Global & FX

  • Friday, October 21, 2016

  • 7:56 PM
    • Egyptian billionaire Naguib Sawiris is considering a bid for bankrupt telecom Oi (NYSE:OIBR) by teaming with creditors to put in $1.5B, Reuters reports.
    • The intent would be to take control from Oi's current shareholders, primarily Pharol SGPS (the former Portugal Telecom), and ready it for sale in the next three years.
    • A preliminary plan has the consortium aiming to cut $21B in debt and attain a stake of about 85%.
    • Bondholders led by Moelis & Co. had said they were working with Sawiris on a new plan earlier this month.
    | 7:56 PM | 2 Comments
  • 1:36 PM
    • Audi will buy back 25K older-generation diesel cars in the U.S., according to Der Spiegel.
    • The company is being forced to buy back the Q7s because they are too old to be fixed to meet emissions standards.
    • Volkswagen (OTCPK:VLKAY) is still negotiating with U.S. regulators on how to deal with diesel cars tied to the emissions test cheating scandal.
    | 1:36 PM | 1 Comment
  • 10:38 AM
    | 10:38 AM | 17 Comments
  • 9:38 AM
    • Analysts are already weighing in on the impact of a merger between Coach (NYSE:COH) and Burberry (OTCPK:BURBY, OTCPK:BBRYF) -- even with the deal still only in the speculative stage.
    • "A merger of Coach and Burberry would primarily be a merger of problems," notes Exane BNP Paribas analyst Luca Solca.
    • "M&A history in luxury has shown that mergers don't obviously help in regaining brand traction and desirability, while cost efficiency in the face of declining brand momentum are often just a way to run in order to stand still," he adds.
    • Coach is believed to be working with Evercore on the Burberry deal.
    • Previously: Burberry and Coach higher amid merger speculation (Oct. 21)
    • Burberry is now up only 3.2% in London.
    | 9:38 AM | 3 Comments
  • 8:55 AM
    • Canada's CPI rose 1.3% on a year-over-year basis in September, that's up from 1.1% in August. Core CPI, however, decelerated to 1.5% from 1.7%.
    • August retail sales, meanwhile, fell 0.1% vs. what was expected to be a 0.3% gain. Ex-autos, sales were flat vs. +0.3% expected. In addition, July's originally reported -0.1% decline was revised down to -0.2%; July's ex-autos was revised lower as well.
    • The loonie (NYSEARCA:FXC) has tumbled about 100 pips since the news hit, now down 0.8% vs. the greenback at $0.7501.
    | 8:55 AM
  • 8:24 AM
    • Shares of Burberry (OTCPK:BURBY, OTCPK:BBRYF) are up 7.2% in London trading after rumors pop up on a potential merger with Coach (NYSE:COH).
    • Speculation on the consolidation of luxury retailers was posted on the Betaville website.
    • Coach is 3.76% higher to $37.26 in the premarket U.S. session.
    | 8:24 AM
  • 7:44 AM
    • Nissan (OTCPK:NSANY) says it will decide on what to do in the U.K. in November following a critical meeting last week between CEO Carlos Ghosn and U.K. Prime Minister Theresa May.
    • The Japanese automaker is looking for some reassurances on the impact of Brexit before investing more in the region.
    • Nissan operates the largest car factory in Britain.
    | 7:44 AM
  • 6:00 AM
    • Japan -0.30%.
    • Hong Kong flat.
    • China +0.21%.
    • India -0.14%.
    • London +0.22%.
    • Paris  flat
    • Frankfurt +0.02%.
    | 6:00 AM
  • 5:16 AM
    • This should come as no surprise to anyone, but Bank of Japan Governor Haruhiko Kuroda has said that the bank may once again push back its 2% inflation target, which currently sits somewhere in fiscal 2017.
    • Recall that when Kuroda started his job in early 2013 and began his turbo-charged asset-purchase policy that continues to this day, he originally hoped that inflation would hit 2% by late 2014 or 2015.
    • Almost four years later, inflation has disappeared after an initial rise.
    • The yen is -0.2% at 103.69.
    • ETFs: FXY, YCS, JYN, YCL
    | 5:16 AM | 1 Comment
  • 4:41 AM
    • China's house-price index dropped to 4.3% in September from 9.2% in August amid attempts by central and local governments to dampen the red-hot sector with purchasing restrictions in a number of cities.
    • In the first weeks of October, new-home prices in Beijing dropped 3.7% and 2.5% in Shanghai after rising in both cities in September.
    • In 63 of the 70 cities tracked, new-home prices, excluding government-subsidized housing, grew last month, down from 64 in August.
    • Despite the early signs of cooling, analysts are skeptical about the government actions amid mounting concerns about the huge debt in China.
    • "The most powerful property control is credit tightening, which we haven't seen," UBS economist Wang Tao said. "The purchase restrictions currently imposed can still be bypassed."
    | 4:41 AM
  • Thursday, October 20, 2016

  • 6:50 PM
    • The new Switch videogame system is likely to have a positive effect for Nintendo (OTCPK:NTDOY +2.5%) even though the particulars are largely what's been expected for some time, Jefferies says.
    • The system isn't as big a deal as Nintendo making a long-awaited move to smartphone gaming, says analyst Atul Goyal in an overnight note. But it does showcase the company's software, which is important, he says.
