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Sep 2, 2013

FGC BOLSA - FGC FINANCIAL MARKETS | NOTIFICATION SEPTEMBER 02, 2013: From The Desk of Fernando Guzmán Cavero September 02, 2013..

Dear Readers:

During the present week my partners and I, we'll be discussing  some changes to our news presentation format that best fit our audience's expectations.

Therefore, FGC BOLSA - FGC FINANCIAL MARKETS  in its daily news coverage on finance,markets, politics among other considerations related to its mission statement, will have delays and interruptions on news delivery, frequency, and themes that  are covered therein.

Please stay tuned,

 Fernando Guzman Cavero

NYT | Global Update September 02, 2013: McCain Urges Lawmakers to Back Obama's Plan for Syria

The New York Times International Herald Tribune
September 2, 2013
Compiled 20:45 GMT

Global Update


McCain Urges Lawmakers to Back Obama's Plan for Syria

The White House pushed forward for Congressional approval of an attack on Syria as President Obama got qualified support from a hawkish Republican critic, Senator John McCain.

Syria Vote Sets Up Foreign Policy Clash in G.O.P.

The Congressional vote will offer the best insight yet on which wing of the Republican Party - the party's traditional hawks, or a growing bloc of noninterventionists - has the advantage.

Russia Rejects U.S. Evidence on Syrian Chemical Attack

Foreign Minister Sergey V. Lavrov dismissed as unconvincing the evidence presented by Secretary of State John Kerry, indicating that Russia would continue to block action at the United Nations.

Video: Brazil's Humor Guerrillas

Few start-ups in Brazil have had success like Porta dos Fundos, a comedy troupe whose YouTube channel is the country's most popular.

Op-Ed Contributor

Antigone in Damascus

Laws are built upon a moral foundation. We don't need a law to tell us that it is wrong to kill.

Arab League Endorses International Action

The Arab League adopted a resolution urging action against the Syrian government for what it called the "ugly crime" of using chemical weapons, but it stopped short of an explicit reference to military intervention.

Israeli President Voices Strong Support for Obama's Decision on Syria

In a radio interview, Shimon Peres encourages patience and expressed full confidence in the American president's commitment to Israel.

Rubber-Suit Monsters Fade. Tiny Tokyos Relax.

In an era when digital effects have made the use of small models and suited actors look quaint, tokusatsu, or "special filming," is on the way out.

Verizon Seals $130 Billion Deal to Buy Out Vodafone's Wireless Stake

Verizon will pay about $58.9 billion in cash and about $60.2 billion in stock for Vodafone's stake. Other considerations are also part of the deal.

Indian Manufacturing Shrinks for First Time in Four Years

A purchasing managers' index paints a grim picture, with the number of foreign and domestic orders falling sharply in July.

Tourists Wary of Turmoil in the Middle East Are a Boon to Southern Europe

For Spain, Portugal, Italy and Greece, economists are hoping that this year's record influx of sun-seeking tourists and their money will continue past summer's end.

Fraying at Tethers of Our Phones

A YouTube video about pervasive smartphone use may have landed at a moment when people start questioning if something has gone too far and start doing something about it.

Drug Agents Use Vast Phone Trove, Eclipsing N.S.A.'s

The scale and longevity of a data storage program run by the government in partnership with AT&T was unmatched by other government programs, including the National Security Agency's gathering of phone call logs.

Japan's E-Reader Industry Struggles to Keep Up as Amazon Takes the Lead

Although local companies brought e-readers to market in Japan before Amazon did, Amazon's experience elsewhere with e-book sales rapidly gave it an edge with consumers and publishers.

No Matter Who Leaves, Premier League Wins

Gareth Bale, transferring to Real Madrid from Tottenham, is the latest top player to go somewhere other than England. But the Premier League has shown it is bigger than any stars.

