Global News November 12, 2015

  1. Bloomberg News
  2. Global News November 12, 2015

Bloomberg Business

-Fedspeak: Emerging market currencies are weaker against the U.S. dollar and EM stock volatility is hovering near its highest level since March 2012 ahead of a bunch of Federal Reserve speeches scheduled for today.

-Dovish Draghi: Mario Draghi signaled that the European Central Bank is ready to boost stimulus at its December meeting at a hearing in the European Parliament this morning. He said that signs of a turnaround in core inflation have somewhat weakened and downside risks are visible. The euro currency briefly dropped below $1.07 following his comments. Euro-area stocks which turned positive after his speech had given up those gains by 10:49 a.m. London time.

-China credit slump: China’s broadest measure of new credit slumped to the lowest in 15 months in October, as aggregate financing fell to 476.7 billion yuan ($75 billion), well below median projections from economists for 1.05 trillion yuan. This is the latest in a series of mixed data on the Chinese economy which has investors now expecting further easing from authorities. The Shanghai Composite Index, which had closed before these numbers were released, ended the session 0.5 percent lower on tech company weakness.

-Euro crisis simmering: There is a national strike in Greece today as unions protest against the policies of the Syriza government, whose Prime Minister Alexis Tsipras had been leading such protests in the recent past. In Portugal, an alliance led by the Socialist Party ousted Prime Minister Pedro Passos Coelho in a vote on Tuesday leaving the country awaiting word from the president on his successor. Socialist lawmaker and economist Mario Centeno has promised Portugal “definitely won’t” follow Greece’s path. Meanwhile in Spain, the country’s constitutional court has warned Catalan secessionists not to ignore moves to halt the regions bid for independence.

-Valeant: Valeant and activist investor Bill Ackman must face a shareholder lawsuit over alleged insider trading after they lost a bid to have the case dismissed. Shares in the company closed at $78.90 yesterday, with NYU professor Aswath Damodaran, an expert on corporate valuations, saying shares are now approaching fair value which he puts at $72.10 apiece. Bill Ackman, meanwhile, managed to get into a public spat with Berkshire vice-chairman Charles Munger who had previously criticized Valeant. Ackman said he has «a problem with Berkshire’s ownership of Coke. Coca-Cola has probably done more to create obesity, diabetes on a global basis than any other company in the world.”

Fuente: Bloomberg Business

CNN Money

-Stock market mover — Rolls-Royce: Shares in aerospace engineering company Rolls-Royce Holdings (RYCEY) fell by as much as 22% in London trading before recovering slightly after the company warned about a «challenging» business outlook in 2016. The company is often confused with luxury automaker Rolls-Royce Motor Cars, but they are not connected.

-Retail therapy: Investors will be closely watching earnings from retailers including Kohl’s (KSS), Dillard’s (DDS) and Nordstrom (JWN) on Thursday after Macy’s (M) results on Wednesday came in below Wall Street expectations. Shares in Macy’s dropped by 14% after it reported third quarter sales fell by 5% compared to a year ago. It also warned sales in the fourth quarter would be lower than last year. China’s annual online shopping bonanza ended with Alibaba (BABA, Tech30) smashing its own record with sales of $14.3 billion.

-Other earnings: Viacom (VIA) and British soccer club Manchester United (MANU) are among a number of companies reporting earnings before the opening bell. After the close, we’ll hear from companies including Cisco Systems (CSCO, Tech30) and Party City (PRTY).

-Economics: European Central Bank President Mario Draghi dropped another hint that the bank will boost its economic stimulus efforts in December, adding to downward pressure on the euro. The currency was 0.5% weaker at $1.07. The latest weekly U.S. jobless claims data is coming out at 8:30 a.m. ET. And crude inventory numbers will be released at 11 a.m. Then the Treasury Department will release its October budget information at 2 p.m.

-Stock market overview: U.S. stock futures are not making any major moves ahead of the open, trading roughly in line with Wednesday’s closing levels. European markets are dipping in early trading, while Asian markets ended with mixed results. The Hang Seng in Hong Kong staged the biggest move higher with a 2.4% jump. Looking back to Wednesday, the Dow Jones industrial average, S&P 500 and Nasdaq all edged down by 0.3%.

Fuente: CNN Money