Nov 1, 2013

RTTNews Forex Top Story November 1, 2013: China Factory Growth Hits 18-Month High As Production Strengthens.


Forex Top Story

China-ManufacturingPMI-110113.jpg China's manufacturing growth hit an 18-month high in October as firms stepped up production, in a sign that the economy is gradually stabilizing, a survey by the China Federation of Logistics and Purchasing and the National Bureau of Statistics revealed Friday. The purchasing managers' index, a measure of factory sector performance, rose to 51.4 in October from 51.1 in September.
koreatrade-120110.jpg Consumer prices in South Korea gained just 0.7 percent on year in October, Statistics Korea said on Friday - slowing to a fresh 14-year low. The headline figure was well shy of forecasts for an increase of 1.1 percent following the 0.8 percent increase in September. CPI now moves even further below...
trade.jpg Final demand producer prices in Australia climbed 1.3 percent in the third quarter of 2013 compared to the previous three months, the Australian Bureau of Statistics said on Friday. That exceeded expectations for an increase of 0.7 percent following the 0.1 percent gain in the second quarter. On...
USDJPY-103113.jpg The dollar is currently losing ground against the Japanese Yen on Thursday. The Bank of Japan maintained its monetary policy, but also increased its outlook for 2014. The U.S. currency is gaining ground against the Euro and is nearly unchanged against the pound sterling. As expected, the Federal Reserve...
ChicagoPMI-103113.jpg Chicago-area business activity unexpectedly grew at a substantially accelerated rate in the month of October, according to a report released by MNI Indicators on Thursday. MNI Indicators said the Chicago Business Barometer jumped to 65.9 in October from 55.7 in September, with a reading above 50 indicating growth in Chicago-area business activity.
JoblessClaims-103113.jpg While the Labor Department released a report on Thursday showing that first-time claims for U.S. unemployment benefits fell for the third consecutive week, claims still came in slightly above economist estimates. The report said initial jobless claims dipped to 340,000 in the week ended October 26th, a decrease of 10,000 from the previous week's unrevised figure of 350,000.
ItalyUnemployment-rate-103113.jpg Italy's unemployment rate increased more-than-expected in September and reached a record high as economic activity continued to be dragged down by the ongoing recession, and placements stalled amid fears that a recovery is unlikely in the near future.
EurozoneInflation-103113.jpg Eurozone inflation reached a four-year low in October helped by the strength of the euro, while the unemployment rate remained at a record high in September, suggesting that additional measures are needed to preserve the recovery, official data showed Thursday. Inflation fell to 0.7 percent in October, the lowest rate since November 2009, flash estimate published by Eurostat showed.
Germanconsumerconfidence-103113.jpg Germany's consumer confidence is seen diminishing slightly heading into November, a survey by market research group GfK revealed Thursday. Meanwhile, the country's retail sales fell for a second straight month in September, according to data released by the Federal Statistical Office. The GfK's forward-looking consumer confidence index for November edged down to 7 from 7.1 in October.
UK-House-Prices-103113.jpg U.K. house price growth accelerated in October, as the resilience of the economy together with policy measures propped up buyer demand that outstripped the supply, a report showed Thursday. House prices advanced 1 percent month-on-month in October, taking the average price of a home to GBP 173,678, the Nationwide Building Society said.
BankofJapan-103113.jpg The Bank of Japan on Thursday decided to hold its monetary easing plan unchanged and slightly revised up its forecast for economic growth in fiscal 2014. At the end of a two-day meeting of the nine-member Policy Board, led by Governor Haruhiko Kuroda, the central bank said it will keep the target for the monetary base expansion at an annual pace of JPY 60-70 trillion.
GBP-JPY-103113.jpg The Japanese yen advanced against other major currencies on Thursday after the Bank of Japan refrained from announcing further monetary easing and decided to adhere to its plan for monetary base expansion to fight deflation. "The Bank of Japan will conduct money market operations so that the monetary...
European-Economics-Preview-103113.jpg Unemployment and inflation from euro area and consumer confidence from Germany are due on Thursday, headlining a busy day for the European economic news.
uk-consumer-price-31102013.jpg Confidence among British consumers slipped for the first time in six months in October amid increased concerns about their personal finances and the prospects of the general economy, the results of a survey released by market research group GfK NOP showed Thursday. The GfK's consumer confidence index slipped to -11 in October from September's six-year high of -10.
trade.jpg Export prices in Australia climbed 4.2 percent in the third quarter of 2013 compared to the previous three months, the Australian Bureau of Statistics said on Thursday. That beat forecasts for an increase of 3.3 percent following the 0.3 percent decline in the second quarter. Among the individual...

U.S. Stock Market Future Indications by MarketWatch November 1, 2013: Futures rebound ahead of ISM data, Fed speakers.

www.marketwatch.com
By Sara Sjolin, MarketWatch 
 
LONDON (MarketWatch)U.S. stock futures pointed to a higher open on Wall Street on Friday, ahead of manufacturing data and Fed speakers that could provide some more clarity on how the economy fared during the government shutdown in October.
 
Futures for the Dow Jones Industrial Average DJZ3 +0.20%  rose 34 points, or 0.2%, to 15,511, while those for the S&P 500 index SPZ3 +0.09%  picked up 2.50 points, or 0.1%, to 1,753.50.

 Futures for the Nasdaq 100 index NDZ3 +0.22% climbed 8.25 points, or 0.2%, to 3,377.25. 

Emerging markets: Avoid these pitfalls
Causeway CEO Sarah Ketterer steers clear of countries with big current account deficits, but looks for stocks of companies that sell to the growing ranks of consumers. 