It Won't Be Easy to Judge Whether Bale Is Worth the Cost

It will be hard, if not impossible, for Gareth Bale to post better numbers than Cristiano Ronaldo, but much of Bale's game is making the team, and not just himself, better.

Real Madrid Completes Long-Awaited Deal for Tottenham's Bale

The Welsh midfielder Gareth Bale's transfer from Tottenham to Real Madrid was believed to be worth about $130 million, which would set a record.

Surprising Friend of Gay Rights in a High Place

When President Ronald Reagan nominated Anthony M. Kennedy to the Supreme Court, few could have imagined the esteem Justice Kennedy would one day earn among advocates of gay rights.

Big Screens That Not All of Hollywood Adores

For many in the audience of the Hollywood Bowl, the arrival of four high-definition video screens has been a gift. But not all are thrilled by the technology.

Arrests of 3 Mayors Reinforce Florida's Notoriety as a Hothouse for Corruption

In a state that led the nation in convictions of public officials last decade, the leaders of Homestead, Sweetwater and Miami Lakes were apprehended within a month.
Op-Ed Columnist

Love for Labor Lost

How the right came to have contempt for workers.
Op-Ed Contributor

A New Kind of Union

If workers can't bargain together, let them organize politically.

ADVFN III World Daily Markets Bulletin September 02, 2013.

ADVFN III Evening Euro Markets Bulletin
Daily world financial news Monday, 02 September 2013

London Market Report
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London close: Markets jump on data, Syria delays

UK investors took advantage of low volumes on Monday to push the FTSE 100 nearly 1.5 per cent higher, with impressive manufacturing data and delays to potential action Syria prompting a bullish mood.

"After posting four negative weeks in succession today's market moves
on the UK benchmark index could not have been in starker contrast to the
moves of the last two weeks," said Senior Market Analyst Michael Hewson
from CMC Markets.

The FTSE 100 finished up 93.26 points at 6,506.19, a rise of 1.45% on the day.

Trading volumes across Europe were said to have been low today given that Wall Street was closed for the Labour Day holiday.

Manufacturing data impresses

Manufacturing activity in the UK
increased at its quickest pace in two and a half years in August,
according to the Markit/CIPS purchasing managers' index (PMI). The
index's main gauge hit 57.2, higher than an upwardly revised 54.8 in
July and better than the consensus forecast of 55. Any reading above 50
indicates an expansion in activity.

Analyst Blerina Uruci said:
"The strong gains made at the start of Q3 were consolidated, providing
further evidence that the recovery is taking root. The improvement
remained broadly based and the rise in new orders suggests that this
solid performance is likely to continue in the coming months."

Meanwhile, China manufacturing PMI rose to the 51.0 point mark in August, according to the National Bureau of Statistics and China Federation of Logistics and Purchasing in Beijing. The consensus estimate had been for a reading of 50.6 and comes after a print of 50.3 in July.

"The news came as a large gasp of air for a market that had become
notably bearish on Chinese-linked assets of late," said Financial Trader
David White from Spreadex.

Possible Syria intervention hit by delays

Fears of imminent US military action against Syria following the government's alleged chemical weapons attack were calmed over the weekend after President Barack Obama said he would seek approval from Congress before signing off on a strike.

Congress is not due back on Capitol Hill until next week but the
Foreign Relations Committee (FRC) said they have arranged meetings on
Tuesday and Wednesday to discuss the potential strike.

"Congress's role in US military force has too often been abdicated to
presidential authority, so I look forward to a vigorous debate on this
important authorization," said US Senator Bob Corker, a ranking member
of the FRC.

"The American people deserve to hear more from the
administration about why military action in Syria is necessary, what it
will achieve and how it will be sufficiently limited to keep the US from
being drawn further into the Syrian conflict," he said.

