Unexpected contraction in Japan Q3 preliminary GDP has taken markets across the globe on a wild ride, as the world's 3rd largest economy entered another technical recession with a 2nd consecutive quarter of falling growth. A closer look at GDP components revealed private consumption - about 60% of Japan's economy - growing just 0.4% vs 0.8% consensus estimate. Similarly, corporate CAPEX component indicated lingering impact of the April sales tax hike to 8% spilling over into other sectors of the economy, falling 0.2% against expected increase of 0.9%...This Surprise number should deley 2nd round of Tax increaseNikkei225 is down 3%, S&P500 futures down 10 handles or 0.5% belowm2,030, US 10-yr yield is down 4bps below 2.3%, and gold rose above $1,190 - up $10 from the lows....formal launch of the trading link with Hong Kong. Separately, a report from National Energy Administration (NEA) saw Oct power consumption - one of Premier Li's preferred
gauges of activity - rising 3.1%, up from 2.7% increase last month and the fastest annual rise in 4 months. On the flip side, China Banking Regulatory Commission warned about the rise in non-performing loans, as Q3 NPLs rose by CNY72.5B to CNY766.9B, the highest increase since 2005.
Eur$ 1.2539 S&P -0.42% EuroStoxx -0.72% FTSE NA DAX -0.73% SMI -0.35%
Macro
- Japan GDP Falls Annualized 1.6% in 3Q vs. Est. +2.2%
- G-20 Plans $2 Trillion Growth Boost to Uneven Global Economy
- EU Commission considering leverage factor of 10 for €300B investment fund
- Royal Says France Ready to Sell Stakes in Energy Groups: Echos
- ECB’s Coeure Says Euro Area Must Boost Productivity, Investment
- Putin Says Gazprombank May Ask Ukraine to Repay $3.2b Early
- Putin Said to Plan to Leave G-20 Earlier Than Scheduled Sunday
- FT : Sovereign debt rule change ‘could prompt €1.1tn rebalancing
Keep an eye on :
- ALO FP : Alstom Gets EU343M Mexico Metro Contract, Le Parisien Says
- ALV GY : Pimco Total Return to See ’Massive’ Withdrawals in Jan: Fox Bus.
- BHI US : Baker Hughes -2/3% agfter Hours on Friday on news of talks stalled - few articles about Hostile Bid
- BKIA SM : Bankia gives Credit Suisse mandate to sell Metrovacesa stake before year end
- ORPN US : Soros Bought Stake in BioBlast Pharma in 3rd Quarter
- BMPS IM : Monte Paschi Derivatives Trade Cut Core Capital EU411m: Reuters
- BT/ LN : BT Rules Out Sale of Global Services Unit: Sunday Telegraph
- CRG IM : Carige not to carry out merger before capital increase
- CRG IM : Santander Weighs Banca Carige Acquisition: El Confidencial
- CO FP : positive article in the Barron's, IPO of Cnova e-Commerce business could be a good trigger for the stock
- BN FP : Danone Said to Weigh Medical-Nutrition IPO as Sale Talks Falter
- EDF FP : France Won’t Start Stake Sales With EDF, Francaise Des Jeux
- EDF FP : EDF Considering Sale of Stake in RTE Power Grid, JDD Reports
- GYC GY : Grand City Properties 3Q FFO I Rises 32% to EU19.3m
- HAW GY : Meyer Says Tocos Won’t Change Offer for Hawesko: Die Welt
- LI FP : Klepierre Buys 60% of Massalia to Develop Prado Shopping Center
- COX FP : Sells US Ophthalmic Diagnostic unit for up to $20M to Valeant
- RB/ LN : Reckitt Holders to Get 1 Indivior Shr for Each RB Shr Held: FT
- SAB LN : SABMiller could grow African spirits portfolio; has measured approach
- SPM IM : Saipem preferred buyer could be from the GCC or Italy, Subsea 7 and Seadrill of Norway, also mentioned as potential buyers, are unlikely buyers
- SMDR LN : Ophir to abandon pursuit of Salamander Energy this week - Sunday Times
- SAN FP : Sanofi Unit Genzyme’s Lemtrada Approved by FDA
- SAN SM : Banco Santander Units Subpoenaed by NYC on Auto Loans: NYT
- SHB LN : Shaftesbury stakebuilding by Samuel Tak Lee prompts takeover speculation
- SHP LN : Paulson & Co. Increased Shire Stake to $2.3b in 3Q
- SIE GY : Siemens CEO Says Medical Tech Remains Important: Sueddeutsche
- SOON VX : Sonova 1H Ebita CHF215.9m, Est CHF220.8m; Confirms 2014/15 Goals
- SPD LN : Sports Direct Weighs Bid for LA Fitness, Sunday Express Reports
- SPD LN : Kitbag Sale Attracts Interest of Sports Direct: Sunday Telegraph
- TALK LN : Talktalk, Telefonica UK to Start Mobile Service: FT
- TIT IM : Telecom Italia May Raise Capital for Oi-Tim Merger: Messaggero (This Week end)
- TIT IM : Telecom Italia Says Not Weighing Capital Increase (Today)
- UBER-IPO : Uber to Announce Partnership With Spotify, NYT Reports
- VIV FP : Vivendi to Scout Takeovers (Earlier)
- ZTS US : Zoetis Adopts 1-Yr Holder Rights Plan