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Oct 8, 2013

DealBook P.M. Edition October 8, 2013: Icahn Secures Seats on Nuance's Board.

Tuesday, October 8, 2013
Icahn Secures Seats on Nuance's Board
Icahn Secures Seats on Nuance's Board The billionaire investor Carl C. Icahn has chosen to nominate his son Brett and David Schechter, a senior analyst at his firm, for the board of the maker of voice recognition software.
    Inquiry Into Illicit Online Marketplace Extends to Britain
    Inquiry Into Illicit Online Marketplace Extends to Britain Four men arrested in Britain on drug charges are being investigated over their suspected ties to Silk Road, a Web site linked to narcotics sales.
    Britain Expands Program to Spur Home Purchases
    Britain Expands Program to Spur Home Purchases Britain began the second phase of a new program on Tuesday that is aimed at igniting home buying, in part by guaranteeing up to 15 percent of a mortgage loan.
    Recent Deals Show Freer Capitalism Is Taking Hold in Japan
    Reuters Breakingviews: Recent Deals Show Freer Capitalism Is Taking Hold in Japan The country's corporate establishment has long frowned on companies that succumb to foreign takeovers, but three recent deals suggest these strictures are no longer so tight, says Peter Thal Larsen.
    Buzz Tracker
    JPMorgan Names Chief Information Officer Dana Deasy, formerly of BP, will be responsible for the bank's technology systems and infrastructure across all of its worldwide business.
    Putting a Speed Limit on the Stock Market Rather than woo high-frequency traders, a new trading platform set to open later this month will limit their advantages, reports Jacob Goldstein in a column for The New York Times Magazine.
    A Woman to Serve on Twitter's Board? Here Are 25 Twitter's filing for its Wall Street debut revealed a lone woman among its top officials. Claire Cain Miller of The New York Times suggests some other candidates.
    Federal Reserve On Wednesday, the Federal Reserve may shed some light on its surprising decision to delay winding down its stimulus campaign, and on its plans for the rest of the year, when it releases an account of its Sept. 17-18 policy meeting. But the shutdown of the federal government means the economic predictions Fed officials recorded three weeks ago are already out of date.
    H.P. Analyst Meeting At last year's meeting, Hewlett-Packard's chief executive, Meg Whitman, outlined the company's problems in unexpected detail, driving the price of the stock down nearly 13 percent. The stock has risen 42 percent since then, but Ms. Whitman's growth plans have yet to show much progress on revenue. Analysts will be looking for clues that her turnaround plan is gaining traction.
    Bank Earnings Season JPMorgan Chase kicks off Wall Street's third-quarter earnings season on Friday. Big United States banks have been struggling with a slump in trading and a slowdown in mortgage refinancing applications. As a result, many analysts have reduced their earnings estimates. For JPMorgan, its earnings report comes as the bank is engaged in negotiations with the Justice Department to resolve investigations into the bank's crisis-era mortgage business. JPMorgan agreed last month to pay about $1 billion to settle investigations into a huge trading loss and its credit card practices. Another big bank, Wells Fargo, also reports quarterly results on Friday


Wall Street at Close Report by MarketWatch October 8, 2013: U.S. stocks drop; Dow skids nearly 160 points

By Wallace Witkowski, MarketWatch , Saumya Vaishampayan 

SAN FRANCISCO (MarketWatch)U.S. stocks fell sharply on Tuesday hit by growing jitters over the budget impasse in Washington, with the partial government shutdown extending into a second week with few signs of a deal to end it or raise the nation’s debt ceiling. 

The Dow Jones Industrial Average DJIA -1.07%  dropped 159.71 points, or 1.1%, to close at 14,776.53, after touching an intraday low of 14,773.47. The biggest decliner was Visa Inc. V -2.04% , down 2%, with J.P. Morgan Chase & Co. JPM +0.10% and International Business Machines Corp. IBM -1.81% both finishing down about 1.8%. 

The S&P 500 index SPX -1.23%  fell 20.67 points, or 1.2%, to 1,655.45, extending prior-day losses that pushed the index to a four-week low. The worst performing sectors were telecom, materials, and consumer discretionary. Near the close, the S&P 500 traded as low as 1,655.03. 

