading is a reflection of higher oil prices which has pushed prices higher Inflation is moving closer to the ECB target of close to 2 percent and if the upward trend continues ECB rate setters will have to give some thought to raising interest rate levels The bank recently announced that no rate hikes were planned before the spring of 2020 and this dovish stance has made the euro less attractive to investors The euro is down 2 4 since the start of the year
In the U S the week ended with mixed employment numbers Wage growth edged up to 0 2 shy of the estimate of 0 3 However nonfarm payrolls sparkled climbing to 263 thousand up from 196 thousand a month earlier The reading easily beat the forecast of 181 thousand Despite the strong payrolls release the euro managed to post slight gains on Friday
EUR USD Fundamentals
Monday May 6
3 00 Spanish Unemployment Change Estimate 85 0K Actual 91 5K
3 15 Spanish Services PMI Estimate 54 9 Actual 53 1
3 45 Italian Services PMI Estimate 54 4 Actual 50 4
3 50 French Final Services PMI Estimate 50 5 Actual 50 5
3 55 German Final Services PMI Estimate 55 6 Actual 55 7
4 00 Eurozone Final Services PMI Estimate 52 5 Actual 52 8
4 30 Eurozone Sentix Investor Confidence Estimate 1 1
5 00 Eurozone Retail Sales Estimate 0 1
10 00 US FOMC Member Williams NYSE WMB Speaks
Tuesday May 7
2 00 German Factory Orders Estimate 1 6
5 00 EU Economic Forecasts
10 00 US JOLTS Job Openings Estimate 7 35M
All release times are DST
Key events are in bold
EUR USD for Monday May 6 2019
EUR USD for May 6 at 5 30 DST
Open 1 1201 High 1 1201 Low 1 1170 Close 1 1189
EUR USD Technical
EUR USD posted small gains in the Asian session and is flat in European trade
1 1120 is providing support
1 1212 is a weak resistance line
Current range 1 1120 to 1 1212
Further levels in both directions
Below 1 1120 1 1046 and 1 0950
Above 1 1212 1 1300 1 1434 and 1 1553 |
WMB | USDJPY Slips On Goldilocks U S NFP Data Dovish Fed Talks And Lingering Suspense | USDJPY closed around 111 11 in the US session Friday slumped almost 0 37 despite blockbuster US NFP headline as Goldilocks wage growth not strong enough to boost the prospect for higher consumer inflation and further Fed rate hikes But Dow jumped on mixed US NFP job report as it is not too cold but perfect for the Goldilocks nature of the US economy and consumer spending yet not too hot for any Fed rate hike action in the coming months The USD was also dragged by dovish Fed talks on Friday while Dow got some boost
The US dollar was also undercut by other mixed economic data on Friday The ISM non manufacturing PMI slumped to 55 5 in April from prior 56 1 lower than the expectations of 57 2 The US Service PMI for April edged up to 53 0 from prior 52 9 better than the expectations of 52 9 The Markit composite PMI slumped to 53 0 in April from prior 54 6 higher than the expectations of 52 8
The US goods trade deficit for March dropped to 71 45B from prior 80 38B revised higher than 79 49B lower than the expectations of 73 00B Total exports of goods from the US surged by 1 to around 140 30B while imports also increased by 0 9 to 211 75B The US has a monthly surplus in services and thus the overall goods services March trade deficit could come below February figure of 49 4B positive for Q1 revision of GDP
The US wholesale inventories for March dropped to 0 0 from prior growth of 0 2 lower than the expectations of no change at 0 2 may be negative for Q1 GDP revisions
After a deluge of mixed U S economic data the Atlanta Fed boosted its Q2 GDP forecast to 1 7 from prior 1 2 The Atlanta Fed said After this morning s Advance Economic Indicators release from the U S Census Bureau and this morning s employment report from the U S Bureau of Labor Statistics the nowcast of the contribution of inventory investment to second quarter real GDP growth increased from 1 52 percentage points to 1 02 percentage points
The NY Fed also revised its Q2 GDP forecast to 2 15 from 2 08 The NY Fed said Negative surprises from the ISM manufacturing survey were largely offset by positive surprises from personal consumption and employment data
On Friday after the blockbuster NFP headline with Goldilocks wage growth the White House CEA NIC Kudlow said he thinks the Fed is looking at rate cuts because the Fed Fund Future rate indicating the same
Kudlow said With these low inflation numbers I think the Fed is actually looking at rate cuts I mean some of which were priced into the market may be up until a few days ago The White Houses views intellectually are not really far apart from the Federal Reserve right now The Fed is independent and I m not going to outguess their timing They are going to do what they want to do on their own time
Kudlow argued that despite blockbuster U S GDP and unemployment rate the Fed is going to cut for lower inflation What I ll say is again using the analysis what we found is that all these incentives in the economy creating strong growth in jobs with no inflation and the Fed is looking at the inflation numbers and I don t think they are inclined to fine tune real GDP I think they are inclined to think low inflation might suggest the need for lower interest rates There is a good chance the U S economy could get 4 growth and below 3 6 unemployment at some point this year
