US Market Closed Higher on Friday. In a surprise outcome, the pro-business Brazil candidate Neves stormed ahead
of environmentalist Silva and will challenge incumbent Rousseff in a runoff on Oct 26th. In today's first round, Rousseff received just over 40% of the vote, followed by Neves at 35% and Silva at about 20%. Most recent polls have suggested that Rousseff is still a favorite to win in the next round...World Bank lowered its China GDP target to 7.4% from 7.6% prior and 2015 GDP to to 7.2% from 7.5% prior. WB also cut its outlook for emerging East Asia 2015 GDP to 6.9% from 7.1% prior, but added "the pace of growth in the region, excluding China, will pick up next year, as the gradual recovery in high-income economies boosts demand for exports from the region." WB economist said "East Asia Pacific will continue to have the potential to grow at a higher rate and faster than other developing regions- if policy makers implement an ambitious domestic reform agenda."...Hong Kong chief exec Leung reiterated the administration will "take all necessary actions to restore social order"...In Japan, the approach of Typhoon Phanfone has resulted in temporary production suspension among the main automakers. Thousands of travelers are also stranded with hundreds of flights cancelled by JAL and ANA. Separately, Japanese press speculated the govt may delay the release of GPIF portfolio allocation plans to Nov or later from initially planned October move...In Europe, a financial press report stated the EU is preparing to reject France 2015 budget, which may place it in 'serious noncompliance' with the new EU rules. Separately in Germany, local press speculated IMF may cut German 2014 GDP forecast to 1.5% from 1.9%, while Bundesbank's Weidmann panned ECB buying loans of "weaker quality" potentially resulting in "credit risks assumed by private banks being passed on to the central bank and thus the taxpayer, without adequate compensation."...Nikkei +1.50% Hang Seng +0.58%...Shanghai +0.26%
Eur$ 1.2520 S&P +0.28% EuroStoxx +0.90% FTSE +0.23% DAX +1.23% (was closed on Friday) SMI +0.53%
Macro
- Fed Will Probably Raise Rates in 3Q, Goldman’s Hatzius Says
- Norway Wealth Fund Should Be Able to Invest More in Stocks: DN
- Swiss Give France UBS Client Info in Tax Case: SonntagsZeitung
- EU said to be preparing to reject France 2015 budget - financial press
Keep an eye on :
- AF FP : Air France May Revise Strike Cost to as Much as EU400M: Reuters
- AIR FP : EADS Insider Trading Trial Postponed for Three Months: Les Echos
- AREVA FP :Said to be likely to decide to scale back investments in order to avoid a credit rating downgrade
- ATC NA : Altice could acquire PT Portugal as part of Oi-TIM merger
- CU FP : Club Med Board Seen Backing Fosun Bid for Co.: Les Echos
- EDF FP : France Energy Min: To consider the cost of maintaining older reactors in decision related to investment in new nuclear power
- EDL FP : €420mil cap increase, to convert €600m bonds into Equities
- G IM : Generali Could Appoint Trichet to Replace Scaroni: Corriere
- GET FP : Antin, Ardian May Bid for Eurostar Stake, Sunday Times Reports
- NOVN VX : Novartis would consider share-swap for 33.3% Roche stake
- NOVN VX : Novartis, Bristol-Myers Squibb’s in NSCLC Treatments Pact
- PAL AV : Palfinger 2014 Ebit Will Fall as New Orders `Nosedive'
- PCI LN : Dragon Oil Proposes 230p/Shr Cash Offer for Petroceltic
- PHIA NA : Philips Wants Service Suppliers to Cut Bills: Eindhovens Dagblad
- ROG VX : Roche to Spend CHF1b on Herzog & de Meuron Basel Offices: SZ
- ROG VX : Genentech sales staff banned from visiting 1.9k hospitals in the US
- SAB LN : Asahi Pressured to Make Acquisitions For Overseas Growth: FT
- SIE GY : Exec: expects profitability at its gas-turbine operations to shrink
- TTK GY : Haniel Supporting Takkt Growth Plans, CFO Tells Boersen-Zeitung
- TSCO LN : Tesco Pledges to Sell Aircraft Fleet as It Gets New $50m Jet: FT