    • "In the long term NX may still turn out to be far less successful than its predecessors or when compared to its peers," he writes. "But – when it showcases the product – most of its audience is likely to find it 'interesting' and die-hard Nintendo fans are going to buy it regardless." And if the system is great, then that's a positive catalyst.
    • He also contrasted the importance of expectations: While gamers have been anxious over the release timeline, "hardly any investor we have met has any expectation from NX or its launch" and most see it as a negative catalyst that could get them a better entry price before Super Mario Run comes out in December.
    • He has a Buy rating on shares and a target of ¥37,000, implying 37% upside from the company's Thursday close in Tokyo.
    | 6:50 PM | 4 Comments
  • 1:08 PM
    • Kepler Cheuvreux initiates coverage on Coca-Cola European Partners (CCE +0.1%) with a Buy rating
    • The Paris-based investment firm sets a price target of €41
    • Analyst Richard Withagen thinks CCE will top its synergy guidance of €315M-€340M.
    | 1:08 PM | 2 Comments
  • 12:25 PM
    • Kandi Technologies Group (NASDAQ:KNDI) says its Kandi Electric Vehicles Group JV signed a strategic cooperation agreement with Shanxi Coal Asset Management Group to sell over 50K electric vehicles during a five-year cooperation period.
    • Shanxi Coal is a subsidiary of Shanxi Financial Investment Holding Group Co., Ltd., which is a wholly state-owned company.
    • "Our cooperation agreement with Shanxi Coal is a major milestone in our successful expansion throughout China," says Kandi CEO Hu Xiaoming.
    • Source: Press Release
    | 12:25 PM | 7 Comments
  • 11:59 AM
    • Vivendi (OTCPK:VIVHY -0.5%) has a new "fair warning" to Mediaset (OTCPK:MDIUY) in its contentious battle to acquire the Italian company's pay TV unit, but that doesn't preclude an alternative deal still being struck, sources told Reuters.
    • The TV unit, Mediaset Premium, plays a key role in Vivendi's strategy to use Southern Europe to advance its media ambitions. But Vivendi backed out of a binding deal to take full control in July, and the companies have been at legal loggerheads since (with a court date set for March).
    • Vivendi now says it's no longer interested in an amicable solution after Mediaset asked a court to order seizure of a 3.5% stake in Vivendi: "Enough is enough," said a Vivendi-tied source. "We've made a lot of efforts to find a solution. This is a fair warning."
    • Still, backchannel negotiations have been reported and are said to still be taking place. Vivendi is said to be working a preferred alternative where Mediaset and Vivendi would each get 40% of the Premium unit and a third party would hold the remaining 20%.
    | 11:59 AM
  • 11:43 AM
    • MTN Group (OTCPK:MTNOY) is off 2.9% in U.S. trading today after a Bloomberg report found a Nigerian lawmaker saying the carrier may have illegally moved way more than $14B out of the country.
    • “We have realized from preliminary investigations that it is actually outrageously higher" than that original estimate, says Dino Melaye, the senator who pressed allegations that the company was moving funds out.
    • Nigeria has tried to impose fines on MTN -- first for $5.2B, then for $3.9B, before the company agreed to pay 330B naira (about $1.1B) tied to the company's missed deadline on disconnecting unregistered SIM cards amid an insurgency. The company's market value has halved since the fine issue came up a year ago.
    • Shares dropped to a six-year low in Johannesburg.
    | 11:43 AM | 2 Comments
  • 9:15 AM
    • Nissan (OTCPK:NSANY) expects big returns from its investment in Mitsubishi Motors (OTCPK:MMTOF).
    • CEO Carlos Ghosn says new synergies will add ¥24B in FY17 and ¥60B in FY18.
    • "We are proud to be providing strategic, operational and management expertise as well as capital investment to ensure that Mitsubishi Motors not only overcomes its immediate, significant challenges but also flourishes in the future," says Ghosn.
    • Nissan is now part of a powerful triple alliance with Renault (OTC:RNSDF, OTCPK:RNLSY) and Mitsubishi.
    • Previously: Nikkei: Nissan CEO to become Mitsubishi Chairman (Oct. 19)
    | 9:15 AM
  • 8:48 AM
    | 8:48 AM | 10 Comments
  • 7:51 AM
    | 7:51 AM | 4 Comments
  • 7:50 AM
    • U.K. retail sales fell 4.0% in September (ex-fuel) on a year-over-year comparison. Sales were flat in comparison to August vs. +0.3% expected by economists.
    • Weak sales were recorded in the food, footwear and clothing categories during the month.
    • Office of National Statistics data
    | 7:50 AM
  • 6:00 AM
    • Japan +1.39%.
    • Hong Kong +0.30%.
    • China -0.01%.
    • India +0.51%.
    • London -0.06%.
    • Paris +0.19%.
    • Frankfurt +0.30%.
    | 6:00 AM
  • 4:16 AM
    • In a novel initiative, 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 first-of-its-kind deal will allow Sprint to slash its borrowing costs. The paper is expected to yield 3.5% and the telecom provider plans to use the money to repay maturing debt. This could cut its financing costs and boost cash flows by an estimated $200M a year.
    • The debt is receiving investment grade status from Fitch and Moody’s despite Sprint itself being rated as junk.
    | 4:16 AM | 53 Comments
  • 3:52 AM
    • Australia's unemployment rate slipped to 5.6% in September from 5.7% in August, caused by a fall in the participation rate to 64.5% from 64.7%.
