BNP analyst: Expects ECB to cut deposit and refi rates by 10bps at next Sept 4th meeting
Apple is working with Dutch chipmaker NXP to add secure short-range wireless technology into the next iPhone, enabling new pay-by-touch capabilities in the latest bid for the smartphone to replace the wallet.
Several people familiar with Apple’s plans say NXP will provide the secure near-field communications chips that will allow an iPhone to connect with payment terminals or ticketing systems, as well as opening up the possibility for other applications in the “internet of things”.
NFC technology allows a smartphone to communicate wirelessly with other devices by tapping them together.
On Thursday, Apple announced its plans for a product launch event on September 9 at which it is expected to unveil new iPhones. Apple and NXP both declined to comment on whether the new devices would contain the Dutch company’s NFC technology.
Analysts say Apple could galvanise a smartphone payments market that has struggled to take off, even though tap-to-pay technology has been built into mobile devices for eight years. Thanks to iTunes and the App Store, Apple already holds credit card details for some 800m customers, giving it a potential advantage over the many earlier attempts at mobile payments. It has been recruiting executives with experience in mobile payments for the last several months in both Europe and the US.
Nokia introduced the first NFC phone in 2006, while several smartphones from the likes of Samsung Electronics and LG Electronics have included the technology since 2011. NXP also supplies NFC chips for some of Samsung’s flagship Galaxy phones.
So far the iPhone has been a holdout, leaving only half of US smartphones equipped with NFC today, according to Jackdaw Research.
Google, whose Android operating system powers Samsung’s Galaxy smartphones, tried to kickstart the market for NFC-based payments in 2011 with its Wallet app, allowing customers to transact through dedicated terminals at US stores and restaurants.
But while NFC phones have become popular in some markets such as Japan, where they are widely used to make payments on public transport, the plastic credit card has so far remained stubbornly resistant to technological disruption.
Adoption of Google Wallet in the US remains limited and other efforts to persuade customers to use their smartphones for payments, such as Square’s Wallet app, Paypal and telecoms joint-venture Isis also remain at an early stage.
If Apple entered the market, “millions of consumers in the US would suddenly have a tightly integrated solution built into their devices,” said Jackdaw analyst Jan Dawson in a blogpost this week, although it would “still suffer – at least at first – from the same problem of a lack of terminals which could accept payments”.
In parts of Europe and China, NFC-based credit cards are already used to pay for low-cost items such as sandwiches but the technology has been slower to catch on in the US. Apple’s arrival may come at an opportune moment, as US retailers prepare to upgrade their cashier terminals.
Visa and Mastercard have set a deadline of October 2015 to switch from swipe-and-sign credit card payments to European-style chip-and-PIN terminals, many of which could also include NFC capabilities. Apple’s own retail stores already use handheld terminals equipped with NFC.
In 2012, Apple was granted a significant patent for a sophisticated mobile payments system involving NFC. The patent submission suggested that iTunes could be used to manage credit card statements. The company has made several subsequent patent applications for components of a mobile payment system, some working in conjunction with iBeacon, its Bluetooth-based location-sensing technology.
NXP is already a supplier to Apple in other areas. Its stock rose 2 per cent on Thursday after technology magazine Wired reported Apple’s plans for NFC, even without naming NXP as a supplier. Its market valuation on Nasdaq has increased by more than 50 per cent so far this year and now stands at almost $17bn.