Obama looks to pressure GOP on budget
President Obama looked to raise pressure on Congress to end a week-old partial government shutdown as the House and Senate headed down separate tracks to break a stalemate on government spending and the nation’s borrowing limit. Photo: AP. 

The Nasdaq Composite COMP -2.00%  dropped 75.54 points, or 2%, to end the day at 3,694.83, soon after touching an intraday low of 3,694.15, reflecting Tuesday’s weakness in the technology sector.
The CBOE Volatility Index, or so-called “fear index,” topped 20 for the first time since June and was up 5.4% at 20.45 in recent activity. 

In a press conference, President Obama said he is happy to negotiate with House Republicans but not under the threat of keeping the government closed or not raising the debt ceiling. “We’re not going to pay a ransom for America paying its bills,” Obama said. 

House Speaker John Boehner said Tuesday that Obama and Democrats need to negotiate over the U.S. debt ceiling and shutdown. “I’m not drawing any lines in the sand,” he said in response to whether he wanted a specific amount of debt reduction. Obama and Boehner talked by phone on Tuesday and the president reiterated he will not negotiate over the shutdown or the debt ceiling.
Obama said Monday there are enough votes in the House to pass a debt-ceiling increase and end the shutdown without further concessions from Democrats, rejecting Boehner’s assertion that the votes aren’t there. 

The House of Representatives isn’t likely to pass a debt-ceiling increase this week, according to a report in Politico. A failure to raise the debt limit by Oct. 17 would mean the U.S. couldn’t borrow money to pay its bills, triggering an unprecedented default, Treasury Secretary Jack Lew has said.

Reuters Image
U.S. President Barack Obama is pictured above.
Stocks have been pretty resilient so far during the shutdown. Since the shutdown started on Oct. 1, the Dow industrials are off by 2.3%, the S&P 500 is down 1.6%, and the Nasdaq is off by 2%, with Tuesday’s losses making up a big part of the month-to-date loss. 

The continued rhetoric out of Washington is sapping optimism that the shutdown and debt ceiling are going to be resolved by Oct. 17, said Robert Pavlik, chief market strategist at Banyan Partners. 

“There’s not a lot of interest to buy when the rhetoric is negative and there’s no soon end to it,” Pavlik said. Also, taking away interest to buy is the S&P 500 dipping below its 100-day average. 

Lacking optimism that there will be any resolution in Washington soon, there are very few investors willing to buy on the dips, he said. That waning optimism is having a particularly negative effect on so-called “momentum” stocks such as Facebook Inc. FB -0.17% , Inc. PCLN +0.00% , and Tesla Motors Inc. TSLA -0.36% , Pavlik said. Facebook closed down 6.7%, Priceline fell 4.2%, and Tesla dropped 4.6%. 

“Clearly, everyone is waiting to hear some news out of Washington, D.C.,” said Peter Sidoti, chief executive officer of Sidoti & Co. The shutdown “is overshadowing earnings and the underlying economy, which continues to get better,” he said. 

McKesson Corp. MCK +0.09% shares closed up 3.2%, one of the top gainers on the S&P 500 after The Wall Street Journal reported that the company was in advanced discussions to buy competitor Celesio AG DE:CLS1 +20.93%

Shares of TripAdvisor Inc. TRIP +0.63%  declined 5.5% for its fourth straight session of losses.
Declining stocks outnumbered advancers by more than four to one on the New York Stock Exchange and the Nasdaq. Composite volume topped 3.5 billion shares for NYSE-listed stocks and 2 billion shares for Nasdaq-listed stocks by the close. 

A shutdown of a month or longer could prompt a 20% to 30% correction in the stock market, according to strategist Barry Ritholtz. A prolonged government shutdown could also push out expectations for a slowing of the Federal Reserve’s monthly bond purchases, which could support stocks. Economists at Bank of America Merrill Lynch expect a shutdown of two weeks will shave 0.5 percentage points off fourth-quarter GDP. 

The dollar inched higher versus the yen, a day after hitting a nearly two-month low against the

Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski.

