Apple co-founder and former chief executive Steve Jobs, regarded as one of the most important American leaders of his generation, died on Wednesday at the age of 56, the FT reports, after a long struggle with pancreatic cancer.His death was announced late on Wednesday by Apple’s board, http://ftalphaville.ft.com/thecut/2011/10/06/694506/apple-co-founder-steve-jobs-dies/
Citic Securities, China’s biggest brokerage by market value, declined in its Hong Kong trading debut, Bloomberg reports.
Shares in the company fell fell as much as 11 per cent to HK$11.90 and traded at HK$12.2 at 11:01am. http://ftalphaville.ft.com/thecut/2011/10/06/694646/citic-securities-shares-falls-in-hong-kong-debut/
Thousands of people, including representatives of several trade unions, marched through the streets of lower Manhattan on Wednesday in an escalation of the “Occupy Wall Street” demonstrations that began last month, http://ftalphaville.ft.com/thecut/2011/10/06/694596/wall-street-protest-numbers-grow/
Bearish hedge fund managers have reaped some of their biggest gains since the collapse of Lehman Brothers amid the market turmoil triggered by the eurozone debt crisis, the FT reports. Funds reaping big gains include Brevan Howard’s $24bn flagship fund, http://ftalphaville.ft.com/thecut/2011/10/06/694576/hedge-fund-bears-win-on-eurozone-crisis/
Microsoft is considering a bid for Yahoo, Reuters reports, citing sources close to the situation. A number of other companies including buyout shops Providence Equity Partners, Hellman & Friedman and Silver Lake Partners, http://ftalphaville.ft.com/thecut/2011/10/06/694546/microsoft-considering-bid-for-yahoo/
The European Banking Authority has started to re-examine the strength of the region’s banks, modelling a big writedown of all peripheral eurozone sovereign debt, the FT reports.
The regulator is also closely involved in talks with European officials and governments over mechanisms that could be used to forcibly recapitalize banks, http://ftalphaville.ft.com/thecut/2011/10/06/694521/banks-face-new-european-stress-tests-2/
The business heads in charge of the UBS unit where the bank’s $2.3bn alleged rogue-trading scandal took place have resigned, less than a fortnight after former group chief executive Oswald Grübel did the same. The FT reports London-based Francois Gouws and New York-based Yassine Bouhara, http://ftalphaville.ft.com/thecut/2011/10/05/694446/noble-shares-jump-on-spin-off-prospect/
Samsung Electronics is seeking to block sales of the iPhone 4S only hours after it was launched, in a sign that it is shifting from defence to attack in its rapidly worsening patent dispute with Apple,http://ftalphaville.ft.com/thecut/2011/10/05/694426/samsung-seeks-ban-on-iphone-4s-sales/
Fears of an economic slowdown in China have fuelled a trading surge in instruments that insure investors against sovereign bond defaults, making the country a new focal point for the widely used financial products, http://ftalphaville.ft.com/thecut/2011/10/05/694406/stocks-rise-on-us-data-and-hopes-for-bank-aid/
The world’s cheapest tablet computer, on sale for as little as $35, has been unveiled in India in the latest attempt by the emerging economy to shift from being a global outsourcing centre to one of frugal innovation for lower-income consumers.
Wednesday’s launch of the Aakash – which means “sky” in Hindi – is designed to boost e-learning to help India solve its education problems and bridge the digital divide that sees Asia’s third-largest economy lag behind its emerging market peers in internet access. http://www.ft.com/intl/cms/s/2/9e714b34-ef53-11e0-918b-00144feab49a.html#axzz1ZySkMU6G
The three-notch slashing of Italy’s credit status by Moody’s on Tuesday had been widely anticipated in Rome and discounted on the markets. But confirmation of a lack of faith by US ratings agencies in the centre-right coalition is fuelling talk of the end of the Silvio Berlusconi era and a slow-moving rebellion within the prime minister’s own party.
