Evening Headlines
Bloomberg:
Bloomberg:
- Is the Weakness in China Just Beginning? (video)
- Bank of Korea Holds Key Rate at Record Low as Growth Picks Up. The Bank of Korea kept its benchmark interest rate unchanged for a fifth consecutive month as the economy grew at the fastest pace in more than five years. The decision to hold the seven-day repurchase rate at 1.5 percent was forecast by all 18 economists surveyed by Bloomberg. Analysts with Barclays Plc, Nomura Holdings Inc. and HSBC Holdings Plc were among those pushing to 2016 their forecast for a rate cut after the gross domestic product expanded 1.2 percent in the third quarter, supported by rising consumption and construction investment.
- Could a Fed Rate Hike Derail Emerging Market Currencies? (video)
- Portugal in Limbo as Finance Minister Evokes the Ghost of Greece. Portugal’s outgoing government has a word of advice for the next prime minister: If you stray from Europe’s budget rules, it will only tempt the Greek Fates. After a loose alliance ofleft-wing parties on Tuesday ousted Prime Minister Pedro Passos Coelho in a parliamentary vote, thenation of 11 million people awaits President Anibal Cavaco Silva to pick his successor. The Socialists, who say they will comply with European Union rules, are itching to take over and reverse some measures that were enforced in exchange for financial aid.
- Greece Comes to a Standstill as Unions Turn Against Tsipras. As Greek workers take to the streets in protest on Thursday, Alexis Tsipras will for the first time be on the other side of the barricades. Unions -- a key support base for the prime minister’s Syriza party -- will chant the same slogans Tsipras once used against opponents. Doctors and pharmacists will join port workers, civil servants and Athens metro staff in Greece’s first general strike since he took office in January, bringing the country to a standstill for 24 hours. ADEDY and GSEE, Greece’s biggest unions, have called for a rally at 11 a.m local time, accusing Tsipras of bowing to creditors and imposing measures that “perpetuate the dark ages for workers.”
- ECB Isn't Committed to More Easing Next Month, Coeure Says. The European Central Bank has yet to decide on further easing and isn’t committed to doing so next month, Executive Board member Benoit Coeure said. “The decision isn’t taken,” he said in an interview published in Le Figaro newspaper that was confirmed by his office. “The debate is open.” Coeure said the recovery in the euro area is “on track.” Data on Friday may show economic growth of 0.4 percent in the third quarter, matching the pace of the previous three months. Purchasing managers’ surveys indicate expansion continued in the current quarter. “It’s accelerating, but it remains weak, while inflation expectations have stopped improving and underlying inflation has hit a ceiling,” Coeure said.
- Asian Stocks Trade Little Changed; Yen Weighs on Japan Exporters. Asian stocks were little changed after a drop in U.S. shares. A stronger yen weighed on Japanese exporters, while energy companies retreated after a decline in oil. About MSCI Asia Pacific Index was unchanged at 133.06 as of 9:07 a.m. in Tokyo.
- Russia's Oil Rivalry With Saudis Masks the Bigger Iranian Threat. Competition is growing in Russia’s biggest oil market. While Saudi Arabia’s encroachment in Europe isgetting all the attention, the biggest threat comes from another part of the Middle East -- Iran. The world’s largest oil exporter has started shipping crude to traditional Russian markets like Poland and Sweden, but Saudi supplies to Europe won’t increase by enough to reduce prices, said Texas-based consultant Stratfor. In contrast, a surge in Iranian exports after the lifting of sanctions could erode the value of Russian shipments to the region as soon as next year, according to KBC Advanced Technologies.
- The Harmful Effects of Buybacks and Short-Term Thinking. (video)
- Puerto Rico Likely to Default on Some GDB Debt, Moody's Says. Puerto Rico is likely to default on at least a portion of Government Development Bank bond payments due Dec. 1 with the commonwealth’s cash crunch worsening, according to Moody’s Investors Service. The GDB, which lends to the island and its localities, faces a $354 million principal and interest payment at the start of the month, just as the bank projects it may run out of available cash, according to Puerto Rico’s Nov. 6 financial report. The commonwealth expects to post a negative cash balance this month and next. A default “would be consistent with our expectation that the commonwealth will be forced to miss debt service payments in favor of providing essential government services because of its increasingly weak liquidity position,” Genevieve Nolan, a Moody’s analyst, wrote in a Nov. 11 report.
- U.S. Stock Mutual Funds Suffer Biggest Weekly Outflow Since 2011. Investors withdrew $12.5 billion from U.S stock mutual funds last week, the biggest redemption in more than four years. About $12.1 billion came out of domestic stock funds, according to a statement Wednesday by the Investment Company Institute, a Washington-based trade group. Equity funds that invest outside the U.S. saw withdrawals of $461 million. The equity redemptions for the period ended Nov. 4 were the largest since the week ended Aug. 10, 2011, when $27.8 billion was pulled.
- Populism on the Rise in GOP Race for President. Candidates bash big banks, the Fed, corporations and international trade deals in their latest debate. The latest presidential debate vividly captured how the 2008 financial crisis has reshaped the Republican Party by unleashing a potent populist strain that could further scramble an already unpredictable primary contest.
- Fox Business Draws Record Ratings With Republican Debate. Coverage of fourth GOP debate was watched by 13.5 million viewers.
- U.S. Arrests Two Relatives of Venezuelan President Nicolás Maduro on Drug-Trafficking Charges. U.S. agents arrest two on charges they conspired to transport 800 kilograms of cocaine to the U.S., according to two people familiar with the matter. U.S. agents have arrested two relatives of Venezuelan President Nicolás Maduro on charges they conspired to transport 800 kilograms of cocaine to the U.S., according to two people familiar with the matter. The arrests come amid U.S. accusations that the top echelon of the government in Caracas is involved in the narcotics trade.