--> watch UK utilities...EDF Too
BN 08/29 06:08 *OFWAT SAYS FINAL DECISIONS WILL BE PUBLISHED IN DEC
BN 08/29 06:08 *OFWAT SAYS THERE IS NOW PERIOD OF CONSULTATION
BN 08/29 06:08 *OFWAT: THESE ARE DRAFT DECISIONS, THINGS COULD STILL CHANGE
BN 08/29 06:07 *OFWAT: BILLS REDUCTION BY AROUND 5% IN REAL TERMS B/W '15-'20
BN 08/29 06:06 *OFWAT DRAFT PROPOSALS MEAN AVG BILLS WOULD FALL BY AROUND 5%
BN 08/29 06:06 *OFWAT CHANGED APPROACH TO SETTING PRICES
BN 08/29 06:06 *OFWAT DRAFT DECISIONS KEEP BILLS DOWN
BN 08/29 06:02 *WATER SERVICES AUTH OFWAT DRAFT DECISIONS KEEP BILLS DOWN
BN 08/29 06:08 *OFWAT SAYS THERE IS NOW PERIOD OF CONSULTATION
BN 08/29 06:08 *OFWAT: THESE ARE DRAFT DECISIONS, THINGS COULD STILL CHANGE
BN 08/29 06:07 *OFWAT: BILLS REDUCTION BY AROUND 5% IN REAL TERMS B/W '15-'20
BN 08/29 06:06 *OFWAT DRAFT PROPOSALS MEAN AVG BILLS WOULD FALL BY AROUND 5%
BN 08/29 06:06 *OFWAT CHANGED APPROACH TO SETTING PRICES
BN 08/29 06:06 *OFWAT DRAFT DECISIONS KEEP BILLS DOWN
BN 08/29 06:02 *WATER SERVICES AUTH OFWAT DRAFT DECISIONS KEEP BILLS DOWN
U.K. Ofwat Draft Proposals Mean Avg Bills Would Fall ~5% ’15-’20
2014-08-29 06:14:15.638 GMT
By Nadine Skoczylas
Aug. 29 (Bloomberg) -- U.K. regulator Ofwat published draft
proposals for price review process covering 2015-2020 period
today for water cos. including Severn Trent, United Utilities.
* Allows for avg. bills for water, wastewater customers to
fall by ~5% in real terms
* Period of consultation will follow with final decisions
published in Dec.
* See preview here
Statement
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Nadine Skoczylas in Jerusalem at +972-2-640-1103 or
nelsibai@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Nadine Skoczylas
2014-08-29 06:14:15.638 GMT
By Nadine Skoczylas
Aug. 29 (Bloomberg) -- U.K. regulator Ofwat published draft
proposals for price review process covering 2015-2020 period
today for water cos. including Severn Trent, United Utilities.
* Allows for avg. bills for water, wastewater customers to
fall by ~5% in real terms
* Period of consultation will follow with final decisions
published in Dec.
* See preview here
Statement
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Nadine Skoczylas in Jerusalem at +972-2-640-1103 or
nelsibai@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Nadine Skoczylas
BardarBunga...sounds familiar for Mr Berlusconi
Iceland Increases Aviation Alert to Red After Fissure Eruption
2014-08-29 05:29:18.329 GMT
By Jonas Bergman
Aug. 29 (Bloomberg) -- Iceland raised its alert for
airlines to the highest level after detecting a fissure eruption
north of the Bardarbunga volcano.
The Icelandic Met Office increased the aviation alert over
the eruption site to red and air traffic control has closed
airspace up to 18,000 feet, the Civil Protection Agency said in
a statement. A fissure eruption started in the northern part of
Holuhraun lava, between Dyngjujokull Glacier and the Askja
caldera, north of Vatnajokull glacier. The fissure is 300 meters
(984 feet) long and no volcanic ash has been detected, it said.
“Seismic eruption tremor is low indicating effusive
eruption without significant explosive activity,” the Civil
Protection Agency said.
Iceland is on alert after the Bardarbunga volcano, one of
its largest, started rumbling two weeks ago. Magma has spread to
form a dike under the Dyngjujokull glacier, north of the
volcano. Bardarbunga, which lies underneath Vatnajokull,
Europe’s largest glacier, has been rocked by earthquakes that
led to evacuations and road closures.
Airlines are on alert amid concern they may face a repeat
of 2010 when the Eyjafjallajokull spewed a column of ash 9
kilometers (5.6 miles) into the air. That eruption shut airspace
across western Europe for six days, forcing carriers to cancel
more than 100,000 flights. Ash is a danger to jets because the
glass-like particles can damage engines.
