Asian equity markets are down across the board as the high-profile OPEC meeting in Doha failed to produce oil output freeze the hopes for which had contributed to the recent energy rally. Oil prices opened down by about 5% below $40 in June WTI, while Brent was down over 4% around $41/brl. Risk aversion from lower oil prices also spilled over into equities and FX, with renewed concerns for higher-cost producers and also regarding exposure to the energy space among financials. Australia's energy names were the hardest hit, US futures were down about 0.65%, and USD/JPY sank some 70pips below ¥108, dragging down the Nikkei by over 3% with an added headwind from weekend seismic activity. Tensions between Iran and Saudi Arabia were largely seen as the culprit in the inconclusive Doha talks - the former refusing to even send its representatives as it seeks to ramp up production after years of being hamstrung by Western sanctions, and the latter demanding full OPEC participation. Russian Energy Min Novak said there was a draft under discussion centered around freezing output at January level until October, but new demands surfaced on Sunday. Qatar oil minister said negotiators will now need more time to consult, and any action on production levels is unlikely to be taken for months. Japan PM Abe spokes about intentions to use various tools for earthquake disaster relief. Two earthquakes of magnitude 6.5 and 7.3 hit Japan over the weekend, killing over 40people and shutting down production at facilities run by Toyota, Honda, and other manufacturing giants. According to one estimate, the impact of the earthquake on Japan GDP could be as high as 1-2%. Brazil President Rousseff did not survive the impeachment vote in the lower house of Parliament. The ruling party has conceded defeat, though Rousseff announced she plans to contest the decision using legal means. The impeachment process now moves to the Senate, where the first vote is expected in 15 days. YHOO: Verizon thought to move ahead with a prelim bid for Yahoo; Time Inc will not proceed with the bid, sees the challenges facing company as too great (WSJ)
Nikkei -3.09% Hang Seng -1.34% Shanghai -1.65%
Eur$ 1.1283 CNH 6.4906 CNY 6.4797 JPY 107.96 GBP 1.4160 CHF 0.9672 RUB 67.8750 WTI $38.59( -4.39%)
S&P -0.64% EuroStoxx-1% Dax-1.15% SMI-0.54%
Macro :
EU Commission, ECB, IMF Agree on Demands for Greece, SZ Reports
Oil Plunges After Output Talks Fail Amid Saudi Demands Over Iran
Rousseff Hangs by a Thread After Losing Impeachment Vote
IMF: Lagarde Says Ready to Support ‘Realistic’ Greek Program
G-20 Weighs Penalties Against Tax Havens After Panama Papers
Negative Interest Rates ‘Insane’ Experiment, El-Erian Tells FAS
OPEC Chief Says Oil Sell-Off May Be Hitting Bottom: Statement
Saudi Prince Reiterates Oil Freeze Depends on Others Joining
Saudi Arabia’s Post-Oil Plan Starts April 25, Prince Says
Keep an eye on :
- ABI BB : AB InBev’s rising share price may force modification of SABMiller acquisition terms, all cash offer (5gbp) is less attractive after ABI Perf. http://bit.ly/1Sm8yfj
- ACS SM : ACS environmental services unit Urbaser eyed by three Chinese funds - El Confidencial
- AIR FP : Airbus Interested in Russian Helicopters Shares, Interfax Says
- AIR FP : Airbus Said Poised to Win Delta Deal for at Least 30 A321 Jets
