>>> Asian Update

Asia Mid-Session Market Update: China official PMIs slow to 6-month lows; Risk trade recovers on reports of US govt funding agreement
Mon, 01 May 2017 0:30 AM EST

***Friday US Session Highlights***
- (US) Q1 ADVANCE GDP ANNUALIZED Q/Q: 0.7% V 1.0%E; PERSONAL CONSUMPTION: 0.3% V 0.9%E
- (US) Q1 EMPLOYMENT COST INDEX (ECI): 0.8% V 0.6%E
- (US) APR CHICAGO PURCHASING MANAGER: 58.3 V 56.2E; new orders and employment show significant m/m growth
- (US) APR FINAL MICHIGAN CONFIDENCE: 97.0 V 98.0E

***Politics***
- (US) Congress negotiators from both parties said to have reached a tentative deal on $1.1T omnibus spending bill to fund the govt through Sept 30th - financial press
- (FR) French presidential candidate Le Pen indicating she would not rush to leave the euro if elected - press
- (US) Pres Trump signs Congressional stopgap funding to keep the govt open until May 5th

***Weekend US/EU Corporate Headlines***
- COH: Coach said to be interested in a possible offer for Jimmy Choo after failed takeover of Burberry - UK press
- TRCO: Fox and Blackstone said to be in talks to acquire Tribune Media - financial press

***Key economic data:***
- (CN) CHINA APR MANUFACTURING PMI (GOVT OFFICIAL): 51.2 (6-MONTH LOW) V 51.6E; NON-MANUFACTURING PMI: 54.0 (6-MONTH LOW) V 55.1 PRIOR
- (JP) JAPAN APR FINAL PMI MANUFACTURING: 52.7 V 52.8 PRELIM (confirms 8th straight month of expansion)
- (AU) AUSTRALIA APR MELBOURNE INSTITUTE INFLATION M/M: 0.5% (3-month high) V 0.1% PRIOR; Y/Y: 2.6% (highest since July 2014) V 2.2% PRIOR
- (AU) AUSTRALIA APR AIG MANUFACTURING INDEX: 59.2 V 57.5 PRIOR; 7TH MONTH OF EXPANSION
- (AU) AUSTRALIA APR CORELOGIC RPDATA HOUSE PRICES M/M: 0.1% V 1.4% (slowest gain in 16-months)
- (KR) SOUTH KOREA APR TRADE BALANCE: $13.3B V $8.6BE

***Asia Session Notable Observations, Speakers and Press***
- Asian trading is light to start the week despite the release of key data out of China, with most markets closed for May 1st Labor Day. April's official manufacturing and non-manufacturing PMIs both hit 6-month low on lower prices and lower demand - new export orders and employment components slumped to a 3-month low, while Input Prices are at a 10-month low. Risk-on flows were initially depressed with firmer JPY and lower US futures at the open before a mid-day reversal on reports that Congressional negotiators from both parties said to have reached a tentative deal on $1.1T omnibus spending bill to fund the govt through Sept 30th. The deal does not include funding for the border wall and was cheered by Senate Minority leader Schumer as a "good agreement".
- In other key datapoints, Japan Apr Manufacturing PMI was confirmed at an 8-month high, as Markit economist noted growth is supported by strengthening overall demand across the South East Asia region with exports as a key driver of growth. Australia MI inflation also trended hotter, reaching July-2014 highs, while Aussie manufacturing expanded for 8th straight month.
- Geopolitical tensions around the Korean peninsula remained an issue following a missile test late on Friday. Even though the projectile had reportedly failed, landing within North Korean territory, US CIA director Pompeo was said to be meeting with South Korea's national security officials about the buildup of nuclear capability of the North. Also out over the weekend, US National Security Advisor McMaster assured South Korea that US is paying for THAAD despite Pres Trump claiming Seoul should pay a $1B for deployment.