    • The number of people in work dropped 9,800 vs a reduction of 8,600 a month earlier and badly missed consensus for growth of 15,000.
    • The Australian Bureau of Statistics said that the shift this year to part-time employment continued as the number of full-time positions dropped 53,000 following a decrease of 10,100, while that for part-time jobs grew 43,200 vs -18,600.
    • However, one analyst is highly skeptical about the figures due to the problems that the ABS has had with the data over the past couple of years.
    • "The numbers are rubbish. No one is going to believe these numbers," says TD Securities' Annette Beacher. "The massive shifts in full-time/part-time is very easy to discount. It's the sort of irregularities seen in recent months."
    • The S&P/ASX 200 rose 0.1%, while the AUD-USD is -0.8% at $0.7658.
    | 3:52 AM | 1 Comment
  • 3:06 AM
    • As expected, 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 reduce its massive reliance on oil, the low prices for which have exacerbated the government's budgetary problems.
    • The kingdom, which Moody's rates at A1, sold $5B debt in each of five- and 10-year bonds and $6.5B in 30-year debt.
    | 3:06 AM | 11 Comments
  • Wednesday, October 19, 2016

  • 6:25 PM
    • Bankrupt Brazilian telecom Oi (NYSE:OIBR) may cut ties with PJT Partners as it looks for a financial adviser with more local experience to help it negotiate with bondholders, its CEO suggests.
    • The situation last year (prior to filing for Brazil's biggest-ever bankruptcy) was different, but “Now that we are in a judicial recovery process, it is natural that we look for a financial adviser that understands very well the legal issues," says CEO Marco Schroeder.
    • The company's in tentative deals with suppliers and labor groups and is talking with the government's regulator on fines and taxes, leaving debt restructuring talks as a major hurdle. The company's trying to rearrange $20B in debt.
    • One sticking point is Oi's right under its plan to redeem convertible debt -- which creditors repped by Moelis & Co. say gives current shareholders the chance to avoid dilution in a turnaround while leaving bondholders also holding the bag.
    • Previously: Telecom Italia chief: Not interested in buying debt-ridden Oi (Oct. 18 2016)
    • Previously: Brazil regulator: Not our goal to intervene in Oi bankruptcy (Oct. 17 2016)
    | 6:25 PM | 6 Comments
  • 5:54 PM
    • Qatar is considering putting itself into a $100B global tech fund being created by SoftBank (OTCPK:SFTBY -0.4%), Bloomberg reports.
    • Qatar's sovereign wealth fund may pour billions into the fund as a way to diversify out of oil. Crude-heavy Saudi Arabia is already set to be the lead partner in SoftBank's fund, and could put in up to $45B over five years.
    • SoftBank itself has committed at least $25B to the fund, which is tentatively called the SoftBank Vision Fund.
    • A plunge in oil prices has led Gulf Arab countries to look at new sources of income. And SoftBank Chairman Masayoshi Son has reportedly visited various destinations in the Gulf region to discuss investments.
    | 5:54 PM | 7 Comments
  • 2:18 PM
    • Vodafone Portugal (VOD -1%) is counting on a positive outcome with the European Commission, which it expects will force an opening of Altice's (OTCPK:ATCEY) fiber network to rival firms.
    • The EC had opened an early probe into decisions by Portugal's telecom regulator not to force Altice-owned MEO (the market-leading pay TV and broadband provider) to allow others onto the fiber net.
    • With a ruling due by the end of the month, Vodafone Portugal chief Mario Vaz says arguments are lining up that suggest open access is coming: "We expect a positive result for Portugal."
    • Such a move would build incentives for co-investment and greater competition in currently noncompetitive parts of the country, he said.
    | 2:18 PM | 3 Comments
  • 12:58 PM
    • Saudi Arabia (NYSEARCA:KSA) has launched a sale of $17.5B of debt, WSJ reports, in a bid to support a major effort to keep its economy afloat as oil income dwindles.
    • The sale, in what would be the largest emerging market bond issue, is the latest example of a Persian Gulf state turning to international markets to offset declining oil revenues; other Gulf oil exporters such as Qatar, Bahrain, Oman and Abu Dhabi earlier this year raised  a combined $20B through international bond issues.
    • The fresh funds will help Saudi Arabia narrow its budget deficit, which stood at a record $98B last year.
    | 12:58 PM | 1 Comment
  • 12:17 PM
    • Ericsson (ERIC -1.1%) may be looking outside of telecoms for its new CEO, a source tells Reuters, after the company looks past well-discussed, more obvious candidates.
    • That comment came in response to a newspaper column today raising the prospect that Saab chief Hakan Buskhe could be in the running. "I understand there is a person on the short list but that it is not so easy to get the person concerned," the source said.
    • CEO Hans Vestberg stepped down in July after key shareholders began pushing for an ouster.
    • The conventional-wisdom short list for a replacement points at the company's Australia-based Hakan Eriksson, former company CFO Karl-Henrik Sundstrom and Vodafone CTO Johna Wibergh (also a two-decade Erisson veteran).
    • Meanwhile, the CEO search is the company's top priority, according to Ericsson's biggest shareholder. Johan Forssell, chief of Investor AB, says: “It needs to be a good leader, someone with strategic abilities, considering the large technology shifts that are happening in this industry ... It’s also an advantage to have the ability to understand the technology.”