Later in a promotional video Kudlow almost shouted boasted about the U S economy Wow low unemployment high jobs high wages big consumer confidence major productivity and NO inflation It s totally awesome we re killing it on the economy
Kudlow also tried to counter Democrat 2020 front runner and a former U S VP Biden on the success of the Trump tax cuts and jobs act This came after Biden argued that Trump s tax cuts only benefit the rich and do little to boost middle class Americans
Kudlow said the former VP needed to get his facts straight and urged him to re examine how successful the president s policies have been on the economy Kudlow said many Americans feel much more confident in their personal finances due to the robust job market Kudlow also pointed out that the majority of job and wage growth highlighted in April s jobs report came from the blue collar sector
On the growing debate about funding for the proposed bipartisan infra stimulus package of 2T over 25 years and Trump s unwillingness to fund it through additional tax on gasoline Kudlow said I do not favor a higher Federal tax on gasoline to fund an infra initiative but if states wanted to raise their own gas taxes that was up to them
On Friday the US VP Pence also echoed Kudlow and argued for Fed rate cuts Pence said in an interview soon after the blockbuster US NFP headline The economy is roaring This is exactly the time not only to not raise interest rates but we ought to consider cutting them
On Tuesday Trump also tried his best in an unprecedented way to influence Fed s decision just ahead of the Wednesday Fed outcome and urged for 1 rate cut with QE 4 like Chinese stimulus Trump tweeted
China is adding great stimulus to its economy while at the same time keeping interested rates low Our Federal Reserve has incessantly lifted interest rates even though inflation is very low and instituted a very big dose of quantitative tightening We have the potential to go up like a rocket if we did some lowering of rates like one point and some quantitative easing Yes we are doing very well at 3 2 GDP but with our wonderfully low inflation we could be setting major records at the same time make our National Debt start to look small
The market is also concerned about Trump s unprecedented open consistent attack public criticism and interfering on the Fed which was also one of the primary reasons behind December plunge
On Friday USD was also affected by dovish talks from a deluge of Fed speakers
On Friday Fed s Bullard a known dove sounds moderately dovish and said Fed fund rate is a little tight as Inflation is uncomfortably low The low core PCE inflation is making me a little bit nervous I would like to take this opportunity to re center inflation expectations around 2 which I think would pay dividends The Dallas Fed trimmed mean is at 2 and we re probably at the point where we want to be assessing the data Inflation expectations look a little light and I don t think that s a good place to be I see 2 5 GDP growth this year
The St Louis Fed President Bullard said I think we re a little tight on the fund s rate not too much but a little bit tight I think the global safe real rate in the short term is about zero The single mandate would not change policy much and if the real rate measured against inflation is zero and inflation runs around 2 then that also should put the Fed s benchmark at 2 I would like to take this opportunity to re center inflation expectations at 2 I think that would pay handsome dividends for the Fed going forward
Bullard argued The Fed made a huge move in January by taking future rate cuts off the table January policy change has helped bring down treasury yields should boost inflation A rate cut during boom times would show the Fed is serious on the inflation target The Fed policy is little tight it should be careful We ve made some big moves in monetary policy over the last three or four months I think it s time to wait and see how that s going to impact the economy going forward I am open to a rate cut if inflation is still low after summer
In a veiled reference to ongoing Fed policy tantrum by Trump Co Bullard said We get advice from all kinds of people including you and including other politicians We get a lot of input from a lot of different angles but we ultimately do as per incoming projected economic data for the best interest of America
On Friday in an academic research report Fed s Williams NYSE WMB argued for average inflation targeting i e to keep rates low and let inflation runs higher Basically Williams an influential Fed policymaker and so called neutral guru made the case for changing how the Fed responds to periods of tepid inflation by keeping interest rates lower for longer Overall Williams sounds more dovish than expected