Japan
- (JP) According to Kyodo poll 49% favor changing Article 9 of Japan constitution (outlaws war as a means to settle international disputes involving the state) v 47% opposed

Australia / New Zealand
- (AU) Australia Treasurer Morrison did not commit for ruling Coalition to return govt to surplus by 2021; Looking to lower living costs in upcoming May 9th budget - press
- (NZ) RBNZ seeks views on capital adequacy framework for banks
- (NZ) New Zealand Treasury: Inflation to hold near 2% over 2017 in absence of any additional shocks - press

Korea
- (KR) CIA director Pompeo said to have met South Korea National Security officials in Seoul - Korean press
- (KR) South Korea Fin Min Yoo: Already working with US on reducing trade surplus - press
- (KR) US National Security Advisor McMaster said to have spoken with South Korea chief Kim Kwan-jin; Assured him that US will pay for THAAD system deployment - press

***Asian Equity Indices/Futures (00:00ET)***
- Nikkei +0.4%, Hang Seng closed, Shanghai closed, ASX200 +0.3%, Kospi closed
- Equity Futures: S&P500 flat; Nasdaq +0.1%, Dax closed, FTSE100 closed

***FX ranges/Commodities/Fixed Income (00:00ET)***
- EUR 1.0890-1.0910; JPY 111.20-111.75; AUD 0.7465-0.7490; NZD 0.6850-0.6880; GBP 1.2900-1.2940
- June Gold -0.3% at 1,264/oz; June Crude Oil -0.2% at $49.24brl; July Copper -0.4% at $2.60/lb
- (AU) Australia MoF sells A$300M 2.75% 2035 bonds, avg yield 3.1375%, bid-to-cover 3.59x


***Asia equities / Notables / movers***
Australia
- RCG Corp (RCG) -21.7%; Cuts FY17 Underlying EBITDA guidance to A$74-80M (prior A$85-88M)
- Saracen Mineral (SAR) +2.9%; Canaccord Genuity Raised SAR.AU to Buy from Hold

Japan
- Sojitz (2768) +3.2%; FY16/17 results
- Sharp (6753) +2.7%; FY16/17 results
- Ricoh (7752) -7.3%; FY16/17 results
- Fujitsu (6702) +9.0; FY16/17 results
- ANA (9202) -2.8%; FY16/17 results
- JAL (9201) -7.3%; FY16/17 results
- Honda (7267) +0.3%; FY16/17 results
- Tokyo Electron) +13.3%; FY16/17 results

>>> What to look at this (long) Week End - 29th & 30th of April

Weekly Performance
Dow +1.91% S&P +1.51% Nasdaq +2.32% Russell +1.49% Mexico +0.60% Ibovespa +2.58% Nikkei +3.09% (+0.87% in $) Hang Seng +2.38% CSI -0.78% Shanghai -0.69% EuroStoxx +3.47% (+5.13% in $) Ftse +1.26% (+2.33% in $) CAC +4.11% (+5.78% in $) Dax +3.23% (+4.89% in $) Ibex +3.26% (+4.92% in $) MIB +4.39% (+6.07% in $) SMI+3.02% (+3.20% in $)
The week opened with a bang as markets breathed a sigh of relief that the polls accurately predicted Emmanuel Macron’s win in the first round of the French election, sparking a global scramble for risk assets. Global indices surged Monday and into Tuesday, Treasury yields moved up, and gold prices backed down from the $1,300 level. The VIX careened back down to briefly touch the lowest level since 2007 as traders unwound hedging trades from last week. The NASDAQ crossed above 6K for the first time ever, as the technology sector took center stage during earnings season, while other indices got back within striking distance of their all-time highs. For the week, the DJIA gained 1.9%, the S&P added 1.5%, and the Nasdaq rose 2.3%.

Macro :
- China April Manufacturing PMI at 51.2; Est. 51.7
- Fed’s Low-and-Slow Strategy Tested by Business-Spending Pickup
- If You Sell in May, How Long Should You Stay Away? Macro Man
- Germany’s Schaeuble Sees Greece on Track for May 22 Deal: Funke
- Pence Says Trump’s Tax Plan May Increase Deficit in ‘Short Term’
- May Promises No Increase in VAT, Hints at Other Tax Rises

