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Jul 4, 2013

Asian Markets latest News at the time by MarketWatch; July 04, 2013.

Asia

Hong Kong stocks jump, tracking European gains HONG KONG (MarketWatch) -- Hong Kong stocks marched higher Friday after European central banks indicated plans to keep an easy monetary policy, sparking a big rally in the region's equity markets, with gains spread across sectors. The Hang Seng Index jumped 1.6%, nearly erasing the losses accumulated during the week, while the Hang Seng China Enterprises Index added 2.1%. Forty-nine of the Hang Seng Index's 50 constituents rose. Among them, China Shenhua Energy Co. jumped 4.8%, footwear major Belle International Holdings Ltd. climbed 3.2% and China Overseas Land & Investment Ltd. advanced 2.5%. China's Shanghai Composite inched up 0.2%.  
 
Growth in emerging markets slows in June: HSBC LOS ANGELES (MarketWatch) -- Stagnant output in China contributed to a slower pace of growth in emerging markets in June, according to a monthly report from HSBC. The HSBC Emerging Markets Index fell to 50.6 last month, the lowest rate of growth in more than four years. The index was at 51.3 in May. A reading of 50 and above indicates expansion. Manufacturing production in China decreased for the first time since August 2012, while services activity logged a mild increase, according to the report, which tracks Purchasing Managers' Index surveys in 16 countries. HSBC said the reading of 49.5 in its manufacturing sub-component implied contraction in factory activity for the first time since October 2012. HSBC's Emerging Markets Future Output Index, tracking business expectations for activity in 12 months' time, fell in June to its lowest level in 15 months of data collection to date.



Singapore's Temasek keeps faith with U.S., China SINGAPORE -- Temasek Holdings Pte. Ltd., Singapore's state investment company, said Thursday it is eager to capitalize on the gradual recovery it sees in the U.S., while keeping faith in China's economy and financial sector despite concerns over a recent cash crunch there. 51 min ago

The Economist I Editor's picks I Selected New Articles; July 4, 2013.


Thursday July 4th 2013 Editor's picksThis week we put Egypt on the cover, without enthusiasm. Some people—including many Egyptians—are cheering the ouster of the Islamist president, Muhammad Morsi. We think it a tragedy. It sets a dreadful precedent for the region, in that it encourages discontented people to get rid of their leaders by disrupting their rule, not by voting them out, and it encourages Islamists to distrust democracy. The army can mitigate the situation by holding elections swiftly and cleanly, but much damage has already been done.

John Micklethwait, Editor-in-Chie




Portugal teeters
The euro crisis, revived
The Portuguese government seems close to collapse
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Horrible name, interesting way of investing

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How to grow a new organ
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Politics this week
The UN began its peacekeeping mission in Mali, six months after France intervened to push out Islamist militants from the country’s north. The 12,000-strong force is the UN’s third-largest in the world. Half the troops are west Africans already there as part of the French-led intervention force. The rest are supposed to arrive by December.
SEE ARTICLE »

MORE FROM: POLITICS THIS WEEK »

Warren Mosler, a Deficit Lover With a Following : NYT I ALERTS: FGC BOLSA - FGC FINANCIAL MARKETS; July 26, 2013.

|  ALERTS

FGC BOLSA- FGC FIN

Compiled: July 4, 2013 08:07:46 PM

Warren Mosler, a Deficit Lover With a Following
From his home in the Virgin Islands, Mr. Mosler is waging a well-financed academic battle against economists who want to cut government spending.

ADVFN III Evening Euro Markets Bulletin; July 04, 2013.


ADVFN III Evening Euro Markets Bulletin
Daily world financial news Thursday, 04 July 2013

London Market Report
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RBS, easyJet, Randgold
Royal Bank of Scotland (RBS) gained following news its rivals were considering bids for its retail products and equity derivatives business. BNP Paribas, Commerzbank and Societe Generale are mulling over bids for some or all of the business, Bloomberg reported, citing people with knowledge of the matter.

easyJet rallied after the low-cost airline announced a 1.9% rise in passenger numbers in June.

Gold miner Randgold Resources gained after US broker Citigroup upgraded the stocks to ‘neutral’ from ‘sell’ on Thursday, citing the group’s debt-free position and the potential of new mine Kibali.

On the downside, Schroders dipped as the asset manager said it has launched sterling hedged share classes on two of its European funds and two Japan-focused products.

Security services company G4S slumped after Deutsche Bank reiterated a ‘hold’ rating in a note issued to investors on Wednesday.

Whitbread plunged after it unveiled a new city-centre hotel concept with bedrooms half the size of those in its existing Premier Inn chain.

FTSE 100 - Risers
Babcock International Group (BAB) 1,132.00p +4.24%
Rio Tinto (RIO) 2,756.50p +4.06%
Royal Bank of Scotland Group (RBS) 280.80p +4.00%
easyJet (EZJ) 1,372.00p +3.94%
Randgold Resources Ltd. (RRS) 4,347.00p +3.90%
GKN (GKN) 319.70p +3.87%
Rolls-Royce Holdings (RR.) 1,182.00p +3.87%
Wolseley (WOS) 3,161.00p +3.81%
Persimmon (PSN) 1,259.00p +3.79%
Tate & Lyle (TATE) 848.00p +3.73%

FTSE 100 - Fallers
Schroders (SDR) 2,227.00p -1.24%
British Sky Broadcasting Group (BSY) 811.00p -0.37%
G4S (GFS) 226.30p -0.04%
Whitbread (WTB) 3,120.00p 0.00%
Travis Perkins (TPK) 1,515.00p +0.26%
IMI (IMI) 1,299.00p +0.31%
Imperial Tobacco Group (IMT) 2,280.00p +0.57%
Reckitt Benckiser Group (RB.) 4,735.00p +0.62%
William Hill (WMH) 454.70p +0.62%
Experian (EXPN) 1,153.00p +0.70%




Centamin surges after Egyptian President ousted
Gold miner Centamin saw shares jump by nearly a fifth on Thursday after the President of Egypt, where its flagship Sukari mine is located, was ousted by the military. Centamin has been involved in a legal dispute with Egypt’s administrative court since the government came into power, regarding the validity of its Sukari licence.