The NY Fed President Williams said
This paper uses a standard New Keynesian model to analyze the effects and implementation of various monetary policy frameworks in the presence of a low natural rate of interest and a lower bound on interest rates Under a standard inflation targeting approach inflation expectations will be anchored at a level below the inflation target which in turn exacerbates the deleterious effects of the lower bound on the economy
Two key themes emerge from our analysis First the central bank can eliminate this problem of a downward bias in inflation expectations by following an average inflation targeting framework that aims for above target inflation during periods when the policy is unconstrained Second dynamic strategies that raise inflation expectations by keeping interest rates lower for longer after periods of low inflation can both anchor expectations at the target level and further reduce the effects of the lower bound on the economy
On Friday Fed s VC Clarida a known policy dove also sounds neutral In a speech prepared text Clarida argued for the Fed s present patient neutral stance with data dependence
Clarida said The Fed can afford to be data dependent as the economy in a very good place The real wages are rising in line with productivity and the Fed funds rate is now in a range of neutral estimates Thus the Fed can afford to be data dependent as the inflation pressure is muted and expected inflation is also stable The economy is at or close to objectives on inflation and unemployment The U S economy is in a very good place The unemployment rate is at a 50 year low real wages are rising in line with productivity inflationary pressures are muted and expected inflation is stable
Clarida argued Overall the US economy is in a good place along with those conditions and the Fed s benchmark funds rate is around the level that policymakers consider neutral neither stimulative nor restrictive for growth So with the economy operating at or very close to the Fed s dual mandate objectives and with the policy rate in the range of FOMC participants estimates of neutral we can I believe afford to be data dependent as we assess what if any further adjustments in our policy stance might be required to maintain our dual mandate objectives of maximum employment and price stability
Clarida also pointed out that the U S economy was at or close to the Fed s objectives on inflation and unemployment and although inflation is muted but inflation expectations are stable
Clarida said With the economy in a very good place the Fed can afford to monitor incoming data before making a decision on any further changes to the target interest rate Financial market information can provide a reality check for officials but can also be noisy and must be supplemented with information from surveys and good judgment of officials
Clarida also does not see evidence of a looming recession at the moment but the central bank Fed needs to be vigilant and alert to risks to the outlook as Fed s policy needs to be forward looking depending on the view of the economic outlook
Clarida said Policy needs to be forward looking so decisions that a central bank makes today need to depend upon the view that it has about the evolution of economy On a question whether the US is headed for a recession a year or two down the line Clarida said Fed policymakers are looking at a wide range of indicators and we do not see that evidence now
On Friday Fed s Mester a known policy hawk sounds neutral less dovish as she supported the Fed s patience approach and basically termed lower inflation as transitory
Mester said I do not see inflation pressures are building and I fully support our patient approach as the interest rates are appropriate where they are We have a strong labor market and stable prices inflation The US productivity is positive and moving in the right direction and the productivity growth is positive for the economy There are some good reasons to think some low inflation is transitory and rates are about at neutral We have to take seriously our 2 inflation goal as the economy is in a really strong place I expect a 2 2 1 2 growth this year as some of the global headwinds have subsided I would be concerned if inflation expectations fell as the risk is balanced right now
The Cleveland Fed President Mester said
Our interest rate policy I think is exactly appropriate for now and we ll just see how the economy evolves I fully support our patient approach to looking at what the data are telling us as it comes in Our interest rate policy I think is exactly appropriate for now and we ll just see how the economy evolves The job market is strong and today s report just reinforces that we have a strong labor market which is great We have inflation a little bit below our target but stable prices We have productivity growth growing which is a good positive for the economy
