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  • Friday, April 18, 2014

  • 8:00 AM
     
  • 6:47 AM
    • Pro-Russian protesters, many of whom are armed, have refused to vacate administrative buildings they have occupied in eastern Ukraine despite an agreement between the government, Russia, the U.S. and EU to "de-escalate" the crisis.
    • Under the deal, the buildings were to be vacated and armed militias disbanded.
    • Despite the continued standoff, Russia's Micex index is +2.2% in response to the agreement. The USD-RUB is +0.1% at $35.568.
    • More on Ukraine
    • ETFs: RSX, RUSL, ERUS, RUSS, RSXJ, RBL, GUR, ESR, RUDR
    | 39 Comments
  • 6:23 AM
     
    • Japan's Nikkei ended up 0.7% and China's Shanghai Composite -0.05%, although with many bourses closed across the world for the Good Friday Holiday, volumes were low.
    • Elsewhere in Asia, South Korea's KOSPI rose 0.6% and the Taiwan Weighted 0.25%.
    | Comment!
  • 3:39 AM
    • China's new-housing inflation weakened to an eight-month low in March, with the average price of new homes in 70 major cities moderating to +7.7% on year from +8.7% in February.
    • On month, housing inflation slipped to 0.2% from 0.3%.
    • Home prices rose on a year-on-year basis in 69 of 70 cities, as in February.
    • The softening in prices reflects the government's attempts to cool the housing sector, although it also adds to concerns about the slowdown in the wider economy.
    • "There are definitely risks in the property market of China's smaller cities," says Standard Chartered's Lan Shen. "The property market will be a big factor that presses the country's economic growth this year."
    • The Shanghai Composite is -0.15%.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, DSUM, TAO, CHIX, YANG, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, FXCH, CHXF, CHII, ECNS, CHIE, CHIM, FCA, KFYP, TCHI, CHLC, CHNA, KBA
    | 2 Comments
  • 3:19 AM
    • Russia, Ukraine, the U.S. and the EU have agreed to "de-escalate" the crisis in eastern Ukraine following talks in Geneva.
    • Under the deal, non-government militias have to be dissolved and occupied government buildings vacated, while Ukraine will give amnesty to the protesters and it will start a public consultation to devolve constitutional powers to the provinces.
    • The agreement also promised "additional support" for Ukraine's battered economy.
    • However, the deal left various issues unaddressed such as who would disarm the militias. It also doesn't require Russia to scale back its massive buildup of troops on its border with Ukraine.
    • More on Ukraine
    • ETFs: RSX, RUSL, ERUS, RUSS, RSXJ, RBL, GUR, ESR, RUDR
    | 4 Comments
  • Thursday, April 17, 2014

  • 2:44 PM
    • A work disruption in Toledo, Ohio impacted production of 2014 Jeep Cherokee vehicles.
    • 70 employees at Piston Automotive walked off the job in a bid to gain recognition of the UAW as its bargaining rep.
    • The plant is important for Chrysler (FIATY) with the Jeep Cherokee a hot seller this year.
    | 1 Comment
  • 1:03 PM
    • "There is vivid interest already from both hedge funds and institutional investors," says Petros Christodoulou, deputy CEO of National Bank of Greece (NBG +4.4%). The €750M senior unsecured bond will be the first such issue by the bank in nearly 5 years, and it's expected to have a 5-year maturity and be priced to yield around 4.5% (the government just sold 5-year paper last week at 4.95%).
    • The bond sale comes alongside an expected €2.5B equity offering aimed at filling the large capital hole in the bank.
    • The moves comes as Piraeus Bank - the largest Greek lender - last month raised €500M in debt, followed by a €1.75B equity sale. Third-ranked lender Alpha Bank has also raised €1.2B in capital and #4 Eurobank has an investor group ready to anchor a €2.9B stock sale later in April.
    • Greek ETF: GREK
    | 2 Comments
  • 8:04 AM
    • Mercedes-Benz (DDAIF) has started production of an electric B-class minivan.
    • Tesla Motors (TSLA) is providing the 28kWh lithium-ion battery and electric motor for the line.
    • The model will go on sale this summer in the U.S.
    | 66 Comments
  • Wednesday, April 16, 2014

  • 1:23 PM
    • Automobile sales in Germany rose 5.8% Y/Y in March to 323,991 units.
    • Q1 sales finished at 781,647, up 6% from a year ago.
    • German automakers: DDAIF, BAMXY, VLKAY
    | 1 Comment
  • 10:42 AM
    • Leaving its benchmark lending rate at 1% for the 29th consecutive meeting, the Bank of Canada gives its blessing to a weaker currency, noting the lower Canadian dollar "should provide additional support" to the country's exporters.
    • The loonie (FXC) is off 0.2% and buying $0.9091 after the policy statement.
    • ETFs: EWC, CNDA, EWCS, FCAN
    | Comment!
  • 9:53 AM
    • General Motors (GM) will give a first look at the 2015 Chevrolet Trax at the New York International Auto Show. The smaller-sized SUV model is similar to the Buick Encore which has sold better than expected in the U.S.
    • Land Rover (TTM) plans to debut a new line of SUVs under the Discovery brand name. The automaker sees the brand as its high-volume family division.
    • Ford (F) will bring out its limited edition Mustang GT on the 50th anniversary of the model's introduction. The automaker has been using the Mustang as a brand builder in global markets.
    • Audi (VLKAY) is hoping to make a splash with an A3 Sportback which utilizes turbo diesel technology. Automobile analysts think TDI will be a major buzzword at this year's show.
    | 9 Comments
  • 8:10 AM
     