Analysts at Investec said today that while the political chaos in the country is “unsettling”, it may not be necessarily bad for Centamin which had only encountered tenure issues since Mohamed Mursi was elected. “Providing protests and disruptions do not result in fuel or explosives issues for the mine, CEY could continue as normal throughout this uncertainty,” they said.

Housebuilders were also performing well this afternoon after a series of upbeat trading updates. Taylor Wimpey rose after trading at the upper end of company expectations during the first half of its financial year, following improvements across most of its markets in the UK.

Redrow said that full-year profit will be above the top end range of market expectations, while Galliford Try reported that it had delivered record annual profits, in line with consensus forecast. Sector peers Bellway and Barratt Developments were also in demand.

Pizza delivery chain Domino’s was in the red, extending losses after its second-quarter trading update yesterday in which it warned that annual losses at its German business would be higher than expected.


FTSE 250 - Risers
Centamin (DI) (CEY) 37.00p +18.78%
Lonmin (LMI) 278.40p +7.08%
Taylor Wimpey (TW.) 103.80p +7.07%
Barratt Developments (BDEV) 337.10p +6.01%
Polymetal International (POLY) 509.50p +5.82%
Redrow (RDW) 234.70p +5.72%
Bellway (BWY) 1,378.00p +5.43%
Daejan Holdings (DJAN) 3,920.00p +4.81%
Hiscox Ltd (HSX) 602.00p +4.79%
Thomas Cook Group (TCG) 142.40p +4.78%

FTSE 250 - Fallers
Alent (ALNT) 348.90p -1.30%
Domino's Pizza Group (DOM) 637.50p -0.62%
Barr (A.G.) (BAG) 511.50p -0.58%
Countrywide (CWD) 537.00p -0.56%
United Drug (UDG) 328.30p -0.52%
Menzies(John) (MNZS) 701.50p -0.50%
COLT Group SA (COLT) 99.50p -0.50%
Xaar (XAR) 777.00p -0.38%
F&C Asset Management (FCAM) 94.75p -0.26%
Kier Group (KIE) 1,212.00p -0.16%




European Market Report
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European Stocks To Open Higher Ahead Of Policy Meetings
European stocks are set to open higher on Thursday as investors wait for the outcome of the ECB and BoE rate decisions for direction. The European Central Bank is widely expected to leave interest rates unchanged, but President Mario Draghi may repeat a dovish stance to calm markets rattled by a political crisis in Portugal and lingering uncertainty surrounding Federal Reserve policy.

The Bank of England is also expected to maintain its status quo on interest rates as Mark Carney chairs his first rate-setting meeting as governor of the central bank. Trading activity may be somewhat subdued due to the Independence Day holiday in the U.S. and amid caution ahead of Friday's monthly jobs report, which may offer some clues on the timing of the Federal Reserve's plan to start scaling back its massive bond-buying program.

Egypt's armed forces have removed President Mohammed Morsi from power on Wednesday evening and said they would install a temporary civilian government to meet people's aspirations. Meanwhile, Portugal's Prime Minister Pedro Passos Coelho defied calls to resign, saying he will resolve the political crisis quickly.

The European Parliament has voted to approve Latvia's entry into the single-currency eurozone on January 1, 2014, as recommended by the European Parliament. The recommendation was passed on Wednesday in a 613 to 67 vote with 29 abstentions. Separately, the European Parliament approved by a show of hands a draft law to protect small investors against investment funds that take excessive or unnecessary risks with their money. The law clarifies who is liable for mismanagement of funds and tailors fund managers' remuneration rules to encourage them to take reasonable risks and a long-run view.

Asian stocks are trading mostly higher as better-than-estimated U.S. jobs data bolstered optimism the recovery was gaining traction.

In corporate news, Swiss food and nutrition products giant Nestle S.A. and French dairy giant Danone plan to cut prices of infant formula milk in China after the country started a probe into possible price-fixing and violation of anti-monopoly laws by foreign companies in the sector, media reports suggest. European stocks ended Wednesday's session off their day's lows, thanks to positive economic data out of the U.S. Portugal's borrowing costs shot up amid fears of a growing political crisis in the country and the situation in Egypt remained fluid, keeping investors nervous. Key benchmark indexes in Germany, France and the U.K. fell over a percent each.

U.S. stocks rose modestly overnight as encouraging reports on jobless claims and private-sector job growth outweighed weak Chinese data and worrying developments elsewhere in Portugal and Egypt. The U.S. service sector continued to expand in June, although the pace of growth unexpectedly slowed compared to the previous month, a report from the Institute for Supply Management showed. The Dow rose 0.4 percent, the tech-heavy Nasdaq added 0.3 percent and the S&P 500 inched up 0.1 percent.

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US Market Report
Due to the forth of July the US Markets are closed.




Broker Tips
Aberdeen Asset Management: JP Morgan reduces target from 573p to 476p and reiterates its overweight rating.

Ashmore Group: JP Morgan cuts target from 410p to 339p maintaining a neutral rating.

ASOS: Jefferies raises target from 2199p to 6200p and upgrades from underperform to buy.

Brown (N) Group: HSBC Holdings ups target from 485p to 500p keeping an overweight rating.

Charlemagne Capital: JP Morgan shifts target from 10p to 8p and stays with its underweight rating.

Cineworld: JP Morgan ups target from 346p to 368p reiterating an overweight rating.

easyJet: HSBC Holdings raises target from 1400p to 1500p and stays with an overweight rating.

EnQuest: Canaccord Genuity ups target from 155p to 184p and upgrades from hold to buy.

Experian: Canaccord Genuity increases target from 898p to 985p, but still recommends selling.

Faroe Petroleum: Canaccord Genuity cuts target 190p to 128p and downgrades from buy to hold.

