Late-Night Headlines
Bloomberg:
The cost of protecting investors in corporate and government bonds in Asia-Pacific region against default declined after U.S. stocks rallied the most in two weeks. The Markit iTraxx Japan index fell 12.5 basis points to 247.5 at 9:07 a.m. in Tokyo, according to prices from Credit Suisse Group AG. The Markit iTraxx Australia index was quoted 20 basis points lower at 255 as of 12:02 p.m. in Sydney, Citigroup Inc. data show. The Asia index of 50 investment-grade borrowers outside Japan was 10 lower at 365 basis points at 9:00 a.m. in Hong Kong, while the region's high-yield benchmark fell 50 basis points to 1,200, Barclays Capital prices show.
- Mitsui O.S.K. Lines Ltd., Japan's most profitable shipping line, may mothball some of its largest vessels for the first time in over two decades as charter rates have fallen 98 percent over the last five months. The world's largest merchant fleet operator may also scrap seven of its capesize ships, used for transporting iron-ore and coal, from a fleet of about 100, Masafumi Yasuoka, senior executive officer at the shipping line, said in an interview in Tokyo yesterday.
- The price of palm oil may average 32% lower next year, CLSA Asia-Pacific Markets said.
- Qatar Investment Authority, the country's $60 billion sovereign wealth fund, plans to make more real estate acquisitions in 2009 as global prices decline and investors sell assets. ``We are looking for prime properties in major cities at distressed prices,'' said Navid Chamdia, the authority's head of real estate, in an interview at the Real Estate Investment World conference in Tokyo. ``We will continue to invest in attractive assets we are comfortable with.''
- U.S. corporate bonds issued in October are rallying in a sign that credit markets may be recovering after the worst month for investment-grade debt in more than 28 years. Prices on bonds sold by International Business Machines Corp., PepsiCo Inc., Diageo Plc and Verizon Communications Inc. climbed as much as 9.6 percent since they were issued in October, according to Trace, the bond-pricing service of the Financial Industry Regulatory Authority.
- Senators Charles Schumer and Christopher Dodd offered conflicting opinions on the fate of the auto-rescue plan, with Schumer saying legislation would likely succeed with some Republican support and Dodd indicating the measure may not have the votes to pass.
- Exports from Asia's developing economies may decline 20 percent over the next year as a deepening global slowdown hurts demand for the region's products, Nomura International (HK) Ltd. said. Exports from Asia's emerging economies have held up until recently, as shipments to other destinations made up for weaker sales to the U.S. That's changing as the economic downturn becomes ``global and synchronized,'' and a slump in commodity prices erodes incomes in oil-producing nations, Subbaraman said.
Wall Street Journal:
Congress is about to meet in a lame duck session to try and help the economy by spending some extra money. John Dingell, the Dem who chairs the powerful House Energy and Commerce Committee, held a hearing today to share his ideas. Namely: Shell out some extra cash for Medicaid and NIH.
- The U.S. economy is in the midst of the worst part of the recession, but growth may return by the second half of next year, according to economists in the latest Wall Street Journal forecasting survey.
- Mild-mannered Federal Reserve Chairman Ben Bernanke will go down as one of the most controversial central bank chiefs in American history, but economists have an early message for President-elect Barack Obama: Don't dump him. By a ratio of 3-to-1, the 54 private economists surveyed by The Wall Street Journal said Mr. Bernanke should be reappointed by Mr. Obama when the Fed chairman's term comes up in January 2010.
- Bank of America(BAC) Lures Merrill Brokers With Bonuses
- For the first time in recent memory, luxury-goods makers are cutting prices on designer apparel, shoes and handbags in the U.S. market.
- Vladimir Putin's Olympic dream has run into tough sledding. As this Soviet-era Black Sea resort town prepares to host the 2014 Winter Games, the global credit crisis is casting a chill on some of the biggest private investors in the Olympics infrastructure.
- The auto industry's quest to launch a new generation of electric cars may get a big boost from a sector with much to gain from getting advanced vehicles on the road: U.S. electric utilities.
CNBC.com: Hedge fund investor William Ackman has taken a 33.1 million share stake in American International Group as of Sept. 30, a regulatory filing filed by his investment vehicle Pershing Square Capital Management showed. The stake gives Ackman a 1.2 percent ownership in AIG(AIG), apart from the new 407,000 call options he also reported. Ackman also divested his 873,000 put option positions in bond insurer MBIA(MBI), a company he has sharply criticized in the past.
CNNMoney.com: Jittery investors began taking money out of stock-based mutual funds again this week, after a brief letup last week. Investors pulled $31.8 billion out of equity-based mutual funds during the week ended Nov. 12, compared with an inflow of $2.2 billion the prior week, according to TrimTabs Investment Research.