    • Shares are down nearly 25% over the past week.
    | 12:17 PM | 1 Comment
  • 12:07 PM
    • Fiat Chrysler Automobiles (FCAU +0.8%recalls 310.8K vehicles in separate recall actions.
    • 225K Jeep Wrangles SUVs from the models years 2016 and 2017 are being recalled due to faulty sensor wiring.
    • The automaker is also recalling about 86K Ram pickup trucks (2500/3500/45/99/5500) from model years 2007 to 2013 and Dodge Chargers from model years 2011 to 2014 on concerns over alternator wear.
    | 12:07 PM | 1 Comment
  • 12:01 PM
    • Incumbent British telecom BT Group (BT -1%) -- in the middle of a lengthy public/government debate about whether it must spin off its Openreach infrastructure arm -- is maintaining that there's a "strong case" to invest in fiber if the company stays intact that doesn't add up in the case of a spin-off.
    • A split would also force a difficult and expensive separation of pension liabilities, says BT CEO Gavin Patterson.
    • "The case for more investment is quite strong," Patterson says. "There is going to be no shortage of opportunities to invest, the challenge for us as a company is to make sure the investment cycles are reasonable and we are able to make a return from them."
    • In summer 2015, Patterson famously raised the specter of a decade of litigation if British regulators forced a spin-off of Openreach, which holds wholesale infrastructure used by telecom rivals to deliver service.
    • Past Openreach coverage
    | 12:01 PM
  • 11:02 AM
    • China Unicom (NYSE:CHU) is up 2.3% in U.S. trading despite noting preliminary profits that are set to slide for the first nine months of the year as it invested to keep up with market leader China Mobile (NYSE:CHL).
    • A turnaround may be in the offing, though, as the company's heavy network investments in 4G begin to pay off with subscriber additions.
    • Preliminary net income tumbled to about 1.59B yuan (about $236M), vs. 8.18B yuan ($1.21B) in the prior year's first nine months.
    • In just September, though, the company expects record net additions of 6.05M 4G subscribers, well up from August's 5M. Overall, it added about 9.76M wireless subs, bringing its total to 262M.
    • Full earnings are set to come on Thursday.
    | 11:02 AM
  • 6:00 AM
    • Japan +0.21%.
    • Hong Kong -0.38%.
    • China +0.03%.
    • India -0.28%.
    • London -0.14%.
    • Paris -0.18%.
    • Frankfurt -0.21%.
    | 6:00 AM
  • 4:49 AM
    • The U.K.'s unemployment rate held steady at an 11-year low of 4.9%, as expected, in the three months to the end of August.
    • However, while the number of people in work rose 106,000, that's down from increases of above 170,000 in recent months.
    • The number of unemployed increased 10,000 to 1.66M for the first rise since February.
    • Basic pay growth increased to 2.3% from 2.2%, although total pay slowed to +2.3% from +2.4%.
    • While the data will probably be scrutinized for what it says about the impact of the Brexit vote, it's still way to early to tell.
    • The pound is +0.1% at $1.2309, while the FTSE 100 is -0.3%.
    • PR
    | 4:49 AM
  • 3:22 AM
    • China's GDP growth remained at 6.7% on year in Q3, as expected, boosted by yet more government spending, record bank lending and an over-heating property market, all of which are adding to the massive debt in the country.
    • Q2 growth was also 6.7%.
    • The figure is in the middle of the government's 2016 growth target of 6.5%-7%.
    • Industrial production slowed to +6.1% on year in September from 6.3% in August and missed forecasts of +6.4%.
    • Retail sales accelerated slightly to +10.7% from +10.6% and topped estimates of +10.6%.
    • Fixed-asset investment growth jumped to +8.2% from +6.1% and met expectations.
    • "Economic activity seems to be holding up reasonably well, with few signs that a renewed slowdown is just around the corner," says economist Julian Evans-Pritchard. "Nonetheless, the recent recovery is ultimately on borrowed time given that it has been driven in large part by faster credit growth and a property market boom, both of which policy makers are now working to rein in."
    • Chinese shares -0.7%, Hong Kong -0.6%.
    | 3:22 AM | 29 Comments
  • Tuesday, October 18, 2016

  • 7:46 PM
    • The surprising exit of Guy Laurence from the helm of Rogers Communications (RCI +0.6%) -- along with earnings released a few days early -- has analysts abuzz about prospects at the Canadian telecom.
    • RBC Capital and Scotiabank reiterated Outperform ratings today, with price targets of C$56 and C$60 respectively (vs. today's close in Toronto of A shares at C$55.01).
    • Improving performance in wireless and cable subscribers sets up well for the coming year, says RBC's Drew McReynolds, and Scotiabank's Jeff Fan thinks momentum is good enough for the coming quarters with interim chief Alan Horn -- though a lengthy transition before Joe Natale takes over (due to his non-compete agreement, which could run to Aug. 1) has Fan worried other senior management may leave.
    • Credit Suisse stayed Neutral on the stock but bumped its price target to $54 from $53. Meanwhile, Macquarie's Greg MacDonald (C$60 price target) is OK with the "musical chairs" at the top since Natale (a former chief at Telus) looks to have stronger operating skills in both wireline and wireless. Laurence may have done his "fix-it" job of trimming management and improving operations.
    | 7:46 PM | 2 Comments
  • 6:43 PM
    • Liberty Global (NASDAQ:LBTYA) is shoring up its lead in Poland, sealing a $760M cash deal to take over the cable business of Multimedia Polska.
