Today - Tuesday, March 11, 2014
- Nissan (NSANY) is seeing some nice momentum in China with sales on the rise.
- The Japanese automaker ended the year with sales growth in the region of 17% to tally 1.26M vehicles sold.
- A joint venture with Dongfeng delays the reporting of Nissan's business in China to give the company a nice little tailwind to look forward to for Q1.
- Italy's UniCredit (UNCFF, UNCFY) kitchen sinks it, booking a $20.8B Q4 loss as it sets aside money for bad loans and writes down goodwill from past acquisitions ahead of the ECB's EU-wide review of banks before it takes regulatory control in November.
- The bank also announced plans to cut 8.5K jobs, about 6% of the workforce, along with a stock dividend of $0.10 per share for 2013.
- The stock closed 6.2% higher in Milan, leading the FTSE MIB index to the EU's best performance on the day, +0.4%.
10:59 AM| Comment!
- Crimea's parliament has voted to declare independence from Ukraine ahead of a referendum this weekend in which the region's citizens will decide whether to join Russia.
- Ukraine's parliament has said it will dissolve the Crimean assembly if it doesn't drop the referendum by tomorrow, although how much power Ukraine has in the province is looking rather questionable.
- In other developments" Russia and the U.S. have declined to take part in new talks on the crisis; Ukraine is testing its military's combat readiness and may mobilize 20,000 people; a pro-Russian force opened fire when capturing a Ukrainian military base in Crimea yesterday; and NATO is carrying out reconnaissance flights over its eastern frontier.
- In the U.S., the Senate is preparing an aid package for Ukraine that would include IMF funding.
- More on Crimea
- Russian and Eastern European ETFs: RSX, RUSL, ERUS, RUSS, RSXJ, RBL, RUDR, GUR, ESR
6:35 AM| Comment!
- U.K. industrial production +0.1% on month in January vs +0.5% in December and consensus of +0.2%. On year, output +2.9% vs +1.9% and +3%.
- Manufacturing production +0.4% on month vs +0.4% and +0.3%. On year, output +3.3% vs +1.4% and +3.3%.
- The pound is -0.1% at $1.6633, while the FTSE 100 is -0.2%. (PR)
- ETFs: EWU, EWUS, FKU, DXPS, DBUK, FXB, GBB
- Asian shares mostly rise after a sell-off yesterday following a plunge in Chinese exports, although European equities are lacking direction and U.S. stock futures are slipping a bit.
- Other factors at play include a recovery in German exports and the continued inability to solve the Ukraine crisis.
- "Market players remain cautious," says researcher Guillaume Dumans. "There's a lack of enthusiasm in chasing stocks, and some are just thinking about moving to the sidelines after the roller-coaster ride we've had since the start of the year."
- Japan +0.7%, Hong Kong flat, China +0.1%, India -0.5%.
- Euro Stoxx 50 +0.1%, London flat, Paris -0.1%, Frankfurt +0.3%, Milan -0.05%, Madrid -0.1%.
- U.S. stock futures: Dow flat. S&P -0.1%. Nasdaq flat.
- Puerto Rico has reportedly attracted strong demand for $3B in bonds that the commonwealth expects to sell today at yields of 8.625-8.875%, which are at the bottom end of expectations.
- The apparent success of the auction comes despite lingering fears that Puerto Rico will restructure its existing debt.
- However, investors have been attracted by a range of factors, including the high interest, improved finances, better disclosure, and relief that the commonwealth even has access to the debt markets.
- Related ETFs: MUB, HYD, BAB, PZA, MUNI, TFI, ITM, HYMB, MLN, CMF, SHM, BABZ, BABS, XMPT, SUB, NYF, PRB, PZT, SMB, CXA, SHYD, PWZ, PVI, SMMU, MUAF, INY, MUAE, MUAD, MUAC, VRD, MUAG, GMMB, MUAH, RVNU
- Major oil companies are facing a legal limbo over Black Sea energy prospects because of Crimea's decision to hold a referendum over whether to secede from Ukraine and join Russia.