I do think that we have to take seriously our 2 inflation goal and work to try to get inflation back to our goal over time But I also agree that we need to be patient about it and we need to look at the data and underlying data to understand what s going on I would be concerned if inflation expectations were falling if aggregate demand was falling if the signal of low inflation was that growth was going down but there s no evidence of that
Mester also added The IOER tweak was a technical adjustment not a policy signal and I do not have the impression that bank reserves are getting scarce and the Fed is always striving to not surprise financial markets
Fed s Kaplan largely a policy owl neutral sounds optimistic as he said the US economy is growing at a solid rate
Kaplan said The economy is running out of capacity in employment and the US economy to grow around 2 5 The Fed is in the neighborhood of neutral rates and the Dallas Trimmed mean inflation is around 2 The inflation should remain muted because of technology and the global economy the businesses have less pricing power today But the US is not immune to weaker growth abroad and I worry that weak growth outside the US could have some muting effect on GDP growth The skills of the workforce are lagging as the corporate debt is at record levels in a downturn it could be an amplifier in a downturn I am glad we have a dual mandate
The Dallas Fed President Kaplan basically argued for structural factors behind muted U S inflation and said It s not that we don t have any inflation Inflation forces I think are going to be muted including technology Technology enables disruption and to some extent globalization Businesses have less pricing power today and this comes through in corporate earnings report and it comes through in all my conversations
After the blockbuster U S NFP headline Kaplan said the US job market is tight and the US economy is running out of workers
Kaplan said I think it s still my view that we are running out of the capacity in the workforce We are bringing people in off the sidelines But we are starting to approach prime rates of participation pre crisis and we are reaching pre recession lows on discouraged workers in a good way I would expect it s going to slow down but I don t think it s going to be a bad sign
On early Monday Asian session USDJPY plunged almost 0 75 to a session low of 110 29 on risk aversion as Trump escalates his China trade war rhetoric quite unexpectedly and threatened China with 25 tariffs despite earlier claiming China trade deal is in very advanced stage imminent China also reportedly vowed to abandon further trade deal talks and as a result Dow future tumbled over 500 points amid global sell off China plunged almost 6
On Sunday Trump tried to pressurize China ahead of Chinese VP Liu He s visit later this week and tweeted that the trade deal with China is too slow as China attempts to renegotiate
In a bizarre move Trump tweeted claiming that China is now paying tariffs which is boosting the US economy at least partially
For 10 months China has been paying Tariffs to the USA of 25 on 50 Billion Dollars of High Tech and 10 on 200 Billion Dollars of other goods These payments are partially responsible for our great economic results The 10 will go up to 25 on Friday 325 Billions Dollars of additional goods sent to us by China remain untaxed but will be shortly at a rate of 25 The Tariffs paid to the USA have had little impact on product cost mostly borne by China The Trade Deal with China continues but too slowly as they attempt to renegotiate No
But USDJPY also recovered to some extent and is currently trading around 110 75 slumped by 0 30 as another report suggested that Chinese Vice Premier Liu He Likely to delay U S trip by three days rather than complete abandon and Chinese negotiators preparing to travel to the U S for trade talks despite Trump s threat But China doesn t directly answer the question of whether vice premier and top Chinese negotiator Liu He is a part of the Chinese delegation preparing to go to the US And there is also another report that China may consider skipping trade talks this week although overall China reaction is quite calm and composed as usual rather than fire fury
Technical view USDJPY
Technically whatever may be the narrative USDJPY now has to sustain over 111 00 for a further rally to 111 75 111 95 112 15 112 50 and 112 95 113 50 114 00 114 55 in the near term under bullish case scenario
On the flip side sustaining below 110 80 110 60 USDJPY may further fall to 110 00 109 70 109 00 108 50 and 108 00 107 70 107 00 106 40 in the near term under bear case scenario |
WMB | GBP USD Pound Volatility Continues In Thin Holiday Trade | GBP USD has started the week with considerable losses after posting sharp gains on Friday Currently GBP USD is trading at 1 3106 down 0 52 on the day British banks are closed for the May Day holiday and there are no British events On Tuesday Germany releases factory orders and the EU posts its economic forecasts of member states The U S will post JOLTS Jobs Openings