    • Multimedia Polska is the No. 3 cable provider in the country, and adding it brings the reach of Liberty's UPC Poland to more than 4M homes and businesses.
    • UPC Poland had passed 3.1M homes (about 20% of households) at the end of June, while Multimedia had passed 1.6M homes. Poland made up 2.2% of Liberty Global's 2015 sales.
    • The deal's expected to close in the next 12 months.
    | 6:43 PM
  • 3:56 PM
    • A government-commissioned report says the mammoth $880B sovereign wealth fund should up its investments in equities to 70% of assets from the current 60%, with that extra money coming out of fixed-income.
    • It's not small potatoes given that the fund owns on average 1.3% of every single listed company in the world, and 2.5% in Europe. Maybe even more importantly, it could be a bell-ringer for the bull market - the equity allocation was last raised (from 40% to 60%) in 2007. Oops!
    • As is typical these days, the current rate regime has officials struggling to find a way to boost returns, and the natural answer is to take on more risk.
    • Remember this name: Knut Mork. He's the chairman of the nine-member commission which put out the report, and he's the only dissenter from the vote to recommend boosting equity exposure. In fact, he argues for cutting the stock allocation to just 50% in order to give the government a more predictable stream of income.
    | 3:56 PM | 21 Comments
  • 2:18 PM
    • Sony Music Entertainment (SNE +2.1%) is promoting Rob Stringer to succeed Doug Morris as its chief executive officer, as Morris moves on to become chairman of the group.
    • Those moves are effective in April. Stringer is chairman and CEO at the company's Columbia Records, the label representing Beyonce and Adele.
    • Stringer has led Columbia to be the leading label by market share, Sony says.
    | 2:18 PM | 1 Comment
  • 1:58 PM
    • Vodafone (VOD +1.6%) is the latest Western phone company to make a move into Iran as sanctions ease up, forming a partnership with local Internet service provider HiWeb.
    • In the non-equity deal, Vodafone will help HiWeb expand and modernize its network, while HiWeb will offer mobile/landline service in Iran to Vodafone's multinational customers. The scope of the pact includes marketing, distribution and even "Internet of Things" services.
    • The move by Vodafone follows similar steps by Orange (NYSE:ORAN), which says it's talking cooperation deals with Iran's Mobile Telecommunication Co.
    | 1:58 PM | 1 Comment
  • 1:17 PM
    • A heavy debt load tied to now-bankrupt Oi (NYSE:OIBR) means that Telecom Italia (TI +2.9%) isn't interested in a purchase, says CEO Flavio Cattaneo.
    • Speaking to newspaper Valor Economico, Cattaneo pointed to 20B reais (about $6.2B) in fines owed by Oi, almost the same as the market value of TI's Brazilian unit TIM Participações (TSU +1.9%). "If Oi manages to split its debt from its assets ... we will be watching," Cattaneo says.
    • Cattaneo took over as TI's CEO amid well-documented disputes between former chief Marco Patuano and investing shareholder Vivendi (OTCPK:VIVHY +1.4%) over the disposition of TIM. Patuano was inclined to hold on to the Brazilian unit while Vivendi actively pushed to sell the division.
    • Previously: Patuano exit from Telecom Italia likely to speed pending deals (Mar. 29 2016)
    | 1:17 PM | 7 Comments
  • 12:59 PM
    • Telefónica Brasil (VIV +1.8%) is planning to diversify to build a broader base of revenue as well as cut costs and optimize investments in 4G and even 5G networks, its CEO says.
    • Speaking at a São Paulo event, CEO Amos Genish says the company will focus on high-growth areas such as cloud computing.
    • In a move in the works for months, Genish is transitioning out of the chief executive role, to be replaced by Eduardo Navarro de Carvalho on Jan. 1.
    | 12:59 PM
  • 9:34 AM
    • FedEx (NYSE:FDX) plans to spend €1.4B ($1.54B) to double the shipping capacity out of the Charles de Gaulle International Airport outside of Paris.
    • The total includes €200M in expanding the facility and €1.2M in rent for 30 years.
    • The large investment is interesting in light of the U.K. vote to leave the European Union. That point wasn't lost on French president Francois Hollande who mentioned it in a statement.
    • "Britain's decision to leave the European Union should make us seek even more investments, make us showcase France's attractiveness," extolled Hollande.
    • ETFs: EWQ
    | 9:34 AM | 5 Comments
  • 6:00 AM
    • Japan +0.38%.
    • Hong Kong +1.55%.
    • China +1.40%.
    • India +1.79%.
    • London +0.87%.
    • Paris +1.23%.
    • Frankfurt +1.16%.
    | 6:00 AM
  • 5:36 AM
    • Global equities are higher as a weakening dollar helps strengthen oil prices, thereby boosting global sentiment, and ahead of U.S. CPI data later this morning.
    • Inflation is expected to have risen to 1.5% on year in September from 1.1% in August.
    • The figure will come after Fed Vice-Chair Stanley Fischer said yesterday that the central bank is "very close" to its targets of full U.S. employment and 2% inflation. Fischer also expressed concerns about low interest rates.
    • "The Fed clearly wants more growth than inflation," says investment strategist Robert Tipp. "The markets also are not sure what to make of the inflation numbers."
    • In Asia, Japan +0.4%, Hong Kong +1.6%, China +1.4%, India +1.65%.