“There is not a member of the government or the parliamentary majority who does not affirm in private that Berlusconi should go,” commented Ferrucio de Bortoli, editor of Corriere della Sera, in a front page commentary on Wednesday. http://www.ft.com/intl/cms/s/0/36438280-ef66-11e0-bc88-00144feab49a.html#axzz1ZySkMU6G
Ireland should be allowed to tap the eurozone’s financial rescue fund to cut the cost of its bank bail-out and boost its chances of becoming Europe’s recovery success story, Ireland’s deputy prime minister has said.
The European Union should also introduce eurobonds to tackle the eurozone crisis but steer clear of reform that would require fundamental changes to the EU treaties, Eamon Gilmore said in an interview with the Financial Times. http://www.ft.com/intl/cms/s/0/21795954-ef59-11e0-918b-00144feab49a.html#axzz1ZySkMU6G
Asian stocks rebounded strongly on Thursday after positive U.S. data provided some relief to investors gripped by the recent turbulence in markets, with regional commodities and oil plays surging. Copper prices, which tumbled over 20% last month on global recession fears, were up 1.5% and the euro held steady as investors turned their attention to the European Central Bank rate-setting meeting later in the day.
Japan’s Nikkei Stock Average rose 1.7%, Australia’s S&P/ASX 200 jumped 2.8%, South Korea’s Kospi Composite climbed 3.7% and New Zealand’s NZX-50 added 0.5%. Dow Jones Industrial Average futures were down seven points in screen trade. http://online.wsj.com/article/SB10001424052970203476804576613751546705910.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews
Tens of thousands of demonstrators marched through the Greek capital on Wednesday to protest austerity measures the government says it must take to secure badly needed aid from its international creditors. Police estimate roughly 20,000 people took part, although organisers put the number at being much higher and included employees from a range of public-sector organisations most affected by the latest cutbacks. http://online.wsj.com/article/SB10001424052970203388804576612261343333114.html?mod=WSJEUROPE_hpp_MIDDLETopNews
French Finance Minister François Baroin Wednesday said the extent of private-sector involvement in bailing out Greece may need to be reexamined after the volatility on financial markets over the summer. The comments mark a public acknowledgment from France—which up until now has argued that an agreement by euro-zone heads of state on July 21 should be applied in full—that further participation from private-sector creditors may be required as Greece’s financial crisis deepens. http://online.wsj.com/article/SB10001424052970203388804576612354291071740.html?mod=WSJEUROPE_hpp_MIDDLETopNews
Turkey’s central bank Wednesday stepped up its efforts to stem an accelerating slide in the lira, which hit a record low this week as investors fled emerging markets. The lira rallied after the central bank said it plans to sell as much as $1.35 billion at its regular dollar auction, much larger than the average seen in recent auctions. The lira rose to 1.8725 liras against the dollar, 1.8773 liras in early trading Wednesday early http://online.wsj.com/article/SB10001424052970203388804576612570589905108.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews
In late 2008, Morgan Stanley nearly collapsed because many of the hedge funds that used the company’s prime-brokerage business simultaneously wanted to take their money and run. That won’t happen again, Morgan Stanley is telling investors, despite swirling speculation that the New York investment bank is vulnerable to Europe’s woes. A Morgan Stanley spokeswoman declined to comment, citing the quiet period before third-quarter earnings are announced in about two weeks. http://online.wsj.com/article/SB10001424052970204294504576613331897714022.html?mod=WSJ_hp_LEFTWhatsNewsCollection
Sarah Palin announced Wednesday that she won’t be running for president in 2012, media reports said. In a statement read by radio talk-show host Mark Levin and in a letter to supporters, the former Alaska governor and 2008 vice-presidential candidate wrote that “family comes first” and that she “can be more effective in a decisive role to help elect other true public servants to office,” according to reports. http://www.marketwatch.com/story/sarah-palin-not-running-for-president-reports-2011-10-05-184780
Moody’s Investor Service late Wednesday followed up its downgrade of Italy’s sovereign debt on Tuesday with a downgrade of several Italian banks. The ratings agency lowered the respective long-term ratings of both Intesa Sanpaolo and UniCredit SpA to A2 from Aa3, and cut ratings on several smaller banks. Moody’s also cut the long-term rating of defence contractor Finmeccanica SpA to Baa2 from A3, and the long-term rating on electric company Terna SpA to A3 from A2. http://www.marketwatch.com/story/moodys-downgrades-ratings-on-italian-banks-2011-10-05
Gold ticked up in volatile trade on Thursday due to a steadier euro, gains in equities, purchases from jewellers, and hopes that Europe’s moves to prop up its ailing banking sector could cushion the fall. Gold added $6.84 to $1,647.24 an ounce by 0241 GMT after falling to a low around $1,634 an ounce. It had gained 1 per cent on Wednesday on rallies in equities and commodities. U.S. gold rose $7.3 an ounce to $1,648.9 an ounce. http://www.reuters.com/article/2011/10/06/us-markets-precious-idUSTRE78M11C20111006
Brent crude held above $102 after surging in the previous session as pessimism about weaker demand was outweighed by a surprise drawdown of U.S. inventories and concerns that Libya’s largest oilfield could be damaged.