- A consortium that includes Exxon (XOM) and Shell (RDS.A, RDS.B) planned to invest $735M on drilling two wells off Crimea, while Eni (E) has a license to explore in the region.
- China intends to allow the creation of five privately-owned banks on a trial basis. Alibaba Group plans to apply for a license in partnership with China Wanxiang Holding, while Tencent is also set to participate in the experiment.
- The trial is part of China's strategy to increase the role of the markets as it looks to carry out major economic reform. In another measure, the People's Bank of China plans to liberalize deposit rates in one to two years.
- Germany's exports rose 2.2% on month in January after dropping 0.9% in December and beat forecasts of +1.4%.
- Imports jumped 4.1% vs -1.4% and +1.3%.
- The trade surplus slipped to €17.2B from €18.3B and missed consensus of €17.7B.
- The euro is -0.1% at $1.3865, while DAX futures are +0.2%. (PR)
- ETFs: FXE, EUO, EWG, ERO, DRR, BUND, EWGS, EUFX, ULE, GERJ, DBGR, BUNL, DXGE, URR, FGM, BUNT, GGOV
- As expected, the Bank of Japan has left its key interest rate at 0.1% and maintained its program of expanding the monetary base by ¥60-70T a year.
- The BOJ upgraded its assessment of industrial output and investment but cut its analysis for exports.
- In a related development, Japanese machine tool orders, a leading indicator of capex, climbed 26% on year in February, although that was down from +40.3% in January.
- The bank's latest policy decision comes ahead of a rise in sales tax next month that is expected to drag on the economy.
- The Nikkei is +0.7%, while the USD-JPY is flat at ¥103.31. (BOJ Statement)
- ETFs: DXJ, EWJ, FXY, YCS, JGBS, JGBD, DFJ, JYN, NKY, DBJP, EZJ, EWV, YCL, SCJ, JGBL, JSC, JPP, ITF, DXJS, JGBT, JPNL, JPNS, FJP
Monday, March 10, 2014
1:20 PM| 1 Comment
- The 8.3% dive in the price of iron ore to $104.70 per ton is the 2nd largest one-day decline on record, and came following weekend data showing an 18.1% Y/Y slump in Chinese exports in February (a gain of 7.5% was expected). While miners like BHP and RIO remain optimistic about supply/demand dynamics (though dour on price prospects), Goldman - picking one analyst team - sees the market moving into surplus in H2 and prices falling below $100 per ton.
- The Shanghai Composite fell 2.9% overnight and Brazil's Bovespa is down 2% in the early-going. Australia (EWA) declined 0.9% and the aussie (FXA) is off 0.6% to $0.9017.
- The steelmaking ingredient is off 22% YTD and at its lowest price since October 2012.
- In the meantime, the rumors are flying, including speculation a mill in China's Shanxi province defaulted on Friday and shut five to six furnaces. There's also chatter about banks looking to call in 20% of loans to private steel companies.
- EWZ -2.1%, VALE -2.8%.
- Brazil ETFs: EWZ, BRF, BRXX, EWZS, BRAQ, BRAZ, BZQ, BRZU, BRAF, UBR, BRZS, DBBR, FBZ
- Base metal mining ETFs: XME, JUNR, PICK
9:06 AM| Comment!
- "We are clearly not very happy at the moment," says ECB board member Christian Noyer when asked about the strength of the euro (FXE). "It's clear that when the euro starts to strengthen it creates additional downward pressure on the economy and additional downward pressure on inflation. Both cases are not warranted at the moment."
- Noyer, however, doesn't signal any new policy ease, instead calling the "extreme degree" of stimulus appropriate for now. The ECB does, of course, stand ready to act as necessary.
- In the green earlier, the euro is now slightly lower on the session.
- Euro ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR