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C | Government Announces Plan to Rescue Citi | Citigroup is set to receive a lifeline from the U S government in order to avoid bankruptcy More than 300 billion worth of bad debt will be guaranteed by the Treasury in the coming months In addition to the security package the bank will receive a 20 billion cash infusion totaling 55 billion received from the Treasury through the Troubled Asset Relief Program TARP Last week Citi s shares plunge a record 60 as the bank was trying to sell itself to avoid Chapter 11 Even though these rumors had never been confirmed the bank fell to the lowest price in the last decade Throughout this period the bank s officers and executives insisted the bank is very well capitalized and has strong reserves of liquid assets Now it seems that was not the case after all At the current share value the bank s market cap is around 20 billion far less than the write downs that would have resulted from the portfolio of 300 billion worth of bad debt The move to save another bank will probably have a positive effect on the equity markets as it shows the government is not about to let another Lehman situation happen any time soon However futures traders have not yet reacted to the news release as the S P Futures are down by 15 70 points currently |
C | GLOBAL MARKETS Citi rescue plan boosts world shares | MSCI world equity index up 1 percent at 197 70
300 billion plus rescue plan for Citi boosts shares
Oil down yen up as economy concerns linger
By Natsuko Waki
LONDON Nov 24 Reuters World stocks rebounded on Monday
from last week s 5 1 2 year low after the U S government
unveiled a 300 billion plus rescue package for banking giant
Citigroup while oil slipped again on demand concerns
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
However oil fell and the low yielding yen rose as the plan
failed to erase worries about the impact of deteriorating major
economies on corporate profits and consumer consumption
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 fact that they re Citigroup going to be provided with
government support is a major boost said Peter Dixon
economist at Commerzbank
But everyone s got every right to feel fairly jittery
The very fact that the government is stepping in is a very bad
sign it shows how overstretched the financial system was
MSCI world equity index was up 1 percent having hit a 5 1 2
year low on Friday Emerging stocks bucked major markets to fall
0 9 percent led by falls in Chinese stocks
Citi s shares rose nearly 40 percent in Frankfurt
U S crude oil fell 1 8 percent at 49 04 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 more gloomy about the business
outlook
The yen rose 0 6 percent to 95 29 per dollar as investors
shunning risky assets sought the low yielding currency The
dollar rose 0 1 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 was steady
Additional reporting by Rebekah Curtis Editing by Toby
Chopra |
C | FOREX Yen gains risk aversion high on economic fears | Yen rallies high yielders fall on deleveraging
Risk aversion remains despite Citi rescue
Weak German Ifo underlines struggling euro zone economy
Changes dateline byline adds comment updates throughout
previous HONG KONG
By Naomi Tajitsu
LONDON Nov 24 Reuters The yen climbed on Monday while
higher yielding currencies stumbled as investors continued to
dump risky assets after news of a U S government rescue plan
for Citigroup did little to convince the market that the end of
the financial crisis is near
Market participants applauded the U S government s 300
billion lifeline to prevent the collapse of the world s largest
banking group but analysts said ongoing concerns about a global
recession would keep the broad deleveraging trend intact
The Citigroup plan is a good thing in the sense that its
good for financial stability but concerns still remain about
the state of the global economy and the state of the financial
system worldwide said Chris Gothard currency analyst at Brown
Brothers Harriman in London
The trend over the last couple of months has been dollar
and yen strength mainly due to investor caution and
deleveraging We don t really see that changing
The euro briefly slipped as low as 1 2568 pressured as
ongoing deleveraging of risky assets kept the single European
currency on the back foot By 1010 GMT it was up 0 6 percent at
1 2660
The euro pulled back having also come under some early
selling pressure after a weak reading for the German business
climate underlined weakness in the German economy and kept
expectations high for cuts in euro zone interest rates
The Munich based Ifo economic research institute said that
its business climate index declined to 85 8 in November from
90 2 in October hitting its lowest since February 1993 The
reading was weaker than forecasts a 88 7 reading
Analysts said that the figure reminded the market that the
euro zone is in a recession and kept expectations intact that
the European Central Bank will have to keep cutting interest
rates
The reading was truly awful and suggests that the fall in
output in the euro zone s largest economy gained both momentum
and traction in the fourth quarter said Tom Vosa head of
market economics at nabCapital in London
The sharp slowdown seen in Germany and elsewhere will put
pressure on the ECB to cut rates aggressively he said adding
that the ECB may cut rates by 75 or even 100 basis points from
3 25 percent next month
Against the yen the euro hit a session low of 119 58 yen
before recovering to around 120 77 yen little changed on the
day
An early climb in European shares which cheered the Citi
news by rising 3 8 percent helped to provide a boost to the
euro but investors remained extremely wary about taking on
risk
AUSSIE KIWI SLIDE
The dollar fell 0 6 percent to 95 24 yen as investors
continued to flock to the low yielding Japanese currency after
shedding positions in higher yielding ones in an ongoing
reversal of the carry trade
Some in the market said that the dollar yen losses were
limited by news that U S President Elect Barack Obama will
nominate New York Federal Reserve Bank President Timothy
Geithner and former Treasury Secretary Lawrence Summers as his
top economic lieutenants
Once lauded for their high yields the Australian and New
Zealand dollars continued to suffer on Monday having dropped in
tandem with falling shares due to investors unwillingness to
hold risk
The Aussie dollar fell 0 1 percent to 0 6296 and hovered in
range of a 5 1 2 year low near 0 6007 hit a month ago Against
the yen it tumbled nearly 1 percent to 60 04 yen
The New Zealand dollar fell half a percent to 0 5322
staying near a six year low of 0 5190 hit late last
week It fell 2 2 percent to 50 53 yen
Sterling was little changed at 1 4870 as market
participants awaited the UK government pre budget report due
later in the day
Additional reporting by Veronica Brown Editing by Toby
Chopra |
C | Futures Positive On Citi News | Current Futures Dow 20 50 S P 2 15 NASDAQ 4 00 European Trade One of the things that was responsible for dragging the global equity markets lower over the past few days a possible Citigroup bankruptcy has become possible reason to rally now that the government has announced plans to help avoid bankruptcy for the troubled institution The bank will receive a 20 billion cash infusion on top of another 25 billion already received In addition the government will guarantee 300 billion worth of bad debt On the subject of bailouts and cash injections a Bloomberg analysis shows the Fed is set to use more than 7 4 trillion from taxpayer s money in order to save the financial system The sum needed for the current bailout is by far the biggest since the great depression This means that every U S citizen contributed 24 000 to save the local bank or branch The same Bloomberg reports shows that only last week the Fed lent 1900 times the weekly average for the three years before the crisisIn the overnight session The Nikkei was closed for business while the Australian S P Asx gained 8 60 points 0 25 to 3 425 10 European markets opened in positive territory as the Dax gained 144 19 points 3 49 The U K Ftse rose 172 21 points 4 55 Crude oil is heading back towards the low of the current year Crude oil for December delivery declined 0 30 to 49 75 Gold fell during the Asian session in response to the strengthening dollar Bullion for immediate delivery fell 7 90 to 793 70 Previous 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 |
WMB | NFL notebook Redskins OT Williams to hold out | Washington Redskins offensive tackle Trent Williams NYSE WMB is not expected to report to training camp with the rest of the team this week NFL Network reported Monday
Williams missed mandatory minicamp in June and his absence is expected to extend well into training camp per the report
This could take awhile before Trent Williams is back in Washington if at all NFL Network s Mike Garafolo said on Training Camp Live It just really seems like an open ended thing right now
NFL Network s Ian Rapoport added that Williams motivations are two fold relating to concerns with the team s medical staff after a tumor scare earlier this offseason and also to his contract for which he wants at least an alteration
Dallas Cowboys running back Ezekiel Elliott has not ruled out a holdout during training camp as the sides explore the possibility of a new contract NFL Network reported
Rapoport said all options are on the table and the fourth year running back still has not yet firmly decided whether or not he is going to hold out
Elliott still has two years remaining on his rookie contract He will make 3 85 million in the upcoming season with an option in 2020 for 9 1 million
The NFL suspended Seattle Seahawks defensive tackle Jarran Reed six games without pay for violating the personal conduct policy
Reed was disciplined for an incident in Bellevue Wash on April 27 2017 according to multiple reports A woman filed a complaint of assault against Reed Prosecutors investigated and declined to press charges
NFL Network reported that Reed s appeal of the suspension was denied on Friday
New England Patriots receiver Julian Edelman has a finger injury and will be out about three weeks ESPN reported
Over the weekend Edelman had a brace on his left thumb while working at his youth camp and whether the thumb was broken wasn t clear The Patriots open training camp later this week in Foxborough Mass
New Detroit Lions defensive end Trey Flowers will start training camp on the shelf with a shoulder injury per multiple reports
Flowers who signed a five year 90 million contract in March had what was described as a minor shoulder procedure after the Super Bowl in February
Meanwhile defensive tackle Damon Harrison told NFL Network he ll report for training camp after sitting out offseason workouts in search of a new deal Detroit opens training camp on Thursday
The Atlanta Falcons lost defensive tackle Michael Bennett and safety J J Wilcox to serious injuries on the first day of training camp according to multiple reports from NFL Network
Bennett is out indefinitely with a broken ankle while Wilcox tore his ACL and will miss the 2019 season NFL Network reported Both players were competing for rotational roles on defense
DJ Durkin ousted as Maryland s football coach after the death of one of his players is working as a training camp assistant coach with the Falcons
Durkin was one of four camp only coaches announced by head coach Dan Quinn ESPN reported
The New York Jets signed former Houston Texans tight end Ryan Griffin to fill in for the recently suspended Chris Herndon
Earlier this month the NFL suspended Herndon for the first four games of the 2019 season for violating the league s substance abuse policy He pleaded guilty in January to a 2018 DWI charge
Meanwhile Jets safety Marcus Maye was placed on the PUP list as he continues to recover from shoulder and thumb injuries from last season
The Tennessee Titans placed defensive tackle Jurrell Casey tight end Jonnu Smith and kicker Ryan Succop on the PUP list
Casey and Smith are still recovering from late season knee injuries Casey reportedly had a sprained MCL while Smith tore his MCL and Succop missed all offseason work with an undisclosed issue The team also placed first rounder Jeffery Simmons who tore his ACL in February on the non football injury list
The Buffalo Bills placed running back Frank Gore on the NFI list and tight end Tyler Kroft on the PUP list
Gore s injury is unknown but not believed to be serious Kroft broke his foot on the first day of OTAs Both players joined the team in March via free agency
Green Bay Packers first round safety Darnell Savage was placed on the NFI list after having his wisdom teeth pulled ESPN reported
Jacksonville Jaguars undrafted rookie safety Zedrick Woods filed retirement papers with the NFL The Athletic reported
Woods is battling turf toe according to agent Ron Butler He had surprised teams by running the fastest 40 yard dash 4 29 at this year s NFL Scouting Combine
The Minnesota Vikings waived running back Roc Thomas and signed guard Tiano Pupungatoa
Thomas is suspended for the season s first three games after pleading guilty to a marijuana charge earlier this year
Field Level Media |
WMB | Giants sign first round QB Jones | The New York Giants agreed to terms Monday with their first round pick quarterback Daniel Jones multiple outlets reported
Based on his draft slot Jones deal will be worth more than 25 million over four years Like all first round picks his deal has a fifth year team option
Jones 22 was the No 6 overall pick after passing for 8 201 yards and 52 touchdowns in 36 games at Duke from 2016 18 He was the second quarterback off the board following No 1 overall pick Kyler Murray to the Arizona Cardinals
Jones is expected to be on the field when the Giants open training camp Thursday in East Rutherford N J Also present will be third round outside linebacker Oshane Ximines who signed his deal earlier Monday
Jones and Ximines signings leave only four unsigned draft picks San Francisco 49ers defensive end Nick Bosa No 2 overall New York Jets defensive tackle Quinnen Williams NYSE WMB No 3 Carolina Panthers defensive end Brian Burns No 16 and 49ers wideout Deebo Samuel No 36 overall
Field Level Media |
WMB | United States and Spain reach women s water polo final | GWANGJU SOUTH KOREA Reuters Holders the United States and former winners Spain romped into the women s water polo final at the World Aquatics Championships and qualified for the 2020 Olympics after emphatic wins over their respective rivals on Wednesday
A solid defense propelled the Americans who have won a record five titles to a 7 2 win over Australia before 2013 champions Spain overwhelmed Hungary 16 10 thanks to four goals each from Roser Tarrago and Judith Forca Ariza
The U S romped into a 3 0 lead in the first quarter and netted another three unanswered goals before the Australians who were stifled in the opening half finally got on the scoreboard midway through the third period
A Bronte Halligan goal reduced the arrears to 6 2 before Alys Williams NYSE WMB put the icing on the cake for the United States whose goalkeeper Ashleigh Johnson racked up 14 saves
Williams Stephania Haralabidis and the game s most valuable player Makenzie Fischer led the winners with two goals apiece
The other semi final produced an avalanche of goals with Tarrago scoring four of Spain s opening six to help her team to a 10 8 halftime lead
Ariza took over in the second half with three successive strikes amid a 6 1 run which put the game beyond Hungary s reach despite a fine individual performance by Dora Leimeter who also scored four goals
Australia will clash with Hungary in the bronze medal match before the U S take on Spain in the final on Friday |
WMB | Andy Murray to team up with brother Jamie for Citi Open doubles | Reuters Andy Murray hopes to step up his competitive return from hip surgery after confirming on Wednesday that he will play next week s Citi Open doubles event with his brother Jamie
The Washington DC tournament will be the younger Murray s fourth tournament since undergoing hip resurfacing surgery in January and his first on a hard court
The Scot lost in the second round of the men s doubles at Wimbledon with Pierre Hugues Herbert and in the third round of mixed doubles with Serena Williams NYSE WMB but said there was still a long way to go before a return to singles competition
The Murray bothers last played together at the 2016 Rio Olympics and were a prolific partnership when Britain won the Davis Cup in 2015
I m obviously very excited to be on the court with him Jamie and also to go back to Washington Andy said in a statement
It s a city I ve always enjoyed visiting so it should be fun I m hoping to have a good summer over in the States keep progressing physically and hopefully get back on the singles court soon
The doubles field at the Citi Open also includes the first time partnership of Greek Stefanos Tsitsipas ranked world number six in singles and Australian Nick Kyrgios |
WMB | Barrett back to fullback as Mo unga starts against Boks | By Greg Stutchbury
WELLINGTON Reuters Regular All Blacks flyhalf Beauden Barrett has been moved to fullback with Richie Mo unga getting only a third test start in the number 10 jersey for Saturday s clash with South Africa in the Rugby Championship
Mo unga has arguably been the form New Zealand flyhalf in Super Rugby over the last two seasons but Steve Hansen has resolutely stuck with twice World Player of the Year Barrett in tests citing the experience he has built up over seven seasons
The fleet footed Barrett twice started matches at fullback early in his international career but has played his last 36 tests with the number 10 on his back
Mo unga 25 will have the chance to impress coach Hansen from the start of the match against New Zealand s fiercest test rivals in a showdown that looks likely to determine the outcome of the truncated southern hemisphere championship
It also gives Hansen the opportunity to continue the dual playmaker experiment he used last year when Damian McKenzie who has been ruled out of the World Cup by a knee injury played at fullback and Barrett at flyhalf
While Hansen has downplayed the importance of the game as a prequel to the Rugby World Cup opener against the Springboks in Yokohama on Sept 21 the fact he has named virtually his strongest pack shows he is still mindful of its significance
He left several players from the Super Rugby champion Canterbury Crusaders in New Zealand last week to prepare for the clash at Wellington Regional Stadium
The entire front row of Joe Moody Codie Taylor and Owen Franks as well as lock Sam Whitelock and number eight Kieran Read have been brought back for Saturday s match
Lock Brodie Retallick is the only forward in the pack who also started last week s 20 16 victory over Argentina in Buenos Aires
Openside flanker Matt Todd has been preferred over last week s captain Sam Cane and local favorite Ardie Savea who played number eight in Buenos Aires
Shannon Frizzel has been given his opportunity to try and cement the blindside flanker spot after Vaea Fifita failed to impose himself last week against the Pumas
Fifita has been named on the bench ostensibly to cover lock with no specialist named in the matchday 23 while loose forward Dalton Papalii is also among the replacements
The match could also be make or break for inside center Sonny Bill Williams NYSE WMB who links up with Jack Goodhue in the midfield after he recovered from a hamstring injury that kept him out of last week s match in Argentina
Williams 33 has had an injury plagued three years since he tore his Achilles tendon at the 2016 Rio Olympics and is in a tight battle for a place in the midfield with five players battling for what looks like being four spots
The key for us this week has been to continue building on the very good groundwork we ve put in over the last couple of weeks Hansen said
Whilst we were a little rusty last week we re looking forward to seeing improvements in all areas of our game this week
It s always an exciting occasion when we play the Springboks We have a lot of respect for them and love playing them as they bring many challenges to the contest
New Zealand 15 Beauden Barrett 14 Ben Smith 13 Jack Goodhue 12 Sonny Bill Williams 11 Rieko Ioane 10 Richie Mo unga 9 TJ Perenara 8 Kieran Read captain 7 Matt Todd 6 Shannon Frizell 5 Sam Whitelock 4 Brodie Retallick 3 Owen Franks 2 Codie Taylor 1 Joe Moody
Replacements 16 Dane Coles 17 Ofa Tuungafasi 18 Angus Ta avao 19 Vaea Fifita 20 Dalton Papalii 21 Aaron Smith 22 Anton Lienert Brown 23 George Bridge |
WMB | Rapper Meek Mill celebrity advocate for justice reform granted new trial | By Alex Dobuzinskis Reuters Meek Mill a rap artist from Philadelphia who has become an advocate for reform of the U S criminal justice system is entitled to a new trial on drugs and weapon charges that have kept him on probation for a decade a Pennsylvania appeals court ruled on Wednesday A three judge Pennsylvania Superior Court panel agreed that Philadelphia Judge Genece Brinkley who presided over a 2008 trial that resulted in his conviction was no longer impartial as Meek Mill s attorneys have argued It ordered a replacement for Brinkley in the case After the sentence Meek Mill an African American whose given name is Robert Rihmeek Williams NYSE WMB became a cause c l bre for musicians celebrities and criminal justice reform campaigners who said his case was typical of a U S legal system that treats minorities unjustly The sole witness against Meek Mill at his 2008 trial was a discredited Philadelphia narcotics squad officer who is no longer with the city s police force Williams right to be tried before an impartial judge is necessary in this case because the trial judge heard highly prejudicial testimony at the first trial which was a bench trial and made credibility determinations in favor of a now discredited witness and against Williams President Judge Jack A Panella wrote in an 18 page opinion In November 2017 Brinkley sentenced the rapper to up to four years in prison saying a pair of arrests violated probation conditions she set following his 2008 convictions He served five months before the state s top court granted him bail Neither of the arrests including one that according to local media stemmed from a dirt bike stunt in New York resulted in convictions The past 11 years have been mentally and emotionally challenging but I m glad that justice prevailed and my clean record has been restored Mill said on Twitter The Philadelphia District Attorney s Office said in a statement it welcomed the appeals court decision and was reviewing its options regarding a new trial Chuck Peruto an attorney for Judge Brinkley said it was unusual for the district attorney to agree that a defendant deserves a new trial Brinkley stands by her handling of the case Basically she s a tough judge and any defendant would want a judge other than Brinkley to hear their case Peruto said by phone
Mill s song Going Bad on which he collaborated with Drake hit No 6 on the U S charts this year His other hit songs include All Eyes on You and Dangerous |
WMB | NFL notebook Chargers RB Gordon begins camp holdout | Los Angeles Chargers running back Melvin Gordon didn t report to training camp on Wednesday beginning his holdout as he looks to land a new contract
The Chargers responded by placing Gordon on the Reserve Did Not Report list The team s first official practice is Thursday at Costa Mesa Calif Los Angeles general manager Tom Telesco said Gordon was offered a new contract but that the team is ready to move forward behind the trio of reserves
The Chargers placed left tackle Russell Okung on the non football injury list and linebacker Jatavis Brown ankle on the physically unable to perform list
Telesco said Okung endured a serious medical issue in June and is still recovering He said the 30 year old might miss all of training camp and possibly some regular season games
Washington Redskins coach Jay Gruden said he expects Trent Williams NYSE WMB to show up soon after the offensive tackle did not report for the start of training camp
NFL Network reported Monday that Williams is unhappy with the medical staff after a tumor scare earlier this offseason and would also like at least an alteration to his contract
The Green Bay Packers released Pro Bowl defensive tackle Mike Daniels a day before the first training camp practice
Daniels was due to make 8 5 million including bonuses in the final season of his four year 41 million contract extension signed in 2015
An emotional Taylor Lewan of the Tennessee Titans posted a video to social media to share that he s facing a four game suspension for testing positive for a banned substance
Lewan the NFL s highest paid offensive tackle maintained he never took a prohibited supplement and went so far to say that he took a polygraph test to help corroborate his defense
Cleveland Browns running back Duke Johnson plans to report to training camp but his stance on a potential trade remains
Johnson wants out of Cleveland but he s found little sympathy around the Browns after sitting out offseason workouts
The Browns said they don t expect running back Kareem Hunt to face any league imposed discipline linked to a video that TMZ posted earlier this month
TMZ shared the video that showed Hunt and a police officer speaking after Hunt and a friend allegedly had a slight altercation at a Cleveland bar The bar s owner characterized the incident as roughhousing at the time according to a report No police report was filed and Hunt was not arrested
The Tampa Bay Buccaneers placed defensive end Jason Pierre Paul on the active non football injury list
Pierre Paul continues to recover from a neck injury sustained in a car accident in May He will not participate in training camp and likely will be moved to the reserve NFI list before the regular season which would rule him out for at least the first six games
Coach Ron Rivera said Carolina Panthers quarterback Cam Newton who was slowly worked back into throwing activities in the offseason coming off of shoulder surgery will be placed on a strict pitch count during training camp
In January Newton underwent the second surgery on his throwing shoulder in two years He was limited down the stretch to end the 2018 season and sat out the final two games
The New Orleans Saints agreed to sign former first round defensive lineman Ziggy Hood NFL Network reported The former first rounder played for both Washington and Miami in 2018
Free agent running back Jay Ajayi was fully cleared by Dr James Andrews in his recovery from a torn ACL in his right knee ESPN reported
The 26 year old was hurt in October in the Philadelphia Eagles loss to the Minnesota Vikings ending his season after four games
The Seattle Seahawks signed defensive tackle Earl Mitchell providing depth at the position after a six game suspension for Jarran Reed was announced on Monday
Also boosting the defensive line end Ezekiel Ansah avoided the physically unable to perform list meaning he is cleared for training camp after sitting out the entire offseason program during his recovery from shoulder surgery
The New England Patriots and tight end Lance Kendricks agreed to a one year contract
The Patriots are looking for depth at the position since the retirement of Rob Gronkowski They signed veteran Benjamin Watson but he must serve a four game NFL suspension to start the season
The Arizona Cardinals signed former Los Angeles Rams linebacker defensive end Matt Longacre to a one year deal
The Houston Texans signed former Jacksonville Jaguars punter Bryan Anger to a one year 1 million contract
The Minnesota Vikings claimed running back De Angelo Henderson off waivers one day after the three year veteran was waived by the Jets The Vikings also worked out 11 year veteran cornerback Orlando Scandrick who played his first 10 seasons with the Dallas Cowboys
Baltimore Ravens safety Earl Thomas told ESPN that he doesn t regret displaying his middle finger during a game last season confirming the gesture was directed at his then coach with the Seahawks Pete Carroll
Field Level Media |
WMB | Report First rounders Bosa Williams sign deals | The San Francisco 49ers and No 2 overall pick Nick Bosa agreed Thursday to a four year deal worth 33 55 million multiple outlets reported
Bosa received a 22 4 million signing bonus according to spotrac com
The New York Jets also came to terms with defensive tackle Quinnen Williams NYSE WMB No 3 overall and the 49ers agreed to terms with second round wide receiver Deebo Samuel according to NFL Network
They were the only remaining unsigned players from the 2019 NFL Draft class at the start of the day with Samuel being the final one to sign
Bosa 21 notched 17 1 2 sacks and 29 tackles for loss in 29 games with the Buckeyes
Williams 21 tallied 10 sacks and 26 tackles for loss in two seasons at Alabama
Williams will receive 75 percent of his signing bonus now with the other 25 percent deferred to next year according to the NFL Network s Ian Rapoport
Samuel 23 caught 62 passes for 882 yards and 11 touchdowns last season at South Carolina
Field Level Medi OLUSSPORT Reuters US Online Report Sports News 20190725T202647 0000 |
BMY | Bull Of The Day Bristol Myers Squibb BMY | In the current uncertain market environment big pharma stocks are worth considering given their defensive nature attractive dividend yields and solid growth opportunities Bristol Myers reported excellent results sending estimates higher and the stock to a Zacks Rank 1 Strong Buy About the Company
Headquartered in New York Bristol Myers Squibb Company NYSE BMY is a global specialty biopharmaceutical company focused on discovering developing and delivering innovative medicines for serious diseases Their treatments help people fight against diseases such as cancer cardiovascular disease hepatitis B and hepatitis C HIV AIDS and rheumatoid arthritis Strong Q1 Results Upgraded Guidance
The company reported strong results for Q1 beating on top and bottom lines and also raised their guidance for the year Operating earnings excluding special items of 0 74 per share easily beat the Zacks Consensus Estimate of 0 66 Earnings were also up 4 from the same quarter last year
Total revenues of 4 4 billion also beat the Zacks Consensus Estimate of 4 2 billion Revenues increased 9 year over year thanks mainly to strong product sales
The management raised its earnings guidance for 2016 They now expect earnings in the range of 2 50 to 2 60 per share up from the previous guidance of 2 30 to 2 40 per share
Analysts have been raising their estimates for the stock Zacks Consensus Estimates for the current and next year have surged to 2 60 and 3 33 per share from 2 40 and 3 10 before the results
The company beat the Zacks Estimates in all of last four quarters with an average quarterly surprise of 28 In fact looking at the longer term performance it has delivered a beat consistently in every quarter since 2013
Leader in Immuno Oncology
The company is a leader in cancer care focused on Immuno Oncology which is now a major treatment choice alongside surgery radiation chemotherapy and targeted therapies for certain types of cancer This approach aims to harness the body s natural immune response to fight cancer
Bristol Myers has a comprehensive clinical portfolio of investigational and approved Immuno Oncology agents many of which were discovered and developed by their scientists They collaborate with academia biotech companies to research the potential of Immuno Oncology and non Immuno Oncology combinations
The Bottom Line
After a period of weakness in 2013 201 the company has rebounded nicely and continues to grow its revenues and earnings consistently now With solid growth potential and a decent dividend yield the stock is worth a look In addition to a top Zacks Rank the stock also benefits from the Zacks Industry Rank of 24 out of 265 top 9
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BMY | Bristol Myers Buys Cormorant Focus On Immuno Oncology | Bristol Myers Squibb Company NYSE BMY announced that it has acquired all of the outstanding capital stock of Cormorant Pharmaceuticals a privately held Stockholm Sweden based pharmaceutical company focused on the development of treatments targeting cancer and rare diseases
Bristol Myers has agreed to make upfront and near term milestone payments of up to 95 million and an additional consideration of up to 425 million depending on the achievement of certain development and regulatory milestones
With this acquisition Bristol Myers has gained full access to Cormorant s HuMax IL8 antibody program and to its lead candidate HuMax IL8 The candidate is a phase I II monoclonal antibody targeted against interleukin 8 IL 8 and has the potential to enhance immune response along with increasing the efficacy of existing cancer medicines through a combination therapy
We note that Cormorant had gained the rights to HuMax IL8 from Genmab A S under an exclusive license agreement in 2012 Genmab had acquired the candidate via an asset exchange agreement with Medarex in 2007 Medarex was acquired by Bristol Myers for 2 4 billion in 2009
We believe that the Cormorant acquisition is in line with Bristol Myers strategy of boosting and strengthening its immuno oncology pipeline It will enable the company to expedite the development and help bring to market transformational immunotherapies The company s immuno oncology portfolio currently consists of immunotherapies like Yervoy Opdivo and Empliciti
Bristol Myers is collaborating with several companies for the evaluation of Opdivo in combination with other cancer regimens Last week the company announced an exclusive clinical collaboration agreement with PsiOxus Therapeutics for the evaluation of the latter s enadenotucirev in combination with Opdivo for the treatment of a range of tumor types in late stage cancer patients
Meanwhile Bristol Myers has been active on the acquisition front Notably the Cormorant acquisition is Bristol Myers second in as many months and it is not just immuno oncology that is in focus In a bid to strengthen and accelerate the development of its immunoscience pipeline Bristol Myers acquired privately held biotech company Padlock Therapeutics in Apr 2016
We expect to see the company continuing to pursue acquisitions deals over the coming quarters across a range of therapeutic areas
Bristol Myers is a Zacks Rank 2 Buy stock A couple of better ranked stocks in the health care sector are Innoviva Inc NASDAQ INVA and Pfizer Inc NYSE PFE While Innoviva sports a Zacks Rank 1 Strong Buy Pfizer carries the same rank as Bristol Myers |
BMY | Bayer Expands Drug Discovery Collaboration With X Chem | Bayer AG DE BAYGN OTC BAYRY announced that it has entered into an expanded global drug discovery deal with privately held biotechnology company X Chem Inc across multiple therapeutic areas and target classes The collaboration focuses on the discovery of innovative lead structures for complex drug targets in areas of high unmet medical need
The latest agreement will extend Bayer s access to X Chem s DEX technology which is based on DNA encoded libraries of small molecules with more than 120 billion molecules
Per the terms of the new agreement X Chem will receive up front payment research and development funding in addition to potential pre clinical clinical and regulatory milestone payments worth up to 528 million In addition X Chem is eligible to receive royalties and sales milestones for each successfully commercialized drug that results from collaboration program Moreover Bayer will have an exclusive option to license programs generated through the collaboration BAYER A G ADR Price We note that the companies have been partners under a research collaboration since 2012 Bayer has already licensed two programs for multiple series of small molecules from X Chem that address complex target structures such as protein protein interactions
We are positive on the latest expansion of the existing deal The new multi year collaboration agreement is expected to significantly expand the scope and duration of the partnership
Bayer is currently a Zacks Rank 3 Hold stock Some better ranked stocks in the health care sector include Merrimack Pharmaceuticals Inc NASDAQ MACK Fibrocell Science Inc NASDAQ FCSC and Bristol Myers Squibb Co NYSE BMY While Merrimack and Fibrocell sport a Zacks Rank 1 Strong Buy Bristol Myers carries a Zacks Rank 2 Buy |
WMB | EUR USD Euro Remains Subdued As German CPI Matches Forecast | EUR USD is almost unchanged in the Thursday session Currently the pair is trading at 1 1276 up 0 02 on the day On the release front German Final CPI remained steady with a gain of 0 4 This matched the forecast The U S will release producer price index reports PPI is expected to rise to 0 3 and Core PPI is forecast to improve to 0 2 Unemployment claims are projected to rise to 210 thousand
The ECB is expected to hold interest rate levels and will release a policy statement The U S releases key inflation data CPI is expected to improve to 0 3 and Core CPI is projected to climb to 0 2 As well the FOMC releases the minutes of the March policy meeting On Thursday the focus will be on inflation Germany posts CPI and the U S releases PPI On Friday the eurozone releases industrial production while the U S posts UoM consumer sentiment and the semi annual Treasury currency report
There were no surprises from the ECB policy meeting and the euro responded with limited movement The bank held the minimum bid rate at 0 00 where it has been pegged since 2016 Investors were more interested in Mario Draghi s comments after the rate decision Draghi acknowledged that eurozone economic data remains weak particularly in the manufacturing sector The economic outlook remains weak with Draghi saying that slower growth momentum is expected to extend into the current year At the same time Draghi said that the likelihood of a recession remains low On the inflation front Draghi stated that interest rates will remain at current levels at least until the end of 2019 and possibly later
The Federal Reserve was also in focus on Wednesday with the release of the minutes from the March meeting The Fed left the door open to rate hikes in 2019 provided that economic conditions improved Some members said that they expected the economy to improve while others said that rate movement could shift in either direction based on incoming data and other developments
EUR USD Fundamentals
Thursday April 11
2 00 German Final CPI Estimate 0 4 Actual 0 4
2 45 French Final CPI Estimate 0 8 Actual 0 8
8 30 U S PPI Estimate 0 3
8 30 US Core PPI Estimate 0 2
8 30 US Unemployment Claims Estimate 210K
9 30 US FOMC Member Clarida Speaks
9 35 US FOMC Member Williams NYSE WMB Speaks
9 40 US FOMC Member Bullard Speaks
10 30 US Natural Gas Storage Estimate 32B
13 01 US 30 year Bond Auction
16 00 US FOMC Member Bowman Speaks
Friday April 12
5 00 Eurozone Industrial Production Estimate 0 5
10 00 US UoM Consumer Sentiment Estimate 98 1
Tentative US Treasury Currency Report
All release times are DST
Key events are in bold
EUR USD for Thursday April 11 2019
EUR USD for April 11 at 6 25 DST
Open 1 1274 High 1 1288 Low 1 1273 Close 1 1276
EUR USD Technical
EUR USD was flat in the Asian session and has ticked higher in European trade
1 1212 is providing support
1 1300 remains a weak resistance line
Current range 1 1212 to 1 1300
Further levels in both directions
Below 1 1212 1 1120 1 1046 and 1 0951
Above 1 1300 1 1434 and 1 1553
Original post |
WMB | Is Williams WMB Jackalope Deal With Crestwood A Win Win | Williams Companies NYSE WMB recently announced the divestment of a 50 stake in Jackalope Gas Gathering Services in the Powder River Basin region to Crestwood Equity Partners LP NYSE CEQP for 485 million Crestwood which already owned 50 interest in Jackalope system now attains full control over the assets for a reasonable price Notably prior to the deal Williams was the operator of Jackalope assets while Crestwood was responsible for commercial services The deal which is well in sync with the business plans of both Crestwood and Williams enhances the sustainability of high yield payouts of the firms The Deal Shores Up Williams FinancialsWilliams had been contemplating to offload Jackalope assets since last November and has finally sold the business to its joint venture partner The company plans to use the proceeds from the deal to trim its heavy debt load which was 22 billion at the end of 2018 representing a debt to capital ratio of 60 5 Further by jettisoning these assets the company will save around 90 million that it has planned to invest in this business As Jackalope was not a significant asset in Williams portfolio the divestment of these assets will not just help in strengthening its balance sheet but also aid in portfolio optimization and investment in high return expansion projects The deal follows another smart move by the company last month to form a joint venture with the Canada Pension Plan Investment Board CPPIB in a bid to optimize midstream operations in Marcellus and Utica regions Williams will also utilize the cash proceeds from CPPIB for debt reduction The Deal Boosts Crestwood s Position in Powder River BasinWhile Jackalope was not a core asset for Williams it is one of the most significant growth drivers for Crestwood By acquiring the remaining 50 stake in the assets the partnership positions itself to become one of the leading midstream players in the Powder River Basin The partnership expects the Jackalope system to generate 100 million of cash flows in 2019 which would increase to 150 million by 2021 Crestwood s long term contracts with Chesapeake Energy NYSE CHK and other producers will support growth As the partnership has now secured full ownership of the Jackalope business it is looking to pursue additional opportunities for instance adding third party customers in a bid to enhance long term prospects in the region Post the deal Crestwood projects 2019 net income in the band of 125 155 million and adjusted EBITDA within 500 530 million Zacks Rank and Key PickWhile Williams currently carries a Zacks Rank 3 Hold investors interested in the same can consider TransCanada Corporation TO TRP which holds a Zacks Rank 2 Buy You can see TransCanada managed to surpass earnings estimates in each of the trailing four quarters with average of 18 98 Breakout Biotech Stocks with Triple Digit Profit Potential The biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
WMB | Why Is Williams Sonoma WSM Down 3 2 Since Last Earnings Report | It has been about a month since the last earnings report for Williams Sonoma WSM Shares have lost about 3 2 in that time frame underperforming the S P 500
