Bloomberg:
- Spain Makes Progress on Repossessions Deal as Talks Continue. Spain’s government and the opposition plan to meet for a third time today, after they made progress toward a deal to stem home repossessions while Prime Minister Mariano Rajoy prepared to face a general strike. Talks between government and Socialist Party officials that began Nov. 12 will reconvene at 6:30 p.m. as the two sides work on “urgent measures” to limit evictions in cases of mortgage default, said a government spokesman, who asked not to be named in line with government policy. The government plans to pass a decree enforcing the measures at a cabinet meeting tomorrow, the spokesman said. Rajoy, who faces a general strike today amid mounting social disquiet at spending cuts and Spain’s economic crisis, pledged measures to stem evictions on Nov. 9 after a woman committed suicide as officials tried to seize her home. Rajoy is trying to respond to outrage over foreclosures amid a taxpayer- funded bank bailout without inflicting further losses on a financial system crippled by the collapse of a debt-fueled housing boom.
- China Vehicle Prices Fall for Sixth Straight Month, NDRC Says. China's vehicle prices fell for the sixth straight month in October, according to the National Development Reform Commission, as dealerships cut prices to clear inventories. Prices of locally produced vehicles fell 1.3% from a year earlier, with passenger-vehicle prices dropping 1.8%, the NDRC's price monitoring bureau said. "Market demand this year has been weak and dealers' inventories at both the local carmakers and foreign brands have been piling up," Cheng Xiaodong, head of vehilce-price monitoring at the NDRC, said in an interview. Average vehicle prices in the world's largest auto market may again come under pressure in the fourth quarter as dealerships slash prices further to meet year-end sales goals, the NDRC said. Vehicle sales growth may lag behind gdp expansion this year, the China Association for Automotive Manufacturers forecast Oct. 28.
- Most Chinese Stocks Decline as Party Concludes Congress. Most Chinese stocks fell as the ruling party’s meeting to choose new leaders drew to a close. Consumer discretionary shares slid while aluminum stocks rose. China International Travel Service Corp. (601888), the largest tourism company by market value, tumbled by the 10 percent daily limit on a plan to sell new shares. Aluminum Corp. of China Ltd. jumped 5.5 percent after the China Securities Journal reported the government will start buying aluminum to add to reserves. Vice President Xi Jinping and Vice Premier Li Keqiang were re- appointed to the central committee today, while the members of the Politburo Standing Committee, the top decision-making body, will be elected tomorrow in Beijing. “The party congress hasn’t generated any exciting news for economic reforms and the market is a bit disappointed,” said Wang Weijun, a strategist at Zheshang Securities Co. in Shanghai.
- Gold to Advance to $2,000 on Money Printing, Deutsche Bank Says. Gold will probably rally to a record above $2,000 an ounce next year as central banks ramp up stimulus to sustain the recovery, according to Raymond Key, London-based global head of metals trading at Deutsche Bank AG. “We’ll take out $2,000, we’ll go higher,” Key said in an interview in Hong Kong, where he attended the London Bullion Market Association’s annual conference. “That’s on the view that they’ll continue to print money.”
- Treasuries See U.S. Falling Over Cliff as Yields Converge. The biggest Treasury rally in five months is underlining market concern that President Barack Obama and House Republicans will fail to avert $607 billion in mandated spending cuts and tax increases starting Jan. 1. Yields on 10-year Treasuries dropped the most in one day since May to 1.62 percent after Obama’s re-election Nov. 6. A figure below 1.7 percent indicates that investors expect gross domestic product to shrink by 0.3 percent next year as the so- called fiscal cliff takes effect, according to JPMorgan Chase & Co.
- Palestinian Monetary Authority Readies for UN Bid Repercussions. Palestinian Monetary Authority Governor Jihad Al Wazir said he has readied the financial system to withstand the repercussions that may follow a planned statehood bid at the United Nations as soon as this month. Palestinian Authority President Mahmoud Abbas said Nov. 11 he’ll resist global pressure to drop the bid or wait until after Israeli elections on Jan. 22. That decision may spur Israel to halt the transfer of tax revenue to the Palestinian Authority, Israeli Finance Minister Yuval Steinitz said this week.
- Barak Says Israel to Hit Hamas Until Deterrence Restored. Israeli Defense Minister Ehud Barak, who directed Israel’s 2008 ground invasion of the Gaza Strip, is considering new measures to stop missile attacks from the Hamas- ruled territory. Between meetings with top generals and fellow cabinet ministers, Barak said that military operations will intensify if Palestinian rocket barrages continue, even as Egypt’s Muslim Brotherhood leadership seeks to broker a cease-fire.
