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Bloomberg:
- Saudi Arabia hasn’t held talks with China and other countries on dropping the dollar as the currency for pricing oil, Saudi Central Bank Governor Muhammad al-Jasser said, denying a report in the U.K.’s Independent newspaper. The Independent report is “absolutely incorrect” and there has been “absolutely nothing” of that nature discussed between Saudi Arabia, the world’s biggest oil exporter, and other countries, al-Jasser told reporters in Istanbul, where he’s attending an International Monetary Fund summit. The dollar pared losses after his remarks. “I don’t give credence to this story,” said Simon Williams, a Dubai-based economist at HSBC Holdings Plc. “Short- term, it’s highly unlikely that oil will not continue to be priced in dollars.”
- Sustainable economic growth and low interest rates worldwide will spur a “multi-year” bull market in equities, led by developing nations, said Fidelity International’s Anthony Bolton. “Low growth means low interest rates, and actually that’s one of the best environments for stock-market investing,” Bolton, president of investments at Fidelity International, which oversees about $141 billion, said in an interview on Bloomberg Television in Hong Kong. “Anything that can show growth in this low-growth environment is going to be bid up by investors.
- Emerson Electric Co.(EMR), the maker of power and cooling systems for data centers, agreed to buy Avocent Corp.(AVCT) for about $1.2 billion to add devices used to monitor computer networks. The acquisition at $25 a share is expected to be completed by Jan. 1, the companies said today in a statement. The offer values Huntsville, Alabama-based Avocent at 22 percent higher than the shares’ closing price yesterday.
- Gold rose to a record on speculation that currencies will depreciate, spurring inflation and boosting the appeal of the precious metal for investors seeking to preserve their wealth. Gold futures climbed as high as $1,045 an ounce in New York, topping the previous record of $1,033.90 in March 2008. The spot price is headed for a ninth straight annual gain, the longest rally since at least 1948. The dollar fell as much as 0.7 percent against a basket of six major currencies.
- Defense Secretary Robert Gates said any perceived U.S. retreat from Afghanistan would spur support for the Taliban insurgency in what he termed the “epicenter of jihad” and might deal a blow to American power. The Afghan-Pakistan border area is “where the mujahedeen defeated the other superpower,” Gates said at a forum taped by CNN in Washington yesterday, referring to the defeat of the Soviet army by Islamic fighters in the 1980s. “And their view is they now have the opportunity to defeat a second superpower.”
- A majority of Americans are skeptical that diplomacy with Iran will succeed and say the U.S. should use military action if necessary to prevent the Iranian government from developing a nuclear weapon. A Pew Research Center for the People & the Press survey released today found 61 percent of Americans would support a military strike. Twenty-four percent said it is more important to avoid conflict even if that means Iran will end up building nuclear arms.
- Tiffany & Co.(TIF) rose to the highest level in more than a year after Citigroup recommended buying shares of the world’s second-largest luxury jeweler, projecting they will increase to $50 within 12 months. The stock climbed $2.29, or 6 percent, to $40.80 at 12:12 p.m. in New York Stock Exchange composite trading, after reaching $40.96, the highest level since September 2008.
- The U.S. economy is on the mend and housing is poised for a rebound, said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York. “The momentum in the economy is moving forward,” LaVorgna said today in an interview on Bloomberg Radio. Housing is close to a turnaround because “we have had a tremendous improvement on inventories,” he said. “We are much closer to a housing bottom than many believe.” At the current sales pace it would take 8.5 months to sell all the previously owned homes on the market, compared with 11.3 months in April 2008, the highest level since at least 1999. For new houses, supply dropped to 7.3 months in August, the shortest period since January 2007. Economic growth will reach 3 percent next year, “maybe a little more,” LaVorgna said. Economists surveyed by Bloomberg News last month projected the world’s largest economy will expand 2.4 percent in 2010, according to the median estimate. Core inflation, which excludes food and energy costs, will fall below 1 percent in 2010, and that will open the way for the Federal Reserve to refrain from raising its benchmark interest rate next year, LaVorgna said.
- Investors led by Starwood Capital Group LLC and TPG won an auction for the real estate assets of failed Chicago lender Corus Bankshares Inc. by outbidding the nearest competitor by 20 percent, including about $100 million more of their own cash, people familiar with the matter said. The Corus auction, managed by the Federal Deposit Insurance Corp., drew interest from real estate developers and investors specializing in distressed debt. Corus was a lender to Miami condominium developers and held as much as $3.9 billion in condo loans as of March 31, including almost $1 billion tied to properties in southeast Florida. Corus, which was seized on Sept. 11, had a $5.4 billion commercial real estate loan portfolio.
- U.K. manufacturing production unexpectedly slumped in August to the lowest level since 1992, a sign the economy is struggling to shake off the recession. Factory output dropped 1.9 percent from the previous month, the Office for National Statistics said today in London. Economists predicted a 0.3 percent increase, according to the median of 26 forecasts in a Bloomberg News survey. The index of manufacturing fell to 87.8, the lowest in 17 years.
- The recession and a cleaner fuel mix in the electricity sector should push U.S. carbon-dioxide emissions from coal, oil and natural gas 5.9 percent lower this year, the Energy Information Administration said today. “Changes in energy consumption in the industrial sector, a result of the weak economy, and changes in electricity generation sources are the primary factors for the decline,” the EIA said in its October Short-Term Energy Outlook.
- KeyCorp(KEY), Ohio’s second-largest bank, may jump by two thirds in New York trading as “problem” loans decrease and earnings rise, RBC Capital Markets analyst Gerard Cassidy said. KeyCorp shares may reach $10, the Cleveland-based company’s book value, Cassidy said today in an interview on Bloomberg Radio.
