Dow-1.66% S&P-1.53% Nasdaq-1.05% Russell-0.78% VIX 27.80 (+8.55%)
US Market Closed lower on Friday before a long week end (Market closed today for labour day). NFP Report appeared mediocre as the headline number came in below expectations (173,000; consensus 217,000); however, better than expected hourly earnings growth (+0.3%; consensus +0.2%) and a drop in the Unemployment Rate (to 5.1% from 5.3%) meant that the report is unlikely to deter the Federal Reserve from raising the fed funds rate as early as this month. Energy sector surrendered 1.7% on Friday, widening its weekly decline to 3.1%. On a related note, crude oil slid 0.7% to $45.97/bbl, ending the week higher by 1.7%. Nasdaq Large Cap traded on line with the broader market. Volume were in line with average at 828mil shares...Asian Markets are trading slighlty lower, S&P emini trading +0.61%...Comments from various China govt officials have also been constructive. PBoC Gov Zhou noted the rapid decline in China equities is coming to an end, and that financial markets will become more stable. State planning agency NDRC also said the economy is stabilizing and improving. NDRC also cited data from the State Grid, estimated Aug power consumption at 508B kwh, +2.5% y/y - the highest rate of growth in 2015. China Stats Bureau revised the 2014 GDP to 7.3% from 7.4%, but Fin Min Lou remarked that China's new normal is 7% growth for next 4-5 years. Those comments are reassuring considering the rampant speculation of growth dipping well below 7% in Q3 and Q4. A separate press report also speculated Q3 would mark the trough in China slowdown...IMF head Lagarde spoke at the G20 summit, urging member nations to accelerate efforts to boost growth to meet the growth targets set last year. For advanced economies, Lagarde saw activity picking up only modestly this year and next, while emerging markets' prospects have been weakened. Lagarde also reiterated that the Fed should not rush to a decision on rates but rather take a more methodical review in its impending policy shift. Note that the odds of Fed Funds reaching 0.25 in Sept following the US jobs report have risen above 80%.
Nikkei -0.28% Hang Seng -0.42% Shanghai -1.05%
Eur$ 1.1144 CNY 6.3675 JPY 119.34 CHF 0.9729 GBP 1.5172 RUB $68.6325 WTI $45.72(-0.72%)
S&P +0.62% EuroStox +0.70% Dax +0.65% SMI +0.57%
Macro :
- Moscovici Sees EU Maintaining Growth Forecasts for 2015
- Noyer Says Markets Are Well Prepared for Fed Rate Increase
- China’s Stock-Market Rout Is Almost Over, Says PBOC Governor
- Lagarde Says Fed Must Be Sure of Jobs and Prices Before Moving
- US investors look to revival in investment grade corporate bonds http://on.ft.com/1QiEcIG
- Investments in Oil Production to Fall by $137B in 2015: Rosneft
- Emerging Market Equity Funds See 10th Week of Outflows: MS
Keep an eye on :
- ATLN SW : Shire Could Target Radius, Actelion, Ariad Pharma: Sunday Times
- ATL IM : Benetton Family’s Atlantia May Bid for City Airport: S. Times
- BSLN SW : Basilea to Develop Inhaled Antibiotic for CF, Bronchiectasis
- CA FP : Carrefoursa re-IPO plan on hold as retailer focuses on small targets - CEO
- CSGN VX : Credit Suisse Ordered to Pay Highland Capital $287.5 Million
- CSGN VX : Credit Suisse Can Erase Capital Gap by Shrinking IB: Barclays
- DAI GY : Daimler CEO Zetsche Sees no Crisis in China: Bild am Sonntag
- DGE LN : FT : Diageo drifts after merger talk revival, talks oa SAB Merge of Equal - http://on.ft.com/1JVpEcO
- DC/ LN : Dixons Carphone May Put Phone House Spain on Sale: Expansion
- EDF FP : EDF’s Flamanville Upward Revision Credit Negative, Moody’s Says
- ENEL IM : Enel to Sell Second Part of Slovenske Stake 2 Yrs From Now: CEO
- ENI IM : Natural Gas Discovery Positive for Eni, Egypt, Moody’s Reports
- FCA IM : Marchionne Says GM Remains Ideal Partner for FCA: Radiocor
- FCA IM : Ferrari Owner CEO Sees Succession Plan at Right Time: Radiocor
- FRE GY : Fresenius SE Reiterates Its Dividend Policy: Euro am Sonntag
- FCX US : Icahn-Targeted Freeport Said to Work With JPMorgan on Strategy
- FNAC FP : France’s FNAC to Open Two Stores in Ivory Coast, Figaro Says
- G IM : Interview of CEO in FT : http://on.ft.com/1Qi5sqY
- GLEN LN : Glencore Halts Trading in H.K. Pending Plans to Reduce Net Debt, was -1.15%
--> *GLENCORE PROPOSED EQUITY ISSUANCE OF UP TO US$2.5B
- IHG LN : Marcato Capital Sells Stake in IHG: Sky News http://bit.ly/1UAAECh
- INTC US : Feds clear Intel’s $16B acquisition of Altera - NY Post
- SDF GY : Potash Names BofA as One of Advisers on K+S/Potash Deal: FAZ
- LHA GY : Lufthansa Pilots to Strike Tomorrow, Cockpit Union Says
- EMG LN : Man Group’s Li Denies That She Was Assisting With Investigation
- MAU FP : Maurel & Prom Declares Force Majeure at Gabon Pipeline
- MVC SM : Metrovacesa to Halve Its Debt in 5 Years, Expansion Says
- MBTN SW : Meyer Burger CEO Says Co. Could Return to Profit Next Year: SoZ
- ORA FP : Orange CEO Richard Says He Won’t Take Part in Price War: Echos
- REP SM : Repsol to Cut Costs, Investments on Oil Drop, Confidencial Says
- CFR VX : FT : Swiss watch industry finally moving into an era of self-reliance http://on.ft.com/1Ut6nuh
- CFR VX : FT : EM turmoil and strong franc cast shadow over Swiss luxury industry http://on.ft.com/1NVHp2D
- PSX US : Warren Buffett discloses 10.8% passive stake in 13G filing
- PAH3 GY : Porsche Plans to Increase Staff by 11% This Year: Automobilwoche
- SAB SM : Sabadell May Bid for Clydesdale, Williams & Glyn: S. Times
- SAB LN : T : Diageo drifts after merger talk revival, talks oa SAB Merge of Equal - http://on.ft.com/1JVpEcO
- SPM IM : Eni chairman says all options open for Saipem stake,
- SU FP : Schneider Electric seeks buys in Brazil to expand solutions in process automation and energy efficiency, South America president says
- SHP LN : Shire Could Target Radius, Actelion, Ariad Pharma: Sunday Times
- STAN LN : Standard Chartered Said to Plan Cutting 250 Managing Directors --> -2.6% in HK (2888 HK)
- TIT IM :
- TKA GY : ThyssenKrupp’s Kerkhoff Sees EU1b Savings in 2014/15 Year: BZ
- UCG IM : UniCredit Rules Out Capital Increase, CEO Tells Repubblica
- VIV FP : Vivendi Not Interested in Mediaset: De Puyfontaine
- VOW3 GY : Ex-VW Chairman Piech Blocked Winterkorn From Succeeding Him: FAS