Thursday, August 27, 2015
- State-owned BAIC Group is close to taking a stake in Daimler (OTCPK:DDAIF) significant enough to be one of the German automaker's largest shareholders, sources tell Reuters.
- Daimler and BAIC Motor already operate joint ventures together in China to sell Mercedes-Benz vehicles.
- BAIC also partners with Hyundai in China.
- Reynolds American (RAI +1.6%) and Imperial Tobacco (OTCQX:ITYBY, OTCPK:ITYBF) have received a warning from the FDA over advertising.
- The agency says the companies need to prove that cigarette brands labeled as "natural" or "additive-free" are lower risk to consumers than traditional cigarettes.
- Reynolds and Imperial have 15 days to respond to the directive.
- Yes, the Fed is likely to hike short term rates 25-50 basis points, says Ray Dalio, but that can hardly be considered a serious tightening cycle given the average tightening over the past century has been 440 basis points.
- Instead, it would tie with 1936 for the smallest tightening ever - this is important, says Dalio, as the U.S. then was undergoing a deleveraging of the long-term debt cycle similar to what is occurring today.
- “To be clear, while we might see a tiny tightening akin to what was experienced in 1936, we doubt that we will see anything much larger before we see a major easing via QE."
- ETFs: SHY, BIL, PLW, VGSH, STPP, SHV, GOVT, FLAT, SCHO, FTT, EGF, DTUS, DTUL, SST, TUZ, TAPR, TFLO, USFR
- Macau visitor arrivals fell 3.8% to 2.65M in July, according to the Statistic and Census Bureau.
- Traffic was up 17% on a month-over-month basis.
- Same-day visitors were down 6.4% during July, while overnight visitors fell 0.9%.
- YTD Macau visitor arrivals are down 3.5% to 17.4M.
- Macau gaming stocks/ADRs are are higher on the day, with most out-performing the broad Chinese markets which took back some ground earlier.
- Gainers: Galaxy Entertainment (OTCPK:GXYEF +8.7%), Las Vegas Sands (LVS +4.1%), Wynn Resorts (WYNN +4.5%), MGM Resorts (MGM +3.9%), Melcon Crown (MPEL +5.3%).
- Ferrari is considering a plan to name Sergio Marchionne as its CEO after Amedeo Felisa retires, sources tell Bloomberg.
- The Ferrari IPO is one of the most highly-anticipated of the year, with some retail analysts seeing significant potential for Ferrari to evolve into a lifestyle brand on top of boosting vehicle sales.
- Only 10% of Ferrari's outstanding shares will be available in the IPO, a narrow slice which could help to propel volatility.
- Marchionne is already testing the patience of some proxy advisory firms with the number of boards he sits on. Glass Lewis & Co. issued a full breakdown in a blog post last month.
- Ukraine has agreed to a restructuring deal with creditors after five months of talks, giving President Petro Poroshenko some breathing room as he seeks to avert default and revive an economy decimated by war.
- The agreement will see creditors, including U.S. mutual fund Franklin Templeton, accept a 20% haircut on $18B of Ukrainian bonds and push back maturities on government debt by four years.
- In return they will receive a GDP-linked security that will pay holders a percentage of Ukraine's economic growth from 2021.
- Japan +1.08%.
- Hong Kong +3.60%.
- China +5.34%.
- India +1.97%.
- London +2.25%.
- Paris +2.85%.
- Frankfurt +2.97%.
- More turmoil is hitting Athens after 53 of 201 Syriza party members submitted their resignations, stating that as representatives of the Central Committee they cannot serve the country's new austerity program.
- As a result, the group's so-called Left Platform faction, led by ex-Energy Minister Panagiotis Lafazanis, has formed a new party called Popular Unity to run against Syriza in the upcoming election.
- Greeks will head to the ballot box on September 20 to vote for a new government for the second time in eight months.
- ETFs: GREK
- Shares across the globe are on the rise after Wall Street cracked a six-day losing streak with its best rally in nearly four years.
- With momentum turning to the upside, investors seem to be covering their positions, while long term bulls snap up perceived bargains.
- The rebound is also being attributed to falling expectations the Fed will soon raise interest rates. On Wednesday, NY Fed President William Dudley said a September hike seemed "less compelling" given the recent global economic uncertainty.
- U.S. Futures: Dow +0.4%. S&P +0.5%. Nasdaq +0.6%.
- Europe: London +2%. Paris +2.4%. Frankfurt +3%.
- Asia: Nikkei +1.1%; Shanghai +5.4%; Hang Seng +3.5%; Sensex +1.5%.
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