    • In Europe, Euro Stoxx 50 +1.3%, London +1.1%, Paris +1.2%, Frankfurt +1%, Milan +1.6%, Madrid +1.15%.
    • U.S. stock futures: Dow +0.4%, S&P +0.5%, Nasdaq +0.6%.
    • Crude +0.4% at $50.34.
    | 5:36 AM | 1 Comment
  • 5:04 AM
    • U.K. CPI reached its highest level in almost two years in September, rising to +1% on year from +0.6% in August and topping consensus of 0.9%.
    • Core inflation increased to 1.5%, also the highest in two years, from 1.3% vs an estimate of 1.4%.
    • Factory-gate prices +1.2% vs +0.9% and +1%.
    • Total import costs increased 9%.
    • The U.K.'s Office of National Statistics says it hasn't seen explicit evidence that the pound's weakness has been affecting CPI, although it has had an impact on producer prices.
    • "Even though 1% is still some way off the Bank of England's 2% inflation target, the impact of currency changes works with a lag so further rises in CPI should be expected," says Fidelity investment director Tom Stevenson. "Inflation is expected to continue its upward charge."
    • The FTSE 100 is +1.1%, while the pound is +0.5% at $1.2248.
    | 5:04 AM | 1 Comment
  • 4:37 AM
    • Consumer-price growth jumped to 1% from 0.6% in August, above the 0.9% forecast by economists and the highest since November 2014.
    • The pound’s 18% decline since the U.K. voted to quit the EU is expected to fuel faster inflation in the coming years.
    • BoE officials have warned that the pound’s decline will push inflation above their 2% target.
    • See chart of UK inflation
    | 4:37 AM | 1 Comment
  • Monday, October 17, 2016

  • 4:34 PM
    • It's not the Brazilian government's intention to intervene in the bankruptcy of Oi (NYSE:OIBR), says regulator Anatel -- but it needs to be ready to do so if the process fails to resolve the heavy debt issues, its chief says.
    • "The government wants a market solution," says Juarez Quadros.
    • Oi has six months under the law to complete a reorganization that it began June 20; Quadros says the regulator will let events run their course befoe it decides on any actions it might take.
    | 4:34 PM | 1 Comment
  • 2:26 PM
    • Dalian Wanda -- the Chinese conglomerate trying to be a theme park thorn in Walt Disney's (DIS -0.7%) side -- has hired a former Disney exec in the field to run its competing business in China, Reuters reports.
    • Wanda, which has planned more than 20 park projects in China to take on Shanghai Disney (a "pack of wolves" against Disney's "tiger," says Wanda chief Wang Jianlin), has hired Andrew Kam, until recently the managing director of Hong Kong Disneyland Resort.
    • "He is hired as the Vice President of Wanda culture group and will be the head of the theme park business line," a source tells Reuters.
    • Kam had left Disney's resort earlier this year after eight years in the job alongside a decline in profits at the park.
    | 2:26 PM | 22 Comments
  • 1:46 PM
    • Eurosport (NASDAQ:DISCA) is jumping in with other networks on the burgeoning sport of drone racing, reaching a deal with DR1 to broadcast races of the remote aircraft in 70 countries.
    • The one-year deal covers DR1's Drone Racing Invitationals on Nov. 8 and three other races next year. And it puts Eurosport owner Discovery Communications in company including ESPN, Sky and ProSiebenSat.1.
    • Covering drone racing is a calculated move to skew younger, aiming to merge the standard televised appeal of racing sports such as Nascar and Formula One with a more millennial focus.
    • "We think the space has gotten interesting," says Eurosport CEO Peter Hutton, "and we like the idea of having storylines around individuals that we can build up as heroes ... We see this as a journey toward a younger demographic."
    | 1:46 PM | 1 Comment
  • 1:34 PM
    • Univision (Pending:UVN) has made a couple of key hires in its entertainment division, naming Lourdes Diaz as president of Entertainment and Adrian Santucho executive VP at Univision Studios.
    • Diaz, joining from Comedy Central International, will have responsibility for overseeing strategic acquisitions -- Univision has been active on that front particularly in digital, investing in The Onion, Fusion and recently Gawker -- as well as new content development.
    • Santucho, formerly CEO of FremantleMedia Latino America, will work with Grupo Televisa (NYSE:TV) on production initiatives and oversee all Univision Studios productions.
    | 1:34 PM
  • 12:08 PM
    • Pearson (NYSE:PSO) has slid 8.3% in U.S. trading after it noted nine-month sales held down by North American results that disappointed investors.
    • Overall sales fell 7% for the period, weighed by retailer inventory correction in North American Higher Education courseware, though Pearson noted improving trends in September continuing into October so far.
    • Sales were off 3% in headline terms but down 10% at constant exchange rates.
    • Simplification programs are going well, Pearson says, with 90% of targeted headcount reduction (of 4,000 full-time equivalent employees) already notified. It'll take restructuring costs of about £320M in 2016 with an annualized savings target of £350M.
    • The company reiterated full-year guidance and said it's making no changes to its 2018 goals: "Our markets have been challenging but we are managing discretionary costs tightly."
    | 12:08 PM
  • 12:06 PM
    • The straight-talking Appaloosa Management boss is speaking on CNBC at the moment. Up next on the show are Jeff Gundlach and Carl Icahn.
    | 12:06 PM
  • 10:17 AM
    • Authorities in China have detained 18 employees of Crown Resorts (OTC:CWLDF, OTCPK:CWLDY) in a story that could end up having broader sector implications.