Keep an eye on :
- AC FP : Banyan Tree enters into definitive collaboration, subscription agreement with Accor
- AIR FP : Airbus to Build Helicopter Assembly Line in Shandong: Xinhua
- AIR FP : SpaceX Says Standing Down on Launch Today Due to Sensor Issue
- AI FP : Air Liquide to Cancel 1.5m Shares Bought in Buyback Program
- AZA IM : Alitalia Administrators to Seek Offers for Company: Messaggero
- AZA IM : Meridiana/Qatar Air May Be Interested in Alitalia: Messaggero
- AMZN US : Amazon Probed in Italy for $142m in Unpaid Taxes: La Repubblica
- AAPL US : Apple Asks CA to Change Proposed Self-Driving Car Testing Rules
- CS FP : Axa Sees Positive Impact on Results From Higher Rates: Chairman
- BAYN GY : Bayer, J&J File With FDA to Seek New Xarelto Dose for VTE
- BMW GY : BMW CEO Says Next Self-Driving Car to Be Built in Bavaria: FAS
- BMPS IM : Italy May Have to Put More Than EU6.6b Into Paschi: Stampa
- BB/ LN : U.K. Said to Plan GBP3b Bradford & Bingley Mortgage Auction: Sky
- CPI LN : Capita auction of asset services unit attracts GBP 700m bids from GTCR, CVC
- AFX GY : Zeiss, ASML Seek to Block Nikon Cameras From U.S. Market
- CO FP : Via Varejo stake sale to be postponed - O Estado de Sao Paulo
- CCH LN : Coca-Cola Bottling Company UNITED buys eight distribution territories, two factories from The Coca-Cola Co.
- DAI GY : Mercedes Recalling Some Vehicles in U.S. for Seat Belts: NHTSA
- GPRO US : GoPro Falls as Bullish Forecasts Fail to Convince Analysts
- ISP IM : Italy May Hold More Than 70% in Veneto Banks After Merger: Sole
- CHOO LN : Coach Said Considering Takeover of Jimmy Choo: Telegraph
- LIN GY : Praxair CEO Angel has $37M Parachute in Linde Deal: Spiegel
- LIN GY : Linde-Praxair Merger Talks Could Take Until June: Handelsblatt
- LUX IM : Luxottica 1Q Net Sales Meet Est., FY Outlook Confirmed
- MKS LN : Marks & Spencer, Ocado Said Eyeing Delivery Tie-Up: Telegraph
- OCDO LN : Marks & Spencer, Ocado Said Eyeing Delivery Tie-Up: Telegraph
- OHL SM : OHL Reaches Agreement With Unions Over Job Cuts: Filing
- POM FP : Plastic Omnium Aims to Double Chinese Sales by 2021: Investir
- RNO FP : Nissan N. America Recalling Certain LEAF, Sentra Vehicles: NHTSA
- RKET GY : Rocket Internet Plans Fintech, Insurance Businesses
- SAP GY : Siemens, SAP Sign MoUs to Aid Saudi Digitalization: Reuters
- SIE GY : Siemens, SAP Sign MoUs to Aid Saudi Digitalization: Reuters
- STM FP : Semiconductor Stocks Fall Amid Intel Data Center Revenue Miss
- SZU GY : Swiss to Discuss Sugar Tax in Parliament in Coming Weeks: SamW
- TCG LN : Thomas Cook to Buy Kuoni’s Destination Mgmt Specialists Network
- TWTR US : CEO Dorsey bought 574K at $16.62 on 4/28 (update) - CEO's stake now totals just over 16M shares
- VOW3 GY : VW Triples Electric-Car Budget to $9.8b for New Auto Era

Recode.net : Here’s the first look at how Elon Musk’s ‘boring’ car tunnels will

Here’s the first look at how Elon Musk’s ‘boring’ car tunnels will work
Cars will be lowered into the tunnel from the roads on what Musk calls a car “skate.”

At the TED conference today, Elon Musk gave a first look at the underground tunnels his new company, The Boring Company, is shooting to develop in the future.
Based on what we can gather from the brief video, cars will be lowered from regular roads into the tunnels by parking on what is essentially an elevator. The cars will remain on a platform — called a car “skate” — in the tunnel, which will take it through at up to 130 miles per hour.
The Boring Company was born out of Musk’s frustration with traffic in Los Angeles. To that end, the eccentric executive, whose business endeavors range from accelerating the electrification of vehicles in order to preserve the environment to colonizing Mars, decided he wanted to develop an underground network of tunnels so that cars could circumvent traffic.

Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging...
2:05 PM - 17 Dec 2016

To do that, Musk said The Boring Company will likely have to create a 3D network of tunnels.
“There’s no real limit to how many levels of tunnels you can have,” he said. “The deepest mines are much deeper than the tallest buildings are tall.”
TED
It’s not yet clear if Musk’s new endeavor is actually possible or how long it will take. Musk, who also splits his time leading SpaceX and Tesla, said he only spends about two to three percent of his time on The Boring Company.
“This is basically interns and people doing it part time,” he said. “We bought some second hand machinery. It’s kind of puttering along but making good progress.”
That’s in spite of the current tunnel boring machines operating fairly slowly, according to Musk. Machines today dig the tunnels about half the time and spend the other half reinforcing those tunnels, he said. He’d like to develop one that does both concurrently.
“We have a pet snail named Gary,” he said. “Gary is capable of currently going 14 times faster than a tunnel boring machine. We want to beat Gary. He’s not a patient little fellow, that will be victory. Victory will be beating the snail.”