Brent November crude futures fell 32 cents to $102.41 by 12:30 a.m., pulling back slightly from a gain of nearly 3 per cent the previous day. U.S. crude, which jumped more than 5 per cent on Wednesday, eased 8 cents to $79.60 a barrel. http://www.reuters.com/article/2011/10/06/us-markets-oil-idUSTRE7922QH20111006
Senate Democrats want to hit millionaires with a 5 per cent surcharge on their taxes to pay for President Barack Obama’s $447 billion jobs program, but the plan seems to be going nowhere in the divided Congress.
Obama’s fellow Democrats in the Senate proposed the funding on Wednesday as they tried to rally support within their own ranks for Obama’s uphill bid to revitalize the economy. Senate Democratic leader Harry Reid said he aims to hold votes within days on the president’s proposal. http://www.reuters.com/article/2011/10/05/us-usa-financial-taxes-idUSTRE7946Y820111005
European Central Bank President Jean-Claude Trichet is expected to prepare the ground for a pre-Christmas interest rate cut at his final policy meeting on Thursday and offer banks further protection against the euro zone’s worsening debt storm.
The ECB is widely expected to keep rates unchanged at 1.5 per cent when it meets in Berlin, but calls for a cut have grown louder in recent weeks amid signs the euro zone economy is deteriorating further and as Greek default fears weigh heavily on confidence in the bloc’s banks. http://www.reuters.com/article/2011/10/06/us-eurozone-ecb-idUSTRE7946X520111006
U.S. Treasury Secretary Timothy F. Geithner will tell lawmakers that the European financial crisis is increasing the risks to global growth, according to testimony prepared for delivery tomorrow. “Our direct financial exposure to those governments and their financial institutions is quite small, but Europe is so large and so closely integrated with the U.S. and world economies that a severe crisis in Europe could cause significant damage by undermining confidence and weakening demand,” Geithner says in testimony to the House Financial Services Committee. http://www.bloomberg.com/news/2011-10-06/geithner-says-europe-s-financial-crisis-increasing-risks-to-global-growth.html
Bank of England officials may edge close to reactivating emergency bond purchases today as they gauge whether budget cuts and a European debt crisis warrant the first increase in stimulus in two years. HSBC Holdings Plc’s Janet Henry and Societe Generale SA’s Brian Hilliard are among 11 economists predicting an expansion of bond purchases.