- Gasoline prices fell to their lowest level in 21 months Thursday, sinking below the $2.20-a-gallon mark, according to a survey for a motorist group. The average price of unleaded regular gas dropped 2.4 cents to $2.178 a gallon from $2.202 the day before, according to the survey from motorist group AAA. The last time gas was this low was Feb. 5, 2007, when the AAA reported the price at $2.177 a gallon. Gas has fallen 57 straight days in the AAA survey, since just after Hurricanes Gustav and Ike battered the Gulf Coast in September. Prices have dropped 47.06%, or $1.936, from their record high of $4.114 a gallon set July 17, according to AAA.
USA Today.com:
- It is last call for investors to ask for their money back from poorly performing hedge funds. Whether that is a bullish or bearish sign for battered stocks is anyone's guess. Wall Street hopes the passing of the Nov. 15 deadline — the last day for many investors to make a request to redeem hedge fund shares payable at year's end — could mark the beginning of the end of "forced selling" by funds to raise cash. If the selling recedes, it could help lift some of the downside pressure on stocks. Forced selling has been blamed for sharp stock price swings and plunging asset values in the financial crisis. Investors have redeemed an estimated $85 billion from hedge funds through the end of the third quarter, says Charles Gradante, co-founder of hedge fund adviser Hennessee Group. About 100 proposed coal-fired power plants in the USA may be required to limit their greenhouse gas emissions after the Environmental Protection Agency was blocked Thursday from issuing a permit for a proposed Utah plant without addressing the issue of global warming.
Reuters:
- Four top Citigroup Inc (C) executives, including Chief Executive Vikram Pandit, on Thursday bought 1.3 million of the bank's common shares, a person familiar with the matter said, as the stock's price fell to a 13-year low. Pandit bought 750,000 common shares and 100,000 preferred shares, while institutional clients chief John Havens bought 250,000 shares, the person said. Two other executives bought a total of 300,000 common shares, the person said.
- The chief executive of MBIA Inc (MBI) bought 100,000 of the bond insurer's shares, according to a regulatory filing on Thursday. The purchase raised CEO Jay Brown's ownership to 2.7 million shares, according to the U.S. Securities and Exchange Commission filing.
- A bid by global leaders to push forward plans this weekend to erect a firewall against future financial crises like the one now threatening the world economy will quickly run into tough political realities that will limit progress.
- Kohl's Corp (KSS) and Nordstrom Inc (JWN), two large U.S. retailers, reported sharply lower quarterly profits on Thursday and warned of worse-than-expected results for the rest of the year, just weeks before the critical holiday shopping season gets under way.
Financial Times: Emaar Properties, one of the world's largest property developers, is preparing to cut jobs to help it steer through the biggest crisis in its 11-year history amid a sharp fall on Dubai's stock markets and a cooling of the Gulf state's property sector. The company, which accounts for about 10 per cent of the Dubai stock market, on Thursday said it was reviewing its 5,000-strong workforce in light of the weakening Dubai property market, which is declining for the first time since foreigners were allowed to buy property in 2002.
BBC:
- Up to 2,000 extra British troops are likely to be sent to Afghanistan next year, the BBC has learned.
The Independent:
- The five best-paid hedge fund managers – who between them made $12.6bn last year, even as the financial world began to crumble around them – were hauled before the US Congress yesterday and assailed over their huge salaries, their tax perks and their contribution to the credit crisis that has engulfed the globe.
Shanghai Securities News:
- The impact of China
Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (URBN), target $26.
RBC Capital:
- Investors should buy the US dollar and sell the Swiss franc as the pair trades independently of equity markets and the Swiss National Bank has expressed concern about the strength of its currency. The dollar-franc is one of eight major currency pairs “that is not currently taking its cues from global equity markets, with short-term correlations close to zero,” wrote London-based Adam Cole, head of global currency strategy at RBC. “This is one of the few ways of playing our fundamentally US dollar-positive view, whilst at the same time avoiding exposure to short-term equity market volatility.”
Night Trading
Morning Preview
US AM Market Call NASDAQ 100 Pre-Market Indicator/Heat Map Pre-market Commentary Pre-market Stock Quote/Chart Before the Bell CNBC Video Global Commentary WSJ Intl Markets Performance Commodity Movers Top 25 Stories Top 20 Business Stories Today in IBD In Play Bond Ticker Economic Preview/Calendar Daily Stock Events Upgrades/Downgrades Rasmussen Business/Economy Polling
Earnings of Note
Company/EPS Estimate
- (A)/.59
- (HEW)/.50
- (JCP)/.53
- (JOBS)/.11
Economic Releases
8:30 am EST
- The Import Price Index for October is estimated to fall 4.4% versus a 3.0% decline in September.
- Advance Retail Sales for October are estimated to fall 2.1% versus a 1.2% decline in September.
- Retail Sales Less Autos for October are estimated to fall 1.2% versus a .6% decline in September.
10:00 am EST
- Preliminary Univ. of Mich.
- Business Inventories for September are estimated to fall .1% versus a .3% rise in August.
Upcoming Splits
Other Potential Market Movers
BOTTOM LINE: Asian indices are mostly higher, boosted by commodity and technology stocks in the region. I expect US
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