Closing Market Summary: Positive Week Ends on a Down NoteStocks ended the week on a down note, giving back a small portion of their weekly gains. Losses were modest, however, with the S&P 500 (-0.1%) and the Dow (unch) settling just a tick below their unchanged marks. The tech-heavy Nasdaq (+0.1%) eked out a small victory, settling at yet another record high. For the week, the S&P 500 added 1.2%.
The market took the September jobs report with a grain of salt due to the effects of Hurricane Harvey and Hurricane Irma. The report showed that employment in food services and drinking places declined by 105,000--taking a toll on the nonfarm payrolls figure, which decreased by 33,000 (consensus +75K).
Average hourly earnings, which have been slow to pick up despite a tightening of the labor market, soundly beat expectations though, showing an increase of 0.5% (consensus +0.2%). This figure was also likely affected by the hurricanes, but that didn't stop the market from adjusting its rate-hike expectations.
The CME FedWatch Tool currently places the chances of a December rate hike at 93.1%, up from 77.5% on Thursday.
U.S. Treasuries ended the session in negative territory, with shorter-dated issues showing relative weakness; the yield on the 2-yr Treasury note jumped four basis points to 1.53% while the benchmark 10-yr yield climbed two basis points to 2.37%. The U.S. Dollar Index slipped 0.1% to 93.64.
Most of the S&P 500's eleven sectors finished in the red, but some of the heaviest spaces by weight--including technology (+0.3%), financials (unch), and consumer discretionary (+0.2%)--put together relatively solid performances, helping keep the broader market's loss in check.
The tech group climbed 0.3%, thanks in large part to mega-cap names like Facebook (FB 172.23, +0.99) and Alphabet (GOOGL 993.64, +8.45), which added 0.6% and 0.9%, respectively. Chipmakers were also strong on Friday, sending the PHLX Semiconductor Index higher by 0.5%.
Meanwhile, influential names like Amazon (AMZN 989.58, +8.73), Netflix (NFLX 198.02, +3.63), and McDonald's (MCD 159.60, +0.80) helped carry the consumer discretionary space (+0.2%) to victory, settling with gains between 0.5% and 1.9%. NFLX shares had a solid week, adding 9.2%.
On the flip side, the consumer staples space (-1.0%) underperformed with retail heavyweight Costco (COST 157.09, -9.98) dropping 6.0%, despite beating both top and bottom line estimates. Retail pharmacy names also tumbled after Morgan Stanley downgraded Walgreens Boot Alliance (WBA 73.20, -3.75) to 'Equal-Weight' from 'Overweight'; WBA shares lost 4.9%.
The energy sector (-0.8%) also struggled as the price of WTI crude dropped 2.9% to $49.33/bbl amid concerns of Tropical Storm Nate's potential impact on refineries around the Gulf of Mexico. Tropical Storm Nate is projected to hit the Gulf Coast this weekend as a hurricane.
Reviewing Friday's economic data, which included the September Employment Situation Report, the August Wholesale Inventories Report, and the August Consumer Credit Report:
- September Employment Situation
- September nonfarm payrolls decreased by 33,000 while the consensus expected an increase of 75,000. The prior month's increase was revised to 169,000 from 156,000.
- Nonfarm private payrolls declined by 40,000 while the consensus expected an increase of 98,000. The previous month's increase was revised to 164,000 from 165,000.
- Average hourly earnings increased 0.5% (consensus +0.2%), while the previous month's reading was revised to +0.2% (from +0.1%).
- The average workweek was reported at 34.4 (consensus 34.3). The previous month's reading was left unrevised at 34.4.
- The unemployment rate fell to 4.2% (consensus 4.4%) from 4.4% in the previous month.
- The hurricane-related noise of the September employment resonated in the headline payroll numbers, yet the most important takeaway from the report is that wage growth picked up nicely in September and should solidify the case for another rate hike in December.
- August Wholesale Inventories
- August Wholesale Inventories increased 0.9% (consensus +1.0%). The prior month's reading was left unrevised at +0.6%.
- The key takeaway from the report is that the inventory build will be a positive component for Q3 GDP growth forecasts.
- August Consumer Credit
- The Consumer Credit report for August showed an increase of $13.1 billion while the consensus expected growth of $16.0 billion. The prior month's credit growth was revised to $17.7 billion from $18.5 billion.