The rest in a Bloomberg News survey of 32 forecasts say that policy makers led by Mervyn King will refrain from adding stimulus for now. Barclays Capital economist Simon Hayes says the bank will restart so-called quantitative easing when officials have new forecasts next month. http://www.bloomberg.com/news/2011-10-05/boe-may-move-closer-to-first-emergency-bond-purchases-in-almost-two-years.html
Jean-Claude Trichet’s legacy is still being scripted as he enters the final weeks of his eight-year term at the helm of the European Central Bank. Chairing his last rate-setting meeting in Berlin today, Trichet may be forced to take the ECB further into uncharted waters before he hands the presidency to Italy‘s Mario Draghi on Nov. 1, economists said. With Greece edging closer to default, the central bank is under pressure to deploy unlimited firepower to shore up the region’s bond markets either on its own or through Europe‘s bailout fund. http://www.bloomberg.com/news/2011-10-05/trichet-s-legacy-being-scripted-by-crisis.html
German Chancellor Angela Merkel said that Europe’s rescue fund will only be used as a last resort to save banks and that investors may have to take deeper losses as part of a Greek rescue. Merkel’s comments, her most explicit on banks’ role in fighting the debt crisis since the spillover from Greece began to threaten France and Italy, followed talks with European Commission President Jose Barroso in Brussels. Financial shares rose yesterday amid speculation that euro-area policy makers are working on plans to boost bank capital to contain the crisis. http://www.bloomberg.com/news/2011-10-05/merkel-signals-more-greek-investor-losses-readiness-to-boost-bank-capital.html
A draft proposal of the Volcker rule that cracks down on banks’ proprietary trading gives firms flexibility to hedge risk, and sets stringent limits on such trading beyond U.S. borders to address fears the rule will put U.S. firms at a disadvantage.
The draft posted online by The American Banker publication and widely circulated by the financial industry Wednesday also contained an exemption for market makers, but an industry group immediately said it was concerned the exemption may not be broad enough http://www.cnbc.com/id/44794950
Ho-ho-hum. That may sum up the sentiment this holiday season, as retailers — and consumers — proceed with caution, according to a forecast released Thursday by the retail industry trade group the National Retail Federation.
Holiday retail sales are expected to rise 2.8 per cent to $465.6 billion, the NRF predicts. This growth, while far slower than last year’s 5.2 per cent gain, is slightly higher than the 10-year average holiday sales gain of 2.6 per cent, the group said. http://www.cnbc.com/id/44626385
The Federal Reserve Bank of New York’s designation this week of two Canadian banks as primary dealers comes at a crucial time in which rates markets need all the liquidity they can get, analysts said on Wednesday.
Expanding the number of primary dealers will help keep the Treasury market and other short-term rates markets liquid, and is especially crucial as French banks continue to grapple with the euro zone debt crisis, the analysts said. http://www.foxbusiness.com/markets/2011/10/05/feds-primary-dealer-expansion-seen-aiding-markets/#ixzz1ZyXQKbyg
Americans’ self-reported spending in stores, restaurants, gas stations and online was down an average of $3 a day in September from the month prior, marking the second consecutive period of declines, according to a Gallup poll.
Consumers spent $65 a day in September, which is down from $68 in August and down sharply from the 2011 high of $74 in July. Gallup, which polls 1,000 national adults over the age of 18 each day, showed that upper-income spending also fell for the second month in a row. http://www.foxbusiness.com/markets/2011/10/05/consumer-spending-in-sept-nears-lowest-levels-2011/#ixzz1ZyXXMabL
Governments and private-sector partners may have to spend as much as $2 trillion to rescue Europe’s banks, said Laurence D. Fink, the chairman and chief executive officer of BlackRock Inc. “Stabilizing Europe is very costly,” Fink, who heads the world’s largest asset manager, said today during an event in Toronto. “It could be as much as a couple trillion dollars.” http://washpost.bloomberg.com/Story?docId=1376-LSM2T60UQVIB01-4GRHF792541VUKVACPH9056G1V
Europe’s stronger economies should avoid imposing drastic budget cuts at the expense of growth, a report by the International Monetary Fund has said. If things worsen in the UK, Germany or France, they should “consider delaying” cuts, because they can borrow “at historically low” interest rates.