    • The action is believed to be part of a crackdown on foreign casino operators that attempt to unlawfully entice Chinese gamblers overseas.
    • Crown Resorts fell 13.90% today in Sydney.
    • Macau names were weaker today in Hong Kong after the development, while the U.S.-traded stocks are holding up.
    • Macau casino stocks: Wynn Macau (OTCPK:WYNMF, OTCPK:WYNMY, WYNN), Sands China (OTCPK:SCHYY, OTCPK:SCHYF, LVS), MGM China (OTCPK:MCHVF, OTCPK:MCHVY, MGM), Galaxy Entertainment (OTCPK:GXYEF), SJM Holdings (OTCPK:SJMHF, OTCPK:SJMHY), Melco Crown (NASDAQ:MPEL).
    | 10:17 AM | 4 Comments
  • 6:00 AM
    • Japan +0.26%.
    • Hong Kong -0.84%.
    • China -0.74%.
    • India -0.48%.
    • London -0.79%.
    • Paris -0.63%.
    • Frankfurt -0.69%.
    | 6:00 AM
  • 5:52 AM
    • “We believe globalization has probably reached its peak,” says a fund manager at Barings. "The market won't like it." The team at Barings gets together once a year to discuss its 10-year investment forecast. At the next one, they expect to mull reducing or even eliminating their "globalization premium" from stock price estimates. In more concrete terms, it means directing assets at the margin towards fixed income at the expense of equities.
    • Globalization premium? Barings figures U.S. stocks trade at a P/E ratio one full number higher than they otherwise would have, thanks to this generation's boom in global trade.
    • At issue now is a slowing in global trade this year - the weakest since 2007 - just as protectionist policies are on the rise and efforts for further open trade treaties have stalled. A continuation of the trend, says MSCI, could lead to near-20% declines in U.S. and European stocks.
    • “Globalization is increasingly coming under siege,” says a senior strategist with Allianz Global Investors.
    | 5:52 AM | 4 Comments
  • 5:19 AM
    • Long-dated government bond yields are up nicely again today nearly across the board. Leading the way are Spanish 10-years, up 11 basis points to 1.156%. The U.K. 10-year Gilt yield is higher by another 9 basis points to 1.09%.
    • Janet Yellen's Friday afternoon speech - in which she suggested the Fed might have to tolerate higher than otherwise inflation - makes for a good excuse to sell today. U.S. yields rose sharply in the aftermath of her musings, and the 10-year is higher by another basis point this morning to 1.81%.
    • The German 10-year Bund yield is up 3.4 basis points to 0.093%. The Italian 10-year is up 5.8 basis points to 1.439%.
    • The 10-year JGB yield is flat at -0.055%.
    | 5:19 AM | 11 Comments
  • Sunday, October 16, 2016

  • 6:58 AM
    • Italy's government has approved a 2017 budget plan that aims to avert tax increases as Prime Minister Matteo Renzi faces increasing pressure ahead of a national referendum over constitutional changes.
    • The budget would also lead Italy to run a budget deficit of 2.3% of GDP next year, which could bring the country into conflict with EU rules aimed at reining in member states' deficits.
    | 6:58 AM
  • 6:28 AM
    • India and Russia signed billions of dollars of defense and energy deals on Saturday.
    • Under the biggest agreement, a group led by Rosneft (OTC:RNFTF) said it would pay $12.9B for a controlling stake in both India's Essar Oil and the port facilities that it owns.
    • The countries also announced plans for a joint venture to build helicopters in India, while New Delhi said it would also buy surface-to-air missile systems and stealth frigates from Moscow.
    | 6:28 AM | 20 Comments
  • Saturday, October 15, 2016

  • 11:53 AM
    • Scottish First Minister Nicola Sturgeon is making some noise about calling for a vote on independence if the negotiated Brexit terms are too harsh.
    • Sturgeon and the Scottish National Party are also looking for ways to stay inside the EU even if the other British nations depart.
    • "Scotland must have the ability to choose a better future," said Sturgeon on the threat of Tory interference.
    • A 2014 referendum on Scottish independence was rejected by 55.3% of the voters.
    • U.K.-related ETFs: EWU, FKU, DXPS, DBUK, QGBR, HEWU
    | 11:53 AM | 37 Comments
  • Friday, October 14, 2016

  • 12:52 PM
    • "People are getting nervous about a number of things,” says the head of U.K. rates strategy at UBS. Among them are lower overseas interest as the pound plunges, and questions about the future of the Bank of England's asset purchase program as the government comes out against it.
    • The 10-year U.S. Gilt yield climbed another seven basis points today to 1.10% - now up about 50 basis points in less than a month, and now above its pre-Brexit level.
    • Other government bond markets have had a rough time of it lately as well, but nothing on the scale of the U.K. "The U.K. is massively underperforming,” says an Allianz money-manager. "If the BOE stops doing quantitative easing, and monetary stimulus is replaced by additional fiscal stimulus, then bear steepening of the gilt yield curve is entirely warranted."
    • The FTSE climbed 0.5% today, underperforming broader Europe which gained 1.3%.
    | 12:52 PM
  • 11:58 AM
    • Shares of William Hill (OTC:WIMHF, OTCPK:WIMHY) moved 4% higher today in London as investors bet again that the gaming firm will combine with Amaya (AYA -1.8%).