The magma underneath Vatnajokull had been migrating
northwards in a dike which extends beyond the borders of the
glacier. An eruption there “would most likely produce an
effusive lava eruption with limited explosive, ash-producing
activity,” the Met Office said earlier.
For Related News and Information:
Iceland Government Monitor: SOVM IS <GO>
Icelandic Indicator Calendar: ECO IC <GO>
Economic News from Iceland: TNI ICE ECO <GO>
News on the Credit Crunch: NI CRUNCH <GO>
Top Nordic News: TOP NORD <GO>
Top Stories: TOP <GO>
To contact the reporter on this story:
Jonas Bergman in Oslo at +47-22-00-8213 or
jbergman@bloomberg.net
To contact the editors responsible for this story:
Tasneem Hanfi Brogger at +45-33-457-130 or
tbrogger@bloomberg.net
Alastair Reed, Kim McLaughlin
2014-08-29 05:29:18.329 GMT
By Jonas Bergman
Aug. 29 (Bloomberg) -- Iceland raised its alert for
airlines to the highest level after detecting a fissure eruption
north of the Bardarbunga volcano.
The Icelandic Met Office increased the aviation alert over
the eruption site to red and air traffic control has closed
airspace up to 18,000 feet, the Civil Protection Agency said in
a statement. A fissure eruption started in the northern part of
Holuhraun lava, between Dyngjujokull Glacier and the Askja
caldera, north of Vatnajokull glacier. The fissure is 300 meters
(984 feet) long and no volcanic ash has been detected, it said.
“Seismic eruption tremor is low indicating effusive
eruption without significant explosive activity,” the Civil
Protection Agency said.
Iceland is on alert after the Bardarbunga volcano, one of
its largest, started rumbling two weeks ago. Magma has spread to
form a dike under the Dyngjujokull glacier, north of the
volcano. Bardarbunga, which lies underneath Vatnajokull,
Europe’s largest glacier, has been rocked by earthquakes that
led to evacuations and road closures.
Airlines are on alert amid concern they may face a repeat
of 2010 when the Eyjafjallajokull spewed a column of ash 9
kilometers (5.6 miles) into the air. That eruption shut airspace
across western Europe for six days, forcing carriers to cancel
more than 100,000 flights. Ash is a danger to jets because the
glass-like particles can damage engines.
The magma underneath Vatnajokull had been migrating
northwards in a dike which extends beyond the borders of the
glacier. An eruption there “would most likely produce an
effusive lava eruption with limited explosive, ash-producing
activity,” the Met Office said earlier.
For Related News and Information:
Iceland Government Monitor: SOVM IS <GO>
Icelandic Indicator Calendar: ECO IC <GO>
Economic News from Iceland: TNI ICE ECO <GO>
News on the Credit Crunch: NI CRUNCH <GO>
Top Nordic News: TOP NORD <GO>
Top Stories: TOP <GO>
To contact the reporter on this story:
Jonas Bergman in Oslo at +47-22-00-8213 or
jbergman@bloomberg.net
To contact the editors responsible for this story:
Tasneem Hanfi Brogger at +45-33-457-130 or
tbrogger@bloomberg.net
Alastair Reed, Kim McLaughlin
Afren 1H Pretax Profit $133m; Working Interest Output 33.5kbbl/d
2014-08-29 06:15:47.833 GMT
By Benjamin Dow
Aug. 29 (Bloomberg) -- 1H pretax falls vs $260m year ago;
normalized pretax profit $127m vs $309m year ago.
* Production down vs 44.7kbbl/d mainly due to reduced share of
liftings from Ebok field after completion of cost recovery
* 1H revenue $565m falls vs $797m y/y; oper. cash flow $354m
down vs $564m year ago
* No misstatements yet identified as part of investigation;
existing carrying values of relevant assets unimpaired
* Barda Rash suspended operations not expected to have
significant impact on cash flow
* 3 producing wells to be brought on line at Ebok in 2H;
exploration well to begin drilling in 4Q, targeting 50mbbl
of oil gross mean resources
* Webcast 9:00am U.K.
