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May 1, 2013

China manufacturing growth stalling: HSBC data LOS ANGELES (MarketWatch). Asia Latest News for Thursday Asia time

Asia

  LOS ANGELES (MarketWatch) -- HSBC revised its China manufacturing gauge lower, confirming a sharp slowing of growth at Chinese factories in April, according to data released Thursday. HSBC put the final reading of its Chinese manufacturing Purchasing Managers' Index at 50.4, down from a preliminary print of 50.5 and solidly below March's 51.6. Still, the result remained above the 50 mark that separates growth from contraction. The print was broadly in line with an official government version of the PMI, released Wednesday, which came in at 50.6 from March's 50.9. The details of the HSBC report were equally lackluster, with the bank saying that "April data signaled only a slight improvement of operating conditions ... as output and new orders both expanded at weaker rates." A subindex tracking new orders destined for export fell below 50 for the first time this year, signaling contraction. HSBC chief China economist Hongbin Qu said the picture of fragile recovery painted by the PMI report was "likely to weigh on the labor market, which is likely to invite more policy responses in the coming months." Stock markets reacted negatively to the report, with Hong Kong's Hang Seng Index and the Shanghai Composite both extending losses after the data to trade down 0.7% each. Australia, which counts China as its top trading partner, also saw equities weaken further after the PMI, with the S&P/ASX 200 trading down 0.9%.


Hong Kong, Shanghai stocks drop after China data HONG KONG (MarketWatch) -- Stocks in Hong Kong and Shanghai fell Thursday as investors got their first chance to react to Wednesday's weaker-than-expected data on Chinese manufacturing activity for April. The Hang Seng Index fell 0.7% and the Hang Seng China Enterprises Index slumped 1.7% in Hong Kong after Wednesday's holiday. The Shanghai Composite slid 0.6% to 2,163.90 as markets reopened for the first time this week after Labor Day holidays. The drop came as markets awaited the final reading on Chinese manufacturing conditions in a private-sector survey conducted by HSBC. Among the major decliners in Hong Kong, China Merchants Holdings International Co. lost 3.5%, PetroChina Co. shed 2.2% and Bank of East Asia Ltd. gave up 2.4%. In Shanghai, property and resource stocks fell, with Jiangxi Copper Co. dropping 3.2% and Gemdale Corp. declining 1.1%.


Asian stocks fall; Tokyo down ahead of holidays Most Asian markets decline, tracking losses in the U.S. after the Federal Reserve’s monetary policy decision, with Japanese stocks dragged further down by a stronger yen and caution ahead of a long weekend. 9:24 p.m. Today

Economist Paul Krugman: End This Depression Now: from Sixth and Historic Synagogue on FORA.tv


Economist Paul Krugman: End This Depression Now from Sixth and I Historic Synagogue on FORA.tv

NFA I Enforcement Actions May, 1, 2013: NFA takes emergency enforcement action against Robert Juan Escobio, an associated person and principal of Southern Trust Securities, Inc., a futures firm located in Coral Gables, Florida



Charting a Course for Rest of 2013: Money Show Investors Daily Alert May 1, 2013.

INVESTORS DAILY ALERT

The Daily Guru
Jim Jubak on MoneyShow.com
TOP PROS' TOP PICKS
GURUS' VIEWS & STRATEGIES
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Today's Featured Videos

BIV Today's Business News May 1, 2013: BC Chamber of Commerce slams new TFW regulations


Human Resources

BC Chamber of Commerce slams new TFW regulations

The B.C. Chamber of Commerce (BCCC) this morning slammed new federal regulations governing Canada's ... READ MORE

Mining and Energy

 

B.C. mining earnings dropped in 2012: PwC

Profit at B.C. mining companies dropped in 2012, according to PwC’s 2012 BC Mining Industry Survey released yesterday to ... READ MORE

Economy and Finance

 

Increasing CPP benefits would hurt Canadian economy: CFIB

An increase in Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) benefits would negatively impact the country’s economy and lead to significant ... READ MORE

Film and Entertainment

 

Gaming sector holds job fair to support those recently laid off

Vancouver’s mobile gaming industry is rallying around those recently laid off by hosting a job fair May 3 that will be ... READ MORE

More News...

   

Bralorne Gold Mines allegedly breached mining rules: BCSC

Too much red tape limiting apprenticeship opportunities: C.D. Howe

This Week's Issue

 

Gold's Gym aims to muscle in on local gym market

Competitors surprised that the franchiser, whose Richmond outlet recently closed, now plans to open 20 new Vancouver gyms within two years ... READ MORE

Three Charged With Hindering Inquiry Into Boston Attack: The New York Times Global Update May 1, 2013.