Will the recent negative trend continue leading up to its next earnings release or is Williams Sonoma due for a breakout Before we dive into how investors and analysts have reacted as of late let s take a quick look at its most recent earnings report in order to get a better handle on the important catalysts Williams Sonoma s WSM Q4 Earnings Revenues Beat EstimateWilliams Sonoma Inc s earnings and revenues beat the Zacks Consensus Estimate by 6 6 and 2 2 respectively in the fourth quarter fiscal 2018 Non GAAP earnings of 2 10 per share at the high end of the guided range surpassed the Zacks Consensus Estimate of 1 97 The figure grew 25 year over year Revenues of 1 836 4 million beat the consensus mark of 1 797 4 million and grew 9 3 year over year Comps increased 2 4 in the fourth quarter compared with 5 4 in the year ago quarter The company s West Elm brand s comps grew 11 1 compared with 12 3 growth in the prior year quarter Also the company s Williams NYSE WMB Sonoma brand s comps grew 0 1 from 4 3 registered in the prior year quarter Pottery Barn Kids and Teen s comps grew 1 6 compared with 1 4 growth in the year ago quarter However Pottery Barn s comps were down 0 4 against 4 1 growth in the year ago quarter Segment DetailsE Commerce 54 6 of fiscal fourth quarter revenues segment reported net revenues of 1 002 2 million in the quarter up 14 3 year over year Retail 45 4 segment s net revenues inched up 3 9 to 834 2 million Operating HighlightsNon GAAP gross margin was 38 7 up 20 basis points bps from fourth quarter fiscal 2017 The upside can be attributed to occupancy leverage partially offset by lower selling margins Non GAAP selling general and administrative SG A expenses were 26 9 of net revenues compared with 26 1 in the year ago quarter reflecting an increase of 80 bps due to new revenue recognition standards which were partially offset by advertising leverage Non GAAP operating margin was 11 9 in the quarter down 50 bps year over year Merchandise inventories increased 6 to 1 1 billion FinancialsWilliams Sonoma reported cash and cash equivalents of 339 million as on Feb 3 2019 compared with 390 1 million as on Jan 28 2018 During the fiscal fourth quarter the company increased its existing stock repurchase program by 500 million Presently it has 210 million remaining under its present stock repurchase program Dividend HikeThe company announced an 11 6 increase in its quarterly cash dividend to 48 cents per share The quarterly dividend is payable on May 31 2019 to stockholders of record as of the close of business on Apr 26 2019 Fiscal 2018 HighlightsThe company s earnings came in at 4 46 per share on a non GAAP basis reflecting an increase of 23 5 from fiscal 2017 profit level Net revenues were 5 67 billion up 7 2 from the year ago level On a non GAAP basis net revenues grew 7 1 Comps grew 50 bps over last year to 3 7 with positive comps growth in all brands including 150 bp growth in the Pottery Barn brands Fiscal 2019 GuidanceWilliams Sonoma expects non GAAP earnings per share in the band of 4 50 4 70 Notably fiscal year 2019 includes 52 weeks compared with a 53 week fiscal 2018 Net revenues are projected in the range of 5 670 5 840 billion Comps are likely to grow 2 5 Non GAAP operating margin is expected to be in line with fiscal 2018 levels The company expects full year comps to be back half weighted given difficult comparison in the first half Additionally revenues in the first quarter may also be impacted by an Easter shift The company expects an incremental buyback of shares under a repurchase authorization of approximately 710 million It expects to close 30 stores in the year bringing down the total store count to 595 by the end of the year Operational ChangesEffective fiscal year 2019 the company is implementing a new lease accounting standard which requires all leases with terms greater than 12 months to be capitalized on the balance sheet This will result in a net increase of approximately 1 2 billion to Williams Sonoma s asset and liabilities upon adoption of the standard in the first quarter fiscal year 2019 However there will be no material impact on the income statement Secondly owing to the rapid convergence of its retail and e commerce businesses and the synergies that exists between the two Williams Sonoma will no longer be reporting its financial results into separate segments Hence beginning fiscal 2019 the company will be consolidating its financial results into one reportable segment and will continue to provide quarterly comps and annual revenues by brand Lastly the company is implementing a change in its guidance practice beginning fiscal 2019 Instead of providing it quarterly it will show annual guidance along with a long term financial outlook
How Have Estimates Been Moving Since Then
In the past month investors have witnessed a downward trend in fresh estimates
VGM Scores
Currently Williams Sonoma has a great Growth Score of A though it is lagging a lot on the Momentum Score front with a C However the stock was allocated a grade of A on the value side putting it in the top 20 for this investment strategy
Overall the stock has an aggregate VGM Score of A If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions indicates a downward shift Notably Williams Sonoma has a Zacks Rank 2 Buy We expect an above average return from the stock in the next few months |
WMB | Oil Waivers And What s Next | U S Secretary Mike Pompeo said the U S will not issue any exception to Iranian oil importers in a tweet Monday The global oil market remains well supplied We re confident it will remain stable as jurisdictions transition away from Iranian crude The waivers were set to end May 2
The U S had granted 180 day waivers to eight countries allowing them to buy Iranian crude despite sanctions put in place in November with the stipulation that the countries move toward reducing those purchases and eventually stopping imports see list below
Greece already reduced Iran imports to zero
Italy reduced to zero
Taiwan reduced to zero
China
India
Turkey
Japan
South Korea
China India Turkey Japan and South Korea haven t stopped importing Iranian oil according to the Washington Post
Why Aren t Waivers Being Renewed
Industry participants thought a complete cutoff of waivers was unlikely since the Trump administration clearly prefers oil prices that aren t too high said Michael Lynch president of Strategic Energy Economic Research
President Donald Trump made an attempt to calm the oil market which saw prices rally Monday setting them up to settle at their highest since late October May West Texas Intermediate crude CLK9 2 59 rose 1 78 or 2 8 to 65 78 a barrel on its expiration day June Brent LCOM9 3 03 traded at 74 24 a barrel up 2 27 or 3 2 in Monday dealings
What does the end of Iranian oil waivers mean
The decision to end the waivers basically ends the OPEC production cuts agreement said Edward Moya senior market analyst at Oanda The lack of waivers will require other OPEC members to make up for the lost oil and that will make it difficult to have all members agree upon a new strategy
Members of the Organization of the Petroleum Exporting Countries and nonmembers had implemented a plan in January to cut production by a total of 1 2 million barrels from October levels through June of this year The producers plan to hold their next official meetings on June 25 26 just ahead of the plan s expiration
What Happens Next
Iran has reportedly threatened to close the Strait of Hormuz in retaliation for sanctions The U S is committed to not let that happen so a closure is unlikely Oanda s Moya said The Energy Information Administration considers it to be the world s most important oil transit chokepoint as it accounts for around 30 of all seaborne traded crude oil and other liquids
James Williams NYSE WMB energy economist at WTRG Economics expressed doubt that Iranian oil imports would fall to zero Expect more saber rattling from Iran The threat to close the Strait of Hormuz is vacuous but I anticipate they will hold naval exercises near the strait as they have in the past It helps support the price and they get more revenue for whatever oil they do export
Moya told MarketWatch While the U S wants to see Iran exports fall to zero they won t If that were to happen we would see a military escalation in the Persian Gulf referring to the threat of a Strait of Hormuz closure
Original Post |
WMB | Nearly 102 Million Americans Have No Job Worse Than At Any Point | Wouldn t it be horrible if the number of Americans without a job was higher today than it was during the Great Recession of 2008 and 2009 Well that is actually true As you will see below nearly 102 million Americans do not have a job right now and at no point during the last recession did that number ever surpass the 100 million mark Of course the U S population has grown a bit over the last decade but as you will see below the percentage of the population that is engaged in the labor force is only slightly above the depressingly low levels from the last recession Sadly the truth is that the rosy employment statistics that you are getting from the mainstream media are manufactured using smoke and mirrors and by the time you are done reading this article you will understand what is really going on
Before we dig into the long term trends let s talk about what we just learned
According to CNBC initial claims for unemployment benefits just rose by the most that we have seen in 19 months
Initial claims for state unemployment benefits jumped 37 000 to a seasonally adjusted 230 000 for the week ended April 20 the Labor Department said on Thursday The increase was the largest since early September 2017
And considering all of the other troubling economic signs that we have been witnessing lately this makes perfect sense
In addition we need to remember that over the last decade lawmakers across the country have made it more difficult to apply for unemployment benefits and have reduced the amount of time that unemployed workers can receive them In reality the unemployment situation in this nation is far worse than the mainstream media is telling us
When a working age American does not have a job the federal number crunchers put them into one of two different categories Either they are categorized as unemployed or they are categorized as not in the labor force
But you have to add both of those categories together to get the total number of Americans that are not working
Over the last decade the number of Americans that are in the unemployed category has been steadily going down but the number of Americans not in the labor force has been rapidly going up
In both cases we are talking about Americans that do not have a job It is just a matter of how the federal government chooses to categorize those individuals
At this moment we are told that only 6 2 million Americans are officially unemployed and that sounds really really good
But that is only half the story
What the mainstream media rarely mentions is the fact that the number of Americans categorized as not in the labor force has absolutely exploded since the last recession Right now that number is sitting at 95 577 million
When you add 6 2 million officially unemployed Americans to 95 577 million Americans that are categorized as not in the labor force you get a grand total of almost 102 million Americans that do not have a job right now
If that sounds terrible to you that is because it is terrible
Yes the U S population has been growing over the last decade and that is part of the reason why the number of Americans not in the labor force has been growing
But overall the truth is that the level of unemployment in this country is not that much different than it was during the last recession
John Williams NYSE WMB of shadowstats com tracks what the real employment figure would be if honest numbers were being used and according to him the real rate of unemployment in the United States at the moment is 21 2 percent
That is down from where it was a few years ago but not by that much
Another honest indicator that I like to look at is the civilian labor force participation rate
In essence it tells us what percentage of the working age population is actually engaged in the labor force
Just before the last recession the civilian labor force participation rate was sitting at about 66 percent and that was pretty good
But then the recession hit and the civilian labor force participation rate fell below 63 percent and it stayed between 62 percent and 63 percent for an extended period of time
So where are we today
At this moment we are sitting at just 63 0 percent
Does that look like a recovery to you
Of course not
If you would like to claim that we have had a very marginal employment recovery since the last recession that is a legitimate argument to make But anything beyond that is simply not being honest
And now the U S economy is rapidly slowing down again and most Americans are completely and totally unprepared for what is ahead
The good news is that employment levels have been fairly stable in recent years but the bad news is that unemployment claims are starting to shoot up again
A number of the experts that I am hearing from expect job losses to escalate in the months ahead Many of those that are currently living on the edge financially suddenly won t be able to pay their mortgages or their bills
Just like the last recession we could potentially see millions of middle class Americans quickly lose everything once economic conditions start getting really bad
The economy is not going to get any better than it is right now As you look forward to the second half of 2019 I would make plans for rough sailing ahead |
C | Asian Shares Follow The Negative Momentum And Trade Lower | Asian trade Shares in Asia are trading under the break even line as prospects increase for a deeper recession The U S market followed the same path closing under the breakeven line The Asian major indexes declined closed to 50 this year as the credit crunch problems seem to have no solution In today s market companies that base their profit on exports especially from the U S market where under the spotlight posting the biggest declines So far today the Nikkei fell 82 17 points 0 96 to 8 440 41 snapping a two day rally In Australia the S P Asx fell 63 40 points 1 74 to 3 589 00 trading again near a four year old bottom The sell off was triggered by the announcement Citigroup made and the very poor Empire State Manufacturing Index Yesterday Citigroup announced it would double the number of job cuts to 50K in the following year in order to reach profitability or better say to stay above the infamous Chapter 11 The number was higher compared to one month earlier when 25K jobs where initially announced to be eliminated Also yesterday the New York s Fed index of the Manufacturing sector showed the lowest read since 2001 when the index first began The report printed a 25 4 read having the zero benchmark delimiting growth from contraction Crude oil post small gains after it dipped again in the last session Crude oil for December delivery gained 0 32 0 58 to 55 27 Gold declined because of the late dollar surge Bullion for immediate delivery fell 4 80 0 65 to 737 20 Previous Wall Street trade Equity markets moved between gains and losses during Monday buy collapsed towards the end to finish at their worst levels of the session as concerns that the economy would slow more than previously expected dampened sentiment It looks like another brief rally is getting sold and that the lows from Oct 10 could be tested again said Matthew Carniol chief currency strategist at TheLFB forex com There s just no confidence now because traders are wary of getting caught holding long positions The economy is going to slow further going forward and profits could fall 50 just as they did during the 2001 downturn As cheap as stocks are now they re likely to get a lot cheaper well before any sustained rally begins Previous European trade European stocks fell extending the worst retreat in equities in more than two decades after Japan unexpectedly slid into a recession and Britain s biggest business lobby said the U K slump may be deeper than predicted |
C | Global Equity Markets Continue to Trade Under Pressure | Current Futures Dow 119 00 S P 14 90 NASDAQ 22 00 European Trade Global markets are again trading below the breakeven line as concerns about a world recession continues to affect investor s confidence Asian markets closed the session lower while the European markets plunged shortly after the open after opening Tuesday s session in positive territory The U S futures traded slightly below the break even line until the European session opened when the futures market also plunged much lower The Nikkei fell 194 17 points 2 28 to 8 328 41 snapping a two day rally In Australia the S P Asx fell 129 80 points 3 55 to 3 523 20 trading near a four year low once again European shares are now posting strong declines despite showing some strength initially The Ftse fell 68 47 points 1 66 to 4 063 69 while the German Dax tumbled 67 39 points 1 48 to 4 489 88 The major markets in both Europe and Asian have declined nearly 50 this year as the credit crunch takes its toll on virtually every company The credit crunch has its fingerprints all over the financial world Sources say more than 150K jobs have been lost in the financial industry in the U S since the credit crunch began and chances are this number will get much larger In Europe the London real estate business has been shelled by the credit crunch In addition to the ongoing declines in the housing markets London s West End where the biggest concentration of European hedge funds is located is posting record declines Hedge funds have seen the longest losing streak since the 1990s this year and at the same time record requests for withdrawals Crude oil posted small gains as some analysts suggest the Indian and Chinese economies will rebound next year Crude oil for December delivery gained 0 16 0 29 to 55 11 Gold headed lower during the overnight session Bullion for immediate delivery fell 2 40 0 32 to 739 60 Previous Asian trade Shares in Asia are trading under the break even line as prospects increase for a deeper recession The U S market followed the same path closing under the breakeven line The Asian major indexes declined closed to 50 this year as the credit crunch problems seem to have no solution In today s market companies that base their profit on exports especially from the U S market where under the spotlight posting the biggest declines So far today the Nikkei fell 82 17 points 0 96 to 8 440 41 snapping a two day rally In Australia the S P Asx fell 63 40 points 1 74 to 3 589 00 trading again near a four year old bottom The sell off was triggered by the announcement Citigroup made and the very poor Empire State Manufacturing Index Yesterday Citigroup announced it would double the number of job cuts to 50K in the following year in order to reach profitability or better say to stay above the infamous Chapter 11 The number was higher compared to one month earlier when 25K jobs where initially announced to be eliminated Also yesterday the New York s Fed index of the Manufacturing sector showed the lowest read since 2001 when the index first began The report printed a 25 4 read having the zero benchmark delimiting growth from contraction |
C | ANALYSIS EU aims to square budget rules with stimulus | By Jan Strupczewski
BRUSSELS Nov 18 Reuters The European Union is likely to
quietly let the economy take precedence over its rules on budget
discipline as countries seek to avoid recession but the result
will likely be higher borrowing costs for the budget offenders
After the G20 summit last weekend top EU officials have
called for coordinated fiscal action in the 27 nation bloc to
quickly stimulate domestic demand and complement the positive
effects of global central bank interest rate cuts
But not every EU country has room for tax cuts or extra
government spending under the bloc s budget rules the Stability
and Growth Pact which sets the limit on budget deficits at 3
percent of gross domestic product
A source at the Eurogroup the monthly meeting of euro zone
finance ministers said the key thing was to think what was best
for the economy
We can think what we would do if we did not have these
rules to observe what makes sense and then reassure everybody
that once the situation is better we will also improve our
behaviour the source said
The Pact which underpins the euro was revised in 2005 to
give those who breach the 3 percent limit more time to get back
in line after France and Germany put up a fight against an
escalation of disciplinary steps against their excessive gaps
Since the revision budget positions in many euro zone
countries notably Germany improved substantially mainly
thanks to fast economic growth but also some reforms
Germany the Netherlands Austria or the Nordic countries
now have low deficits or surpluses and plenty of room for tax
cuts or more spending But others like France Britain
Ireland Italy Greece or Portugal don t ID nBFA000792
STIMULUS AT A COST
While the markets are likely to accept rising deficits as
necessary in the circumstances it will come at a price
EU finance ministers may turn a slightly blind eye to the
higher deficits for some time said Juergen Michels economist
at Citigroup
The market would see this as a reasonable thing but
countries like Italy or Greece have been punished by the markets
for loose fiscal policy so when a country goes for more fiscal
easing they have to have in mind that this is bearing costs
Michels said
Because only concerted fiscal action is likely to kick start
the economy economists say the EU needs everybody on board and
will seek to exploit the new flexibility of the rules without
giving them up altogether
The Pact says that in exceptional circumstances like the
current crisis countries breaching the 3 percent limit can get
two instead of the normal one year to correct the shortfall
This would mean that if the French deficit turns out to be
above 3 percent in 2008 as expected this would be confirmed
only in 2009 and the correction deadline could be set for 2011
For those who break the limit only in 2009 when the euro
zone is likely to be in recession the deadline could be 2012
More time can be bought if a country implements structural
reforms or if the difficult situation persists or becomes worse
The European Commission which is the guardian of EU laws
would still start disciplinary steps against the offending
countries because that is EU law But the EU executive has
suggested correction deadlines could be long and the
disciplinary steps might not be escalated towards fines
We want to make full use of the flexibility instruments
that the Pact offers us Economic and Monetary Affairs
Commissioner Joaquin Almunia has said
We don t want to ignore the Pact but it s a matter of
applying the pact at a time when the fiscal and budget policy to
support demand is absolutely vital he said
RISKY MOVE
But euro zone officials worry that if deficit offenders are
treated leniently it would be interpreted as a sign that the
rules have no teeth and market borrowing costs would rise
People are afraid that if they show any kind of flexibility
with respect to the rules the markets and the media would
perceive it very negatively the Eurogroup source said
But the alternative is a prolonged recession so it is better
to get all countries to use the fiscal stimulus now and make
sure the deficits are slashed once the crisis is over
There needs to be a very strong political commitment that
in the short run maybe the situation is so serious that we can
allow all countries regardless of what they have done in the
past to raise deficits but once the crisis is over you would
very quickly go back down the source said
The influential Bruegel think tank proposed a way to solve
the problem by making countries without budgetary room start
reforms to improve budget sustainability by September 2009
If the reforms are not in place by that time the country
could face accelerated disciplinary budget steps with a 2010
correction deadline Bruegel suggested
The 27 nation bloc has roughly four weeks to come up with a
solution which would be approved by a EU leaders summit in
mid December and for the measures to kick in 2009
Reporting by Jan Strupczewski editing by Toby Chopra |
C | TOPWRAP 9 US stocks slide auto bailout this year in doubt | U S stocks slide job losses mount
Economists Fed see recession well into 2009
Switzerland slashes interest rates
IMF helps Iceland Turkey
Oil falls below 50 on reduced demand
For more stories on the financial crisis click ID nCRISIS
Updates with stock prices deflation fears quotes
By Jackie Frank
WASHINGTON Nov 20 Reuters Fears of a deep long global
recession intensified on Thursday as stock markets hit new lows
on reports of more U S job losses and oil prices below 50 a
barrel as prospects dimmed for a bailout of U S automakers
World economic woes prompted Switzerland s central bank to
make a surprise one percentage point interest rate cut and
analysts said the poor U S jobs picture almost guaranteed a
Federal Reserve rate cut at its next meeting on Dec 16
CNBC reported Saudi Prince Alwaleed bin Talal planned to
boost his stake in Citigroup to 5 percent Despite this
move by its largest investor shares in the U S financial
giant fell as much as 25 percent to a new 14 year low due to
serious concern over heavy losses and even its very survival
Global equity markets sold off again with U S stocks
tanking for the second day to mark new multi year lows
How many times is one going to take a beating before
realizing the market isn t going to bounce said Andrew
Kanaly chairman of Kanaly Trust Company in Houston Texas
The decline in the oil prices is a barometer of more economic
sliding globally
Amid fears that a bankruptcy in the U S auto industry
could send tremors through the entire U S economy prospects
for a quick bailout of its automakers faded although Congress
continued to discuss it and hoped for a deal soon Observers
said one might not come until January
In a bad sign for the bailout an important industry friend
in Congress Michigan Democratic Rep John Dingell was
unseated as House Energy and Commerce Committee chairman
General Motors shares lost more than 20 percent its
troubles underlined by a two month production shutdown in
Thailand Ford Motor Co dropped nearly 17 percent
All three major U S stock indices made broad swings with
the Dow Jones industrial average at its lowest since
March 2003 and the Standard Poor s 500 down more than
2 5 percent it lowest since October 2002
World stocks tumbled to 5 1 2 year lows
with volatile emerging market equities down 4 71
percent European shares closed down 3 7 and Japanese
stocks plunged nearly 7 percent MKTS GLOB
In what would normally be a good sign for consumers and
markets but now signals weaker global growth U S crude
futures fell over 5 percent to just below 50 a barrel
for the first time since 2007 on expectations that slowing
economic activity would mean falling demand
JOB LOSSES LONG DOWNTURN
On the jobs front a government report showed the number of
workers filing new claims for jobless benefits last week surged
to the highest in 16 years President George W Bush backed an
extension of jobless benefits and U S Senate Democratic Leader
Harry Reid said it may be considered this week
Over four million Americans were receiving jobless benefits
in the week ended Nov 8
Planned layoffs since September at non financial companies
worldwide total at least 172 000 To that can be added 89 500
in financial sector losses For more see ID nLK348100
Leading economies will likely be in recession for around a
year a Reuters poll of around 250 economists showed The
survey across the Group of Seven nations showed economies faced
recession for as much as five quarters ID nLK530846
All developed economies will contract in 2009 It s the
worst we have had in a century But to say it s going to look
like 1929 again for all these economies is a bit excessive
it s too pessimistic said Marco Annunziata chief economist
at UniCredit in London
The Federal Reserve said on Wednesday the U S economy
would contract through the first half of 2009 ID nN19340273
No end in sight ING economists said in a note on
Thursday a sentiment widely shared by investors
Analysts said now the fear may be for a deadly economic
problem deflation marked by steadily falling prices and
economic stagnation
Once you get into a period of deflation it s important to
get the economy turned around as soon as possible said Lyle
Gramley a former Fed governor now an analyst with the Stanford
Group in Washington
The Philadelphia Federal Reserve said a key measure of U S
inflation the prices paid index fell to its lowest level
since the survey started in 1968
Japan s exports to Asia fell in October for the first time
since 2002 suggesting the fallout from the credit crisis has
spread to neighbors such as China ID nT254579
IMF TO THE RESCUE
With investors looking increasingly to governments and
other authorities to stop the rot the IMF moved to prop up
both Iceland and Turkey It approved a 2 1 billion loan for
Iceland battered by a severe banking crisis as part of a
10 2 billion package ID nLK644669
The IMF said Iceland s economy would likely shrink 9 6
percent next year and unemployment quadruple to 5 7 percent
Sources in Turkey told Reuters the IMF was ready to agree a
precautionary standby agreement of 20 billion to 40 billion
ID nIST002723
Russia s Prime Minister Vladimir Putin said his country
would not allow the global financial crisis to capsize its
economy and announced a 20 billion stimulus package and help
for people who lose out in the downturn ID nLK574680
European Central Bank Executive Board member Lorenzo Bini
Smaghi told a Portuguese newspaper more interest rate cuts by
the European Central Bank were possible
Additional reporting by Richard Cowan Tabassum Zakaria and
Reuters bureaux worldwide Editing by Chizu Nomiyama |
C | RPT GLOBAL MARKETS World shares at 5 1 2 year lows on econ fears | Repeats to amend typo in headline
MSCI world equity index down 2 3 pct lowest since May 2003
Oil at 22 month low global demand seen weak
U S Treasury 2 year yield hits record low
By Carolyn Cohn
LONDON Nov 20 Reuters World stocks dropped to 5 1 2
year lows and oil hit 22 month troughs as investors reacted to
dire Federal Reserve warnings on the economy and fears about the
viability of major U S auto makers and bank giant Citigroup
Federal Reserve officials slashed economic growth forecasts
through 2009 with the lower range of the Fed s central
tendencies forecasting the U S economy could shrink by 0 2
percent ID nN19327117
At least one among household names General Motors Corp
Ford Motor Co and Chrysler LLC is at risk of
bankruptcy if a last minute bail out plan fails ID nN19320198
The plight of U S automakers highlighted the increasing
damage which the world s financial crisis is inflicting on the
real economy
We have contracting economic growth falling corporate
profits and increasing unemployment which is filtering through
to every part of the economy said Henk Potts investment
manager at Barclays Stockbrokers
The MSCI world equity index fell 2 3 percent
to 197 90 its lowest since May 2003 driven lower in Asia after
data showing Japan s exports to Asia fell for the first time in
six years
European shares also approached their lowest since June
2003 with the FTSEurofirst 300 index of leading European shares
dropping 3 percent following losses of 5 percent or
more on Wall Street
European banks remained under pressure after Citigroup Inc
faced a crisis of confidence on Wednesday as investors
questioned the survival prospects of the U S banking giant
nN19311307
Having seen Lehman and Merrill Lynch fall by the wayside
this year the sight of another major such as Citigroup
struggling will prove a bitter pill to swallow said Chris
Hossain senior sales manager at ODL Securities
Oil fell by more than 1 a barrel to 22 month lows at 52 49
as the slumping global economy hit demand
The two year U S Treasury yield hit a record low of 1 06
percent on expectations of a 50 basis point U S rate
cut to 0 50 percent next month
Euro zone government bond futures rose more than half a
point to their highest since March 2006 at 120 36
The dollar dropped 0 77 percent to 95 20 against the
safe haven yen but edged up against the euro to 1 2504
Emerging markets suffered from falling commodity prices and
global demand
The MSCI emerging equities index dropped 4 55
percent to 467 32 Russian stocks on the MICEX exchange fell 7 5
percent before trading was suspended for an hour
Additional reporting by Simon Falush and Atul Prakash
Editing by Toby Chopra |
C | FOREX Recession fear sweeps yen up high yielders fall | Yen rallies dlr yen down 0 5 pct at 95 45
Fed pares economic outlook fanning recession fears
Stocks slide US automakers Citi seen as pressure points
Adds quotes updates prices
By Veronica Brown
LONDON Nov 20 Reuters The low yielding yen extended a
broad rally against major currencies on Thursday after downbeat
economic forecasts from the Federal Reserve underlined dire
global conditions and heightened risk aversion
Investors were keen to continue cutting exposure to risk
and unwinding yen funded carry trades in the process due to
fears about the viability of bank giant Citigroup Inc and
major U S automakers
The U S S P 500 index dropped Wednesday to its lowest since
early 2003 while futures pointed to weaker open
Citigroup remained in focus after its shares hit a 13 year
trough on Wednesday as investors question its prospects for
survival ID nN19311307
Meanwhile at least one among household names General Motors
Corp Ford Motor Co and Chrysler LLC is at risk of
bankruptcy if a last minute bail out plan fails ID nN19320198
Analysts said that as moves in the yen were correlating
strongly with equities further steep stock market losses would
hasten further rises for the Japanese unit which could take it
back to 13 year highs against the dollar
Risk aversion has just completely dominated markets
overnight this was accentuated by the minutes from the FOMC
meeting last night RBC currency strategist Christian Lawrence
said
We have a clear under performance of high yielders relative
to their lower yielding counterparts You could have the worst
data in the world coming out but the yen will still rally on
risk aversion he added
By 1113 GMT the euro had fallen 0 4 percent to
119 55 yen hovering above a one week low of 118 59 yen hit
according to Reuters data earlier in the global session
The dollar was down half a percent at 95 45 yen
while the higher yielding Australian dollar tumbled roughly 2
percent to 59 76 yen
The traditional safe bet Swiss franc was also hammered
against the yen and dollar losing out in the
battle of low yielding currencies as Japanese and U S borrowing
costs now significantly undershoot those of Switzerland
GRIM OUTLOOK
While the dollar was trapped in narrow ranges against the
euro and a basket of major currencies it gained
traction versus the higher yielding Australian and New Zealand
dollars on continued investor deleveraging
The New Zealand currency slipped more than 1 percent
to 0 5339 its lowest level since early 2003 and tumbled 1 5
percent against the yen
The minutes released on Wednesday from the Fed s October
policy meet showed the central bank sees U S growth contracting
in the second half of the year and the first half of 2009 even
after a 50 basis point interest rate cut to 1 0 percent
ID nN19340273
This kept prospects high that U S rates could fall even
further as the Fed tries to minimise the impact of the
recession
Major central banks have been slashing rates aggressively in
an attempt to boost their economies during an extreme slowdown
Figures this month show that Japan and the euro zone fell into a
recession in the third quarter
People are starting to give up on the hope that the economy
is going to recover said David Woo head of currency research
at Barclays Capital in London
Additional reporting by Naomi Tajitsu in London Editing by
Toby Chopra |
C | TOPWRAP 11 No relief seen in global economic crisis | White House could back auto industry rescue plan
IMF helps Iceland Turkey
Economists Fed see recession well into 2009
Oil falls below 50 on reduced demand
Deflation feared
For more stories on the financial crisis click ID nCRISIS
Updates with markets closed White House on auto plan
By Jackie Frank
WASHINGTON Nov 20 Reuters The global economy saw more
signs of distress on Thursday with U S stocks plunging for a
second consecutive day oil prices falling a surprise rate cut
in Switzerland export woes in Japan and rescue loans to Turkey
and Iceland
Wall Street was hostage to the rapidly changing news of a
possible rescue for the U S auto industry with the stock
market rising on news of a tentative bipartisan deal in
Congress for a 25 billion package for Detroit and then falling
to new lows when the deal ran into trouble
Automakers held out hope After the end of the trading day
the White House announced it could back a compromise plan
pushed by Michigan senators to help by using 25 billion in
Energy Department loans for greener cars and urged Congress to
act quickly U S automakers said they will meet Democratic
demands to offer a plan to return to profitability and
lawmakers said it could be considered the week of Dec 8
In more bad news for the battered U S economy the number
of U S workers on jobless rolls surged to the highest in a
quarter century prompting Congress to extend benefits for the
long term unemployed Oil prices plummeted below 50 a barrel
for the first time since 2005 as investors anticipate a long
global recession will slash demand
I think this is going to be not only a deep recession at
least in the next couple of quarters but also a long
recession said Conrad DeQuadros senior economist at RDQ
Economics in New York
All three major U S stock indices made broad swings
ending lower due to deepening economic fears and investor s
movement away from risk The Standard Poor s 500 was
down more than 6 71 percent its lowest since 1997 The Dow
Jones industrial average slid nearly six percent to
close just above 7 500 and the Nasdaq Composite Index
fell more than five percent
World stocks tumbled to 5 1 2 year lows
with volatile emerging market equities down 4 71
percent European shares closed down 3 7 and Japanese
stocks plunged nearly 7 percent MKTS GLOB
Investors sought shelter in safe assets and the U S
dollar slumped versus the yen but both rose against the euro
ID nN20588304
The rapidly slowing world economy prompted Switzerland s
central bank to make a surprise one percentage point interest
rate cut its third in six weeks and largest since it adopted
its current system in 2000
Analysts said the weak U S labor market almost guaranteed
a Federal Reserve Board rate cut from the current 1 percent at
its next meeting on Dec 15 16
Despite reports that Saudi Prince Alwaleed bin Talal
planned to boost his stake in Citigroup back to 5
percent shares in the U S financial giant fell 26 percent to
1994 levels due to serious concern over its very survival
How many times is one going to take a beating before
realizing the market isn t going to bounce said Andrew
Kanaly chairman of Kanaly Trust Company in Houston Texas
The decline in the oil prices is a barometer of more economic
sliding globally
In what would normally be a good sign for consumers but now
signals weaker global growth U S crude futures plunged
nearly 9 percent to 48 85 a barrel to a 3 1 2 year low on
expectations that a stalling economy would mean falling
demand
JOB LOSSES LONG DOWNTURN
A government report showed the number of workers filing new
claims for jobless benefits last week surged to the highest in
16 years More than 4 million Americans were receiving jobless
benefits in the week ended Nov 8 the highest since 1982
Leading economies will likely be in recession for around a
year a Reuters poll of around 250 economists showed The
survey across the Group of Seven nations showed economies faced
recession for as much as five quarters ID nLK530846
All developed economies will contract in 2009 It s the
worst we have had in a century But to say it s going to look
like 1929 again for all these economies is a bit excessive
it s too pessimistic said Marco Annunziata chief economist
at UniCredit in London
The Federal Reserve said on Wednesday the U S economy
would contract through the first half of 2009 ID nN19340273
No end in sight ING economists said in a note on
Thursday a sentiment widely shared by investors
Analysts said now the fear may be for a deadly economic
problem deflation marked by steadily falling prices and
economic stagnation
Once you get into a period of deflation it s important to
get the economy turned around as soon as possible said Lyle
Gramley a former Fed governor who is now an analyst with the
Stanford Group in Washington
The Philadelphia Federal Reserve said in its monthly
business survey that the prices paid component fell to its
lowest level since the survey started in 1968
Japan s exports to Asia fell in October for the first time
since 2002 suggesting the fallout from the credit crisis has
spread to neighbors such as China ID nT254579
IMF TO THE RESCUE
With investors looking increasingly to governments and
other authorities to stop the rot the IMF moved to prop up
both Iceland and Turkey It approved a 2 1 billion loan for
Iceland battered by a severe banking crisis as part of a
10 2 billion package ID nLK644669
Sources in Turkey told Reuters the IMF was ready to agree a
precautionary standby agreement of 20 billion to 40 billion
ID nIST002723
Russia s Prime Minister Vladimir Putin said his country
would not allow the global financial crisis to capsize its
economy and announced a 20 billion stimulus package and help
for people who lose out in the downturn ID nLK574680
Additional reporting by Richard Cowan Tabassum Zakaria and
Reuters bureaux worldwide Editing by Chizu Nomiyama |
C | UPDATE 1 Singapore in recession economy may shrink in 2009 | Updates with details quotes
By Neil Chatterjee and Daryl Loo
SINGAPORE Nov 21 Reuters Singapore s economy is seen
growing around 2 5 percent this year and could shrink next
year as financial services and its exports are expected to be
hit by a weaker global economy the government said on Friday
Singapore s gross domestic product shrank a
worse than forecast 6 8 percent in the third quarter on a
seasonally adjusted annualised basis final data showed
confirming the country entered into a recession
The government forecast the economy could slow to between
minus one percent and plus two percent growth next year
sharply down from a previous forecast of below 4 6 percent
growth It previously saw 2008 growth at 3 percent
Singapore s central bank said after the data that its
monetary policy stance as announced last month was still
appropriate and that it had no plans for a change in policy
ahead of the next scheduled review in April
The figures were not unexpected as this is a realistic
expectation of a shrink in GDP next year said Kit Wei Zheng
at Citigroup We think expectations of an imminent change to
monetary policy is still somewhat premature
Singapore s central bank said last month it was shifting to
a zero appreciation or neutral bias for its currency from a
policy that allowed for gradual appreciation The move is
intended to halt the rise of the currency loosening monetary
conditions
The Singapore dollar the central bank s main monetary
policy tool strengthened slightly versus the U S dollar to
1 5292 versus 1 5321 before the data
Economists had expected the figures to confirm a previous
government flash estimate of a 6 3 percent contraction Eight
economists forecast a median 2 25 increase for full year
growth
Singapore was the first country in Asia to fall into a
recession often defined as two consecutive quarters of
economic contractions with Japan and Hong Kong having
followed
Singapore s heavy dependence on trade with non oil
domestic exports contributing about 70 percent of the
165 billion economy last year makes it a good gauge of how
the global slowdown is affecting Asia
The data from everywhere else has been getting worse the
picture from Japan Taiwan and the U S has shown deterioration
in recent data Today s revision was pretty modest said David
Cohen of Action Economics
You could see them remaining patient But the current
global weakening is significant enough to motivate a special
move in monetary policy
Singapore s government is expected to spend more to shield
the country from the global downturn which could swell its
budget deficit to be three times larger than forecast in the
current fiscal year the finance minister said this week
It would be funded from a S 6 4 billion 4 2 billion
surplus accumulated in the fiscal year that ended last March
Economists said that personal and corporate income tax cuts
may also be on the cards for next year s budget which has been
brought forward a month to January
Additional reporting by Saeed Azhar and Matthew Webster
Editing by Jan Dahinten |
C | GLOBAL MARKETS Stocks rebound on rate cut hopes bonds up | MSCI world equity index up 0 8 percent at 192 00
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 European and Asian shares managed
to rise and oil rose towards 50 on Friday as expectations of
further interest rate cuts helped to cushion deepening gloom
about the financial and auto sectors as well as the broader
economy
On Wall Street the benchmark S P 500 index fell to its
lowest level since 1997 as signs of distress in the economy
