Bloomberg:
- Ukraine May Resume Push in East as Russian Deal Crumples. Ukraine considered resuming operations to oust militants from eastern cities as an agreement with Russia to reduce tensions in the region lay in tatters. Acting Ukrainian President Oleksandr Turchynov yesterday called on security forces to move against the separatists after the discovery of two bodies in the country’s eastern region, saying that “terrorists” backed by Russia had “crossed the line.” He spoke hours after meeting in Kiev with U.S. Vice President Joe Biden, who pledged American support including $50 million in aid. With the April 17 accord faltering, Ukraine is inching closer to a renewed push to dislodge militants in defiance of Russia’s warnings that such a move risks sparking civil war.
- China Defies Obama’s Slow Asia Pivot With Rapid Military Buildup. President Barack Obama’s trip to Asia this week will be dominated by a country he’s not even visiting: China. Each of the four nations on the president’s itinerary is involved in territorial disputes with an increasingly assertive China. And years of military spending gains have boosted the capabilities of the People’s Liberation Army faster than many defense analysts expected, casting a shadow over relations between China and its neighbors and sparking doubts about long-term prospects for the U.S. presence in the Pacific.
- Yuan Falls to Lowest Since 2012 as China Data Signals Slowdown. China’s yuan reversed gains and touched the weakest level in 16 months after a private report showed the nation’s factory output is still contracting.
- China Mobile Profit Falls as Costs Rise With IPhone Release. China Mobile Ltd. (941), the world’s largest phone company by users, posted its third straight drop in quarterly profit as expenses for subsidizing Apple Inc. (AAPL)’s iPhone and building networks increased.
- China’s Stocks Fall After Manufacturing Data Signals Contraction. China’s stocks fell, led by energy and financial companies, after a manufacturing gauge signaled a fourth month of contraction. The yuan touched its lowest level since 2012. China Shenhua Energy Co. paced declines for coal shares in Hong Kong and Shanghai. China Citic Bank Corp. lost 1.2 percent in Shanghai. Liquor maker Kweichow Moutai Co. rose 1.7 percent as a gauge of consumer companies least reliant on economic growth climbed the most among industry groups. The Shanghai Composite Index (SHCOMP) fell 0.4 percent to 2,065.37 at 9:54 a.m. The index has slid for four out of the past five days on concern new initial public offerings will divert funds. A preliminary Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics was 48.3 in April, below the level of 50 that’s the dividing line between expansion and contraction.
- Asian Stocks Pare Advance After Chinese, Australian Data. Asian stocks pared their advance after China’s preliminary manufacturing data signaled persisting weakness in the world’s second-largest economy and Australia’s inflation rose less than expected. Resona Holdings Inc. climbed 2.9 percent after Greenlight Capital Inc., a hedge fund run by David Einhorn, said it bought shares in the Japanese lender. Seibu Holdings Inc. jumped 5.1 percent as Japan’s biggest hotel chain started trading on the Tokyo bourse. China Overseas Land & Investment Ltd., the largest mainland developer traded in Hong Kong, sank 4.1 percent, leading declines on the Hang Seng Index. The MSCI Asia Pacific Index gained 0.1 percent to 138.75 as of 12:12 p.m. in Tokyo, paring gains of as much as 0.6 percent.
- Copper Drops for First Time in Four Days on China Data. Copper fell for the first time in four days after a private gauge of Chinese factory production signaled a fourth month of contraction, curbing demand prospects in the world’s biggest user of industrial metals. The contract for delivery in three months on the London Metal Exchange retreated as much as 0.4 percent to $6,646 a metric ton and was at $6,652 by 10:47 a.m. in Tokyo. The metal has lost 9.6 percent this year, the worst performer among the six main metals traded on the LME.
- Major Currency Volatility Falls to Lowest Since 2007. Australia’s dollar fell against all of its 16 major peers after data today showed the nation’s consumer prices increased less than economists forecast.
- Killing Dark Pools Is CME Chairman’s Fix for Broken Stock Market. Terrence Duffy, who as executive chairman of CME Group Inc. oversees the world’s largest futures exchange, has a solution for those seeking to fix the U.S. stock market: kill dark pools.
- Goldman Sachs(GS) Stands Firm as Banks Exit Commodity Trading. Goldman Sachs Group Inc. (GS), whose three top executives began their careers at the firm in the commodity-trading unit, is poised to gain market share as pressure from regulators drives competitors to scale back.
- U.S. to Move Troops to Allies Near Russia as Tensions Flare in Eastern Ukraine. Pentagon Seeks to Reassure NATO Allies as Kiev Accuses Pro-Russian Forces of Killings. Hundreds of U.S. troops are headed for maneuvers in Eastern Europe through year's end, the Pentagon announced, new deployments intended to reassure allies on Russia's borders as violence took a sinister turn Tuesday in embattled Ukraine.
- Crisis in Ukraine. Streaming Coverage:
- In Chinese Property, Smart Players Are Selling. The Tycoon Li Ka-shing Unloads Projects in Shanghai, Guangzhou; Richard Li Sells in Beijing. For years, Chinese property has been a sure bet for savvy investors looking to ride the country's economic surge. Now, some of the best-known names in Chinese investing are cutting back, at least for the present. Since September, Hong Kong tycoon Li Ka-shing, widely considered Asia's richest man, has sold office and shopping-mall projects in the cities of Shanghai and Guangzhou. His son, businessman Richard Li, sold a prime piece of real estate, a mixed-use complex in Beijing's Sanlitun shopping district, for US$928 million in early April.