FTSE 100: Vodafone jumps on VZW deal

jumped after saying this morning it was in "advanced" talks with
Verizon Communications about selling its 45% stake in Verizon Wireless
for $130bn (£84bn). The company confirmed after the close that it has
now reached an agreement on the transaction. Shareholders are set to
receive 71% of the net proceeds and will receive a bigger full-year

"We are pleased that our long and successful
partnership with Verizon will yield a significant return of value to our
shareholders, rewarding them for their continuing support of Vodafone's
investment strategy," said Chief Executive Vittorio Colao.

Telecoms peer BT
was also a standout performer this morning on the back of upbeat
comments from Credit Suisse which reiterated its 'outperform' rating for
the shares. The broker said that BT's second-quarter update next month
will see rising wholesale fibre adds and a slowdown in the rate of line

Mining stocks on the whole were performing well this morning after data from China impressed. Diversified mining group Rio Tinto
was in demand after loading the first shipment of iron ore from its
expanded port, rail and mine operations in Australia. Rio said this was a
"significant milestone" and marks the start of commissioning of the
expansion programme, which is expected to see the company's iron ore
operations in Western Australia increase capacity to 290m tonnes a year.

Vedanta Resources was higher after Liberum Capital upgraded the stock to 'buy'. Anglo American and Antofagasta were also making gains.

however was lower after UBS downgraded the stock from 'buy' to
'neutral' following its recent outperformance. In August alone, the
spare price rose 27%, while silver and gold prices rose only 17% and 7%,
respectively. The valuation is now looking a little "stretched", UBS

Oil stocks were also out of favour as crude prices edged
lower. West Texas oil continues to pull back after hitting a two-year
high last week on concerns that tensions in Syria could spill over to
surrounding regions, leading to potential supply disruptions across the
Middle East. Producers BP and Shell were in the red this morning.

Tullow Oil
managed to buck the trend though, rising in morning trade despite
saying it has plugged and abandoned its Buzio-1 exploration well
offshore Mozambique after failing to encounter hydrocarbons.

FTSE 100 - Risers
Aberdeen Asset Management (ADN) 368.00p +4.49%
Rio Tinto (RIO) 3,035.00p +4.19%
Persimmon (PSN) 1,145.00p +4.19%
easyJet (EZJ) 1,284.00p +4.14%
BT Group (BT.A) 338.20p +3.97%
Anglo American (AAL) 1,536.00p +3.89%
Standard Life (SL.) 343.50p +3.71%
Antofagasta (ANTO) 885.50p +3.57%
Prudential (PRU) 1,116.00p +3.52%
WPP (WPP) 1,237.00p +3.51%

FTSE 100 - Fallers
Fresnillo (FRES) 1,275.00p -2.15%
Royal Dutch Shell 'A' (RDSA) 2,075.00p -0.60%
Randgold Resources Ltd. (RRS) 5,065.00p -0.39%
Royal Dutch Shell 'B' (RDSB) 2,165.00p -0.37%
Eurasian Natural Resources Corp. (ENRC) 227.70p -0.31%
Aggreko (AGK) 1,623.00p -0.25%
BP (BP.) 445.55p -0.15%

FTSE 250 - Risers
Ferrexpo (FXPO) 177.30p +6.68%
Tullett Prebon (TLPR) 361.30p +5.74%
Henderson Group (HGG) 174.30p +5.64%
Inmarsat (ISAT) 732.50p +5.40%
Fenner (FENR) 360.40p +5.07%
Oxford Instruments (OXIG) 1,500.00p +4.97%
Countrywide (CWD) 576.00p +4.73%
Smith (DS) (SMDS) 270.00p +4.73%
Diploma (DPLM) 628.00p +4.67%
Taylor Wimpey (TW.) 103.90p +4.53%

FTSE 250 - Fallers
Xaar (XAR) 783.00p -3.69%
Polymetal International (POLY) 736.00p -2.58%
African Barrick Gold (ABG) 185.70p -2.26%
Rank Group (RNK) 157.00p -2.06%
Ocado Group (OCDO) 323.90p -2.00% Digital Entertainment (BPTY) 108.10p -1.73%
Hochschild Mining (HOC) 257.60p -1.45%
F&C Asset Management (FCAM) 95.60p -1.44%
Daejan Holdings (DJAN) 3,955.00p -1.37%
Bumi (BUMI) 215.00p -1.19%

