Bloomberg:
- Emerging-Market Economic Growth Stays Sluggish, HSBC Says. Emerging-market economic growth remains “muted” with a confidence gauge just above the threshold signaling expansion, according to HSBC Holdings Plc. (HSBA) The HSBC Emerging Markets Index rose to 50.8 in September from 50.7 in August, the bank said in a report published today, citing a survey of purchasing managers. That’s still the third-lowest reading in more than four years. A value above 50 indicates expansion and below 50 signals contraction. The index is compiled by London-based Markit Economics and tracks conditions at more than 5,000 companies.
- ICBC’s Basel III Bond Falling Most Reflects Unease: China Credit. Asia’s first Basel III dollar bonds, sold by Industrial & Commercial Bank of China Asia Ltd., are the region’s worst-performing new notes this month, showing investor concern tighter regulations could cause losses. The subordinated debt, priced on Oct. 2, fell 1.1 cents on the dollar as of Oct. 7, more than any other Asian notes issued in October, prices compiled by Bloomberg show. The drop contrasts with a 0.1 percent gain for junior bonds in the region, according to Bank of America Merrill Lynch indexes.
- Taiwan Warns That China Could Mount Successful Invasion by 2020. China may be able to successfully invade Taiwan by 2020 as it develops technology to prevent allies such as the U.S. from coming to the island’s aid, the Taiwanese defense ministry said. A military modernization campaign has seen China’s People’s Liberation Army enhance its ability to make long-range precision strikes and develop so-called area-denial technology, the ministry said in its 2013 National Defense Report.
- India Unrest Puts 21 Million in Dark as Outages Threaten Google(GOOG). Protests against a plan to split a southern Indian state entered a fourth day, leaving about 21 million people without electricity as outages threatened to affect technology companies like Google Inc. (GOOG) and Microsoft (MSFT) Corp. Striking workers shuttered power plants and impeded distribution, extending blackouts that started Oct. 6 in six districts of Andhra Pradesh. The protesters oppose Prime Minister Manmohan Singh’s move last week to divide the state before national elections due by May.
- Yum(YUM) Profit Declines 68% as Same-Store Sales Slump in China. Yum! Brands Inc., whose KFC fast-food chain is facing more competition in China, said third-quarter profit fell 68 percent and cut its 2013 earnings forecast as same-store sales dropped in the Asian nation. Net income (YUM:US) decreased to $152 million, or 33 cents a share, from $471 million, or $1, a year earlier, the Louisville, Kentucky-based company said today in a statement. Excluding certain items, profit was 85 cents a share. Analysts projected 92 cents, the average of 23 estimates (YUM:US) compiled by Bloomberg.
- South Korea Confirms North Has Restarted Main Nuclear Site. North Korea restarted its Yongbyon nuclear reactor, a South Korean lawmaker said, as the North put its troops on high alert and said it’s “ready to confront” the U.S. and the South over naval drills set for this week. The National Intelligence Service informed lawmakers of the restart, ruling New Frontier Party lawmaker Cho Won Jin said by phone yesterday. Lawmakers were also told that North Korean leader Kim Jong Un told his cabinet he plans to seek reunification with the South by force in three years, Cho said.
- Asian Stocks Outside Japan Decline on U.S. Gridlock, IMF. Asian stocks outside Japan fell on concern the impasse over the U.S. debt limit may lead to a default and after the International Monetary Fund cut its global outlook. Japanese shares reversed losses after the yen weakened. The MSCI Asia Pacific ex-Japan Index slid 0.3 percent to 465.60 as of 12:36 p.m. in Tokyo, while the broader regional gauge was little changed at 138.49.
- Rubber Retreats as IMF’s Growth Outlook Weakens Demand Outlook. Rubber retreated from a one-week high after the International Monetary Fund cut its global growth outlook for this year and next, raising concern demand may weaken for the commodity used in tires. The contract for March delivery on the Tokyo Commodity Exchange fell as much as 1.1 percent to 261.2 yen a kilogram ($2,688 a metric ton) and traded at 263.1 yen at 10:30 a.m.
- Rebar Trades Near 3-Month Low as IMF Cuts China Growth Outlook. Steel reinforcement-bar futures traded near the lowest level in three months after the International Monetary Fund cut its forecast for China’s economic growth, damping demand for the building material. Rebar for delivery in January on the Shanghai Futures Exchange fell as much as 0.5 percent to 3,580 yuan ($585) a metric ton and traded at 3,585 yuan at 10:14 a.m. local time. Futures fell to 3,541 yuan yesterday, the lowest for a most-active contract since July 2.
- Janet Yellen, a Backer of Pushing the Fed's Policy Boundaries. Expected Nominee for Central-Bank Chief Has Easy-Money Leanings. Janet Yellen's computer screen saver on a neat desk in her office at the Federal Reserve is a photo of the garden at her home in Berkeley, Calif. If the Senate confirms her to be the central bank's next leader, the colorful patch of ground will remain a distant memory for much of the next four years. These days Ms. Yellen is more focused on helping other things grow, such as consumer spending, investment and most of all jobs—all reasons President Barack Obama plans to announce Wednesday he will nominate the methodical and meticulous economist to run the Fed.