F&C Asset Management: JP Morgan reduces target from 154p to 102p, while leaving its neutral rating unchanged.

Galliford Try: Panmure Gordon ups target from 830p to 870p, but still recommends selling.

Hays: HSBC Holdings moves target from 106p to 93p, while its neutral rating is kept.

Henderson Group: JP Morgan cuts target from 173p to 159p and leaves its neutral rating unaltered.

ICAP: Espirito Santo increases target from 270p to 353p upgrading to neutral.

Ithaca: Canaccord Genuity takes target from 180p to 205p keeping a buy recommendation.

Johnson Service Group: Investec shifts target from 48p to 52p and stays with its buy recommendation.

Jupiter Fund Management: JP Morgan reduces target from 399p to 317p maintaining an overweight rating.

Lancashire: JP Morgan raises target from 800p to 832p and retains a neutral rating.

Liontrust Asset Management: JP Morgan shifts target from 193p to 198p keeping an underweight rating.

Lloyds Banking Group: Nomura ups target from 45p to 61p and upgrades from reduce to neutral.

Man Group: JP Morgan increases target from 85p to 108p, while its neutral rating remains unaltered.

Mountfield Group: WH Ireland initiates with a target of 2p and a buy recommendation.

Michael Page: HSBC Holdings takes target from 414p to 432p reiterating a neutral rating.

NCC Group: Canaccord Genuity moves target from 155p to 175p and keeps a buy recommendation.

Record: JP Morgan lowers target from 45p to 40p and retains an overweight rating.

Rentokil Initial: HSBC Holdings shifts target from 77p to 83p, while its underweight rating is maintained.

Spirent Communications: Citi moves target from 165p to 150p, while keeping a buy recommendation. JP Morgan increases target from 128p to 152p and maintains its neutral rating. Morgan Stanley revises target from 120p to 110p leaving its equal-weight rating unchanged. N+1 Singer lowers target from 140p to 130p and retains its neutral rating. Deutsche Bank moves target from 125p to 110p, while its hold recommendation is kept.

Taylor Wimpey: Panmure Gordon shifts tarfet price from 72p to 79p retaining a sell recommendation.

Tullow Oil: Bank of America raises target from 1570p to 1631p and keeps a buy recommendation.

Vectura Group: N+1 Singer initiates with a target of 91p and a buy recommendation.

QEternity for Europe and UK: GATA I THE GATA DISPATCH; July 04, 2013.

QEternity for Europe and UK

Draghi Says ECB Rate to Stay Low for 'Extended Period'
By Simon Kennedy and Jana Randow
Bloomberg News
Thursday, July 4, 2013

http://www.bloomberg.com/news/2013-07-04/draghi-says-ecb-rate-to-stay-lo...

President Mario Draghi said the European Central Bank expects to keep interest rates low for an "extended period" as he tries to restrain market borrowing costs, in a new departure for an institution averse to setting policy in advance.

With ECB officials today leaving their main refinancing rate at 0.5 percent, Draghi fleshed out their outlook for monetary policy after investors pushed up long-term bond yields, threatening the region's economic recovery. The statement came on the same day that the Bank of England also tried to manage investor expectations in Mark Carney's first week as governor.

"The Governing Council expects the key ECB interest rates to remain at present or lower levels for an extended period of time," Draghi said at a press conference in Frankfurt. "What the Governing Council did today was to inject a downward bias in interest rates for the foreseeable future. Our exit is very distant."

 Stocks and bonds rose, while the euro fell after the comments. The remarks followed a surge in Portugal's 10-year bond yield above 8 percent for the first time since November and a signal from the Federal Reserve that it may soon pull back monetary stimulus.

"This is as dovish as the ECB can get without actually acting," said Christoph Rieger, head of fixed-rate strategy at Commerzbank AG in Frankfurt. "The new ECB stance should give investors comfort that the upside to yields is limited at current levels."

The ECB chose words over deeds after an "extensive discussion" about cutting interest rates, and the support for the new language was unanimous, according to Draghi. He said the bank kept an open mind on whether to cut the deposit rate below zero.

"The Governing Council had all options on the table this month and will keep them there in case things worsen again," said Christian Schulz, senior economist at Berenberg Bank in London. "This time they decided against another rate cut and decided to stage a mini revolution by introducing forward guidance instead."

The Stoxx 600 Index was 2.4 percent higher at 292.24 at 4:18 p.m. in Frankfurt. The euro declined to as low as $1.2883 from $1.2985 before the press conference. The yield on Portugal's 10-year bond yield, which yesterday climbed as high as 8.11 percent, slid to as low as 7.11 percent.

By using so-called forward guidance, Draghi's aim is to persuade investors that the ECB has no plans to end its easy policy stance so they in turn will keep longer-term rates low, paving the way for consumers and households to borrow cheaply and bolster economic activity. Historically, Draghi and predecessor Jean-Claude Trichet have said that the ECB "never precommits" to any future monetary policy.

Draghi said the reason for taking what he called an "unprecedented" step was the ECB's expectation that the subdued outlook for inflation will extend into the medium-term amid broad-based weakness in the 17-nation euro-area economy.

"The risks surrounding the economic outlook for the euro area continue to be on the down side," Draghi said, pointing to recent tightening in global financial conditions as one threat.

While all 23 members of the council agreed on the new strategy, Draghi declined to specify a time frame for the "extended period" and said several forms of guidance were debated.

The ECB hasn't built formal frameworks or set specific economic targets for when policy makers assess the course of rates, according to an official familiar with the central banks deliberations. Instead, ECB officials will rely on the central bank's traditional "two pillar" approach, a setup that looks at both money supply and a range of economic indicators, the person said.

At the same time, Carney and colleagues in the U.K. signaled they'll keep their key rate at 0.5 percent for longer than investors expected. The "implied rise in the expected future path of bank rate was not warranted by the recent developments in the domestic economy," the BOE said in a statement.

