Global News November 24, 2015

  1. Bloomberg News
  2. Global News November 24, 2015

Bloomberg Business

-Warplane shot down: Turkey has shot down a Russian jet near the Syrian border. In the immediate aftermath markets have reacted nervously, with the lira selling off, Russian stocks sliding and global government bonds climbing as investors move to safe havens. will have more on this developing story throughout the day.

-Ackman increases Valeant stake: Bill Ackman’s Pershing Square fund raised its stake in Valeant Pharmaceuticals International Inc. to 9.9 percent in a series of transactions starting in October, the activist hedge fund disclosed in a filing on Monday. Shares in Valeant rose 3.7 percent to $90.60 in late trading after the filing was published. Separately, Carl Icahn said he has amassed a 7.13 percent stake in Xerox Corp., and may seek positions on the board of the company.

-Yellen defends policy: Federal Reserve Chair Janet Yellen has defended seven years of zero interest rates in a response to a letter from a group including Ralph Nader. Yellen repeated her expectation for a gradual tightening of policy after liftoff. Futures this morning indicate a 74 percent chance that the Fed will raise rates at its December meeting.

-German consumer: Economic growth in Germany in the third quarter was led by private and government consumption as trade suffered from the global slowdown. Domestic demand increased 0.7 percent in the three months through September, with the economy expanding 0.3 percent, matching a Nov. 13 estimate. Business confidence unexpectedly rose to 109 in November according to the IFO institute’s business climate index as the Volkswagen AG scandal fails to dent the outlook for the economy.

-Coming up: A big day for data in the U.S. with the second estimate of third-quarter GDP due from the commerce department at 8:30 a.m. ET, where economists are expecting a revision higher to 1.9 percent from the previously reported 1.5 percent. At 9:00 a.m. home price data from S&P/Case-Shiller is due, with economists looking for a faster pace of price growth in the 12 months to September. Then at 10:00 a.m. the Conference Board releases U.S. consumer confidence, with economists looking for a rebound from October’s three-month low.


CNN Money

-More tensions in the Middle East: A Russian warplane crashed on the Syrian side of the Turkey-Syria border on Tuesday, amid heightened tensions in the region. Russia started airstrikes in Syria last month. The Turkish lira dipped 0.8% against the dollar on the news, and markets around the world are also dipping. «European equities remain under pressure into Tuesday, with Brussels still in lock down and breaking news that a jet has been shot down by the Turkish air force around the border with Syria…geopolitical drivers are still dominating sentiment,» Augustin Eden, analyst at Accendo Markets, wrote in a note.

-Stock market movers — Xerox, airlines, travel companies: Xerox (XRX) shares saw a 7% boost during extended trading after a new public filing revealed that activist investor Carl Icahn is upping his stake in the company. Travel companies are under pressure, after the U.S. issued a worldwide travel alert for Americans amid concerns that terror groups and individuals may be planning more attacks after the Paris massacres. Shares in Air France-KLM (AFLYY), Cathay Pacific (CPCAF), Qantas (QABSD), Lufthansa (DLAKF) and other airlines are dipping. Cruise lines Royal Caribbean Cruises (RCL) and Carnival Corporation (CCL) are both trending about 1.4% lower in premarket trading. Volkswagen (VLKAF) is up 2.5% in early trade on Tuesday, on reports that the German automaker found a fix for its emission-cheating software.

-U.S. dollar on fire: The dollar rally continues, as investors increasingly expect the Fed to raise interest rates next month. At the same time, the European Central Bank is likely to start pulling in the opposite direction, cutting rates or extending its money printing program. A stronger dollar is also putting pressure on commodities. Gold, silver, and platinum are all significantly down this month, hovering around multi-year lows.

-Earnings & economics: Retailers Dollar Tree (DLTR), DSW (DSW), Burlington Stores (BURL) and Tiffany & Co (TIF) will report quarterly results this morning, along with Cracker Barrel (CBRL), Campbell Soup (CPB), and Hormel Foods (HRL) — owner of brands like Spam, Skippy, and Jennie-O. This afternoon, Hewlett Packard Enterprise (HPE, Tech30) and its newly-formed sister company, HP (HPQ), will report their final combined earnings. The two companies split earlier. Also coming after the bell are reports from Guess (GES) and TiVo (TIVO).

-International markets overview: European markets are down in early trading, while Asian markets were mixed at Tuesday close.