Wall Street Breakfast: Saudi Arabia Issues $17.5B Worth Of Debt Amid High Demand

|
Includes: AMD, AXP, CTXS, DRWI, EBAY, GLCNF, GWR, HAL, INTC, MAT, MS, NSRGF, NTDOY, NWS, NWSA, QQQ, RHHBF, S, SPY, TSLA, WFC
by: Wall Street Breakfast
Wall Street Breakfast
Seeking Alpha's flagship daily business news summary, gives you a rapid overview of the day's key financial news. It is published before 7:00 AM ET every market day and delivered to over 900,000 email subscribers.

Saudi Arabia has raised $17.5B in the largest ever bond sale by an emerging-market country as it looks to reduce its $97B budget deficit. The government could have raised even more, with Bloomberg reporting that it received orders of $67B. The debt issue is part of Saudi Arabia's plan to open up its $650B economy and lower its massive reliance on oil.

Economy

Australia's unemployment rate slipped to 5.6% in September from 5.7% in August, caused by a slight fall in the participation rate to 64.5%. However, the Australian Bureau of Statistics has had problems with the data in recent years and so one analyst is skeptical. "The numbers are rubbish," said TD Securities' Annette Beacher. "No one is going to believe these numbers." The AUD-USD was -0.8% at $0.7658 at the time of writing.

Stocks

In a first of its kind, Sprint (NYSE:S) is set to issue $3.5B in five-year bonds that are backed by its wireless spectrum, which the telecom operator values at $16.4B. Investors seem to like the idea, with orders hitting $30B. The "air-wave bonds" are expected to yield 3.5% and could cut Sprint's financing costs and boost its cash flows by an estimated $200M a year.

An adviser to the Court of Justice of the European Union (ECJ) has backed Intel's (NASDAQ:INTC) appeal against a record €1.06B ($1.16B) fine for antitrust violations and believes a lower court should review it. "Intel's appeal...for abuse of its dominant position should be upheld," said Advocate General Nils Wahl, whose advice is non-binding but is often followed. EU regulators imposed the penalty in 2009 for Intel's attempts to stifle Advanced Micro Devices (NYSE:AMD).

New Tesla vehicles will have full self-driving hardware built in. "Eight surround cameras provide 360 degree visibility around the car at up to 250 meters of range," Tesla (NASDAQ:TSLA) says, adding that the vehicles will also incorporate twelve updated ultrasonic sensors and forward-facing radar "capable of seeing through heavy rain, fog, dust and even the car ahead."

California's attorney general is investigating Wells Fargo (NYSE:WFC) on criminal charges of identity theft in connection with its bogus-account scandal, The Los Angeles Times reports. The state's Justice Department is demanding information about the unauthorized opening of the accounts of California customers and the fees tied to those accounts, as well as about e-mail and other communications.

Roche's Q3 revenue climbed 4.5% to 12.48B Swiss francs ($12.6B) and almost hit forecasts, boosted by the strong performance of several of the company's cancer and immunotherapy treatments. These include Roche's (OTCQX:RHHBF) trio of drugs for treating the HER2-positive form of breast cancer, while the initial uptake of cancer immunotherapy Tecentriq has also been strong. Roche's shares were -0.5% in Zurich at the time of writing.

Nestle's 9-month sales inched up 1% to 65.51B Swiss francs ($66.19B) but missed estimates of 66B francs as the food giant continued to suffer from deflation and low prices for raw materials. Nestle's (OTCPK:NSRGF) organic sales rose 3.5% but came in below forecasts of +3.7% and the company cut its FY outlook for the key metric to +3.5% from a prior forecast of +4.2%. Shares were -0.8% in Zurich at the time of writing.

Nintendo rose 3.3% in Tokyo on news that the company plans to release a teaser video highlighting its new gaming console, codenamed NX, later today. The stakes are high for the unit as console gaming is still at the center of Nintendo's (OTCPK:NTDOY) business despite a burgeoning pivot toward smartphone gaming and the Wii U's relatively disappointing sales of 13M units since its launch in 2012.

Glencore has agreed to sell its Australian coal haulage business GRail to Genesee & Wyoming (NYSE:GWR) for A$1.14B ($874M). The deal takes Glencore's (OTCPK:GLCNF) asset sales to $4.7B in 2016 and puts the mining and trading giant on course to reduce its net debt to $16.5-17.5B by the end of the year.

DragonWave vaulted 54% in post-market trading on several times normal volume after saying that its equipment has been chosen for Sprint's (S) network optimization work. DragonWave's (NASDAQ:DRWI) microwave backhaul equipment will be part of Sprint's densification and optimization strategy, chosen because of strong security as well as dual-channel capability and "industry-leading" system gain.

Dow Jones is planning a substantial revamp at The Wall Street Journal as part of a review to better address costs amid an ongoing decline in print advertising. The "WSJ2020" plan will look to rebalance the news organization's revenue streams as its customers flock to digital formats and a revised version of the print newspaper will launch in the next few weeks with some sections consolidated. Dow Jones is owned by News Corp (NWS, NWSA).

Wednesday's Key Earnings

Morgan Stanley (NYSE:MS) ends +1.9% following "expected" earnings beat
American Express +5.5% (NYSE:AXP) AH after Q3 beat, raises full-year guidance
Mattel (NASDAQ:MAT) jumps 6% AH after Q3 revenue holds up
eBay (NASDAQ:EBAY) tumbles 6% AH, with holiday-quarter guidance uninspiring
Halliburton (NYSE:HAL) closes +4.25% after surprise profit as it "relentlessly" manages costs
Citrix Systems (NASDAQ:CTXS) +5.4% AH as it Q3 tops projections

Today's Markets

In Asia, Japan +1.4% to 17236. Hong Kong +0.3% to 23374. China +0.1% to 9760. India +0.5% to 28130.
In Europe, at midday, London flat. Paris +0.3%. Frankfurt +0.3%.
Futures at 6:20, Dow +0.2%. S&P +0.1%. Nasdaq +0.1%. Crude -1% to $51.32. Gold flat at $1270.25.
Ten-year Treasury Yield flat at 1.76%.

Today's Economic Calendar
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
9:45 Bloomberg Consumer Comfort Index
10:00 Leading Indicators
10:00 Existing Home Sales
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet

Companies reporting earnings today »