While euro-area unemployment rose to a record 12.2 percent in May, other indicators have signaled the economy may recover under current monetary policy given time. Confidence in the currency bloc jumped to the highest level in more than a year in June, a gauge of manufacturing and services output improved for third month and industrial output rose for a third month in April.

Still, financial conditions have recently tightened across the continent, posing a danger to the recovery. Bond yields in Portugal spiraled this week after the resignation of two of the nation's ministers sparked concern austerity fatigue will derail fiscal reforms. Yields also climbed in Italy and Spain while declining in Germany, extending increases which accelerated after Chairman Ben S. Bernanke signaled his Fed may soon start curtailing its $85 billion of monthly asset-purchases.

With interest rates at or near rock-bottom levels, central banks have embraced more open communications about their thinking in the hope markets will respond. In March, Draghi said for the first time that policy "will remain accommodative for as long as needed."

The ECB's commitment today is nevertheless not as clear as those made elsewhere. As governor of the Bank of Canada, Carney pledged in April 2009 to keep its key rate at a record low until mid-2010. In December, Bernanke's Fed introduced unemployment and inflation thresholds to govern when it could raise its benchmark from near zero.

* * *

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U.K. stocks soar in wake of BOE statement: European Markets at Close Report by MarketWatch; July 04, 2013.

By Barbara Kollmeyer, MarketWatch 
 
MADRID (MarketWatch) An unexpected statement from the Bank of England’s Monetary Policy Meeting on Thursday boosted stocks and weighed on the pound after the bank held policy steady. An equally dovish comment from the European Central Bank underpinned those gains. 

Chairing his first meeting, new Governor Mark Carney surprised analysts by including a statement with that decision, the contents of which analysts interpreted as a sign that near-term rate hikes were not on the cards. 


After Morsi Ouster, What Comes Next for Egypt?
Nancy Messieh of the Atlantic Council joins WSJ Middle East bureau chief Bill Spindle and Simon Constable to discuss the ouster of Egyptian President Mohammed Morsi by the military and what comes next for the country and the Middle East. Photo: AP.

Adding to earlier gains, the FTSE 100 index UK:UKX +3.08% soared 3% to 6,419.62, driven by resource and bank stocks. The index closed down over 1% on Wednesday, which was the biggest one-day percentage fall since June 24 amid geopolitical tensions.

“In the United Kingdom, there have been further signs that a recovery is in train, although it remains weak by historical standards and a degree of slack is expected to persist for some time,” the MPC said in the statement released on the Bank of England’s website. 

The statement also floated the idea of using forward guidance at the next meeting in August. “The BoE doesn’t usually release a statement alongside the rate decision but as this was Carney’s first meeting in charge, they decided to make an exception,” said Craig Erlam, market analyst with Alpari U.K. 

“The statement was definitely taken as dovish, sterling has still not recovered its earlier losses, while the FTSE is now 3% higher,” he added in emailed remarks. “I would be very surprised now if we didn’t see some forward guidance on interest rates at the next meeting in August.” 

The British pound GBPUSD -1.42%  dropped 1.3% against the U.S. dollar to $1.50719, which some observers said was the biggest drop since February. 

Underpinning gains for London, ECB President Mario Draghi said euro-zone interest rates will remain low or go even lower for “an extended period of time” at a press conference. The central bank left key interest rates unchanged, but Draghi’s comments rallied European markets and made a big dent in the euro versus the dollar EURUSD -0.68%


Getty Images Enlarge Image
Mark Carney talks to Mario Draghi, President of the European Bank they take part in the family photo for the G7 finance ministers and central bank governors meeting on Friday May 10, 2013 in Aylesbury, England.
Heavyweight bank HSBC Holdings PLC HBC -0.72%   UK:HSBA +4.48%  rose 4.5%, and Barclays PLC UK:BARC +4.26%   BCS +1.06% , which was hit by a Standard & Poor’s Ratings downgrade the prior day, jumped 5%. 

Mining stocks did plenty of heavy lifting for the index, with BHP Billiton PLC BHP -2.16% UK:BLT +3.53%  up 4%, Rio Tinto PLC RIO -0.57%   UK:RIO +4.10%  surging 4.5%, and Anglo American PLC UK:AAL +4.64%  rising 5%. Those gains came as metals prices eased somewhat in electronic trading. 

Data in the U.K. showed house prices rising to nearly a three-year high in June. Home builders such as Persimmon PLC UK:PSN +4.37%  rose over 4%, while away from the main index, Taylor Wimpey PLC UK:TW +7.07%  soared over 6%. 

News of an interim president appointed in Egypt and signs that Portugal’s government may survive the current crisis also sent investors back into perceived riskier assets on Thursday. 

Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @MWBarbaraKollmeyer.

Europe Closes Higher on ECB, BoE Guidance: European markets at Close report by CNBC; July 04, 2013.


European shares rallied to close higher on Thursday after the Bank of England (BoE) and the European Central Bank (ECB) both gave guidance for the first time on the path for future monetary policy.
  Name Price   Change %Change Volume
FTSE FTSE 100 Index 6421.03
 191.16         3.07% 674103325
DAX DAX Index 7991.19
161.87     2.07% 96084414
CAC 40 CAC 40 Index 3801.38
99.37     2.68% 85125749
IBEX 35 IBEX 35 Idx 7995.00
231.20     2.98% 173592182

The pan-European FTSEurofirst 300 Index closed up 2.4 percent at 1,178.42 after both central banks kept benchmark rates unchanged at record low of 0.5 percent but indicated that monetary policy would continue to be low.

The Bank of England warned that rising bond yields would weigh on its current outlook for growth and suggesting that heightened expectations among investors of a tightening in policy were not warranted.

ECB president Mario Draghi also provided forward guidance on the future of monetary policy. Draghi explicitly pledged to keep key interest rates at current levels or lower for "an extended period of time." The decision was supported unanimously by the ECB.