Investors will not receive any economic data on Monday.
- Nasdaq Composite +22.4% YTD
- Dow Jones Industrial Average +15.2% YTD
- S&P 500 +13.9% YTD
- Russell 2000 +11.3% YTD
Le patron d’Airbus monte au créneau face aux affaires de corruption
Dans un courrier adressé aux salariés, le dirigeant d’Airbus, Tom Enders, défend sa stratégie de transparence. Le groupe fait l’objet d’une double enquête britannique et française pour soupçons de corruption.
Après une première série d'articles cet été, consacrés aux différentes enquêtes sur ses pratiques commerciales, le groupe Airbus se prépare à affronter, ces jours-ci, un nouveau coup de vent médiatico-judiciaire. Dans un courrier adressé ce vendredi à l'ensemble du groupe, le président exécutif d'Airbus, Tom Enders, a alerté tous les salariés de l'imminence d'une « nouvelle série d'articles de presse, au sujet des questions de conformité et des enquêtes en cours ».
Double enquête franco-britannique
« Je tenais à partager avec vous quelques réflexions avant que des « informations ne vous parviennent d'autres sources dans les prochains jours », explique le grand patron d'Airbus, plutôt coutumier de ce genre de communication directe. Sans rentrer dans les détails des procédures, Tom Enders se réfère aux enquêtes en cours depuis bientôt avril 2016 menées par le Serious Fraud Office (SFO) britannique et le Parquet national financier (PNF) français concernant des présomptions de violation des lois anticorruption pour l'obtention de plusieurs commandes pour des avions commerciaux et des satellites. Une double enquête déclenchée, comme le rappelle Tom Enders, suite à la décision d'Airbus de déclarer aux autorités les « inexactitudes que nous avions nous-mêmes découvertes » à l'occasion d'un audit interne décidé par lui-même.
Soutien réitéré du conseil d'administration
« Cette décision était la bonne - la seule ligne de conduite conforme à nos valeurs, à nos standards d'éthique, à nos règles de conformité et à notre responsabilité légale - et nous l'avons prise avec l'appui total de notre conseil d'administration », écrit le président d'Airbus, accusés par certains d'avoir ouvert la boîte de Pandore, en confiant l'enquête interne à un directeur juridique (John Harrison) et à un cabinet d'audit tous deux américains, susceptibles de jouer contre les intérêts européens.
Une stratégie qui fut planifié, il y a plus d'un an, avec le soutien des autorités françaises de l'époque et pour laquelle le conseil d'administration d'Airbus a réitéré son soutien à Tom Enders, le 27 septembre à Hambourg.
Eviter le pire
En optant pour cette stratégie, Airbus espère éviter le pire. A savoir un procès au pénal, en Grande-Bretagne, en France, voire même aux Etats-Unis, dont la justice peut se révéler particulièrement sévère avec ce type d'affaires ( cf les cas d'Alstom ou de Siemens). En alertant les autorités britanniques et françaises sur les irrégularités découvertes en interne, Airbus peut en effet bénéficier de la nouvelle réglementation française (dite loi Sapin II) qui prévoit des exemptions de peines pour les entreprises ayant dénoncé elles-mêmes des faits de corruption et ayant pris les dispositions nécessaires pour éviter qu'ils ne se reproduisent, contre le paiement d'une simple (mais généralement grosse) amende.
L'exemple de Rolls Royce
En Grande-Bretagne, le motoriste Rolls-Royce a ainsi pu échapper à un procès, en acceptant, en janvier, de payer une amende de 671 millions de livres. C'est probablement ce qui attend Airbus, à ceci près que l'enquête est pour la première fois, menée en coopération entre les magistrats français et leurs homologues britanniques - ce qui complique un peu la chose - et que cette disposition légale n'a encore jamais été appliquée en France.
