Bloomberg:
- Crimea Ignores Economic Pain to Embrace Putin in New Russia Era. In the Crimean resort town of Alushta, realtor Janna Voitenko is doing all she can to welcome the region’s new overseers. A Russian flag hangs outside her office and a portrait of President Vladimir Putin is in the entry. It hasn’t offset an economy that’s dead in the water. She spends her days waiting for customers to come in. With revenue at her real estate agency down 90 percent, Voitenko is turning to family and friends to help pay the office rent. Even if anyone did want to buy a flat, she’d have a hard time finding a listing for them: the property database was only just reopened after being closed since March, when Ukraine cut access to the records after Russia annexed Crimea.
- Congress Passes Tougher Russia Sanctions But Gives Obama Leeway. The U.S. Congress has voted for tougher sanctions to punish Russia for its intervention in Ukraine, moving beyond steps the White House and European Union have been willing to take while giving President Barack Obama leeway in applying most of the provisions.
- Japan’s Manufacturers’ Sentiment Sags in Challenge for Abe. Confidence of Japan’s large manufacturers declined in the fourth quarter as a recession offset a boost from a weaker yen, underlining the economic challenges facing Prime Minister Shinzo Abe after his election win. The Tankan’s big manufacturer index slipped to 12 in December from 13 in September, the Bank of Japan said today, lower than the median estimate of 13 in a Bloomberg News survey of economists. The index is forecast to drop to 9 in March.
- How China’s Interest-Rate Cut Raised Borrowing Costs. What if a central bank cut interest rates and borrowing costs rose? Since the People’s Bank of China surprised markets with the first benchmark rate reduction in two years on Nov. 21, the five-year sovereign bond yield climbed 15 basis points, that for similar AAA corporate notes surged 37 and AA debt yields jumped 76. While finance companies did start charging less for mortgages, their funding costs rose as the one-week Shanghai interbank lending rate added 37 basis points.
- Australia’s Budget Deficit Widens to A$40.4 Billion on Iron Ore. Australia’s government forecast a wider budget gap this year as falling iron ore prices reduce revenue and spending cuts are held up by parliament. The underlying cash deficit will deteriorate to A$40.4 billion ($33.2 billion) in the fiscal year ending June 30, 2015 from a May estimate of A$29.8 billion, Treasurer Joe Hockey said in the mid-year economic and fiscal outlook today. The government forecast unemployment to climb to 6.5 percent in the second quarter, higher than its May projection of 6.25 percent.
- Petrobras Said to Delay Results on Graft Writedowns. Disagreement at Petroleo Brasileiro SA (PETR4)’s board led the state-run oil producer at the center of a corruption scandal to delay releasing full financial results, a person with direct knowledge of the issue said.
- Qatar Stocks Enter Bear Market as Dubai Erases 2014 Gains on Oil. Shares in Qatar plunged, becoming the fifth gauge in the oil-rich Gulf Cooperation Council to enter a bear market, as crude prices dropped to the lowest level since July 2009. Dubai’s gauge wiped out this year’s advances. Qatar’s QE Index (DSM) lost 5.9 percent to 11,114.43 at the close in Doha, bringing its decline since September’s record high to 23 percent. Dubai’s DFM General Index (DFMGI) lost 7.6 percent, the most since October 2008. The shares have retreated 34 percent this quarter, turning one of the world’s best gains in 2014 into a 1.4 percent loss. The measure, along with indexes in Saudi Arabia, Kuwait and Oman fell into a bear market in the past three weeks.
- China Stocks Fall on Growth Concern as Financial Companies Slump. China’s stocks fell, led by financial companies, amid concern the slowdown in the world’s second-largest economy is deepening. China Construction Bank Corp., the second-biggest lender, dropped 2.2 percent after saying it plans to raise as much as 80 billion yuan ($12.9 billion) by selling preferred stock. China Vanke Co. and Poly Real Estate Co., the largest developers, slumped more than 3 percent after an economist for the central bank said a slowdown in real estate investment in 2015 will drag down economic growth. Agile Property Holdings Ltd. jumped 6.9 percent in Hong Kong after the developer said its chairman was released from house arrest in China. The Shanghai Composite Index decreased 1 percent to 2,908.02 at 9:44 a.m.