mounted led by troubles at Citigroup and U S automakers
However Citigroup which fell more than 26 percent on
Thursday rose 6 percent in Frankfurt trading U S lawmakers
kept alive prospects for a 25 billion bailout plan for
carmakers although no agreement was reached on Thursday
Furthermore 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
Rumours are only rumours but investors are always
interested in talk that there will be more official steps that
could help the market rebound further said Wu Nan analyst at
Xiangcai Securities
MSCI world equity index was up 0 8 percent after hitting its
lowest level since April 2003 The FTSEurofirst 300 index also
rose 0 8 percent Emerging stocks gained 1 8 percent
U S crude oil increased 0 3 percent to 49 55 a barrel
having hit a 3 1 2 year low below 49 earlier
Investors sought safer government securities even though
stocks rebounded The December bund future rose 43 ticks while
the two year U S Treasury yield touched a fresh record low of
0 9586 percent
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 5 percent to 95 11 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 PMI survey on Friday showed 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 Emelia Sithole Matarise editing by
David Stamp |
WMB | Union face Fire looking to shake off ugly loss | Coming off their worst performance of the season the Philadelphia Union look to re establish themselves as the Eastern Conference s top team when they play host to the Chicago Fire on Saturday
The Union didn t manage a single shot on goal in a 4 0 loss to Real Salt Lake last Saturday Philadelphia suffered its largest margin of defeat in almost three full years
Head coach Jim Curtin described the loss as a good wake up call for the Union who are just 1 2 2 in their last five matches
We have a bad taste in our mouth in a lot of ways Curtin said I think we were outplayed in all three phases of the game offense defense and restarts So there is a lot to improve a lot to work on I think it was eye opening to the group and I expect a good response from the group against Chicago
Ilsinho adductor strain and Warren Creavalle broken foot could return to Philadelphia s lineup on Saturday Midfielder Jamiro Monteiro and forward Sergio Santos are both questionable due to ankle injuries The Union added goalkeeper Joe Bendik in a trade with the Columbus Crew on Friday
A victory on Saturday would ensure that the Union 10 6 6 36 points retain first place in the East through the weekend
The Fire meanwhile are struggling just to get back into the playoff race after posting a 1 6 4 record in their last 11 games in all competitions
This slump likely means some significant roster changes are coming while the transfer window is open Team president and general manager Nelson Rodriguez said on Wednesday that the Fire 5 9 8 23 points are discussing signings and trades with several players and teams
We have shown I think a more than reasonable amount of patience for the group to come together and to gel Rodriguez said That hasn t happened and so now I ll also be more aggressive in seeking opportunities rather than waiting to see what may come our way
Saturday will mark Chicago s third match in eight days The Fire had to settle for a 2 2 draw against Columbus on Wednesday after conceding a 90th minute goal to striker Romario Williams NYSE WMB
Chicago is winless 0 16 6 in its last 22 road games in league play a streak dating back to May 26 2018
Field Level Media |
WMB | Fed Dove James Bullard Backs Quarter Point Cut Would Love to Be Chair | Bloomberg James Bullard one of the most dovish members of the U S central bank favors lowering interest rates by a quarter point when officials meet later this month and said that becoming Federal Reserve chairman is something I d love to do
If I ever got that honor I would certainly take it the St Louis Fed president told reporters Friday in New York I notice the phone hasn t been ringing off the hook to get that And obviously it s something that the stars have to align for that to happen
Bloomberg has reported that President Donald Trump discussed firing or demoting Jerome Powell whom he picked to be Fed chair Powell says he will serve out his four year term and would not step down if asked to do so by the president
Trump has relentlessly attacked the Fed for raising rates last year and renewed his criticism Friday with a barrage of tweets including one citing a speech the day before from the New York Fed that initially increased bets of a half point reduction before a spokeswoman walked it back
I like New York Fed President John Williams NYSE WMB first statement much better than his second Trump said His first statement is 100 correct in that the Fed raised far too fast too early Also must stop with the crazy quantitative tightening
Fed officials are widely expected to cut rates by at least a quarter point at their July 30 31 meeting to offset uncertainties stemming from Trump s trade policies and weakening global growth even though U S unemployment is near a 50 year low
Bullard who dissented last month when his colleagues held policy steady because he favored a quarter point cut said that he didn t view an aggressive easing campaign as necessary
I d like to go 25 basis points at the upcoming meeting he said I think easing cycle is a little bit strong for this situation I like to point to the late 1990s examples 1995 96 and then again 1998 during the Asian currency crisis The Fed initiated several so called insurance cuts during this period in order to keep the U S economy growing |
WMB | Confusion builds over U S ban on Chinese surveillance technology | By Bryan Pietsch
WASHINGTON Reuters Contractors who buy and install Hikvision and Dahua surveillance systems told U S officials on Friday that an ambiguous law that bans purchases from the two Chinese companies could harm their businesses
Contractors voiced their confusion at a U S General Services Administration meeting about the provision in last year s National Defense Authorization Act or NDAA that prohibits federal agencies from purchasing new equipment from those Chinese companies
The deadline to comply with the ban on purchasing new equipment is Aug 13
Meeting attendees were not clear on whether the NDAA requires existing Hikvision and Dahua equipment to be ripped out or just that new cameras and other surveillance equipment must come from different suppliers They also wanted to know if they work with government agencies would the NDAA bar sales of the Chinese equipment to private businesses
Confusion expressed at the meeting is emblematic of widespread misunderstanding about a slew of new regulations put in place in the past 12 months that have restricted the role of Chinese companies in the U S marketplace U S companies seeking to comply for example with new rules essentially blocking sales to Chinese telecoms company Huawei have scrambled to sort out what can and cannot be sold under new guidelines halting sales of items that in fact are still allowed
The law comes amid growing U S government fear Chinese technology could be used as a tool for to spy on Americans
Representatives from Hikvision or Dahua did not present at the public meeting but a spokesman for Hikvision said the company is disappointed with the NDAA and that the law was quickly drafted without sufficient evidence Dahua did not immediately respond to a request for comment
Rick Williams NYSE WMB the general manager of Selcom a 10 person company based in Selma Alabama said at the meeting that small companies like his need guidance
Williams said additional language in the provision for example says federal agencies may not enter a contract with an entity that uses the banned equipment They asked if selling Hikvision or Dahua equipment to private customers would disqualify them from contracts with the government or government funded customers
Williams said he s worried about losing business with schools which receive federal funding
Mark Zuckerman CEO of Maryland based Clear Connection another surveillance installer whose customers include businesses schools and non profits said his company spent 122 054 on Hikvision equipment in 2017
He wanted to know whether government agencies will need to remove banned equipment or simply refrain from buying more of it The law directs affected entities to transition away from the equipment
Many federal agencies do not know the supplier of their equipment Additionally some equipment is not branded as Hikvision or Dahua but includes components from those companies according to Katherine Gronberg vice president for government affairs at Forescout Technologies which has worked with some federal agencies to identify the manufacturers of their equipment
The supply chain is very complex Gronberg said adding that components come from a range of global suppliers |
WMB | A rally and a redirect why the markets are so focused on the Fed | By David Randall Trevor Hunnicutt and Lewis Krauskopf NEW YORK Reuters When New York Fed President John Williams NYSE WMB talked about the need to vaccinate the economy on Thursday markets listened And when the New York Fed itself spoke up later to clarify his remarks investors were again all ears In fact as the U S central bank nears what is expected to be its first rate cut in a decade global markets are hanging on to every clue about the upcoming decision to an unusual degree Investors are trying to gauge whether policymakers are seriously worried about a sharp economic downturn or simply want to insure against that possibility One reason for investor confusion stands out Fed Chair Jerome Powell has set the table for an interest rate cut but has failed to win consensus why one is needed Policymakers in recent weeks have sketched out rate cut rationales ranging from bond market behavior to low inflation to the need to boost wages Some have also suggested they do not see the need for a rate cut in the first place as Boston Fed President Eric Rosengren did on Friday So when Williams Powell s No 2 at the policy setting table appeared to provide some clarity traders jumped on it U S stocks and bonds and futures contracts tied to the Fed s policy rate rallied on Thursday milliseconds after remarks from Williams that appeared to suggest an appetite for forceful rate cuts The benchmark S P 500 SPX on Friday remained near the all time high set earlier this week It s better to take preventative measures than to wait for disaster to unfold Williams said at an academic conference on Thursday Don t keep your powder dry Later in the day a New York Fed representative said Williams comments were not about potential policy actions at its upcoming rate setting meeting but academic in nature In the speech Williams cited years of his own research Stretching back at least five years as a policymaker he has repeatedly used similar phrasing to describe how the Fed should behave when interest rates are near zero But investors now are listening extremely closely Markets have long been expecting the Fed to cut rates at its July 30 31 meeting Williams comments were read by some as not only endorsing that view but suggesting the need for a deep 50 basis point cut Not even St Louis Fed President James Bullard the lone Fed policymaker who voted at the Fed s June meeting for a rate cut has gone that far On Friday Bullard again said he supports a quarter point cut Futures market odds of a 50 basis point cut at the July meeting soared to 71 late Thursday immediately after Williams speech but fell to 23 on Friday according to CME Group s Fedwatch Tool GRAPHIC Market bets on a 50 basis point Fed cut President Donald Trump who has repeatedly castigated the Fed for raising rates also weighed in I like New York Fed President John Williams first statement much better than his second Trump tweeted Friday His first statement is 100 correct in that the Fed raised far too fast too early Trump wrote as he again blamed the Fed s rate hikes for holding back economic growth Williams has not said the Fed raised rates too fast or too early and his record of remarks and policy votes shows he supported all of the central bank s nine rate increases since 2015 Fed policymakers meanwhile face the risk of disappointing markets if their communication is not pitch perfect Any selloff could worsen financial conditions and increase the risk of a bad outcome for the economy The New York Fed did not comment on the market reaction or the comments by Trump Policymakers on Saturday enter a traditional blackout period before their upcoming meeting during which they avoid making policy pronouncements of any kind The Fed has been behind the curve for market pricing for about eight or nine months and they can go a long way to correcting the inverted curve by cutting 50 basis points said Gary Cloud a portfolio manager of the Hennessy Equity and Income Fund The problem he said is if the Fed is seen as kowtowing to pressure by the president or that they know something negative about the direction of the economy that we don t know Given that Williams is vice chair of the Federal Open Market Committee one can appreciate why market expectations shifted toward a 50 basis point cut Mike O Rourke chief market strategist at JonesTrading wrote in a note adding that it is alarming that the Fed is having trouble communicating with markets
It is not a big deal when markets are at all time highs but the rest of the time it matters a very great deal O Rourke said |
WMB | NFL notebook Chiefs WR Hill avoids discipline | Kansas City Chiefs wide receiver Tyreek Hill will not be punished under the personal conduct policy as the NFL closed its formal investigation into multiple alleged physical altercations
Hill pleaded guilty to an assault and battery charge in 2015 but a full version of an audio recording aired recently revealed Hill denying assaulting his fianc e
Based on the evidence presently available the NFL cannot conclude that Mr Hill violated the Personal Conduct Policy the statement reads
The Chiefs released a statement on Friday welcoming Hill back to the team for the start of training camp next week The team s fifth round draft choice out of West Alabama in 2016 has amassed 223 catches for 3 255 yards and 25 touchdowns
The Philadelphia Eagles agreed to terms on a one year contract with 36 year old running back Darren Sproles the team announced
My heart is in Philly That s where I want to end my career Sproles said on the team s website That team the city is like a family
Sproles who ranks sixth all time in the NFL in all purpose yards 19 520 needs 163 yards to pass Tim Brown for fifth place The three time Pro Bowler will begin his sixth season with the Eagles after spending the first six years of his career with the San Diego Chargers and then playing three years with the New Orleans Saints
Denver Broncos rookie quarterback Drew Lock found out what the school of hard knocks will be like under new head coach Vic Fangio
He s not a quarterback yet Fangio told reporters on the second day of training camp He s a hard throwing pitcher that doesn t know how to pitch yet The faster he gets that the better off he ll be and we ll be
Lock who failed to get selected in the first round of the 2019 NFL Draft before the Broncos grabbed him the 42nd overall pick isn t expected to unseat new addition Joe Flacco as the starter in 2019
The Buffalo Bills signed journeyman safety Kurt Coleman to replace Rafael Bush who is retiring after nine seasons
Coleman 31 is entering his 10th season and received a one year contract that is reportedly worth just over 1 million
He played all 16 regular season games last season for the New Orleans Saints making nine starts Coleman finished with 32 tackles
Running back David Williams NYSE WMB who was originally drafted by the Denver Broncos in 2018 rejoined the team
Williams wound up playing last season for the Jacksonville Jaguars who signed him off the Broncos practice squad
He rushed eight times for 36 yards in six games with the Jaguars Williams was released May 10
The high stakes for building an NFL stadium for the Raiders in Las Vegas continues to rise with the latest cost estimate now coming in at 1 9 billion according to the Las Vegas Review Journal
A report indicated 40 million was being added to the cost in order to give the venue 20 more additional suites and a new club area near the north end zone
The Raiders are expected to move into the stadium for the 2020 season playing on a natural grass field under a translucent roof Stadium plans call for it to have sliding doors that will open to give a view of the nearby Las Vegas Strip The UNLV football program is also expected to use the facility
Field Level Media OLUSSPORT Reuters US Online Report Sports News 20190720T032332 0000 |
WMB | MLB roundup Mariners Leake falls just short of perfection | Mike Leake took a perfect game into the ninth inning and wound up with a one hit shutout as the Seattle Mariners defeated the visiting Los Angeles Angels 10 0 Friday night
Luis Rengifo led off the ninth inning by grounding a single into right field but Leake went on to finish a 98 pitch gem Daniel Vogelbach hit a pair of three run homers as the Mariners snapped a six game losing streak
Exactly one week earlier in Anaheim Calif Leake 8 8 had the shortest start of his 10 year career lasting just two thirds of an inning in a 13 0 loss in which the Mariners were no hit
Leake rebounded Friday by retiring the first 24 batters he faced before Rengifo hit a clean single Kevan Smith then walked but Leake escaped the jam getting Mike Trout for his sixth strikeout of the night to end the game
Giants 1 Mets 0 10 innings
Left fielder Dominic Smith misplayed Pablo Sandoval s two out fly ball into an error in the bottom of the 10th inning allowing Alex Dickerson to score from first base and give host San Francisco a second straight walk off win over New York
The win was the Giants season best seventh in a row and came after starting pitchers Tyler Beede eight innings and Jacob deGrom seven innings left a scoreless game
Dickerson led off the 10th by drawing a walk from the Mets third pitcher Jacob Rhame 0 1 Two outs later Sandoval hit a catchable popup to left that Smith couldn t corral with Dickerson speeding home to give the Giants their fifth walk off win of the season
Diamondbacks 10 Brewers 7
Arizona hit for the cycle in four consecutive at bats for the first time in franchise history as part of a six run third running en route to a victory over Milwaukee in Phoenix
With one out in the third Jarrod Dyson singled Ketel Marte doubled Eduardo Escobar tripled and Christian Walker homered to turn a 3 1 deficit into a 5 3 lead
Milwaukee s Jhoulys Chacin 3 10 who is 0 7 in his past 11 starts gave up seven runs six earned and seven hits in 2 1 3 innings Archie Bradley 3 4 pitched 1 1 3 scoreless innings of relief to get the win and Greg Holland tossed a 1 2 3 ninth for his 16th save
Dodgers 2 Marlins 1
Hyun Jin Ryu delivered seven strong innings in his first home outing since starting the All Star Game and Los Angeles earned a victory over visiting Miami
The go ahead run scored in the sixth inning on a two out error by Marlins second baseman Starlin Castro who could not corral Enrique Hernandez s hard ground ball that was hit right at him
Ryu 11 2 gave up one run on four hits with three walks and seven strikeouts Marlins rookie Zac Gallen 0 2 was effective in his fifth career start giving up two runs one earned on three hits over 5 1 3 innings with four walks and five strikeouts
Athletics 5 Twins 3
Marcus Semien homered tripled and doubled and scored twice and Ramon Laureano had two doubles to lead Oakland past Minnesota in Minneapolis
Khris Davis also had two hits and two RBIs and Matt Olson went 2 for 4 with an RBI for Oakland which improved to 14 3 against American League Central teams with its seventh victory in eight games overall
Chris Bassitt 7 4 picked up his third win in four starts allowing three runs two earned on five hits and two walks while also hitting two batters in five innings He fanned two Liam Hendriks picked up his seventh save with 1 2 3 innings of hitless relief striking out three
Phillies 6 Pirates 1
Rookie Adam Haseley homered and hit an RBI double as visiting Philadelphia downed Pittsburgh
Bryce Harper Jean Segura and Maikel Franco each had an RBI single for the Phillies who have won three of four Elias Diaz hit an RBI single for Pittsburgh which is 1 6 since the All Star break
Starters Jake Arrieta Phillies and Jordan Lyles Pirates each lasted 5 2 3 innings and gave up a run
Cardinals 12 Reds 11
St Louis escaped a sizable early hole by scoring 10 runs in the sixth inning and then hanging on for a win at Cincinnati
Reds starter Tyler Mahle brought a 7 0 lead into the sixth inning and appeared in good shape to end a personal five decision losing streak but he gave up four runs before the bullpen and defense allowed six more
Jose Martinez hit a tiebreaking three run homer in the sixth and Paul DeJong drove in four runs to give him seven RBIs in the past two games for the Cardinals Michael Wacha 6 4 pitched 1 2 3 innings of scoreless relief to earn the win
Indians 10 Royals 5
Rookie Oscar Mercado recorded his first career five hit performance as host Cleveland posted a victory over Kansas City to extend its winning streak to a season high tying six games
Mercado who had two RBIs and scored twice collected a double and four singles to become the 12th Indians rookie since 1913 to record at least five hits in a game
Tyler Naquin belted a two run homer and Francisco Lindor had three hits and three runs for Cleveland which also won six in a row from June 30 July 7
Astros 4 Rangers 3
Yordan Alvarez capped a stretch of back to back to back home runs with a titanic blast to right field before Houston hung on for a victory over visiting Texas
Alvarez followed solo blasts from Jose Altuve and Alex Bregman with his 474 foot bomb deep into the upper deck Altuve smacked a leadoff shot to left center before Bregman followed a homer to left as the Astros ambushed Rangers All Star left hander Mike Minor 8 5 in the third inning
Houston s Justin Verlander 12 4 allowed at least one baserunner in each of his six frames but he gave up just two runs on eight hits and a walk He struck out 12
Braves 4 Nationals 3
Ronald Acuna Jr had three hits and scored the winning run in the bottom of the ninth on a single by Josh Donaldson as Atlanta beat visiting Washington
Acuna led off the ninth with a walk off Fernando Rodney 0 3 who then gave up a single to Dansby Swanson and walked Freddie Freeman to load the bases with no outs Donaldson then singled to deep left field on a 2 0 fastball
Luke Jackson 5 2 was credited with the win despite giving up a two out two run game tying homer to Victor Robles in the top of the ninth The Braves snapped a three game losing streak Washington had won 14 of 18 games after taking the first game of the series Thursday
Yankees 8 Rockies 2
Edwin Encarnacion hit a third inning grand slam Aaron Judge added a two run homer in the sixth and host New York moved a season high 30 games over 500 with a victory over slumping Colorado
The Yankees won their fourth straight having rallied from an early deficit in each contest New York played without manager Aaron Boone who served a one game suspension for his profane rant against plate umpire Brennan Miller on Thursday The Yankees were managed by bench coach Josh Bard
The Rockies dropped their fifth straight and fell to 2 12 since June 30 Colorado manager Bud Black was ejected in the ninth by plate umpire Doug Eddings for arguing a checked swing strikeout by Chris Iannetta
Orioles 11 Red Sox 2
Anthony Santander MC SAN hit a three run homer and Keon Broxton added a two run shot later as Baltimore defeated visiting Boston
The Orioles banged out 14 hits to win a second straight game Baltimore s John Means 8 5 allowed two runs on four hits in six innings while the Red Sox s David Price 7 3 gave up two homers and six runs on eight hits in four innings
Boston s Mookie Betts saw his streak of 13 consecutive games scoring a run which tied Ted Williams NYSE WMB for the club record come to an end
Cubs 6 Padres 5
Addison Russell scored from second base on San Diego s second error of the eighth inning to lead Chicago past the Padres in oppressive heat at Wrigley Field
Pedro Strop 2 3 was credited with the win Craig Kimbrel who struck out the side around a walk in the ninth earned his fifth save since joining the Cubs
Craig Stammen 6 5 took the loss as the Padres fell to 1 6 since the All Star break The Cubs have won three straight and are 6 1 since the break
White Sox 9 Rays 2
Leury Garcia went 4 for 5 with two RBIs and Reynaldo Lopez pitched seven strong innings to help visiting Chicago snap a seven game skid with a victory against Tampa Bay
Chicago responded from its recent offensive woes by collecting nine extra base hits and saddling Rays rookie left hander Brendan McKay with the quickest exit of his brief major league career
Making his fourth career start and first appearance against the White Sox McKay 1 1 yielded nine hits and six runs five earned in 3 1 3 innings Lopez gave up two runs on six hits and a walk with eight strikeouts
Blue Jays 12 Tigers 1
Marcus Stroman cruised through seven innings rookie Vladimir Guerrero Jr had three hits and scored three runs and visiting Toronto pounded hapless Detroit
Stroman 6 10 who has been mentioned prominently in trade rumors scattered six hits while holding the Tigers scoreless He walked none and struck out five before the bullpen lost the shutout bid
Eric Sogard supplied three hits scored twice and knocked in two runs while Teoscar Hernandez blasted his 12th homer and drove in two Danny Jansen added three RBIs for the Blue Jays who had lost four of their previous five games
Field Level Media |
WMB | Athletics Simbine takes London 100m honors | By Mitch Phillips
LONDON Reuters South African Akani Simbine pulled off something of a surprise in the London Diamond League 100 meters on Saturday holding off local hope Zharnel Hughes and former world champion Yohan Blake to come home in 9 93 seconds
Hughes had clocked an impressive 9 96 in the heats despite easing up and running into a slight headwind but after an early stumble he was always trailing in the final posting 9 95
Blake the joint second fastest man of all time with his 9 69 set in 2012 is getting back toward his best and continued his good season with third in 9 97 as the top five all broke 10 seconds
Simbini has been knocking at the door for a few years with fifth places in the Olympics and world championships and gold at the Commonwealth Games and African championships and now looks equipped to challenge the best of the United States at this year s worlds in Doha in September
I m really happy with the time I came here to make sure I got the win to build confidence and I came away with a season s best he said
It s about getting through the races and winning them so by the time I get to world champs and I m facing the rest of the world I ll be ready and the confidence will be there and I ll be able to believe in the work I ve done
Olympic champion Elaine Thompson was a convincing winner of the women s 200m in 22 13 holding off fast finishing Marie Josee Ta Lou 22 36 and Britain s Beth Dobbin who was delighted with a personal best of 22 50 having had to miss the race a year ago to work
There was more to cheer for home fans as Laura Muir delivered a dominant front running display and a blistering last lap to win the 1500m in 3 58 25 That s probably close to my 400m PB the Scot said of the 57 54 burn up
Jamaica s Danielle Williams NYSE WMB fired out the fastest time of the year in winning the 100m hurdles in 12 32 a shade behind the world record set by American Kendra Harrision in the same meeting three years ago
FAST TRACK
American duo Nia Ali 12 57 and Queen Claye followed her home
It has been coming all season and it was just about when said Williams This is a fast track and the fact that we get two opportunities because of the heats you can fix what you did wrong ready for the final
In the 5 000m Ethiopia s Hagos Gebrihiwet had a little too much in the tank for Jakob Ingebrigtsen the European champion as he surged home in 13 01 86
There was some consolation for the 18 year old Norwegian though as his 13 02 03 took a remarkable 15 seconds off his pb to set a European under 20 record and put him in good shape for his 5 000m 1500m double bid in Doha
I m definitely able to go under 13 minutes I was hoping for a personal best but a national record is even better Ingebrigtsen said
It was Norway all the way in the 400m hurdles as Karsten Warholm destroyed the field to come home in a European record 47 12 seconds miles ahead of Turkey s Yasmani Copello 48 93
Warholm another with fond memories of the Olympic Stadium after winning the world title here two years ago was in total control from the start Running in his preferred lane seven saying it is better for his hamstrings than the tighter inside lane he wiped away his personal best of 47 33
It takes hard work dedication and a lot for me to get out those extraordinary times he said
There was huge disappointment for the crowd when Botswana s Nijel Amos who ran the fastest 800m by anyone since the London 2012 Olympics in Monaco eight days ago 1 41 89 fell 120 meters into Saturday s race In his absence Kenyan Cheruiyot Rotich held off compatriot Wyclife Kinyamal in 1 43 14
The second day of the event takes place on Sunday with the women s 5 000 meters featuring new mile world record holder Sifan Hassan and the women s 100m where local favorite Dina Asher Smith goes against double Olympic champion Shelly Ann Fraser Pryce top of the bill |
WMB | Zelenskiy s party in spotlight as Ukraine holds snap parliament election | By Maria Tsvetkova and Pavel Polityuk KIEV Reuters Ukrainians voted in a snap parliamentary election on Sunday that is expected to strengthen President Volodymyr Zelenskiy s hold on power handing the novice politician a broader mandate for driving change in a nation at war A TV comedian with no prior policymaking experience Zelenskiy won a landslide victory in a presidential ballot in April having cast himself as an everyman outsider who would tackle corruption and raise living standards in one of Europe s poorest countries But since then the 41 year old has had to deal with a cabinet and lawmakers who are mostly loyal to his predecessor Petro Poroshenko a balance of power that Zelenskiy hopes Sunday s election will swing in his favor His Servant of the People party named after the televised comedy in which he played a fictional president has consistently led opinion polls for the parliamentary vote though it might fall short of a majority Zelenskiy has so far not publicly designated a prime minister or a preferred coalition partner but on Sunday he appeared to rule out an alliance with parties that have previously held power Whoever wins the election will inherit a country at the center of a standoff between Moscow and the West following Russia s annexation of Ukraine s Crimea peninsula in 2014 and its role in a separatist conflict in the Donbass region of eastern Ukraine that has killed 13 000 people in the past five years The new government will also need to implement reforms agreed with international donors to secure billions of dollars of new loans to keep the economy stable SEEKING ECONOMIST AS PM Four hours into the vote by noon local time there was a turnout of around 19 the Central Election Commission said Zelenskiy after casting his ballot in north Kiev said he would decide on coalition options after results were known But Honestly we don t see a coalition with anyone from the old leadership he said He wanted a professional economist as prime minister and said he was holding consultations with a possible candidate but did not name them I would like him to be an absolutely independent person who has never been neither a prime minister nor a speaker or a leader of any faction One Zelenskiy supporter 40 year old Kiev teacher Vitaly Solomakha told Reuters TV he had cast his ballot for the Servant of the People party in order to give a man who got 74 percent of presidential votes a chance to bring to life everything he promised Other voters were unconvinced Zelenskiy says we will fire all of those who are not professional But I don t see professional people in his team They are showmen and should perform on a stage said 63 year old Poroshenko supporter Vladimir Lantukh There should be lawyers and economists in politics Zelenskiy who has promised to keep the country on a pro Western course while securing peace in the Donbass region announced the snap election in May on the same day he was inaugurated as president Agnese Ortolani of the Economist Intelligence Unit said she expected him to win a broad mandate to push through his reforms He is backed in this attempt by a majority of Ukrainians who view parliament as inherently corrupt and have given Mr Zelenskiy a mandate to clean up the political class she said BUSINESS LINKS Beyond his everyman image Zelenskiy has faced scrutiny over his business connections to one of Ukraine s most powerful tycoons Ihor Kolomoisky Kolomoisky has fought a protracted legal battle with the state over control of Ukraine s largest lender PrivatBank which was nationalized against his wishes in 2016 Zelenskiy insists he is not beholden to Kolomoisky and will not take his side A rollback of PrivatBank s nationalization would likely lead to foreign creditors freezing aid So far Ukrainians appear willing to give Zelenskiy the benefit of the doubt Ahead of the election surveys had shown the Russian friendly Opposition Platform far behind the president s party in second place Also in the running are the parties headed by Poroshenko and that of former prime minister Yulia Tymoshenko The Voice party fronted by rock star Sviatoslav Vakarchuk is seen as a possible coalition ally for Zelenskiy Zelenskiy will seek a new aid for reforms program with the International Monetary Fund and has promised crowd pleasing anti corruption measures such as stripping lawmakers of immunity from prosecution Often tie less and speaking to voters through social media videos Zelenskiy has carried his informal style from the campaign trail into the presidency A recent poll by the Washington based National Democratic Institute asked voters which politicians they thought were interested in hearing their opinions
Zelenskiy scored 49 percent compared to eight percent for Poroshenko Two thirds of those surveyed thought Zelenskiy would make changes that mattered to them |
WMB | Report Redskins Williams to hold out of camp | Washington Redskins offensive tackle Trent Williams NYSE WMB is not expected to report to training camp with the rest of the team later this week NFL Network reported Monday
Williams missed a mandatory minicamp in June and his absence is expected to extend well into training camp per the report
This could take awhile before Trent Williams is back in Washington if at all NFL Network s Mike Garafolo said on Training Camp Live It just really seems like an open ended thing right now
NFL Network s Ian Rapoport added that Williams motivations are two fold relating to concerns with the team s medical staff after a tumor scare earlier this offseason and also to his contract for which he wants at least an alteration
Williams had surgery in April to remove a tumor from his scalp after there were initial concerns that the tumor could be malignant It was not and he was expected to recover in time for the regular season but CBS Sports reported in June that Williams wanted out of Washington because of how the medical staff handled the situation
Rapoport and Garafolo reported Monday that Williams has since had a second surgery to address a cosmetic issue with the original wound and could still have more operations That could mean he wouldn t be cleared to practice anyway even if present at training camp
I know Trent knows how much we need him and want him back head coach Jay Gruden told reporters in June That s the only thing I can do from here As far as what happened with him and the doctors that s between he and the doctors and hopefully we get that cleared up soon
As for Williams contract he has two years and 24 million remaining including base salaries of 11 million in 2019 and 12 5 million in 2020 on a five year 68 million deal signed in 2015 Six offensive tackles have since exceeded Williams 13 6 million annual average led by Oakland s Trent Brown at 16 5 million
Williams who turned 31 on Friday has reached seven consecutive Pro Bowls He has been with the Redskins since 2010 when they took him fourth overall in the NFL draft
Reliable swing tackle Ty Nsekhe left Washington for Buffalo during free agency Former New York Giants first round pick Ereck Flowers has been working as the first team left tackle and 2018 third rounder Geron Christian is also competing for the swing tackle job
Field Level Media OLUSSPORT Reuters US Online Report Sports News 20190722T234419 0000 |
BMY | Transition TTHI Stock Up On News Of Acquisition By Opko | Transition Therapeutics Inc s NASDAQ TTHI shares were up 110 after the company announced that it has signed a definitive agreement under which it will be acquired by Opko Health Inc NASDAQ OPK in an all stock transaction Terms of the AgreementThe transaction is valued at approximately 60 million or 1 55 per share of Transition Therapeutics common stock Transition Therapeutics shareholders will receive approximately 6 4 million shares of Opko common stock The transaction is slated to close in the second half of 2016 The deal will add Transition Therapeutics lead metabolic candidate TT401 to Opko s pipeline TT401 a once or twice weekly oxyntomodulin is being developed for the treatment of patients with type II diabetes and accompanying obesity Opko will add two other candidates to its pipeline TT701 and ELND005 TT701 is being developed in a phase II study for the treatment of androgen deficiency while the company has completed phase II studies on ELND005 for the treatment of Alzheimer s disease and Down syndrome Our TakeThe decision to be acquired by Opko is a big and strategic deal on Transition Therapeutics part With a strong pipeline Opko will be able to offer increased value to Transition Therapeutics stockholders in the future Moreover Opko s position in the market should facilitate the development of Transition s pipeline candidates and their commercialization TT401 is expected to complement Opko s existing oxyntomodulin candidate MOD 6031 which is currently being evaluated in a phase I study Opko has a Zacks Rank 4 Sell while Transition Therapeutics carries a Zacks Rank 2 Buy Investors interested in the health care sector may consider Bristol Myers Squibb Company NYSE BMY and Pfizer Inc NYSE PFE Both stocks sport 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 |
BMY | XBiotech Xilonix Positive In Phase III Colorectal Cancer Study | XBiotech Inc NASDAQ XBIT announced positive results from a phase III study on its lead candidate Xilonix for the treatment of advanced colorectal cancer CRC Xilonix specifically targets and neutralizes interleukin 1 alpha IL 1a a molecule known to promote angiogenesis growth and spread of tumors and mediate symptoms such as metabolic dysregulation fatigue and anxiety associated with advanced cancer Patients n 309 enrolled in the study were randomized in the ratio of 2 1 to receive either Xilonix plus best supportive care BSC or placebo plus BSC Data from the study revealed a 76 relative improvement in the clinical response rate CRR after 8 weeks of therapy compared to placebo Patients treated with Xilonix also demonstrated a clinical benefit The candidate was generally well tolerated Notably there was a lack of toxicity associated with Xilonix in the study Results were presented at the European Society of Medical Oncology ESMO World Congress on Gastrointestinal Cancer The study was developed in collaboration with the Scientific Advice Working Group at the European Medicines Agency EMA In Apr 2016 the EMA s the Committee for Medicinal Products for Human Use CHMP granted accelerated review to Xilonix for the treatment of advanced CRC A decision on the product s marketing approval should be out as early as the fourth quarter of 2016 Meanwhile in the U S Xilonix is in phase III studies and the candidate enjoys Fast Track status for the treatment of advanced colorectal cancer We expect investor focus to remain on further development updates on Xilonix from the company CRC the second leading cause of malignancy is estimated to be diagnosed in approximately 470 000 individuals in the EU this year Drugs that are currently approved for the treatment of CRC include Erbitux Stivarga Zaltrap in combination with chemotherapy and Cyramza in combination with FOLFIRI XBiotech currently carries a Zacks Rank 2 Buy Investors interested in the health care sector may also consider Bristol Myers Squibb Company NYSE BMY ANI Pharmaceuticals Inc NASDAQ ANIP and Pfizer Inc NYSE PFE Each stocks sport 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 | Danske Daily US China Trade Talks Resume | Market movers today
Today we get a lot of important numbers in Scandi the US and Japan Brexit will also draw attention with today s vote at 15 30 CET on the withdrawal agreement without the political declaration We expect the withdrawal agreement to be voted down again and the question remains how does the EU react to this
The US PCE headline and core inflation numbers for January are due today and we expect the core print at 0 2 m m and unchanged at 1 9 y y just below the Fed s 2 target
In Norway we also get labour market figures and we expect seasonally adjusted NAV unemployment for March to be unchanged at 2 3 This report is more important than the LFS measure that disappointed on Wednesday The day also brings Norwegian retail sales figures where we anticipate cautious growth of 0 3 m m in February see page 2 for more details
Selected market news
Risk sentiment recovered somewhat overnight with Asian stocks trading up after a tough week The US equity indices also gained yesterday while the rally in fixed income markets halted Yesterday several Fed speakers sounded cautiously optimistic about the outlook with St Louis Fed President James Bullard saying it s premature to consider a rate cut adding much in line with our view that he expects growth to pick up in the second quarter In addition New York Fed Chief John Williams NYSE WMB was also modestly optimistic saying that while growth is slowing right now the US economy overall is in a very good place
Trade talks between the US and China resumed yesterday The US delegation led by finance minister Mnuchin and trade representative Lighthizer had a productive dinner with the Chinese delegation ahead of a full day of talks today between the two sides Meanwhile Larry Kudlow Trumps economic advisor tempered expectations saying the US is willing to extend the process for weeks or months in order to get the right deal for the US We think that discussions are proceeding well but that we may see hiccups on the final stretch of talks given the difficulties in finding an adequate enforcement mechanism in a potential deal However we expect the discussions to be completed before the end of Q2 ahead of the beginning of the US electoral campaign
In Europe financial markets yesterday digested the indications from the ECB that a tiered deposit system is under consideration We provide a detailed discussions of the possible facility in our piece published yesterday ECB Research ECB Watchers conference is a tiering system really the answer Yesterday German HICP inflation fell to 1 3 in March from 1 5 in February driven by lower food and core inflation In our view the numbers do not bode well for next week s euro area core inflation release
Scandi markets
In Norway we get retail sales for February and unemployment for March today Retail sales have been weak since last spring despite strong growth in January The main reason for this is probably high power prices eroding consumers purchasing power and this effect will probably not disappear completely until we get to the April figures We therefore anticipate only cautious growth of 0 3 m m in February Employment continues to grow strongly and although the supply of labour is expanding unemployment is still falling albeit at a more moderate tempo We therefore expect seasonally adjusted NAV unemployment for March to be unchanged at 2 3