Wall Street at Close Report by CNBC October 8, 2013: Stocks Tumble 1% to End at Lows as DC Worries Linger, Dow Drops Nearly 160; Vix Above 20

Stocks finished sharply lower for a second session Tuesday, with major averages hitting one-month lows, as investors digested comments from President Barack Obama on the ongoing political impasse in Washington.
(Must See: Track the debt payment calendar)

In a press conference, President Obama said he has yet to see serious proposals from the Republicans that would allow both sides to resolve their core differences.

"So my suggestion to the Speaker has been and will continue to be: 'Let's stop the excuses, let's take a vote in the House, and let's end this shutdown right now'...There are enough reasonable Democrats and Republicans in the house who are willing to vote 'yes' on the budget that the Senate had already passed."
  Name Price   Change %Change
DJIA Dow Jones Industrial Average 14776.53
-159.71 -1.07%
S&P 500 S&P 500 Index 1655.45
-20.67 -1.23%
NASDAQ Nasdaq Composite Index 3694.83
-75.54 -2.00%

The Dow Jones Industrial Average dropped nearly 150 points, dragged by Visa and IBM. The Dow has tumbled nearly 6 percent since hitting its record high of 15,709.58 on Sept. 18. The Dow tumbled more than 130 points at its session low.

The S&P 500 and the Nasdaq also finished near session lows. The Dow and S&P 500 are down for the 11th time in the last 14 trading sessions.

The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, jumped above 20. The index has surged nearly 23 percent in October alone.

Most key S&P sectors dropped, dragged by telecoms and materials, while utilities held modest gains.
(Read more: Art Cashin: Why I'm a 'little anxious' now).

To read full report click:

B.C. First Nations and governments to meet at Prince George LNG summit: BIV Today's Business News October 8, 2013:

Mining and Energy

B.C. First Nations and governments to meet at Prince George LNG summit

Representatives from British Columbia’s First Nations will be meeting with provincial and federal government ministers and LNG proponents October 9 and 10 to discuss the opportunities and ... READ MORE

Real Estate and Development


Boomers and millennials have different real-estate priorities: Century 21

Millennials have different priorities
than their parents when they are
looking to buy a home, according to ... READ MORE

Asia Pacific


Coleman heading to
Asia to tout LNG;
Petronas announces
$36 billion investment
in B.C. LNG

The B.C. government has announced that Minister of Natural Gas Development Rich Coleman will depart for Asia October 11 to promote B.C.’s burgeoning natural gas industry, just after Malaysia’s Petronas Energy announced it ... READ MORE


Canadian businesses
in Southeast Asia optimistic: Asia Pacific Foundation

The majority of Canadian companies with operations in Southeast Asia are optimistic about business and ... READ MORE

More News...


Housing starts in Vancouver steady in September: CMHC

Disability management program
can reduce cost of absenteeism: Conference Board of Canada

This Week's Issue


Northern Exposure,
part 1: Grappling with northern B.C.'s burgeoning boom

Kitimat: Business opportunity and optimism touch down at the airport, as airline numbers head skyward with infrastructure influx ... READ MORE

CMI Gold & Silver October 8, 2013: Spot Prices as of close of trading in New York.

Spot Prices as of close of trading in New York
Tuesday, October 08, 2013
Updated 10/08/2013 Today Change Week Ago Month Ago Year Ago
GOLD $1,325.65 +$0.00 $1,286.45 $1,388.55 $1,779.80
SILVER $22.46 +$0.07 $21.17 $23.97 $34.60
PLATINUM $1,407.60 +$4.60 $1,385.80 $1,498.70 $1,710.00
PALLADIUM $718.00 +$12.00 $723.00 $693.20 $665.60

NYT | ALERT FGC BOLSA - FGC FINANCIAL MARKETS OCTOBER 8, 2013: Economix Waiting for the Market's Call to Reason

The New York Times | MY ALERTS


Compiled: October 8, 2013 02:35:54 PM


Waiting for the Market's Call to Reason
In 2008, it took a plunge in the Dow to get Congress to come to agreement on steps to rescue the economy, and it may take the same to resolve the standoff over the budget and the debt ceiling, an economist writes.

CNBC Reports October 8, 2013: Rise Above: The Debt threat

Rise Above

Rise Above: The Debt Threat
Continuing Coverage on CNBC
A stand-off in Washington…the economy and the markets caught in the stalemate. With the government shutdown and debt ceiling deadline looming, who’s standing in the way of getting a deal done? All week, CNBC takes you beyond the talk and politics in search of the answers that could move America forward.

