TradeTheNews.com: Global Market Updates Copyright (c) 2013 Trade The News. All rights reserved. http://www.tradethenews.com/Rss/ Market Update Breaking News en-us 5 Tue, 21 May 2013 15:11:16 GMT Trade The News : Market Update 16 16 http://www.tradethenews.com/Rss/ http://www.tradethenews.com/images/favicon.gif TradeTheNews.com US Market Update: Waiting for Bernanke, US Markets Flat http://www.tradethenews.com/US-Market-Update/MarketUpdate?storyId=1329903 TradeTheNews.com Staff - (EU) OECD Q1 GDP Q/Q: 0.4% v 0.0% prior
- 07:15 (SE) Sweden Central Bank Gov Ingves in Parliament
- (US) ICSC/GS weekly chain store sales w/e May 17th w/w: +0.2%; y/y: +3.1%
- (PL) Poland Apr Sold Industrial Output M/M: -2.3% v -1.7%e; Y/Y: 1.7% v 3.0%e
- (PL) Poland Apr Producer Prices M/M: -0.6% v -0.2%e; Y/Y: -2.0% v -1.5%e
- (RU) Russia Apr Producer Prices M/M: -1.2% v +0.4%e; Y/Y: 1.6% v 3.0%e
- (US) Redbook Retail Sales w/e May 17th: +2.4% y/y, May MTD: +0.5% m/m; May MTD: +2.6% y/y
- (EU) ECB weekly Forex Reserves: €223.3B v €222.9B prior
- (BR) Brazil Apr Tax Collections (BRL): 98.7B v 95.0Be

- US equities continue to trade sideways this morning as markets lack major catalysts for a second consecutive day. Traders are waiting with great anticipation for Fed Chairman Bernanke's Congressional testimony tomorrow morning, during which a definitive update on asset purchases is expected. As of writing the DJIA, S&P500 and Nasdaq are flat on the day.

- The dollar index remains near three-year highs this morning as EUR/USD gives up ground to trade below the 1.2880 level. USD/JPY weakened further overnight but was unable to break above the 102.9 level. Note that Japanese Econ Min Amari said he is now looking for markets to deliver a "balanced yen." Extreme volatility in precious metals continues apace: after dropping sharply but then closing up approx 1.45% yesterday and then popping above $1,400 this morning, spot gold is now down just over 1%, trading around $1,370.

- Solar names gained very strongly this morning across the board on reports in the New York Times overnight that the US, Europe and China would negotiate a grand bargain to cut tariffs and end product dumping of solar panels. Note that midway through the US morning session a US trade official denied the reports and solar names have been volatile since.

- Apple CEO Cook is testifying before a Senate panel this morning regarding offshore tax issues. A Senate investigation found that Apple uses offshore entities to avoid corporate taxes in the US and other countries.

- Shares of Carnival Corp are down more than 6% after the firm slashed its FY13 outlook due to lower net yield expectations. One analyst wrote that the company's soft pricing environment is a direct result of the well publicized operational missteps year-to-date, which resulted in increased promotional activity.

- Home Depot had an excellent Q1, topping expectations on good y/y growth. Comps were strong and margins held up very well. The firm also raised its FY13 outlook, citing the ongoing recovery in the US housing market. HD is up 2% in mid morning trade, after giving up some earlier gains.

- Best Buy is down 5% following the firm's Q1 quarterly report. The firm lost money in the quarter, sold a 50% stake in its European operations and continued to work out its big restructuring plans. On an adjusted basis, EPS slightly topped expectations. Comps were terrible.

- Sprint raised its buyout offer for Clearwire by 14%, to $3.40/shr from $2.97 prior. A vote on the previous offer had been scheduled for today, but Clearwire said it is postponing it until Thursday, May 30. Shares of CLWR are up more than 4% on the news.

***Looking Ahead***
- 11:30 (US) Treasury to sell $30B in 4-Week Bills
- 11:30 (US) Fed's Bullard speaks on Monetary Policy in Frankfurt
- 12:30 (CA) Bank of Canada (BoC) Gov. Carney speech in Montreal
- 13:00 (US) Fed's Dudley in NY
- 13:30 (BR) Brazil Apr Caged Formal Job Creation M/M: 210Ke v 112.5K prior
- 16:30 (US) Weekly API U.S. Crude Oil Inventories
- 19:50 (JP) Japan Apr Total Merchandise Trade Balance: -¥620.6Be v -¥362.4B prior; Adjusted Merchandise Trade Balance: -¥602.9Be v -¥922.0B prior
- (JP) Bank of Japan Interest Rate Decision (no set time)


Source
Copyright (c) 2013 Trade The News, Inc.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com/ for your no-obligation FREE trial.
]]> Tue, 21 May 2013 15:11:16 GMT TradeTheNews.com EU Market Update: UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint http://www.tradethenews.com/EU-Market-Update/MarketUpdate?storyId=1329605 TradeTheNews.com Staff ***Notes/Observations***
- RBA minutes: rate cut appropriate to boost growth; subdues growth & inflation provided room to cut rates; AUD high by historical standards
- The USD/JPY was steady after the Japanese Econ Min Amari backed off from his comments expressing satisfaction with the current value of the JPY
- Germany's Chancellor Merkel said to be considering certain treaty changes aimed at giving more powers to Brussels
- Draft EU law to protect insured bank depositors under €100k; larger depositors could suffer losses after equity and bond holders hit
- UK inflation comes in lower than expected and offers BOE more room to stimulate if data does disappoint
- Thursday data calendar to see a number of flash PMI reports - including China