The pound ended the week on a high note soaring 1 1 percent Investors reacted positively to the comments from BoE Mark Carney on Thursday The BoE maintained interest rates but BoE Governor Mark Carney had a hawkish message for the markets Carney said that there could be a number of rate hikes from the bank if Brexit is resolved and growth and inflation point higher The markets have priced in just one rate hike until 2021 so Carney s comments mark a vote of confidence in the British economy from the BoE There was more positive news on Friday as services PMI improved to 50 4 in April up from 48 9 a month earlier
In the U S the week ended with mixed employment numbers Wage growth edged up to 0 2 shy of the estimate of 0 3 However nonfarm payrolls sparkled climbing to 263 thousand up from 196 thousand a month earlier The reading easily beat the forecast of 181 thousand The unemployment rate dipped to 3 6 in April down from 3 8 a month earlier This marked the lowest unemployment rate since 1969
GBP USD Fundamentals
Monday May 6
10 00 US FOMC Member Williams NYSE WMB Speaks
Tuesday May 7
10 00 US JOLTS Job Openings Estimate 7 35M
All release times are DST
Key events are in bold
GBP USD for Monday May 6 2019
GBP USD May 6 at 7 25 DST
Open 1 3175 High 1 3175 Low 1 3100 Close 1 3106
GBP USD Technical
GBP USD posted losses in the Asian session and the downward movement continues in European trade
1 3070 is providing support
1 3170 is the next resistance line
Current range 1 3070 to 1 3070
Further levels in both directions
Below 1 3070 1 3000 1 2910 and 1 2841
Above 1 3170 1 3217 and 1 3300
Original post |
C | Markets Trade In Positive Territory On Citigroup Rumors | Current Futures Dow 208 00 S P 25 65 NASDAQ 35 50 European Trade Asian markets strengthened overnight snapping a four day slide while U S futures are currently pointing to a very strong open on Wall Street this morning The reason traders turned to buying stocks was speculation that the government will intervene again to support the falling stock market and additional upside momentum came on rumors that Citigroup is looking for potential buyers Right now the bank is trading near the 6 mark more than 80 lower than its value at the beginning of 2008 For a while Citigroup was seen as the largest U S bank but strong declines have caused it to fall to fifth place So far company officials have declined to confirm any of the rumors Earlier this week Citigroup announced it would cut about 50 000 jobs in order to reduce costs The financial industry has shed approximately 200 000 jobs this year and analysts expect this number to be much larger by the next year as write downs in the banking industry continue So far financial companies have written down almost a trillion dollars in bad loans Bonuses and other additional benefits have also dropped in the industry In the overnight session the Nikkei gained 207 75 points 2 70 to 7 910 79 In Australia the S P Asx rose 63 60 points 1 90 to 3 416 50 European shares are also trading in the green as the Dax has gained 52 27 points 1 24 The U K Ftse rose 41 94 points 1 08 since the new trading day started Crude oil is posting small gains after making a new low for the current year Crude oil for December delivery gained 1 10 to 49 90 Gold is advancing in response to dollar weakness Bullion for immediate delivery gained 12 60 to 758 00 Previous Asian trade Asian shares are down for the fifth consecutive day on concerns the global recession will last much more than expected U S markets extended the declines seen in the last few days touching a multi year bottom Yesterday a report showed the U S weekly unemployment claims approach a 26 year old high The report said that 542 000 new persons were looking for unemployment benefits in the week to Nov 8 There were 4 012 million staying on benefits and this number is expected to increase in the coming months A report showed that manufacturing in the Philadelphia region reached an 18 year low Because of these very poor releases investors flew to the safety of treasuries sending the longer term yields to record low levels |
C | GLOBAL MARKETS Stocks rebound on rate cut hopes oil rises | MSCI world equity index up 0 9 percent at 192 09
Hopes for interest rate cuts cushion economic gloom
Government bonds rally oil rises from 3 1 2 year low
By Natsuko Waki
LONDON Nov 21 Reuters World stocks rebounded from a
5 1 2 year low on Friday and oil rose above 50 as expectations
of further interest rate cuts helped to cushion deepening gloom
about the broader economy
Wall Street was set for a firmer start one day after the
benchmark S P 500 index fell to its lowest level since 1997 as
troubles at Citigroup and U S automakers triggered fears about
the wider economy
However hopes that the world s central banks would cut
interest rates further with talk that China might lower
borrowing costs later on Friday helped world stocks off an