- Debt-Fueled U.S. Car Sales May Need Income Help: Economy. A rebound in U.S. auto sales has been buoyed by the return of easy lending, even to borrowers with flawed credit histories. Some economists question whether the gains can be sustained without a boost in hiring. Auto loans were up 5.5 percent in the second quarter from the same time last year, with riskier buyers accounting for 43.9 percent of the total, up from 42 percent in 2008, according to Experian Plc. By contrast, hourly wages for non-managers climbed 1.1 percent on average over the past 12 months, the least since records began in 1965, Labor Department figures show.
- Commercial Property Faces Risk on Yields, Executives Say. Rising risks, including an eventual increase in interest rates, are leading commercial-property investors to borrow less and expect lower returns, said real estate executives including Rob Speyer and Richard J. Mack. AREA Property Partners LP isn’t building U.S. offices without signed tenants, even as commercial values increase, Mack, chief executive officer for North America, said at the Bloomberg Commercial Real Estate Conference today in New York. Tishman Speyer Properties LP has used “average leverage” of less than 50 percent in deals since 2010, said Speyer, the New York-based office developer’s co-chief executive officer.
- Re-Elected Obama Has No Reason to Block Keystone Pipeline. Environmentalists who are against building the Keystone XL oil pipeline from Alberta, Canada, to the U.S. Gulf Coast, have called a march on Washington this weekend to demand that President Barack Obama again reject it. This time, it is the opponents the president should turn down. He should move to get the 1,700-mile, $7 billion underground pipeline approved within the next couple of months.
- Fiscal Cliff: Live Stream.
- Business Leaders Spooked by 'Fiscal Cliff'. Year-End Package of Tax Increases and Spending Cuts Surpasses Euro-Zone Woes as Many Chief Executives' Top Concern.
- Geithner Says Higher Tax Rates Key to Deficit Plan. Treasury Secretary Timothy Geithner on Tuesday said higher tax rates on upper-income Americans were a central part of the White House's deficit-reduction proposal because there was no way to raise enough revenue by only limiting tax breaks.
- Scandal Entangles A Second General. The adultery scandal that led to the downfall of David Petraeus as CIA director widened Tuesday as President Barack Obama put on hold his nomination of Marine Gen. John Allen as commander of the North Atlantic Treaty Organization, one of the world's top military posts.
- Natural-Gas Cars to Get Home Fueling.
- Beijing Wields Big Stick Against Megaships. How China Closed Its Ports to Brazilian Miner Vale's Huge Iron-Ore Vessels.
- Mosaic(MOS) cuts Q2 sales-volume view on slower demand. Mosaic Co. cut its fiscal second-quarter potash and phosphates sales volume guidance, pointing to weakened demand in the international crop nutrient market, although the fertilizer producer believes the demand is simply delayed. Shares slipped 5.1% to $48.15 after hours. Through the close, the stock has fallen 12% over the past three months.
- China consensus is dead wrong, says Duncan. Bangkok-based economist and author Richard Duncan says a chorus of economists pointing to a rebound in China may well be proven wrong, as he believes the nation is headed into a serious crisis.
- Is $250,000 a Year Rich? Let's Break It Down. It’s no surprise that working couples in big cities are struggling to raise children while paying off mortgages and student debt. What is surprising is that they’re lumped in with the so-called “wealthy” if they jointly earn $250,000 a year.
- US Heads for Fifth Straight Trillion-Dollar Deficit. The federal government started the 2013 budget year with a $120 billion deficit in October, an indication that the nation is on a path to its fifth straight $1 trillion-plus annual deficit.
- In Rare Loss, Seth Klarman Dumps Nearly Half Hewlett Packard Holdings.
- Greece Renegs On Troika Terms Hours After Getting Bailout Extension.
- Summing It All Up... Firstly, we have reached the limit in the credit backing of our financial, monetary and banking system.
- Obama To Demand $1.6 Trillion In Tax Hikes Over Ten Years, Double Previously Expected.
- These Are The Obama Tax Hikes That Will Really Hurt.
- The Republicans Will Fold If Obama Drives The Country Off The Fiscal Cliff. No. Obama shouldn't gamble with the economy: The left is pushing Obama to "adopt a strategy of confrontation and conquest," but that would be the height of irresponsibility, says David Brooks at The New York Times. "It's reckless to think you can manufacture an economic crisis for political leverage and then control the cascading results." While it would help Obama ram through tax hikes on the wealthy, it would hurt his second-term agenda, sowing "such bitterness that it would be the last thing he'd pass for the rest of his term." Resolving the fiscal cliff will "take a dealmaker, not a warrior."