Today we also get February s Danish unemployment figures and final Q4 GDP estimate Unemployment has been steadily falling since mid 2017 and we would have to go all the way back to the start of the financial crisis to find the same low level as now
Fixed income markets
The global fixed income rally ran out of steam yesterday Even a 0 2pp lower than expected German CPI was not able to fuel a further rally and both core and periphery yields edged a few basis points higher The market continues to discuss a possible ECB tiering system The impact on the economy is probably limited but the signal is important as it underlines that the ECB acknowledges that negative deposit rates are here for an extended period of time and that rate cuts could potentially be back on the agenda see ECB Research ECB Watchers conference is a tiering system really the answer
In the US especially the policy sensitive 5Y point on the curve was under pressure 5Y Treasury yields have moved 6bp higher over the past 24 hours and the 5s10s curve has flattened
We published our overview of foreign holdings in DKK bonds yesterday It showed that foreign investors now own 52 in the 2 50io bond Foreigners own 45 in the regular 2 50 and 30 6 of all callable bonds
FX markets
EUR trading heavy still post ECB s tiered deposit talk earlier this week with notably EUR CHF continuing to fall to new 2017 lows even though risk sentiment has stabilised a bit SNB s Maechler yesterday reiterated that the franc is highly valued and again mentioned the importance of the intervention pledge We have previously stressed that it would require EUR CHF to fall towards 1 10 before the latter would be seen but it is worth keeping an eye on the weekly sight deposit figures near term to see whether the SNB starts to step in Meanwhile the GBP is set for another volatile day as PM May is set to bring the withdrawal agreement but not the political declaration on future relations required to go through with Brexit to a vote in parliament today in order to meet the formal requirements for an extension most likely it will be voted down EUR GBP stuck in the range 0 85 0 87 for now
In the Scandies EUR NOK closed in the 9 60s after a volatile session that saw the cross reach an intraday high of 9 7472 Today s data calendar brings three important releases in retail sales NAV labour market report and Norges Bank NOK purchase announcement for April Our base case is all three of these releases will continue to underpin a domestic case for a stronger NOK Separately we expect EUR SEK to stay within the 10 40 50 range even as the dividend season continues with relatively large pay outs
Meanwhile the TRY remained under pressure yesterday with the USD TRY climbing
3 5 One of the reasons for investor caution is the increasing tensions between Turkey and US A Turkish employee of the US consulate in Istanbul went on trial on Tuesday on charges of espionage terrorism and playing a role in an attempted overthrow of the government in a case that has strained Turkey s ties with the US We remain bearish on the TRY |
WMB | Ten Year Yield Hits New Fresh Lows Drops Below 2 4 | Index Futures Net Changes and Settlements
Foreign Markets Fair Value and Volume
In Asia 6 out of 11 markets closed lower Shanghai Comp 0 92 Hang Seng 0 16 Nikkei 1 61
In Europe 7 out of 13 markets are trading higher CAC 0 02 DAX 0 18 FTSE 0 52
Fair Value S P 4 49 NASDAQ 26 79 Dow 11 84
Total Volume 1 72mil ESM 142 SPM traded in the pit
Today s Economic Calendar
Today s economic calendar includes the 52 Week Bill Settlement GDP 8 30 AM ET Jobless Claims 8 30 AM ET Corporate Profits 8 30 AM ET Pending Home Sales Index 10 00 AM ET EIA Natural Gas Report 10 30 AM ET Kansas City Fed Manufacturing Index 11 00 AM ET Raphael Bostic Speaks 11 30 AM ET John Williams NYSE WMB Speaks 1 15 PM ET John Williams Speaks 2 30 PM ET Farm Prices 3 00 PM ET Fed Balance Sheet Money Supply 4 30 PM ET and James Bullard Speaks 6 20 PM ET
S P 500 Futures 10 Yield Scares the ES
Chart courtesy of Stewart Solaka Chicagostock ES F Thursday s 3D pivot range narrowed Opportunity for volatility expansion range breakout Pivots still above sellers in control Close above needed to attempt reversal of negative momentum
During Tuesday nights Globex session the S P 500 futures ESM19 CME printed a high of 2831 75 a low of 2814 00 and opened Wednesday s regular trading hours at 2824 25
The first move after the 8 30 CT bell was a quick pop up to 2831 00 to test the Globex high followed by a dip down 2817 50 From there the futures took another shot at the highs but fell short and double topped at 2828 50 After that the ES spent the rest of the morning selling off printing a low 2791 50 just before 11 00 CT It was a relentless selloff with very few pullbacks
As European markets closed the ES began to recover and by noon had traded back up to 2806 00 The strength continued well into the afternoon and the futures eventually rallied to 2814 75 As the final hour rolled around the ES began to fall back a little trading down to 2806 50 but buy imbalances began to show up around 2 30 helping push the futures up to 2816 25
Going into the end of the day the ES traded 2813 75 when the 2 45 cash imbalance reveal showed 732M to buy then traded 2810 00 on the 3 00 cash close and 2810 25 on the 3 15 futures close
In the end the overall tone of the ES was balanced showing weakness early in the day and strength later in the day In terms of the days overall trade total volume was a little higher 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 | USDJPY Edged Up On Broad Strength In The US Dollar Amid Brexit Mess Negative Germ | USDJPY closed around 110 64 in the US session Thursday edged up almost 0 10 on broad strength in the US dollar amid Brexit mess and negative German Bund DE as well as JGB Japanese yields The Goldilocks US GDP growth and China trade deal suspense also helped coupled with less dovish Fed talks The US dollar is getting stronger against Chinese Yuan and other EM Commodity currencies in a scenario of trade conflict economic mess Turkish Lira and is now acting also as a safe haven currency relative to other vulnerable currencies
Thus despite recent dovish Fed actions an abrupt close of dual QT and growing probability of 2 rate hikes cuts in 2019 the US dollar index is getting strong as economic data from other G 7 countries zone such as EU Japan and Britain are even softer than the US and their bond yields are much lower and inverted compared to the US
And other G 7 central banks i e ECB BOJ and BOE or even BOC are now turning more dovish than the Fed planning to go into ZIRP or even NRIP The NZ central bank RBNZ surprised the market this week with its dovish hold stance next move may be cut rather than a hike The market is now expecting all the other G 7 10 20 central banks will follow Fed and prepare the market for rate cuts in line with the Fed to keep the bond yield interest rate differential with the USD at present levels and to keep the currency lower against the USD for the sake of exports advantage
This along with growing EU political jitters Brexit Frexit Italexit and even Catalexit and Trump trade war are making those economies weaker Countries from Japan to the EU are all directly indirectly affected by the US China trade war narrative apart from their own trade issues with the US
As a result the US dollar index DXY surged by almost 0 61 this week till Thursday while it also jumped by almost 1 73 in the last two months Feb March On Thursday GBPUSD tumbled over 1 while EURUSD slumped around 0 25 and USDCAD surged almost 0 25 And USDJPY jumped almost 0 62 in this week till Thursday while still down around 0 70 for March after a jump of around 2 31 in February 19
On Thursday the USD was also helped by higher US bond yields on the reduced concern of a synchronized global contraction after some upbeat comments by Chinese Premier Li about the Chinese economy and his promise for further relaxation of foreign investment rules in China The 10Y US bond yield made a session high of 2 405 almost at the effective Fed fund rate earlier it made a session multi year low of 2 340
On Thursday the final estimate shows that the US GDP has grown by 2 2 in Q4 sequentially q q was lower than the last estimate of 2 6 and the market expectation of 2 4 On a yearly basis the Q4 GDP growth was at 3 0 against 3 1 in Q3 The whole year average GDP growth 2018 now stands at 2 9 little below the earlier rhetoric of 3 00
Further crunching the details the Personal consumption grew 2 5 vs 2 6 expected prior estimate 2 8 Exports 1 8 vs 1 6 prior estimate Imports 2 0 vs 2 7 prior estimate i e positive net trade factor Inventory changed adds 0 11 to GDP the US Corporate profits after tax in 2018 grew by 16 2 on an average the business investment private capex dropped to 5 4 vs 6 2 prior the home investment slumped to 4 7 vs 3 5 prior
On the inflation front the US core PCE surged 1 8 in Q4 sequentially from a prior market estimate of 1 7 and the final GDP deflator price index jumped 1 9 sequentially from a prior estimate of 2 0 higher than the market expectation of 1 8 a higher GDP deflator is negative for the GDP growth
Overall net trade export import dragged less than anticipated but private consumption and business capex was soft to some extent The downward revision to real GDP growth was primarily accounted for by negative revisions to consumer and government and business capex that were partly offset by a downward revision to imports positive net trade Personal Consumption contribution to the bottom line 1 66 from 1 92 On an annualized basis however the number was 2 5 which was down from the 2 8 pre revision and just below the 2 6 expected
Fixed investment was also revised lower contributing 0 54 to the bottom line down from 0 69 a month ago Private inventories while barely changed were also revised lower from 0 13 to 0 11 The US net trade shrank less than initially reported reducing GDP by 0 08 down from 0 22 as initially reported And government consumption ended up being a drag to growth shrinking by 0 07 vs the initial estimate of 0 07 growth
Primarily the US Q4 economic growth was downwardly revised in the final estimate on lower domestic activity Most of the downward revision came in the area of personal consumption spending as was expected earlier on the sharp downward revisions to December retail sales Business fixed investment and government spending were the other subcomponents that were downwardly revised partially a result of Trump shutdown This was partially countered by an upward revision to net trade which may be a function of seasonality and tariff front running
Inventory investment changes were small and had not had a material impact on GDP growth in terms of contribution With these revisions final sales to domestic purchases a gauge of domestic activity was downwardly revised to 2 1 lowest since the Q1 of 2018 However at 2 1 this measure is only slightly below its pre fiscal stimulus average
The market is now expecting that the US economy may grow around 2 0 in Q1 2019 sequentially on account of revival higher government and personal spending The sudden fall in December 18 retail sales may be a one off exceptional as it coincided with a plunge in the stock market uncertainty over the government shutdown and the fact that sales may have been pulled forward to the Black Friday weekend in November
Also the rebound in January retail sales implied that consumer spending continues to be solid Moreover strong labor markets and real wage growth a high saving rate and relatively sound household balance sheets taken together may help consumer spending in the days ahead Although the Wall Street is concerned about an impending recession because of some soft US economic data and current spate of bond yield curve inversion the Real Street real economy is not so much concerned and is quite confident on Trumponomics
The US Business fixed investment was the second major source of the downward revision in Q4 deducting a bit over 0 10 from the headline GDP Within this category revisions were seen in IP and residential investment The downward revisions to these two areas were expected given the US China trade suspense IP is a structural issue and soft construction spending for November and December
For the US President Trump despite the downward revision the president can still boast of the first 3 GDP print on a Y Y basis as the Q4 2018 real GDP surged 3 0 against 2 5 in Q4 2017 The market was expecting the Q4 2018 GDP below 3 y y amid soft economic data in Q4 and some adverse effect of Trump shut down
But at around 3 00 average GDP growth in 2018 or even at 2 10 Fed projected GDP growth in 2019 the US is also far above its peers EU Japan which are now in minuscule or virtual negative growth technical recession This economic growth divergence is helping the USD coupled with Trump s huge infra spending plan of 1T over 10 years
In other economic data for the last few days the US initial jobless claim the US trade deficit existing home sales were positive while building permits CB consumer confidence manufacturing service PMI were negative Overall a mixed set of US economic data and all focus will be on the US core PCE price index to be released Friday the preferred gauze of inflation for the Fed which is officially now in the neutral mode i e could move in either direction depending on the incoming data inflation
Talking about the Fed there was a deluge of Fed talks in the last few days which are mostly on the less dovish side as the Fed may not be preparing the market for an eventual rate cut and launch of QE 4 in late 2019 or early 2020 contrary to some market expectations
On Thursday the Fed VC Clarida argued the Fed cannot ignore a number of prominent downside global risks including Brexit Trump trade war jitters and thus the present neutral stance is quite appropriate coupled with muted US inflationary pressure
Clarida noted The US economy s integration with the rest of the word has risk substantially over the past 60 years That heightened US exposures to external shocks through channels of direct trade links foreign exchange markets and contagion in financial markets Recently the US and other financial markets are attuned to a number of prominent downside global risks including Brexit a sharp slowdown in growth and trade tensions FOMC policymakers can hardly ignore these risks Indeed he pointed out three of the most recent FOMC statements have highlighted concerns about global economic and financial developments
Thus Clarida justified Fed s stance that in the presence of these external risks and with domestic inflation pressures muted we can afford to be patient and data dependent as we assess in future meetings what adjustments in our policy rate might be necessary to sustain growth employment and price stability in the US economy
Clarida said Let me conclude with some remarks on recent developments The U S and other financial markets are attuned to a number of prominent downside global risks which include Brexit a sharp slowdown in global growth prospects and trade tensions
Even though the Fed has been and is committed to a dual mandate to achieve maximum employment and price stability in today s world U S policymakers can hardly ignore these risks and three of our most recent FOMC statements have highlighted concerns about global economic and financial developments In addition in our policy statements as well as in other communications we have indicated that in the presence of these risks and with inflation pressures muted we can afford to be patient and data dependent as we assess in future meetings what adjustments in our policy rate might be necessary to sustain growth employment and price stability in the U S economy
Another influential FOMC member and the so called neutral guru Williams NYSE WMB downplayed the current bond yield curve inversion panic and said the US Recession risks in 2019 or 2020 are not elevated the US economy is in a very good place and yield curve inversion points to modest growth instead of an outright recession Overall Williams sounded less dovish than the market expected
On Thursday the NY Fed President Williams said The most likely case was for US economy to grow 2 with low unemployment in 2019 20 and the probability of recession this year or next was not elevated relative to any year There are a lot of reasons to think that it has been a recession predictor for reasons in the past that kind of doesn t apply today And it only tells us that growth will be pretty modest
On a question above monetary policy setting Williams said Short term interest rate is around neutral Meanwhile any development in the economy whether it s on the employment side or on the inflation side that moved in a persistent way away from our objectives one way or the other would be a reason to rethink the path of policy going forward
Williams said at an event in Puerto Rico I m not as worried about a recession as some of my colleagues in the private sector I still see the probability of a recession this year or next year as being not elevated relative to any year the
On Thursday Fed s Bullard a known evergreen dove surprisingly sounded more optimistic and less dovish He said the recent spate of soft US economic data is probably temporary premature to contemplate rate cut
The St Louis Fed President Bullard said The spate of weaker data is probably mostly temporary And the notion of a rebound in the second quarter is a good forecast Thus it s premature to contemplate a rate cut here you do not want to watch the data closely and you won t really know that until you get to the July time frame that would be the next time to revisit monetary policy
Bullard said he is expecting a relatively weak Q1 but he wasn t sure exactly how soft it would be and he added the revision to Q4 growth came in about as expected So the three quarter trend is still around 2 which is not too bad and then I d expect some strengthening in the second half of the year A clear picture of the health of the economy in the second quarter won t be available until July That would be the next time you d revisit the stance of monetary policy It s one thing to say the economy is slowing It is another thing to say how fast
Bullard is mainly a contrarian policy maker and thus despite being one the first Fed officials to express concern with the flattening inverting yield curve Bullard said the recent inversion of some parts of the yield curve was not an important signal on its own
On the current bond yield curve inversion debate Bullard clarified I think you would have to get a wider variety of spreads to be inverted the 2 year 10 year in particular and it would have to stay inverted and be meaningfully inverted for a while a matter of months or even quarters before you would say it that it was sending a negative signal that s in the same sense that it did historically
Thus Bullard is now arguing for 2s5s inversion in a meaningful way say for 3 continuous months for a definitive signal of an economic recession which not happened till date The recent low of 2Y US bond yield was at 2 162 while that of the 10Y was around 2 340 i e the 10Y yield is still higher by around 18 bps
Bullard also pointed out The Fed s monetary policy normalization process in the US is at an end and we have gone as far as we can Hopefully we ended the normalization at the right moment as the inverted yield curve has been a reliable signal in the past
On Wednesday Fed s George also sounded less dovish and pointed out more time and evidence needed to separate signal from noise
The Kansas City Fed President George said in a speech The weakness in Q1 growth could reflect transitory factors such as the government shutdown financial volatility an unusually harsh winter and heightened policy uncertainty But over the medium term the generally positive outlook of the US economy has several prominent downside risks The biggest risks come from slower growth abroad particularly in China the Euro area and the United Kingdom Together with waning U S fiscal and monetary stimulus they represent a stronger headwind than my baseline forecast Right now data are noisy and more time and evidence are needed to separate the signal from the noise
Finally George concluded The US economy s fundamentals still appeared sound and that job growth would likely rebound from a weak performance in February Domestic factors including the waning effects of US government stimulus also contributed to a median projection by Fed policymakers falling to 2 1 growth for 2019 My outlook calls for growth to slow to trend with moderating job gains and low inflation In these circumstances monetary policy can take a wait and see approach
All focus was also on UST yields as the gap between 3 month Treasury bills and 10Y UST extended to 5 bps the so called inverted yield curve an ominous sign of a looming recession in next 1 2 years for the last 60 years
On Wednesday the 10Y UST yield made a low of 2 352 and the 5Y UST also made a low of 2 118 while the 2Y UST made a low of 2 162 all below the current effective Fed fund rate of 2 40 The market is now discounting 2 rate cuts by the Fed in 2019 The spread between the 2s5S is now around 3 bps The inversion between 2Y and 5Y UST yields beyond 12 bps has previously been met with Fed easing It s currently around 5 3 bps after reaching 9 bps on Friday
An exception for the above thumb rule was in 2006 when the Fed waited 10 long months after an inversion of 19 bps to cut rates That was followed by the great financial crisis GFC of 2007 2009 and the collapse of Lehman Brothers which resulted in almost zero interest rates ZRIP and years of QE Although the Fed normalized its monetary policy to a great extent in the last 3 years the ECB and the BOJ is far from normalization and still near ZRIP NRIP with the QQE BOJ The ECB may also launch another QE APP apart from TLTRO 3 The ECB President Draghi also indicated late or even no rate hikes normalization under the present global EZ economic slowdown
But in the past bond yield curve inversions and subsequent rate cuts have occurred against a backdrop of very adverse events including the savings and loans crisis in 1989 the plunge of the Nasdaq index in 2000 dot com bubbles and the US housing crisis in 2006 sub prime loan crisis There is no obvious comparison in the current scenario despite Trump trade war and European political jitters Brexit After all the US economy consumers is are not so much strong to withstand even 4 5 mortgage rate for 30 years
And thus a recession may be a far stretched probability although a slowdown is very normal in any economic cycle of 10 15 years Some market participants are also apprehending an agrarian agricultural crisis in the US in the coming years amid Trump trade war narrative and the probability of a devastating flood There are also signs of automobiles sales slowdown as prices soared thanks to Trump s bellicose auto tariffs policies and tax on foreign metals a key raw material for automobiles
And thus to stimulate the economy from such slowdown deflation disinflation rather than Trumpflation the Fed may cut by twice in 2019 20 H1 Trump may also launch his 1T infra spending fiscal stimulus and all these indicate that the US will issue more debts Treasuries to fund Trumponomics and thus bond yields are also going south The growing and unsustainable fiscal deficits are also negative for the US economy
And the market is also disappointed that despite 1 5T tax cut boost over 10 years the US economic growth will be anemic this year as corporates used the tax cut benefit for buybacks higher dividends higher return for the shareholders rather than increasing capex or capacity utilization or higher employee wages Thus there is no significant boost in consumer spending the main driver of the US economy For the sake of fiscal discipline Trump may not ready to withdraw his 10 additional China and others tariffs which is actually being paid by the US importers consumers and not Chinese other exporters
Another reason behind the abrupt fall in the US bond yields may be extreme dovish talks by Trump s new Fed nominee Moore who argued in an interview for an immediate rate cut of 0 50 to stimulate the US economy The Trump economist Moore also wants the Fed to follow commodity prices for rate setting In a bizarre article Moore tried to justify that when commodity prices rise the Fed would raise interest rates to prevent inflation and it would reduce rates when commodity prices fall
Trump saw the epic article of Moore potential to win a Noble Prize on economics and he offered Moore the Fed post which Moore said he had never previously considered Moore said I never really thought about this but you know I thought that the more I thought about it the more I thought this is economic policy right on the front line That s what I do I thought this would be an amazing experience and hopefully I could work with Powell to get him shifted over to a more pro growth policy I would use commodity prices as a guide I wouldn t be doctrinaire about it
The market is already concerned about the Fed s autonomy and credibility amid Trump tantrum And such concern is now taking a serious turn if joker economist likes Moore get a seat in the Fed to argue experiment rate action depending on commodity prices volatility
At its most recent meeting last week the Fed projected 2 1 GDP growth for the US in 2019 a full percentage point below the roughly 3 cent growth that was seen in 2018 The potential for an economic slowdown has led many in the markets to argue that the Fed s next move will be a rate cut rather than rate hikes Moore Trump s latest Fed board candidate said in an interview on Tuesday that the Fed should not have raised rates in September and December 2018 and that they should reverse course now by cutting immediately by 0 50
On Wednesday Fed s George asked if she felt those two rate hikes were a miscalculation she said No I do not think we made a mistake in September George said she supported the Fed s plans to conduct a review of monetary policy strategy this year and some proposed changes to its framework which had merits including proposals for the Fed to commit to making up for years of below target inflation and a BOJ like YCC for taking bond yield curve to near zero At the same time she listed a number of reasons why such a framework might not work or could even do harm to the economy
Fed s George clarified I see both fundamental and practical issues to grapple with in moving to such regimes but it might be reasonable for the Fed to allow even somewhat persistent deviations from its 2 inflation target If they are limited to say 50 bps above or below the objective they may be acceptable depending on broader economic conditions say the inflation target will be 2 with a band of 0 50 on both sides i e a range of 1 50 to 2 50
George concluded on Wednesday Over the longer run with an evolving economy prudent policymaking would suggest taking a look at our current policy strategies to see if they can be improved or refined especially in light of the possibility of a future return to the zero lower bound In doing so we must be aware that what works in theory may have limitations and unintended consequences when adopted in practice The Federal Reserve will explore these issues as part of its review of its monetary policy strategy tools and communications practices this year
The market was expecting not only rate cuts by the Fed in 2019 but also a possibility of new Fed approach like ZRIP NRIP YCC like BOJ s powerful QQE in the coming days to stimulate the US economic wage growth and inflation the 2 sustainable price stability goal But none of the present Fed policymakers are now interested for any rate cuts and any fresh experiments like ZRIP YCC and thus the USD got some boost as the Fed is now sounding less dovish after the recent policy flip flops amid Trump tantrum
On Thursday pre US session USDJPY is currently trading around 110 80 inched up by another 0 16 and made a session high of 110 92 amid higher US bond yields
Technical view USDJPY
Technically whatever may be the narrative USDJPY now has to sustain over 111 10 for a further rally to 111 60 111 95 112 15 112 50 and 112 90 113 50 114 00 114 25 in the near term under bullish case scenario
On the flip side sustaining below 110 95 USDJPY may again fall to 110 50 110 00 109 70 109 00 and 108 50 107 90 107 50 106 20 in the near term under bear case scenario |
WMB | Markets Rally Despite Growth Concerns | Index Futures Net Changes and Settlements
Foreign Markets Fair Value and Volume
In Asia 10 out of 11 markets closed higher Shanghai Comp 3 20 Hang Seng 0 96 Nikkei 0 82
In Europe 11 out of 13 markets are trading higher CAC 0 89 DAX 0 97 FTSE 0 42
Fair Value S P 4 26 NASDAQ 25 74 Dow 8 47
Total Volume 1 18mil ESM 197 SPM traded in the pit
Today s Economic Calendar
Today s economic calendar includes 10 Yr TIPS Settlement Personal Income and Outlays 8 30 AM ET John Williams NYSE WMB Speaks 9 25 AM ET Chicago PMI 9 45 AM ET New Home Sales 10 00 AM ET Consumer Sentiment 10 00 AM ET and the Baker Hughes Rig Count 1 00 PM ET
S P 500 Futures ES Trades Short
Chart courtesy of Stewart Solaka Chicagostock ES F First close 3D pivot since last Friday s close below If they wanted to get bids in the market to whack they got it now Friday s 3D pivot range below market for buyers to defend If Thurs turn good should close above pivot Close below pivot rejects Thurs squeeze
During Wednesday nights Globex session the S P 500 futures ESM19 CME printed a high of 2817 25 a low of 2797 75 and opened Thursday s regular trading hours at 2815 50
After the 8 30 CT bell the ES caught a bid and by 9 30 ahd rallied up to a new high at 2824 25 Unable to break through the 2825 level the futures turned south and traded lower for the rest of the money eventually bottoming out at 2802 50
Going into the afternoon the futures began to come back and rallied back to 2816 75 by 1 30 From there the ES continued to rally into the final hour of trading When the 2 45 cash imbalance reveal showed 617M to buy futures traded 2820 00 then printed 2819 75 on the 3 00 cash close and 2821 25 on the 3 15 futures close
In the end the overall tone of the ES was strong In terms of the days overall trade total volume was slightly lower with 1 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
Original post |
WMB | Treasury Futures Bearish Specs Have Been Squeezed Out | On The Radar
Now that the shorts have been squeezed out of the 10 year note it might top out
Treasury futures bearish specs have finally been squeezed out
Throughout much of 2018 we made an effort to remind our followers that speculators in the 10 year note futures market were holding record net shorts We also pointed out that when everyone is short they will eventually have to exit which puts buying pressure on a market That is exactly what has ensued in the Treasury market in recent months Although the short squeeze wasn t as quick and swift as we thought it might be it didn t disappoint in the end
As Treasuries have rallied the 10 year note yield has fallen from roughly 3 25 in November to nearly a handle lower at 2 35 On its own this is a stunning move but considering the sentiment dominating trade in late 2018 it is even more impressive For instance during this time we ve gone from a Federal Reserve locked into a rate hike campaign in which 2019 was supposed to see two to four notches higher to a complete standstill in tightening monetary policy and even some whispers of rate cuts to loosen the economy s shoe strings We ve seen monetary policy officials turn on a dime and market sentiment turned with it
Not surprisingly with this change in environment traders have also shifted their stance As mentioned speculators held large and complacently bearish positions most of last year In October of 2018 just prior to the Treasury market bottoming and yields peaking large speculators who are assumed to be the smart money due to their large trading size were holding a record net short 740 192 contracts Since then we ve seen this group of traders methodically unwind their bearish positions and are positioned relatively neutral at this stage From here buying and selling will be dominated by speculative opinion not a need to offset existing trades as it has been
In late 2018 investors became queasy at the pace yields were rising and Treasuries were falling Eventually concerns over higher interest rates took their toll on the equity markets Ironically at precisely the time interest rates seemed like a deal breaker for the stock rally they reversed Similarly in today s environment the yield curve inversion T Bill paying higher interest than the 10 year note is attracting attention and being blamed for recent weakness in equities but we feel like the attention is coming at the latter stage in the game as it did in late 2018 In fact the 10 year note is probably putting in some sort of intermediate term high and low yield
A weekly chart of the 10 year note futures suggests there is significant resistance overhead as marked by simple trend lines Also oscillators such as the RSI Relative Strength Index and Williams WMB R suggest the rally is overheated That said tops in Treasuries are typically messy so any speculative plays should leave room for the potential of a temporary spike to run any remaining buy stops If this occurs 126 0 would be a likely target for the June 10 year note futures contract but 128 0 could be seen if there is a fundamental shock to the market such as no deal in China or Brexit complications However we believe the market is due for a corrective break at minimum and if fundamentals turn bearish we would expect to see the 10 year note make its way back toward 118 0 to 116 0 this would mean yields back in the 2 handle
In summary we believe the best trades will be reserved for the Treasury bears in the coming weeks and months but the environment calls for a conservative and well hedged approach to the market
There is substantial risk of loss in trading futures and options
DeCarley Trading a division of Zaner Twitter carleygarnerinfo decarleytrading com1 866 790 TRADE 8723 DeCarleyTrading comHigherProbabilityCommodityTradingBook comSeasonality is already factored into current prices any references to such does not indicate future market action
There is substantial risk of loss in trading futures and options
These recommendations are a solicitation for entering into derivatives transactions All known news and events have already been factored into the price of the underlying derivatives discussed From time to time persons affiliated with Zaner or its associated companies may have positions in recommended and other derivatives Past performance is not indicative of future results The information and data in this report were obtained from sources considered reliable Their accuracy or completeness is not guaranteed Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction Seasonal tendencies are a composite of some of the more consistent commodity futures seasonals that have occurred over the past 15 or more years There are usually underlying fundamental circumstances that occur annually that tend to cause the futures markets to react in similar directional manner during a certain calendar year While seasonal trends may potentially impact supply and demand in certain commodities seasonal aspects of supply and demand have been factored into futures options market pricing Even if a seasonal tendency occurs in the future it may not result in a profitable transaction as fees and the timing of the entry and liquidation may impact on the results No representation is being made that any account has in the past or will in the future achieve profits using these recommendations No representation is being made that price patterns will recur in the future |
WMB | S P Futures Up 592 25 Handles Since December 26th Low | Index Futures Net Changes and Settlements
Foreign Markets Fair Value and Volume
In Asia 7 out of 11 markets closed higher Shanghai Comp 0 94 Hang Seng 0 17 Nikkei 0 05
In Europe 12 out of 13 markets are trading lower CAC 0 29 DAX 0 08 FTSE 0 50
Fair Value S P 3 79 NASDAQ 25 49 Dow 5 72
Total Volume 1 23m ESM 106 SPM traded in the pit
Today s Economic Calendar
Today s economic calendar includes the Challenger Job Cut Report 7 30 AM ET Jobless Claims 8 30 AM ET John Williams NYSE WMB Speaks 9 00 AM ET EIA Natural Gas Report 10 30 AM ET Loretta Mester Speaks 1 00 PM ET Patrick Harker Speaks 1 00 PM ET Fed Balance Sheet Money Supply 4 30 PM ET
S P 500 Futures October 2887 Gap Fill
Chart courtesy of Stewart Solaka Chicagostock ES F Oct 9th gap 2887 filled recovering breakdown from last October Next upside gap 2931 Oct 3rd
During Tuesday nights Globex session the S P 500 futures ESM19 CME printed a high of 2886 25 a low of 2865 25 and opened Wednesday s regular trading hours at 2884 75
The ES was weak coming out of the gate selling off immediately after the 8 30 CT bell and by 9 00 had traded down to 2875 00 After that buy imbalances began to show up and the futures turned around to head higher By 11 00 the ES had topped out at 2889 25 then began to slowly drift lower again
At 12 30 the selling started to pick up and by 1 00 the futures had printed a new low at 2874 25 just 3 ticks below the morning low After a small rally several sell programs triggered pulling the futures down to another new daily low at 2869 00 Once the low was in the MiM flipped from 150 million to sell to 146 million to buy and the ES began to trade higher again
Buyers showed up heading into the close and on the 2 45 cash imbalance reveal the ES traded 2876 00 as the final MiM showed 715 million to buy then traded 2876 50 on the 3 00 cash close and ended the day at 2880 00 on the 3 15 futures close up 13 handles or 0 45 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 higher than Tuesday with 1 2 million futures contracts traded
The ES posted its fifth consecutive advance after earlier climbing as much as 0 7 It has now rebounded 15 in 2019 and is at its highest level since early October It is also less than 3 away from last year s all time high
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 | GLOBAL MARKETS Stocks rally on Wells Wachovia deal dollar gains | U S stocks rally dollar gains on European weakness
Wells Fargo buying Wachovia for 15 1 bln
U S job rolls suffer deepest cut in 5 1 2 years in Sept
By Daniel Bases
NEW YORK Oct 3 Reuters U S stock markets rose on
Friday after a 15 1 billion merger deal between Wells Fargo
Co and beleaguered Wachovia Corp overshadowing
the biggest drop in U S payrolls in 5 1 2 years
The U S economy lost 159 000 non farm jobs last month
Employment contracted for a ninth straight month even before
the labor market experienced the full shock from September s
series of bank troubles
A deteriorating financial backdrop in Europe is giving a
sustained lift the U S dollar even as America s economy is
working its way through the financial turmoil and economic
slowdown
We ve seen weaker data in history but these look pretty
decisively to be the beginning of something worse said Pierre
Ellis senior economist with Decision Economics Inc in New
York
That worse than expected jobs report could tip the balance
for the U S House of Representatives to vote for an historic
700 billion rescue package for banks and other financial firms
burdened by bad mortgage related assets which is contributing
to a global credit crunch An earlier attempt failed on Monday
sending stocks careening lower
Realistically the focus is on the Wells Fargo Wachovia
deal US Treasury Secretary Henry Paulson s been saying all
along he wanted to get private markets involved again said
Justin Wiggs equities trader at Stifel Nicolaus Capital
Markets in Baltimore
Also all indications suggest the bailout bill is
gaining speed in the House which is important because if it
doesn t pass it could get ugly he added
The banking merger news gave a shot of optimism to
investors that business was still getting done in the financial
industry Wells Fargo s deal scuttled Citigroup s attempt to
buy Wachovia s banking assets for 2 16 billion in a government
brokered deal
In the first 30 minutes of trade in New York the benchmark
Dow Jones industrial average was up 141 13 points or
1 35 percent at 10 623 98
The Standard Poor s 500 Index was up 22 47 points
or 2 02 percent at 1 136 75 The Nasdaq Composite Index
was up 43 81 points or 2 22 percent at 2 020 53
European share prices rose ahead of the U S market open
after the merger news and held their levels
The FTSEurofirst 300 index was up 1 4 percent on
the day while MSCI main world equity index
erased earlier losses to rise 0 71 percent
Japan s Nikkei 225 index fell 1 9 percent to a
three year closing low on Friday for its worst week in more
than a year The Wachovia deal was announced after Japan s
markets closed
Government bonds fell on the increased risk tolerances
Benchmark 10 year U S Treasuries fell 13 32 of a points in
price pushing the yield up to 3 67 percent
U S rate futures fully price in a 50 basis point cut to
the Oct 28 29 Federal Open Market Committee meeting to 1 5
percent similar expectations from late on Thursday
In the euro zone government bond futures pared gains as a
result of the U S stock market rally too The liquid two year
Schatz yield which is sensitive to moves in equity
markets was flat at 3 273 percent
DOLLAR RALLY
Europe s weakening economy prompted the European Central
Bank on Thursday to open the door for its first interest rate
cut in more than five years
ECB President Jean Claude Trichet said inflation risks have
eased as financial market turbulence hit the euro zone
A cut in Europe s benchmark interest rate would erode the
attractiveness of the euro which fell 0 54 percent in early
New York trade to 1 3744
The U S dollar is on track for its biggest weekly gain in
16 years up 0 37 percent on the day and holding near a
one year high against a basket of major currencies
A softening of the commodity markets also eased up the
negative pressure on U S stocks but spelled bad news for
emerging markets which derive much of their economic strength
from the export of precious metals grains and energy
Emerging sovereign spreads 11EMJ widened one basis point
while emerging stocks lost 1 31 percent rising from
an earlier two year low
Spot gold prices fell 6 80 or 0 81 percent to
828 20 an ounce
U S light crude fell 0 2 percent to 93 78 a
barrel
Additional reporting by Ellis Mnyandu John Parry Nick
Olivari in New York Ros Krasny in Chicago Glenn Somerville in
Washington Natsuko Waki George Matlock in London |
C | GLOBAL MARKETS Credit crisis fears spark global stock rout | Stocks plunge as European bank actions stir new fears
Yen soars worldwide dollar at 2 1 2 year trough vs yen
Bonds gain on safety bid as global equity markets plunge
Oil falls below 88 a barrel on slowing demand outlook
Adds close of U S markets
By Herbert Lash
NEW YORK Oct 6 Reuters Fears that the credit crisis
will not be contained sparked panic selling across global stock
markets on Monday and sent crude oil prices plunging as
investors rushed for the safety of government bonds and gold
European shares posted their worst day on record and the
Dow slipped below 10 000 points for the first time since
October 2004 as markets reeled on news of the growing toll from
the credit crisis and widespread fears of a looming global
recession
The rescue of two big European banks and a decision by
several European governments to guarantee bank deposits in
emergency moves to prop up investor confidence triggered the
wave of selling spreading from Europe to Asia before engulfing
the United States and Latin America later in the day
The U S stock market cut almost half its losses in the
last hour of the session as traders speculated the sell off
might trigger a coordinated global response to thaw credit