***Economic Data***
- (JP) Japan Mar All Industry Activity Index M/M: -0.3% v -0.4%e
- (JP) Japan Apr Supermarket Sales Y/Y: -1.9% v +1.7% prior
- (DE) Germany Apr Producer Prices M/M: -0.2% v -0.1%e; Y/Y: 0.1% v 0.2%e
- (FI) Finland Apr Unemployment Rate: 8.8% v 8.8%e
- (ZA) South Africa Mar Leading Indicator: 101.9 (rebased) v 133.3 prior
- (CH) Swiss Apr M3 Money Supply M3 Y/Y: 10.2% v 9.9% prior
- (EU) ECB: €190M borrowed in overnight loan facility vs. €122M prior; €85.0B parked in deposit facility vs. €83.0B prior
- (NL) Netherlands Apr House Price Index M/M: -1.4%% v +0.1% prior; Y/Y: -7.6% v -7.0% prior
- (SE) Sweden Apr Unemployment Rate: 8.7% v 8.7%e; Unemployment Rate Seasonally Adj: 8.4% v 8.3%e
- (SE) Sweden Q1 Total Number of Employees: 1.2% v 1.1% prior
- (UK) Apr Gross Mortgage Lending at £12.1B v £11.6B prior
- (UK) Apr PPI Input M/M: -2.3% v -1.3%e; Y/Y: -0.1% v +0.3%e
- (UK) Apr PPI Output M/M: -0.1% v +0.2%e; Y/Y: 1.1% v 1.4%e
- (UK) Apr PPI Output Core M/M: 0.1% v 0.3%e; Y/Y: 0.8% v 0.9%e
- (UK) Apr CPI M/M: 0.2% v 0.4%e; Y/Y: 2.4% v 2.6%e; CPI Core Y/Y: 2.0% v 2.3%e
- (UK) Apr RPI M/M: 0.3% v 0.5%e; Y/Y: 2.9% v 3.1%e; RPI Ex-Mortgage Interest Payment (RPIX): 2.9% v 3.0%e; Retail Price Index: 249.5 v 249.9e
- (UK) Mar ONS House Price Y/Y: 2.7% v 2.0%e
- (HK) Hong Kong Apr CPI Composite Index Y/Y: 4.0% v 3.7%e

Fixed Income:
- (ES) Spain Debt Agency (Tesoro) sold total €3.51B vs. €2.5-3.5B indicated range in 3 Month and 9 Month Bills
- Sold €892M in 3-month Bills; Avg Yield: % v 0.120% prior; Bid-to-cover: x v 3.76x prior; Max Yield: % v 0.150% prior; Tail: 2.1bps v 3.0bps prior
- Sold €2.62B in 9-month Bills; Avg Yield: % v 0.787% prior; Bid-to-cover: x v 2.37x prior; Max Yield: % v 0.825% prior; Tail: 2.1bps v 3.8bps prior
- (CH) Switzerland sold CHF924.1M in 6-Month Bills; Yield: -0.119% v -0.119% prior
- (EU) ECB allotted €1034B in 7-Day Main Refinancing Tender at fixed 0.50% vs. €103.5B prior
- (ZA) South Africa sold total ZAR2.35B in 2023, 2031 and 2041 Bonds
- (HU) Hungary Debt Agency (AKK) sold HUF50B vs. HUF50B indicated in 3-Month Bills; Avg Yield: 4.21% v 4.24% prior; Bid-to-cover: 2.24x v 1.71x prior
- (NL) Netherlands Debt Agency (DSTA) sold total €2.73 vs. €2.0-4.0B indicated range in 3-month and 6-month Bills
- Sold €1.65B vs. €2.0B indicated in 3-month bills; Yield: -0.036% v -0.039% prior; Bid-to-cover: 3.02x v 3.48x prior
- Sold €1.08B vs. €2.0B indicated in 6-month Bills; Avg Yield: -0.015% v -0.018% prior; Bid-to-cover: 3.47x v 2.98x prior

*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***

***Equities***
Indices: FTSE 100 flat at 6,758, DAX -0.40% at 8,418, CAC-40 -0.50% at 4,001, IBEX-35 -0.80% at 8,448, FTSE MIB -0.80% at 17,371, SMI -0.50% at 8,237, S&P 500 Futures -0.20% at 1,662

- Equity markets in Europe are broadly lower. Spain's IBEX-35 has lagged as the Spanish government held a bill auction. Most banks have declined, following cautious broker commentary on shares of Deutsche Bank. Resource related firms are mostly higher, as commodity prices pared losses. Automakers in Germany are broadly lower, amid reports that China could announce a tax on certain luxury vehicles.

- UK movers [Capita Group +6% (contract award), Wincanton +5% (contract award), Marks & Spencer +4% (FY results above ests), Burberry +1% (FY results above ests), Vodafone flat (FY results in line, raised dividend); Carnival -13% (profit warning), Bwin Party -4.5% (Q1 sales declined y/y)]
- Germany movers [Commerzbank -4.5% (broker commentary), Deutsche Bank -2.5% (broker commentary), Continental -1.5% (broker commentary)]
- Switzerland movers [Leclanche +15% (expanded bridge loan); Sonova -3% (cautious outlook), Syngenta -1.5% (broker commentary)]
- Italy movers [Buzzi Unicem +4.5% (broker commentary); SNAM Rete -1% (broker commentary)]
- The Netherlands movers [Imtech (issued prelim FY12 results)]