* NOTE: Co. fell 10% yesterday; co. said it suspended 2 assoc.
directors from board
Link to statement:NSN NB20R43HBS3K<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Benjamin Dow in Moscow at +7-495-771-7735 or
bdow2@bloomberg.net
Benjamin Dow
2014-08-29 06:15:47.833 GMT
By Benjamin Dow
Aug. 29 (Bloomberg) -- 1H pretax falls vs $260m year ago;
normalized pretax profit $127m vs $309m year ago.
* Production down vs 44.7kbbl/d mainly due to reduced share of
liftings from Ebok field after completion of cost recovery
* 1H revenue $565m falls vs $797m y/y; oper. cash flow $354m
down vs $564m year ago
* No misstatements yet identified as part of investigation;
existing carrying values of relevant assets unimpaired
* Barda Rash suspended operations not expected to have
significant impact on cash flow
* 3 producing wells to be brought on line at Ebok in 2H;
exploration well to begin drilling in 4Q, targeting 50mbbl
of oil gross mean resources
* Webcast 9:00am U.K.
* NOTE: Co. fell 10% yesterday; co. said it suspended 2 assoc.
directors from board
Link to statement:NSN NB20R43HBS3K<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Benjamin Dow in Moscow at +7-495-771-7735 or
bdow2@bloomberg.net
Benjamin Dow
*TESCO LOWERS FY PROFIT FORECAST, CUTS INTERIM DIVIDEND 75%
*TESCO SAYS DAVE LEWIS WILL NOW JOIN AS CHIEF EXEC ON 1 SEPT.
*TESCO CUTS CAPEX SPENDING IN 2014, ESPECIALLY IN STORE REFRESH
US Market closed lower, the ukraine/russia situation continue to weight on mkt, comments from politics push to a "flight to safety", All ten sectors displayed losses at the start, but materials (+0.04%), telecom services (unch) and utilities (+0.7%) were able to recover before the close, only financials (-0.4%) and industrials (-0.3%) settled behind the broader market, volume were lows @ 479mil shares...VIX @ 12.08 +2,55%...After hours :
UEPS +21.6%, VEEV +15.6%, SPLK +10.1%, PSUN -4.4%, ZOES -1.8% following earnings/guidance...Japan, Asian stocks were trading weaker on renewed Ukrainian tensions, Japanese household spending in July fell more than expected, declining for the fourth consecutive month, while industrial production remained weak after plunging last month, Japan headline and core inflation data for July came in as expected. CPI for Tokyo, considered a leading indicator, was up 2.8% beating forecast of 2.7% and unchanged from the prior month's reading, Japanese unemployment rate for July came in at a seasonally adjusted reading of 3.8% missing the expected reading of 3.7% expected, Retail sales in Japan were up 0.5% on year beating forecasts of 0.2%. The components indicated sales from large retailers were down 0.6%, while commercial sales were up 0.1% on year...Nikkei -0.16% Hang Seng -0.15% Shanghai +0.35% Eur$ 1.3180 S&P +0.08% EuroStoxx +0.35% FTSE -0.01% DAX +0.41% SMI +0.30%
Macro
- ECB’s Nowotny: Austerity Measures Shouldn’t Exacerbate Downturn
- Coeure Says Greece Only Halfway Through Its Needed Reforms
- Chinese Buying 5% of Newly Built Homes in London: Knight Frank {NSN NB1RXJ6S972E <go>}
- Obama Says No Strategy Yet for Striking Islamic State in Syria
Keep an eye on :
- BANI BB : Banimmo Sees 2014 Loss on City Mall, Has Deal to Sell Bagatelle
- BES PL : CMVM Extends Suspension on Trading of Certain BES Instruments
- BNP FP : BNP Paribas Fortis 1H Net Rises 6% to EU654m
- BOSS GY :There is speculation that the firm could eventually join the DAX
- BTG GY : Bertelsmann 1H Sales Rise 7%; Profit Declines 39%
- CA FP : Carrefour Brazil rules out private stake sale, still aiming for IPO - Valor Economico
- CMBN SW : Cembra 1H Net Drops 26%, Says Finma Probe to End in 4Q
- CPR PL : Cimpor 2Q Net EU10.6m vs Loss EU131m Y/y
- CRI FP : Chargeurs Says Sales, Current Operating Profit to Rise in 2014
- DIE BB : D’Ieteren Keeps Forecast After 1H Pretax Profit Misses Ests.