- Obama to Tap Yellen as Fed Chief. Streaming Coverage.
- Bill Comes Due for Brazil's Middle Class. Debt Woes Help Explain Why the Country's Once-Dazzling Growth Has Fizzled.
- Jos. A. Bank(JOSB) Is a Possible Suitor for Men's Wearhouse(MW). Proposed Deal Would Create Nationwide Powerhouse in Men's Apparel.
- Paul Ryan: Here's How We Can End This Stalemate. Both Reagan and Clinton negotiated debt-ceiling deals with their opponents. We're ready to negotiate. The president is giving Congress the silent treatment. He's refusing to talk, even though the federal government is about to hit the debt ceiling. That's a shame—because this doesn't have to be another crisis. It could be a breakthrough. We have an opportunity here to pay down the national debt and jump-start the economy, if we start talking, and talking specifics, now. To break the deadlock, both sides should agree to common-sense reforms of the country's entitlement programs and tax code.
- Boehner dismisses Obama's position on fiscal crisis as 'not sustainable'. House Speaker John Boehner dismissed President Obama’s position on the fiscal crisis as “not sustainable” Tuesday, only hours after Obama held a non-press conference to say he was willing to compromise but not negotiate. "What the president said today was, if there's unconditional surrender by Republicans, he'll sit down and talk with us. That's not the way our government works," Boehner said. The speaker said he wants conversations about spending cuts to start "now," not "next week" or "next month."
- Boehner: Can't raise debt ceiling without addressing borrowing. (video) House Speaker John Boehner on Tuesday said he was disappointed with what he called President Barack Obama's refusal to negotiate on a government budget.
ValueWalk:
Business Insider:
Washington Post:
- U.S. plans to curb military aid to Egypt. The Obama administration is expected to announce curbs on most nonessential military aid to Egypt within a few days, a U.S. official said Tuesday, marking a stunning turnaround for U.S. relations with one of its key Arab allies. The official would not provide details or figures about the aid to be suspended, but the action is likely to cover most of the $1.2 billion in military assistance to Egypt. The official spoke on the condition of anonymity because Congress has not been fully notified, and the announcement could be postponed.
- Obama would veto bill for new deficit-reduction panel -White House. U.S. President Barack Obama would veto a bill passed by the House of Representatives to create a bipartisan panel that would make recommendations on reducing the country's deficit and examine the debt limit, the White House said on Tuesday.
Obama takes on coal with first-ever carbon limits
Read more at http://www.philly.com/philly/news/politics/20130919_ap_0f857b20e0c144a5a1e1b9dddc9f9d72.html#YRThyDOhArykUeYy.99
Telegraph:Read more at http://www.philly.com/philly/news/politics/20130919_ap_0f857b20e0c144a5a1e1b9dddc9f9d72.html#YRThyDOhArykUeYy.99
- IMF sours on BRICs and doubts eurozone recovery claims. Fund admits that emerging markets have exhausted catch-up growth models.
- China Must Manage Property Market Expectations. China must manage expectations about rising prices to stabilize the property market, a front-page commentary by reporter Zhang Min said. Information on property market polices should be clearly provided as soon as possible to prevent expectations of policy loosening.
Piper Jaffray:
- Raised (KORS) to Overweight, target $90.
- Lowered (RL) to Neutral, target $170.
- Asian equity indices are -.50% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 153.0 +4.0 basis points.
- Asia Pacific Sovereign CDS Index 117.5 +.25 basis point.
- FTSE-100 futures -.38%.
- S&P 500 futures +.28%.
- NASDAQ 100 futures +.25%.
Earnings of Note
Company/Estimate
- (COST)/1.46
- (FDO)/.84
- (DFRG)/.11
- (FAST)/.41
- (RT)/-.05
- (PGR)/.36
10:30 am EST
- Bloomberg consensus estimates call for a weekly crude oil inventory build of +940,000 barrels versus a +5,472,000 barrel gain the prior week. Gasoline supplies are estimated to rise by +570,000 barrels versus a +3,495,0000 barrel gain the prior week. Distillate supplies are estimated to fall by -995,000 barrels versus a -1,680,000 barrel decline the prior week. Finally, Refinery Utilization is expected to fall by -.94% versus a -1.3% decline the prior week.
- Minutes from Sept 17-18 FOMC Meeting.
- None of note
- The Fed's Evans speaking, ECB's Draghi speaking, Eurozone Industrial Production, UK GDP, Australia Unemployment, 10Y T-Note auction, weekly MBA mortgage applications, (MDCO) analyst day, (HPQ) analyst meeting, (NKE) investor day and the (CVX) interim update could also impact trading today.
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