Alert: Tune-in at 2pm ET as President Obama delivers a statement from the Brady Press Briefing Room.  

White House open to short-term debt deal
White House
The White House signaled it would accept even a brief extension in borrowing authority to prevent an unprecedented default.
  » Read more

Six dangerous myths about the debt ceiling
Debt Threat
With Congress dragging its feet on raising the debt ceiling, there are a lot of silly ideas making the rounds of blogs—and the halls of Congress. Here are six of the most dangerous misconceptions being offered by those who doubt the severity of the havoc a debt freeze would unleash.
  » See Slideshow

Breaking down the federal furloughs
Smart Technology
You've likely heard the number about 800,000 times already: Approximately that many federal workers have been furloughed because of the partial government shutdown that began last Tuesday. That number will be cut nearly in half now that Defense Secretary Chuck Hagel has called back almost all of the roughly 350,000 furloughed civilian employees of the Defense Department.
  » Read more

NYT | ALERT FGC BOLSA - FGC FINANCIAL MARKETS OCTOBER 8, 2013: Japan Alarmed Over U.S. Debt Crisis:

The New York Times | MY ALERTS


Compiled: October 8, 2013 12:38:01 PM

Japan Alarmed Over U.S. Debt Crisis
Japan, a major holder of United States Treasury bonds, urged Washington to end a budget standoff and reach a deal on raising its debt ceiling to avoid a default.

European Markets at Close Report by MarketWatch October 8, 2013: U.S. Woes Hit European Stocks on Shutdown Day 8.

By Sara Sjolin 

LONDON (MarketWatch)European stock markets moved sharply lower on Tuesday, after data showed growth in the Chinese services sector slowed in September and investors worried about the government shutdown in the U.S. and the looming debt-ceiling deadline in mid-October. 

The Stoxx Europe 600 index XX:SXXP -0.76%  lost 0.8% to 306.84, marking the lowest closing level since Sept. 9. 

The next 24: Apple rallies on upgrade
Apple rallies nearly 2% after Jefferies upgrades the company to buy from hold and raises its price target to $600 from $425. Before the bell, investors will get NFIB the latest small business optimism figures, and the IMF will release its world economic outlook. 

“Markets are treading water right now. I think anticipation is still that the U.S. political impasse will be resolved — otherwise the markets would be quite a bit lower than they are,” said James Buckley, fund manager at Baring Asset Management. 

“If we get a deal—and even a temporary one that addresses the two separate issues—I would think that we can see a modest reversal. Probably not a huge rally, because the selloff in itself has been quite modest,” he added. 

In coming weeks, investors will also start to look out for earnings reports from major corporations, with Alcoa Inc. AA -0.94%  unofficially kicking of the third-quarter earnings after the U.S. closing bell on Tuesday

“Investors will probably be looking for top-line growth and if there’s any slowdown in emerging markets, to see if weaker currencies have impacted sales there. They are key exports markets for some European companies,” Buckley said. 

Among notable movers in the pan-European index, shares of Celesio AG DE:CLS1 +20.63%  soared 20% after The Wall Street Journal reported that McKesson Corp. MCK +4.14%  is in advanced discussions to buy the German health care company. 

Shares of Novartis AG CH:NOVN -1.25%   NVS -1.89%  lost 1.3% after J.P. Morgan Cazenove cut the drug maker to neutral from overweight, as the analysts “believe that a large proportion of the benefit from improved capital allocation is already reflected in the Novartis shares.” 

In the same vein, shares of GDF Suez SA FR:GSZ -1.69%  lost 1.7% after Citigroup downgraded the utility firm to neutral from buy, as the “earnings outlooks softens.”

Looking east and west

More broadly, investors in Europe looked both to the U.S. and China for reasons to move lower.
In China, the HSBC China Services Purchasing Managers’ Index fell to 52.4 in September from 52.8 in August, indicating that growth in the services sector is slowing down. A reading above 50 indicates expansion. 