The New York Times International Herald Tribune
May 1, 2013
Compiled 20:45 GMT

Global Update

TOP NEWS

Three Charged With Hindering Inquiry Into Boston Attack

By KATHARINE Q. SEELYE, MICHAEL S. SCHMIDT and WILLIAM K. RASHBAUM
Two men, both Kazakh citizens in the United States on student visas, were charged with conspiring to obstruct justice and destroy evidence. A third man was charged with lying to law enforcement officials.

Besieged Syrian Leader Makes Rare Appearance

By HWAIDA SAAD and RICK GLADSTONE
President Bashar al-Assad's visit to a power plant in the capital, Damascus, came after consecutive days of deadly bombings in the heart of his power base.

The Most Hated Bangladeshi, Toppled From a Shady Empire

By JIM YARDLEY
Sohel Rana is under arrest after the collapse of his factory building last week left nearly 400 people dead, but until now he has been a powerful figure, trailed by his own biker gang.
Dining & Wine

Video: Molten Cake, 'The Big Mac of Desserts'

Mark Bittman shows how to make a warm soft chocolate cake with Jean-Georges Vongerichten, who says his restaurants make about a thousand a day.
Opinion

Op-Ed Contributor

Tocqueville and Gay Marriage

By ROBERT ZARETSKY
The difference in French and American reactions to gay marriage has roots in their religious histories.
WORLD

Greeks Stage General Strike Against Austerity

By NIKI KITSANTONIS and ALAN COWELL
The Greek protest came as workers around the world observed the international Labor Day with demonstrations and rallies. News reports said most went off quietly.

Retailers Split on Contrition After Collapse of Factories

By STEVEN GREENHOUSE
Several apparel companies sought to minimize any connections to the building in Bangladesh, while some others quickly acknowledged theirs.

Obama Considers Expanding Support for Syrian Rebels

By MARK LANDLER and RICK GLADSTONE
A decision to supply arms would mark a policy shift for the United States, which has increased nonlethal aid but has been reluctant to take greater military action in Syria.
BUSINESS

Fed Holds Stimulus Steady, Citing 'Moderate' Growth

By BINYAMIN APPELBAUM
As expected, the Federal Reserve said on Wednesday that it would continue its stimulus campaign at the pace it has maintained since December.

Obama Nominates Congressman to Lead Mortgage Agency

By ANNIE LOWREY
President Obama named Representative Melvin L. Watt, Democrat of North Carolina, as the overseer of Fannie Mae and Freddie Mac, on Wednesday.

Mobile Efforts Help Propel Facebook Earnings

By SOMINI SENGUPTA
Facebook reported that about 30 percent of its total advertising revenue came from mobile devices, a significant jump from the last quarter.
TECHNOLOGY

Craving Wi-Fi, Preferably Free and Really Fast

By SUSAN STELLIN
Mobile devices grow more powerful by the day, and hotels, airports and airlines are struggling to keep up with customer demand for high-quality Wi-Fi service.

Telecommunications Investor Is Nominated to F.C.C.

By EDWARD WYATT
The nominee, Tom Wheeler, served as the chief lobbyist for industry trade groups a decade or more ago.

Comcast Net Income Rises 17%

By AMY CHOZICK
The company was helped by a 3.2 percent gain in new customers and higher revenue from cable bills, but NBCUniversal's revenue fell 2.4 percent.
SPORTS

In Dortmund, Proof That Teamwork Can Trump Talent

By ROB HUGHES
Real Madrid had the most dazzling individuals over the two legs of its Champions League semifinal with Dortmund, but the German club had the greater will.

Lions Will Have to Gel Quickly

By EMMA STONEY
Coach Warren Gatland has a lot of talent on his British and Irish Lions squad, but his biggest task is getting his All-Star lineup to play together as a team.

FIFA President Is Cleared

By THE ASSOCIATED PRESS
FIFA's president, Sepp Blatter, was cleared of criminal or ethical wrongdoing in a case involving millions of dollars in bribes for World Cup contracts.
U.S. NEWS

As Bombing Inquiry Proceeds, Obama Offers Measured Praise for F.B.I.

By SCOTT SHANE and ELLEN BARRY
Emphasizing that the investigation was still going on, the president suggested that the Tsarnaev brothers were "self-radicalized," making a potential plot harder to prevent.

