Today - Wednesday, December 11, 2013
10:20 AMAutohome the latest Chinese Web IPO to fly higher
- After pricing its 7.82M-share IPO at $17, above a range of $14-$16, Autohome (ATHM) opened at $30.16 and is currently at $29.97, up 76.3%. The Chinese automotive site owner currently has a market cap of $3.12B, or over 20x its likely 2013 sales (given recent growth rates).
- Over the first nine months of 2013, Autohome had revenue of $101M (+49% Y/Y), and net income of $55M. The company had over 7.7M registered users as of Sep. 30, and over 2.4M automobile listings.
- Other recent successful Chinese Web IPOs: Qunar, 58.com, 500.com
- F-1, IPO preview
7:08 AMFutures edge lower
- Stock index futures are slightly lower in what - at the moment - is looking like a 3rd consecutive slow day of action.
- Europe's up moderately and Asia posted sizable losses overnight, the Nikkei, the Hang Seng, and Shanghai all off more than 1%.
- The 10-year Treasury yield is up one basis point at 2.82%, and gold's flat at $1,258 following yesterday's big rally.
- Index ETFs: SPY, QQQ, IVE, SH, DIA, SSO, SDS, PSQ, IVV, SPXU, UPRO, VOO, QID, TQQQ, DOG, RSP, SQQQ, DXD, QLD, RWL, EPS, UDOW, SDOW, DDM, IVW, SPYG, RPG, SPYV, BXUB, RPV, QQEW, VOOG, QQQE, VOOV, TRND, SFLA, BXUC, QQXT, FTA, BXDB, TNDQ
5:30 AMWorld shares mixed following U.S. budget deal
- Global equities are mixed as markets mull the impact of U.S. Congressional leaders agreeing to a budget deal.
- Such an agreement would normally be construed as a good thing, but not so when there's the Fed's QE to consider.
- "The deal...would certainly have the potential to bring forward the prospect of tapering," says Interactive Investor's Rebecca O'Keeffe. This, in turn, would weigh on stocks.
- Asian shares are lower, with profit-taking also affecting shares. Japan -0.6%, Hong Kong -1.7%, China -1.5%, India -0.4%.
- EU Stoxx 50 +0.3%, London +0.1%, Paris +0.7%, Frankfurt +0.2%, Milan -0.2%, Madrid +0.5%.
- U.S. stock futures: Dow flat. S&P flat. Nasdaq -0.05%.
4:36 AMEU agrees on plan for dealing with failing banks
- European finance ministers could be creating the conditions for a future run on banks after agreeing on a framework for winding down failing firms in the sector.
- Crucially, major depositors will be a first port of call if a bank needs cash to shore up its finances, as happened in such brutal fashion in the bailout of Cyprus earlier this year.
- Money could then be taken from a country's national resolution fund, which could request assistance from the funds of other nations. Eventually, a common European-wide fund would be created.
- ETF: EUFN
3:59 AMRBS finance chief quits after just 10 weeks
- RBS (RBS) Finance Director Nathan Bostock has resigned after just 10 weeks in the job and is returning to Santander (SAN), where he has held several senior roles.
- Bostock will become the chief risk officer and deputy CEO at Santander's U.K. operations, which are set to be spun off at some point and separately listed.
- Bostock's departure is the latest blow for RBS as it carries out a review of its operations; last month, for example, IT problems left over 1M customers stranded.
- Shares are -1.6% in London.(PR)
3:44 AMGM to end Australian production in four years
- GM (GM) intends to follow in Ford's footsteps and halt manufacturing in Australia by 2017.
- GM will take pretax charges of $400-$600M in Q4, while 2,900 workers will lose their jobs.
- "The decision to end manufacturing in Australia reflects the perfect storm of negative influences the automotive industry faces in the country, including the sustained strength of the Australian dollar, high cost of production, small domestic market, and arguably the most competitive and fragmented auto market in the world," outgoing GM CEO Dan Akerson said.
- GM's decision will leave Toyota (TM) as the last major car manufacturer in Australia, although the latter might now also leave. The move will "place unprecedented pressure on the local supplier network and our ability to build cars in Australia," Toyota said.
- The country's car industry is now in serious danger of collapse; it supports over 40,000 workers and 150 supplier companies. (PR)
- Australia ETFs: EWA, AUSE, FAUS
3:27 AMJapanese machinery orders recover smartly
- As expected, Japanese machinery orders rose 0.6% in October vs -2.1% in September.
- On year, bookings +17.8% vs +11.4% previously and consensus of +15%.
- The figures "should ease concerns that the fledgling recovery in business...(investment) has already come to an end," says Economist Marcel Thieliant. Q3 GDP was revised down earlier this week, partly due to lower-than-expected business expenditure.
- Core orders topped ¥800B for the third consecutive month for the first time since 2008. The trend "points to a renewed rise in capital spending" in Q4, says Thieliant.
- The Nikkei is -0.6%, while the USD-JPY is -0.2% at ¥102.60. (PR)
- ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, JSC, JPP, JGBL, ITF, DXJS, JGBT, JPNL, JPNS, FJP
3:14 AMCostco EPS misses forecasts| Comment!
2:23 AMGerman CPI returns to growth
- As expected, German CPI rose 0.2% on month in November following a drop of 0.3% in October.
- On year, inflation edged up to 1.3% from 1.2%.
- Harmonized CPI +0.2% on month vs -0.3%.
- On year, HCPI +1.6% vs +1.2%.
- All the figures are as expected.
- As in the previous months, the low rate of inflation was mainly due to the falling prices of mineral-oil products, although these contrasted with rising electricity costs.
- Food inflation was still substantial for some products, although the overall increase in expenses has slowed.
- The euro is flat at $1.3765. (PR)
- ETFs - Stocks: FGM, EWG, GERJ, EWGS, DBGR. Bonds: BUNL, BUNT, BUND, GGOV