Europe Market Report
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Europe close: Manufacturing data, Syria delay lifts stocks

- Manufacturing data points to economic recovery
- Delay of Syria military action calms market
- ECB member says bank is focusing on money market rates
- Copper rises on manufacturing growth

FTSE 100: 1.36%
DAX: 1.60%
CAC 40: 1.64%
FTSE MIB: 1.63%
IBEX 35: 1.47%
Stoxx 600: 1.80%

European equities advanced as manufacturing expanded in the Eurozone,
the UK and China and as fears over an imminent strike in Syria eased.

Eurozone manufacturing purchasing managers' index (PMI) rose to a
26-month high of 51.4 in August, compared to 50.5 in July, driven by
growth in Germany, the Netherlands, Italy, Austria and Ireland. A
reading above 50 signals expansion.

In China, manufacturing PMI climbed to 50.1 last month from 47.7 in July, according to HSBC Holdings Plc and Markit Economics.

It was the biggest increase in three years and the first reading above
50 since April, pointing to signs the world's second largest economy is
strengthening after a two-quarter slowdown.

The UK's Markit/CIP
manufacturing PMI jumped to a two-and-a-half year high of 57.2 in
August from 54.8 in July, its fifth straight month of expansion.

Meanwhile, news that possible military action on Syria would be delayed gave stocks a lift.

US President Barack Obama said he was seeking congressional
authorisation before any strike which is expected to halt any possible
intervention by nine days.

Syrian Deputy Foreign Minister
Faisal Mekdad accused Obama of indecision and hesitation as the US
leader held back on military response to last month's chemical weapons
attack near Damascus until after a congressional vote.

Obama tried to win over Congress on Sunday but faced challenging questions from lawmakers.

Syria's government has continued to deny it used chemical weapons against civilians on August 21st.

Craig Erlam, Market Analyst at Alpari Research,
said the president was unlikely to act unless there is hard evidence
that chemical attacks were carried out by the Assad regime.

"Obama, like his UK counterpart, David Cameron, is likely to face
staunch opposition from both inside and outside his party, to military
action, with memories of the hugely unpopular war in Iraq still fresh in
people's memories," Erlam said.

"Investors are unsurprisingly
pleased with this delay, with the risk aversion seen towards the end of
last week subsiding and money pouring back into European stocks."

The US was closed for trading on Monday due to the Labor Day holiday.

ECB turns to money market rates

European Central Bank (ECB) member Benoît Coeuré said that the monetary
authority is keeping a close watch on money market rates ahead of its
interest rate decision next Thursday.

He said the central bank
has also noted that the recovery would be slow and that normalising
monetary policy is still a way off.

While speculation continues
on whether the US Federal Reserve will begin to reduce its monthly bond
purchases, European banks have been paying back the long-term low-rate
loans received from the ECB.

The reduced liquidity is pushing
up rates. "We're watching this process closely and will make sure that
money market rates remain at reasonable levels," Coeuré told the Swedish
newspaper Dagens Industri.

Coeuré made clear that the
ECB was "not in the position where we can begin normalising monetary
policy". He explained that recent data had only confirmed that the
recovery is in place, "that we are over the worst".

Mining and telecom stocks rally

A gauge of miners surged including Rio Tinto and Anglo American as the price of commodities climbed after manufacturing PMIs grew. Copper jumped 1.62% and silver climbed 2.99%.

UK telecom firm Vodafone gained after saying it was in advanced talks with Verizon Communications about selling is stake in the Verizon Wireless joint venture for $130bn.

Telecom Italia jumped on speculation that it could be the next to sign a merger deal.

Alstom advanced after the French multinational conglomerate signed a contract with Minnesota Power to deliver an emission control system which will help reduce the utility company's emissions.