Speakers:
- German official commented ahead of Wed EU Leader Summit that was seeking a joint Euro proposal with France. He added that German Chancellor Merkel and France President Hollande might discuss the Euro at the summit and the German-French euro area talks were intensive. Germany wanted to increase scope and intensity of tax-sharing data and a single EU energy market was one of its goals. EU Treaty change was not on Summit agenda (**Reminder: Reports circulated that Germany's Chancellor Merkel was said to be considering certain treaty changes aimed at giving more powers to Brussels)
- Sweden Central Bank (Riksbank): Financial markets were functioning well; developments in Euro Area were still main risk to Sweden
- ECB's Liikanen: Speculation of a Euro break-up have died out; ECB measures have helped narrow bond spreads
- Ireland Deputy PM Gilmore: States wants to see tax loopholes closed
- EU's Barroso express concern about EU's immediate growth prospects
- France Fin Min Moscovici was said to be seeking to raise sanctions against tax evasion which could include prison terms and impose 60% tax level on evaders
- Austria Chancellor Faymann: Austria to agree on bank data exchange with EU nations
- Sweden Fin Min Borg commented that bank rules to be tightened gradually over 5-10 years and Sweden should consider raising capital rules above 12%.
- German SPD (opposition) chief Steinbrueck commented that he would extend a motorway toll for trucks to all Federal roads. The move would reap an extra €2.0B annually and the proceeds would go into road and bridge repair
- Hungary Central Bank Financial Stability Report noted that its banking sector faced mild capital shortage in stress test. Hungary's banks had ample liquidity but their capital position had deteriorated. New lending unlikely to recover in the next 2 years, lending to SME's seen recovering in late 2014. Loan to deposit ration to drop to 100% by end of 2014 from 110% currently. Non-performing loans (NPL) might rise above 24% by end of 2014 vs. 19.1% at end 2012. Household loan portfolio deterioration may turn around by the end of 2013
- DMO minutes from quarterly consultations noted that it planned 11 Gilt auctions in Q3
And at least 1 syndicate bond in quarter. GEMMS had mixed views on 1/2 syndicated deals in Q2 and suggested focus on longer dated linkers. Some GEMMS called for 50 to 60 year sale through bank syndicate in July. GEMMS recommended index linked syndicate deal for 50-60 year Gilts for Sept but most GEMMS favored July sale of 30-40 year Gilts through syndicate. Investors wanted long-dated bonds through bank syndicates in Q3. New super long launch could wait until Sept.
- Portugal's Social Security Fund might increase government debt purchases. Under a plan being discussed, the fund could hold up to 90% of its portfolio in Portugal's government debt. Currently at least 50% of the portfolio must be in Portuguese debt
- Former PBoC Advisor Li Daokui: Chia's economy to enter consolidation phase as property market and export sector are no longer growth engines. China cannot be passive as advanced nations ease aggressively
- South Korea Finance Ministry Dir General Choi commented that rapid Yen depreciation was a concern for South Korea and that KRW currency volatility could trigger smoothing operations. Govt was monitoring money inflows to bond market as inflows might be adding to fx volatility. Awaiting good timing on USD-denominated bond sale; North Korea risks affect timing of dollar bond sale.

Currencies/Fixed Income:
- The EUR/USD was held to a tight range in the session as dealers debated expectations of negative rates in the Euro zone are overdone
- Softer inflation data sent the GBP currency to session lows below 1.5190 and offered BOE more room to stimulate should data does disappoint
- The USD/JPY was steady after the Japanese Econ Min Amari backed off from his comments expressing satisfaction with the current value of the JPY. The pair was edging closer towards the 103 handle. A BOJ rate decision was due on Wednesday but no change in policy was expected after April's bold easing was announced
- CNY strengthened towards 6.1300 for fresh 19-year highs on widening of trading band speculation. The CNY at highest level since end 1993 when govt unified official and market exchange rates
- Precious metals stage a sharp reversal over the latter part of Monday's session. Dealers attributed the reversal to some concerns over sovereign ratings. Fitch noted that slow growth in Europe and US had potential to negatively impact ratings while Moody's noted that the US sovereign rating could still be downgraded if rising debt issue was not addressed
- Looking ahead on Wednesday testimony by be given by Fed Chairman Bernanke and market participants will look for current intentions of the central bank

Political/In the Papers:
- (IT) Former Italy PM Monti: banking and fiscal crisis in euro zone is largely over; Italy is not faced with another election in 6 months
- (US) Fed's Evans (dove, FOMC voter): Would be open-minded about discussing possible adjustments to the pace of bond buying at the next several FOMC meetings; Economy is improving a lot at the moment but headwinds remain
- (CN) China may impose ultra-luxury vehicle tax - Chinese press
- (JP) Japan Econ Min Amari: Cannot say when correction in excessive yen strength ends; Will not comment on whether Yen correction has been completed - financial press; Hopes the market can find balance on exchange rate.
- (JP) JGB: Japan MoF sells ¥399.9B in 1.9% 40-yr bonds, bid to cover: 2.64x v 3.51x prior