  • 7:50 AM
    • Daimler (DDAIF) will take in a cash haul of €2.43B ($3.36B) for the sale of its 50% stake in an engine joint venture.
    • The German automaker is selling its stake to partner Rolls-Royce (RRCEF, BAMXY).
    | Comment!
  • 7:01 AM
    • Suzuki (SZKMY) plans to introduce models which use a new hybrid system in order to stay competitive with rivals on gas mileage.
    • The new gas-electric system from the automaker will be unveiled in a compact car that will be sold first in Japan.
    | Comment!
  • 5:21 AM
     
    • Global equities are mainly higher on relief that the slowdown in China's economy in Q1 wasn't as bad as expected, with GDP of +7.4% topping consensus of +7.3%. The data helped offset nervousness about the continuing escalation in eastern Ukraine.
    • The Nikkei experienced yet another sharp move, this time jumping 3% following recent heavy selling. "Japanese shares are rebounding from recent declines because of the yen and U.S. share gains, while Alibaba is supporting technology companies," says market strategist Ayako Sera. Yesterday, Yahoo reported that Alibaba's Q4 net profit surged 110% to $1.35B. That helped boost shares in major Alibaba shareholder Softbank by 8.5%.
    • Elsewhere in Asia, Hong Kong +0.1%, China +0.2%, India -0.5%.
    • Euro Stoxx 50 +1.1%, London +0.3%, Paris +1.1%, Frankfurt +1%, Milan +2%, Madrid +1.3%.
    • U.S. stock futures: Dow +0.5%. S&P +0.5%. Nasdaq +0.6%
    | Comment!
  • 5:05 AM
     
    • Eurozone CPI accelerated to +0.9% in March from +0.3% in February, but missed consensus of +1%.
    • On year, inflation fell to 0.5% (flash 0.5%) from 0.7%.
    • Core CPI moderated to +0.7% from +1% and vs forecasts of +0.8%.
    • The euro is +0.2% to $1.3845. (PR)
    | Comment!
  • 4:40 AM
    • U.K. unemployment for the three months to February fell to 6.9% from 7.1% previously and came in under forecasts that were also 7.1%.
    • Average earnings including bonuses accelerated to +1.7% from +1.4% but missed expectations of +1.8%. Still, the figure brings wage growth in line with inflation of 1.7% after a long period in which salary rises remained well below CPI growth.
    • The pound spikes and is +0.2% at $1.6802, while the FTSE is +0.4%. (PR)
    • ETFs: FXB, EWU, GBB, FKU, EWUS, DXPS, DBUK
    | Comment!
  • 3:57 AM
    • Ukraine retook an airfield in the eastern Donetsk region yesterday after fighting with pro-Russian militias.
    • Ukrainian forces have also apparently surrounded the town of Slaviansk, which had been seized by the militias. In total, the separatists have taken over government and police buildings in up to 10 towns and cities in eastern Ukraine.
    • Ukraine's action has prompted Vladimir Putin to describe the country as being on the "brink of civil war;" it has also come ahead of talks tomorrow between senior diplomats from Russia, the EU, the U.S. and Ukraine.
    • Russia's Micex is -0.1%, while the USD-RUB is -0.4% at 36.095.
    • More on Ukraine
    • ETFs: RSX, RUSL, ERUS, RUSS, RSXJ, RBL, GUR, ESR, RUDR
    | 7 Comments
  • 3:38 AM
     
    • Japanese industrial output fell 2.3% on month in February, as expected, after rising 3.8% in January.
    • On year, production +7% vs +10.3%.
    • The Nikkei is +3% and the USD-JPY is +0.3% at 102.26. (PR)
    | Comment!
  • 2:56 AM
    • China's GDP growth slowed to its lowest level in 18 months in Q1, moderating to 7.4% on year from 7.7% in Q4 but topping forecasts for 7.3%. The figure is below the government's target of 7.5%, although the country's leaders have indicated that the goal is flexible as they try to implement reform.
    • Falling momentum in investment and consumption, struggling real estate, and weak external demand were among the main factors that caused the slower expansion.
    • On quarter, GDP +1.4%, as expected, vs +1.8%.
    • The value of home sales fell 7.7% in Q1 to 1.1T yuan ($177B); new property construction -25% to 291M square meters (3.1B square feet).
    • Industrial production +8.8% in March +8.6% in previously and consensus of +9%.
    • Retail sales +12.2% vs +11.8% and +12.1%.
    • Urban fixed-asset investment +17.6% in Q1 vs +17.9% previously and forecasts of +18.1%.
    • MNI Business Sentiment Indicator 51.1 in March vs 50.2 in February.
    • "All the forward-looking indicators are weak - growth is going to continue to slow," says Standard Chartered's Stephen Green. "We expect a mix of moderate monetary easing over the next few months and more aggressive reform measures."
    • However, Credit Agricole economist Dariusz Kowalczyk expresses a bit of optimism. "The silver lining is that retail sales and industrial output both rebounded in March, suggesting that growth is bottoming out."
    • The Shanghai Composite is flat.
    • ETFs: FXI, PGJ, GXC, FXP, YINN, KWEB, CYB, HAO, CNY, ASHR, CHIQ, TAO, CHIX, YANG, CQQQ, MCHI, QQQC, PEK, XPP, YAO, CHXX, YXI, CHXF, FXCH, CHII, ECNS, CHIM, CHIE, FCA, KFYP, TCHI, CHNA, KBA
    | 1 Comment
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