    • The two companies are reportedly in "crisis talks" over opposition to their planned merger.
    • The U.K. gaming sector is on a track of consolidation as online firms look to partner up with traditional players. Betfair (OTC:BTFRF) and Paddy Power (OTC:PDYPF, OTCPK:PDYPY) merged earlier this year, while Ladbrokes (OTC:LDBKF, OTCPK:LDBKY) and Gala Coral are due to close on their deal later this year. Last year, GVC Holdings (OTC:GMVHF) acquired
    | 11:58 AM
  • 8:25 AM
    • Mitsubishi Motors (OTCPK:MMTOF) car registrations +8.4% to 10,259 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Mitsubishi market share: 0.7% vs. 0.8% a year ago.
    • Mitsubishi YTD registrations -9.8%.
    • EAMA release (.pdf)
    | 8:25 AM
  • 8:22 AM
    • Honda (NYSE:HMC) car registrations +8.5% to 19,866 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Honda market share: 1.3% vs. 1.3% a year ago.
    • Honda YTD registrations +27.5%.
    • EAMA release (.pdf)
    | 8:22 AM
  • 8:18 AM
    • Suzuki (OTCPK:SZKMF) car registrations +2.3% to 20,895 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Suzuki market share: 1.4% vs. 1.5% a year ago.
    • Suzuki YTD registrations +12.6%.
    • EAMA release (.pdf)
    | 8:18 AM
  • 8:15 AM
    • Jaguar Land Rover (NYSE:TTM) car registrations +30.9% to 28,557 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Jaguar Land Rover market share: 1.9% vs. 1.6% a year ago.
    • Jaguar Land Rover YTD registrations +29.7%.
    • EAMA release (.pdf)
    | 8:15 AM | 2 Comments
  • 8:09 AM
    • Mazda(OTCPK:MZDAY) car registrations -0.5% to 27,448 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Mazda market share: 1.8% vs. 2.0% a year ago.
    • Mazda YTD registrations +17.3%.
    • EAMA release (.pdf)
    | 8:09 AM
  • 8:07 AM
    • Volvo (OTCPK:GELYF) car registrations -0.9% to 27,500 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Volvo market share: 1.8% vs. 2.0% a year ago.
    • Volvo YTD registrations +5.9%.
    • EAMA release (.pdf)
    | 8:07 AM
  • 8:04 AM
    • Hyundai (OTC:HYMLF) car registrations +3.9% to 51,490 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Hyundai market share: 3.4% vs. 3.6% a year ago.
    • Hyundai YTD registrations +8.8%.
    • EAMA release (.pdf)
    | 8:04 AM
  • 7:57 AM
    • Toyota (NYSE:TM) car registrations +8.4% to 67,328 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Toyota market share: 4.5% vs. 4.5% a year ago.
    • Toyota YTD registrations +8.1%.
    • Results include the Toyota and Lexus brands.
    • EAMA release (.pdf)
    | 7:57 AM
  • 7:53 AM
    • Daimler (OTCPK:DDAIF) car registrations +17.9% to 101,252 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Daimler market share: 6.8% vs. 6.2% a year ago.
    • Daimler YTD registrations +14.2%.
    • Results include the Mercedes and Smart brands.
    • EAMA release (.pdf)
    | 7:53 AM
  • 7:49 AM
    • Fiat Chrysler Automobiles (NYSE:FCAU) car registrations +14.2% to 90,848 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Fiat market share: 6.1% vs. 5.7% a year ago.
    • Fiat YTD registrations +15.3%.
    • Results include the Fiat, Jeep, Lancia, Chrysler and Alfa Romeo brands.
    • EAMA release (.pdf)
    | 7:49 AM | 3 Comments
  • 7:45 AM
    • Opel (NYSE:GM) car registrations +3.8% to 103,134 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Opel market share: 6.9% vs. 7.1% a year ago.
    • Opel YTD registrations +6.5%.
    • Results include the Opel, Vauxhall, Chevrolet and other GM brands.
    • EAMA release (.pdf)
    | 7:45 AM | 3 Comments
  • 7:42 AM
    • BMW (OTCPK:BMWYY) car registrations +13.0% to 114,056 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • BMW market share: 7.6% vs. 7.2% a year ago.
    • BMW YTD registrations +12.2%.
    • Results include the BMW and MINI brands.
    • EAMA release (.pdf)
    | 7:42 AM | 2 Comments
  • 7:36 AM
    • Volkswagen (OTCPK:VLKAY) car registrations +5.6% to 343,145 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU + EFTA registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • Volkswagen market share: 22.9% vs. 23.3% a year ago.
    • Volkswagen YTD registrations +3.0%.
    • Results include the Volkswagen, Audi, Skoda, SEAT, Porsche and other brands.
    • EAMA release (.pdf)
    | 7:36 AM
  • 7:23 AM
    • PSA Group(OTCPK:PEUGF, [[PUGOF, OTCPK:PUGOY) car registrations -5.8% to 128,956 units in September, according to the European Automobile Manufacturers Association.
    • Overall EU registrations +7.2% Y/Y to 1,455,810 units in September on broad gains across the continent. Registrations were up 9% in Germany and 17% in Italy.
    • PSA market share: 8.6% vs. 9.8% a year ago.
    • PSA YTD registrations +2.1%.
    • Results include the Peugeot, Citroen and DS brands.
    • EAMA release (.pdf)
    | 7:23 AM
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