Poll Finds Strong Acceptance for Public Surveillance

By MARK LANDLER and DALIA SUSSMAN
Americans overwhelmingly favor cameras in public, judging privacy curbs an acceptable price for greater security from terrorist attacks, according to a New York Times/CBS News poll.

Across the Country, Supporters Rally for Immigration Overhaul

By JULIA PRESTON
The May Day gatherings were intended to show Congress that momentum is building in favor of a path to citizenship for 11 million immigrants in the country illegally.
OPINION
Op-Ed Columnist

It's a 401(k) World

By THOMAS L. FRIEDMAN
In today's hyperconnected world, we all have to learn much more about investing in ourselves in order to succeed.
Opinionator

The Frankfurter Diaries

By MARK BITTMAN
We have an attachment to the foods of childhood, often against our better judgment.

U.S. stocks sink; Dow snaps 4-day win streak: Wall Street at Close Report May 1, 2013; MarketWatch.



By Kate Gibson, MarketWatch 
 

NEW YORK (MarketWatch) U.S. stocks declined Wednesday as the Federal Reserve said it would keep buying $85 billion in bonds each month, but may cut or increase the program depending on the economy. 

“They are hedging against some weak economic data,” Liz Ann Sonders, chief investment strategist at Charles Schwab, said of the Fed’s language which opened the door to raising its bond purchases. “I don’t think it suggests they are considering it,” she added. 

“For the most part, this is an expected nonevent,” Sonders said. 

The Federal Reserve’s policy statement followed a two-day meeting, with the central bank’s open market committee maintaining its monthly bond purchases at $85 billion and leaving its benchmark-interest-rate target unchanged at zero to 0.25%. 

“We are in this soft spot,” said Bill Stone, chief investment strategist at PNC Wealth Management in Philadelphia, referring to the U.S. economy. 

Reports Wednesday had private employers adding a less-than-anticipated 119,000 jobs last month, while separate data illustrated only tepid expansion in manufacturing in April. 

Retreating after a four-session advance that added 163 points, the Dow Jones Industrial Average DJIA -0.94% on Wednesday fell as much as 152 points, and ended down 138.85 points at 14,700.95. 



Keep your eye on Facebook
Polya Lesova highlights stocks to watch closely on Wednesday, including Facebook, which reports earnings after the bell. Photo: Getty Images 

Twenty-five of the Dow’s 30 components lost ground, including Merck & Co. MRK -2.79% . The drug maker reported quarterly revenue below market expectations and reduced its 2013 outlook. 

“Earnings have actually looked good, but revenue has certainly been light this quarter. The companies beating on earnings and revenue, which is of course a rare animal this quarter, are trading well, while the opposite is true of the others,” said PNC’s Stone. 

Of the 342 companies in the S&P 500 that have reported first-quarter earnings, 68.7% reported earnings above analyst expectations, according to Thomson Reuters. Of the 235 companies that surpassed their earnings estimates, 52% missed their revenue estimate. In a typical quarter, 31% of companies that beat on earnings miss on revenue, according to Greg Harrison, corporate earnings research analyst at Thomson Reuters. 

After closing April with a sixth straight monthly gain, its longest such stretch since September 2009, the S&P 500 index SPX -0.93% on Wednesday lost 14.87 points to 1,582.70, with commodities hardest hit of its 10 sectors.

Bloomberg Enlarge Image
Private-sector jobs growth slows in April.
The Nasdaq Composite COMP -0.89% retreated 29.66 points to 3,299.13. 

For every stock rising, more than two fell on the New York Stock Exchange, where 712 million shares traded. Composite volume neared 3.5 billion. 


Oil prices CLM3 -0.09% declined $2.43 to $91.03 a barrel after U.S. inventories hit an 82-year high and gold futures GCM3 +0.89% lost $25.90 to end at $1,446.20 an ounce on the New York Mercantile Exchange. 

The dollar DXY -0.14% lost ground against other currencies, including the yen USDJPY -0.07% , while Treasury prices rose, with the yield on the benchmark 10-year note 10_YEAR -0.12% down to 1.632%. 

“In a liquidity-driven market, cash flow is king. While stocks are fully priced by traditional measures, they are remarkably cheap through bond goggles,” wrote Jack Ablin, chief investment officer at BMO Private Bank. 