- DTE GY : Deutsche Telekom Said Open to Talks on T-Mobile at $35/Shr (TMUS +1,36% @ $29,84)
- RDL SW : Edmond de Rothschild 1H Assets Under Management Gain 1%
- ELI BB : Elia 1H Net Rises to EU94.5m on 50Hertz Transmission Profit Jump
- FER IM : Ferragamo 1H Rev EU659m; Est EU657.2m
- F IM : Fiat Says EU500m Limit Not Exceeded on Holder Rights Option
- HER FP : Hermes 1H Oper. Profit Beats, Keeps Mid-Term Rev. Growth Target
- IPN FP : Ipsen 2Q Sales Rise, Raises 2014 Forecast
- MMB FP : Lagardere Wants to Sell Matra Scooter Unit, Les Echos Says
- EGL PL : Mota-Engil 1H Net Rises 50% to EU31.08m Y/y on Foreign Projects
- OME BB : Omega Pharma Said to Attract Interest From Perrigo to Boehringer
- PUBN SW : PubliGroupe Posts 1H Loss, Sees Swisscom Offer Completed Sept. 5
- REA BB : RealDolmen Cuts Forecast for Services Rev.; 1Q Sales Rise 6.1%
- REC SS : Recticel 1H Adj. Combined Ebitda EU38.8m; Est. EU39.1m
- REP SM : Repsol Said to Drop Plan to Buy All of Talisman Energy
- SAABB SS : Sweden Approves Purchase of 60 Gripen Jet Fighters, SVT Reports
- SAB LN : SABMiller Concludes Sale of All Interest in Tsogo Sun
- SIOE BB : Sioen Industries 1H Net EU9.1m; Est. EU8.7m; Sales Rise 3.1%
- SO FP : Somfy 1H Net EU54.8m vs EU62.3m Y/y
- STR AV : Strabag 2Q Sales, Net Rise 1%; Sees Challenging Environment
- TEF SM : Telefonica Identifies GVT Deal Synergies of At Least EU4.7B NPV
- TIT IM : Telecom Italia to Keep Looking at Industrial Projects: Ben Ammar
- TIT IM : Telecom Italia Says Continues Brazil Development Plan
- UBI FP : Ubisoft Delays ’Assassin’s Creed Unity’ Release by 2 Weeks
- VIV FP : Vivendi, Telefonica Still to Work on Details of Content Pact
- VIV FP : sees acquiring 8% telecom italia shares as attractive
>>> Up
*CRH RAISED TO BUY VS NEUTRAL AT GOLDMAN
*HSBC RAISED TO BUY VS NEUTRAL AT UBS, PT HK$91.50
*KAZAKHMYS RAISED TO BUY VS NEUTRAL AT UBS
>>> Down
*ACS CUT TO SELL VS NEUTRAL AT GOLDMAN
*AFREN CUT TO NEUTRAL VS BUY AT CITI
*CSR CUT TO HOLD FROM BUY AT LIBERUM
*SALAMANDER ENERGY CUT TO OUTPERFORM VS TOP PICK AT FIRSTENERGY
>>> PT change
*CFE PT RAISED TO EU100 FROM EU81.50 AT ING
>>> Initiation
*SOLVAY RATED NEW UNDERPERFORM AT BERNSTEIN, PT EU98
>>> call
Asian Market Update: Japanese, Asian stocks weaker on economic data, geopolitical concerns
***Economic Data***
- (KR) SOUTH KOREA SEPT MANUFACTURING BUSINESS SURVEY: 74 V 75 PRIOR; BUSINESS SURVEY NON-MANUFACTURING: 72 V 66 PRIOR