- Numericable Set to Issue Record Junk Bond. Debt Offering Could Raise $11.6 Billion. A French cable operator is preparing what could be the largest junk-bond sale in history—a sign of investors' ravenous appetite for risk in an era of low rates and a mark of the profound shift in bond financing on a continent that had long borrowed heavily from its banks. Bankers working on the deal say Numericable Group SA was expected to raise the equivalent of €8.4 billion ($11.6 billion) from the bond sale Wednesday, about...
- Google(GOOG) Ads Will Soon Link Inside Mobile Apps. Google Tuesday said it will allow advertisers to direct smartphone users directly to apps installed on their devices.
- Keystone Uncensored. A labor leader calls the Administration 'gutless,' 'dirty' and more. Republicans are denouncing President Obama's latest delay on the Keystone XL pipeline, six long years after it was proposed. But for cold political fury they have nothing on Terry O'Sullivan, who runs the Laborers' International Union that represents a half-million construction workers.
- Republicans warn BLM eyeing land grab along Texas-Oklahoma border. Texas officials are raising alarm that the Bureau of Land Management, on the heels of its dust-up with Nevada rancher Cliven Bundy, might be eyeing a massive land grab in northern Texas. The under-the-radar issue has caught the attention of Texas Attorney General Greg Abbott, who fired off a letter on Tuesday to BLM Director Neil Kornze saying the agency “appears to be threatening” the private property rights of “hard-working Texans.”
Zero Hedge:
Business Insider:
- It's Time To Consider Whether Tim Cook Has Mismanaged Apple(AAPL). Apple reports earnings on Wednesday after the market closes. Investors are not expecting anything spectacular. This table from Piper Jaffray analyst Gene Munster sums up analysts' forecasts.
- Bill Ackman’s Secret $$ Deal for Herbalife Whistleblower. In his year-long campaign against the embattled Herbalife company, Wall Street hedge fund manager Bill Ackman secretly promised a disgruntled former company executive as much as $3.6 million over 10 years if he lost his job after providing information to government investigators and the media.
- Juniper's(JNPR) revenue rises as telecom clients ramp up networks. Network gear maker Juniper Networks Inc reported a higher-than-expected 10 percent rise in quarterly revenue as U.S. telecom carriers spent more to ramp up their networks to manage increasing data traffic on smartphones and tablets. Juniper's shares were little changed in extended trading.
- VMware(VMW) revenue beats estimates, but shares dip on sales delays. Virtualization software maker VMware Inc reported better-than-expected first-quarter revenue and forecast current-quarter revenue largely above analysts' average estimate as more customers opt for its cloud infrastructure services. However, the company's shares slipped more than 6 percent in extended trading after it acknowledged a delay in closing some of its enterprise license agreements (ELAs) in the first quarter as customers looked to sign expanded deals.
- Intuitive Surgical(ISRG) cuts outlook for growth in robot procedures. Intuitive Surgical Inc on Tuesday lowered its forecast for procedure growth for its da Vinci surgical robots, citing a slowdown in U.S. gynecology procedures. The medical device maker said it now expects da Vinci procedure growth in a range of 2 percent to 8 percent, down from the prior forecast of 9 percent to 12 percent. The lower, wider range reflects uncertainty about the impact on procedure volumes as hospitals adjust to the implications of the Affordable Care Act, company officials said on a conference call after the release of first-quarter earnings.
- Europe braces for gas showdown with Russia, helped by Japan's nuclear restart. European regulators and power companies are battening down the hatches in case the crisis escalates.
- None of note
- Asian equity indices are -.50% to +.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 123.50 +3.0 basis points.
- Asia Pacific Sovereign CDS Index 86.5 -1.0 basis point.
- FTSE-100 futures +.06%.
- S&P 500 futures -.02%.
- NASDAQ 100 futures -.10%.
Earnings of Note
Company/Estimate
- (EAT)/.83
- (DOW)/.71
- (PX)/1.51
- (DAL)/.29
- (PG)/1.02
- (BA)/1.54
- (GD)/1.64
- (JCI)/.65
- (APD)/1.35
- (BIIB)/2.55
- (TUP)/1.16
- (KNX)/.23
- (GCI)/.46
- (R)/.87
- (MAN)/.68
- (NOC)/2.15
- (OC)/.33
- (DPS)/.59
- (EMC)/.35
- (IR)/.26
- (NSC)/1.15
- (QCOM)/1.22
- (SYK)/1.09
- (RHI)/.44
- (FFIV)/1.25
- (CTRX)/.58
- (CAKE)/.49
- (TXN)/.41
- (AAPL)/10.17
- (SWY)/.18
- (XLNX)/.55
- (CCI)/1.12
- (TSCO)/.37
- (LRCX)/1.14
- (FB)/.24
- (AVB)/1.63
- (SLG)/1.37
- (FLS)/.75
- (ORLY)/1.57
- (AMTD)/.34
- (VMI)/2.16
9:45 am EST
- The Preliminary Markit US Manufacturing PMI for April is estimated to rise to 56.0 versus 55.5 in March.
- New Home Sales for March are estimated to rise to 450K versus 440K in February.
- Bloomberg consensus estimates call for a weekly crude oil inventory build of +2,680,000 barrels versus a +10,013,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -1,495,000 barrels versus a -154,000 barrel decline the prior week. Distillate inventories are estimated to fall by -495,000 barrels versus a -1,278,000 barrel decline the prior week.
- None of note
- The Eurozone PMI, BoE Minutes, $35B 5Y T-Note auction and the weekly MBA mortgage applications report also impact trading today.