- 28 Million Americans Could Be Hit By This Unintended Tax Hike, The IRS Warns. Some 28 million Americans including some in the middle class would face an unintended tax hike if a U.S. tax aimed at ensuring the wealthy pay a minimum isn't fixed before the end of the year, the U.S. tax commissioner said on Tuesday.
- Homebuilders Have Been Some Of The Hottest Stocks In The World — But One CEO Just Sent Out A Big Caution Warning.
Reuters:
- Intel(INTC), Qualcomm(QCOM) may invest $378 mln in Sharp-sources. U.S.-based Intel Corp and Qualcomm Inc are in talks to jointly i nvest about 30 billion yen ($378 million) in debt-stricken Japanese consumer electronics maker Sharp Corp, two sources familiar with the matter said on Wednesday. Details of the talks were not known, but Sharp, whose displays are used in Apple Inc's iPads and iPhones, is looking to small displays to spark a revival in its fortunes and sees the new generation of high-end laptops as a fresh market.
- Fed no safety net if US goes over fiscal cliff -Fisher. The Federal Reserve cannot do much more to shelter the U.S. economy if the country goes over a year-end fiscal cliff of tax hikes and government spending cuts, a senior U.S. central bank official said on Tuesday. "It would be nice to have the fiscal authorities get their act together so we wouldn't be dependent on monetary policy. There is a limit to what we can do," Dallas Federal Reserve President Richard Fisher told CNBC television. "I do not see us as that safety net."
- Anti-austerity strikes sweep southern Europe. Spanish and Portuguese workers will stage the first coordinated general strike across the Iberian Peninsula on Wednesday, shutting transport, grounding flights and closing schools to protest against spending cuts and tax hikes. Unions in Greece and Italy also planned work stoppages and demonstrations on a "European Day of Action and Solidarity" against austerity policies, which labour leaders blame for prolonging and worsening the continent's economic crisis. The international coordination shows "we are looking at a historic moment in the European Union movement," said Fernando Toxo, head of Spain's biggest union, Comisiones Obreras.
- Cisco(CSCO) sees slower growth in second quarter. Cisco Systems Inc reported first quarter results that beat estimates but expects flat earnings and slower revenue growth for the current quarter.
- US Conference Board fears BRICS miracle over as world faces decade-long slump. The catch-up boom in China, India, Brazil is largely over and will be followed by a drastic slowdown over the next decade, according to a grim report by America’s top forecasting body.
- Warning from OPEC Over US Oil Production. The head of Opec warned yesterday that if predictions that the United States will surpass Saudi Arabia as the world's biggest oil producer continue, the result will be a reduction in investment by his members that will hit oil consumers. "If this message keeps coming, there will be no investment" from Opec members, said Abdalla El Badri, Opec's secretary general, adding that "consumers will lose". Mr El Badri's rebuke came less than 24 hours after a prediction by the International Energy Agency (IEA), the industrialised nations' adviser on energy policy, that US oil production will exceed that of Saudi Arabia within five years.
- None of note
- Asian equity indices are -.50% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 126.50 +2.5 basis points.
- Asia Pacific Sovereign CDS Index 91.25 +2.0 basis points.
- FTSE-100 futures -.32%.
- S&P 500 futures +.31%.
- NASDAQ 100 futures +.61%.
Earnings of Note
Company/Estimate
- (PETM)/.63
- (SPLS)/.45
- (ANF)/.60
- (NTAP)/.48
- (WSM)/.45
8:30 am EST
- The Producer Prices Index for October is estimated to rise +.2% versus a +1.1% gain in September.
- The PPI Ex Food & Energy for October is estimated to rise +.1% versus unch. in September.
- Advance Retail Sales for October are estimated to fall -.2% versus a +1.1% gain in September.
- Retail Sales Less Autos for October are estimated to rise +.2% versus a +1.1% gain in September.
- Retail Sales Ex Auto & Gas for October are estimated to rise +.4% versus a +.9% gain in September.
- Business Inventories for September are estimated to rise +.6% versus a +.6% gain in August.
- Minutes of FOMC Meeting.
- None of note
- The Fed's Williams speaking, Eurozone Industrial Production/Portugal GDP/UK unemployment reports, US Mortgage Delinquencies report, weekly MBA Mortgage Applications Index, Morgan Stanley TMT Conference, Jefferies Healthcare Conference, Morgan Stanley Chemicals Conference, UBS Tech/Services Conference, JPMorgan Services Conference, UBS Growth Conference, (FB) lockup expiration and the (GWW) analyst meeting could also impact trading today.
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