L'Oreal rose on speculation it may buy the €23bn stake Nestle holds in the French cosmetics company.

Other asset classes slide

The euro fell 0.26% against the 1.3187 US dollar.

Brent crude futures dropped $0.036 to $114.040 per barrel on the ICE.

US Market Report
US close: Syria concerns, economic data hits stocks

- US still deciding on Syria strike
- Confidence, spending data fails to impress
- Krispy Kreme disappoints with Q2 earnings

Dow Jones: -0.21%
Nasdaq: -0.84%
S&P 500: -0.32%

Disappointing economic data and uncertainty regarding a possible
military strike against Syria dampened US stocks on Friday with
benchmarks ending August on a dull note.

A three-day weekend in
the States was also providing more of a reason for investors to scale
back risk appetite and trim positions with Wall Street closed on Monday
for Labour Day.

Both the Dow Jones and S&P 500
recorded their worst monthly performance since May 2012, and the
choppiness on global equity markets isn't expected to fade next week.

Analysts at Barclays said: "With a number of significant event risks
ahead - such as geopolitical risk in the Middle East, uncertainty about
US economic data and the Fed's monetary policy, the possible
announcement of a nomination for the new Fed Chairman by President Obama
and federal elections in Germany, among others - market volatility,
which has risen into late summer, is likely to persist in September."

Tensions between Syria and the West escalated on Friday after US
intelligence was said to have "high confidence" that Bashar al-Assad's
regime was responsible for last week's chemical weapons attack that
killed over 1,400 people in Damascus.

US Secretary of State John Kerry condemned the "indiscriminate and inconceivable horror of chemical weapons", though President Barack Obama has said he has not made a final decision on whether or not to take action.

UK Prime Minister David Cameron
meanwhile on Thursday lost an initial vote to intervene - oppositions
decided to wait for firm evidence from UN inspectors on the alleged use
of chemical weapons by the Bashar al-Assad regime. French President Francois Hollande
signalled that he could be the main ally to the US in taking action
against the Syrian government, saying that the UK vote made no
difference to France's position.

Economic data comes up short

Consumer spending
edged just 0.1% higher in July, down from a revised 0.6% gain the month
before and below the 0.3% increase expected by analysts. Personal incomes only improved by 0.1% as well last month, slowing from the 0.3% rise in June and the 0.2% forecast.

The core personal consumption expenditure price
index meanwhile - the Federal Reserve's measure of inflation - rose by
0.1% in July, down from 0.2% in June and below the 0.2% increase

Paul Dales, Senior US Economist at Capital Economics,
said that the July data suggests that real consumption in the third
quarter may struggle to match the 1.8% growth seen in the second,
especially given the recent rise in oil prices.

"What's more,
the recent rise in oil prices may restrain real growth as households
will pay more to buy the same amount of gasoline. At the moment, incomes
aren't rising fast enough to support faster consumption growth," he

The closely-watched University of Michigan/Thomason Reuters consumer confidence index
fell to a four-month low of 82.1 in August, pulling back from a
six-year high of 85.1 the month before. Nevertheless this was still
higher than the preliminary August figure of 80 and ahead of the 80.5
consensus forecast.

The Chicago purchasing mangers' index (PMI) rose from 52.3 to 53.0 in August, as expected.

Krispy Kreme fails to meet forecasts

Krispy Kreme Doughnuts
tumbled after its second-quarter adjusted earnings came in at 14 cents a
share, missing the 16 cents estimate by analysts. Revenue grew by 10%
to $112.7m but also missed forecasts. Inc. surged after the company issued third-quarter sales and earnings forecasts that beat analysts' estimates.

Exxon Mobil Corp. tumbled as the price of oil declined after a delay of a possible imminent strike in Syria was delayed.