earlier 5 1 2 year low
The darkest hour is just before dawn said Justin Urquhart
Stewart director at Seven Investment Management
The actions being taken are the key difference between the
1930s and now
MSCI world equity index was up 0 9 percent after hitting its
lowest level since April 2003
The FTSEurofirst 300 index also rose 0 2 percent Emerging
stocks gained 2 5 percent U S stock futures were up almost 3
percent
U S crude oil gained 1 7 percent to 50 23 a barrel having
hit a 3 1 2 year low below 49 earlier
The December bund future fell 30 ticks reversing earlier
gains The two year U S Treasury yield touched a fresh record
low of 0 9586 percent before rising
In Asia the 10 year Treasury note dropped a full point in
price to yield 3 112 percent after hitting 2 990 percent on
Thursday its lowest level since the 1950s The 10 year yield
was trading at above 4 percent only in June
The main risk is the recession and that we are probably
ahead of the worst year over the last century in terms of
economic growth and that this will take its toll on many
industries said Kornelius Purps fixed income strategist at
UniCredit
We are probably only at the beginning of this poor
performance in terms of economic growth and other factors will
follow This is quite worrisome and will keep a bid in the bond
market
The yen fell 1 percent to 94 62 per dollar after hitting a
three week high beyond 94 earlier The dollar fell 0 5 percent
against a basket of major currencies
LICENCE TO CUT
Talk of Chinese interest rate cuts complemented a rumour
that authorities might soon announce the creation of a 300
billion yuan fund to support the stock market
Euro zone interest rates are also expected to fall next
month and possibly earlier A purchasing managers index survey
showed on Friday that output of euro zone services and
manufacturing business sank much further and faster than
expected in November to record lows
JP Morgan also said that bigger than expected declines in
Canadian inflation also allow the central bank to cut interest
rates more aggressively in December by as much as half a
percentage point
The Bank of Japan however kept its key policy rate
unchanged at 0 30 percent on Friday Governor Masaaki Shirakawa
said more rate cuts could disrupt markets as they might cause
various problems in ensuring smooth fund supply in money
markets
Additional reporting by Brian Gorman and Emelia
Sithole Matarise Editing by Ron Askew |
C | CORRECTED TOPWRAP 1 Obama says long haul ahead China offers help | corrects name of forum in paragraph 14
Obama says crisis to get worse before better
China willing and able to help out Hu says
Soros has faith in Obama but says U S needs more cash
By Angus MacSwan
LONDON Nov 22 Reuters U S President elect Barack Obama
said on Saturday he was crafting a two year plan to fight an
economic crisis of historic proportions and Chinese leader Hu
Jintao said his country was ready to play a big role in the
global effort
In another sober assessment billionaire investor George
Soros said the U S economy needed an additional 300 billion to
600 billion in support funds to help it withstand a financial
crisis which he said has exceeded my most daring expectations
The corporate scenario also darkened with U S automaker
General Motors Corp considering all options including
bankruptcy because of its liquidity problems according to the
Wall Street Journal
And banker Citigroup Inc began talks with the U S
government amid doubts about its ability to survive
There are no quick or easy fixes to this crisis which has
been many years in the making and it s likely to get worse
before it gets better said Obama who takes over from U S
President George W Bush on Jan 20
He was speaking in a radio address one day after U S stock
markets rallied on word that he had chosen the New York Federal
Reserve president Timothy Geithner as Treasury secretary
Obama gave a bleak view of the situation saying swift and
bold action was needed to prevent a deep slump a spiral of
falling prices and millions of job losses
He signalled he was prepared to push for a much larger
package than the 175 billion stimulus measure he called for in
his election campaign His plan would set a goal of creating 2 5
million more jobs by January 2011 a two year scenario
The news this week has only reinforced the fact that we are
facing an economic crisis of historic proportions Obama said
CHINA TO THE RESCUE
Chinese President Hu speaking in Lima Peru said the Asian
powerhouse would work alongside the international community to
strengthen cooperation and protect international markets
China has been a major driver of the world economy as its
rapid expansion fuelled demand for raw materials But with so
many troubled countries looking to China to ease their financial
woes Beijing has until now been wary of taking a leading role
China is within the scope of its abilities taking major
efforts to address the financial crisis Hu said in a speech to
business leaders
This included providing support for liquidity for domestic
