TheChek News Flow

Asian Market Update: China Trade surplus, exports miss; Alcoa begins the earnings season

***Economic Data*** - (CN) CHINA DEC TRADE BALANCE: $25.6B V $32.2BE - (AU) AUSTRALIA NOV HIA NEW HOME SALES M/M: +7.5% V -3.8% PRIOR (fastest pace since Jan 2010) - (JP) JAPAN NOV PRELIM LEADING INDEX CI: 110.8 V 110.8E; COINCIDENT INDEX: 110.5 V 110.6E (highest since July 2008) - (JP) JAPAN DEC OFFICIAL RESERVE ASSETS: $1.27T V $1.28T PRIOR (2nd consecutive decline) - (JP) Japan Nov Conference Board Leading Economic Index: 101.1; m/m: +0.3% v +0.5% prior - (JP) Japan investors bought net ¥448.2B in foreign bonds last week vs sold net ¥680.6B in prior week; Foreign Investors bought net ¥68.2B in Japan stocks v bought net ¥838.3B in prior week - (PH) PHILIPPINES NOV EXPORTS Y/Y: 18.9% V 11.5%E; TOTAL MONTHLY EXPORTS: $4.3B V $5.0B PRIOR - (PE) PERU CENTRAL BANK LEAVES REFERENCE RATE UNCHANGED AT 4.00%, AS EXPECTED - (UK) UK DEC BRC SALES LFL Y/Y: 0.4% V 0.8%E (lowest since April) - (US) Weekly Fed Balance Sheet Total Assets Week ending Jan 8th: $4.03T v $4.02T prior; Reserve Bank Credit: $3.986T v $3.980T prior; M1: -$1.8B v +$5.4B prior; M2: -$10.2B v +$23.5B prior

***Observations/Insights*** - China's trade surplus for December came in at $25.6B much less than the $32.2B surplus expected. Growth in exports slowed down from the prior month at 4.3% missing expectations with imports surging to 8.3% ahead of the 5.0% expected, pointing to a slowing momentum in the world's second largest economy. The Hong Kong Hang Seng moved modestly higher following the data while the Shanghai Composite and AUD/USD remained steady.

- The Nikkei225, as well as most of Asia, was trading lower tracking the relatively flat session out of the US with Alcoa trading lower by 4.4% in the aftermarket after it missed its fourth quarter estimates to start off the earnings season. Overall, investors were mainly cautious ahead of the US nonfarm payrolls report out of later today.

***Fixed Income/Commodities/Currencies*** - (JP) BOJ offers to buy ¥110B in JGB with maturity less than 1-yr and ¥200B in JGB with maturity over 10-yr - (CN) China levy coal resource tax based on price; Aims to increase coal transportation capacity by rail to 3B tons in 2020 - Chinese press

***Speakers/Political/In the Papers*** - (CN) China Customs: China is shifting to domestic demand-driven growth; Reliance on foreign trade is declining - (CN) China austerity has made an unexpected impact on its inflation - FT - (CN) China vice Premier calls for new energy vehicle development - China Daily - (CN) China Dec power generation 448.5B kwh, +7.7% y/y - Chinese press - (CN) China Zhejiang Province reports 1 new case of H7N9 bird flu - Chinese press - (CN) China to focus rail construction in central and western regions - Chinese press - (CN) China Association of Automobile Manufacturers (CAAM) official: China estimated to have sold over 17.0K hybrid and electric vehicles in 2013, growth rate possibly reaching 40% - Chinese press

- (JP) Japan Econ Min Amari: Bank of Japan (BOJ) is steadily conducting its policy; policy not aimed at currency rates - (JP) Japan Automobile union to demand wage increase; Japanese Trade Union Confederation (Rengo) expected to request a basic pay increase - Kyodo News - (JP) Sadayuki Sakakibara appointed as next Japan Business Federation (Keidanren) chief - financial press

- (KR) South Korea vice Fin Min Choo: South Korea to act preemptively for market stability if necessary

- (US) Fed's Kocherlakota (dovish, FOMC alternate): Fed could do better by adopting a more accommodative monetary policy stance - (US) Fed's Williams (dove, FOMC non-voter): lays out optimistic view of 2014-2015 growth - IDC: Q4 PC shipments 82.2M units, -5.6% y/y

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -0.3%, S&P/ASX -0.2%, Kospi -0.7%, Shanghai Composite -0.5%, Hang Seng +0.3%, Mar S&P500 +0.1 at 1,834, Feb gold +0.3% at $1,233, Feb crude oil +0.4% at $92.37/brl

US markets: - ANF: Guides FY13 higher to $1.55-1.65 v $1.46e ($1.40-1.50 prior); +13.9% afterhours - GPS: Reports Dec SSS 0.0% v +1.6%e; +2.3% afterhours - HELE: Reports Q3 $1.16 v $1.09e, R$380.7M v $381Me; +1.9% afterhours