The IMF also warned that a recession in Europe in 2012 could not be ruled out. Separately, a Markit PMI study said the eurozone’s service sector shrank for the first time in two years last month. http://www.bbc.co.uk/news/business-15181547
The free trade agreement between the US and South Korea has cleared the first hurdle four years after the deal was first agreed. The House Ways and Means Committee has voted to advance US free-trade agreements with South Korea, Colombia and Panama to the full House.
The push for a swift approval of the deals comes amid a slowdown in the US economy and high rates of unemployment. Backers of the deals said they will boost US exports and create jobs. http://www.bbc.co.uk/news/business-15194223
The UK economy grew by 0.1% between April and June, less than the 0.2% estimated previously. Output from the service sector grew by 0.2% in the quarter, compared with the previous estimate of 0.5%, the Office for National Statistics (ONS) said.
Separate data suggested activity in the UK service sector grew in September. The Treasury pointed to these figures as evidence the UK economy was still growing and said it would be sticking with its deficit reduction programme. http://www.bbc.co.uk/news/business-15178959
Business leaders have urged David Cameron for “specific, direct measures” to boost the economy and called for the Coalition to “commit to Plan A+” by next month.
Lobby groups welcomed the Prime Minister’s commitment to business in his conference speech, despite an earlier fiasco over credit card repayments – but said that the “roadmap for recovery” must be made clearer. http://www.telegraph.co.uk/finance/economics/8809305/Business-leaders-urge-Prime-Minister-David-Cameron-to-commit-to-Plan-A.html
Philip Clarke, the chief executive of Tesco, has blamed a further deterioration in consumer confidence and the “extraordinary” impact of higher petrol prices on expenditure for a dire set of UK sales, although group profits surged in the first half. http://www.independent.co.uk/news/business/news/new-tesco-boss-blames-economy-for-worst-uk-results-in-20-years-2366073.html
The country is trying to keep its lights turned on and its insatiable demand for energy is forcing it to look abroad for help. Ben Doherty reports from Delhi. Recently in Delhi, a group of India’s top energy experts, businessmen and bureaucrats met in a too-large, brightly-lit hotel conference room to discuss the country’s problems.
Standing at the podium, flanked by two massive video screens and lit by the additional glare of a bank of spotlights, the president of the India Energy Forum, P.S. Bami, told delegates, “We are in an energy crisis.” http://www.smh.com.au/business/indian-coal-rush-heads-australias-way-20111005-1l9hl.html#ixzz1ZyZQ04WX
The International Monetary Fund isn’t totally convinced that Canadian authorities have a handle on the risks building up in the housing market. “Developments on the housing front require increased vigilance, and consideration may need to be given to additional prudential measures to prevent a further buildup in household debt,” the Washington-based IMF says in its latest economic outlook for the Western Hemisphere. http://www.theglobeandmail.com/report-on-business/economy/economy-lab/daily-mix/canadians-household-debt-raises-eyebrows-at-imf/article2191848/
Europe’s deepening debt crisis poses a threat to the world economy as serious as the 2008 credit crunch, Britain’s prime minister said on Wednesday.
In a somber speech at an annual convention of his Conservative Party, David Cameron vowed to stick to sharp austerity measures – despite the economy’s meagre growth – and insisted Britain would not help fund ‘endless bailouts’ of its tottering European neighbours. http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_720419.html
China’s electronics and information technology (IT) sector continued to expand in the first eight months of this year but companies faced growing pressure from higher costs and slower income, according to latest official data.
The value-added output of manufacturers in the sector rose 15.5 per cent year-on-year in the Jan.-Aug. period and sales value increased 22.3 per cent year-on-year, said the Ministry of Industry and Information Technology (MIIT). During that period, exports of electronics and IT products climbed 15.5 per cent year-on-year to 420.9 billion U.S. dollars, said the MIIT.http://news.xinhuanet.com/english2010/china/2011-10/06/c_131176350.htm
Capital outflow from Russia may hit 50 billion U.S. dollars in 2011, said Deputy Minister of Economic Development Andrei Klepach on Wednesday. That would be at least 10 billion dollars more than what Klepach’s ministry had previously predicted: 30-40 billion dollars.