S&P 500 - Risers
Salesforce.Com Inc. (CRM) $49.13 +12.55%
Apache Corp. (APA) $85.68 +8.95%
Sears Holdings Corp. (SHLD) $44.24 +6.45%
Murphy Oil Corp. (MUR) $67.42 +2.45%
Western Digital Corp. (WDC) $62.00 +2.11%
Archer-Daniels-Midland Co. (ADM) $35.21 +1.15%
Quest Diagnostics (DGX) $58.62 +1.14%
Walgreen Co. (WAG) $48.07 +1.03%
Praxair Inc. (PX) $117.40 +0.99%
NRG Energy Inc. (NRG) $26.25 +0.96%

S&P 500 - Fallers
Electronic Arts Inc. (EA) $26.64 -3.37%
Advanced Micro Devices Inc. (AMD) $3.27 -3.25%
Janus Capital Group Inc. (JNS) $8.36 -3.02%
D. R. Horton Inc. (DHI) $17.85 -2.99%
PulteGroup Inc. (PHM) $15.39 -2.96%
Frontier Communications Co. (FTR) $4.33 -2.91%
Lennar Corp. Class A (LEN) $31.81 -2.48%
Teradata Corp. (TDC) $58.56 -2.19%
Adt Corp (ADT) $39.83 -2.16%
Iron Mountain Inc. (IRM) $25.80 -2.16%

Dow Jones I.A - Risers
Wal-Mart Stores Inc. (WMT) $72.98 +0.76%
Procter & Gamble Co. (PG) $77.89 +0.75%
AT&T Inc. (T) $33.83 +0.53%
Merck & Co. Inc. (MRK) $47.29 +0.40%
Pfizer Inc. (PFE) $28.21 +0.39%
3M Co. (MMM) $113.58 +0.23%
Coca-Cola Co. (KO) $38.18 +0.21%
General Electric Co. (GE) $23.14 +0.13%
Chevron Corp. (CVX) $120.43 +0.05%
Caterpillar Inc. (CAT) $82.54 +0.01%

Dow Jones I.A - Fallers
Alcoa Inc. (AA) $7.70 -1.41%
Unitedhealth Group Inc. (UNH) $71.74 -0.97%
Boeing Co. (BA) $103.92 -0.96%
Verizon Communications Inc. (VZ) $47.38 -0.92%
Hewlett-Packard Co. (HPQ) $22.34 -0.80%
Home Depot Inc. (HD) $74.49 -0.75%
Cisco Systems Inc. (CSCO) $23.31 -0.60%
McDonald's Corp. (MCD) $94.36 -0.53%
Microsoft Corp. (MSFT) $33.40 -0.45%
Travelers Company Inc. (TRV) $79.90 -0.44%

Nasdaq 100 - Risers
Sears Holdings Corp. (SHLD) $44.24 +6.45%
Nuance Communications Inc. (NUAN) $19.09 +4.26%
Western Digital Corp. (WDC) $62.00 +2.11%
Tesla Motors Inc (TSLA) $169.00 +1.77%
Vodafone Group Plc ADS (VOD) $32.35 +1.73%
Monster Beverage Corp (MNST) $57.39 +0.72%
Seagate Technology Plc (STX) $38.32 +0.60%
Whole Foods Market Inc. (WFM) $52.75 +0.53%
Intuitive Surgical Inc. (ISRG) $386.52 +0.50%
Sigma-Aldrich Corp. (SIAL) $82.47 +0.46%

Nasdaq 100 - Fallers
Baidu Inc. (BIDU) $135.53 -3.03%
Green Mountain Coffee Roasters Inc. (GMCR) $86.31 -2.78%
Vertex Pharmaceuticals Inc. (VRTX) $75.15 -2.72%
Activision Blizzard Inc. (ATVI) $16.32 -2.57%
eBay Inc. (EBAY) $49.99 -1.96%
Celgene Corp. (CELG) $139.98 -1.82%
Symantec Corp. (SYMC) $25.61 -1.69%
Randgold Resources Ltd. Ads (GOLD) $78.02 -1.65%
Altera Corp. (ALTR) $35.17 -1.46%
Alexion Pharmaceuticals Inc. (ALXN) $107.76 -1.41%

Broker Tips
Broker tips: RBS, Fresnillo, BT, National Grid

Citigroup has maintained its 'sell' rating for UK lender Royal Bank of Scotland (RBS) and has slashed its profit forecasts for the company citing weak earnings momentum.