Both sterling and euro fell sharply against the dollar in early afternoon trading.
(Read More: BoE Holds Fire as Carney Reign Begins)

U.S. markets were shut for the Independence Day public holiday, but U.S.stock futures climbed sharply following the news from the ECB and BoE, with the Dow Jones Industrial average futures pointing to a gain of 184 points, with the S&P futures indicating a 15 point increase.
Meanwhile, the Portuguese PSI 20 rose 3.7 percent on Thursday after closing down 5.2 percent on Wednesday on growing political uncertainty. Wednesday's drop followed the resignation of two key ministers from the nation's coalition government.

(Follow Our Live Blog: Markets, Portugal and ECB Decision)

Portugal's Prime Minister Pedro Passos Coelho said there was no reason why the government should fall after the resignations. The country banned short-selling of three bank stocks, Dow Jones reported, as political parties met to try to defuse the crisis.


(Read More: ECB, Not Portugal, Is Main Threat to Euro)

Egypt's EGX index closed up 7.3 percent on Thursday after Egyptian President Mohammed Morsi was ousted by the army on Wednesday evening, causing widespread celebrations in cities of Cairo and Alexandria.

European Markets Latest News by Marketwatch; July 04, 2013.

Europe

Europe stocks add to gains on ‘dovish’ BOE European stock markets rebound on Thursday, a day after markets saw sharp losses on political unease in Portugal and Egypt. Investors looked ahead to decisions from the ECB and BoE with the U.S. closed for a holiday.  

 
U.K. stocks jump on surprise statement from BOE London stocks pour on gains after surprise statement from Bank of England leads some to expect no rate hikes in the near term. Pound drops sharply.  

 
ECB keeps main lending rate unchanged at 0.5% LONDON (MarketWatch) - The European Central Bank, as expected, kept its main lending rate at a record low 0.5% on Thursday, the same level it's been at since it was cut from 0.75% back in May. That marked the first cut in 10 months. The ECB left its deposit rate, which it pays banks on reserves held at the central bank, at zero. ECB President Mario Draghi will hold a press conference that begins at 8:30 a.m. Eastern Time.

Yahoo acquires email management app Xobni: Reuters I Deals Today; July 04, 2013.


Yahoo acquires email management app Xobni SAN FRANCISCO (Reuters) - Yahoo Inc acquired email and address book management app Xobni, the Internet company's third acquisition in as many days as it seeks to revamp its online products and boost its Web traffic.

FCC approves Sprint-Clearwire-SoftBank deal: sources WASHINGTON (Reuters) - U.S. regulators on Wednesday collected the final vote to approve the merger of Sprint Nextel Corp and SoftBank Corp , sources familiar with the situation said, clearing the last hurdle in the Japanese company's drawn-out battle to take control of the No. 3 U.S. wireless provider.


Exclusive: Francisco Partners plans GXS IPO after exploring sale NEW YORK (Reuters) - Buyout firm Francisco Partners LP said on Wednesday that GXS Worldwide Inc, the provider of electronic commerce services it has majority control of, was planning an initial public offering after it explored an outright sale of the company.

Investors press Dell on 'Plan B' as buyout bid totters NEW YORK (Reuters) - Some Dell Inc shareholders said on Wednesday they are pressuring the board to come up with a contingency plan should a proposed $24.4 billion buyout of the No. 3 PC maker fail in the face of investor opposition.

 Chesapeake closes capex gap with $1 billion asset sale to Exco (Reuters) - Chesapeake Energy Corp is selling assets in the Eagle Ford and Haynesville shales in the United States to Exco Resources Inc for about $1 billion to shore up finances battered by years of low gas prices and heavy spending.

Exclusive: States join U.S. probe of Cargill/ConAgra flour deal WASHINGTON (Reuters) - A group of wheat-growing states has joined the U.S. Justice Department in investigating a proposed joint venture by Cargill, CHS and ConAgra, which would make the largest U.S. flour miller even larger, two sources told Reuters.

Big shareholder Crest ends battle with Sprint over Clearwire (Reuters) - Crest Financial, which owns a big stake in Clearwire Corp, said on Wednesday it is backing Sprint Nextel Corp's purchase of the rest of Clearwire, ending a protracted and noisy fight over the wireless service provider.

Cerberus CEO drops stalking horse bid for Freedom Group: source NEW YORK (Reuters) - Stephen Feinberg has scrapped a bid for the maker of the Bushmaster rifle, which his private equity firm, Cerberus Capital Management LP, put up for a sale after one of its guns was used in the Newtown, Connecticut school shooting in December, a person familiar with the matter said on Wednesday.


Warner Chilcott markets $4.4 billion deal
NEW YORK (Reuters) - Specialty pharmaceutical Warner Chilcott Plc is in market with $4.4 billion in credit facilities that will refinance and combine debt following the company's acquisition by drug manufacturer Actavis Inc , sources told Thomson Reuters LPC.


Samsung Electronics acquires TV DVR start-up Boxee (Reuters) - Samsung Electronics has acquired TV digital recording device company Boxee, the South Korean manufacturer said on Wednesday.

Carney Unlikely To Trigger Policy Action At His First BoE Meeting: RTTNews Forex Top Stories; July 04, 2013.

Forex Top Story


Boechart-preview-070413.jpg Bank of England's New Governor Mark Carney is unlikely to initiate any immediate policy change at his first monetary policy committee meeting that started Wednesday. Expectations are high on his arrival, with markets keenly waiting for better communication and interest rate guidance.


EuropeanEconomicsPreview-070413.jpg Both the European Central Bank and the Bank of England are set to announce their interest rate decision on Thursday.


EURUSD1-070313.jpg The dollar is losing ground against all of its major competitors on Wednesday. Equity markets will close early in the U.S. today and will be closed all day Thursday for the Fourth of July holiday. Investors will be watching for news from the monetary policy meetings of the ECB and the BoE on Thursday,...


ismnonman-070313.jpg Economic activity in the U.S. service sector continued to expand in the month of June, according to a report released by the Institute for Supply Management on Wednesday, although the pace of growth unexpectedly slowed compared to the previous month. The ISM said its non-manufacturing index dropped to 52.2 in June from 53.7 in May, with a reading above 50 indicating growth in the service sector.