Across the Atlantic, lawmakers still disagreed on a budget for the fiscal year, sending the government shutdown into its eight day. Read: A one-month shutdown risks triggering 20% to 30% correction: Barry Ritholtz
Additionally, both investors and politicians started to worry about the looming debt ceiling in the U.S., which will be hit on Oct. 17 unless Washington agrees on measures to raise the borrowing limit. Failure to lift the debt ceiling could lead to a technical default, although most analysts see this as the less likely outcome. Read: The longer shutdown squabbling goes on, the better: RBC Capital’s Porcelli.

House Speaker John Boehner said Tuesday that President Barack Obama and Democrats need to negotiate over the two issues. “I’m not drawing any lines in the sand,” he said in response to whether he wanted a specific amount of debt reduction.

Employees pack newly made face masks at a factory in Rizhao, Shandong province.

Europe movers

In Europe, mining firms posted some of the biggest losses, with shares of BHP Billiton PLC UK:BLT -1.86%   BHP -1.60%   AU:BHP +0.06%  down 1.9%, Rio Tinto PLC UK:RIO -0.78%   RIO -1.29%   AU:RIO +0.42%  off 0.8% and Anglo American PLC UK:AAL -1.45%  1.5% lower.
The losses weighed on the U.K.’s FTSE 100 index UK:UKX -1.11% , which slumped 1.1% to 6,365.83. 

Germany’s DAX 30 index DX:DAX -0.42%  eased 0.4% to 8,555.89 after data showed exports picked up in August, but continued to lack momentum and dropped 5.4% on the year.
Additionally, factory orders in Germany in August unexpectedly fell 0.3% in August from July, with the volume of large order below average during the period and orders from abroad on the decline, the Federal Statistical Office said. 

Shares of Commerzbank AG DE:CBK -1.37%  lost 1.8% in Frankfurt. The German bank expects full-year profit for the corporate banking unit to come in lower than the 2012 result, board member Markus Beumer told German daily Boersen-Zeitung. 

France’s CAC 40 index FR:PX1 -0.77%  lost 0.8% to 4,133.53. 

Shares of Alcatel-Lucent SA FR:ALU -4.05%  dropped 4.1% after the telecommunications-equipment company confirmed a job-cuts plan to reduce 15% of the workforce, aimed at returning the firm to profit by focusing on a handful of core businesses. 

Outside the major indexes, shares of Telecom Italia SpA IT:TIT -1.75%  dropped 1.8% after Standard & Poor’s placed the firm on creditwatch negative on rising management and governance weakness. 

Shares of Banca Monte dei Paschi di Siena SpA IT:BMPS +1.73%  gained 1.7% after the Italian bank late Monday revealed a restructuring plan, aimed at returning the bank to a sustainable level of profitability by 2017. As part of the plan, the bank will strengthen capital through a 2.5-billion-euro ($3.4 billion) capital increase. 


Reuters | Deals Today October 8, 2013: China Dismisses Worries Over China Missile Deal.

China dismisses worries over Turkey missile deal BEIJING (Reuters) - China's Foreign Ministry dismissed concerns about Turkey's decision to co-produce a missile defense system with a Chinese firm, saying on Tuesday that the United States and others were needlessly politicizing a purely commercial deal.

 Apollo, Cooper clash over $2.5 billion price in tire deal setback (Reuters) - India's Apollo Tyres Ltd and Cooper Tire & Rubber Co are at odds over whether Apollo can reduce the price for its proposed takeover of the U.S. firm, the latest hurdle in a deal beset by lawsuits and labor issues.

Talisman Energy shares surge as Carl Icahn acquires stake CALGARY, Alberta (Reuters) - Talisman Energy Inc shares surged in after-hours trading on Monday after activist investor Carl Icahn said he had purchased about 61 million shares of the underperforming Canadian oil producer and may seek a seat on the company's board.

China Resources looking at sale of Hong Kong meat unit: Bloomberg HONG KONG (Reuters) - State-backed conglomerate China Resources Enterprise Ltd is studying options for its Hong Kong meat distribution unit, including a possible sale, Bloomberg News reported.