- Oil Rout Drags Stocks Lower on Growth Concern; JGBs Gain. Oil slumped with Asian stocks and commodity-producer currencies as concern that the global economic outlook is worsening pushed credit risk higher and drove Japanese bond yields to a 20-month low. West Texas Intermediate oil sank 0.8 percent to $57.34 a barrel by 11:26 a.m. in Tokyo, taking losses to more than 46 percent since a June 20 high. The MSCI Asia Pacific Index retreated 1.2 percent as a gauge of emerging-market stocks slid to a 10-month low. Australia’s dollar weakened 0.3 percent, while Indonesia’s rupiah tumbled 1.1 percent.
- Oil Trades Near $60 a Barrel as OPEC Seen Resisting Cuts. Oil traded near $60 a barrel in London as the United Arab Emirates said OPEC will refrain from cutting output even if prices slumped to as low as $40. U.S. benchmark crude extended its drop from a five-year low. Brent futures were little changed after dropping 2.9 percent on Dec. 12.
- Oil Slump Blindsides Bulls That Wagered on Rout Ending: Energy. Speculators added to wagers that the slump in oil futures, the worst since the global recession, is ending. Prices kept falling anyway. Money managers raised their net-long position in U.S. crude to the highest in two months in the week ended Dec. 9, U.S. government data show. Most of the change came from short holdings contracting to the lowest level since August.
- Australia Sees Iron-Ore at $60 as Commodities Hit Budget. Australia cut its iron-ore price forecast to about $60 a metric ton as a commodity slump deepens the budget deficit more than previously estimated. Prices for the material dropped from the government’s initial estimate of $92 a ton for the budget, Treasurer Joe Hockey said in a televised press conference from Sydney today. Australia’s terms of trade have seen the biggest decline since records were first kept in 1959, he said. “That more than 30 percent fall in iron ore prices has had a big impact on the budget, as had a 15 percent fall in thermal coal and 20 percent fall in wheat prices since the budget,” Hockey said. The price of iron ore will “remain around $60 a ton for the foreseeable future,” he said.
- Fossil-Fuel Limits Everywhere Closer After UN Climate Deal. After two weeks of discussions in Peru organized by the United Nations, the diplomats agreed on the detail of pledges from all nations on curbing greenhouse gases. Richer countries gave an assurance they’re on track to mobilize $100 billion a year in climate aid by 2020. The decision sets the framework for a landmark agreement the UN intends to adopt in December 2015 in Paris that will rein in the emissions damaging the atmosphere. It included last- minute concessions to some of the poorest nations in the world, who are concerned the system will impose costly and painful changes on their economies.
- Sydney Cafe Siege Sparks Terror Fears. TV Showing Cafe’s Customers With Hands Up; Islamic Flag Displayed. Armed police shut down central Sydney after a suspected gunman and possibly accomplices took several people hostage in a cafe and placed an Islamic flag in the window, sparking concerns a terrorist attack was under way. Authorities sealed off surrounding streets, evacuated people from buildings, and suspended rail services following the incident at the Lindt Chocolate CafĂ© in Martin Place, in the heart of the city’s business district.
- PetSmart to Be Acquired by BC Partners Group. Investor Group to Pay About $8.25 Billion in Largest Private-Equity Buyout of Year.
- China Steps Up Scrutiny of Margin Trading. Move Comes After Volatility in Chinese Stocks. China’s securities watchdog said it would conduct spot checks on some brokerages’ margin trading business, signaling regulators’ growing concerns about the risky investment practice that has contributed to a recent rally in the country’s stock market.
Business Insider:
Night Trading- Asian indices are -1.0% to -.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 112.0 +6.0 basis points.
- Asia Pacific Sovereign CDS Index 74.75 +8.25 basis points.
- S&P 500 futures +.46%.
- NASDAQ 100 futures +.44%.
Earnings of Note
Company/Estimate
- (PAY)/.41
- (HGR)/.44
8:30 am EST
- Empire Manufacturing for December is estimated to rise to 12.0 versus 10.16 in November.
- Industrial Production for November is estimated to rise +.7% versus a -.1% decline in October.
- Capacity Utilization for November is estimated to rise to 79.4% versus 78.9% in October.
- Manufacturing Production for November is estimated to rise +.7% versus a +.2% gain in October.
- The NAHB Housing Market Index for December is estimated to rise to 59 versus a reading of 58 in November.
- Net Long-Term TIC Flows for October.
- None of note
- The China HSBC Manufacturing PMI, (HON) Outlook Conference Call, (HPQ) business update and the (AGCO) analyst meeting could also impact trading today.
No comments:
Post a Comment