**Looking Ahead***
All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
- (MX) Mexico Banamex Survey of Economists
- (EU) EU's Ashton in Brussels
- (ES) IMF mission to Madrid, Spain
- 06:00 (EU) OECD Q1 GDP Q/Q: No est v 0.0% prior
- 06:00 (DE) German Bundesbank Montly Report
- 06:00 (ES) Spain PM Rajoy
- 06:00 (TR) Turkey to sell New Zero 2014 Bonds
- 06:30 (EU) ESM to sell up to €2B in 6-month bills
- 06:30 (US) Daily Libor Fixings
- 06:30 (NO) Norway Central Bank Gov Olsen in Parliament
- 07:00 (EU) ECB allotment in 7-day Term Deposit Tender to offset Govt Bond Purchases` (SMP); To drain €201.0B
- 07:15 (SE) Sweden Central Bank Gov Ingves in Parliament
- 07:45 (US) Weekly ICSC Chain Store Sales
- 08:00 (PL) Poland Apr Sold Industrial Output M/M: -1.7%e v +9.2% prior; Y/Y: +3.0%e v -2.9% prior
- 08:00 (PL) Poland Apr Producer Prices M/M: -0.2%e v -0.2% prior; Y/Y: -1.5%e v -0.6% prior
- 08:50 (FR) France Debt Agency (AFT) to sell combined €7.4B in 3-month, 6-month, and 12-month bills
- 08:55 (US) Weekly Redbook Chain Store Sales
- 09:00 (IT) Italy PM Letta in Parliament
- 09:00 (IE) Ireland Fin Min Noonan in Parliament
- 09:30 (BR) Brazil Apr Tax Collections (BRL): 95.0Be v 79.6B prior
- 10:00 (US) Tsy Sec Lew testifies on FSOC in Senate
- 11:00 (UA) Ukraine to sell Bills and Bonds
- 11:00 (US) Fed to purchase U$2.75-3.50B in Notes
- 11:30 (US) Treasury to sell $30B in 4-Week Bills
- 11:30 (US) Fed's Bullard speaks on Monetary Policy in Frankfurt
- 12:30 (CA) Bank of Canada (BoC) Gov. Carney speech in Montreal
- 13:00 (US) Fed's Dudley in NY
- 13:30 (BR) Brazil Apr Caged Formal Job Creation M/M: 210Ke v 112.5K prior
- 16:30 (US) Weekly API U.S. Crude Oil Inventories
- 19:50 (JP) Japan Apr Total Merchandise Trade Balance: -¥620.6Be v -¥362.4B prior; Adjusted Merchandise Trade Balance: -¥602.9Be v -¥922.0B prior
- (JP) Bank of Japan Interest Rate Decision (no set time)
Source
Copyright (c) 2013 Trade The News, Inc.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com/ for your no-obligation FREE trial.
]]> Tue, 21 May 2013 09:50:38 GMT TradeTheNews.com Asian Market Update: JPY weakens after Japan Econ Min Amari clarifies position on yen correction; AUD gains on neutral policy bias in RBA minutes http://www.tradethenews.com/Asia-Market-Update/MarketUpdate?storyId=1329406 TradeTheNews.com Staff - (AU) AUSTRALIA RBA POLICY MINUTES FOR MAY MEETING: Decided some easing scope should be used at the May meeting
- (AU) AUSTRALIA MAR CONFERENCE BOARD LEADING INDEX: 0.1% V 0.3% PRIOR (3rd consecutive increase)
- (NZ) NEW ZEALAND Q2 RBNZ 2-YEAR INFLATION EXPECTATION: 2.1% V 2.2% PRIOR (multi-year low)
- (NZ) NEW ZEALAND APR CREDIT CARD SPENDING M/M: +0.4% V -0.3% PRIOR; Y/Y: 4.0% V 3.7% PRIOR
- (NZ) NEW ZEALAND APR NET MIGRATION: 1.6K V 1.3K PRIOR

***Markets Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.1%
- S&P/ASX -0.7%
- Kospi -0.2%
- Shanghai Composite -0.1%
- Hang Seng -0.4%
- Jun S&P500 -0.1% at 1,663
- Jun gold +0.3% at $1,384/oz
- Jul crude oil -0.1% at $96.88/brl

***Observations/Insights***
- Asian equity markets traded on a more cautious tone, with bullish momentum stalling ahead of the critical testimony by Fed Chairman Bernanke and the next decision on monetary policy from the Bank of Japan on Wednesday. Investors across the globe are looking for clues from the Fed chief that the recent press speculation suggesting a taper of QE could be coming as early as this year, and any hints of less accommodation could potentially spark a bout of profit-taking across the risky assets.
- In the run-up to that event, much of the action in the currency markets was the reversal from the dollar weakness overnight. In Tokyo, Japan Economic Minister Amari backtracked from his prior suggestion that the excessively strong JPY currency (yen) has corrected quite a bit, noting he cannot say when the correction ends or at what level it should be deemed as complete. USD/JPY rose some 60pips following those comments to trade above ¥102.70 before retreating below the ¥102.50 level.
- In Sydney, Reserve Bank of Australia released the minutes from its May policy meeting when it surprised majority expectations for a hold with a 25bp cut. In the minutes, RBA noted some scope for easing should be used, even though inflation was likely to remain consistent with target over the next two years, pointing to high AUD, below-trend 2013 GDP, subdued credit growth, and tepid labor market. Some of the analysts indicated the RBA statement was more neutral than expected, giving little indication it was prepared to ease further in the short term, and that the May move had more to do with the persistence of the Aussie strength. AUD/USD, which had come off its highs going into minutes release, traded back above the $0.98 level. Likewise, AUD/JPY bounced from its pre-minutes lows near ¥100.10 to trade above ¥100.50.