Airbus clinches landmark jet order with Japan Airlines
BARCELONA/TOKYO (Reuters) - Airbus clinched its first jet order from Japan Airlines on Monday, cracking a big national market long dominated by the European firm's main rival, Boeing .
SocGen buys VTB's Rosbank stake in costly Russia turnaround MOSCOW/PARIS (Reuters) - France's Societe Generale is raising its stake in Russia's Rosbank to above 90 percent, betting it can turn around the troubled Russian banking unit even as rivals have quit a country where they could not compete.

Mining businessman to buy stake in Singapore's Blumont, become chairman SINGAPORE (Reuters) - Mining businessman Alexander Molyneux will acquire a 7.8 percent stake in Blumont Group Ltd and become its chairman, the Singapore-listed diversified holding company said on Monday.

Canada's Saputo to take over Australian dairy producer Warrnambool SYDNEY (Reuters) - Saputo Inc , Canada's largest dairy producer, will acquire Warrnambool Cheese and Butter Factory Company Holdings Ltd in a deal valuing Australia's oldest dairy processor at A$392.7 million ($370.10 million).

Canada blocks network sale to Egypt's Sawiris, citing security TORONTO (Reuters) - The Canadian government said on Monday it blocked a bid from a company controlled by Egyptian telecom tycoon Naguib Sawiris to buy a fiber optic network, citing national security concerns.

TI Media in talks with L'Espresso on broadcasting tie-up
MILAN (Reuters) - Italy's Telecom Italia Media has signed a non-binding term sheet with publisher L'Espresso to pave the way for a tie-up of their digital broadcasting activities.

RTTNews Morning Market Briefing October 8, 2013.

Commentary October 8, 2013.

After ending the previous session sharply lower, stocks may attempt to regain some ground in early trading on Tuesday. The major index futures are currently pointing to modestly higher open for the markets, with the Dow futures up by 15 points. (Oct 8, 2013) Full Article  

Economic News

The growth in the Chinese service sector moderated in September, with the expansion hovering substantially below trend, a closely watched private survey revealed Tuesday. The HSBC/Markit services business activity index fell to 52.4 in September from 52.8 in August. Nonetheless, it remains above the boom-or-bust score of 50 that separates expansion from contraction. (Oct 8, 2013) Full Article 

German factory orders declined unexpectedly in August due to a fall in euro area demand, while overall shipments from the largest Eurozone nation recovered from July. Confounding expectations for a 1.1 percent rise, factory orders logged a 0.3 percent month-on-month drop in August. This was the second consecutive decrease in orders. (Oct 8, 2013) Full Article 

Todays WS Events

Accenture Investor & Analyst Conference At 11:00 AM ET
Accenture plc (ACN) will host a Investor & Analyst Conference call at 11:00 AM ET on October 8, 2013, in New York City. To access the live webcast, log on at (Oct 8, 2013)  

Alcoa Q3 13 Earnings Conference Call At 5:00 PM ET
Alcoa Inc. (AA) will host a conference call at 5:00 PM ET on October 8, 2013 , to discuss its Q3 13 earnings results. To access the live webcast log on to To listen to the live call, dial (800) 510-0146 (US) or + 1 (617) 614-3449 (International), Pass Code: 68006673 . For a replay call, dial (888) 286 8010 (US) or + 1 (617) 801 6888 (International), Pass Code: 18842532. (Oct 8, 2013)  

Procter & Gamble Annual Meeting Of Shareholders At 9:00 AM ET
Procter & Gamble Co.(PG) will host its 2013 Annual Meeting of Shareholders at 9:00 AM ET on October 8, 2013 in Cincinnati, OH. To access the live webcast, log on at (Oct 8, 2013)  

Wolverine World Wide Q3 13 Earnings Conference Call At 8:30 AM ET
Wolverine World Wide. (WWW) will host a conference call at 8:30 AM ET on October 08, 2013, to discuss its Q3 13 earnings results. To access the live webcast, log on at (Oct 8, 2013)  

NYT | ALERT FGC BOLSA - FGC FINANCIAL MARKETS OCTOBER 8, 2013: Today in Small Business: The "Enourmus" Benefits of Obamacare.

The New York Times | MY ALERTS


Compiled: October 8, 2013 08:36:34 AM

You're the Boss

Today in Small Business: The 'Enormous' Benefits of Obamacare Reasons to fear the debt ceiling. How the last recession still haunts. Where Twitter’s users are