- (NZ) NEW ZEALAND JULY BUILDING PERMITS M/M: 0.1% V 1.0%E
- (KR) SOUTH KOREA JULY CYCLICAL LEADING INDEX CHANGE: 0.1 V 0.2 PRIOR
- (KR) SOUTH KOREA JULY INDUSTRIAL PRODUCTION M/M: 1.1% V 0.3%E; Y/Y: 3.4% V 2.3%E
- (UK) UK AUG HOMETRACK HOUSING SURVEY M/M: 0.1% V 0.1% PRIOR; Y/Y: 5.5% V 5.8% PRIOR
- (UK) UK AUG GFK CONSUMER CONFIDENCE: +1 V -1E
- (JP) JAPAN JULY NATIONAL CPI Y/Y: 3.4% V 3.4%E; CPI EX FRESH FOOD Y/Y: 3.3% V 3.3%E
- (JP) JAPAN AUG TOKYO CPI Y/Y: 2.8% V 2.7%E; CPI EX FRESH FOOD Y/Y: 2.7% V 2.7%E
- (JP) JAPAN JULY JOBLESS RATE: 3.8% V 3.7%E; JOB-TO-APPLICANT RATIO: 1.10 V 1.10E
- (JP) JAPAN JUL OVERALL HOUSEHOLD SPENDING Y/Y: -5.9% V -2.9%E; (4th consecutive decline)
- (JP) JAPAN JUL PRELIMINARY INDUSTRIAL PRODUCTION M/M: 0.2% V 1.0%E; Y/Y: -0.9% V -0.1%E
- (JP) JAPAN JULY RETAIL SALES M/M: -0.5% V 0.3%E; RETAIL TRADE Y/Y: 0.5% V -0.2%E (first rise since April sales tax increase)
- (JP) JAPAN JULY LOANS & DISCOUNT CORP: 2.0% V 2.3% PRIOR
- (NZ) NEW ZEALAND AUG ANZ ACTIVITY OUTLOOK: 36.6 V 45.1 PRIOR (6th consecutive decline, lowest since 2012); ANZ BUSINESS CONFIDENCE: 24.4 V 39.7 PRIOR
- (AU) AUSTRALIA JULY PRIVATE SECTOR CREDIT M/M: 0.4% V 0.5%E; Y/Y: 5.1% V 5.1%E
- (SG) SINGAPORE JULY MONEY SUPPLY M1 Y/Y: +2.2% V -0.8% PRIOR; M2 Y/Y: 1.7% V 0.6% PRIOR
- (SG) SINGAPORE JULY BANK LOANS AND ADVANCES Y/Y: 10.8% V 12.3% PRIOR
- (SG) SINGAPORE JULY CREDIT CARD BAD DEBTS: 23.7M V 22.7M PRIOR; CREDIT CARD BILLINGS: 3.7B V 3.7B PRIOR
- (NZ) NEW ZEALAND JULY M3 MONEY SUPPLY Y/Y: 5.3% V 5.4% PRIOR
- (TH) Thailand July manufacturing production y/y: -5.2% v -3.0%e
***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 -0.7%, S&P/ASX flat, Kospi -0.4%, Shanghai Composite +0.2%, Hang Seng -0.4%, Sept S&P500 0.1% at 1,997
***Commodities/Fixed Income/Currencies***
- Dec gold -0.1% at $1,289, Oct crude oil +0.1% at $94.63/brl, Sept Copper +0.2% at $3.13/lb
- (JP) BOJ offers to buy ¥300B in 1-3yr JGB, ¥200B in 3-5yr JGB, ¥140B in floating rate notes as well as ¥1.8T in T-bills
- (AU) Australia MoF (AOFM) sells A$600M in 3.25% bonds due 2018; Avg yield: 2.7961%; Bid-to-cover: 5.01x
***Market Focal Points/Key Themes***
- Japan, Asian stocks were trading weaker on renewed Ukrainian tensions. Ukrainian President Poroshenko, and later the US, accused Russia of troops entering into Ukraine in support of pro-Russian rebels. Tougher sanctions are expected on Russia. Ukraine will hold an emergency meeting with NATO on Friday.