financial institutions and coordinating macroeconomic policy
with other countries
Hu is in Lima for a summit of leaders from Asia and the
Americas within the Asia Pacific Economic Cooperation APEC
forum whose countries represent more than half of global output
They are expected to ratify previous commitments by the
Group of 20 powerful world economies to use trade and government
spending to combat the economic crisis
The leaders of Japan Indonesia Australia Canada Mexico
and Russia and other countries will join Hu and U S President
Bush at the weekend summit
Soros one of the world s first and best known hedge fund
managers told Germany s Der Spiegel magazine the United States
needed an infrastructure programme and a large economic stimulus
package to provide its cities and states with sufficient cash
The U S government has launched a 700 billion financial
bailout initiative in response to the turmoil But the U S
economy needed additional support measures of between 300
billion and 600 billion Soros said
He criticised U S Treasury Secretary Henry Paulson for
having reacted too late to the crisis but said he had high hopes
about Obama s ability to manage the situation
The duration of the crisis depends on the success of his
policies Soros said according to Der Spiegel
SCARY MOVIES
In Germany Chancellor Angela Merkel said she expected the
first few months of next year to bear more bad news for Europe s
largest economy which is now in recession
Merkel told Welt am Sonntag newspaper that economic
development in Germany Europe and the rest of the world was
hard to predict but we have to expect the coming year at least
in the first months to be a year of bad news
The Wall Street Journal said General Motors was considering
all options because of its liquidity problems A GM spokesman
told the paper that management was doing everything it could to
avoid a bankruptcy filing
Chief executive Rick Wagoner along with bosses from Ford
Motor Co and Chrysler this week went to Capitol Hill to plea for
25 billion in aid to bail out the auto industry
Citigroup executives meanwhile met Federal Reserve and
U S Treasury Department officials in recent days to discuss its
options which include another capital injection from the
Treasury a person familiar with the matter said
The bank s management has also discussed selling off units
or finding another bank to merge with
It s fear and panic at this point said Gerard Cassidy a
banking analyst at RBC Capital Markets in Portland Maine
Investors have seen similar movies this year and the
endings are very unpleasant
Reporting by Reuters bureaux Writing by Angus MacSwan World
Desk Editing by Matthew Jones |
C | Asian Markets Down On Citi News | Asian trade Even though the Japanese market was closed tonight Asian indexes fell as it seems more problems may emerge from the banking industry The cost of borrowing in the Asian markets is up again while some are preparing for other collapses in the financial system Since they did not have enough time until now Citigroup is thinking of ways to limit the bank s exposure to bad debt This comes after unconfirmed rumors emerge that the bank is trying to sell itself Most likely no one was interested as the stock value plunged more than 50 in just one week This time it seems the Treasury and the Fed are on the line trying to secure somewhere around 100 billion of bad debt Citi s actions could not go without notice since its probably signaling more problems ahead As a result Asian money markets rose again threatening to disrupt the recent actions taken by the world s major central banks and governments In the overnight session the Nikkei was closed for business while the Australian S P Asx fell 38 00 points 1 11 to 3 378 50 So far this year the Asian markets shed half of their value deleting every gain made in the last few years Crude oil trade mixed at the beginning of the new week Crude oil for December delivery gained 0 30 to 50 44 Gold fell in the Asian session because of the dollar strength Bullion for immediate delivery fell 9 45 to 793 40 Previous Wall Street trade While it is not official the financial press reported Friday afternoon that President Elect Barack Obama will be tapping New York Federal Reserve Bank President Tim Geithner as the new Secretary of the Treasury Geithner was a U S Treasury Department official under both Robert Rubin and Lawrence Summers and has been with Treasury since 1988 He has also worked closely with Secretary Paulson on managing the economic bail out The Wall Street Journal also reported that Mr Obama plans to introduce his entire economic team on November 23 in an effort to sooth financial markets and answer rising pressure on the president elect to become more involved Previous European trade In Europe markets declined after Goldman Sachs lowered their estimate of U S GDP for 2009 and said unemployment would worsen The move may be reversed once markets open Monday on news of Tim Geithner s nomination as Treasury Secretary |