The number was 38.3 billion dollars in 2010. At a press conference, the official also said it would be difficult to forecast the fluctuation of ruble’s exchange rate. “When all world markets are falling, all energy-depending currencies are going down, we follow,” he said http://news.xinhuanet.com/english2010/business/2011-10/05/c_131175767.htm
In a discovery that could prove to be a major embarrassment to the Indian military a think-tank in the United States has used satellite imagery from Google Earth to observe what appeared to be construction activity around a new gas centrifuge near the Indian Rare Materials Plant (IRMP) for top-secret military uranium enrichment.
Publicly announcing its discovery of likely progress in India’s military uranium enrichment programme at the IRMP site not far from Mysore, the Institute for Science and International Security (ISIS) said that an image that it noticed from February 28, 2011 suggests that the new facility under construction is roughly 210 meters by 150 meters. http://www.thehindu.com/news/international/article2514342.ece?homepage=true
Due to deficiencies in its monitoring mechanism for exports, India’s central bank might be inadvertently abetting the creation of black money outside the country. These Reserve Bank of India (RBI) deficiencies were first pointed out in July by the Karnataka anti-graft agency’s report on illegal iron-ore mining in the state, but had gone unreported.
A follow up by ET with various parts of the banking sector and the export transaction chain not only confirms the same, but also suggests similar shortcomings could exist in other sectors of India’s $252-billion goods exports.http://economictimes.indiatimes.com/news/economy/finance/is-rbi-aiding-creation-of-black-money-in-india/articleshow/10250663.cms
Overseas orders for industrial plants won by South Korean builders dropped 18.3 per cent on-year in the first three quarters due mainly to a one-off factor, the government said Thursday. Local companies clinched US$41.4 billion worth of overseas orders in the January-September period, down from $50.7 billion in the same period last year, according to the Ministry of Knowledge Economy.http://english.yonhapnews.co.kr/business/2011/10/06/51/0501000000AEN20111006002700320F.HTML
Russia might export a total of 23 million tons of grain by next June, as this year’s harvest is sufficient to meet domestic demand, First Deputy Prime Minister Viktor Zubkov said Wednesday. The country, which recently lifted a grain export ban introduced last year after severe drought ruined a substantial part of the crops, has already exported 10 million tons, Zubkov said.
“This is absolutely the best result, a record over the last 20 years, I would say,” he told reporters after a Presidium meeting chaired by Prime Minister Vladimir Putin. http://www.themoscowtimes.com/business/article/putin-sees-bountiful-agriculture-positive-economy/444900.html#ixzz1Zyd8KrlV
OPEC countries which boosted oil production to compensate for the loss of Libyan supply earlier this year must reduce output as Libya returns to world markets, a senior Iranian oil official said on Wednesday. Iran’s OPEC governor, Mohammad Ali Khatibi, said the continuing global economic crisis would have a negative effect on oil demand. He predicted that Libya would soon be exporting some 400,000-500,000 b/d of crude and called on OPEC producers to rein in output.
“When oil demand falls and supply remains the same, oversupply can affect prices and it is necessary to manage the supply,” Khatibi said, quoted by IRNA news agency. “When the economic situation of industrial countries is not good and it is not likely for the oil price to surge, the oil price is at risk and management is necessary,” he said. http://www.tehrantimes.com/index.php/economy-and-business/3245-opec-must-cut-back-as-libyan-oil-returns-iran
Below is a 100 millisecond interval chart of stock symbol PERY at 12:40:45 on October 4, 2011. There was a sudden drop of approximately 30 cents, followed about 40 seconds later by a sudden rally of approximately 45 cents.
Trades are circles, and the NBBO is the shaded grey area. The sum of the trade volume shown in the left circle is 15,900 shares. The sum of the trade volume shown in the right circle is 15,940 shares. Coincidence? If not, does anyone have a hypothesis on what is going on here? This isn’t an isolated case. http://www.thetrader.se/2011/10/05/hft-mania-again-again-and-again/