- Japanese household spending in July fell more than expected, declining for the fourth consecutive month, while industrial production remained weak after plunging last month. The m/m preliminary reading of 0.2% came in less than the expected 1.0%, though it was the first rise in two months; y/y also came in less than expected at -0.9% v -0.1%e. The spending and production data suggests soft exports and the hike in sales tax may drag on the economy longer than expected. The government maintained its assessment of output, adding that industrial production has weakened. The industries that mainly contributed to the increase were business machinery, textiles and petroleum.
- Japan headline and core inflation data for July came in as expected. CPI for Tokyo, considered a leading indicator, was up 2.8% beating forecast of 2.7% and unchanged from the prior month's reading.
- Also the Japanese unemployment rate for July came in at a seasonally adjusted reading of 3.8% missing the expected reading of 3.7% expected.
- Retail sales in Japan were up 0.5% on year beating forecasts of 0.2%. The components indicated sales from large retailers were down 0.6%, while commercial sales were up 0.1% on year. On a monthly seasonally adjusted basis, retail sales fell 0.5% coming lower than the forecast of +0.3%.
- NZD/USD traded lower by 20pips following New Zealand's July Building Permit monthly data at +0.1% below the forecasted +1.0%.
- New Zealand's ANZ Business Outlook showed 24% of businesses are optimistic regarding the overall outlook, down from the prior reading of 39%, and down 46 ppt from the peak in February. The Activity Outlook of 36.6 marked the sixth consecutive decline. The ANZ did comment that the level of confidence is still consistent with solid momentum and growth. The economy has semblances of Goldilocks; good growth and low inflation is a powerful mix.
***Equities***
US markets:
- VEEV: Reports Q2 $0.07 v $0.07e, R$75.7M v $69.6Me; Raises FY14 guidance; +13.4% afterhours
- SPLK: Reports Q2 +$0.01 v -$0.02e, R$101.5M v $93.9Me; +9.2% afterhours
- FRED: Reports Q2 -$0.19 v -$0.18e, R$491.2M v $491Me; +2.9% afterhours
- AVGO: Reports Q3 $1.26 v $1.06e, R$1.27B v $1.33Be; +2.2% afterhours
- OVTI: Reports Q1 $0.91 v $0.53e, R$406.5M v $384Me; +2.2% afterhours
- GOOGL: Said to be looking into the use of drones for delivery of goods - financial press; +0.3% afterhours
- JNJ: Reportedly seeking to sell its Cordis medical device unit worth around $2B - financial press; flat afterhours
- ZOES: Reports Q2 $0.04 v $0.02e, R$41.9M v $40.7Me; -1.7% afterhours
- TSLA: To cooperation with China Unicom; to build super-charging stations in 20 cities, 400 charging posts in 120 cities in 2 years - Chinese press
Notable movers by sector:
- Consumer Discretionary: Park24 4666.JP +1.9% (9-month results); Harvey Norman HVN.AU +5.8% (FY14 results)
- Consumer staples: Woolworths WOW.AU -1.3% (FY14 results)
- Materials: Silver Lake Resources SLR.AU +2.4% (FY14 results)
- Energy: Shunfeng Photovoltaic International 1165.HK -1.0% (H1 results); GCL-Poly 3800.HK +3.7% (H1 results); CNOOC 883.HK +2.4% (H1 results)
- Industrials: Virgin Australia VAH.AU +0.6% (FY14 results); Transfield Services TSE.AU +23.6% (FY14 results)
- Technology: Sharp Corp 6753.JP +1.2%, Pioneer Corp 6773.JP -3.1% (Sharp to sell stake in Pioneer)
- Healthcare: Unilife Corp UNS.AU +4.5% (FY14 results); GI Dynamics GID.AU +8.3% (names new CEO)
Closing Market Summary: Stocks Register Slim Losses Amid Anemic Volume
The stock market ended the Thursday session on a modestly lower note, but a late-morning rebound lifted the indices off their lows. The S&P 500 shed 0.2% with seven sectors ending in the red.
