India investors waiting for a confirmed upturn in the economy following Narendra Modi coming to power in May, will have to wait a bit longer as the most recent data is decidedly mixed.
While inflation has slowed to 7.8% vs. the central bank's target of 8% by the start of next year (target is 6% for 2016), industrial production grew just 0.5% Y/Y in July, down sharply from June's 3.4% and May's 5%.
The most recent data show exports in August of $26.96B, up 2.35% Y/Y, and imports of $37.8B up 2%.
The Sensex dipped 0.9% last night, but remains one of the globe's biggest gainers this year. EPI +30.6%, PIN +26% YTD.
China cut its gold purchases by about half from a year ago, according to the World Gold Council, and India by 39%. At least part of the reason for the steep declines is what analysts like to call "tough comps," as buyers piled in a year ago amid the slide in the metal's price.
Commerzbank sees Asian buying gaining in Q3, noting Indian purchases usually ramp up ahead Diwaii - a Hindu festival falling this year on October 23.
Gold is going to need it, say some analysts, as a pickup in Asian demand will be necessary to balance out slumping speculative interest.
Gold is ahead by $3 per ounce today to $1,235. It began the year at about $1,200 and rose to nearly $1,400 by mid-March.
REIT investors worried about the link - and it's a close one of late - between interest rates and the value of REIT stocks (they go down when rates rise, up when rates fall) might want to take a look at non-U.S. REITs, where the correlation is far lower, says AllianceBernstein's Eric Franco.
Another advantage of non-U.S. REITs - their ratio of cash flow yield to bond yields is well above the long-term average, i.e. they're cheap. The ratio for U.S. REITs is right at the long-term average.
Marina Silva has a better than 50% chance of defeating incumbent Dilma Rousseff in the presidential election, says Brown Brothers Harriman after last week's boost in the polls for Rousseff sent the Bovespa lower by 6%.
Fluctuations in the polls at the moment aren't a big deal because the first round of elections won't produce a winner. Instead, the election will be decided in the 2nd round (October 26). "We prefer to fade the first round volatility and position for the second round dynamics."
Bouncing a little from last week, the Bovespa is higher by 0.6% this morning. EWZ +0.25%.
Many China-related ETFs rely on a quota system - the renminbi qualified foreign institutional investor (RQFII) scheme - through which China allows access to its stocks traded on the mainland. High inflows into RQFII funds - AUM have nearly doubled this year to $12.6B - are rapidly exhausting the quotas, and Deutsche Bank is rationing U.S. access to those China ETFs - ASHR and ASHS - using the RQFII, and has temporarily closed similar funds to new money from European clients.
Synthetic ETFs which track Chinese stocks using derivatives have not been affected.
Hong Kong-based CSOP Asset Management says more than 96% of its quota has been used up and it's no longer taking money for its flagship China equities fund, the largest RQFII ETF.
Condensate exports from the U.S. are continuing for the third straight month, following the easing of a 40-year crude export ban in June.
As U.S. condensate supply continues to surge due to the shale boom, oil producers are looking to export a growing surplus, while consumers, such as refiners, have lobbied to keep exports forbidden to ensure lower energy costs in the U.S.
Washington has still held back on issuing more permits to export the minimally refined oil, despite growing international pressure to soften the ban,
Bill Ackman is planning to file for an IPO of a new fund on the Amsterdam Stock Exchange, to be called Pershing Square Holdings.
The fund has already raised more than $1.5B in commitments from European pension funds, as well as U.S. hedge funds, and will allow for raising permanent capital that is not subject to investor redemptions.
The new fund will be separate from Ackman's $13B Pershing Square Capital Management.
The IPO of San Diego, CA-based Viking Therapeutics (Pending:VKTX) is set for this week. The clinical-state biopharmaceutical firm develops therapies for metabolic and endocrine disorders.
Its lead product is VK0612, an orally-available drug candidate for type 2 diabetes. Its second product candidate is VK5211, an orally-available drug for the treatment of cancer cachexia. Phase 2 clinical trials are expected to commence for both product candidates in early 2015 with projected completion dates in 2016.