Wall Street Journal:
- The Pentagon is establishing two new units devoted to the Afghan war, highlighting the military's focus on the conflict even as the White House considers scaling back the overall U.S. mission there. The units -- a so-called Afghan Hands program run out of the Pentagon and a new intelligence center within Central Command, which oversees the wars in Iraq and Afghanistan -- are designed to help troops deepen their intelligence about the country's complex political and tribal dynamics. The Defense Department also is expected to announce that Brig. Gen. John M. Nicholson, one of the military's top experts on counterinsurgency, will assume the helm of the Pakistan-Afghanistan Coordination Cell, a Pentagon office established earlier this year to improve the military's performance in Afghanistan. The moves underline the military's efforts to remake itself in response to the Afghan war despite the Obama administration's signals that it is far from committed to the current counterinsurgency approach.
- The U.S. slightly tweaked its forecast higher Tuesday for OPEC crude oil output and surplus production capacity in 2009. Crude oil production from the Organization of Petroleum Exporting Countries will average 29.02 million barrels a day this year, a marginal increase over the previous estimate of 29.01 million barrels a day, the U.S. Department of Energy estimates in its latest monthly outlook. OPEC produced 28.7 million barrels a day during the first half of 2009. The EIA also raised its 2010 outlook for OPEC production by 300,000 barrels a day to 29.19 million barrels a day.
- The chief executive of International Business Machines Corp. (IBM) sees a huge business opportunity in making the U.S. health-care system more efficient. "Someone is going to drive incredible progress," IBM Chief Executive Sam Palmisano told a conference on medical innovation at the Cleveland Clinic Tuesday. "Someone is going to unlock this incredible economic opportunity. And I suggest, why shouldn't it be us?"
The Detroit News:
- The Senate Finance Committee's health care reform bill cut in half, to $5 billion, the amount set aside to help the United Auto Workers' health care trusts and other similar programs. A health care reform bill approved by a House committee in July included $10 billion to defray the medical costs of union members and others in retiree group health care associations through a reinsurance program. A plan proposed by Senate Finance Committee Chairman Max Baucus, D-Mont., would have eliminated the provision completely. But Sen. John Kerry, D-Mass., and Debbie Stabenow, D-Lansing, however, were able to get $5 billion restored. It's not clear how long that money will last. "The UAW obviously believes the $10 billion amount more accurately reflects the need for this program," Reuther said.
NJ.com:
- Governor Corzine overwhelmingly finances key Democratic campaign funds, feeding more than $1.4 million into a system that critics -- and he himself -- have targeted for reform. He is the biggest individual contributor to New Jersey Democrats’ three fattest pots, according to campaign-finance data. And he has given more than any other person to 20 of 21 Democratic county committees. Publicly, Corzine has faulted these funds’ tradition of “wheeling” -- or sending checks to out-of-district candidates, free of contribution caps. Critics say the practice wrongfully favors moneyed interests over donors who can give just $2,600 to each candidate. Privately, the governor has added $1,457,000 of his personal wealth to the wheeling pool since he took office in 2006. That’s nearly eight times the $185,000 given by the second-highest donors, real-estate developer David S. Steiner and his wife, Sylvia.
Rassmussen:
- Twenty-nine percent (29%) of Americans say they are less like to watch CBS’ “Late Night With David Letterman,” following the talk show host’s admission that he has had affairs with women who work on the show. A new Rasmussen Reports national telephone survey finds that five percent (5%) say that Letterman’s disclosure of sexual misbehavior makes them more likely to watch the show.
- Republican congressional candidates have moved slightly further ahead of Democrats this week in the latest edition of the Generic Congressional Ballot. The new Rasmussen Reports national telephone survey shows that 43% would vote for their district’s Republican congressional candidate while 39% would opt for his or her Democratic opponent.
Politico:
- Democrats involved in the Senate Intelligence Committee investigation of CIA interrogation techniques have found a way to avoid partisan fights: Keep working after the ranking Republican quits. Late last month, Sen. Kit Bond (R-Mo.) abruptly withdrew from the probe to protest Attorney General Eric Holder’s decision to appoint a special prosecutor to review the legality of Bush-era interrogation techniques. Bond’s departure means that Republican staffers aren’t playing much of a role in the investigation, either. And that suits several Democrats on the panel just fine.
Washington Times:
Reuters:
- A top U.S. bailout watchdog has her eye on the "pay czar" charged with vetting the packages of some of Wall Street's top earners. Elizabeth Warren, head of the Congressional Oversight Panel for the government's financial bailout program, is intent on ensuring taxpayers get to see how their money may be adding zeroes to those paychecks. Warren told Reuters she is pleased the government's pay czar, Kenneth Feinberg, is planning to publicly release his rulings on the contracts for the top 25 earners at firms that have received the biggest government bailouts. But she wants more. She said Feinberg has an obligation to detail how taxpayer dollars are being used to pay key workers at bailed out firms.
- While most retailers saw bleak sales this back-to-school season, consumer electronics chains saw renewed demand for notebook personal computers, according to a report from market research firm NPD Group. That could be good news for PC makers this holiday shopping season, with few stand-out gadgets to woo shoppers.
Financial Times:
Correio Braziliense:
- Brazil’s central bank and finance ministry are concerned that companies may lose money on wrong-way currency bets. Brazilian companies have $8 billion in bets against the US dollar.
Style Underperformer:
Small-Cap Value (+.55%)
Sector Underperformers:
Medical Equipment (-.75%), REITs (-.59%) and Steel (-.20%)
Stocks Falling on Unusual Volume:
PSEC, STJ, ARRS, CIEN, PPD and STJ
Stocks With Unusual Put Option Activity:
1) SGP 2) EMR 3) MDT 4) MNKD 5) FDO