This morning, European equities and U.S. futures slumped around 6:00 ET after Ukraine's President Petro Poroshenko was quoted as saying Russian forces have invaded an area southeast of Donetsk. The news pressured the markets, but a brief uptick took place after a correction to reports indicated Ukraine's President did not use the word "invade," but rather said Russian troops "entered" Ukraine. The change in wording did not change the fact that Russian troops are reportedly on Ukraine's soil, which caused a flight to safety. As a result, Germany's 10-yr Bunds rallied, dropping the yield to a new record low of 0.87% before a slight rebound to 0.89%. Gold futures were also in demand with the metal climbing 0.7% to $1291.70/ozt.
Similarly, U.S. Treasuries saw demand in the morning, but the 10-yr note surrendered a portion of its gain as the session wore on. The 10-yr note added five ticks to send its yield lower by two basis points to 2.34%.
All ten sectors displayed losses at the start, but materials (+0.04%), telecom services (unch) and utilities (+0.7%) were able to recover before the close. The materials sector benefitted from strength among miners with Market Vectors Gold Miners ETF (GDX 26.46, +0.35) gaining 1.3%.
Meanwhile, the remaining sectors ended in the red, but only financials (-0.4%) and industrials (-0.3%) settled behind the broader market. Even though the financial sector underperformed, today's loss narrowed its August gain to 3.5% versus a 3.4% advance for the S&P 500. Bank of America (BAC 16.01, -0.19) was the weakest performer among the majors, sliding 1.2%.
Elsewhere, the top-weighted sector—technology (-0.2%)—was pressured by influential components like Facebook (FB 73.86, -0.77), Google (GOOGL 580.32, -2.68), and Oracle (ORCL 41.27, -0.37), while the largest sector member—Apple (AAPL 102.25, +0.12)—posted a modest gain. Chipmakers also displayed strength with the PHLX Semiconductor Index climbing 0.3%.
Once again, participation in today's affair was well below average with just 479 million shares changing hands at the NYSE floor, which undercut Monday's total for the lowest tally of the year. The lack of activity reflected the preference to stick to the sidelines ahead of a three-day weekend that could bring new developments on the geopolitical front.
Economic data included the second revision to Q2 GDP, Initial Claims, and the Pending Home Sales report:Tomorrow, Personal Income/Spending Data and Core PCE Prices for July will be reported at 8:30 ET, while the Chicago PMI for August (consensus 54.8) will cross the wires at 9:45 ET. The day's data will be topped off with the 9:55 ET release of the final reading of the Michigan Sentiment Survey for August (expected 80.0).
- Second quarter GDP was revised up to 4.2% in the second estimate from 4.0% in the advance estimate, while the consensus expected no revisions
- Most notably, real final sales grew at a much faster rate in the second quarter (2.8%) than what was originally reported (2.3%)
- Personal consumption spending was left unrevised at 2.5%
- The initial claims level fell to 298,000 from an upwardly revised 299,000 (from 298,000), while the consensus pegged the claims level at 302,000
- Pending home sales for July rose 3.3%, which was better than the 0.5% increase forecast by the consensus
- The reading followed last month's revised decrease of 1.3% (from -1.1%)
- Nasdaq Composite +9.1% YTD
- S&P 500 +8.0% YTD
- Dow Jones Industrial Average +3.0% YTD
- Russell 2000 +0.3% YTD