Le retour de l'affaire du Kazakhstan
De plus, l'enquête du SFO et du PNF n'est pas la seule affaire en cours embarrassante pour Airbus. Outre le dossier de la vente de 18 avions de combat Eurofighter à l'Autriche , pour laquelle le gouvernement autrichien a engagé des poursuites contre l'ex-EADS, Airbus pourrait bien être rattrapé par une autre affaire sulfureuse dans les tous prochains jours : la vente de 45 hélicoptères Eurocopter au Kazakhstan en 2010, qui a donné lieu à l'ouverture d'une information judiciaire en France, pour corruption. Selon nos informations, les magistrats en charge de l'enquête s'apprêteraientà convoquer dans les prochains jours, certains collaborateurs et anciens collaborateurs de l'ex-groupe EADS, pour les entendre comme témoin dans cette affaire. De quoi justifier aussi les craintes de Tom Enders sur la couverture médiatique du groupe dans les prochains jours.
Handelsblatt Global @HandelsblattGE
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Airbus is investigating more than 100 possible cases of corruption and bribery. Munich prosecutors might soon press charges. @SPIEGELONLINE
El artículo 155 de la Constitución española, incluido en el título VIII sobre la organización territorial del Estado, constituye, según los expertos constitucionalistas, el «medio de control, de carácter excepcional, que complementa al ordinario recogido en el artículo 153, de la actividad de las CCAA».
Está previsto para situaciones «extremas», es decir, aquellas en las que una comunidad incumple las obligaciones impuestas por la Carta Magna o las leyes «atentando gravemente al interés general de España».
Este artículo está inspirado, como señala el profesor Mariano Bacigalupo, en la figura de la «coerción federal» prevista en el artículo 37 de la Ley Fundamental de Bonn. No contempla, como sí sucede en otros Estados federados, la suspensión o disolución de los órganos de la comunidad incumplidora. En este caso, de lo que se trata es de adoptar medidas para el cumplimiento forzoso de las obligaciones.
La diferencia entre el artículo 155 español y el 37 alemán reside en que en el primero, la situación de conflicto debe atentar gravemente al interés general de toda la nación. No basta con el mero incumplimiento de las leyes. Este supuesto evidentemente se daría en el caso de un intento de secesión puesto que la misma afectaría a la integridad territorial del Estado, y a los principios de unidad y soberanía nacional que constituyen el núcleo de la Carta Magna.
En el 155 se prevé además un primer paso que implica el requerimiento a las autoridades de la comunidad incumplidora para que atiendan sus obligaciones legales. En caso de que dicho apercibimiento fuera desoído, las medidas a adoptar por el Estado deberían ser aprobadas por la mayoría absoluta del Senado. No sería, sin embargo necesario que medie una declaración de incumplimiento por parte del Tribunal Constitucional, aunque muy probablemente el Gobierno de Mariano Rajoy la requeriría.
Ni en España ni en Alemania se ha activado un precepto tan excepcional. En el caso español, el procedimiento de aplicación del artículo 155 en su fase parlamentaria está recogido en el artículo 189 del reglamento del Senado.
En virtud del mismo, el Gobierno deberá presentar ante el presidente de la Cámara un escrito en el que manifieste el contenido y alcance de las medidas a aplicar, así como la justificación de haber realizado el correspondiente requerimiento al presidente de la Comunidad Autónoma afectada, y el incumplimiento de ésta.
La Mesa del Senado remitirá esta documentación a la Comisión General de las Comunidades Autónomas que requerirá al presidente de la comunidad implicada a remitir en plazo las alegaciones que considere oportunas y designe a una persona para que ejerza su representación.
La Comisión emitirá un dictamen razonado sobre si procede o no aprobar la solicitud del Gobierno central, incluyendo los condicionantes y precisiones que crea oportunos. El Pleno de la Cámara debatirá y votará la propuesta, siendo necesario para la aprobación el voto de la mayoría absoluta de los senadores
Pyongyang Ready to Test Missile Capable of Reaching US West Coast - Official
According to a Russian lawmaker, who has just returned from North Korea, Pyongyang is ready to test a missile capable of reaching the US western coast.
Pyongyang is planning to test-fire a missile that is capable of reaching the western coast of the US, Anton Morozov, a member of the Russian State Duma Committee on International Affairs told RIA Novosoti.
"They [North Korea] are preparing to launch a new high range missile. They even gave us calculations, showing that the missile was capable of reachen the western coast of the US," Morozov said.
The Russian delegation was on an official visit in the North Korean capital on October 2-6, the Russian embassy in North Korea said earlier. The lawmakers discussed bilateral cooperation with the Russian ambassador to North Korea.