- AMGN: CFO Peacock to Leave Amgen; Company Appoints Michael A. Kelly Acting CFO, effective Jan 10th; flat afterhours

- CVX: Issues interim Q4 update: earnings for Q4 are expected to be comparable with Q3 (implies Q4 EPS comparable to $2.57 v $2.88e); -0.5% afterhours - PSMT: Reports Q1 $0.71 v $0.73e, R$605.6M v $611Me; -2.4% afterhours - MTH: Reports prelim Q4 business metrics; home closings +18% y/y; Files to sell 2.2M shares through Citi, DB, JPM and Merrill (6% of shares outstanding); -2.6% afterhours - SNX: Reports Q4 $1.10 v $1.15e, R$3.06B v $2.95Be; -3.2% afterhours - AA: Reports Q4 $0.04 (adj) v $0.06e, R$5.59B v $5.39Be; -4.4% afterhours - SCVL: Guides Q4 $0.03-0.06 v $0.21e, R$203-205M v $218Me; SSS -1%; Guides Jan SSS -4% to flat; -6.7% afterhours - CUDA: Reports Q3 $0.01 v $0.00e, R$59.4M v $57.6Me (only 2 est.); -9.6% afterhours - PRGS: Reports Q4 $0.43 v $0.41e, R$91M v $90.8Me; authorizes $100M share repurchase program (7.5% of market cap); -10.3% afterhours - SHLD: Guides Q4 adj loss $2.01 to $2.98/shr; SSS quarter to date Jan 6th -7.4%; FY EBITDA -$284M to -$414M; -13.1% afterhours - AEGR: Reports prelim 2013 Product Rev $48-49M v $45-50M company guidance; provides 2014 guidance; announces receipt of govt subpoena; -13.2% afterhours - FIVE: Guides Q4 lower $0.44-0.46 v $0.51e ($0.49-0.51 prior), Rev $208-210M v $217Me (prior R$214-217M), SSS -1.5 to -0.5%; -14.0% afterhours

Notable movers by sector: - Consumer discretionary: Hangzhou Robam Appliances 002508.CN +3.3% (FY13 guidance); Fast Retailing 9983.JP +2.1% (Q1 results) - Industrials: Great Wall Motor 2333.HK -0.8% (analyst action) - Financials: Fosun International 656.HK +4.7% (acquires stake in Caixa Seguros); CITIC Securities 6030.HK -1.2% (Dec results); Haitong Securities 6837.HK -3.1% (Dec results); GF Securities 000766.CN -1.4% (prelim FY13 results) - Materials: Baoshan Iron & Steel 600019.CN -1.1% (prelim FY13 result); Tangshan Sanyou Chemical Industries 600409.CN +1.8% (FY13 guidance); Jiangxi Wannianqing Cement 000789.CN +2.6% (FY13 guidance); Mitsubishi Materials 5711.JP -1.6% (halts operations after explosion) - Energy: S-Oil Corp 010950.KR +5.3% (Saudi Aramco to acquire stake) - Healthcare: Kunming Pharmaceutical Corp 600422.CN -7.9% (FY13 guidance)

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BFW 01/10 05:24 *S&P SAYS GERMANY ’AAA/A-1+’ RATINGS AFFIRMED ON STEADY GROWTH BN 01/10 05:23 *S&P: GERMANY 'AAA/A-1+' RATINGS AFFIRMED ON STEADY GROWTH

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Germany’s AAA Rating Affirmed by S&P on Steady Growth 2014-01-10 05:30:57.427 GMT

By Grant Clark Jan. 10 (Bloomberg) -- S&P rates outlook stable on view public finances, strong external balance sheet will continue to withstand potential financial and economic shocks. * Statement: NSN MZ672B3PWT1D <GO> * NOTE: Moody’s lowered outlook for Germany’s Aaa rating to negative in July; Fitch rates Germany AAA

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

--Editor: Grant Clark

To contact the reporter on this story: Grant Clark in Singapore at +65-6212-1101 or gclark@bloomberg.net

After Hours Summary: ANGO +5.1%, GPS +2.7%, FIVE -14.2%, PSUN -14%, AEGR -13.2%, SHLD -13.2% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: ANGO +5.1%, GPS +2.7%, AEHR +2.2%, HELE +1.3%