TradeBalance-070313.jpg With exports falling and imports rising, the Commerce Department released a report on Wednesday showing that the U.S. trade deficit widened by much more than anticipated in the month of May. The report said the trade deficit widened to $45.0 billion in May from a revised $40.1 billion in April. Economists had expected the deficit to widen to $40.8 billion.


joblessclaims-070313.jpg In an upbeat sign for the labor market, the Labor Department released a report on Wednesday showing another modest decrease in first-time claims for U.S. unemployment benefits in the week ended June 29th. The report said initial jobless claims dipped to 343,000, a decrease of 5,000 from the previous week's revised figure of 348,000.


PortugalFlag-070313.jpg Portugal's borrowing costs surged on Wednesday following the back-to-back resignation of ministers from Prime Minister Pedro Passos Coelho's coalition government that risks early election in the country that is struggling hard to keep austerity measures on track. The yield on Portugal's benchmark 10-year bonds exceeded 8 percent early today, the highest since November.


ADP-070313.jpg Employment in the U.S. private sector rose by more than anticipated in the month of June, according to a report released by payroll processor Automatic Data Processing, Inc. (ADP) on Wednesday. ADP said private sector employment increased by 188,000 jobs in June following a downwardly revised increase of 134,000 jobs in May.


UKServicesPMI-070313.jpg U.K.'s service sector recorded its strongest growth in more than two years in June as new business increased sharply, defying economists' forecast for a slowdown. The data adds to the bullish outlook for the economy from positive survey evidence the came out in recent weeks, signaling stronger growth for the second quarter.


UKShopping-070313.jpg Shop price inflation in the UK declined in June at the fastest pace since February 2007 as volatile weather pushed down non-food costs, the British Retail Consortium (BRC) said in a report on Wednesday. The BRC-Nielsen shop price index declined 0.2 percent year-on-year in June, the biggest fall since February 2007. This followed 0.1 percent drop in May. Prices fell for a second consecutive month.


EuropeanEconomicsPreview-070313.jpg Retail sales and final Purchasing Managers' survey from euro area are due on Wednesday, headlining a light day for the European economic news.


Chinaservicesector-070313.jpg The service sector in China saw subdued business activity in June, reflecting weak inflow of new orders, two separate surveys revealed on Wednesday. The purchasing managers' index for China's non-manufacturing sector fell to 53.9 in June from 54.3 in May, the results of a survey conducted jointly by the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed.


trade.jpg Australia posted a seasonally adjusted merchandise trade surplus of A$670 million in May, the Australian Bureau of Statistics said on Wednesday - up 292 percent on month. The headline figure blew away forecasts for a surplus of A$53 million following the upwardly revised A$171 million surplus in April...


EURUSD1-070213.jpg The dollar is gaining ground against all of its major competitors on Tuesday. With the Fourth of July holiday drawing near, investors have turned cautious ahead of Thursday's meetings for both the European Central Bank and the Bank of England. The all important U.S. jobs report for June will also be...


factoryorders-070213.jpg New orders for U.S. manufactured goods rose by slightly more than expected in the month of May, according to a report released by the Commerce Department on Tuesday, with the increase largely due to a jump in orders for transportation equipment. The Commerce Department said factory orders surged up by 2.1 percent in May following an upwardly revised 1.3 percent increase in April.

ADVFN III Morning Euro Markets Bulletin; July 04, 2013.


ADVFN III Morning Euro Markets Bulletin
Daily world financial news Thursday, 04 July 2013


London Market Report
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Stocks rise as eyes turn to BoE, ECB
The FTSE 100 rebounded strongly on Thursday morning after a sell-off the day before, as traders took advantage of thin volumes with markets in the States shut for Independence Day.

The Bank of England (BoE) and European Central Bank policy decisions will be in focus today with little economic data elsewhere to detract investors' attention.

Both parties are widely expected to leave current monetary policies unchanged, though this afternoon's press conference with ECB chief Mario Draghi will be closely watched, given the uneasy political situation in Portugal after the resignation of two senior ministers over recent days.

The conference "will see the market test Draghi’s whatever-it-takes pledge in case the situation in Portugal deteriorates and the country needs financial assistance", according to Market Strategist Ishaq Siddiqi from ETX Capital. Traders are also likely be on edge ahead of the all-important US jobs report scheduled for Friday afternoon, an event that it likely to factor into the Federal Reserve's decision on whether or not to begin 'tapering' stimulus.

Meanwhile, crude prices remained elevated this morning, with West Texas Intermediate trading near a 14-month high, on concerns over supply from the Middle East after the removal of Egyptian President Mohamed Morsi by the military. Unrest across the country has prompted fears that the flows along the Suez Canal and Suez-Mediterranean Pipeline could be affected.

FTSE 100: easyJet flying high after traffic numbers
Budget airline easyJet advanced after reporting a 1.9% increase in passenger numbers in June. Investors were shrugging off the news that the airline cancelled 585 flights during the month, compared to 22 flights a year ago, due to the French Air Traffic Control strike.

Wood Group was performing well after securing its sixth major North Sea contract extension this year. It has won a three-year contract from Nexen Petroleum UK to deliver operations, maintenance and technical support services to the Scott and Buzzard platforms.

Banks were also providing support this morning after upbeat comments from Nomura, which said that optimism within the housing sector is building, "a positive sign for the performance of banks". The broker upgraded Lloyds to 'neutral', but continued to label HSBC as its top pick. RBS and Barclays were also trading higher this morning.

FTSE 250: Housebuilders jump early on
British housebuilder Redrow surged after saying that its full-year profit will be above the top end range of market expectations as revenue rose 26% to £604.8m. The company said results for the year to June 30th were driven by a 15% increase in the number of homes legally completed to 282.

Housebuilder Taylor Wimpey also rose after trading at the upper end of company expectations during the first half of its financial year, following improvements across most of its markets in the UK. Sector peers Bellway and Barratt Developments also advanced this morning.