Here’s the full video:

FT : Publishers warm to Google plan for Chrome ad-blocker

Publishers warm to Google plan for Chrome ad-blocker
Restrictions on widely used internet browser could hit online advertising revenues

US and European publishers have given support to the idea of Google introducing an ad-blocker to its widely used Chrome internet browser despite fears it would hit their online advertising revenues.

Details of the technology group’s plans have not been disclosed but Google has said it held “initial conversations” on the idea with publishers.

Chrome is the dominant player in the internet browsing market with a near 60 per cent share, according to NetMarketShare. The blocker would be likely to target certain types of ads that have been found to frustrate readers, such as pop-ups and auto-playing videos.

When news of Google’s ad-blocking plan was first reported by the Wall Street Journal a fortnight ago, there were fears the tool could be used to impose a blanket ban on certain ad types, dealing a further blow to publishers who are struggling to compete with Google and Facebook for online ad revenues.

But some publishers have told the Financial Times they are encouraged by the move from the Silicon Valley group as a way to clean up online advertising.

Jay Lauf, president and publisher of Quartz, the business news website owned by Atlantic Media, told the Financial Times: “I welcome [Google’s] involvement as long as they don’t go for a nuclear option, which could have a lot of collateral damage.

“If they’re more considered and surgical, I think it has a chance to be a really positive development. There’s an opportunity to clean a lot of the junk out of the system.”

Guardian Media Group added: “We welcome any initiative that helps to create an open web where the experience of readers is put first. We have long believed in a fewer, better approach to the ads we place across our products.”

But Jason Kint, chief executive of Digital Content Next, a group that represents more than 70 major media groups including News Corp, the FT and the Washington Post, provided a note of caution.

“The world of ad blocking is as murky as they come,” he said. “Friends and enemies can easily be confused, good and evil often mistaken and interests aren’t always as they appear.”

Other publishing groups such as Axel Springer, the Telegraph and Mail Online declined to comment.

About 26 per cent of internet users have ad-blockers on their computers, according to a survey conducted by the Interactive Advertising Bureau, while about 10 per cent use ad-blockers on their phones.

Publishers and technology groups such as Google, which made almost $80bn in ad revenue in 2016, fear the growing use of ad-blockers. Google places about half of all digital advertising either on its own sites or through its own ad network, meaning it has potentially the most to lose.

The tech group says it is working with representatives from the publishing industry through the Coalition for Better Ads, an industry body that includes Google, Facebook and WPP-owned ad agency Group M as members.

The group published a survey in March that ranked the most annoying ads online and outlined new ad standards.

A Google spokesperson said: “We’ve said publicly​ for a while now​ that Google alone cannot solve the bad experiences users have online — we need a data-driven industry approach to improving ads experiences.”

WSJ : Europe Investors Bid Adieu to Political Jitters and Begin Buying

Europe Investors Bid Adieu to Political Jitters and Begin Buying
Money flows to the continent as focus turns to economic recovery

Investors aren’t waiting for the conclusion of the French election to put money back into Europe.
They are already flocking back, betting that the region has finally unshackled itself from fears of political turmoil.
Local stock markets just had their best week this year following the first round of the French presidential vote, and investors have poured money into the region’s equity funds at the fastest pace since 2015. The euro climbed 1.6% against the dollar in its best week since July.

All this comes as investors start to look beyond political risks and focus on the continent’s strong economic recovery.
“People are beginning to let go of European political risks as a theme,” said George Maris, portfolio manager at Janus Capital . JNS -0.87% The underlying economy and earnings picture are becoming more evident now in Europe, Mr. Maris said.
Europe’s buoyant equity markets are already reflecting much of that optimism, despite coming political events that had once concerned investors—chiefly the final round of voting in France’s presidential elections and votes in Italy and Germany.
Germany’s benchmark DAX index reached a record in the week following the French vote, while the Euro Stoxx 50 index of blue-chip eurozone stocks climbed 3.5%, with advances in Europe led by the banking sector. In dollar terms, the Euro Stoxx 50 index is up almost 12% this year, nearly double the S&P 500’s gains.