markets The Dow however still closed down at a four year
low
In both Russia and Brazil selling was so heavy that stock
exchange officials halted trading Russia s benchmark RTS index
closed down 19 1 percent its biggest daily percentage
fall in its 13 year history The Bovespa index in
Brazil fell 15 percent before paring losses
We re clearly in the panic zone now We ve tipped over
from bear market to panic said John Schloegel vice president
of investment strategies for Capital Cities Asset Management in
Austin Texas
Contagion from the credit crisis spread in Europe gumming
up interbank money markets as banks remained reluctant to lend
to each other and investors fled to the safety of bonds
Euro zone government debt prices shot to 6 1 2 month highs
and U S Treasuries surged amid mounting worries about the
impact of the world s deepest financial crisis in 80 years
Fears of a global slowdown hammered prices for industrial
metals with benchmark copper tumbling 7 3 percent and
aluminum and zinc prices falling by almost 5 percent
There s a huge concern right now that we are seeing a
global recession said David Meger a metals analyst with
Chicago based Alaron Trading
Crude oil prices fell below 88 a barrel to an eight month
low on fears of a global slowdown Gold futures jumped more
than 5 percent at one point and the yen soared across the board
amid heavy selling of risky positions
The yen was on track for its largest one day gain versus
the dollar since the Asian crisis in 1998 and its best day
against the euro since the launch of the single European
currency in 1999
What s been driving the market more broadly speaking
over the past couple of weeks has been concern about the
disintegration in the European financial system said Todd
Elmer a currency strategist at Citigroup in New York
The Dow had shed more than 700 points and the benchmark S P
500 index was on the verge of sliding below the 1 000 mark
before losses were trimmed in late trade
The Dow Jones industrial average closed down 369 88
points or 3 58 percent at 9 955 50 The Standard Poor s 500
Index shed 42 38 points or 3 86 percent at 1 056 85
The Nasdaq Composite Index fell 84 43 points or 4 34
percent at 1 862 96
It was the S P 500 s lowest close since December 2003
The S P financial sector sub index which had fallen
more than 8 percent closed down 3 9 percent and the S P
energy index closed down 3 6 percent after earlier
falling about 12 percent
In Europe the pan European FTSEurofirst 300 index
fell 7 75 percent to close at 1 004 90 points its biggest
percentage fall ever and eclipsing the 6 3 percent fall
suffered on Sept 11 2001 during the U S terrorist attacks
Banks and commodity shares took most points off the index
with Royal Bank of Scotland which suffered a credit
rating cut from Standard Poor s sliding 20 percent
Barclays losing 14 7 percent and UBS falling
12 8 percent
Valerie Plagnol chief strategist at CM CIC Securities in
Paris called the day s sell off a stampede
Nicole Elliott a technical analyst with Mizuho Securities
in London said it was a free fall with no reason to buy
equities
The outlook is still very bearish and we are nowhere near
the bottom she said
Ireland moved first to offer bank deposit guarantees
followed by four more European governments as the region s
governments struggled to shield banks and bank depositors and
to calm growing fears
German lender Hypo Real Estate became the latest
in a string of banks in Europe that had to be rescued spooking
investors and sending the euro skidding to a 13 month low
against the dollar
The troubled Belgian Dutch financial group Fortis
was rescued in a deal with France s BNP Paribas
Although the cost of borrowing overnight funds on
international money markets remained close to central banks
targets thanks to continued liquidity injections lending was
almost nonexistent across all other maturities
The benchmark 10 year U S Treasury note gained
40 32 to yield 3 45 percent and the 2 year U S Treasury
note rose 12 32 to yield 1 39 percent
The U S dollar jumped to a 13 month high against the euro
and the yen rallied broadly Sentiment soured sharply against
the euro after leaders of Europe s four biggest economies
decided against a coordinated plan at a weekend summit
The dollar rose against a basket of major currencies with
the U S Dollar Index up 0 68 percent at 81 462
The euro fell 1 77 percent at 1 3525 and against
the yen the dollar fell 3 24 percent at 101 89
U S crude settled down 6 07 at 87 81 a barrel
after hitting an eight month low of 87 56 London Brent crude
fell 6 57 to settle at 83 68 a barrel
December gold futures settled up 33 at 866 20 an
ounce in New York
Asian stocks dropped overnight by about 5 percent and the
yen surged to a two year high against the euro as investors
doubted the U S and European response to the financial crisis
could prevent a deeper slump in the global economy
Japan s Nikkei share average slumped 4 25 percent
to mark its lowest close since February 2004 MSCI s index of
Asia Pacific stocks outside Japan slid 6 6
percent to the lowest since December 2005
Reporting by Ellis Mnyandu Chris Reese Wanfeng Zhou and
Frank Tang in New York and Jamie McGeever Jan Harvey Emelia
Sithole Matarise Jane Merriman Joe Brock and George Matlock
in London Writing by Herbert Lash Editing by Leslie Adler |
C | GLOBAL MARKETS U S stocks surge on bargain hunting oil slides | U S stocks surge bargains snapped up in wild session
Dollar gains as weak U S data sparks risk aversion
Oil slips below 70 for first time since August 2007
Adds close of U S markets
By Herbert Lash
NEW YORK Oct 16 Reuters U S stocks jumped in a late
surge on Thursday as investors snapped up battered stocks a day
after Wall Street s worst session since the 1987 crash and oil
slid below 70 a barrel for the first time since August 2007
Gold sank to one month lows below 800 as commodity funds
and investors dumped liquid assets in favor of cash after a
spate of dire U S economic data heightened market
uncertainty
A broad sell off in commodities saw declines in copper
aluminum cocoa and grains with silver and platinum group
metals extending sharp losses to multiyear lows as investors
sold economically sensitive metals on recession fears
Major European stock indexes fell about 5 percent and U S
stocks swung wildly shedding more than 4 percent before midday
after a Federal Reserve survey showed U S Mid Atlantic factory
activity crashed to an 18 year low in October
Earlier signs of a looming worldwide economic slowdown led
Japan s Nikkei to suffer its worst one day losses since
the crash of October 1987 slumping 11 4 percent
U S stocks surged in the last hour of trading a volatile
pattern seen in other recent sessions as investors snapped up
beaten down shares a day before stock options expire
I think this is bargain hunting and there are some
bargains out there Some of these stocks are at historic lows
said Warren Simpson managing director at Stephens Capital
Management in Little Rock Arkansas
Almost all the stocks in the 30 share Dow rose after all
the components were down earlier in the day
The 6 percent decline in crude oil which is now down more
than 50 percent since a July peak of more than 147 a barrel
helped airline and retail stocks
The S P retail index jumped 4 3 percent Wal Mart
Stores which is not part of the index rose 9 1
percent
The Dow Jones industrial average closed up 401 35
points or 4 68 percent at 8 979 26 The Standard Poor s 500
Index gained 38 59 points or 4 25 percent at 946 43
The Nasdaq Composite Index climbed 89 38 points or
5 49 percent at 1 717 71
Advancing shares beat declining stocks on the New York
Stock Exchange by more than 2 to 1 reversing an earlier 3 to 1
ratio of decliners to advancers
Wall Street s choppy session was marked by Citigroup Inc
reporting its fourth straight quarterly loss reflecting
more than 13 billion of loan losses and write downs for
complex and risky debt Citigroup shares fell 2 percent
European stocks ended steeply lower with oil and financial
companies leading the decline on fears of a global recession
The FTSEurofirst 300 index of top European shares
unofficially ended down 5 percent at 858 41 The top drag on
the European index was Total followed by HSBC
Total fell 9 2 percent and HSBC 4 percent
U S Treasury bills and long bonds ended weaker in erratic
trading amid concerns about increased borrowing and debt supply
from the government to finance its massive financial bailout
Two year notes fell 3 32 in price to yield 1 61
percent while benchmark 10 year Treasury notes
fell 5 32 in price to yield 3 97 percent
The dollar rose against the yen and euro in choppy trade as
investors sought shelter in dollar denominated assets
The dollar rose against a basket of major currencies with
the U S Dollar Index up 0 16 percent at 82 40 The euro
fell 0 10 percent at 1 3447 Against the yen the
dollar gained 2 01 percent at 101 59
Oil touched a 15 month low on rising U S inventories and
concerns a possible recession would slow demand further
U S crude settled at 69 85 a barrel down 4 69
after sliding as low as 68 57 the lowest since June 27
2007
In London front month November Brent crude which
expires on Thursday settled at 66 32 a barrel down 4 48
It s still a demand story said Amanda Kurzendoerfer
commodities analyst at Summit Energy in Louisville Kentucky
We saw some very large builds in gasoline and crude oil
for the second week in a row this confirms the fact that
demand is truly weakening in the United States she said
Fear of slowing global demand slammed commodity prices
driving copper prices down almost 8 percent to a 33 month low
while spot gold prices tumbled more than 5 percent
Alan Ruskin chief international strategist at RBS Global
Banking in Greenwich Connecticut said the Philly Fed data
confirmed that the meltdown in financial markets is being
closely followed by a dramatic slide in the economy
We have seen weaker Philly Fed data but only fleetingly at
the depths of recessions Ugly data more risk aversion
Ruskin said
Spot gold fell to a session low of 786 80 an ounce before
bouncing back to 801 10 an ounce at midafternoon down 5 6
percent from Wednesday s nominal close of 848 00
The economic data overshadowed a decline in most of the
short term lending rates overnight indicating that efforts by
the central banks to loosen up credit may be working in the key
short term market
Reporting by Ellis Mnyandu Ellen Freilich and Steven C
Johnson in New York and Joe Brock Peter Blackburn and Jan
Harvey in London Writing by Herbert Lash Editing by James
Dalgleish |
C | UPDATE 1 POLL S Korea Oct export growth seen at 13 mth low | Updates with revised release time
What South Korea s October export import data
When Monday Nov 3 at 6 a m 2100 GMT on Sunday
Annual export import growth seen at 13 month low
By Cheon Jong woo and Lee Eun yul
SEOUL Oct 31 Reuters South Korea s annual export
growth probably hit a 13 month low in October a Reuters poll
shows indicating that a global economic slowdown has started
to hit foreign demand for the country s goods
Sales abroad from Asia s fourth largest economy are
expected to decline further in coming months as the impact of
the financial turmoil is spreading to emerging markets while
developed economies are already sluggish economists said
October s slowdown is just a prelude considering the
global financial crisis faltering developed economies and a
slowdown in China our top export market said Lee Sang jae
an economist at Hyundai Securities
Earlier this month the head of the country s central bank
said South Korea s export growth next year would probably fall
below 10 percent which would mark the lowest rate in at least
seven years
Exports are expected to have grown 14 4 percent in October
from a year earlier the slowest since September 2007 when
overseas sales fell 1 1 percent the Reuters poll of 11
economists showed
That compared with a revised 28 2 percent rise in September
and 18 7 percent growth in August
Annual import growth in October is seen declining to 16 5
percent the weakest since September 2007 from a revised 45 8
percent in September led by lower oil prices
That is expected to help Asia s fourth largest economy post
a trade surplus after reporting deficits for four months in a
row and to provide further support to the won which
was recently lifted by the country s currency swap deal with
the United States
South Korea is seen posting a 1 26 billion trade surplus
in October according to Reuters calculations based on the
poll the first surplus since May
The government has forecast that South Korea will produce
its first annual trade deficit this year since the 1997 Asia
financial crisis as it suffered eight months of trade
shortfalls
South Korea is the first big Asian economy to report
foreign trade data each month providing clues on global
merchandise demand for the rest of Asia
Forecasts for South Korea s October exports and imports
percent change from year earlier
Exports Imports
HSBC 12 0 16 0
DBS Bank 12 0 16 9
SC First Bank 12 1 12 8
Hyundai Securities 12 2 15 2
Taurus Investment Securities 12 5 16 5
SK Securities 14 4 15 6
Solomon Investment Securities 15 5 15 9
Citigroup 17 6 19 1
Hana Daetoo Securities 18 4 20 8
NH Investment Securities 18 5 20 9
Woori Investment Securities 18 5 20 9
Median 14 4 16 5
Low 12 0 12 8
High 18 5 20 9
September 28 2 45 8
Editing by Jonathan Hopfner |
C | FOREX Easing risk aversion cools dollar yen rally | Dollar yen ease after stunning Oct as risk aversion cools
World stocks in positive territory
Global recession fears persist further deleveraging seen
U S election eyed
Adds quotes update prices changes byline
By Veronica Brown
LONDON Nov 3 Reuters The euro and high yielding
currencies rose against the dollar on Monday while the yen
retreated broadly as abating risk aversion lifted stocks
The scale of investors deleveraging was highlighted in
October when the dollar index posted its biggest monthly
percentage gain in 17 years and the euro suffered its largest
monthly fall against the dollar and yen since its 1999 launch
Concern about the prospect of a global recession was
expected to limit gains in riskier assets and offer support to
the low yielding dollar and yen
The problem for the market is that all the trades that
worked well for the past 5 years went badly very quickly said
Michael Rosborough senior global FX strategist at Citigroup in
London
On bounces like this you would expect to see people still
liquidating and using them as an opportunity to lighten up on
positions he added
By 1200 GMT the euro was up 0 9 percent on the day at
1 2845 and rose 1 6 percent to 127 34 yen
Sterling rose around 0 7 percent against the dollar to
1 6190 while the dollar gained 0 7 percent to 99 14 yen The
high yielding Australian and New Zealand dollars also rose
around 1 4 percent versus the U S currency
World stocks as measured by MSCI s all country index rose
0 9 percent on the day
MORE RATE CUTS IN SIGHT
Major events this week include the U S presidential
election on Tuesday with a win by Democrat Barack Obama
generally seen as more favourable for financial markets
Also the European Central Bank the Bank of England and the
Reserve Bank of Australia are all expected to lower interest
rates to protect their struggling economies from the threat of a
looming global recession
Each of them is expected to cut rates by at least half a
percentage point The U S Federal Reserve last week cut its key
rate by half a point to 1 0 percent and the Bank of Japan BoJ
cut its rate to 0 30 percent from 0 50 percent
Analysts said Britain s central bank could cut rates by more
than the half percentage point that is expected
The risks are tilted toward an even larger move as the
upside risks to inflation have diminished significantly
according to resident BoE hawk Tim Besley RBC strategists
said in a note to clients
Emerging giants China and India also cut rates last week
Economic weakness was underscored by a report on euro zone
manufacturing activity which sank in October below record low
levels initially estimated
The Markit Eurozone Purchasing Managers Index for the
manufacturing sector fell to 41 1 the lowest in the survey s
11 year history from September s 45 0 That was below the
flash estimate and economists forecasts of 41 3
The release marks the fifth consecutive month the PMI index
has been below the 50 mark that divides growth from contraction
The U S Institute of Supply Management s factory activity
index due out at 1500 GMT is also expected to show further
weakness Economists expect a reading of 41 5 versus 43 5 in
September
Reporting by Veronica Brown editing by Swaha Pattanaik |
C | ANALYSIS Hungary dodges bullet but seen slow to learn | By Krisztina Than
BUDAPEST Nov 4 Reuters Hungary has averted financial
crisis in the short term with a huge IMF led rescue package but
even this narrow escape has failed to sober up the country to
the need for economic reforms
The worst global financial crisis of 80 years and the
prospect of a recession have failed to galvanise the country s
politicians to find a compromise on reforming social spending a
bloated state sector and the tax system
Without these fundamental changes Hungary will inevitably
remain a laggard of central eastern Europe with anaemic
economic growth an oversized state and the highest interest
rates in the 27 member European Union at 11 50 percent
Neighbouring Slovakia which carried out reforms in time
has seen its growth surge and its imminent euro adoption on Jan
1 has largely shielded its markets from the global crisis
The danger of explosion is over but there is no real chance
for reforming the state and re thinking its redistribution and
regulation role in the coming two years think tank Political
Capital said Problems such as the extremely high tax burden
and social expenses will be choking the Hungarian economy
The crisis has failed to remove deep political rifts and the
Socialist minority government is unlikely to push through any
meaningful reforms before the next elections due in 2010
The October crisis was the fourth time since the end of
communism in 1989 that Hungary had to avert the threat of a
collapse of public finances and stem a flight of foreign capital
from its financial markets and government bonds
Quick fix spending cuts and tax hikes had in the past always
resulted in a soft landing from periodic crises but this time
the global credit crunch threatens along with forecasts of a
protracted economic recession and rising unemployment
A 25 1 billion mega loan from the International Monetary
Fund and the EU and a government promise of faster budget cuts
helped restore some confidence in Hungary s markets
The government pledged to cut the deficit to 2 6 percent of
gross domestic product next year from 3 4 percent this year by
cutting public sector wages and curbing pensions politically
unthinkable prior to the recent financial troubles
An IMF package with EU support will act as a key anchor on
fiscal policy going forward said Gillian Edgeworth analyst at
Deutsche Bank in London
Nonetheless the path will not be an easy one and lowering
debt ratios towards those seen in other emerging markets in
Europe and elsewhere will be a multi year process
REFORM A DIRTY WORD
While the emergency spending cuts could prevent a loosening
of the budget ahead of the next parliamentary elections in 2010
the crisis looks unlikely to prompt Hungarians to rethink the
role of the state and support painful reforms
Prime Minister Ferenc Gyurcsany has failed to complete
changes in the health sector due to high public opposition
A lack of consensus has also prevented downsizing in local
governments which number a staggering 3 200 for a population of
10 million Hungary also has a record of heavy pre election
spending and its tax wedge is among the highest in the EU
Only around 57 percent of the potential workforce is active
and high social transfers make it a viable economic choice not
to work while tax cut plans have now been scrapped
There is a chance that for once the budget will not be
loosened ahead of the election said Citigroup analyst Eszter
Gargyan But there hasn t been a dramatic transformation which
would result in an improvement in the structure of the economy
that would allow the country to escape the trap of low growth
The government reckons the economy will contract by up to 1
percent next year as exports slow real wages fall and bank
lending slows dampening domestic demand
While the smaller opposition parties the Free Democrats and
the Democratic Forum support spending cuts the main opposition
party Fidesz has rejected austerity measures and said it was a
shame Hungary had to turn to the IMF for help
Fidesz which ruled in 1998 2002 and at the moment looks set
to win elections in 2010 blames Gyurcsany for the crisis and it
has not yet proposed a clear economic programme apart from
saying that taxes must be cut to boost economic growth
Political divisions between the two main parties are so deep
that Fidesz walks out of parliament when Gyurcsany speaks
Those divisions and the state s expanded role in society as
the crisis bites may combine to undermine future reforms such as
the downsizing of the public sector Political Capital said
Some analysts are more optimistic saying the tough
short term cuts in pensions and wages and a Free Democrat
initiative to cap spending are positive signs
This could create room for the next government to implement
a budget overhaul including tax reform said Gyorgy Barcza
at K H
Reporting by Krisztina Than editing by Tony Austin |
C | POLL Risk aversion slow exports keep lid on Asian currencies | Asian currencies set to remain sluggish for rest of year
Korean won and Indonesian rupiah to outperform gain 6 7
pct by year end
NZ dollar set for further losses on carry trade aversion
By Susan Fenton
HONG KONG Nov 5 Reuters Asian currencies are likely to
stay sluggish until the end of the year as the continent feels
the impact of a stuttering global economy and investors remain
wary of emerging markets a Reuters poll shows
We re seeing a slight improvement in risk appetite but
we re seeing a lot of negative economic numbers said Irene
Cheung Asia economist at ABN Amro in Singapore The U S
dollar is still the number one
Analysts see 6 7 percent gains for the South Korean won and
the Indonesian rupiah emerging Asia s most bruised currencies
but that would hardly mark a revival both have shed around 15
percent since the collapse of Lehman Brothers in mid September
and trade is likely to remain volatile
Reduced risk appetite meanwhile will continue to drag down
carry trade favourite the New Zealand dollar which is headed
for an 8 percent drop by the end of December
Most other currencies will end the year close to where they
are now but downside pressure will be greater on those of
export oriented Taiwan and Singapore with both forecast to drop
2 percent the poll shows
The Korean won down more than 30 percent this year is
poised to reach 1 200 to the U S dollar by the end of
December from around 1 271 on Wednesday according to the
poll which was taken before the U S presidential election
Seoul s currency swap with the United States and hopes that
falling commodity prices will produce a surplus on its current
account should underpin the won However gains will be capped
by slowing exports and concern that some Korean firms could
become insolvent amid a potential global recession analysts
said
The rupiah is poised to strengthen to 10 000 to the dollar
by the end of the year from around 10 780 on Wednesday as
Indonesia s economy is less export reliant than its neighbours
offering some insulation from a global downturn But analysts
said it remains a risky bet and prone to abrupt shifts in
global risk appetite
INFLATION EASES
Citigroup cites Indonesia South Korea India and the
Philippines as most vulnerable to sudden reversals in fund
flows in emerging Asia
Asian currencies have been weak in the past few months
because people have been reducing their risk said Yiping
Huang Citigroup s Hong Kong based chief Asia economist
While Asia s financial markets have rebounded in the past
two weeks receding risk aversion may not be sustainable if
Western financial markets don t stabilise soon he said
Recent export and manufacturing data suggests the global
downturn is affecting Asia more quickly than expected
Citigroup expects GDP growth in emerging Asia to decelerate to
7 2 percent in 2009 from an estimated 8 9 percent this year but
warns of substantial downside risk
India with its large domestic economy is better placed to
withstand a global slump but a widening current account deficit
and a volatile stock market will weigh on the Indian rupee
which hit a record low of 50 29 to the U S dollar on Oct 27
It is likely to end the year at 49 00 a level it traded at
this week
As inflation has begun to ease Asian central banks
including India and Taiwan have cut interest rates to support
growth adding to currency depreciation
Taiwan s export growth was at a six year low in September
and the Taiwan dollar which hit a 10 year high at 30 26 to
the U S dollar on the election of China friendly President Ma
Ying jeou in March is seen sliding to 33 4 to the U S
dollar by year end from around 32 78 on Wednesday
But currency weakness is unlikely to spur Asian exports
much now that consumer spending is falling in all three big
markets the United States Europe and Japan economists
say
Singapore s export oriented economy is in recession
usually defined as two quarters of falling growth and the
Singapore dollar which has shed 9 percent since July is set to
fall to 1 50 to the U S dollar in the next two months from
around 1 47 on Wednesday
As reduced risk appetite continues to prompt unwinding of
carry trades the New Zealand dollar which has plunged from a
23 year post float high of 0 8215 in March to around 0 6130
on Wednesday is set to fall to 0 5650 by year end
The risks are all to the downside we ll probably see a
bit of a recovery in line with equity markets and risk
appetite but the bigger picture of a global recession will
support the safe haven currencies such as the dollar and yen
and keep bounces in the kiwi limited said Bank of New Zealand
currency strategist Danica Hampton
Additional reporting by Varsha Tickoo in Kuala Lumpur Cheon
Jong woo in Seoul Lee Chyen Yee in Taipei Rosemarie Francisco
in Manila Vithoon Amorn in Bangkok Saikat Chatterjee in
Mumbai Gyles Beckford in Wellington Koh Gui Qing and Kevin
Yao in Singapore
Editing by Jan Dahinten |
WMB | Fed Officials See Prudence of Acting Early to Sustain Growth | Bloomberg Two senior Federal Reserve officials stressed the need to act quickly if the U S economy looked likely to stumble reinforcing bets the central bank could cut interest rates by as much as half a percentage point later this month
Fed Vice Chairman Richard Clarida and New York Fed chief John Williams NYSE WMB buoyed U S stocks with their dovish remarks Thursday afternoon in some of the final comments from central bankers before they enter their blackout period ahead of a July 30 31 policy meeting
U S money markets priced in 41 basis points of easing in July after the two men spoke Traders later wound that back to 35 basis points and the dollar rose after a New York Fed spokeswoman said that Williams s comments had been in the context of an academic speech and were not about potential upcoming policy actions Clarida was discussing the current economic outlook in a television interview
You don t need to wait until things get so bad to have a dramatic series of rate cuts Clarida told Fox Business Network citing economic research We need to make a decision based on where we think the economy may be heading and importantly where the risks to the economy are lined up
His remarks line up with testimony last week by Fed Chairman Jerome Powell and comments a bit earlier in the day from Williams that have cemented expectations for a rate cut Investors weighing their words increased bets Thursday that the Fed will move by a half point at the gathering
While the U S economy is in a good place Clarida said recent global economic data have been softer than expected We ve had mixed data but I do think the global data has been disappointing on the downside he said Disinflationary pressures if anything are more intense than I thought six weeks ago
Clarida the No 2 official at the Fed spoke not long after Williams appeared in New York saying that When you only have so much stimulus at your disposal it pays to act quickly to lower rates at the first sign of economic distress
A New York Fed spokeswoman later clarified that Williams s prepared remarks were an academic speech on 20 years of research It was not about potential policy actions at the upcoming FOMC meeting
Williams answering audience questions after his speech also voiced concern about low inflation expectations calling it somewhat worrisome given the otherwise strong U S economy
My concern is that inflation expectations can get anchored too low and we may be seeing that have seen that in other countries he said
Not all Fed officials are on board with even a quarter point decrease
Atlanta Fed President Raphael Bostic who has previously expressed skepticism of the need to lower rates underlined that view earlier Thursday in Tennessee He rejected the notion that yields in Treasury bonds provide a warning that should cause the Fed to cut
It s important for us to stay grounded in the real economy said Bostic who doesn t vote on policy this year Clarida and Williams are permanent voters
Asked if the Fed can decide to leave rates unchanged this month Clarida replied We go into every meeting looking at the range of options available to us I think our messaging has been quite clear that we want to put in place the appropriate policies to keep the economy in a good place
Updates with Fed funds future pricing in third paragraph |
WMB | Asian Markets Gain on Rate Cuts Hope | Investing com Asian markets rose on Friday in Asia amid growing expectations for aggressive Federal Reserve easing following dovish comments from New York Federal Reserve President John Williams NYSE WMB
China s Shanghai Composite and the Shenzhen Component gained 1 1 and 1 3 respectively by 10 40 PM ET 02 40 GMT Hong Kong s Hang Seng Index also climbed 1 3
Japan s Nikkei 225 jumped 1 8 Data showed today that the country s core consumer price index rose 0 6 in June from a year earlier in line with expectations
Tensions between Japan and South Korea remained in focus after South Korea s Trade Ministry urged Japan to do another round of discussions over Tokyo s tighter export controls
There are major concerns that such a move would have a grave impact on not only the economies in both countries but the global supply chain Lee Ho hyeon a director at South Korea s trade ministry said at a briefing
It is regrettable that the Japanese side repeatedly makes claims that are different from truth he said
We again urge Japan s genuine response to our request for a director level consultations
Down under Australia s ASX 200 traded 0 8 higher
The gains in Asian stocks came after Williams said in a speech that the Fed will act quickly to support the economy as it s better to take preventative measures than to wait for disaster to unfold
However the New York Fed clarified later that Williams speech were not indicative of the central bank s future moves
Dovish Fed policy expectations do provide support for the equity markets which are set to rebound after suffering losses the previous day But factors such as U S China trade issues and tensions over Iran are likely to limit the markets gains said Masahiro Ichikawa senior strategist at Sumitomo Mitsui DS Asset Management in a Reuters report
U S Treasury Secretary Steven Mnuchin and U S Trade Representative Robert Lighthizer spoke with their Chinese counterparts over the phone Lighthizer s office confirmed overnight but gave no other details
Right now we re having principal level calls and to the extent that it makes sense for us to set up in person meetings I would anticipate that we would be doing that Mnuchin said adding that it is possible the call could lead to an in person meeting |
WMB | Oil Prices Jump as U S Navy Shoots Down Iranian Drone | Investing com Oil prices jumped on Friday in Asia after the U S reportedly shot down an Iranian drone in the Strait of Hormuz in what Trump described as defensive action
U S Crude Oil WTI Futures rose 1 6 to 56 2 by 12 02 AM ET 04 02 GMT International Brent Oil Futures jumped 2 to 63 16
Iran had not immediately reacted to the situation Tensions in the Middle East seemed to have slightly eased earlier in the week following reports that the U S and Iran might begin talks soon However Iran later denied the reports
Meanwhile indications that the U S Federal Reserve will cut rates aggressively to support the economy were also behind Friday s gains said Stephen Innes managing partner at Vanguard Markets
New York Federal Reserve President John Williams NYSE WMB said in a speech that the central bank will act quickly to support the economy as it s better to take preventative measures than to wait for disaster to unfold
However the New York Fed clarified later that Williams speech were not indicative of the central bank s future moves
The Fed backstop and the report of the U S Navy shooting down an Iranian drone are providing a modicum of support for oil markets amidst a very bearish landscape he said
Oil prices saw sharp declines earlier in the day amid expectations of rising crude output in the Gulf of Mexico following last week s hurricane in the region
In other news the International Energy Agency is reducing its 2019 oil demand forecast due to a slowing global economy according to its executive director Fatih Birol
China is experiencing its slowest economic growth in the last three decades so are some of the advanced economies if the global economy performs even poorer than we assume then we may even look at our numbers once again in the next months to come Birol told Reuters in an interview
The International Energy Agency IEA is reducing its 2019 oil demand forecast due to a slowing global economy |
WMB | Gold Prices Gained on Middle East Tension Rate Cut Expectations | Investing com Gold prices gained on Friday amid intensifying tension in the Middle East and rising expectations of aggressive Fed easing
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange gained 1 1 to 1 443 45 a troy ounce by 12 45 AM ET 04 45 GMT
Prices of the safe haven metal were initially under pressure earlier in the day amid strong U S data but rebounded following news that the U S military shot down an Iranian drone in the Strait of Hormuz in what President Trump called an act of self defense
It was not known if the drone was armed but a Pentagon spokesman Jonathan Hoffman said that it had closed within a threatening range before being shot down
In other news Federal Reserve President John Williams NYSE WMB said in a speech that the Fed will act quickly to support the economy as it s better to take preventative measures than to wait for disaster to unfold
His speech raised expectations of the Fed to take more aggressive action on policy easing although the New York Fed clarified later that Williams speech were not indicative of the central bank s future moves
The prospect of lower interest rates benefits gold as it lowers the opportunity cost of holding the non yielding asset |
WMB | Forex U S Dollar Inches Up Fed s Williams Comments in Focus | Investing com The U S dollar inched up on Friday in Asia even after Federal Reserve officials bolstered expectations of an aggressive rate cut this month
The U S dollar index that tracks the greenback against a basket of other currencies was up 0 1 to 96 507 by 1 20 AM ET 05 20 GMT
New York Federal Reserve President John Williams NYSE WMB said in a speech that the Fed will act quickly to support the economy as it s better to take preventative measures than to wait for disaster to unfold
The New York Fed clarified later that Williams speech were not indicative of the central bank s future moves but investors still took his remarks as a dovish signal from the central bank
Separately Fed Vice Chair Richard Clarida told Fox Business Network the central bank might have to act early and not wait until things get so bad
Data showed that business activity in the Mid Atlantic has jumped to 21 8 in July which is its strongest level in a year according to the Philadelphia Federal Reserve
A figure above zero suggests the region s business activity is growing
Meanwhile a separate report showed that while unemployment claims rose slightly last week the labor market still remained strong Initial jobless claims rose 8 000 to a seasonally adjusted 216 000 for the week ended July 13 the Labor Department said while data for the prior week was revised down by 1 000
The USD JPY pair was up 0 3 to 107 61
The AUD USD pair and the NZD USD pair both dropped 0 1 |
WMB | Fed Officials Shake Markets Amid Debate on How Deep to Cut Rates | Bloomberg Two senior Federal Reserve officials stressed the need to act quickly if the U S economy looked likely to stumble reinforcing bets the central bank could cut interest rates by as much as half a percentage point later this month
Fed Vice Chairman Richard Clarida and New York Fed chief John Williams buoyed stocks with their dovish remarks Thursday afternoon in some of the final comments from central bankers before they enter their blackout period ahead of a July 30 31 policy meeting
Equities rose in Asia on Friday along with European futures buoyed by the prospect of a more aggressive policy move by the Fed S P 500 Index futures also gained building on the U S gains seen late on Thursday despite the New York Fed trying to walk back the comments from Williams NYSE WMB
U S money markets priced in 41 basis points of easing in July after the two men spoke Traders later wound that back after a New York Fed spokeswoman said that Williams s comments had been in the context of an academic speech and were not about potential upcoming policy actions Clarida was discussing the current economic outlook in a television interview
You don t need to wait until things get so bad to have a dramatic series of rate cuts Clarida told Fox Business Network citing economic research We need to make a decision based on where we think the economy may be heading and importantly where the risks to the economy are lined up
Clarida s remarks line up with testimony last week by Fed Chairman Jerome Powell and comments a bit earlier in the day from Williams that have cemented expectations for a rate cut Investors weighing their words increased bets Thursday that the Fed will move by a half point at the gathering
While the U S economy is in a good place Clarida said recent global economic data have been softer than expected We ve had mixed data but I do think the global data has been disappointing on the downside he said Disinflationary pressures if anything are more intense than I thought six weeks ago
Clarida the No 2 official at the Fed spoke not long after Williams appeared in New York saying that When you only have so much stimulus at your disposal it pays to act quickly to lower rates at the first sign of economic distress
A New York Fed spokeswoman later clarified that Williams s prepared remarks were an academic speech on 20 years of research It was not about potential policy actions at the upcoming FOMC meeting
Williams answering audience questions after his speech also voiced concern about low inflation expectations calling it somewhat worrisome given the otherwise strong U S economy
My concern is that inflation expectations can get anchored too low and we may be seeing that have seen that in other countries he said
Not all Fed officials are on board with even a quarter point decrease
Atlanta Fed President Raphael Bostic who has previously expressed skepticism of the need to lower rates underlined that view earlier Thursday in Tennessee He rejected the notion that yields in Treasury bonds provide a warning that should cause the Fed to cut
It s important for us to stay grounded in the real economy said Bostic who doesn t vote on policy this year Clarida and Williams are permanent voters
Asked if the Fed can decide to leave rates unchanged this month Clarida replied We go into every meeting looking at the range of options available to us I think our messaging has been quite clear that we want to put in place the appropriate policies to keep the economy in a good place |
WMB | Forex Dollar Stabilizes After Williams Inflames Rate Hopes | Investing com The U S dollar was consolidating at lower levels Friday morning in Europe and was on track to end the week roughly where it started after a speech from New York Federal Reserve President John Williams revived hopes of a large interest rate cut at the Fed s next policy meeting
It s better to take preventative measures than to wait for disaster to unfold Williams NYSE WMB told a central banking conference When you only have so much stimulus at your disposal it pays to act quickly to lower rates at the first sign of economic distress
The comment revived hopes that the Fed will cut its Fed funds rate by 50 basis points rather than the more modest 25 basis point consensus view at the Federal Open Market Committee meeting on July 30 31 Speeches later by the Fed s Eric Rosengren and James Bullard will give further clues as to whether Williams s is the majority view
The comments knocked the dollar index which tracks the greenback against a basket of developed market currencies down by around half a percent late on Thursday but it recovered overnight to trade at 96 537 by 3 05 AM ET 0705 GMT
The prospect of easier U S monetary policy has given emerging market central banks more confidence to cut their own interest rates without undermining their currencies Indonesia South Korea and South Africa all cut their key rates by 25 basis points on Thursday but the rupiah hit a new 15 month high against the dollar while the rand hit a seven month high
In Europe the euro and sterling also both profited from Williams comments the British pound rising above 1 25 again after touching a two year low below 1 24 earlier this week The euro rose as high as 1 1282 before retreating to 1 1263 with lower than expected German producer prices in June reminding traders of action from the European Central Bank at its governing council meeting next week
Bloomberg reported on Thursday that the ECB had begun a review of how it defines its inflation target something that could ultimately lead to its monetary policy staying looser for longer |