However, Galliford Try was bucked the trend, slipping into the red despite saying that it has delivered record profits this year.

FTSE 100 - Risers
GKN (GKN) 314.60p +2.21%
BG Group (BG.) 1,128.00p +2.04%
Tate & Lyle (TATE) 833.50p +1.96%
Royal Bank of Scotland Group (RBS) 274.90p +1.81%
Barclays (BARC) 285.50p +1.69%
Wood Group (John) (WG.) 834.00p +1.58%
Shire Plc (SHP) 2,128.00p +1.58%
SABMiller (SAB) 3,166.00p +1.57%
Rio Tinto (RIO) 2,689.00p +1.51%
Marks & Spencer Group (MKS) 447.90p +1.50%

FTSE 100 - Fallers
Reckitt Benckiser Group (RB.) 4,654.00p -1.10%
Capita (CPI) 987.00p -0.45%
CRH (CRH) 1,289.00p -0.23%
Whitbread (WTB) 3,113.00p -0.22%
Hammerson (HMSO) 501.00p -0.20%
British Sky Broadcasting Group (BSY) 812.50p -0.18%
Pearson (PSON) 1,194.00p -0.08%
G4S (GFS) 226.30p -0.04%

FTSE 250 - Risers
Centamin (DI) (CEY) 35.37p +13.55%
Redrow (RDW) 230.00p +3.60%
Taylor Wimpey (TW.) 100.00p +3.15%
Fidessa Group (FDSA) 1,948.00p +2.63%
Crest Nicholson Holdings (CRST) 331.30p +2.25%
Bellway (BWY) 1,335.00p +2.14%
Mondi (MNDI) 827.50p +2.10%
Computacenter (CCC) 481.10p +2.04%
ITE Group (ITE) 306.10p +2.03%
Barratt Developments (BDEV) 324.20p +1.95%

FTSE 250 - Fallers
Dunelm Group (DNLM) 925.00p -2.48%
COLT Group SA (COLT) 98.00p -2.00%
Domino's Pizza Group (DOM) 631.00p -1.64%
Hochschild Mining (HOC) 160.90p -1.59%
Alent (ALNT) 348.90p -1.30%
Rank Group (RNK) 152.00p -1.30%
Caledonia Investments (CLDN) 1,803.00p -1.21%
United Drug (UDG) 326.30p -1.12%
IP Group (IPO) 138.00p -1.08%
Rathbone Brothers (RAT) 1,574.00p -0.94%

UK Event Calendar
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INTERIMS
Low & Bonar

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
ECB Interest Rate (EU) (12:45)
GDP (2nd release) (EU) (10:00)
Initial Jobless Claims (US) (13:30)

FINALS
NCC Group

AGMS
Beowulf Mining, Great Portland Estates, NewRiver Retail Ltd. (Reg S), TEP Exchange Group

TRADING ANNOUNCEMENTS
Namakwa Diamonds Ltd. (DI), Taylor Wimpey, Taylor Wimpey

UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
New Car Registrations (09:30)

FINAL DIVIDEND PAYMENT DATE
Cineworld Group, NMC Health

US Market Report
Stocks rise on day before July 4th celebrations
Dow Jones Industrials: 0.38%
Nasdaq Composite: 0.31%
S&P 500: 0.06%

The main US equity benchmarks finished today’s shortened session slightly higher ahead of tomorrow’s July 4th holiday.

Somewhat surprisingly, equities managed to dodge the downdraft from European markets as a result of the heightened political tensions in Portugal. Nevertheless, Wall Street’s apparent resilience may have something to do with the fact that many traders were away from their desks due to the above holiday, today and tomorrow.

Related to the political shift in Portugal, shares in Bank of America and Citigroup were initially knocked lower by rating agency Standard&Poor’s downgrade of the long-term counter-party ratings for three European lenders overnight Barclays, UBS and Deutsche Bank.

Aluminium provider Alcoa was downgraded by analysts at JP Morgan to neutral from overweight. The company will kick-off the next quarterly earnings season on July 8th, after the close of trading.
The multimillionaire founder of Martha Stewart Living Omnimedia agreed to have her annual pay cut by 10%. Writing in today’s Financial Times James Mackintosh calls attention to how US homebuilders’ shares have dropped sharply in the last six weeks, as mortgage rates rose to 4.6% from 3.4%. Until then their share price had tended to rise in-line with those same interest rates.

Auto stocks got a bid after last night's monthly sales data for the main manufacturers Stateside. US vehicle sales printed at a 16.0mn annualised rate for June according to Autodata, above Barclays's expectation of 15.6m.

From a sector stand-point the best performance in the US was seen in the following industrial groups: Mortgage finance (1.36%), Aerospace (1.18%) and Water (1.13%).

Positive employment data

The June US ISM index has worsened to 52.2 points from 53.7 in the month before and versus economists' forecasts for an increase to 54.0. The new orders sub-index dropped by 5.2 points to 50.8 from 56.0. Initial US weekly unemployment claims fell to 343,000 last week from 348,000 (Consensus: 345,000). The country's trade balance worsened to -45.0bn dollars in May, from -40.1bn dollars in the month before.

US private sector payrolls rose to 188,000 in June after a gain of 134,000 in May; that is modestly greater than the 160,000 envisaged by the consensus, according to figures out from consultancy ADP. The largest gain was registered amongst small companies, where staff levels increased by 84,000.

Crude futures rise

10 year US Treasury yields increased by 3 basis point to 2.50%.

Front month West Texas crude futures gained 1.61% to the 101.19 dollar per barrel level on the NYMEX. According to Deutsche Bank US legislators are contemplating even tougher sanctions on Iran which could see eventually see the country’s oil exports curbed by an additional 500,000 barrels per day.