***Fixed Income/Commodities***
- (AU) Australia MOF (AOFM) sells A$250M in 2022 bonds, avg yield 1.25%; Bid-to-cover 3.84x
- JGB: Japan MoF sells ¥399.9B in 1.9% 40-yr bonds, bid to cover: 2.64x v 3.51x prior
- USD/CNY: (CN) PBoC sets yuan mid point at 6.1911 v 6.1389 prior close (record high setting for yuan)
- Westpac analyst: AUD and NZD may be oversold in the short-term; Could rise to parity and $0.82 respectively on Bernanke comments later this week - CNBC
- SLV: iShares Silver Trust ETF daily holdings fall to 10,198 tons from 10,252 tons (lowest since 10,163 on Jan 15th)
- GLD: SPDR Gold Trust ETF daily holdings fall by 6.9 tons to 1,031.5 ton (lowest since 1,029.0 in Mar of 2009)
- (AU) Australia Newcastle weekly coal exports for week ended May 20th w/w: -20.5% v -7.3% prior

***Speakers/Political/In the Papers***
- (JP) Japan Econ Min Amari: Cannot say when correction in excessive yen strength ends; Will not comment on whether Yen correction has been completed - financial press
- (US) Fed's Evans (dove, FOMC voter): Fed could continue buying bonds at the current rate through the fall or it could abruptly end the buying program if the labor market improvement looks to continue - Q&A
- (JP) Former World Bank Pres Zoellick: Japan's Q1 GDP could be a "sugar high" following recent stimulus
- (CN) China National Development and Reform Commission (NDRC): China may hold meeting on urbanization by end of May - Chinese press
- (KR) South Korea President Park's approval rating fell 2.3pts to 53.1%; First drop in 7 weeks - Korean press

***Equities***
- TSE.AU: Lowers FY13 net profit guidance to A$62-65M (A$85-90M prior); Cuts 113 jobs; -22%
- RIC.AU: To hold a shareholder meeting on June 24th to discuss A$0.075/shr dividend; +2.6%
- STO.AU: Plugged a leaking well in south west Queensland after it released nearly 250K liters - AFR
- Yamaha 7272.JP: Looking to aggressively market to India consumers; Aims to raise motorcycle sales in India by 30% to 500K units in 2013 - Nikkei News
- QIHU: CFO: Almost all business segments performed better than expected; No longer a speculation Qihoo is working with Google to help monetize traffic - CNBC

- CCL: Lowers FY13 guidance to $1.45-1.65 v $1.99e, Rev -3% to -2% y/y, implies $14.9-15.1B v $15.9Be (guided $1.80-2.10, Rev "in line with prior" on Mar 15th); Affirms Q2; -4.1% afterhours

Source
Copyright (c) 2013 Trade The News, Inc.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com/ for your no-obligation FREE trial.
]]> Tue, 21 May 2013 04:55:51 GMT TradeTheNews.com US Market Update: Trading Volumes Weak on a Multi Merger Monday http://www.tradethenews.com/US-Market-Update/MarketUpdate?storyId=1329118 TradeTheNews.com Staff - (EU) European Parliament plenary session
- (PT) Portugal Apr Producer Prices M/M: % v 0.1% prior; Y/Y: % v 1.5% prior
- (BR) Brazil May Final IGP-M Inflation: 0.0% v 0.0%e
- (PL) Poland Apr Avg Gross Wages M/M: -0.1% v -0.9%e; Y/Y: 3.0% v 2.2%e
- (PL) Poland Apr Employment M/M: -0.2% v -0.1%e; Y/Y: -1.0% v -0.9%e
- (US) Apr Chicago Fed Nat Activity Index: -0.53 v -0.23 prior
- (CL) Chile Q1 GDP Q/Q: 0.5% v 1.0%e; Y/Y: 4.1% v 4.5%e
- (CL) Chile Q1 Current Account: -$1.7B v -$1.8Be

- The DJIA and the S&P500 are pretty limp this morning with trading volumes way below average, while the Nasdaq is pushing higher on news out of selected tech stocks. The Nasdaq is up 0.06%, while the DJIA and S&P500 are flat.

- The FX markets saw a bit of retracement in last week's trends as the greenback moved off its highs and the yen drifted away from trend lows. USD/JPY fell by more than 50 pips ahead of the NY morning. Dealers were wondering whether an implied ceasefire was underway in the stealth currency wars. Japan Econ MIn Amari suggested that excessive gains had already been corrected by a large amount and any further weakness in the yen could actually become a detriment.

- Shares of JA Solar are up 30% after the firm lost less than expected in its Q1 and revenue was way above par. The firm's margins tripled on a y/y basis. The Chinese solar panel manufacturer saw robust growth in shipments to Japan. Other Chinese solar names are rocketing higher as well this morning.

- Manufacturers Caterpillar and Emerson both released monthly statistics that echo the poor manufacturing sector numbers seen in recent data reports, including very poor regional Fed April manufacturing reports and the March factory orders and durables data. Both firms saw mid single digit declines, in orders for Emerson and dealer sales for Caterpillar.

- Actavis will acquire Warner Chilcott in all-stock deal valued at approx $8.5B. Warner Chilcott shareholders will receive 0.160 shares of new Actavis for each Warner Chilcott share they own, which equates to a value of $20.08 based on Actavis' closing share price of $125.50 on May 17th. The acquisition also makes Actavis the premiere women's health company.

- Confirming widespread rumors from last week, Yahoo said it would acquire trendy blogging site Tumblr for $1.1B in cash. Tumblr will maintain a degree of independence in managing its 108 million blogs with CEO and founder David Karp at the helm, per Yahoo's promise "not to screw it up." There has been plenty of skepticism about the deal, and Yahoo warned Tumblr would not contribute to its bottom line until 2014 at the earliest.

- Websense agreed to be acquired by Vista Equity Partners for $24.75/shr in cash, in a deal valued at $1B. The company is trying to transition from its roots blocking inappropriate websites in the workplace into a provider of broader online-security services, and Vista will help it accomplish this goal.