WMB | Asia stocks firm as Fed props up rate cut expectations | By Ritvik Carvalho LONDON Reuters Global stocks rose on Friday as investors firmed up bets on a U S interest rate cut at the end of July after a speech by a top Federal Reserve official further cemented expectations for one fuelling appetite for risky assets and capping the dollar European shares opened higher across the board with the pan European STOXX 600 index gaining 0 7 in early trade Britain s FTSE 100 index gained 0 6 and Germany s DAX rose 0 75 In oil markets crude surged after the United States said its navy had destroyed an Iranian drone in the Strait of Hormuz a major chokepoint for global crude flows raising concerns about supply disruptions out of the region Iran said all its drones had returned safely to base and there was no sign of a major escalation in the Gulf Comments by New York Fed President John Williams NYSE WMB on Thursday made it virtually certain in the markets view that the Fed would cut interest rates by at least 25 basis points at its July 30 31 policy meeting and also revived expectations of an even deeper 50 bps reduction Financial markets reacted quickly with Fed fund rate futures at one point pricing in an almost 70 chance of a 50 basis point cut The odds eased to around 40 after the New York Fed said William s speech had not been about immediate policy direction MSCI s All Country World Index which tracks shares in 47 countries was having its best day in over two weeks up nearly half a percent on the day It was however still on track to break a six week streak of weekly gains E mini futures for the S P 500 index were 0 3 higher indicating a higher opening on Wall Street later in the day Despite a rather lackluster earnings season so far investors are focusing on the prospect of a considerably easier monetary policy which is why we see stocks ready to open higher this morning said Konstantinos Anthis head of research at ADSS WILL RATE CUT SUFFICE MSCI s broadest index of Asia Pacific shares outside Japan was up 1 bouncing back from the previous day s losses while Japan s Nikkei advanced 2 Elsewhere in Asia the Shanghai Composite Index rose 0 8 Australian stocks added 0 75 and South Korea s KOSPI gained 1 4 For the week the MSCI ex Japan index climbed a modest 1 as riskier assets were partly capped by U S President Donald Trump s reiteration of his threat to impose further duties on Chinese imports The two sides resumed talks recently to seek an end to a year long trade war that has rattled financial markets and slowed global growth But most analysts do not expect an agreement any time soon with some predicting a strong risk of further tariff escalation Although central banks around the world have embarked on policy easing in a bid to support their respective economies investors are left to ponder whether the stimulus will be enough to offset the effects from heightened U S China trade tensions said Han Tan market analyst at FXTM The dollar index against a basket of six major currencies stood about 0 1 higher at 96 875 after losing roughly 0 5 overnight to a two week low of 96 671 in the wake of the comments from the Fed s Williams The euro was 0 15 lower at 1 1259 after climbing 0 45 the previous day U S Treasury yields were lower across the board The 2 year yield was at 1 7894 after touching a two week low of 1 7520 The 10 year yield declined to a 10 day low of 2 023 and was last at 2 0465 In commodities U S crude oil futures reversed a large part of the previous day s deep losses briefly rising 1 45 to 56 10 per barrel before easing back to 55 81 up 0 9 Crude rallied after the reports on the Iranian drone Oil prices had fallen on Thursday amid expectations that output would rise in the Gulf of Mexico as operations resumed following last week s hurricane Spot gold eased 0 5 as investors locked in profits after bullion surpassed 1 450 an ounce for the first time in more than six years on dovish Fed signals and Middle East tension |
WMB | The Turning Point Master | Milton Berg s distinguished career includes stints with the titans of the hedge fund world including George Soros Stanley Druckenmiller and Michael Steinhardt In this conversation with Real Vision co founder Grant Williams NYSE WMB Berg explains how he developed a framework for spotting major market tops and bottoms He provides examples from history speaks to some of the signals he s looking at right now and warns that many investors ignore turning points at their own peril Filmed on July 10 2019 in New York and published on Real Vision on July 12 2019 |
BMY | New Strong Buy Stocks For June 28th | Here are 5 stocks added to the Zacks Rank 1 Strong Buy List today Acuity Brands Inc AYI is a producer distributor and designer of a range of lighting solutions for commercial and residential markets across several countries The Zacks Consensus Estimate for its current year earnings has improved by 0 2 over the last 30 days Banco Bradesco S A BBD offers a range of financial and banking services and products to individual and business customers The Zacks Consensus Estimate for its current year earnings has improved by 3 3 over the last 30 days Bristol Myers Squibb Company NYSE BMY BMY is a global specialty biopharmaceutical company with focus on discovering developing and delivering innovative treatments for serious diseases It has seen the Zacks Consensus Estimate for its current year earnings climb 0 1 over the last 30 days Core Mark Holding Company Inc CORE is one of the largest broad line full service wholesale distributors of packaged consumer products to the convenience retail industry in North America It has seen the Zacks Consensus Estimate for its current year earnings climb 0 6 over the last 30 days Fibrocell Science Inc FCSC develops first in class treatments for rare and serious skin and connective tissue diseases with high unmet medical needs The Zacks Consensus Estimate revision for its current year earnings was a positive 14 2 over the last 60 days View the entire |
BMY | GW Pharmaceuticals Stock Up On Positive Epidiolex Data | GW Pharmaceuticals plc s NASDAQ GWPH shares were up 6 2 after the company announced positive data from the first phase III study on its lead cannabinoid candidate Epidiolex for the treatment of Lennox Gastaut syndrome LGS The randomized double blind placebo controlled study evaluated Epidiolex in patients aged 2 years to 55 years with a confirmed diagnosis of drug resistant LGS currently uncontrolled on one or more concomitant anti epileptic drugs AEDs Patients n 171 were randomized into two arms Epidiolex 20mg kg day or placebo each receiving the current AED treatment Data from the study revealed a statistically significant reduction in the monthly frequency of drop seizures compared to placebo when assessed over 14 weeks of treatment thereby meeting the primary endpoint In addition Epidiolex was generally well tolerated Meanwhile the company has completed patient enrolment in the second phase III dose ranging study on Epidiolex for the treatment of LGS The study has three treatment arms Epidiolex 20mg kg day Epidiolex 10mg kg day and placebo Top line results from the study are expected around the end of the third quarter 2016 LGS a rare kind of epilepsy starts showing symptoms in patients between 3 5 years of age According to information provided by the company there are about 14 000 18 500 individuals suffering from LGS in the U S and 23 000 31 000 people with the disease in Europe We remind investors that in Mar 2016 the company announced positive data from a phase III study on Epidiolex for the treatment of Dravet syndrome The company is now looking to submit a New Drug Application in the U S for the candidate in the first half of 2017 In the U S Epidiolex enjoys Fast Track designation for the treatment of Dravet syndrome and Orphan drug status for the treatment of Dravet syndrome LGS tuberous sclerosis complex and infantile spasms The candidate also enjoys Orphan Designation in the EU for the treatment of Dravet syndrome Epidiolex is also being evaluated in a phase III study for the treatment of tuberous sclerosis complex Further the company expects to initiate a phase III study on Epidiolex in infantile spasms in the fourth quarter of this year We expect investor focus to remain on further updates by the company on the development of Epidiolex GW Pharma currently carries a Zacks Rank 3 Hold Some better ranked stocks in the health care sector include ANI Pharmaceuticals Inc NASDAQ ANIP Bristol Myers Squibb Company NYSE BMY and Pfizer Inc NYSE PFE each sporting 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 |
BMY | Endo s Stock Gains On Vasostrict s New Patent Approval | Endo International plc s NASDAQ ENDP shares jumped 18 3 after the company announced that the U S Patent and Trademark Office PTO has issued a new patent U S Patent No 9 375 478 for a drug Vasostrict vasopressin injection USP 20 units mL belonging to one of its operating companies Par Pharmaceutical
The patent which has an expiration date of Jan 30 2035 has been submitted to the FDA s Approved Drug Products with Therapeutic Equivalence Evaluations commonly known as the Orange Book
We note that this Orange Book listing will require a generic drug maker seeking FDA approval for a generic version of Vasostrict prior to the expiration of the patent to notify Par of its abbreviation new drug application ANDA Any ANDA filer whose application was not received prior to the submission of the new patent information would be subject to a 30 month stay of marketing approval by the FDA upon the initiation of Hatch Waxman litigation by Par against the ANDA filer
Vasostrict is the first and only vasopressin injection USP product to be approved by the FDA to increase blood pressure in adults with vasodilatory shock e g post cardiotomy or sepsis who remain hypotensive despite fluids and catecholamines
We remind investors that Endo acquired Par Pharmaceutical in Sep 2015 The acquisition boosted Endo s generics portfolio and pipeline
Endo is a Zack Rank 5 Strong Sell stock Some better ranked stocks in the health care sector include ANI Pharmaceuticals Inc NASDAQ ANIP Bristol Myers Squibb Company NYSE BMY and Retrophin Inc NASDAQ RTRX All three stocks sport a Zacks Rank 1 Strong Buy |
BMY | Infinity Regains Duvelisib Rights Announces Restructuring | Infinity Pharmaceuticals Inc NASDAQ INFI announced that AbbVie Inc NYSE ABBV has exercised its right to terminate the collaboration with the company for the development and commercialization of duvelisib Both companies had entered into discussions related to the restructuring of the partnership which failed to arrive at a mutually attractive financial structure for the continuation of the collaboration
With the termination of this agreement Infinity has regained worldwide rights to duvelisib Neither Infinity nor AbbVie will owe future financial obligations to each other The termination of the agreement will be effective from Sep 23 2016
We note that Infinity had entered into a collaboration and license agreement with AbbVie to jointly develop and commercialize duvelisib for oncology indications in Sep 2014
Currently Infinity is exploring strategic options for the duvelisib program that will support the submission of global regulatory applications and commercialization of duvelisib Infinity will continue to focus its efforts on filing a new drug application for duvelisib with the FDA in the fourth quarter of 2016
The company s filing strategy includes the incorporation of data from both DUO and DYNAMO studies While DUO is a randomized phase III monotherapy study in patients with relapsed refractory chronic lymphocytic leukemia CLL DYNAMO is a single arm phase II monotherapy study in patients with refractory indolent non Hodgkin lymphoma iNHL
Infinity plans to seek feedback from the FDA regarding the DYNAMO data which was announced earlier this month In addition the company expects to report top line data from the DUO study based on the results of an interim analysis in the third quarter of 2016
Additionally the company plans to focus on SYNCHRONY a combination study on duvelisib plus Gazyva in CLL or small lymphocytic lymphoma patients who were previously treated with a Bruton s tyrosine kinase inhibitor and FRESCO a combination study in patients with relapsed refractory follicular lymphoma planned to evaluate the potential of duvelisib to replace chemotherapy
The company intends to discuss with the FDA the potential for FRESCO to serve as a confirmatory study for full approval in follicular lymphoma if duvelisib receives an accelerated approval based on the DYNAMO study
Announces Restructuring Plan
Infinity announced that it also plans to eliminate 100 positions across the organization representing approximately 58 of the company s workforce Earlier this month the company had said that it will close down its discovery research organization impacting 21 of the company s workforce or 46 positions
The company s restructuring plans also include closing BRAVURA a phase III study on duvelisib in patients with relapsed iNHL and CONTEMPO a phase Ib II study on duvelisib in treatment na ve patients with follicular lymphoma Moreover Infinity will not proceed with the phase Ib II study on duvelisib in combination with Venclexta
The company currently expects to incur severance benefit and related costs of approximately 8 million with future cash outlays of 5 million expected to be paid at end 2016 and up to approximately 3 million expected to be paid at end 2017 The company currently expects clinical trial and related development close down costs between 5 million and 7 million and expects the related cash outlays to be paid during the end of this year
The company expects this restructuring to be substantially completed by Jul 15 2016 and to be fully completed by Dec 31 2016
Considering that Infinity is highly dependent on successful development of duvelisib for growth the termination of the duvelisib agreement with AbbVie is a huge setback for Infinity The company is now solely responsible for the development of the candidate and has to bear all related costs
Infinity currently carries a Zacks Rank 3 Hold A couple of better ranked stocks in the health care sector are Bristol Myers Squibb Company NYSE BMY and Pfizer Inc NYSE PFE both sporting a Zacks Rank 1 Strong Buy |
BMY | Esperion ESPR Offers Updates On LDL Lowering Candidate | Esperion Therapeutics Inc NASDAQ ESPR announced updates on a clinical development program as well as its regulatory plans for lead candidate bempedoic acid ETC 1002 for the treatment of patients with elevated low density lipoprotein cholesterol LDL C The program includes pivotal phase III efficacy and safety studies and a planned global cardiovascular outcomes trial CVOT in patients with elevated LDL C levels who are unable to tolerate statins statin intolerance These studies are expected to be initiated in the fourth quarter of 2016 While the pivotal phase III efficacy studies will assess patients with elevated LDL C levels including statin intolerant patients the CVOT will evaluate the candidate in statin intolerant patients who are at high risk of cardiovascular CV diseases Esperion stated that the planned efficacy studies and the ongoing long term safety and tolerability study 1002 040 will support the submission of a marketing application for bempedoic acid in patients with elevated LDL C including statin intolerant patients in the EU in 2019 In addition the CVOT will support the submission of a regulatory application for risk reduction of CV diseases in statin intolerant patients in the EU in 2022 However the FDA has not provided any clarity on a regulatory pathway for an LDL C lowering indication in statin intolerant patients Esperion plans to submit a New Drug Application NDA in the U S for a CV risk reduction indication on the basis of the successful completion of the CVOT in 2022 Meanwhile Esperion provided an update on its financial outlook for 2016 Full year net cash used in operating activities are expected in the range 65 75 million previous expectations 80 90 million Cash and cash equivalents and investment securities are expected to be approximately 220 million prior guidance 200 million at Dec 31 2016 We remind investors that the cholesterol management market is presently dominated by drugs such as Praluent Repatha Mevacor and Pravachol among others Esperion currently carries a Zacks Rank 3 Hold Some better ranked stocks in the health care sector include ANI Pharmaceuticals Inc NASDAQ ANIP Bristol Myers Squibb Company NYSE BMY and Pfizer Inc NYSE PFE each sporting 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 |
BMY | These Large Pharmaceutical Stocks Should Be On Your Radar | The assigns a rating to each of the 265 industries based on their average Zacks Rank An Industry with a larger percentage of Zacks Rank 1s Strong Buy and 2s Buy will have a better Zacks Industry Rank than one with a larger percentage of Zacks Rank 4s Sell and 5s Strong Sell
Finding the best industries is often the key to success in investing Our research shows that the industries ranked in the top half outperform those in the bottom half by a factor of two to one so putting your money to work in the best industries gives you a big advantage
One space that should be on your radar right now is the The space has moved up 11 Zacks Industry Ranks in the last week Stocks within the large pharmaceuticals sector sit in the top 10 of all 265 industries ranked on the Zacks Industry Rank so they look like a superior investment choice right now
The large cap pharma industry is ranked as the 23rd best industry out of the 265 industries covered by Zacks In the last week the industry has seen its average Zacks Rank improve and it has gone from an average Zacks Rank of 2 67 to a rank of 2 53
Best of the Group
There are several promising choices in this industry right now such as Bristol Myers NYSE BMY Pfizer NYSE PFE and Bayer OTC BAYRY all of which have either a 1 Strong Buy or 2 Buy on the Zacks Rank
Want the latest recommendations from Zacks Investment Research Today you can download 7 Best Stocks for the Next 30 Days |
BMY | Horizon HZNP Stock Up On Ravicti Label Expansion Filing | Horizon Pharma plc NASDAQ HZNP announced that it has filed a supplemental new drug application with the FDA seeking label expansion for Ravicti glycerol phenylbutyrate oral liquid The company is looking to expand the age range for chronic management of urea cycle disorders UCDs in adult and pediatric patients from two months of age to two years of age and older The company s shares jumped 6 9 on the news
Currently Ravicti is approved in the U S for use as a nitrogen binding agent for chronic management of adult and pediatric patients greater than two years of age with UCDs who cannot be managed by dietary protein restriction and or amino acid supplementation
We are encouraged by Horizon Pharma s efforts to expand Ravicti s label further We note that Ravicti became a part of the company s portfolio as a result of the May 2015 Hyperion Therapeutics acquisition
Ravicti recorded sales of 37 1 million in the first quarter of 2016 Label expansion would boost the drug s sales further
Additionally Horizon Pharma partnered with Clinigen Group s Idis Managed Access division to initiate a Managed Access Program MAP in select European countries for eligible individual patients living with UCDs The MAP will allow healthcare professionals to access Ravicti while Horizon Pharma works through its country by country plan to make Ravicti commercially available in Europe We note that Ravicti was approved in Europe in Nov 2015
Horizon Pharma is currently a Zacks Rank 3 Hold stock Some better ranked stocks in the health care sector include ANI Pharmaceuticals Inc NASDAQ ANIP Retrophin Inc NASDAQ RTRX and Bristol Myers Squibb Company NYSE BMY All three stocks sport a Zacks Rank 1 Strong Buy |
WMB | Quantative Easing Analysis Why It May Not Work | Since the beginning of the year the market has rallied sharply That rally has been fueled by commentary from both the Trump Administration and the Federal Reserve of the removal of obstacles which plagued stocks in 2018 The chart below is an abbreviated and a bit sarcastic version of events
While the resolution of the trade war is certainly beneficial to the economy as it removes an additional tax on consumers the biggest support for the market has been the assumption the Fed will return to a much more accommodative stance
The Fed will be patient with future rate hikes meaning they are now likely on hold as opposed to their forecasts which still call for two to three more rate hikes in 2019 and more in 2020
The pace of QT or balance sheet reduction will not be on autopilot but instead driven by the current economic situation and tone of the financial markets It is expected the Fed will announce in March that QT will end and the balance sheet will stabilize at a much higher level
QE is a tool that WILL BE employed when rate reductions are not enough to stimulate growth and calm jittery financial markets
In mid 2018 the Federal Reserve was adamant a strong economy and rising inflationary pressures required tighter monetary conditions At that time they were discussing additional rate hikes and a continued reduction of their 4 Trillion balance sheet
All it took was a rough December pressure from Wall Street s member banks and a disgruntled White House to completely flip their thinking
The Fed isn t alone
China has launched its version of Quantitative Easing to help prop up its slowing economy
Lastly the ECB downgraded Eurozone growth and there is a likelihood that not only will they not raise rates this year they will also extend the TLTRO program which is the Targeted Longer Term Refinancing Operations scheme which gives cheap loans to struggling Eurozone banks
Think about this for a moment
For a decade the global economy has been growing Market participants are crowing about the massive surge in asset prices as clear evidence of the strength of the economy
However such hasn t been the case As I discussed previously for the Fed China and the ECB are signaling their concerns about economic reality which as the data through the end of December shows the U S economy is beginning to slow
As shown over the last six months the decline in the LEI has been sharper than originally anticipated Importantly there is a strong historical correlation between the 6 month rate of change in the LEI and the EOCI index As shown the downturn in the LEI predicted the current economic weakness and suggests the data is likely to continue to weaken in the months ahead
More importantly monetary policy never really impacted the economy as prolifically as was anticipated following the financial crisis The two 4 panel charts below show the percentage change in the Fed s balance sheet from 2009 present 309 versus the total percentage change in various economic components I have also included the amount of stimulus required to create those changes
First it is interesting to note that despite headlines of strong employment growth the percentage of people considered Not In Labor Force or NILF has grown more than full time employment Of course and not surprisingly the biggest beneficiary of monetary policy was corporate profits
Secondly where monetary policy did work was lifting asset prices as shown in the chart and table below
The table above shows that QE1 came immediately following the financial crisis and had an effective ratio of about 1 6 1 In other words it took a 1 6 increase in the balance sheet to create a 1 advance in the S P 500 However once market participants figured out the transmission system QE2 and QE3 had an almost perfect 1 1 ratio of effectiveness The ECB s QE program which was implemented in 2015 to support concerns of an unruly Brexit had an effective ratio of 1 5 1
Clearly QE worked well in lifting asset prices but not so much for the economy as shown above In other words QE was ultimately a massive wealth transfer from the middle class to the rich which has created one of the greatest wealth gaps in the history of the U S not to mention an asset bubble of historic proportions
But Will It Work Next Time
This is the single most important question for investors
The current belief is that QE4 will be implemented at the first hint of a more protracted downturn in the market However as we noted above QE will likely only be employed when rate reductions aren t enough Such was noted in 2016 by David Reifschneider deputy director of the division of research and statistics for the Federal Reserve Board in Washington D C released a staff working paper entitled Gauging The Ability Of The FOMC To Respond To Future Recessions
The conclusion was simply this
Simulations of the FRB US model of a severe recession suggest that large scale asset purchases and forward guidance about the future path of the federal funds rate should be able to provide enough additional accommodation to fully compensate for a more limited ability to cut short term interest rates in most but probably not all circumstances
In other words the Federal Reserve is rapidly becoming aware they have become caught in a liquidity trap keeping them unable to raise interest rates sufficiently to reload that particular policy tool There are certainly growing indications as discussed recently the U S economy maybe be heading towards the next recession
Interestingly David compared three policy approaches to offset the next recession
Fed funds goes into negative territory but there is no breakdown in the structure of economic relationships
Fed funds returns to zero and keeps it there long enough for unemployment to return to baseline
Fed funds returns to zero and the FOMC augments it with additional 2 4 Trillion of QE and forward guidance
In other words the Fed is already factoring in a scenario in which a shock to the economy leads to additional QE of either 2 trillion or in a worst case scenario 4 trillion effectively doubling the current size of the Fed s balance sheet
Here is what is interesting as reported by Jennifer Ablan
So 2 years ago David lays out the plan and yesterday Williams NYSE WMB reiterates that plan
Does the Fed see a recession on the horizon Is this the reason for the sudden change in views by Powell in recent weeks
Maybe
But there is a problem with the entire analysis The effectiveness of QE and zero interest rates is based on the point at which you apply these measures This was something I pointed out previously
In 2008 when the Fed launched into their accommodative policy emergency strategy to bail out the financial markets the Fed s balance sheet was only about 915 Billion The Fed Funds rate was at 4 2
If the market fell into a recession tomorrow the Fed would be starting with roughly a 4 Trillion balance sheet with interest rates 2 lower than they were in 2009 In other words the ability of the Fed to bail out the markets today is much more limited than it was in 2008
But there is more to the story than just the Fed s balance sheet and funds rate The entire backdrop is completely reversed The table below compares a variety of financial and economic factors from 2009 to present
The critical point here is that QE and rate reductions have the MOST effect when the economy markets and investors have been blown out deviations from the norm are negatively extended confidence is hugely negative
In other words there is nowhere to go but up
Such was the case in 2009 Even without Federal Reserve interventions it is highly probable that the economy would have begun a recovery as the normal economic cycle took hold No the recovery would not have been as strong and asset prices would be about half of where they are today but an improvement would have happened nonetheless
The extremely negative environment that existed particularly in the asset markets provided a fertile starting point for monetary interventions Today as shown in the table above the economic and fundamental backdrop could not be more diametrically opposed
This suggests that the Fed s ability to stem the decline of the next recession or offset a financial shock to the economy from falling asset prices may be much more limited than the Fed and most investors currently believe
The Fed s hope has always been that at some point they would be able to wean the economy off of life support and it would operate under its own strength This would allow the Fed to raise interest rates back to more normalized levels and provide a policy tool to offset the next recession However given the Fed has never been able to get rates higher than the last crisis it has only led to bigger booms and busts in recent decades
Summary
It has taken a massive amount of interventions by Central Banks to keep economies afloat globally over the last decade and there is rising evidence that growth is beginning to decelerate
While another 2 4 Trillion in QE might indeed be successful in further inflating the third bubble in asset prices since the turn of the century there is a finite ability to continue to pull forward future consumption to stimulate economic activity In other words there are only so many autos houses etc which can be purchased within a given cycle There is evidence the cycle peak has been reached
If I am correct and the effectiveness of rate reductions and QE are diminished due to the reasons detailed herein the subsequent destruction to the wealth effect will be far larger than currently imagined There is a limit to just how many bonds the Federal Reserve can buy and a deep recession will likely find the Fed powerless to offset much of the negative effects
If more QE works great But as investors with our retirement savings at risk what if it doesn t |
WMB | Gold And Political Theater Is The Tail Wagging The Dog | As the old saying goes politics is a show business for ugly people Fair enough but what does it have to do with gold Let s jump right in and find out
There Is No Trade War
Economic reports are rarely fun But when we read the latest US trade report we could not help but laugh It turns out that the US goods and services deficit was 59 8 billion in December up 9 5 billion or almost 19 percent from 50 3 billion in November For 2018 the goods and services deficit was 621 0 billion an increase of 68 8 billion or 12 5 percent from 2017 In other words despite Trump s America First policies and trade wars including tariffs aimed at shrinking the trade deficit the US trade gap has widened Actually it surged to a 10 year high last year as one can see in the chart below As if that was not enough the shortfall with China hit a record peak Isn t that funny
Well it s a laugh through tears We have two options here The first is that Trump s administration is economically illiterate As students of economics learn a trade deficit simply reflects that a country chooses to consume more than it produces So it must import the difference from the rest of the world A trade deal will not help here If the Chinese buy more US goods the bilateral trade with China will shrink But the US total trade deficit will not decline unless Americans reduce total demand by saving more
Let s reiterate to make it crystal clear The real reason why the US has massive trade deficit is not the foreign import barriers but the fact that Americans are spending more than they produce They can do that because foreigners lend them money to finance their net purchases and because the US dollar is an international reserve currency eagerly accepted by and sought after other countries both to finance their international trade needs and to maintain their reserve positions in So please note another funny thing the US households benefit as a whole from trade deficits After all they can consume more than they produce They get real stuff in exchange for their greenbacks Despite blaming China its government actually subsidizes American consumers
But there is also the second option more probable There is no trade war at all Yes you heard it well It s just a smokescreen or a political theater The whole US China dispute is not about trade deficits but about the dominance in supply chains Uncle Sam does not care about its trade imbalance after all the tax cuts boosted consumer spending while the increased federal deficit exacerbates the deficit of savings the aim of tariffs was rather to induce China to end stealing US technology So gold investors should not focus on trade deficits and the whole buzz around them it s just a show for the public
Interest Rates Are Not At Neutral
The US monetary policy is another great spectacle Yesterday John Williams the New York Fed President said that the federal funds rate is neither accommodative nor contractionary so there is no hurry in hiking interest rates In a speech at the Economic Club of New York he said
My current estimate for r star is 0 5 percent so when you adjust for inflation that s near 2 percent the current federal funds rate of 2 4 percent puts us right at neutral
Well we do not know how Mr Williams NYSE WMB calculates the neutral rate but he definitely does not use the Atlanta Fed s estimations of a Taylor Rule As you can see in the chart below the prescription is much higher indicating that the federal funds rate should be around 4 percent to be neutral
We are of course aware that there are many Taylor Rule prescriptions but virtually all of them suggest that the Fed s monetary policy is still accommodative as one can see in the table below Despite different inputs used in calculations all methods indicate that the federal funds rate should be higher
So does Williams not know Taylor s rule Is he economically illiterate We doubt it What he is saying is just a theater The Fed does not want to raise interest rates further because of the 5 7 trillion corporate borrowing binge This is what Robert Kaplan Dallas Fed President admitted on Tuesday
It s something that I m aware of which sort of reinforces for me why I feel we should be taking no action for some period of time
The US central bank is simply afraid of bursting the bubbles it previously created maintaining the interest rates too low for too long The cautious stance is worse for gold than aggressive hiking as it postpones the day of reckoning On the other hand more dovish Fed and lower interest rates are supportive for the yellow metal as an alternative for the yield bearing assets
Implications For Gold
The implication for gold is clear Politics is a theater or show business for ugly people as the old saying goes Hence do not take what policymakers say at face value Look at data Our gold analyses are always data based
And one more thing People love spectacles so the political factors may often dominate the markets But all shows eventually end When the curtain falls the fundamental factors of the precious metals market should come to the fore Don t focus on the buzz but look deeper Then your gold investments will shine
And remember today the ECB holds its regular monetary policy meeting It is expected to loosen its stance so we could some volatility in the gold market We will cover its monetary policy decisions next week Stay tuned |
WMB | Danske Daily ECB Meeting Takes Centre Stage | Market movers today
It s time for the long awaited ECB meeting today While no changes to interest rates are expected the growth outlook and new staff projections alongside the discussion about a new liquidity facility will take centre stage Yesterday sources close to the ECB revealed that growth and inflation projections would see an extensive downward revision However the ECB is still looking for a recovery during the year in line with our expectations and we do not expect new signals at the meeting or an announcement on a liquidity facility contrary to market consensus Watch out for a potential volatile and sharp intraday market reaction as market expectations for the meeting are more dovish than ours
US initial jobless claims will give another signal on the status of the business cycle and labour market in the US Jobless claims have been hovering around 225k for a while which is still in line with a robust labour market and decent growth
In Scandi Norway is set to release data on manufacturing production and Sweden will publish house price statistics
Selected market news
Swedish apartment and house prices were unchanged in February according to the Swedish Maklarstatistik In the Greater Stockholm area house prices rose 1 while apartment prices were unchanged
Yesterday a Bloomberg story suggested that the ECB staff projections published later today would justify an announcement of a new liquidity operation The same story suggested growth projections would point to close to potential growth by the end of the year thereby implying no major change in the growth narrative While we do not expect a liquidity operation to be announced later today see above also the discussion that takes place will be very important for a potential monetary policy case and as such point to confidence about a temporary or potential structural growth slowdown in the euro area The ECB published an opinion with no objection to Philip Lane replacing Peter Praet as ECB chief economist With the EP and ECB s positive opinion on Philip Lane the European Council would be the last formal body to give approval before Lane could start at the ECB on 1 June 2019
US crude oil stocks rose more than 7mb last week according to EIA data published yesterday While crude oil inventories can be volatile the large build does raise some concerns about weak demand in the oil market at a time when key figures for global economic growth have been weak
Scandi markets
Norway We expect manufacturing production figures to show a 0 4 m m increase in January fuelled by stronger growth in oil related industries Through monthly volatility the PMI figures show no sign of a slowdown in the manufacturing sector despite the global turmoil
Fixed income markets
Global yields rallied yesterday as a number of stories supported sentiment among them dovish comments from the Fed s Williams NYSE WMB EU and UK officials saying that a Brexit breakthrough was not near and not least the Bloomberg ECB story It suggested that the ECB staff projections published later today see front page would imply an extensive downward revision and justify an announcement of a new liquidity operation
Before the ECB verdict the market will have to absorb supply from Spain and France Given the market optimism yesterday after the ECB Bloomberg story we look for good demand at both auctions Spain will tap in the 5Y 10Y 30Y nominals and the 10Y linker We continue to favour the 5Y segment in Spain France will also add significant duration today as the debt office will open a new 10Y OAT 0 5 May 29 and tap in the 15Y and 25Y bonds
We have published Reading the Markets Denmark We continue to recommend to receive DKK 5Y swaps vs EUR 5Y given the expected jump in banks net position excess liquidity in April We also look at high coupon callables where we see the greatest potential for further performance among 20Y callables compared to 30Y callables
FX markets
Yesterday afternoon the Riksbank announced that it is reducing its FX reserve by USD8bn due to a change in contingency needs due to 1 shifts in bank balances such that these now hold larger liquidity reserves and 2 Nordea s move to Finland which leaves it under ECB rather than Riksbank supervision The drop in FX reserve will be effectuated by allowing dollar loans from the Swedish National Debt Office maturing during the course of this year to run off hence no FX transaction should take place on the back of this That said given that the Riksbank has as part of its toolbox during the past few years stressed the possibility of FX intervention the FX reserve reduction may at first sight have been interpreted as a sign of monetary policy normalisation Indeed the announcement sent EUR SEK briefly below 10 50 but we stress that the Riksbank decision here was done out of financial stability considerations Hence we believe we should not read monetary policy signals into this Today the Riksbank s Ingves and Skingsley will participate in an open hearing on current monetary policy at the Swedish committee on finance and it is an opportunity not least of all to hear about the Riksbank s take on e g the historically weak SEK
For majors it is all about the ECB today The main thing the FX market is waiting for from the ECB is for it to revisit its forward guidance on rates and as this is unlikely to be touched this month we think it remains too early for the ECB to drive the EUR too much If we are right that no liquidity injection will be announced in March even if we stress that there are risks to this call after the ECB sources story yesterday the knee jerk reaction to the ECB today could offer some limited EUR support as no TLTRO could at first sight be seen as a hawkish signal We do not expect a move in EUR USD significantly above the 1 1350 level though resistance at 1 1353 Finally we note that IMM positioning data is finally now up to date after delays in the aftermath of the US government shutdown
Overall JPY shorts have been reduced since New Year whereas EUR USD and GBP positioning is little changed overall speculators remain short EUR and GBP and long USD |
WMB | Why Is Williams Companies Inc The WMB Up 3 2 Since Last Earnings Report | A month has gone by since the last earnings report for Williams Companies Inc The NYSE WMB Shares have added about 3 2 in that time frame outperforming the S P 500
Will the recent positive trend continue leading up to its next earnings release or is Williams Companies Inc The due for a pullback 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 Q4 ResultsWilliams Companies reported fourth quarter 2018 adjusted earnings from continuing operations of 19 cents per share missing the Zacks Consensus Estimate of 22 cents The weaker than expected results can be attributed to impairment charges of 1 8 billion which adversely affected its overall profits The reported EPS was a penny lower than the prior year figure of 20 cents per share For the quarter ended Dec 31 2018 Williams reported revenues of 2 204 million lagging the Zacks Consensus Estimate of 2 531 million Further the top line was a tad lower than the year ago figure of 2 228 million Key TakeawaysDistributable cash flows came in at 748 million up 19 from the year ago quarter Adjusted EBITDA came in at 1 197 million in the quarter under review compared with 1 160 million in the corresponding period of 2017 Cash flow from operations totaled 962 million compared with 858 million in the prior year period Higher revenues from Transco projects drove cash flow in the quarter Other expansionary projects namely Atlantic Sunrise project and Gulf Connector will keep up the cash flow momentum in the coming periods Segmental AnalysisAtlantic Gulf This segment comprising Williams Transco Pipeline and properties in the Gulf Coast region generated adjusted EBITDA of 529 million compared with 433 million recorded in the year ago quarter Transco s Big 5 expansion projects Gulf Trace Hillabee Phase 1 Dalton New York Bay and Virginia Southside II which became functional in 2017 and 2018 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 358 million lower than 481 million recorded in the year ago quarter Impairment charges incurred in some of the gathering assets in the Barnett shale impacted the 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 304 million up 2 from the corresponding quarter of last year Higher volumes from Susquehanna Utica and Ohio River systems led to the improved results Others The segment posted adjusted EBITDA of 6 million compared with 8 million reported in the fourth quarter of 2017 Expenses SummaryTotal costs and expenses increased 19 from 2 383 million a year ago to 2 838 million in the reported quarter The increased costs were primarily driven by impairment charges and higher product expenses Capital Expenditure Balance SheetDuring the reported quarter Williams capital expenditure was 597 million Full year capex amounted to 3 256 million The company had cash and cash equivalents of 168 million as of Dec 31 2018 Its long term debt was 22 367 million representing a debt to capitalization ratio of 60 5 GuidanceWilliams anticipates adjusted EBITDA for 2019 in the band of 4 850 5 150 million with distributable cash flow within 2 900 3 300 million The coverage ratio is expected to be around 1 68 Growth capex is expected in the band of 2 7 2 9 billion
How Have Estimates Been Moving Since Then
In the past month investors have witnessed an upward trend in fresh estimates The consensus estimate has shifted 11 93 due to these changes
VGM Scores
At this time Williams Companies Inc The has a subpar Growth Score of D however its Momentum Score is doing a bit better with a C 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 D If you aren t focused on one strategy this score is the one you should be interested in
Outlook