Companies trading higher in after hours in reaction to news: - IMMU +17.6% (announced initiation of Phase III clinical trial of Clivatuzumab Tetraxetan in patients with pancreatic cancer), - KIN +14.9% (The Baupost Group (Seth Klarman) discloses 17.93% passive stake in 13G filing), - IMUC +12.1% (issued shareholder letter providing update on ICT-107 program in newly diagnosed glioblastoma), - BLDP +10.1% (announced sales agreement with M-Field For Clean Baseload Power Systems), - SNTA +4.8% (announced launch of GANNET53, a randomized, pan-European study of Ganetespib in p53 mutant, metastatic ovarian cancer), - SQNM +3.8% (announced second national coverage agreement for prenatal diagnostic testing services), - PRCP +2.8% (Co's Helix technology selected by premium German automotive manufacturer for new model launch), - NBIX +2.6% (announced 12-Week safety results from initial Phase IIB study of VMAT2 Inhibitor NBI-98854; Shows "excellent safety profile"), AEHR +2.2% (announced new customer order of more than $1 mln for multiple ABTS Burn-in and Test Systems from a European semiconductor manufacturer)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: FIVE -14.2%, PSUN -14%, AEGR -13.2%, SHLD -13.2%, NRP -11.3%, PRGS -10.7%, CERE -10.4%, CUDA -10.3%, EOPN -8.3%, SCVL -5.4%, GUID -4%, AA -3.8%, SNX -3.2%, FNP -2.8%, MTH -2.6%, PSMT -0.6%

Companies trading lower in after hours in reaction to news: - YRCW -14.8% (Teamsters reject extending, modifying current restructuring agreement), WYY -5.6% (filed for $25 mln mixed securities shelf offering), - FNP -2.8% (announced company name change to Kate Spade & Company; Craig Leavitt to succeed William McComb as Chief Executive Officer; George Carrara promoted to President and Chief Operating Officer), - MTH -2.6% (announced public offering of 2.2 mln shares of common stock)

Closing Market Summary: Stocks End Little Changed The major averages ended today's choppy session on a mixed note. The S&P 500 added less than a point while the Dow Jones Industrial Average (-0.1%) and Nasdaq (-0.2%) posted modest losses. Equities displayed early strength, but sellers were quick to knock the indices off their opening highs. The Nasdaq outperformed out of the gate, but ultimately led the broader market into the red. Despite the late-morning weakness, the S&P 500 was able to find support at Wednesday's low where dip buyers stepped up and helped the index return to its flat line.

Individual sectors ended with an even split as five groups posted gains while the other five ended lower. The early weakness took place as consumer discretionary (-0.1%) and technology (-0.6%) sectors slumped. The discretionary space was able to recover nearly all of its losses by the close but retailers were less fortunate. The SPDR S&P Retail ETF (XRT 85.81, -0.68) lost 0.8% after Bed Bath & Beyond (BBBY 69.75,-9.93) and Family Dollar (FDO 64.97, -1.37) reported disappointing earnings. One retailer, Macy's (M 55.80, +3.96), stood out with a 7.6% gain after boosting its guidance and announcing plans to close five stores and lay off 2,500 employees. Elsewhere, the technology sector was pressured by several top components as Apple (AAPL 536.52, -6.94), Cisco Systems (CSCO 22.09, -0.20), and Google (GOOG 1130.24, -10.99) lost between 0.9% and 1.3%. Other cyclical sectors were mixed as energy (-0.4%) and materials (-0.4%) lagged while financials (+0.3%) and industrials (+0.4%) outperformed. Notably, the industrial sector was underpinned by airlines after United Continental (UAL 43.80, +2.78) reported a 4.1% increase in December traffic. The stock spiked 6.8% while the broader Dow Jones Transportation Average advanced 1.0%.

Over on the countercyclical side, consumer staples (+0.4%), health care (+0.7%), and utilities (+0.6%) outperformed while telecom services (-1.9%) endured another rough session. The rate-sensitive sector widened its January loss to 3.8%. Speaking of rates, they ended on their lows. The benchmark 10-yr yield fell three basis points to 2.97%. Participation was on the light side as only 683 million shares changed hands on the floor of the New York Stock Exchange. Today's economic data was limited to just two reports.

o The weekly initial claims level fell to 330,000 from an upwardly revised 345,000 (from 339,000) while the consensus expected the claims level to fall to 338,000. The Labor Department stressed that the. post-holiday period tends to be volatile as businesses dismiss their temporary work staff. Once the volatility is gone, we expect the initial claims level to stabilize at roughly its current level of 330,000. Normal volatility, however, could last another week or two. No states were estimated and the drop in claims was not attributed to the winter storm activity that began at the end of last week.

Any effects of the storm will likely occur over the next week or two. o The December Challenger Job Cuts report pointed to a 6.0% decline in planned job cuts. o Tomorrow's data will also focus on jobs with December nonfarm payrolls set to be reported at 8:30 ET. Separately, the November Wholesale Inventories Report will be released at 10:00 ET.

o Russell 2000 -0.4% YTD o Nasdaq -0.5% YTD o S&P 500 -0.6% YTD o DJIA -0.8% YTD