***Looking Ahead***
- 11:30 (US) Treasury to sell $55B in 3-Month and 6-Month Bills
- 12:00 (US) IMF's Cottarelli
- 13:00 (US) Fed's Evans speaks on Economy in Chicago
- 15:00 (AR) Argentina Q1 Total Unemployment Rate: No est v % prior
- 17:00 (CO) Colombia Mar Trade Balance: -$100Me v +$386.4M prior; Imports CIF: No est v $4.5B prior
- 21:30 (AU) RBA May policy minutes

Source
Copyright (c) 2013 Trade The News, Inc.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com/ for your no-obligation FREE trial.
]]> Mon, 20 May 2013 14:38:58 GMT TradeTheNews.com EU Market Update: Whit Monday holiday has Europe on the sidelines http://www.tradethenews.com/EU-Market-Update/MarketUpdate?storyId=1328811 TradeTheNews.com Staff ***Notes/Observations***
- Nikkei225 index trades higher than the US Dow Industrial 30 index for the first time since May 2010
- Ceasefire in the currency war ??? Japan Econ MIn Amari suggesting that excessive gains have already been corrected by a large amount and any further weakness could actually become a detriment
- Short-range North Korea missile launch into the Sea of Japan this weekend
- China property sector retained its allure despite the govt steps to curb housing inflation. April property prices across 70 cities rose 4.9% y/y - the biggest increase since Apr 2011
- European market participation light die to Whit Monday holiday (Pentecost)

***Economic Data***
- (JP) Japan Mar Final Leading Index CI: 97.9 v 97.6 prelim; Coincident Index CI: 93.8 v 93.3 prelim
- (JP) Japan Apr Nationwide Dept Store Sales Y/Y: -0.5% v +3.9% prior; Tokyo Dept. Store Sales Y/Y: 2.1% v 6.4% prior
- (JP) Japan Apr Final Machine Tool Orders Y/Y: -23.6% v -24.1% prelim
- (JP) Japan Apr Convenience Store Sales Y/Y: -2.6% v -0.4% prior
- (EU) ECB: €122M borrowed in overnight loan facility vs. €106M prior; €83.0B parked in deposit facility vs. €96.7B prior
- (TW) Taiwan Apr Export Orders Y/Y: -1.1% v -1.0%e
- (IT) Italy Mar Industrial Orders M/M: 1.6% v 0.6%e v -2.5% prior; Y/Y: -10.0% v -8.4%e
- (IT) Italy Mar Industrial Sales M/M: -0.9 v -1.1% prior; Y/Y: -7.6% v -6.0% prior
- (TW) Taiwan Q1 Current Account Balance: $11.1B v $16.0B prior
- (HK) Hong Kong Apr Unemployment Rate: 3.5% v 3.5%e
- (IT) Italy Mar Current Account: +€1.9B v -€1.6B prior

Fixed Income:
- None seen

*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***

***Equities***
FTSE 100 flat at 6,725, DAX +0.50% at 8,436, CAC-40 +0.10% at 4,007, IBEX-35 -0.20% at 8,569, FTSE MIB -0.70% at 17,479, SMI +0.30% at 8,280, S&P 500 Futures -0.10% at 1,662

- Equity markets in European are mostly higher, tracking the gains seen in Asia. Germany's DAX traded at a fresh record high earlier during the session, but has since pared gains. In London, the FTSE 100 has traded at new 5.5 year highs. Italy's FTSE MIB has lagged, amid declines in shares of Telecom Italia. European banks are mostly higher, led by shares of Commerzbank and RBS. Miners have capped the upside for equity markets, as they have been weighed down by the declines in commodity prices, most notably silver.

- UK movers [Ryanair +6% (FY profits above ests);First Group -21% (rights offering, cut dividend), Fresnillo -3% (decline in silver prices), ENRC -2.5% (said takeover approach undervalues the company), Petropavlovsk -2.5% (broker commentary) Thomas Cook -2%(broker commentary)]
- Germany movers [Rheinmetall +3.5% (broker commentary)]
- France movers [STMicroelectronics +3% (broker commentary), EDF +1% (broker commentary)]
- Italy movers [Impreglio +17% (contract award)]
- The Netherlands movers [TomTom +6% (takeover speculation)]

Speakers:
- Spain Budget Min Montoro: Spain economic recovery is proceeding faster than markets are predicting
- Poland Central Bank's Hausner stated that he saw potential room for more interest rate cuts as inflation stays below the 2.5% target. He added that needed to wait for effects of past easing and not make nervous moves
- Italy Govt to set aside €12B to combat youth unemployment. Seeks to cut youth unemployment to 30% from 36.3% registered in March for age group between 15-24
- Brazil President Rousseff stated that Apr CAGED Formal Job Creation: 200K (**Note compares to 210.0Ke) - Tel Aviv conference
- South Korea Fin Min Hyun: South Korea to ease KRW movement if fx volatility intensifies; closely monitoring foreign capital flows but no immediate plans to strengthen foreign capital controls
- North Korea said to have fired 3 additional short-range projectiles into Eastern Waters (**Note: over the weekend North Korea fired four short-range missiles into the Sea of Japan)
- North Korea official: Exercising sovereign right to test rockets
- South Korea Defense Ministry Kim: North Korea has yet to finish developing 300-millimeter-caliber multiple rocket launchers; Whether they are missiles or rockets, a sharp increase in the target range allows the North to aim at more objects and targets, An increase in the size of caliber means larger explosiveness and increased threats

Currencies/Fixed Income:
- A very quiet start to the trading week as Whit Monday holiday had market participants sit on the sidelines.
- The FX markets saw a bit of retracement in last week's currency trends as the USD moved off its highs while the JPY drifted away from trend lows.
- The USD/JPY was lower by 50+pips ahead of the NY morning. Dealers were wondering whether an implied ceasefire was underway in the stealth currency wars. Japan Econ MIn Amari suggested that excessive gains had already been corrected by a large amount and any further weakness in the yen could actually become a detriment.