Estimates have been trending upward for the stock and the magnitude of this revision looks promising Notably 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 | Williams Sonoma WSM Shares Gain On Earnings Beat In Q4 | Williams Sonoma Inc s NYSE WSM shares climbed 4 2 to 59 22 on Mar 21 after reporting fourth quarter fiscal 2018 Earnings and revenues beat the Zacks Consensus Estimate by 6 6 and 2 2 respectively in the quarter Non GAAP earnings of 2 10 per share at the high end of the guided range surpassed the Zacks Consensus Estimate of 1 97 The figure grew 25 year over year Revenues of 1 836 4 million beat the consensus mark of 1 797 4 million and grew 9 3 year over year Williams Sonoma Inc Price Consensus and EPS Surprise Comps increased 2 4 in the fourth quarter compared with 5 4 in the year ago quarter The company s West Elm brand s comps grew 11 1 compared with 12 3 growth in the prior year quarter Also the company s Williams NYSE WMB Sonoma brand s comps grew 0 1 from 4 3 registered in the prior year quarter Pottery Barn Kids and Teen s comps grew 1 6 compared with 1 4 growth in the year ago quarter However Pottery Barn s comps were down 0 4 against 4 1 growth in the year ago quarter Segment DetailsE Commerce 54 6 of fiscal fourth quarter revenues segment reported net revenues of 1 002 2 million in the quarter up 14 3 year over year Retail 45 4 segment s net revenues inched up 3 9 to 834 2 million Operating HighlightsNon GAAP gross margin was 38 7 up 20 basis points bps from fourth quarter fiscal 2017 The upside can be attributed to occupancy leverage partially offset by lower selling margins Non GAAP selling general and administrative SG A expenses were 26 9 of net revenues compared with 26 1 in the year ago quarter reflecting an increase of 80 bps due to new revenue recognition standards which were partially offset by advertising leverage Non GAAP operating margin was 11 9 in the quarter down 50 bps year over year Merchandise inventories increased 6 to 1 1 billion FinancialsWilliams Sonoma reported cash and cash equivalents of 339 million as on Feb 3 2019 compared with 390 1 million as on Jan 28 2018 During the fiscal fourth quarter the company increased its existing stock repurchase program by 500 million Presently Williams Sonoma has 210 million remaining under its present stock repurchase program Dividend HikeWilliams Sonoma announced an 11 6 increase in its quarterly cash dividend to 48 cents per share The quarterly dividend is payable on May 31 2019 to stockholders of record as of the close of business on Apr 26 2019 Fiscal 2018 HighlightsThe company s earnings came in at 4 46 per share on a non GAAP basis reflecting an increase of 23 5 from fiscal 2017 profit level Net revenues were 5 67 billion up 7 2 from the year ago level On a non GAAP basis net revenues grew 7 1 Comps grew 50 bps over last year to 3 7 with positive comps growth in all brands including 150 bp growth in the Pottery Barn brands Fiscal 2019 GuidanceWilliams Sonoma expects non GAAP earnings per share in the band of 4 50 4 70 Net revenues are projected in the range of 5 670 5 840 billion Comps are likely to grow 2 5 Non GAAP operating margin is expected to be in line with fiscal 2018 levels The company expects an incremental buyback of shares under a repurchase authorization of approximately 710 million The company expects to close 30 stores in the year bringing down the total store count to 595 by the end of the year Zacks Rank Key PicksCurrently Williams Sonoma carries a Zacks Rank 3 Hold A few better ranked stocks in the sector are Restoration Hardware Holdings Inc NYSE RH PC Connection Inc NASDAQ CNXN and Tech Data Corporation NASDAQ TECD While Restoration Hardware sports a Zacks Rank 1 Strong Buy PC Connection and Tech Data carry a Zacks Rank 2 Buy You can see RH has an expected long term earnings growth rate of 17 5 PC Connection s expected long term earnings growth rate is 8 Tech Data has an impressive earnings surprise history beating the Zacks Consensus Estimate in three of the trailing four quarters the average beat being 16 8 Breakout Biotech Stocks with Triple Digit Profit PotentialThe biotech sector is projected to surge beyond 775 billion by 2024 as scientists develop treatments for thousands of diseases They re also finding ways to edit the human genome to literally erase our vulnerability to these diseases Zacks has just released Century of Biology 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance Our recent biotech recommendations have produced gains of 98 119 and 164 in as little as 1 month The stocks in this report could perform even better |
WMB | MLB notebook Angels Ramirez suspended for plunking Marisnick | Los Angeles Angels right hander Noe Ramirez was suspended for three games Wednesday and fined an undisclosed amount for hitting Houston Astros outfielder Jake Marisnick with a pitch in Tuesday s game Angels manager Brad Ausmus was suspended for one game and also fined an undisclosed amount according to Major League Baseball chief baseball officer Joe Torre Ausmus was set to serve his punishment Wednesday night when the Astros and Angels were to play again Ramirez will appeal his suspension according to multiple media reports delaying the possible penalty until after the process is complete Former pitcher Ernie Broglio known for being part of one of the most lopsided trades in baseball history died of cancer at age 83 on Tuesday in San Jose Calif according to the St Louis Post Dispatch The right hander became part of baseball lore after being traded by the St Louis Cardinals to the Chicago Cubs in June 1964 He was the key piece that the Cardinals sent in a six player deal that netted them a young player named Lou Brock Brock emerged with the Cardinals and was a six time All Star en route to being inducted into the Hall of Fame He had 3 023 hits and 938 stolen bases in a stellar career that ended in 1979 Broglio went 7 19 with a 5 40 ERA in 2 1 2 seasons with the Cubs He never pitched for another major league team New York Yankees closer Aroldis Chapman said a report of him one million percent planning to opt out of the final two years of his contract is completely false The Athletic s Ken Rosenthal citing sources reported Wednesday that Chapman 31 will enter free agency and forfeit the final two years and 30 million of the five year 86 million contract he signed in December 2016 The Philadelphia Phillies placed outfielder Jay Bruce on the 10 day injured list because of a right oblique strain Bruce sustained the injury in the third inning Tuesday night against the Los Angeles Dodgers The Phillies replaced him on the roster by recalling outfielder Nick Williams NYSE WMB from Triple A Lehigh Valley Philadelphia Phillies reliever Hector Neris was suspended for three games and fined an undisclosed amount for throwing near the head of David Freese of the Los Angeles Dodgers on Tuesday night Neris was ejected as was Phillies manager Gabe Kapler who argued on Neris behalf Neris denied he intended to hit Freese and will appeal the suspension He can play until the matter is resolved Chicago White Sox outfielder Eloy Jimenez who leads American League rookies with 17 home runs was placed on the 10 day injured list because of a right ulnar nerve contusion The White Sox purchased the contract of infielder Ryan Goins from Triple A Charlotte Chicago also outrighted right handed pitcher Juan Minaya to Charlotte after he had been designated for assignment on Saturday The Cincinnati Reds placed relief pitcher Raisel Iglesias on the paternity list and called up catcher Juan Graterol from Triple A Louisville Kansas City Royals shortstop Adalberto Mondesi was placed on the 10 day injured list one day after partially dislocating his left shoulder in a game against the Chicago White Sox Kansas City recalled infielder Humberto Arteaga from Triple A Omaha to replace Mondesi Also right hander Jake Newberry was optioned to Omaha to clear a roster spot for left hander Mike Montgomery who was acquired from the Chicago Cubs on Monday in exchange for catcher Martin Maldonado Oakland All Star third baseman Matt Chapman exited the Athletics game against the visiting Seattle Mariners due to a left ankle injury A s manager Bob Melvin said after the contest that Chapman is day to day Colorado Rockies All Star outfielder David Dahl is considered day to day after he left Wednesday s game against the San Francisco Giants with a left foot contusion The Colorado Rockies transferred rookie infielder Brendan Rodgers to the 60 day injured list following his surgery to repair a torn labrum in his right shoulder Boston Red Sox manager Alex Cora doesn t expect the discord between left hander David Price and Hall of Fame pitcher Dennis Eckersley to disrupt the team s locker room after the beef resurfaced Price tweeted Wednesday in response to comments made by Eckersley a Red Sox TV analyst to the Boston Globe in a story published Tuesday The two initially clashed in 2017 over comments Eckersley made about one of Price s teammates Elijah Pumpsie Green the first black player in Red Sox history died at age 85
Green entered as a pinch runner against the Chicago White Sox on July 21 1959 to become the first black player to play in a game for Boston He ended with a career batting average of 246 with 13 homers and 74 RBIs in 344 games for the Red Sox and the New York Mets Field Level Media |
WMB | Zelenskiy s second act Ukraine leader set to win snap parliamentary election | By Matthias Williams NYSE WMB
KIEV Reuters The party of Ukraine s new president looks set to win Sunday s snap parliamentary election repeating Volodymyr Zelenskiy s shock victory in the April presidential race that has upended politics in the war scarred nation
Zelenskiy a former comedian with no previous political experience hopes his Servant of the People party can secure control of parliament by tapping into public anger over graft and low living standards in one of Europe s poorest countries
At present the 41 year old leader shares power with a cabinet and lawmakers who are mostly loyal to his predecessor
Whoever wins the election will inherit a country at the center of the West s standoff with Moscow following Russia s annexation of Ukraine s Crimea peninsula in 2014 and its role in a separatist conflict in the Donbass region of eastern Ukraine that has killed 13 000 people in the past five years
Zelenskiy and his new government will also need to implement reforms agreed with international donors in order to secure billions of dollars of new loans and keep the economy stable
Servant of the People is named after the TV comedy series where Zelenskiy played a scrupulously honest history teacher who accidentally becomes president after a video of him ranting about corruption goes viral
He has burnished that image on the campaign trail and as president
In one of his first acts after taking office Zelenskiy announced he was moving out of the presidential administration building as a symbolic break with the old way of doing politics just as his fictitious president did in the TV series
Iryna Bekeshkina director of the Kiev based Democratic Initiatives Foundation said Zelenskiy represented a dream for voters but it was not clear what the reality would be
It is a dream that this party will come and it will be completely different from the former political elite That the Servant of the People will really serve as the servant of the people she said
Nikita Vohomyanin a 28 year old Kiev resident is not convinced They say that there will be some movement new changes but in general it s always the same nothing happens
FED UP WITH OLD POLITICS
Zelenskiy shot to power by tapping into an anti establishment mood in Ukraine mirroring the success of Donald Trump in the United States or the rise of the Five Star Movement in Italy that was also propelled by a comedian
That mood appears to be holding A July survey by the International Republican Institute showed that nearly twice as many Ukrainian voters wanted a political party that delivered change compared to a party that ensured stability
Nearly two thirds of voters also wanted a party that represented a new generation of politicians compared to 24 percent who prized a party with experienced leaders
State corruption was cited as the biggest issue facing Ukraine ahead of the Donbass conflict or relations with Russia
Beyond his everyman image Zelenskiy has faced scrutiny over his business connections to one of Ukraine s most powerful tycoons Ihor Kolomoisky
Kolomoisky has been locked in a legal battle with the state over control of Ukraine s largest lender PrivatBank which was nationalized in 2016 against his wishes as part of a sweeping clean up demanded by the country s creditors
Zelenskiy insists he is not beholden to Kolomoisky and has sought to reassure investors that he will not help him recover ownership of the bank or receive compensation moves that would likely result in donors freezing aid
For now most voters appear ready to give Zelenskiy the benefit of the doubt
A July survey by the KIIS research institute put his party on 37 8 percent well ahead of his closest rivals though short of a majority He has not yet named his preferred candidate for prime minister
The Russia friendly Opposition Platform was second with 11 percent and the party run by Zelenskiy s predecessor Petro Poroshenko in third
The Voice party headed by rock star Sviatoslav Vakarchuk is seen as a possible coalition ally for Zelenskiy
Zelenskiy and Vakarchuk both say they would stick to an aid program agreed with the International Monetary Fund a reassuring signal to investors
Zelenskiy is saying the right things so if he gets the majority in parliament he will have the power to do things said David Nietlispach a fund manager at Pala Asset Management
Expectations in Ukraine are always very low normally nothing changes really But this time he says he wants to change things he has the power to change things so there will be no excuse if he gets the majority in parliament |
WMB | Trump s tariffs trip up the all American RV industry | By Timothy Aeppel
ELKHART Ind Reuters Carrie Gray points to a stack of unwelcome mail on a conference table at the offices of Renegade RV one of the leading U S manufacturers of high end recreational vehicles She s buried in bad news from most of her about 350 suppliers
We got letters from 75 percent of them demanding tariff related price increases explains Gray Renegade s materials manager
About 85 of the recreational vehicles sold in the United States are built in and around Elkhart County making it a popular stop for politicians to tout their visions for U S manufacturing including President Donald Trump who staged a rally here last May
And yet this uniquely American manufacturing sector has been caught in the crossfire of Trump s trade war according to interviews with industry insiders and economists along with data showing a steep sales decline amid rising costs and consumer prices The industry has taken hits from U S tariffs on steel and aluminum and other duties on scores of Chinese made RV parts from plumbing fixtures to electronic components to vinyl seat covers
Shipments of RVs to dealers have fallen 22 percent in the first five months of this year compared to the same period last year after slipping 4 in 2018 according to the Recreational Vehicle Industry Association
The RV industry s woes illustrate how even the most American of manufacturers the kind of industries Trump has vowed to protect can be heavily exposed to tariffs in a world of globalized supply chains
Tariff related price hikes have forced manufacturers to pass on some of the increased costs though higher RV prices which in turn has contributed to slower sales As dealers cut orders many plants furloughed workers or reduced hours including Renegade which has reduced its headcount of 160 by about 10 workers since May at its two factories here
Michael Hicks a Ball State University economist who tracks the industry said its decline is far worse than he or other analysts expected and could signal a wider economic downturn RV shipments have fallen sharply just before the last three U S recessions For a graphic on RV sales and past recessions see
The RV industry is a great bellwether of the economy said Hicks because the vehicles are an expensive and discretionary purchase easily delayed by consumers who start to worry about their financial stability
The Commerce Department said in a statement that it has met with private industry to hear concerns about steel and aluminum tariffs and that it has granted most U S companies requests for tariff exemptions among the applications it has fully processed The department referred questions about tariffs on Chinese goods to the office of the United States Trade Representative which did not respond to requests for comment
The RV industry may have contributed to its own problems by building too many factories during a sales boom in recent years leading to an oversupply now But tariffs were the pivotal factor in the industry s decline said managers at RV manufacturers and suppliers
The tariff price increases are what tipped the RV business it started the landslide no question said Tom Bond the materials and purchasing manager at Adnik Manufacturing an Elkhart based division of Norco Industries that has been hit with higher costs on metals it uses to make components such as seat frames
Sitting in an office near the front of the Adnik factory Bond and Ronald Dick the company s brand manager spent an hour griping about the speed and scope of their materials costs increases And yet like many in this region that strongly supported Trump s election they often added the caveat that they support the larger goal of the tariffs to protect U S factories from unfair foreign competition
It s good for our country in the long haul said Dick but it s going to hurt
Thor Industries Inc N THO which controls nearly half the RV market said its sales in North America fell about 23 in its fiscal third quarter which ended in April compared to a year ago The company said in a release that it has cut production and shifted to four day weeks at some North American plants
Workers such as Demiris Jahmal Williams NYSE WMB are bracing for bumpy times He has worked for a division of Thor for the last seven years often working as many hours as he wanted But his hours were cut recently and his factory s normal week long shutdown in July was extended to three weeks
This is the worse I ve seen it he said
The unemployment rate in Elkhart county has risen to 2 6 up from a post recession low of 2 1 last April During the last recession the jobless rate in Elkhart County soared to more than 19
Tim Sullivan CEO of REV Group N REVG Renegade s parent company said U S suppliers have raised prices alongside their foreign counterparts because tariffs have sparked a rush of demand for U S parts
It s been a total feeding frenzy he said
Michael Happe CEO of Winnebago Industries Inc N WGO said he expects tariffs will add more than 10 million to the company s costs this fiscal year ending in August
The upshot he said is that most RV manufacturers have had to boost prices they charge dealers
Those make their way to the end customer he said
CUTTING WORKERS AS STEEL PRICES RISE
Despite its all American image the RV industry relies on imports for everything from air compressors and appliances to bedding fabrics and the LED light strings that have become a popular interior feature
The cost of metals surged dramatically after sweeping tariffs on steel and aluminum were imposed last year Those prices have since moderated but manufacturers say many of the price increases on the metal parts they buy haven t gone away
Elkhart s RV industry anchors a large network of related transport equipment companies including utility trailer makers and specialty bus manufacturers who rely on the same supply chains Matt Arnold president of utility trailer manufacturer Look Trailers based in Middlebury Ind said the axles he buys had three price hikes and are now 28 higher than before tariffs while his Chinese tire rims were hit with a 65 tariff
For a graphic on how tariffs drive up trailer costs see
His rim supplier shifted to a source in Vietnam but those still cost 8 more than he was paying before In response he boosted his trailer prices by about 20 but that tanked sales So far he s had to shutter his Georgia factory laying off 80 people and cut about 10 of his workforce in Indiana
RISING RV PRICES SLOWING SALES
Tariffs have so far translated into a 5 increase in RV sticker prices for consumers estimates Gregg Fore chief revenue officer at trade magazine RV Business and the former owner of an RV parts supplier based on anecdotal reports and proprietary sales data he has seen
That doesn t sound like a lot until you start to talk about adding 1 000 to the price of a 20 000 vehicle he said
Many RVs cost far more Renegade for instance sells models that cost as much as 750 000 and can come with multiple bathrooms heated tile floors and cedar closets
Some industry leaders say the business will stabilize once dealers reduce excess stocks But many of the region s leaders are worried including Jackie Walorski the Republican who represents the area in Congress
Walorski is an outspoken critic of President Trump s tariffs although she steps lightly In a statement she praised the President s tax cuts and other policies for helping fuel economic growth
At the same time I have not been afraid to stand up for Hoosiers when tariffs and retaliatory measures have put those gains at risk she said using a common nickname for Indiana residents As I ve told the president we need to put a stop to China s unfair trade practices by using a scalpel not an axe |
WMB | Bruised but driven Netanyahu becomes Israel s longest serving PM | By Dan Williams NYSE WMB
JERUSALEM Reuters Benjamin Netanyahu makes history this weekend by becoming the longest serving Israeli prime minister surpassing a record held by the country s founding father David Ben Gurion
Yet the conservative leader who will match Ben Gurion s 8 475 days in office on Friday is limping across that line facing an election in September after an inconclusive April ballot and a possible corruption trial
Who s counting he said airily when asked about the career milestone during a conference hosted by the sympathetic Israel Hayom newspaper and attended by U S envoys
To judge from his solid approval ratings Netanyahu 69 has delivered what Israelis wants a purring economy and relative security despite the collapse of peacemaking with the Palestinians and combustible fronts with Syria and Lebanon
He has also rallied a rising Israeli right wing with rhetoric against the country s Arab minority and cut down potential political challengers with divide and conquer tactics
Netanyahu became Israel s youngest ever premier in 1996 serving until his defeat in a 1999 election Re elected in 2009 he extended his tenure through the ballot box in 2013 and 2015
But in a surprise turn he failed to form a new coalition government after claiming victory in an election three months ago and now serves as a caretaker prime minister
That means a do over in September just weeks before prosecutors are expected to decide whether to indict Netanyahu in three graft cases which he has castigated as a witch hunt
STATECRAFT
Netanyahu has scored a string of statecraft goals with the help of President Donald Trump U S recognition of Jerusalem as Israel s capital and of Israeli sovereignty over the occupied Golan Heights as well as Washington s withdrawal from world powers 2015 nuclear deal with Israel s arch regional foe Iran
He may be one of the few world leaders who can boast a rapport with both Trump and Russian President Vladimir Putin
And to the delight of Jewish settlers in the occupied West Bank he has sidestepped the Palestinians with outreach to Arab Sunni Muslim rulers who share his concerns over Iran
Israel s center left opposition and many of its foreign friends worry however that Netanyahu has missed a chance to find a two state deal with the Palestinians to safeguard the Jewish majority and democratic credentials of his country
Tom Segev an Israeli historian said that while Netanyahu s political longevity might be seen as a success story it may also be that we will remember him more for leading Israel down the road to more oppression of the Palestinians
Dore Gold a veteran Netanyahu envoy who now heads the Jerusalem Center of Public Affairs think tank described the U S educated premier as influenced by his late father Benzion Netanyahu a scholar of Jewish persecution during the Spanish Inquisition
I think he sees himself as someone who will do whatever is possible anything in his power to protect his people from any future disaster Gold said in summarizing Netanyahu s legacy
Netanyahu s political strategy has included emulating Trump in blunt social media attacks on his rivals that have underlined deep divisions within Israel society
Much like Ben Gurion Netanyahu has doubled as defense minister and bolstered the military as part of an uncompromising distrust of Israel s neighbors and a doctrine of self reliance
But the two leaders cut two very different figures
Plain spoken and diminutive the Polish born Ben Gurion stepped down as collectivist prime minister in 1963 aged 76 and retired to a spartan desert hut The telegenic English fluent Netanyahu is a free market champion who favors cigars and American sports tropes and keeps a beachfront villa |
WMB | Fed s Williams sees need to vaccinate economy against risk when rates are low | NEW YORK Reuters Policymakers need to add stimulus early to deal with too low inflation when rates are near zero and cannot wait for economic disaster to unfold a Federal Reserve policymaker said on Thursday
In what will likely be read as a strong argument in favor of quick action by the Fed to cut rates this month New York Fed President John Williams NYSE WMB said that one of the lessons from his research is that when rates and inflation are low policymakers cannot afford to keep their powder dry and wait for potential economic problems to materialize
It s better to take preventative measures than to wait for disaster to unfold Williams said in remarks prepared for delivery at a central banking conference here When you only have so much stimulus at your disposal it pays to act quickly to lower rates at the first sign of economic distress
In recent weeks Fed policymakers have identified a host of concerns they think could end what is now the longest U S economic expansion on record Chief among those concerns include a U S China trade war denting business confidence a global manufacturing slowdown and inflation below the Fed s target of 2 a year
Williams sounded particularly concerned about inflation with the Fed s preferred measure of prices gaining 1 6 a year now
People may start to expect it to stay that way creating a feedback loop pushing inflation further down over the longer term Williams said The lower average level of inflation translates into a lower level of interest rates cuts available during a downturn making it even harder for policymakers to achieve their goals
Taking quick action to cut rates in the face of adverse economic conditions and keeping rates lower for longer Williams said should vaccinate the economy and protect it from the more insidious disease of too low inflation
Other Fed policymakers have made a different case Kansas City Fed President Esther George for instance on Wednesday suggested she might be willing to support a cut but only if looming economic risks materialize nL2N24I10K |
WMB | Dollar falls as Fed s Williams remarks stoke rate cut bets | NEW YORK Reuters The dollar extended its losses against the euro yen and other major currencies on Thursday as remarks from New York Federal Reserve President John Williams NYSE WMB increased bets the central bank would lower interest rates at month end
At 2 52 p m EDT 1852 GMT the euro was up 0 32 at 1 1262 while the greenback was down 0 37 at 107 545 yen |
WMB | Clarida Says Fed Shouldn t Delay Cuts Until Economy Falters | Bloomberg Federal Reserve Vice Chairman Richard Clarida said policy makers shouldn t wait until the economy has obviously stumbled before cutting interest rates in an effort to keep the economy on an even keel
You don t need to wait until things get so bad to have a dramatic series of rate cuts Clarida said Thursday in an interview on Fox Business Network citing economic research We need to make a decision based on where we think the economy may be heading and importantly where the risks to the economy are lined up
His remarks line up with testimony last week by Fed Chairman Jerome Powell and comments earlier in the day from New York Fed President John Williams NYSE WMB that have cemented expectations for a rate cut when officials meet July 30 31 in Washington Investors weighing their words increased bets Thursday that the Fed will move by a half point at the gathering
While the U S economy is in a good place Clarida said recent global economic data have been softer than expected We ve had mixed data but I do think the global data has been disappointing on the downside he said Disinflationary pressures if anything are more intense than I thought six weeks ago
Clarida the No 2 official at the Fed spoke not long after Williams appeared in New York saying When you only have so much stimulus at your disposal it pays to act quickly to lower rates at the first sign of economic distress
U S stocks rebounded and the dollar fell after their remarks while 10 year Treasury yields dropped Sentiment in equities was subsequently tempered by news that the U S shot down an Iranian drone
Not all Fed officials are on board even a quarter point decrease
Atlanta Fed President Raphael Bostic who has previously expressed skepticism of the need to lower rates underlined that view earlier Thursday in Tennessee He rejected the notion that yields in Treasury bonds provide a warning that should cause the Fed to cut
It s important for us to stay grounded in the real economy said Bostic who doesn t vote on policy this year Clarida and Williams are permanent voters
Asked if the Fed can decide to leave rates unchanged this month Clarida replied We go into every meeting looking at the range of options available to us I think our messaging has been quite clear that we want to put in place the appropriate policies to keep the economy in a good place
Updates with market reaction in sixth paragraph |
WMB | Top Fed Officials See Prudence of Acting Early to Sustain Growth | Bloomberg Two senior Federal Reserve officials stressed the need to act quickly if the U S economy looked likely to stumble reinforcing bets the central bank could cut interest rates by as much as half a percentage point later this month
Fed Vice Chairman Richard Clarida and New York Fed chief John Williams NYSE WMB buoyed U S stocks with their dovish remarks Thursday afternoon in some of the final comments from central bankers before they enter their blackout period ahead of a July 30 31 policy meeting
You don t need to wait until things get so bad to have a dramatic series of rate cuts Clarida said Thursday in an interview on Fox Business Network citing economic research We need to make a decision based on where we think the economy may be heading and importantly where the risks to the economy are lined up
His remarks line up with testimony last week by Fed Chairman Jerome Powell and comments a bit earlier in the day from Williams that have cemented expectations for a rate cut Investors weighing their words increased bets Thursday that the Fed will move by a half point at the gathering
While the U S economy is in a good place Clarida said recent global economic data have been softer than expected We ve had mixed data but I do think the global data has been disappointing on the downside he said Disinflationary pressures if anything are more intense than I thought six weeks ago
Clarida the No 2 official at the Fed spoke not long after Williams appeared in New York saying When you only have so much stimulus at your disposal it pays to act quickly to lower rates at the first sign of economic distress
U S stocks rebounded and the dollar fell after their remarks while 10 year Treasury yields dropped Sentiment in equities was subsequently tempered by news that the U S shot down an Iranian drone
Not all Fed officials are on board even a quarter point decrease
Atlanta Fed President Raphael Bostic who has previously expressed skepticism of the need to lower rates underlined that view earlier Thursday in Tennessee He rejected the notion that yields in Treasury bonds provide a warning that should cause the Fed to cut
It s important for us to stay grounded in the real economy said Bostic who doesn t vote on policy this year Clarida and Williams are permanent voters
Asked if the Fed can decide to leave rates unchanged this month Clarida replied We go into every meeting looking at the range of options available to us I think our messaging has been quite clear that we want to put in place the appropriate policies to keep the economy in a good place |
WMB | Another Chinese Grand Slam champion due in next decade Li | By Andrew Both
Reuters China will likely produce another Grand Slam women s champion in the next decade predicts Li Na the only player from her nation to taste victory in any of tennis s four biggest tournaments
As Li prepares to reflect on her career at her induction into the Tennis Hall of Fame in Newport Rhode Island on Saturday she has an eye on the future of the sport in her home country
She said the move of the WTA Finals to Shenzhen for the next decade the first time starting in October will inspire Chinese players even if they are not playing the event
Having the event in China is not only good for the fans it s also good for the athletes especially the young athletes the twice Grand Slam champion told Reuters in an interview on Thursday
Face to face they can see the top players It s not only on the court but also off the court the professional tennis life that is important
Until Japan s Naomi Osaka won last year s U S Open Li was the only Grand Slam winner from Asia male or female and she will be the first inducted into the Hall of Fame
China has four women ranked in the world s top 100 but no men in the top 200
Unsurprisingly Li said it was more likely a woman would win the nation s next Grand Slam
I think the women s side is much easier because after I won the Grand Slam young girls think they can do the same she said For the men s it s a little bit tough
Li 37 retired in 2014 after battling knee injuries for several years
She is seven months younger than Roger Federer and was glued to the television in the wee hours of the night in Beijing watching Sunday s classic five set Wimbledon final
Li could not believe that Federer blew two match points on serve in defeat to Novak Djokovic
I thought OK it s over she said After watching the match I couldn t go to sleep It was like three o clock in the morning It was so exciting
So what did she make of Djokovic s comeback Only one thing how strong his mind is so tough
Li never made it past the quarter finals on the grass of Wimbledon her Grand Slam titles coming on clay at the 2011 French Open and hardcourt at the 2014 Australian Open
She also lost two Australian Open finals the first in 2011 a match she surprisingly ranks as the best memory of her career despite defeat in three sets to Kim Clijsters
I was really close to taking the trophy Li said
Even though I didn t win the match it still gave me a lot of confidence
Li said her best career performance did not come at a Grand Slam however but in Stuttgart where she beat Serena Williams NYSE WMB 0 6 6 1 6 4 in 2008
Only once I beat Serena Li said laughing when asked whether Williams had been her toughest opponent
Right answer |
BMY | RedHill RDHL Stock Up On Positive Phase I Data On Yeliva | RedHill Biopharma Ltd s NASDAQ RDHL shares gained 2 6 after the company announced positive results of a phase I study on Yeliva ABC294640 for the treatment of advanced solid tumors The open label dose escalation pharmacokinetic PK and pharmacodynamic PD study evaluated Yeliva in patients n 21 with advanced solid tumors with the majority suffering from gastrointestinal cancer such as pancreatic colorectal and cholangiocarcinoma cancers Data from the study demonstrated that Yeliva can be safely administered to cancer patients at doses providing circulating drug levels that are predicted to have therapeutic activity The primary objectives included the determination of the maximum tolerated dose dose limiting toxicities and evaluating the safety of Yeliva while the secondary objective was to establish the PK and PD properties of the candidate The study met both the primary and secondary endpoints and the candidate was found to be safe and well tolerated Meanwhile a number of studies on Yeliva are expected to begin in the coming months RedHill Biopharma expects to initiate a phase I II study on the candidate for the treatment of refractory or relapsed multiple myeloma in the coming weeks In addition the company plans to evaluate Yeliva in a phase II study as a radioprotectant for the prevention of mucositis in cancer patients undergoing therapeutic radiotherapy in the second half of 2016 and in a phase II study for the treatment of advanced hepatocellular carcinoma in the third quarter of 2016 We note that the company is also progressing with other candidates in its pipeline Earlier this week the company initiated a phase II study on Bekinda 12 mg for the treatment of diarrhea predominant irritable bowel syndrome IBS D The randomized double blind placebo controlled study will evaluate the safety and efficacy of Bekinda in patients with IBS D Going ahead we expect investors to focus on further pipeline updates on the company RedHill Biopharma currently carries a Zacks Rank 3 Hold Some better ranked stocks in the health care sector include Bristol Myers Squibb Company NYSE BMY ANI Pharmaceuticals Inc NASDAQ ANIP and Pfizer Inc NYSE PFE each sporting 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 |
BMY | GW Pharma GWPH To Develop Epidiolex For Infantile Spasms | GW Pharmaceuticals plc NASDAQ GWPH announced that it has selected infantile spasms IS as the fourth target indication for the development of its lead cannabinoid candidate Epidiolex The company expects to initiate a two part pivotal phase III study in the fourth quarter of fiscal 2016
We note that Epidiolex is currently in phase III development for the treatment of a number of rare pediatric epilepsy disorders Dravet syndrome Lennox Gastaut syndrome LGS and tuberous sclerosis complex TSC While positive data from the first phase III study in Dravet syndrome was announced in Mar 2016 first phase III study results in LGS are anticipated this month
Additionally GW Pharma announced that the FDA has granted orphan drug status to Epidiolex for the treatment of IS Under the Orphan Drug Act the FDA usually grants orphan drug status to drugs that are being developed for the treatment of a rare disease or condition affecting less than 200 000 patients in the U S
Per the company s press release every year there are about 2 000 to 4 000 new cases of IS in the U S and is usually associated with poor long term overall prognosis Considering the lack of treatment options for children suffering from IS successful development and subsequent approval of Epidiolex will be a huge boost for both the eligible patient population and the company
Epidiolex also enjoys orphan drug status from the FDA for the treatment of Dravet syndrome LGS and TSC Additionally GW Pharma has received Fast Track status from the FDA and orphan status in the EU for Epidiolex for the treatment of Dravet syndrome
Apart from Epidiolex GW Pharma is evaluating additional development programs in other orphan pediatric seizure disorders
GW Pharma currently is a Zacks Rank 3 Hold stock Some better ranked stocks in the health care sector include ANI Pharmaceuticals Inc NASDAQ ANIP Retrophin Inc NASDAQ RTRX and Bristol Myers Squibb Company NYSE BMY All three stocks sport a Zacks Rank 1 Strong Buy |
BMY | Puma PBYI Submits Neratinib Marketing Application In EU | Puma Biotechnology Inc NYSE PBYI announced that it has submitted a Marketing Authorisation Application MAA in the EU for its lead pipeline candidate neratinib The company is looking to get neratinib approved for the extended adjuvant treatment of HER2 positive early stage breast cancer that has previously been treated with Roche Holding SIX ROG AG s OTC RHHBY Herceptin trastuzumab based adjuvant therapy The submission was based on results of the phase III ExteNET study which demonstrated that extended adjuvant treatment with neratinib following adjuvant treatment with Herceptin in women with early stage HER2 positive breast cancer reduced the risk of invasive disease recurrence or death compared to placebo A New Drug Application NDA in the U S is expected to be filed shortly We remind investors that based on a series of meetings and communications with the FDA the company had delayed its plan to submit the NDA in mid 2016 in order to incorporate the changes requested by the agency We note that the FDA had requested the company to amend the current statistical analysis plan for the phase III ExteNET study on neratinib to include the rules for censoring data for recurrent disease events or death following data evaluation Apart from HER2 positive breast cancer neratinib is also being evaluated for HER2 mutated non small cell lung cancer HER2 negative breast cancer with a HER2 mutation and other solid tumors with a HER2 mutation The company is also developing an intravenous formulation of the candidate Considering that Puma has no approved product in its portfolio at the moment and that neratinib is its lead pipeline candidate investor focus will remain on updates pertaining to the candidate s development Early approval and successful commercialization will prove to be a major boost for the company Puma Biotech currently carries a Zacks Rank 4 Sell A couple of better ranked stocks in the health care sector are Bristol Myers Squibb Company NYSE BMY and Pfizer Inc NYSE PFE both sporting 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 | USD Remains Relatively Stable Despite Soft Data | The USD yesterday remained relatively stable despite the soft financial data note the Philly Business Index drop released Despite the USD s initial weakening due to the soft data mentioned higher US bond yields provided some support balancing the greenback The soft data indirectly strengthen the case for the Fed to keep its interest rates steady at least for the short term Analysts point out that the market seems stuck in a tight range and rather numb to any developments of the US Sino negotiations It would be indicative that the market seems to be moving from one financial release to another seeking for clues about the dollar s direction We could see the USD in the coming days remain relatively stable however we would not be surprised to see any sudden moves of the USD due to fundamentals EUR USD maintained a sideways motion yesterday despite at some point temporarily breaking the 1 1345 R1 resistance line We could see the pair maintaining the range bound movement yet some bearish tendencies could be in the cards as financial releases could weaken EUR Should the bears dictate the pair s direction we could see the pair aiming if not breaking the 1 1300 S1 support line Should on the other hand the bulls have the upper hand we could see the pair breaking the 1 1345 R1 resistance line and aim for the 1 1385 R2 resistance level
Brexit continues to drive the pound
The pound was temporarily lifted yesterday as hopes grew for UK s PM Theresa May to get the Brexit deal changed However expectations were later on cooled off as a UK source reduced the chances of an imminent Brexit deal On the other hand reports state that the EU expects the UK to request a technical extension of 3 months for Brexit It should be noted that UK finance minister Philip Hammond stated yesterday that the talks in Brussels have been constructive and that the UK Parliament could vote on a revised deal by next week We see the case for the pound to strengthen should a revised Brexit deal be struck with Brussels as it would constitute another step toward an agreed Brexit Despite cable getting a Brexit hope boost yesterday breaking the 1 3070 R1 resistance line it ended the session below it yesterday We could see the pair maintaining a sideways movement but we expect to remain highly sensitive to any further Brexit headlines Should the pair find extensive buying orders along its path we could see it breaking the 1 3070 R1 resistance line and aim for the 1 3175 R2 resistance level On the flip side if cable comes under the selling interest of the market we could see it aiming if not breaking the 1 2960 S1 support line
Today s other economic highlights