The broker said that RBS remains its least-preferred UK bank "based on
the shareholder structure, ongoing political and regulatory uncertainty,
and a weak medium-term return potential relative to peers".

UBS has cut its recommendation for precious metals group Fresnillo from 'buy' to 'neutral' following the stock's recent strong performance.

In August alone, the share price rose 27%, outperforming a 17% increase
in the silver price and a 7% rise in gold. The valuation is now looking
"stretched" and less attractive after the stock's recent run. The
shares are trading at an "expensive" 36 times forward earnings, compared
with its historical average price-to-earnings multiple of 21.

Credit Suisse has reiterated its 'outperform' rating and 350p target for telecoms group BT ahead of the second-quarter update due next month, a 'key' quarter for the company.

"We see BT's Q2 update as the first chance to assess the potential
impact (direct & indirect) of BT's content strategy on its
underlying business. As a result key fibre and line loss KPIs are likely
to prove more interesting than the Q2 financials."

Galvan Research has kept its positive stance on utilities group National Grid, saying it sees strong upside heading towards the end of 2013.

"The July guidance from National Grid provided ample fundamental
affirmation to underpin the positive message from the general share
price uptrend," said Thomas Light, Senior Analyst at Galvan. He expects
the share to rebound back to its best levels of the year.

The Economist | New Selected Articles September 02, 2013: Syria, the Indian rupee and Jehovah's Witnesses

Monday September 2nd 2013
Editor's picks

A selection of new stories from
Free exchange: On "bullshit jobs"

India's economy:
A five-star problem
As India's GDP slows further the government has no easy options
Britain and Syria:
The vote of shame
The only people who should celebrate Britain's vote against military action in Syria are Bashar Assad and Vladimir Putin
Jehovah's Witnesses and blood:
A matter of life or death
Preserving life takes precedence over a religious taboo, a judge rules
Germany's election:
Mutti puts the lad in his place
Reading the body language of Angela Merkel and Peer Steinbrück during their only televised debate
A shy soul:
Remembering Seamus Heaney
The Irish Nobel prize-winning poet died on August 30th, aged 74

Click Here!

The Economist Debates Series

The BRIC economies
Is the fastest period of emerging-market growth behind us?




DealBook Alert September 02, 2013: Verizon Seals $130 Billion Deal to Buy Out Vodafone’s Wireless Stake.

The New York Times | NEWS ALERT

DEALBOOK ALERT Monday, September 2, 2013 1:00 PM EDT
Verizon Seals $130 Billion Deal to Buy Out Vodafone’s Wireless Stake
Verizon Communications agreed on Monday to buy out Vodafone‘s 45 percent stake in its giant wireless unit in a $130 billion transaction, realigning the global telecommunications landscape in one of the biggest deals on record.
Under the terms of the deal, Verizon will pay about $58.9 billion in cash and about $60.2 billion in stock for Vodafone’s stake in Verizon Wireless. It will also issue $5 billion in notes to its British partner, while selling back its minority stake in Vodafone’s European unit for $3.5 billion.
Other, smaller transactions worth $2.5 billion round out the megadeal.
The deal, giving Vodafone a huge war chest, could have a big effect on the European telecommunications industry, which has been faced with lackluster earnings and increased international competition — even as regulators push for carriers to invest in new, high-speed data networks that would put consumers and business customers on a more equal digital footing with data users in the United States and the most advanced parts of Asia, like South Korea.


European Markets at Close Report by MarketWatch September 02, 2013.