Political/In the Papers:
- (JP) Japanese government on Monday upgraded its assessment of the
economy for the first time in two months, citing gradual improvement in exports
and industrial output.
- (JP) BOJ gov Kuroda: natural for long-term JGB yields to rise as inflation expectation is picking up
- (CN) China may expand property tax trial to several cities during the current year - Chinese press
- (CN) China Academy of Social Sciences (CASS) research warns of risks to HK economy from potential asset price bubbles
- (EU) ECB's Weidmann: Improved lending conditions and lower interest rates should not lead to complacency about euro zone crisis - German press - (IT) Moody's: Italy's stronger budgetary performance still justifies a higher rating than Spain
- (IT) EU's Rehn: Content with the Italy govt's intent to reach a balanced budget, will conduct an assessment of the measures on May 29
- (US) Treasury Sec Lew: Congress must act soon to protect the credit worthiness of the US - letter to Congress; Notes the Treasury's extraordinary measures will expire after September 2 yet cannot provide exact estimate on how long the measures will last, will not negotiate with Congress over the debt limit; Confirms Treasury will begin its extraordinary measures after reaching the debt limit
- (US) Moody's: Budget projections are Credit Positive for US

**Looking Ahead***
All times listed for economic events are denominated in Eastern Standard Time (Add 4 hours for GMT equivalent)
- (EU) European Parliament plenary session
- (SK) Slovakia Debt Agency (ARDAL) to sell 2016 and 2024 Bonds
- 06:00 (PT) Portugal Apr Producer Prices M/M: No est v 0.1% prior; Y/Y: No est v 1.5% prior
- 06:00 (IL) Israel to sell bonds
- 06:00 (RO) Romania to sell Bills
- 06:30 (US) Daily Libor Fixings
- 07:00 (RO) Romania to sell RON300M in Bonds
- 07:00 (BR) Brazil May Final IGP-M Inflation: 0.0%e v 0.3% prelim
- 07:30 (BR) Brazil Central Bank Weekly Economists Survey
- 08:00 (PL) Poland Apr Avg Gross Wages M/M: -0.9%e v +3.3% prior; Y/Y: 2.2%e v 1.6% prior
- 08:00 (PL) Poland Apr Employment M/M: -0.1%e v -0.2% prior; Y/Y: -0.9%e v -0.9% prior
- 08:30 (US) Apr Chicago Fed Nat Activity Index: No est v -0.23 prior
- 08:30 (CL) Chile Q1 GDP Q/Q: 1.0%e v 1.5% prior; Y/Y: 4.5%e v 5.7% prior
- 08:30 (CL) Chile Q1 Current Account: -$1.8Be v -$2.9B prior
- 09:30 (EU) ECB calls for bids in 7-Day Main Refinancing Tender
- 10:00 (IE) Ireland PM Kenny at Boston College commencement
- 11:00 (US) Fed to purchase $1.25-1.75B in Notes
- 11:30 (US) Treasury to sell $55B in 3-Month and 6-Month Bills
- 12:00 (US) IMF's Cottarelli
- 13:00 (US) Fed's Evans speaks on Economy in Chicago
- 15:00 (AR) Argentina Q1 Total Unemployment Rate: No est v % prior
- 17:00 (CO) Colombia Mar Trade Balance: -$100Me v +$386.4M prior; Imports CIF: No est v $4.5B prior
- 21:30 (AU) RBA May policy minutes
Source
Copyright (c) 2013 Trade The News, Inc.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com/ for your no-obligation FREE trial.
]]> Mon, 20 May 2013 09:31:10 GMT TradeTheNews.com Asian Market Update: Bullish sentiment undettered by sharp gains in China housing prices and North Korean rocket launch http://www.tradethenews.com/Asia-Market-Update/MarketUpdate?storyId=1328701 TradeTheNews.com Staff - (CN) CHINA APR NEW HOME PRICES M/M: RISES IN 67 OF 70 CITIES VS 68 PRIOR; Y/Y: PRICES RISES IN 68 OF 70 CITIES VS 67 PRIOR
- (TH) THAILAND Q1 Q/Q: -2.2% V -1.5%E; Y/Y: 5.3% V 6.0%E
- (NZ) NEW ZEALAND APR PERFORMANCE SERVICES INDEX: 56.1 V 55.6 PRIOR
- (UK) UK MAY RIGHTMOVE HOUSE PRICES M/M: 2.1% V 2.1% PRIOR; Y/Y: 2.5% V 0.4% PRIOR

***Markets Snapshot (as of 03:30 GMT)***
- Nikkei225 +1.4%
- S&P/ASX +1.0%
- Kospi +0.1%
- Shanghai Composite +0.9%
- Hang Seng +1.8%
- Jun S&P500 -0.1% at 1,662
- Jun gold -1.7% at $1,342/oz
- Jun crude oil -0.1% at $96.14/brl