C | INDIA CREDIT Tight credit small bonuses hit India real estate | By Rina Chandran
MUMBAI Nov 24 Reuters The giant cranes that once
worked long into the Mumbai night are still the roar of
concrete mixers has dulled and hundreds of migrant workers
have gone home
A slowing economy high interest rates tighter credit and
a falling stock market have left developers in India s
financial hub scrambling for cash and delaying or cancelling
ambitious commercial and residential projects
The Mumbai skyline has been transformed in recent years as
developers rushed to build gleaming office blocks swanky
apartment towers and sprawling malls
Land prices quadrupled in some areas in the last three
years and commercial and residential spaces in Mumbai have
become among the world s most expensive
Rising incomes low interest rates a soaring stock market
and foreign investment fuelled the boom Now some fear a bust
Besides the liquidity crunch there is a real crisis of
confidence said Anshuman Magazine managing director for
south Asia at real estate consultancy CB Richard Ellis
The boom permitted more people to own homes offices to
expand hotels to add rooms If there is a prolonged slump we
will see empty buildings and half built constructions It will
be a big setback we re already so far behind in
infrastructure
Land and property prices could fall by between 15 and 50
percent with some distress sales expected in the months ahead
analysts say with a sustained slump having a serious impact on
the already stretched infrastructure of the city and the
country
With half India s wealth tied to property according to
CLSA estimates the potential impact on banks and the economy
is big
FEW ENQUIRIES
Economic growth of about 9 percent a year in the last three
years had boosted demand for hotels offices homes and malls
as well as roads ports and airports
After India eased rules on inward investment in the
construction industry in 2005 foreign investors including
Citigroup and JP Morgan pledged some 20 billion for the
property market and developers were also buoyed by easy credit
available
Now much of that foreign money may not arrive while banks
are averse to real estate lending because risks are perceived
to be higher ratings agency ICRA said
Private equity firms and global banks which had hankered
for slices of big realty projects have turned off the tap
while banks are subjecting home loan applicants to greater
scrutiny and demanding bigger margin requirements scaring off
buyers
Enquiries for office space have slowed all year and
rentals even in such prime locations as Nariman Point in south
Mumbai have fallen by 10 15 percent CB Richard Ellis
estimates
In the central business district of Worli and Parel where
glass and chrome office towers have replaced derelict textile
mills rentals have fallen and will soften further as large
banks and software services firms put the brakes on expansion
plans
Consumers are postponing decisions to rent and buy while
there are delays in project execution on account of shortages
in manpower and working capital funds said ICRA which
recently downgraded several real estate firms
Shares of the country s four largest real estate firms DLF
Ltd Unitech Housing Development Infrastructure and
Indiabulls Real Estate are down by more than 75 percent so far
this year
WILLING TO WAIT
Desperate developers are offering broker commissions for
the first time negotiating on quoted rentals and even
throwing in freebies such as furniture home appliances
jewellery and cars
It is the home segment of more than 100 million rupees 2
million where demand is very weak because it is linked to big
bonuses and stock market returns which have taken a hit said
Abhisheck Lodha a director at developer Lodha Group
Only in the segment of less than 10 million rupees is there
still buyer interest he said while the segment of 10
million 100 million rupees has been hit by tighter credit
The tough environment has deterred Prashant Shetty a
30 something finance professional who abandoned his search for
a two bedroom apartment in suburban Mumbai a few months back
Prices haven t bottomed out yet I m willing to wait
India s central bank this month announced a slew of
measures to ease the pain allowing housing finance firms to
raise funds through short term overseas borrowings and lowering
the risk weight for banks exposure to commercial real estate
Still there is a higher risk of debt re financing and debt
and interest defaults Citigroup Global Markets said in a
report
Developers will change strategies focusing on mid income
housing for instance and on execution and completion of
existing projects rather than buying speculatively
But Shetty whose lease runs out in January is
unconvinced
I am renewing my lease on my apartment he said That s
what makes the most sense for me now
1 49 rupees
Editing by Simon Denyer and Jerry Norton |
Subsets and Splits
No community queries yet
The top public SQL queries from the community will appear here once available.