European equity funds recorded their strongest inflows since December 2015, with inflows of $2.4 billion in the week to April 26, according to EPFR Global data.
Eurozone markets have rallied since the first round of French presidential elections on April 23, when pro-European centrist Emmanuel Macron won more votes than both Marine Le Pen, who pledged to take France out of the euro, and Jean-Luc Mélenchon, a far-left antiglobalist candidate. Mr. Macron is now seen as a heavy favorite in the second round on May 7, when he will face Ms. Le Pen.
A solid election victory for the Dutch political establishment in March has also soothed fears of a continentwide lurch toward nationalism that had weighed on asset prices through this year.
Instead of politics, investors are focusing on economics and earnings.
Unlike previous years, analysts have continued to raise their projections for annual growth in earnings per share in the eurozone, according to J.P. Morgan.
First-quarter earnings in the Stoxx Europe 600 are expected to increase 5.5% from the first quarter of 2016, according to Thomson Reuters data.
Investors point to good signals from the economy. Business confidence and gauges of activity in the eurozone’s manufacturing and services sectors rose to six-year highs in April, despite uncertainty ahead of the French vote.
“European growth is the best it’s been since the global financial crisis,” said Robert Waldner, chief strategist at Invesco Fixed income. “The combination of supportive financial conditions and a solid economy should boost equities and credit markets in the region.”

All this has ramifications for the European Central Bank as it contemplates an exit from a €2.3 trillion ($2.5 trillion) bond-purchase program. On Friday, eurozone inflation data for April came in higher than expected, reaching 1.9%. The ECB targets inflation close to 2%. The region has been battling low and at times negative inflation for much of the past three years.
The euro jumped after Friday’s inflation figures to settle at $1.0897. “The market is pricing out political risks and is pricing in a less cautious [European Central Bank],” said Vasileios Gkionakis, head of foreign-exchange strategy at UniCredit Research.
Mr. Gkionakis expects that if Mr. Macron becomes French president, the euro would go past $1.10.
The ECB’s signals in the months ahead are expected to be critical for the euro’s performance toward the end of the year.
Risks remain. There is still a chance that Ms. Le Pen could win the French presidency, renewing questions about the future of the eurozone. Euroskeptic parties have a shot at winning Italian elections that will come by next year, at the latest, and Italy continues to struggle with weak banks and bleak economic prospects.
French economic growth slowed at the start of the year, while ECB President Mario Draghi highlighted Thursday that consumer prices remain subdued across the euro area.
For now, the European party continues.
Assuming French elections go as expected, “it at the very least removes the immediate existential concerns about the eurozone and euro currency itself,” said Abi Oladimeji, chief investment officer at Thomas Miller Investment.

>>> Jimmy Choo tipped for acquisition by Coach

Jimmy Choo tipped for acquisition by Coach
Coach [NYSE:COH], the New York City-based luxury fashion group, is considered a likely acquirer of upmarket British footwear brand Jimmy Choo [LON:CHOO], The Sunday Telegraph reported. According to senior sources cited in the report, Coach is seeking luxury labels to acquire after failing to snap up UK-based Burberry [LON:BRBY] last year.
Coach is willing to pay more than GBP 1bn (USD 1.3bn) for Jimmy Choo, which was put on the market last week by majority shareholder JAB Holdings, the report said. Citi and Bank of America Merrill Lynch have been hired to manage the auction.
Former Jimmy Choo chief executive Joshua Schulman was recently appointed CEO of Coach, the report noted.
Luxury brand operators from the Middle East, such as Mayhoola of Qatar, are believed to be potential bidders for Jimmy Choo, the item reported. French luxury groups LVMH [EPA:MC] and Kering [EPA:KER] are unlikely to be interested in Jimmy Choo as they have been attempting to streamline their operations rather than enlarging them, bankers cited in the article pointed out.
Coach has an USD 11bn market cap, the report noted.

>>> Amaya to poach M&A strategist from William Hill, fuelling talk of sports bet

Amaya to poach M&A strategist from William Hill, fuelling talk of sports betting deal - report

Amaya [TSE:AYA], the Canada-based gaming group, is in negotiations to appoint William Hill [LON:WMH]’s group director of strategy, Robin Chhabra, The Sunday Times reported. Chhabra is in charge of managing M&A activity and the move is thus likely to stoke speculation of potential deals in the pipeline at Amaya, the owner of Isle of Man-based PokerStars, the report said. Amaya last year failed to complete a merger deal with William Hill, the item noted.
Rafi Ashkenazi, chief executive of Amaya, has made clear his intention to make a major sports betting acquisition, the report said. Sources said analysts and fund managers in the City have been courted by Amaya in the past few months, since Ashkenazi took over as CEO.