European stocks climb after PMIs, Vodafone deal

By Sara Sjolin, MarketWatch 
LONDON (MarketWatch)European stock markets rallied on Monday, after mostly upbeat PMI numbers from the region and as data from China signaled an improvement in that country’s manufacturing sector. 

The Stoxx Europe 600 index XX:SXXP +1.89%  jumped 1.7% to 302.33, erasing a 0.9% loss from Friday. 

U.S. markets were closed for the Labor Day holiday. 

Shares of Vodafone Group PLC UK:VOD +3.37%   VOD +1.73%  put on 3.9% after sources said the telecom firm has reached a tentative deal to sell Verizon Communications Inc. VZ -0.92% its 45% stake in their joint venture Verizon Wireless for $130 billion. Vodafone confirmed it is in advanced discussions with Verizon about the sale. People familiar with the matter told The Wall Street Journal the terms still need to be approved by the companies’ boards, but if all goes well, a deal could be announced as soon as Monday afternoon. 

Other telecom firms were also on the rise after Goldman Sachs lifted the sector to neutral from cautious based on recent consolidation activities. Shares of Telecom Italia SpA IT:TIT +3.87%  gained 4.9% and Deutsche Telekom AG DE:DTE +1.46%  added 1.3%. 

More broadly, investors took inspiration from Asia where most indexes closed higher on the back of upbeat Chinese data. The official Chinese manufacturing Purchasing Managers’ Index rose to 51.0 in August compared with 50.3 in July, while the HSBC PMI climbed to a final reading of 50.1 in August from 47.7 in July. A reading above 50 indicates expansion in manufacturing activity from the previous month. 

“The manufacturing PMIs in line with the hard data for July indicates that the Chinese economy has bottomed out and is poised to recover moderately in the coming months driven primarily by stronger domestic demand and an inventory cycle,” said analysts at Danske Bank in a note.
“The current signs of stabilization in China should eventually prove positive for the sentiment towards emerging markets in general,” they added. 

Manufacturing data from China confirm the sector expanded in August.
Mining firms, which are sensitive to growth indications from China, posted some of the biggest gains in European trading. Shares of Rio Tinto PLC UK:RIO +4.19%   RIO -0.42%   AU:RIO +1.58%  gained 4.3%, Anglo American PLC UK:AAL +3.89%  picked up 4%, and BHP Billiton PLC UK:BLT +2.29%   BHP +0.67%   AU:BHP -0.36%  added 2.7%. 

The FTSE 100 index UK:UKX +1.45%  jumped 1.5% to 6,506.16.
The U.K. index was further lifted by positive news on the data front. The Markit/CIPS PMI showed the British manufacturing sector expanded at its fastest pace in two-and-a-half years in August. 

In Germany, the Markit/BME manufacturing PMI rose to 51.8 in August from 50.7 in July, marking the strongest performance since July 2011. Meanwhile in France, the manufacturing PMI remained unchanged in August at 49.7, coming in below the 50 mark for the 18th straight month.
The DAX 30 index DX:DAX +1.74%  jumped 1.6% to 8,233.71, while the CAC 40 index FR:PX1 +1.84%  traded 1.6% higher at 3,995.34. 

Italy’s FTSE MIB index XX:FTSEMIB +1.84%  climbed 1.4% to 16,915.99. Data showed growth in manufacturing output in Italy in August accelerated to the sharpest pace since April 2011.
In the same vein, Spain’s IBEX 35 index XX:IBEX +1.68%  rallied 1.6% to 8,420.90 after the August PMI reading showed the manufacturing sector returned to output growth for the first time since April 2011. 

Europe’s week ahead: Syria, central banks
Continued uncertainty over whether the U.S. will launch an attack on Syria is expected to dominate global financial markets. Next week will also see plenty of new economic data as well as policy meetings from five central banks. 

Sara Sjolin is a MarketWatch reporter based in London. Follow her on Twitter @sarasjolin