***Observations/Insights***
- Equities are the favored asset class in the Asia session despite the accelerating housing prices in China and more provocations from North Korea - developments which in prior months would have dampened investors appetite. Hong Kong's Hang Seng is leading the charge in a catch-up rally following Friday holiday, reaching a 3-month high above 23,400. Shanghai Composite is up about 1% above 2,300 - a near 2-month high. Conversely, South Korea's Kospi is up a marginal 0.1%, trading more cautiously despite returning from holiday break on Friday as well, as investors tread lightly following a short-range North Korea missile launch into the Sea of Japan this weekend.
- In Japan, Economic Minister Amari briefly spooked the yen shorts at the open, suggesting that excessive gains have already been corrected by a large amount and any further weakness could actually become a detriment. Additionally, Amari said it will be up the govt to minimize volatility resulting from an abrupt shift from bonds to stocks. BOJ Gov Kuroda added to that sentiment, noting it is natural for long-term JGB yields to rise as inflation expectation pick up, but also warned the central bank actions would prevent yields from rising too steeply. After strong preliminary Q1 GDP, Japan Cabinet Office also upgraded its economic assessment for the month of May following a pause in April, noting exports are showing signs of recovery and output is gradually recovering. USD/JPY briefly fell over 100pips all the way toward the ¥102 handle before recovering back above ¥102.50 later in the day. Other majors also traded with a bias of weaker USD - AUD/USD rose above Friday highs of $0.9770, EUR/USD rose to $1.2850, and NZD/USD traded back above $0.81 handle.
- China property sector retained its allure despite the govt steps to curb housing inflation. April property prices across 70 cities rose 4.9% y/y - the biggest increase since Apr 2011 - while m/m growth was at 1.0%, down from 1.2% in March. Analysts are increasingly more concerned that policymakers will be able to control property market gains, just as China Academy of Social Sciences (CASS) warned about risks of property/financial bubble brewing in Hong Kong.

***Fixed Income/Commodities***
- (KR) South Korea MOF sells KRW2.05T in 10-yr govt bonds, avg yield 2.92%
- EUR/USD: Goldman Sachs CEO Blankfein: Risk of a euro break-up is smaller than a year ago; Political will behind common currency still intact - German press
- SLV: iShares Silver Trust ETF daily holdings fall to 10,252 tons from 10,321 tons (lowest since Jan 15th) - update as of May 17th
- GLD: SPDR Gold Trust ETF daily holdings fall by 3.0 tons to 1,038.4 ton (lowest since 1,038.2 in Mar of 2009) - update as of May 17th

***Speakers/Political/In the Papers***
- (JP) BOJ gov Kuroda: natural for long-term JGB yields to rise as inflation expectation is picking up
- (JP) Japan Econ Min Amari: Core CPI showing signs of turning positive due to BOJ policies; CPI still in mild deflation - financial press
- (JP) Japan PM Abe cabinet support fall slightly to 70.9% in May from 72.1% in Apr - Kyodo
- (JP) Japan PM Abe's May cabinet support rate rises to 65% from 60% in April - Asahi

- (CN) China may expand property tax trial to several cities during the current year - Chinese press
- (CN) China Academy of Social Sciences (CASS) research warns of risks to HK economy from potential asset price bubbles; Citing dependency on financial and real estate industry - HK press
- (CN) China Ministry of Finance (MOF) researcher Su: China may face big scale of capital inflows in the next few years
- (CN) PBoC researcher Ji: China fiscal and financial risks are controllable - Chinese press
- (CN) Nomura chief China economist: China govt faced with dilemma reconciling between property prices and economic growth - financial press
- (CN) UBS China economist Tao Wang: Expect property sector policy to stabilize in the coming months and see a modest property recovery to continue

- (AU) According to Commonwealth Bank's (CBA) Business Sales Indicator (BSI), Australia Apr consumer spending rose 0.5pts m/m (8th consecutive m/m increase) and 4.9pts y/y- SMH
- (NZ) According to ASB, New Zealand Q1 investor confidence rose to 18% from 13% in Q4, highest level since late 2010 - NZ press
- (NZ) New Zealand Fin Min English: Rising home prices may pressure RBNZ to raise interest rates sooner - NZ media

- (KR) South Korea Foreign Min Yun Byung-se: Provocations by the North are "grave" - Korean press
- (KR) South Korea Defense Ministry spokesperson: "Our military is closely monitoring activities by the North's military since there is a possibility of additional launches in the future."

- (EU) ECB's Weidmann: Improved lending conditions and lower interest rates should not lead to complacency about euro zone crisis - German press
- (UK) BOE Gov King: Debate over fiscal policy is overblown; Everyone agrees on the need for medium-term fiscal adjustment and automatic stabilizers; Euro zone risks still pose biggest threat to UK - UK press

***Equities***
- LEI.AU: On track to deliver FY13 underlying net within guidance; Reiterates FY13 Net guidance A$520-600M.
- LEI.AU: CFO: May undertake cost cutting to preserve margins - AFR
- WBC.AU: Lowers its 1-year fixed home loan rate for new customers to 4.79% - SMH
- SUN.AU: Considering selling off its "non-core bank" - AFR
- Hon Hai 2317.TW: According to China Labor Watch rights group, 3 worker suicides occured at Hon Hai's China plant in the past 3 weeks - financial press
- BYD 1211.HK: First electric taxis made by BYD launched in Hong Kong this weekend - financial press
- QIHU: Reports Q1 $0.14 v $0.14e, R$109.9M v $106Me
- TM: Plans to increase output of lithium-ion batteries for the Prius and other models to over 200K units per year; To invest about ¥20B to expand capacity at Kosai plant - Nikkei News
- 8411.JP: Mizuho bank to start offering reverse mortgages in July - Nikkei News

- YHOO: Board said to have approved $1.1B acquisition of Tumblr - financial press
Source
Copyright (c) 2013 Trade The News, Inc.
Above listed TradeTheNews.com market updates are delayed 5 minutes. To sample the live audio broadcasts, real-time headlines and research on demand in real time, please go to http://www.tradethenews.com/ for your no-obligation FREE trial.
]]> Mon, 20 May 2013 04:43:45 GMT