>>> Via Varejo stake sale to be postponed - O Estado de Sao Paulo

Via Varejo stake sale to be postponed - report (translated)

The sale of Companhia Brasileira de Distribuicao (CBD) [BVMF:PCAR4] 44% stake in Via Varejo will be postponed, O Estado de Sao Paulo reported, without citing sources.
CBD, and its parent Casino Guichard Perrachon, still continue with the plan to sell the stake, but they will wait for better times for it, the Portuguese-language article noted.
In regard to the interest of the Klein family to acquire the stake, the article said that they will have to offer more for it. The Klein family holds a 27.3% stake in the target, as reported.
The Klein family has not reached any agreement yet to present a joint bid with Brazilian bank Bradesco, the item noted.

Barron's Saturday summary: Positive CAT, NEE, COH; Cautious ESRX

Barron's Saturday summary: Positive CAT, NEE, COH; Cautious ESRX, CMG 

* Cover story: Positive on CAT; Company has taken a hit from a drop in commodity prices and a number of ill-fated acquisitions, but is getting back on track; Few companies are likely to benefit as much as Caterpillar from Trump administration policies, and shares are likely to rebound. 

* Tech Trader: Fiber-optic stocks rose during the dot-com bubble and have since imploded, but a new generation of them—including OCLR, ACIA, NPTN and LITE—stand to benefit from trends such as cloud computing, even though their shares are currently down. 

* Trader: If the GOP can push a tax plan through, it will probably mean a further boost for corporate earnings, especially if the border-adjusted tax remains sidelined; Despite recent gains in tech stocks such as GOOGL, MSFT, and AMZN, their valuations don’t seem worrisome; Positive on COH: Shares are down amid slumping retail sales, but they’re set to reverse course because of the company’s strong brand and wide range of products. 

* Profile: Philippe Langham of RBC Global Asset Management looks for companies around the world that can produce sustainable, long-term growth (top 10 holdings: Housing Development Finance, Samsung Electronics, Naspers, TWM, AIA Group, DRY, UL, Antofagasta, BBD, SM Investments). 

* Interview: Paul Wick, manager of the Columbia Seligman Communications and Information fund, thinks tech stocks aren’t in a bubble and that fundamentals appear to be in excellent shape (picks: LRCX, MU, WDC; pans: IBM, NFLX, TSLA). 

* Features: 1) Donald Trump’s tax plan would likely benefit banks, restaurants, retailers, telecoms, and health insurers, industries that have a domestic focus; The plan includes good ideas, such as cutting corporate taxes, but could cost too much revenue; 2) Positive on NEE: Even if the company fails to acquire Texas-based Oncor Electric, it remains well-positioned in the energy sector, with a balanced portfolio of stable and growing businesses and a strong dividend yield; 3) Barron’s annual Big Money poll found that top money managers favor the tech and finance sectors, and more are bullish about the outlook for stocks than in the prior two polls; 4) Large money managers “are upbeat about the global economy, and see U.S. economic growth accelerating modestly in coming months” amid higher interest rates and tax cuts. 

* Follow Up: Cautious on ESRX: Shares of the pharmacy benefit manager will probably continue to drop because of ongoing problems related to ANTM and the growing strength of lower-cost rivals; Cautious on CMG: Shares of the food chain have risen, but it needs to keep spending on food safety and advertising to return to growth, and investors for now should stay away; Cautious on Home Capital: Even at C$8.00, the risk in the troubled company’s shares is to the downside, and they could eventually hit zero. 

* European Trader: “Old-World markets rebounded last week as fears of a European Union breakup eased, and investors focused instead on the region’s generally improved economic outlook.” 

* Asian Trader: The Hong Kong market is up 200% since the financial crisis, but amid the euphoria some experts think the good times are about to end. 

* Emerging Markets: “Venezuela has about $10B left, mostly gold, to pay its debts as inflation mounts, imports dwindle, and basic supplies disappear from shelves.” 

* Commodities Corner: Rice is set for a rally because of a combination of low levels of usable inventory and the light likelihood that poor growing conditions could cause futures prices to go up. 

* Streetwise: Real estate stocks can serve as an inflation hedge and as an income source, especially if weak economic growth keeps interest rates lower for longer.