Asian indices are mixed entering the new holiday-thinned trading week despite the 2nd consecutive significant down day on Wall st on Friday. Shanghai Composite is leading the rally, helped by hints of more assistance from policymakers. China power companies were especially strong on reports that the govt will start power company mixed-ownership reform next year. Chatter of more free trade zone trials were also constructive, as several provinces have interests to host their own version of FTZs. Finally, PBoC has set Yuan midpoint stronger for the first time in 2 weeks, even as analysts suggest this is unlikely to reverse a more structural trend of steady CNY decline. BOJ reiterated the economy has continued to recover moderately, adding that exports will likely increase, housing investment will pick up, and producer prices will likely decline further for the time being. Toshiba was down sharply (-9.8%) on reports that it will see a FY15/16 net loss of about ¥500B amid unfolding accounting scandal, cutting jobs in its TV and home appliances division with estimated cost of about ¥200B. Spain's general elections offered a consolation prize to the anti-austerity camp. Even though the more conservative ruling Popular Party (PP) was victorious with 123 seats in Parliament, it was well below the number required for majority govt and also 63 seats shy of the 2011 result. Subsequently PP, which has ceded a number of seats to the upstart Podemos, will either have to look for a partner or attempt to form a minority govt that will likely produce political turmoil. Note that socialists obtained 90 seats, Podemos 69 seats, and centrist Ciudadanos got 40 seats.
Nikkei -0.37% Hang Seng +0.34% Shanghai +1.78%
Eur$ 1.0872 CNY 6.4804 JPY 121.35 GBP 1.4924 CHF 0.9915 WTI$34.42
S&P +0.41% EuroStoxx-0.58% Dax -0.46% SMI -0.83%
Macro :
- Greek Bond Yields May Drop Below 5% in 2016, Paulson Tells Real
- Lippmann, Trader Portrayed in ‘Big Short’, Said to Plan New Fund
- US Retail Sentiment : IPSOS survey finds 55% of US shoppers are cautious about spending because of economic uncertainty, about equal to response in a survey taken last year at this time
- Fed's Powell (moderate, FOMC voter): A 25 bps rate hike will not have a major impact on the economy; rising rates is a sign of Fed's confidence in the economy; the Fed was not backed into a corner on this rate hike
- Spain’s Socialists Say Rajoy Has First Chance to Form Government
- Hedge Funds Cut Bets for Third Week That Dollar Will Strengthen
Keep an eye on :
- ANA SM : Acciona Wins Tender for Ground Handling in Dusseldorf, FAZ Says
- AC FP : Accor CEO Bazin Says He’s Not Afraid of Airbnb: Figaro
- AIR FP : IndiGo Says Airbus Informs A320neo Aircraft Delivery Delayed
- EN FP : Bouygues Construction Gets EU92m Longchamp Racecourse Contract
- CRG IM : Banca Carige may rejoin race for merger with BPM
- BLT LN : Brazil judge freezes assets of Vale and BHP after finding their joint venture Samarco was unable to pay damages for the dam burst in Minas Gerias - press - The judge ruled that Vale and BHP could be held liable for the BRL20B ($5B) in damages being sought by the state of Minas Gerais. Vale argued unsuccessfully that Samarco was independent legal entity that should be wholly responsible for the accident and resulting fines and damage awards.
- CO FP : Cnova Reviews Brazil Inventory Tied to Employee Misconduct
- ENI IM : Eni, Sonangol to Upgrade Plan for Lobito Refinery
- FCC SM : Spain’s FCC Seeking to Sell Cedinsa Stake: Confidencial
- GAS SM : Gas Natural Fenosa to divest LPG business in Chile
- GDS FP : Generale De Sante Buys HPM’s 9 Clinics for EU135m: Les Echos
- HBH GY : Hornbach Holding 3Q Net Falls 49%; Sees L/T Potential Intact
- IFX GY : Renesas CEO Says Capital Tie-Up With Infineon Possible: Reuters
- ITV LN : Comcast Weighing GBP11b Bid for U.K.’s ITV, Mail on Sunday Says
- BAER VX : U.S. to Ask Julius Baer for $700 Million Fine: Sonntagszeitung
- MEO GY : Haniel will cautiously look to widen portfolio
- MMT FP : M6 Chairman ‘Disappointed’ by Paris Premiere Decision: Echos
- NDA SS : Nordea CEO Says Ambition is to Increase Nominal Dividend: DI
- UG FP : PSA Peugeot Citroen Made More Cars in Europe Than Planned: Echos
- RCS IM : RCS Mediagroup Targets Doubling Ebitda by 2018 vs 2015
- ALRIC FP : *RICHEL GROUP SUSPENDED PENDING PRESS RELEASE: EURONEXT
- RR/ LN : Rolls-Royce Says Diesel Engine Business ’A Risk Area’: FT
- SAN SM : Santander Buys Banif For EU150m; Portugal Plans EU2.2b Aid
- SBMO NA : SBM Board Says No Impediments to CEO Continuing in Role
- SHP LN : Shire to improve offer for Baxalta with GBP 8bn cash sweetener - Sunday TImes
- SYNN VX : ChemChina Said to Improve Bid for Syngenta in Two-Stage Takeover
- TLSN SS : TeliaSonera Agrees to Sell Holding in Ncell to Axiata
- TIT IM : Telecom Italia Gets 4 Non-Binding Bids for Inwit Stake: Il Sole
- UBER IPO : Uber-Rival Lyft to Raise Up to $1 Billion in Latest Round
- FR FP : Valeo Buys Peiker to Expand in Germany
- VPK NA : Royal Vopak Agrees to Sell U.K. Assets to Macquarie, Greenergy
- VOW3 GY : Calif. Extends Deadline on Volkswagen Diesel-Emission Plan