Cambridge, MA-based Tokai Pharmaceuticals (Pending:TKAI) debuts this week. The clinical-stage biopharmaceutical firm develops therapies for hormonally-driven diseases like prostate cancer.
Its lead product is the small molecule drug candidate galeterone for the treatment of prostate cancer. In a Phase 2 clinical trial, it demonstrated clinically meaningful reductions in PSA (prostate specific antigen). IPO proceeds will fund a Phase 3 trial for galeterone that is expected to commence in 1H 2015.
Framingham, MA-based rEVO Biologics (Pending:RBIO) debuts this week. The commercial-stage biopharmaceutical firm develops specialty therapeutics to treat rare, life-threatening conditions. Its sole commercial product is the recombinant human antithrombin ATryn for the prevention of blood clots during or after surgery or childbirth in patients with the rare clotting disorder, hereditary antithrombin deficiency (HD AT). It has been available in the U.S. since 2009.
Total 2013 revenues were $21.4M (+19.3%). Net Loss was ($23.4M) (-45.5%).
The company intends to expand ATryn's label into other indications, like preeclampsia (PE).
Proceeds from IPO will fund the Phase 3 trial of Atryn to manage PE, ramp up the sales effort and for general corporate purposes.
The IPO of Dutch biopharmaceutical firm ProQR Therapeutics (Pending:PRQR) is set for this week. The company develops RNA-based therapeutics for the treatment of severe genetic disorders. The company intends to apply its proprietary RNA repair technology to treat genetic disorders in which a single protein is defective.
Its lead product is the Orphan Drug-designated QR-010 for the treatment of Cystic Fibrosis (CF). It has only been evaluated in preclinical studies, however.
Rehovot, Israel-based Foamix Pharmaceuticals (Pending:FOMX) is set to debut this week. The clinical state specialty pharma firm focuses on developing and commercializing its proprietary antibiotic minocycline foam for the treatment of skin conditions such as acne and impetigo.
In a Phase 2 clinical trial, its product candidate for acne, FMX101, showed that it was a faster more effective treatment than oral minocycline for moderate-to-severe acne with fewer side effects.
In a Phase 2 trial, its product candidate for impetigo, FMX102, had a 81.3% success rate after three days and a 100% success rate after 14 days compared to Bactroban's labeling of a 71% success rate after eight days and 96% after 12 days.
The company plans to initiate Phase 3 clinicals for FMX101 for acne in 2015 as well as FMX102 for impetigo in 2H 2015.
Russian Finance Minister Anton Siluanov has announced that some of Russia's $85.3B National Welfare Fund, which is meant for infrastructure investments, could be given to major companies that now face constrained access to Western resources and capital.
Rosneft (OTC:RNFTF) and Novatek (OTC:NOVKY) will be first in line for the financial aid, added Siluanov. Rosneft previously stated last month that it needed 1.5T rubles ($39.7B) in aid from the government to withstand Western sanctions.
The sanctions are already taking a heavy toll on Russia's economy, with the Bank of Russia revising its economic forecasts last week, stating that if a drop in oil prices accompany the geopolitical tensions, the country's economy could likely stagnate in the next three years.
With Europe's economy still in shambles, EU finance ministers called on the European Commission, EU executive, and the European Investment Bank yesterday to seek ways of collecting billions of euros for investment projects without getting deeper into debt.
EU finance ministers are set to discuss the projects and investment tools at their next meeting in Luxembourg in October.
Four ideas of how to finance the projects were put forth by EU finance ministers, including an Italian paper on new financing tools for companies, a Franco-German proposal on how to boost private investments, a Polish proposal on creating a joint EU fund worth €700B ($907B) and a call from incoming European Commission President Jean-Claude Juncker for a €300B investment program to revive the European economy.
The EU's economy grew by just 0.1% this past year and its unemployment rate is almost double the U.S., with approximately 25M people unemployed.
China's top three solar panel makers are at full capacity and will have to expand their production, Gao says, noting that TSL's solar panel production will rise to 3.8 GW by year-end, up from ~3.4 GW at the end of June.
China recently announced new subsidies for smaller solar energy projects, which Goldman Sachs says will make selling power to the country's electrical grid much more lucrative for the operators and will cause prices of solar components to rise.