During the European session today we get Germany s final GDP growth rate for Q4 Ifo s business climate indicator for February while from the Eurozone we get the final CPI rate for January In the American session we get Canada s retail sales growth rates for December and from the US the baker Hughes active oil rig count figure Please note that we will be having an extensive number of speakers today mainly from the Fed as Atlanta Fed President Raphael Bostic New York Fed President John Williams NYSE WMB and San Francisco Fed President Mary Daly ECB President Mario Draghi Fed s Richard Clarida Saint Louis Fed President James Bullard Philadelphia Fed President Patrick Harker and Fed s Randal Quarles speak
GBP USD Support 1 2960 S1 1 2830 S2 1 2710 S3 Resistance 1 3070 R1 1 3175 R2 1 3270 R3
EUR USD H4 Support 1 1300 S1 1 1260 S2 1 1215 S3 Resistance 1 1345 R1 1 1385 R2 1 1420 R3 |
WMB | EUR USD Euro Shrugs Off Soft German Numbers | It s been a relatively quiet week for EUR USD and pair is unchanged on Thursday Currently the pair is trading at 1 1343 up 0 08 on the day In economic news German data continued to disappoint Final GDP for the fourth quarter came in at 0 0 matching the forecast Ifo Business Climate dropped to 98 5 shy of the estimate of 99 0 points
In the eurozone inflation dipped to 1 4 slowing down for a third straight month In the U S there are no data releases but we ll hear from a host of FOMC members with the markets hoping for some insights into future monetary policy
It has been a dismal week for German numbers but nonetheless the euro has managed to hold its own against the dollar On Friday fourth quarter GDP showed no change after a contraction of 0 2 in the third quarter
The Ifo Business Climate survey slowed for a sixth successive month indicating concern in the business sector about the country s economic outlook and German manufacturing PMI contracted for a second straight month As the largest economy in the eurozone Germany is the bellwether for the entire eurozone and if German data continues to miss expectations the euro could find itself under pressure
The Federal Reserve minutes from the January meeting indicated that policymakers remain dovish with regard to monetary policy Investors were not surprised and gold was unable to make any headway
Participants reiterated that the Fed will remain cautious stating that a patient approach to monetary policy was appropriate However members added that if economic projections improved the Fed could revise the patient approach
The minutes noted that the employment market had strengthened and economic activity was rising but expected GDP in 2019 to slow down compared to 2018 We may not see a rate hike before the second half of the year as the Fed has scaled back its forecast to two hikes this year while the markets have priced in no rates hikes until 2020
Markets flat on final day of the week
EUR USD Fundamentals
Friday February 22
2 00 German Final GDP Estimate 0 0 Actual 0 0
4 00 German Ifo Business Climate Estimate 99 0 Actual 98 5
5 00 Eurozone Final CPI Estimate 1 4
5 00 Eurozone Final Core PI Estimate 1 1
9 00 Belgian NBB Business Climate Estimate 2 0
10 15 US FOMC Member Williams NYSE WMB Speaks
10 30 ECB President Draghi Speaks
Tentative Fed Monetary Policy Report
12 00 US FOMC Member Clarida Speaks
13 30 US FOMC Member Bullard Speaks
13 30 US FOMC Member Quarles Speaks
17 30 US FOMC Member Williams Speaks
All release times are EST
Key events are in bold
EUR USD for Friday February 22 2019
EUR USD for February 22 at 6 00 EST
Open 1 1335 High 1 1352 Low 1 1332 Close 1 1343
EUR USD Technical
EUR USD was flat in the Asian session The pair inched higher in the European session but has given up these gains
1 1300 is providing support
1 1434 is the next resistance line
Current range 1 1300 to 1 1434
Further levels in both directions
Below 1 1300 1 1212 1 1120 and 1 1046
Above 1 1434 1 1553 and 1 1685
Original post |
WMB | DAX Jumps On Optimism Over U S China Trade Talks | The DAX index has posted considerable gains in Friday trade after a pause on Thursday Currently the DAX is at 11 484 up 0 53 on the day On the release front German data was soft Final GDP for the fourth quarter came in at 0 0 matching the forecast Ifo Business Climate dropped to 98 5 shy of the estimate of 99 0 points In the eurozone inflation dipped to 1 4 slowing down for a third straight month
It s been an excellent February for the DAX which has climbed 2 8 Risk appetite remains high but German numbers continue to disappoint On Friday fourth quarter GDP showed no change after a contraction of 0 2 in the third quarter The Ifo Business Climate survey slowed for a sixth successive month indicating concern in the business sector about the country s economic outlook German manufacturing PMI contracted for a second straight month while German CPI declined in January for the first time in a year As the largest economy in the eurozone Germany is the bellwether for the entire eurozone and if German data continues to miss expectations risk apprehension could rise and weigh on equity markets
Is a breakthrough around the corner in the U S China trade rift Trade officials are holding a fourth round of talks in Washington this week The talks are reportedly making substantial progress as negotiators are preparing memorandums of understanding on key issues such as cyber theft and intellectual property rights The trade war has triggered a slowdown in China and weighed on global stock markets The U S has threatened to raise tariffs on March 1 if a deal is not reached so there is strong pressure to reach a deal before the deadline If the negotiations continue to make progress traders can expect the DAX to move higher
Economic Calendar
Friday February 22
2 00 German Final GDP Estimate 0 0 Actual 0 0
4 00 German Ifo Business Climate Estimate 99 0 Actual 98 5
5 00 Eurozone Final CPI Estimate 1 4
5 00 Eurozone Final Core PI Estimate 1 1
10 15 US FOMC Member Williams NYSE WMB Speaks
10 30 ECB President Draghi Speaks
All release times are DST
Key events are in bold
DAX Thursday February 22 at 6 50 EST
Previous Close 11 423 Open 11 419 Low 11 418 High 11 501 Close 11 484
Original post |
WMB | USD CAD Canadian Dollar Steady Ahead Of Canadian Retail Sales | The Canadian dollar is steady in the Friday session Currently the pair is trading at 1 3219 down 0 11 on the day On the release front the markets are braced for weak Canadian retail sales reports for December Core retail sales are expected in at 0 5 while retail sales is forecast to post a flat 0 0 reading
In the U S there are no data releases but we ll hear from a host of FOMC members with the markets hoping for some insights into future monetary policy
Risk appetite remains strong as investors are optimistic that trade talks between the U S and China will yield a deal Negotiations continued this week in Washington but details have been hard to come by The talks are reportedly making progress as negotiators are preparing memorandums of understanding on key issues such as cyber theft and intellectual property rights
Investors are hopeful that a March 1 deadline of higher U S tariffs can be avoided The trade war between the two countries has weighed heavily on global growth and the Canadian dollar could jump if there is a breakthrough in the talks
The Federal Reserve minutes from the January meeting indicated that policymakers remain dovish with regard to monetary policy Investors were not surprised and gold was unable to make any headway
Participants reiterated that the Fed will remain cautious stating that a patient approach to monetary policy was appropriate However members added that if economic projections improved the Fed could revise the patient approach
The minutes noted that the employment market had strengthened and economic activity was rising but expected GDP in 2019 to slow down compared to 2018 We may not see a rate hike before the second half of the year as the Fed has scaled back its forecast to two hikes this year while the markets have priced in no rates hikes until 2020
Markets flat on final day of the week
U S dollar stronger by default but for how long
USD CAD Fundamentals
Friday February 22
8 30 Canadian Core Retail Sales Estimate 0 5
8 30 Canadian Retail Sales Estimate 0 0
10 15 US FOMC Member Williams NYSE WMB Speaks
Tentative Fed Monetary Policy Report
12 00 US FOMC Member Clarida Speaks
13 30 US FOMC Member Bullard Speaks
13 30 US FOMC Member Quarles Speaks
17 30 US FOMC Member Williams Speaks
All release times are EST
Key events are in bold
USD CAD for Friday February 22 2019
USD CAD February 22 at 8 30 EST
Open 1 3233 High 1 3242 Low 1 3204 Close 1 3219
USD CAD Technical
USD CAD posted small gains in the Asian session but has reversed directions in European trade
1 3200 is a weak support line
1 3290 is the next resistance line
Current range 1 3200 to 1 3290
Further levels in both directions
Below 1 3200 1 3125 1 3049 and 1 2969
Above 1 3290 1 3383 and 1 3445
Original post |
WMB | Watch For The Friday Rip | Index Futures Net Changes and Settlements
Foreign Markets Fair Value and Volume
In Asia 7 out of 11 markets closed higher Shanghai Comp 1 91 Hang Seng 0 65 Nikkei 0 18
In Europe 11 out of 13 markets are trading higher CAC 0 42 DAX 0 57 FTSE 0 58
Fair Value S P 0 36 NASDAQ 5 05 Dow 13 03
Total Volume 1 42mil ESH 183 SPH traded in the pit
Today s Economic Calendar
Today s economic calendar includes Mary Daly Speaks 10 15 AM ET John Williams NYSE WMB Speaks 10 15 AM ET Baker Hughes Rig Count 1 00 PM ET James Bullard Speaks 1 30 PM ET Richard Clarida Speaks 1 30 PM ET Patrick Harker Speaks 1 30 PM ET and John Williams Speaks 5 30 PM ET
S P 500 Futures Weak But Not Weak Enough
Chart courtesy of Chicagostock ES F Remember last Friday s Globex session market took out Thurs low by a pt 2729 only to see sellers fail to expand turning into fuel that led to squeeze Friday s cash session opened Thurs 2758 high forcing buyers to pay up Failure to hold 2763 leaves buyers at risk
During Wednesday nights Globex session the S P 500 futures ESH19 CME printed a high of 2798 00 a low of 2778 25 and opened Thursday s regular trading hours at 2777 75 The morning low print was 2769 00 and the morning high came in at 2780 50 right after the bell The S P s traded 2772 50 on the 10 30 European close and 2781 00 going into the noon hour
The early afternoon saw a low of 2764 25 a high of 2781 75 and a print of 2766 75 going into the final hour of the day The futures went on to trade 2767 75 on the 2 45 cash imbalance reveal then printed 2775 25 on the 3 00 cash close and settled the day at 2774 25 on the 3 15 futures close down 12 75 handles or 0 45
In the end the overall tone of the ES was weak In terms of the days overall trade total volume was a little higher with 1 4 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 | DAX Climbs To 11 Week High As Trump Waves Off Tariff Deadline | After posting strong gains last week the DAX index continues to rally on Monday Currently the DAX is at 11 492 up 0 31 on the day It s a very quiet start to the week with no eurozone or German events On Tuesday Germany releases GfK Consumer Climate
The DAX climbed 1 40 last week buoyed by stronger risk appetite Investors are increasingly optimistic that the U S China trade talks will culminate with an agreement On Sunday President Trump waved off the threat of raising tariffs against China on March 1 Trump tweeted that the sides had made substantial progress and if that trend continued he would meet with Chinese President Xi Chinese stocks jumped on the news and European stock markets are higher on Monday
A hold on new tariffs is great news for carmakers which responded with sharp gains on the DAX Volkswagen DE VOWG p has jumped 2 81 Daimler DE DAIGn has climbed 2 23 and BMW MI BMW is up 1 37
The news has been positive with regard to the U S China trade deadlock but domestically the numbers remain weak German data disappointed last week raising concerns that after a slowdown in the fourth quarter Q1 will also be a soft quarter On Friday Germany s fourth quarter GDP showed no change after a contraction of 0 2 in the third quarter The Ifo Business Climate survey slowed for a sixth successive month indicating concern in the business sector about the country s economic outlook
Manufacturing and inflation data also disappointed The manufacturing PMI contracted for a second straight month while German CPI declined in January for the first time in a year If the weak numbers continue investor risk appetite could fall and weigh on the DAX
Economic Calendar
Friday February 22
2 00 German Final GDP Estimate 0 0 Actual 0 0
4 00 German Ifo Business Climate Estimate 99 0 Actual 98 5
5 00 Eurozone Final CPI Estimate 1 4
5 00 Eurozone Final Core PI Estimate 1 1
10 15 US FOMC Member Williams NYSE WMB Speaks
10 30 ECB President Draghi Speaks
All release times are DST
Key events are in bold
DAX Monday February 25 at 6 45 EST
Previous Close 11 457 Open 11 504 Low 11 480 High 11 529 Close 11 492
Original post |
WMB | Buy These 4 Large Cap Value Funds For Amazing Gains | Large cap funds are better than small or mid cap funds for risk averse investors These funds have exposure to large cap stocks with a long term performance history and more stability than what mid or small caps offer Companies with market capitalization of more than 10 billion are generally considered large cap However due to their significant international exposure large cap companies might be affected by a global downturn
Investors looking for a bargain stocks trading at a discount are mostly interested in value funds which pick stocks that tend to trade at a price lower than their fundamentals i e earnings book value debt equity and pay out dividend In the long run value stocks are expected to outperform the growth ones across all asset classes and are less vulnerable to trending markets However investors interested in choosing value funds for yield should check the mutual fund yield as not all value funds comprise companies that use their earnings primarily to pay out dividend
Below we share with you four top ranked large cap value mutual funds Each has earned a Strong Buy and is expected to outperform its peers in the future Investors can
Edgar Lomax Value aims for long term capital growth while providing some income The fund mostly invests in large cap companies that are well organized The fund invests at least 85 of its net assets in equity securities which may comprise common stocks or securities that possess the characteristics of common stocks LOMAX has three and five year annualized returns of 13 8 and 10 respectively
As of February 2019 LOMAX held 60 issues with 5 1 of its assets invested in Pfizer Inc NYSE PFE
Carillon Eagle Growth Income A seeks long term capital growth first and then current income The fund primarily invests in common stocks of domestic companies that can be categorized as large or mid cap HRCVX has three and five year annualized returns of 13 6 and 9 1 respectively
HRCVX has an expense ratio of 0 98 compared with the category average of 1
Commerce Value invests the major portion of its assets in common stocks The fund primarily seeks capital appreciation and then current income CFVLX mostly invests in stocks that are part of the Russell 1000 Value Index that provides above average dividend yield CFVLX has three and five year annualized returns of 12 1 and 9 3 respectively
Joseph C Williams NYSE WMB is one of the fund managers of CFVLX since 1997
Parnassus Core Equity Investor aims for capital growth and current income by investing the majority of its net assets in a diversified portfolio of equity securities These equity securities comprise common and preferred stocks PRBLX has three and five year annualized returns of 12 6 and 10 1 respectively
PRBLX has an expense ratio of 0 87 compared with the category average of 0 95
To view the Zacks Rank and past performance of all large cap value mutual funds investors can
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WMB | Stocks Get The Green Light From Trade Talks | Monday March 4 Five things the markets are talking about
Global stocks have started the week on the front foot on signs of progress in U S China trade negotiations News of trade progress is also boosting oil prices which snapped a two week winning streak when they fell last week
This is a busy week for central bank s monetary policy announcements Investors will be looking to see if growth forecasts are cut by the ECB whether the RBA s is fearful of its housing weakness growth and if the Bank of Canada become slightly more dovish and worried about slowing growth
Dovish signals from the European Central Bank ECB and the Fed in recent weeks are also helping equities bounce off its December slump Downgrades to the ECB s staff forecasts should provide the backdrop for an announcement of extra bank funding
In currencies sterling found some support as some members of the European Research Group are conditionally prepared to back PM Theresa May s Brexit deal An immediate Brexit crash out is appearing less and less likely and the March 29 deadline looks to be pushed back
Stateside Friday s payrolls report is the highlight for U S economic data releases this week and investors will also get a look at the latest Beige Book on Wednesday
A number of Fed officials take the stage this week Mar 5 Kashkari and Barkin Mar 6 Williams NYSE WMB and Mester Mar 7 Brainard and on Friday evening Fed Chair Powell discusses monetary policy normalization and review
On tap Reserve Bank of Australia RBA monetary policy announcement Mar 4 5 AUD GDP Mar 5 CAD Trade balance Bank of Canada BoC rate announcement AUD retail sales Mar 6 European Central Bank ECB rate announcement Mar 7 U S non farm payrolls NFP CAD employment release Mar 8
1 Stocks get the green light
Equities have certainly had a big bounce this year The Dow Jones Industrial Average has gained 11 1 during the first two months of 2019 its best two months since August 2009 while the S P 500 has also rallied 11 its best two months since October 2010
In Japan the Nikkei rallied to a fresh three month high overnight as companies with exposure to China found support on signs Beijing and Washington are closing in on a trade deal to end their bitter year long tariff dispute The Nikkei share average gained 1 02 while the broader Topix gained 0 7
Down under Aussie shares climbed to a six month closing high overnight as investors hailed a possible end to the Sino U S trade conflict The S P ASX 200 index rallied 0 4 extending gains for a fourth consecutive session The benchmark also advanced 0 4 on Friday In S Korea the Kospi stock index fell 0 2 overnight after the summit between North Korea and the U S collapsed last week and investors moved to the Chinese market
In Asia Chinese shares were the biggest gainers with the blue chip index up as much as 3 while in Hong Kong the Hang Seng index added 0 7
Note China s CSI300 index rallied last week after index provider MSCI quadrupled its weighting for mainland shares in its global benchmarks
In Europe regional bourses trade higher across the board following a green light session in Asia and higher U S futures
U S stocks are set to open in the black 0 2
Indices Stoxx600 0 45 at 371 42 FTSE 0 51 at 7 123 39 DAX 0 09 at 11 610 89 CAC 40 0 51 at 5 290 46 IBEX 35 0 42 at 9 170 09 FTSE MIB 0 04 at 20 450 50 SMI 0 44 at 9 395 50 S P 500 Futures 0 20
2 Oil prices rise on trade deal hopes OPEC supply cuts gold higher
Oil prices start the week higher supported by output cuts by OPEC and on reports that the U S and China are close to a trade deal to end a bitter tariff row that has slowed global economic growth
Brent crude futures are at 65 25 a barrel up 18c or 0 3 from Friday s close U S West Texas Intermediate WTI crude futures are at 55 94 per barrel up 14c or 0 3
A recent survey by Reuters shows supply from OPEC fell to a four year low in February as top exporter Saudi Arabia and its allies over delivered on the group s supply pact while Venezuelan output registered a further involuntary decline data shows that exports are off by 1 5M bpd since last November
Stateside there are signs that the oil production boom which has seen crude output rise by more than 2M bpd since early 2018 to more than 12M bpd may slow down U S energy firms last week cut the number of oil rigs looking for new reserves to the lowest in almost nine months Some producers are looking to cut back on spending
Ahead of the U S open gold has edged a tad higher after falling below the critical 1 300 level on Friday as the big dollar dipped on the prospect of a trade deal between China and the U S Spot gold is up about 0 3 at 1 296 52 per ounce after printing its lowest price in four weeks at 1 289 91 on Friday U S gold futures are down 0 2 at 1 297 10 an ounce
Note The yellow metal fell 2 6 last week on a firmer dollar
3 Greek bond yields hit 12 year low on Moody s ratings boost
Greece s benchmark 10 year government bond yields dropped to their lowest in 12 years this morning after Moody s raised its rating last Friday encouraging investor optimism towards the eurozone s most indebted country Moody s lifted Greece s issuer ratings to B1 from B3 citing the effectiveness of the country s reform programme Greece s 10 year yield dropped to 3 622
Broader eurozone yields are generally flat to slightly lower though still trade atop of their recent two week highs on signs of a possible U S China trade deal Germany s 10 year Bund yield is a tad lower at 0 18 down from a four week high of 0 208 last Friday
Elsewhere the yield on 10 year Treasuries has backed up less than 1 bps to 2 75 while in the U K the 10 year Gilt yield has rallied 1 bps to 1 306
Note The U S Treasury will auction bills this week 3 and 6 month bills today and 4 and 8 week bills on March 7
4 Rising odds of May s deal succeeding is supporting the pound
The fact that some members of the European Research Group are conditionally prepared to back U K PM Theresa May s Brexit deal is helping the pound which is last up 0 3 at 1 3241 However the probability of her deal being voted through remains below 50 Many expect Article 50 will need to be extended for further negotiations
Note Tomorrow s U K services PMI 4 30 am ET is more important for the pound short term direction given that the U K economy relies on the dominant services sector
EUR USD is under pressure down 0 5 to 1 1337 pulling further away from last week s peak of 1 1422 though the pair is still trading within the range it s been in for the past several months Weak eurozone data of late and the Fed taking a break from hiking interest rates has many investors unsure on the future direction and content in sitting on the sidelines
Elsewhere the Japanese yen has declined less than 0 05 to 111 93 the weakest in almost 11 weeks while the offshore yuan has gained 0 3 to 6 6972 the largest gain in a week
5 Eurozone producer prices rise slightly faster than expected
Data this morning showed that eurozone producer prices rose slightly faster than expected last month pushed up by a jump in energy and capital goods
Eurostat said prices at factory gates in the 19 countries sharing the single unit rose 0 4 m m for a 3 y y increase Market consensus had expected a 0 3 monthly rise and a 2 9 annual gain
Digging deeper Eurostat said energy prices rebounded in January rising 0 4 after a 2 7 fall in December Capital goods prices rose 0 6 after no change in December
Original post |
WMB | MLB roundup Rays flirt with perfect game in beating O s | Ryan Yarbrough and Ryne Stanek combined to retire the first 24 Baltimore hitters and visiting Tampa Bay got homers from Austin Meadows and Michael Brosseau as the Rays defeated the Baltimore Orioles 4 1 in the finale of a four game series on Sunday afternoon Stanek went the first two innings as the opener and retired the first six hitters with two strikeouts Yarbrough 8 3 just called up from Triple A Durham entered and retired the Orioles in order through the eighth The left hander was trying to close out the first combined perfect game in major league history but Hanser Alberto singled on the first pitch of the ninth inning Yarbrough allowed one run on two hits in 6 1 3 innings and struck out six doing a good job of moving the ball in and out throughout the game Andrew Cashner was scheduled to make this start for Baltimore but the Orioles traded him to Boston on Saturday and recalled Tom Eshelman for this game Eshelman 0 1 was pitching in just his second major league game he struck out seven but gave up four runs on five hits in 5 2 3 innings Dodgers 7 Red Sox 4 12 innings Max Muncy walked with the bases loaded in the top of the 12th inning for the go ahead run as Los Angeles topped host Boston Los Angeles loaded the bases on a walk an interference call against pitcher Hector Velazquez along the first base line and a single before Muncy took ball four on the fifth pitch he saw from Velazquez 1 4 The Dodgers added two more insurance runs The win in the rubber contest of a three game series between last year s World Series opponents was Los Angeles second straight following a four game skid Boston dropped its second straight since a five game winning streak Phillies 4 Nationals 3 Maikel Franco hit a walk off homer with one out in the ninth inning to lift Philadelphia over visiting Washington The win by the Phillies salvaged the finale of the three game series and pulled them within 1 1 2 games of the National League wild card leading Nationals who lost for just the third time in the last 15 games Jay Bruce led off the ninth by striking out against left hander Matt Grace 0 2 But Franco wasted no time ending the game by homering well into the left field seats on Grace s next pitch It was the second career walk off blast and 100th career homer for Franco Indians 4 Twins 3 Carlos Santana belted a go ahead solo homer with two outs in the seventh inning as host Cleveland averted a series sweep with a victory over Minnesota Jose Ramirez ripped a two out RBI double in the first inning and Greg Allen and Tyler Naquin each had run scoring singles in the fourth for the Indians who have won seven of their past nine games Marwin Gonzalez highlighted his three hit performance with an RBI single and Max Kepler also drove in a run for the Twins who saw their lead in the American League Central dip to 6 1 2 games over Cleveland Yankees 4 Blue Jays 2 Gio Urshela accounted for three runs Masahiro Tanaka pitched six innings of two run ball and New York beat visiting Toronto The Yankees improved to 12 0 1 in their past 13 series at home since dropping two of three to the Chicago White Sox on April 12 14 New York also scored a run for the 173rd straight game one shy of matching the 1992 93 Philadelphia Phillies for the fourth longest streak without being shut out in baseball history Urshela helped New York to its 18th win in 23 games by producing a two run single in the second off Marcus Stroman 5 10 and scoring the tie breaking run on a wild pitch in the fifth Randal Grichuk and Eric Sogard homered for the Blue Jays who were held under three runs for the fifth time in six games Cubs 8 Pirates 3 Jason Heyward Albert Almora Jr and Kyle Schwarber each homered and Chicago pulled away to defeat visiting Pittsburgh Anthony Rizzo and Robel Garcia each added two hits and one RBI for the Cubs who completed a three game sweep Bryan Reynolds went 2 for 4 with an RBI to lead the Pirates at the plate Cubs left hander Jose Quintana 7 7 limited Pittsburgh to three runs on six hits in six innings Pirates right hander Trevor Williams NYSE WMB 3 3 drew the loss after giving up eight runs on 11 hits in 5 1 3 innings in his first game since returning from the paternity list after he and his wife welcomed an adopted daughter Astros 12 Rangers 4 Justin Verlander retired the final 15 batters he faced before Jose Altuve ignited a seven run seventh inning with a grand slam and visiting Houston earned a split of its four game series against Texas in Arlington Texas After scoring five runs in the first two innings the Astros stranded seven runners between the third and sixth innings prior to breaking out in the seventh In addition to Altuve s slam Yuli Gurriel added a two run homer in the seventh his 11th dinger in 15 games The seven run frame was the largest of the season for the Astros who took the final two games of the series After allowing two runs in the first inning Verlander 11 4 struck out the side in the second to get himself going He allowed two runs on four hits and one walk while striking out seven over six innings Angels 6 Mariners 3 Matt Thaiss hit his first major league home run a three run shot with two outs in the bottom of the eighth inning to break a tie as Los Angeles rallied over Seattle in Anaheim Calif despite the early exit of All Star Mike Trout Trout the two time American League MVP left the game after the second inning with what the team termed right calf tightness Trout who batted 429 12 for 28 with eight home runs over his previous seven games lined out in his only plate appearance Sunday The Angels listed him as day to day Kole Calhoun also homered for the Angels who swept the three game series Seattle s Austin Nola and Domingo Santana went deep but that wasn t enough to prevent the Mariners from suffering their fourth consecutive defeat and seventh loss in their past eight games Giants 8 Brewers 3 Right hander Tyler Beede won his second consecutive start and contributed an RBI single in a six run seventh inning guiding San Francisco over host Milwaukee Donovan Solano had a double and a single in the big seventh inning while Brandon Belt added a solo homer for the Giants who won two of three in the series to run their stretch of improved play to eight wins in their past 10 games Beede 3 3 allowed a third Brewers run in the last of the seventh before leaving the game He gave up seven hits in his 6 2 3 innings with seven strikeouts and no walks Christian Yelich hit his 32nd homer for the Brewers who lost for the seventh time in their past nine games Cardinals 5 Diamondbacks 2 Adam Wainwright pitched seven scoreless innings Paul Goldschmidt homered against his former team and St Louis held on to beat visiting Arizona in the rubber match of a three game series Wainwright who was pushed back from his scheduled Friday start because of back spasms controlled the Diamondbacks with his curveball allowing four hits all singles and one walk Wainwright 6 7 struck out seven Goldschmidt a six time All Star with Arizona who had been hitless in seven at bats in the first two games of the series went 2 for 4 His home run off Zack Greinke 10 4 in the third inning gave the Cardinals a 4 0 lead Greinke entered having not been scored on in 14 consecutive innings A s 3 White Sox 2 Chad Pinder scored when an errant throw on a possible forceout at second base rolled into foul territory with no outs in the bottom of the ninth inning sending host Oakland to victory against Chicago Ramon Laureano rolled a grounder to Chicago shortstop Jose Rondon on the play that ended the game Rondon s throw went into foul ground in right field allowing Pinder who had singled to lead off the inning to scamper home from first base Mark Canha had two hits for Oakland which has won 10 of 12 after earning a series sweep of the White Sox Eloy Jimenez smacked his 17th home run of the season for the White Sox Tigers 12 Royals 8 Jeimer Candelario s three run double highlighted a seven run third Detroit s highest scoring inning of the season and the Tigers snapped a five game losing streak by slugging past host Kansas City Harold Castro had four hits two runs scored and two RBIs for Detroit while Niko Goodrum supplied four hits a run scored two RBIs and two stolen bases Gordon Beckham blasted a two run homer as the Tigers piled up 19 hits Christin Stewart added two hits two runs scored and an RBI Nick Ramirez 4 3 gave up one run in three innings of relief and was credited with the victory Tigers starter Jordan Zimmermann gave up seven runs in four innings Jorge Soler drove in three runs for the Royals including his 25th homer Braves 4 Padres 1 Freddie Freeman hit a three run homer with two outs in the eighth inning to break a scoreless duel between rookie Mike Soroka and a trio of San Diego pitchers leading visiting Atlanta to a victory that completed a three game sweep Soroka 10 1 shut out the Padres on six hits and a walk with nine strikeouts over seven innings Left hander A J Minter picked up his fifth save San Diego rookie shortstop Fernando Tatis Jr had his first career four hit game Mets 6 Marlins 2 Two All Stars led struggling New York to its first road series win since early April with its win over Miami Starting pitcher Jacob deGrom 5 7 held the Marlins to a run on six hits with six strikeouts in five innings and Jeff McNeil the National League s batting average leader at 349 homered on the first pitch of the game and delivered an important outfield assist Robinson Cano added his second home run in as many days a solo shot in the seventh and went 4 for 5 to raise his batting average to 251 Garrett Cooper hit his 10th home run of the season and Rojas had three hits for the Marlins who have lost eight of 10 Rockies 10 Reds 9 Ryan McMahon had three hits and three RBIs to help lift host Colorado over Cincinnati in the deciding contest of its three game series in Denver Raimel Tapia Tony Wolters Trevor Story and Garrett Hampson had two hits apiece for the Rockies and Wolters and Daniel Murphy each drove in two runs Rockies starter Antonio Senzatela 8 6 earned the win despite allowing eight runs and seven hits in 5 1 3 innings
Reds starter Tyler Mahle 2 10 allowed 10 runs six earned and 12 hits in 4 1 3 innings He struck out two and didn t walk a batter Scooter Gennett had two hits and two RBIs for Cincinnati Kyle Farmer also had two hits and Jose Peraza blasted a pinch hit two run homer Field Level Media |
WMB | All up Queen Elizabeth s swans checked and counted | By Toby Melville and Helena Williams NYSE WMB
SHEPPERTON England Reuters Royal officials clad in scarlet outfits took to the River Thames in traditional boats on Monday for the annual Swan Upping ceremony an 800 year old tradition of counting the swans owned by Britain s Queen Elizabeth
Teams in old fashioned skiffs will row up a stretch of the river over the next five days to carry out the annual census of the birds shouting all up when they come across a mute swan and its family
The swans and their young cygnets are then counted weighed and checked for injury
I am pleased to see that the breeding season has begun very well this year with a high level of nesting activity on the river said David Barber the queen s Swan Marker
The ancient ceremony dates back to the 12th century when the English crown first claimed ownership of all mute swans which have long curved necks orange beaks and white feathers and were then considered a delicacy that would be served at banquets
Nowadays Britons no longer eat swans which are protected by law and the upping ceremony of has become more about wildlife conservation and educating children
Barber said there were a high number of swans dying or their nests being destroyed as a result of dog attacks which had led to appeals to dog walkers to keep their pets under control
The queen shares ownership of mute swans on the Thames with the old trade associations of the Vintners and Dyers who also join in the upping
However the monarch retains the right of ownership of all unmarked mute swans swimming in open waters although this is mainly exercised on certain stretches of the Thames
The Swan Uppers began their census taking in Sunbury west London and will end at Abingdon Bridge in Oxfordshire to the west of the British capital on Friday |
WMB | Banks must not wait to transition from using Libor Fed s Williams | NEW YORK Reuters Federal Reserve Bank of New York President John Williams NYSE WMB on Monday said the finance industry must not wait to stop using the Libor lending benchmark
U K regulators have set a 2021 deadline for financial firms including banks and investors to transition away from the London interbank offering rate or Libor Globally Libor is used to price contracts from home loans to credit cards worth 300 trillion
Libor is based on quotes submitted by banks Its reputation as the market standard was tainted in the wake of rigging scandals by traders which resulted in billions of dollars in fines for major global banks effectively signaling the demise of the 50 year old benchmark
Regulators are encouraging banks and other financial companies to tie contracts to alternative rates such as the Secured Overnight Financing Rate SOFR Williams said that transition needs to happen now even as details on how SOFR will be used are worked out
We need a mindset shift where firms realize that every new U S dollar Libor contract written digs a deeper hole that will be harder to climb out of he said an industry event
Fed officials have said they will start to assess banks Libor transition plans as part of the regular examination process The Securities and Exchange Commission on Friday also called on financial companies to stop using Libor |
WMB | Kremlin ally says prisoner swap could be soon if Ukraine serious | By Pavel Polityuk and Matthias Williams NYSE WMB KIEV Reuters Ukraine and Russia could swap prisoners within a matter of days including filmmaker Oleg Sentsov whom Moscow jailed on terrorism charges if Kiev shows the necessary political will a close Kremlin ally in Ukraine said Viktor Medvedchuk 64 the main face of Ukraine s Russia friendly opposition was speaking before a parliamentary election on Sunday where polls suggest President Volodymyr Zelenskiy s party will win but may fall short of a majority Medvedchuk s party will likely come second but he ruled out seeking a coalition with former comedian Zelenskiy telling Reuters their ideologies were too far apart Medvedchuk said Russian President Vladimir Putin respected Zelenskiy but was waiting to hear his position on solving the Donbass conflict which has claimed 13 000 lives in five years Ukraine and its western allies have pressed Moscow to release prisoners including Sentsov who was jailed in 2015 A native of Ukraine s Crimea peninsula who opposed its annexation by Russia in 2014 Sentsov says his original conviction was politically motivated Ukraine has dozens of prisoners in Russia though it is unclear how many Russians are being held in Ukraine It depends on the political will of the Ukrainian president Mr Zelenskiy If there is such a political will it is possible to negotiate and I affirm that it is possible to agree on this Medvedchuk said about prisoner swaps I know the opinion of the other side Russia it is possible to agree he added in the interview at his office in Kiev on Friday And this can be done in a few days FRIEND OF PUTIN Medvedchuk s words carry weight due to his friendship with Putin and record as a go between The Russian leader is godfather to Medvedchuk s daughter and the Ukrainian said they spoke on his most recent visit to Moscow last week A comic actor and political novice Zelenskiy 41 won Ukraine s presidency in April saying his priority was peace in Donbass where Ukrainian soldiers are fighting Russian backed fighters Zelenskiy and Putin spoke by phone for the first time last Thursday and discussed a possible prisoner exchange Zelenskiy has offered to talk with Putin in a neutral venue the Belarus capital Minsk Ukraine and Russia have previously held talks accompanied by Germany and France He Putin respects this person Zelenskiy but he does not yet know his position and therefore this respect is not enough it is necessary to know his position for the restoration of relations Medvedchuk said Zelenskiy has proposed widening the talks to include the United States and Britain Medvedchuk called that unrealistic and pre election PR though he said a meeting between Zelenskiy and Putin should happen as soon as possible A lawyer and businessman Medvedchuk is a senior figure in the Opposition Platform For Life party and is under investigation for treason over his views on Donbass
Western sanctions on Moscow have proved unproductive Medvedchuk added It means that one must look for another way it means one must sit down at the negotiating table |
WMB | Wimbledon champion Halep enjoys Romania s adulation | BUCHAREST Reuters Romania s presidency and the Orthodox Church awarded Wimbledon tennis champion Simona Halep their highest distinctions on Monday while hundreds of fans cheered her home after she blitzed U S opponent Serena Williams NYSE WMB at the weekend
Halep 27 became the first Romanian to win a Wimbledon singles title after stunning seven times champion Serena Williams 6 2 6 2 in the 56 minute match final on Saturday
I played my chance I did the best I could and that s why I managed to win a beaming Halep told reporters at Bucharest international airport clutching her trophy and flowers as fans shouted Bravo Simona
I ve been staying focused on my tactics Serena is the best player of all times
It was Halep s second Grand Slam title following her triumph at Roland Garros in Paris last year
The presidency awarded her the Star of Romania while the church gave her the Patriarchal Cross
I always make the sign of the cross and believe in God because nothing can be done without the help of God Halep said last year after winning in Paris |
WMB | Israeli minister accuses UK s Corbyn of Jew hatred | By Dan Williams NYSE WMB
JERUSALEM Reuters An Israeli official close to Prime Minister Benjamin Netanyahu accused British Labour Party leader Jeremy Corbyn of Jew hatred on Tuesday remarks likely to fuel acrimony in and around the opposition party as it struggles with anti Semitism probes
A BBC Panorama expose aired last week said Corbyn s office had interfered in independent party discipline processes aimed at rooting out anti Semitic conduct Labour the main opposition party in Conservative led Britain denied this
Netanyahu s rightist government has largely reserved comment on the furor over Corbyn a veteran and vocal pro Palestinian campaigner with aides citing reluctance to be perceived as meddling in Britain s internal affairs
But two Israeli officials parted from that reticence on Tuesday when asked about the BBC Panorama findings
We don t decide for the British who to vote for of course but we have to state our position I think Corbyn has proven himself more than once or twice to be a figure who quite hates the State of Israel and hates the Jewish people Zeev Elkin a member of Netanyahu s security cabinet and Likud party told Israel s Army Radio in an interview
People often try to hide behind this anti Israeli mantle and say We are not anti Semitic we re only criticizing the State of Israel and its policy And the example of what s happening in the Labour Party under Corbyn shows the extent to which this cover is no true cover
Israeli Deputy Foreign Minister Tzipi Hotovely said of the BBC Panorama findings We certainly see this as a very grave matter
There is no doubt that Labour in Corbyn s image is a very big problem for Israel s foreign relations she told Israel s Reshet 13 TV
Asked if Elkin s and Hotovely s comments reflected Israeli government thinking Netanyahu s office had no immediate response
Corbyn has long denied being anti Semitic an accusation also leveled against him on Monday by the frontrunner to become Britain s next prime minister Boris Johnson of the Conservative Party
The festering controversy has played a part in British Labour s failure to take electoral advantage of the Conservative government s turmoil over Brexit
Israel s Labour party which is also in the opposition last year announced it was breaking off relations with Corbyn citing what it described as his hostility towards the Jewish community and his very public hatred of Israeli government policies
After the BBC expose aired on Wednesday Israeli Labour leader Amir Peretz signaled his party would now consider all of the British counterpart party off limits
As far as I m concerned I have no intention of generating contacts with Britain s Labour as long as Corbyn is there I do not intend to allow anyone from among us to have contacts of that kind Peretz told Army Radio
I think he has crossed all the red lines |
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