La CUP ve "ineludible" que el Parlament declare la independencia el martes
- La formación anticapitalista cree que debe aplicarse a partir del martes la ley de transitoriedad jurídica y rechazan una declaración de independencia en diferido
DJ Catalan President Looks to Address Parliament Amid Push for Independence -- 3rd Update
By Marina Force
BARCELONA--Catalan President Carles Puigdemont has asked to address the region's Parliament on Tuesday, in a session where lawmakers could consider whether to declare independence from Spain amid a bitter standoff with Madrid.
Meanwhile, the Spanish government maintained pressure on the northeastern region, one of the country's wealthiest, by approving a decree Friday that would make it easier for companies to move their legal base out of Catalonia. A slate of companies, including two large banks, have announced plans to leave the region or said they are considering doing so.
Mr. Puigdemont has asked to inform the regional assembly on Tuesday "of the current political situation," according to his spokesman.
The request comes a day after Spain's Constitutional Court ordered the legislature not to convene a session on whether the region should break free of Spain.
The Catalan Parliament had decided to convene a session on Monday, but it is now unclear whether that will go ahead. Later Friday, parliamentary leaders are scheduled to meet to decide whether to proceed with Monday's session. If the assembly decides to meet Monday, it would be in defiance of Thursday's ruling by Spain's Constitutional Court.
In recent days, Catalan officials said that Mr. Puigdemont would present the results from Sunday's referendum, in which, according to Catalan officials, an overwhelming majority of voters supported secession.
Catalan officials have said that about 90% of those who voted on Sunday cast a ballot in favor of secession, although the vote was marred by irregularities, such as the lack of an official census. Many Catalans, who are against independence or thought the vote was illegitimate, boycotted the vote.
It remains unclear, however, whether the Catalan lawmakers will make a declaration of unilateral secession next week, or will open the door to negotiations with the Spanish government on a path to independence.
Another option is to call new elections for the Catalan assembly, which some separatist lawmakers believe could increase their number of seats in Parliament, strengthening their hand to announce a unilateral secession or negotiate a break with Madrid.
If Catalonia goes ahead with a unilateral declaration of independence, the government of Spanish Prime Minister Mariano Rajoy could invoke a never-used constitutional provision allowing Madrid to seize control of the region.
Meanwhile, Josep Lluis Trapero, the head of Catalonia's police force, was questioned in Madrid on Friday morning as part of an investigation into sedition associated with large demonstrations before the Oct. 1 referendum. Mr. Trapero is being investigated along with another police official and two leaders of the pro-separatist movement on allegations they failed to rein in demonstrators who tried to prevent national police from carrying out a court order to arrest people and seize documents in a separate investigation into the organization of the referendum.
The Spanish government's representative in Catalonia, Enric Millo, apologized on Friday on behalf of Spanish police officers for the "possible consequences" of their actions during the referendum. Nearly 900 people were injured in clashes, according to regional authorities.
Mr. Millo, however, said the blame rested with the Catalan government, which he said encouraged people to "go to the polling stations when everybody knew it was illegal."
Concerns over the prospect of Catalonia should break breaking free of Spain have begun to affect the region's companies.
Banco de Sabadell SA, one of Catalonia's biggest banks, said Thursday that it plans to move its headquarters out of Catalonia, while bankers said another major Catalan lender, CaixaBank SA, also was considering a relocation.
The Spanish government's decree could accelerate the process of companies' moving their legal headquarters outside of Catalonia.
Under the new rule, companies will only need to seek shareholder approval to move their base when it is specifically stipulated in their corporate statutes, the minister said. Otherwise, it will be the company board that decides on relocation, Spanish Economy Minister Luis de Guindos said in a press conference Friday.
Late Thursday, textile company Dogi International Fabrics said it plans to move its headquarters to Madrid, sending its stock soaring 10% on Friday. Dogi's shares suffered at the start of the week, but have since recovered.
Rating companies Standard & Poor's and Fitch have placed Catalan debt on negative watch this week, signaling an increased chance of a downgrade. In a note Friday morning, analysts at Spanish bank Bankinter SA said a EUR16 billion ($18.7 billion) takeover of Barcelona-based highway-management company Abertis by Italy's Atlantia SpA, which is close to approval by Spanish authorities, could be delayed due to the political uncertainty in the region.
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