- AIR FP : Airbus Says No Plan to Buy Stake in Russian Helicopters: Rtrs
- AF FP : Air France Plane Makes Emergency Landing in Japan, Yomiuri Says
- AAPL US : China is now #2 in iOS revenue, behind the U.S. - TechCrunch - http://tcrn.ch/1VwtMve
- BKIA SM : Spain’s FROB Asks EC to Approve Bankia, BMN Merger: Confidencial
- B5A GY : Bauer Says Exceeded Forecast for 2015; ‘Cautiously Optimistic’
- BPE IM : Pop. Emilia Considering Merger, Won’t Take Risks, Il Sole Says
- CAI AV : *IMMOFINANZ AGREED TO BUY CA IMMO STAKE FOR EU23.50/SHR
- CABK SM : CaixaBank Launches New Takeover Bid for BPI for EU1.6 Billion
- DRTY LN : Darty: Fnac unwilling to engage in struggle to the end with Conforama - JDD
- DBK GY : German Banks Fear Iran Deals Due to U.S. Sanctions: Der Spiegel
- DIS US : Disney wants to invest in Major League Baseball’s video streaming company - re/code.net - http://on.recode.net/1S1dtU5
- EDF FP : Macron Sees Hinkley Point Deal Signed in Coming Weeks or Months
- ENI IM : Eni Loses Appeal to Resume Operations in Val d’Agri Plant
- HMB SS : H&M Chairman Stefan Persson Has Bought Further 3m Shares
- IIA AV : *IMMOFINANZ AGREED TO BUY CA IMMO STAKE FOR EU23.50/SHR
- EMG LN : Man Group’s AHL Fund Boosts Machine Learning Investment: FT - http://on.ft.com/1WzdCAj
- MHG NO : Marine Harvest 1Q Harvest Volumes 97,000 GWE Vs 93,000 Guided
- MKS LN : M&S Landlord Topland Named Agents to Sell 76 Stores: Telegraph
- OML LN : Old Mutual Reports Smaller Delta Lloyd Stake of 2.19%: AFM
- PHIA NA : Philips Lighting: Apollo, GO Scale Capital and a Blackstone and Onex consortium are the final takeover candidates - Financieele Dagblad -
- 1913 HK : Tiffany, Prada Dig Deeper in Digital to Boost In-Store Sales
- PUB FP : +ve article in the BArron's, 30% potential upside
- RHK GY : Rhoen-Klinikum does not expect takeover bid; to invest in Medtec start-ups - Boersen-Zeitung
- RWE GY : RWE Redid Suspected Falsified Inspections, Hesse Ministry Says
- SBRY LN : CVC And Qatar Abandon £6bn Sainsbury’s Bid- Sky News - http://bit.ly/1SeSjhU
- SIE GY : Siemens to Build EU500m Reserve Power Plant in Germany: Welt
- SKY LN : Sky, Sony Deal Would Put Films on Sky Channels First: Telegraph
- SREN VX : Swiss Re could merge Corporate Solutions with rival; buys outside core business possible - Neue Zuercher Zeitung
- SUNE US : SunEdison to File for Bankruptcy as Early as Sunday: Rtrs
- TEF SM : TEF: Hutchison-Telefonica U.K. deal fails to win over EU regulat
- TKA GY : ThyssenKrupp does not expect swift consolidation of European steel market - Boersen-Zeitung
- VOW3 GY : VW Appoints New Crisis Manager in Diesel Affair: Automobilwoche
- VOW3 GY : VW faces looming deadline as potential costs of scandal mount - FT - http://on.ft.com/22EMHmf
- WKL NA : Wolters Kluwer Buys Adaptive Learning Tech Tool for Education
US Earnings Calendar (Main Names)
Monday 18th
Before open : HAS, MS, LII, PEP After Close : CE, IBM, NFLX, PNFP
Tuesday 19th
Before open : GS, HOS, JNJ, OMC, PM, After Close : INTC, VMW, YHOO
Wednesday 20th
Before open : ABT, CHKP, KO, DISH, EMC, USB, YGE After Close : AXP, KMI, LVS, MAT, MLNX, NEM, SYK, UAL
Thursday 21th
Before open : ALK, BX, BK, DHR, FCS, GM, JCI, LAZ, MAN, NUE, RCL, UA, VZ After Close : MSFT, SLB, SBUX, UIS, V
Friday 22th
Before open : AAL, AN, CAT, GE, HON, IPG, KMB, LYB, MCD