Apple Inc. AAPL -0.79%  is “the latest company to exploit the gaping valuation spread between bonds and stocks,” said Ablin, referring to the iPhone maker’s sale of $17 billion of debt on Tuesday in what amounted to the largest corporate bond offering ever. Read: Apple trading floods bond market.

Moving concerns

Chrysler Corp. reported an 11% increase in sales last month for its best April in six years. Ford Motor Co. F -1.69% , General Motors Co. GM -2.14% and Nissan also reported double-digit sales gains in April. 

MasterCard’s MA -2.37% shares declined 2.4% after the payments processor reported quarterly revenue slightly below expectations. 

Time Warner Inc. TWX -0.50% shares fell after the media company also reported revenue short of Wall Street estimates. 

Genworth Financial Inc. GNW +2.39% climbed after earnings more than doubled on better results by its home-loans department. 

Wednesday’s economic reports had Automatic Data Processing Inc. reporting private-sector jobs in April rose by a smaller-than-expected 119,000. Read more on ADP report.
 
The ADP report is “disappointing, and will probably lead most people to be more conservative on the payroll number on Friday,” said PNC’s Stone, referring to the government’s scheduled release of data on nonfarm payrolls for April. 

While “hardly a perfect guide to Friday’s payroll report, weakness in the [ADP] number is never welcome,” noted Dan Greenhaus, chief global strategist at BTIG LLC. 

And, the Institute for Supply Management’s manufacturing index fell to 50.7 in April, while a gauge of construction spending showed a 1.7% fall in March. Read: U.S. economy heads for another spring swoon. 
 
Kate Gibson is a reporter for MarketWatch, based in New York.

DealBook P.M. Edition May 1, 2013: The Trade: In Brown-Vitter Bill, a Banking Overhaul With Possible Teeth


NYTimes.com Home |Business Day| Video The New York Times


Wednesday, May 1, 2013
TOP STORY
Senators Sherrod Brown, left, and David Vitter are members of the Senate Banking Committee.
The Trade: In Brown-Vitter Bill, a Banking Overhaul With Possible Teeth Jesse Eisinger of ProPublica says that Senators Sherrod Brown and David Vitter introduced a bill that could be a barbaric yawp of anger at big banks or something with actual force.
For the latest updates, go to dealbook.nytimes.com »

DEALBOOK HIGHLIGHTS
Warren Buffett, chairman and chief executive of Berkshire Hathaway.
Berkshire Hathaway to Acquire the Rest of IMC for $2 Billion By buying the rest of IMC, an Israeli tool maker, from its founding Wertheimer family, Mr. Buffett is completing an acquisition that he began seven years ago.
French Efforts to Block Stake Sale of Start-Up to Yahoo Are Criticized The French government's objections to plans by Yahoo to buy a controlling stake in the video-sharing site DailyMotion has alarmed entrepreneurs in France.
Credit Suisse Is Said to Elevate 2 Investment Bankers Credit Suisse is said to have named Marisa Drew and Ewen Stevenson as co-heads of its investment banking operations in Europe, the Middle East and Africa.
Buzz Tracker
T-Mobile Completes Deal for MetroPCS T-Mobile's parent company, Deutsche Telekom, raised its bid last month. The combined company, T-Mobile US Inc., will begin trading on the New York Stock Exchange on Wednesday under the ticker TMUS.
LOOKING AHEAD
Economic Reports Data to be released on Thursday include the trade deficit for March and weekly initial jobless claims.
Corporate Earnings Companies scheduled to release quarterly results on Thursday include MGM Resorts, PG&E, Cardinal Health, Beazer Homes, Estée Lauder, the CME Group, Och-Ziff, HCA Holdings, Cigna, Fortress, Hillshire Brands, Kellogg, Kraft Foods, American International Group, Weight Watchers, LinkedIn and General Motors.
In the United States On Thursday, Lloyd C. Blankfein, chief executive of Goldman Sachs, will speak at a meeting of the Investment Company Institute.
Overseas On Thursday, the Asian Development Bank annual meeting begins outside New Delhi; Christine Lagarde, managing director of the International Monetary Fund, will speak along with others at the St. Gallen Symposium in Switzerland; and the European Central Bank will announce its decision on interest rates.
For the latest updates, go to dealbook.nytimes.com »

Quotation of the Day
"I'm sure France will be downgraded in foreign investors' eyes because they will think it is too complicated."
Frédéric Montagnon, co-founder of OverBlog, a blogging platform, on French efforts to block the sale of a start-up to Yahoo.