S&P 500 - Risers
Chipotle Mexican Grill Inc. (CMG) $384.47 +3.48%
Teradata Corp. (TDC) $51.39 +2.74%
Time Warner Cable Inc. (TWC) $112.43 +2.70%
Discovery Communications Inc. Class A (DISCA) $80.63 +2.69%
Best Buy Co. Inc. (BBY) $29.42 +2.54%
Computer Sciences Corp. (CSC) $45.58 +2.40%
Yahoo! Inc. (YHOO) $25.59 +2.40%
Advanced Micro Devices Inc. (AMD) $4.06 +2.27%
Windstream Corp. (WIN) $7.86 +2.21%
Marathon Petroleum Corporation (MPC) $70.73 +2.08%

S&P 500 - Fallers
Mead Johnson Nutrition Co. (MJN) $68.85 -8.08%
United States Steel Corp. (X) $18.18 -5.56%
Robert Half International Inc. (RHI) $31.56 -5.23%
Tenet Healthcare Corp. (THC) $43.62 -4.38%
Cliffs Natural Resources Inc. (CLF) $16.08 -3.13%
Alpha Natural Res (ANR) $5.18 -2.81%
Dean Foods Co. (DF) $10.10 -2.60%
Staples Inc. (SPLS) $15.90 -2.45%
Apache Corp. (APA) $80.20 -2.35%
Apollo Group Inc. (APOL) $17.67 -2.27%

Dow Jones I.A - Risers
Boeing Co. (BA) $102.89 +1.40%
Cisco Systems Inc. (CSCO) $24.59 +1.11%
United Technologies Corp. (UTX) $94.68 +0.94%
International Business Machines Corp. (IBM) $193.25 +0.91%
Verizon Communications Inc. (VZ) $51.01 +0.75%
Travelers Company Inc. (TRV) $80.40 +0.73%
3M Co. (MMM) $109.45 +0.66%
Hewlett-Packard Co. (HPQ) $25.18 +0.64%
Walt Disney Co. (DIS) $63.61 +0.55%
Home Depot Inc. (HD) $77.73 +0.54%

Dow Jones I.A - Fallers
Alcoa Inc. (AA) $7.70 -1.22%
Caterpillar Inc. (CAT) $81.85 -0.76%
Bank of America Corp. (BAC) $12.83 -0.54%
E.I. du Pont de Nemours and Co. (DD) $52.40 -0.27%
Pfizer Inc. (PFE) $27.65 -0.18%
American Express Co. (AXP) $74.54 -0.11%
Chevron Corp. (CVX) $119.08 -0.06%
JP Morgan Chase & Co. (JPM) $52.77 -0.06%

Nasdaq 100 - Risers
Randgold Resources Ltd. Ads (GOLD) $64.46 +2.81%
Discovery Communications Inc. Class A (DISCA) $80.63 +2.69%
Yahoo! Inc. (YHOO) $25.59 +2.40%
Oracle Corp. (ORCL) $30.70 +1.99%
Liberty Global plc Series A (LBTYA) $76.99 +1.77%
DIRECTV (DTV) $63.08 +1.50%
Vertex Pharmaceuticals Inc. (VRTX) $80.63 +1.40%
Viacom Inc. Class B (VIAB) $68.44 +1.33%
Citrix Systems Inc. (CTXS) $61.90 +1.31%
Fiserv Inc. (FISV) $87.92 +1.23%

Nasdaq 100 - Fallers
Staples Inc. (SPLS) $15.90 -2.45%
Catamaran Corp (CTRX) $47.31 -1.46%
Baidu Inc. (BIDU) $89.22 -1.21%
Micron Technology Inc. (MU) $14.14 -1.19%
Fastenal Co. (FAST) $45.29 -1.16%
Twenty-First Century Fox Inc Class A (NWSA) $14.87 -0.87%
PACCAR Inc. (PCAR) $53.47 -0.85%
Fossil Group Inc (FOSL) $105.24 -0.76%
Mondelez International Inc. (MDLZ) $28.58 -0.69%
Equinix Inc. (EQIX) $184.27 -0.65%


Thursday newspaper round-up
Royal Dutch Shell, Tullow Oil, OGX
Royal Dutch Shell’s announcement of a significant oil discovery in the Gulf of Mexico failed to boost shares but The Telegraph’s Questor column believes it a good time to buy into company’s ‘B’ holdings. Europe’s shares have fallen by almost 10 per cent due to lower earnings consensus forecasts for this year. But with its latest oil discovery, the shares at good value for money. The group on Wednesday said that an exploratory well at Vicksburg in the deep waters of the Gulf of Mexico revealed potentially recoverable resources of more than 100m barrels of oil equivalent. “This is good news for Shell, as replacing its oil reserves was an issue for the group last year,” Questor said. Shell also plans to boost output from 3.3m boe per day in 2012 to 4.0m boe in 2017. It is also expected to increase its dividend 6.0 per cent this year.

Analysts have a problem valuing Tullow Oil because while the company has a wealth of reliable producing assets, it also has an ambitious oil exploration side in less proven territories, The Times’ Tempus column muses. “Pure exploration companies live and die by their news flow, with updates from every well studied closely by the market, and Tullow’s news has been poor of late.” So Tullow shares have been marked back from above £16 early last year and are now sitting just above £10. They rose 28p to £10.61 on Thursday after a positive trading update, including good results from wells in Kenya and a third discovery there. Tempus noted that the shares are "at the bottom end of their trading range; no time to get out, if you are an existing investor, and a decent speculative punt, if no more, if you are not."

Eike Batista’s oil and gas explorer OGX says its only producing wells in the Tubarao Azul field in the Campos, will probably cease production in 2014 because their geology makes further extraction impossible. Shares have taken a hit over the last two years, notes the Financial Times’ Lex column. In March 2011 they were trading at 20 Brazilian Real with a balance sheet of R$4.8bn and under debt. Today shares trade at R$0.4 and the company’s debt is at R$2.5bn after bond offerings in 2011 and 2012. A speculative asset – one that is not producing much free cash flow yet – is built or bought, Lex said.

"Excitement about the asset escalates and early indications are promising, but a little more investment is needed. Rather than dilute the prescient and patient early equity investors, adding a little debt to the funding mix seems like a good idea."