Fox News:
- White House hints at executive action to close Gitmo prison despite Hill resistance. (video) Suspicions are mounting on Capitol Hill that President Obama could try to use executive action to close the Guantanamo Bay detention center, even after Congress this week approved legislation that would keep the facility open. The defense policy bill approved Tuesday would bar the transfer of Guantanamo inmates to the United States. Obama, despite opposing that provision, plans to sign the bill.
- Many eligible for ObamaCare subsidies not claiming them, study finds. (video) “We need perhaps twice as many people signing up in order to be assured of getting a good spread of risk, and therefore, a sustainable cost for people,” said Robert Laszewski, the president of Health Policy and Strategy Associates.
CNBC:
Zero Hedge:- Singles Day fails to capture the American consumer. (video) According to Adobe, Singles Day spending in the U.S. is expected to hit $1.4 billion this year. While that would represent a 14 percent increase from 2014, it falls well shy of Adobe's forecast for Cyber Monday.
- "Currency War By 1000 Cuts" Continues - PBOC Weakens Yuan For Longest Streak Since Lehman.
- The 60-Second Summary Of Europe's Latest Crisis.
- Aussie Bonds Crushed After "Everything Is Awesome" Best October Job Gains Since 2007. (graph)
- Record Number Of Women Now Live In Parents' Basement, Lack Of Weddings Blamed.
- Judge Slams "Unconstitutional, Orwellian" NSA Bulk Spying.
- Four US Firms With $4.8 Billion In Debt Warned This Week They May Default Any Minute. (graph)
- If You Run A Hedge Fund, This Is The One Chart You Never Want To Show To Your Investors.
- Obama's Word Or Damocles' Sword. (cartoon)
- Ackman's Terrible Year Just Got Even Worse With News He Will Be Sued For Collusive Insider Trading.
- Goldman Maps Fed's "Flight Path", Sees Steeper Trajectory For Rates. (graph)
- With Bonds Away, Algos Will Play: Stocks & Silver Slide As Crude & Credit Crumble. (graph)
- When Does The Market Breakdown Again? The Answer Is In The A-D Line. (graph)
Reuters:
- Japan machinery orders point to tepid rebound from feared recession.
- Facebook(FB) reports surge in government requests for data. Facebook Inc said content restrictions and government requests for data surged in the first half of 2015, which the social network has seen continually increase since it began publicly releasing such data two years ago. Government requests for account data globally jumped 18 percent in the first half of 2015 to 41,214 accounts, up from 35,051 requests in the second half of 2014, Facebook said in a blog post Wednesday. The amount of content restricted for violating local law more than doubled compared with the same period in the second half of 2014 to 20,568 pieces of content, it said.
- Paris climate deal will not be a legally binding treaty. John Kerry, US secretary of state, has warned that December’s Paris climate change talks will not deliver a “treaty” that legally requires countries to cut their carbon emissions, exposing international divisions over how to enforce a deal. The EU and other countries have long argued that the accord due to be reached next month should be an “international treaty” with legally binding measures to cut emissions. But in an interview with the Financial Times, Mr Kerry insisted the agreement was “definitively not going to be a treaty”.
- Alibaba(BABA) hits the brakes on India expansion drive. China’s Alibaba has slowed its previously aggressive Indian expansion drive, putting a mooted deal with smartphone group Micromax on ice and delaying other investment plans in the face of problems in its home market, according to people familiar the situation.
Telegraph:
- End QE now or risk a new financial crisis, warn Germany's 'Wise Men". Council of Economic Experts says low interest rates pose risk for financial stability, and call on the ECB to end stimulus measures.
Evening Recommendations
- None of note
- Asian equity indices are -.25% to +.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 126.75 unch.
- Asia Pacific Sovereign CDS Index 68.75 -1.0 basis point.
- Bloomberg Emerging Markets Currency Index 71.21 +.09%.
- S&P 500 futures +.16%.
- NASDAQ 100 futures +.17%.
Earnings of Note
Company/Estimate
- (AAP)/2.09
- (DSX)/-.19
- (DDS)/1.20
- (ECA)/-.05
- (HP)/.05
- (IGT)/.35
- (KSS)/.70
- (PAAS)/-.12
- (VIAB)/1.54
- (AMAT)/.29
- (LOCO)/.15
- (FOSL)/1.34
- (JWN)/.72
- (SINA)/.21
- (WB)/.06
- (YOKU)/-.18
8:30 am EST
- Initial Jobless Claims are estimated to fall to 270K versus 276K the prior week.
- Continuing Claims are estimated to fall to 2155K versus 2163K prior.
- JOLTS Job Openings for September are estimated to rise to 5400 versus 5370 in August.
- Bloomberg consensus estimates call for a weekly crude oil inventory build of +790,910 barrels versus a +2,847,000 barrel gain the prior week. Gasoline supplies are estimated to fall by -959,090 barrels versus a -3,300,000 barrel decline the prior week. Distillate supplies are estimated to fall by -1,268,180 barrels versus a -1,300,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to rise +.57% versus a +1.1% gain prior.
- The Monthly Budget Deficit for October is estimated at -$131.5B.
- None of note
- The Fed's Yellen speaking, Fed's Fischer speaking, Fed's Plosser speaking, Fed's Bullard speaking, Fed's Evans speaking Fed's Lacker speaking, Fed's Dudley speaking, Eurozone CPI report, $16B 30Y T-Bond auction, weekly Bloomberg Consumer Comfort Index, (JBLU) October Traffic report, (UTEK) analyst day, (FFIV) investor meeting, (MXIM) annual meeting, (GWW) analyst meeting, (DD) investor day and the (IART) investor day could also impact trading today.
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