The gains came on the back of losses Thursday, when investors digested the possibility that the Federal Reserve may taper bond buys sooner than expected after a less-dovish-than-expected statement from the central bank’s policy meeting. 

In the light of the tapering discussion, investors on Friday will be looking closely at economic data to gauge if they weaken or strengthen the case for a reduction in asset purchases. At 10 a.m. Eastern Time, the report on manufacturing from the Institute for Supply Management is out, expected to fall to 55% in October from 56.2% in September, according to economists polled by MarketWatch. A reading above 50 indicates expansion. 

“With the Fed clearly mindful of ongoing economic weakness, traders will again be looking for clues in this number to predict just when that tapering will get underway,” analysts at Monex Capital said in a note. 

A separate manufacturing reading, Markit’s “final” manufacturing purchases managers index for October, comes out at 9 a.m. 

The week has offered a host of manufacturing data. On Thursday. the Chicago purchasing managers index jumped to 65.9 in October, its highest level since March 2011. Earlier in the week, the Fed said manufacturing production lost some steam, inching up 0.1% in September after advancing 0.5% in August.
Speeches from Federal Reserve members were likely to be watched closely on Friday for hints on their views on the outlook for the economy and monetary policy. 

St. Louis Fed President James Bullard, a supporter of the Fed’s asset purchase program, is speaking in St. Louis at 9:10 a.m. 

Richmond Fed President Jeffrey Lacker, who has opposed the Fed’s quantitative easing, will speak at noon Eastern. 

The earnings calendar isn’t as heavy as earlier in the week. Ahead of the open, Chevron Corp. CVX +0.73%  is projected to report third-quarter earnings of $2.69 a share, according to a consensus survey by FactSet. 

Madison Square Garden Co. MSG +4.10%  is forecast to post fiscal first-quarter earnings of 21 cents a share. 

Auto makers were also likely to see active trade on Friday, as the big manufacturers were slated to release October sales figures. General Motors Co. GM -0.49%  sales are projected to rise 10% to 215,274 vehicles and Ford Motor Co. F +0.41%  sales are estimated to jump 15.5% to 193,988 units, Edmunds.com said in a recent report. Overall car sales are forecast to climb to 15.4 million in October from 15.2 million in September, according to a MarketWatch poll.
American International Group Inc. AIG -3.37%  lost 2.7% in premarket trade after reporting third-quarter earnings late Thursday.
In other financial markets, Asian stocks closed mixed, after an official gauge of Chinese factory activity last month showed signs of weakness for smaller manufacturers. Europe stock indexes were mostly lower

Oil prices were slightly lower, while metals futures were mixed. The dollar DXY +0.28%  trended higher. 

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



NYT | Today's Headlines November 1, 2013: When Insurers Drop Policies: Three Stories.

The New York Times Most Popular | Video | Subscribe: Digital / Home Delivery

Today's Headlines

Friday, November 1, 2013


Top News
Judge Shira A. Scheindlin ruled in August that the Police Department had violated the Fourth and 14th Amendments.
Court Blocks Stop-and-Frisk Changes for New York Police

By JOSEPH GOLDSTEIN

A federal appellate panel says Judge Shira A. Scheindlin, who has been overseeing litigation on the tactic, violated a judicial code of conduct.
Julie Tyrrell, 54, of Phoenix, is not sure how she will deal with her cancellation.
When Insurers Drop Policies: Three Stories

By KATIE THOMAS and REED ABELSON

Now that new insurance marketplaces are opening under the Affordable Care Act, insurance companies are canceling millions of individual plans that fail to meet minimum standards.
Denis R. McDonough, the White House chief of staff, with Senator Claire McCaskill of Missouri.
Troubled Start for Health Law Has Democrats Feeling Anxious

By JONATHAN WEISMAN

President Obama now faces broad and mounting Democratic concerns that the troubled start of the insurance program will impact Democratic candidates in next year's midterm elections. 

Editors' Picks

BOOKS

Slide Show Slide Show: A Floating Historian's Hot-Air Adventure
Richard Holmes, author of "Falling Upwards," takes a ride in a balloon.

OPINION | Op-Ed Contributor

Being 'Partly Jewish'

By SUSAN KATZ MILLER

Children who grow up in interfaith communities, learning and celebrating both family religions, are not lost to Judaism.

QUOTATION OF THE DAY

"He's free, but he's not completely free."
RAY McGOVERN, a former C.I.A. official who met with Edward J. Snowden three weeks ago, on the conditions of his life in Russia.
ADVERTISEMENT

World
Rebels with the Free Syrian Army prepared to throw a homemade bomb in the northern city of Aleppo on Thursday.
Syria Destroys Chemical Sites, Inspectors Say

By ANNE BARNARD

While Syria met an important deadline, it still has 1,290 metric tons of chemical weapons it must destroy by mid-2014, inspectors said.
Edward J. Snowden
In Shadows, Hints of a Life and Even a Job for Snowden

By STEVEN LEE MYERS

Edward J. Snowden, a former National Security Agency contractor who received temporary asylum in Russia, will start work on Friday at an Internet company, a lawyer said.
German Politician Meets With Snowden

By THE NEW YORK TIMES

A member of the parliamentary committee that oversees German intelligence met Edward J. Snowden to explore whether he would testify in an inquiry of the N.S.A.'s monitoring of Chancellor Angela Merkel's calls.
For more world news, go to NYTimes.com/World »

U.S.
A tunnel under the United States-Mexico border equipped with electricity, ventilation and an electronic rail system was shut down by federal authorities in San Diego. Marijuana and cocaine were confiscated, and three people were taken into custody.
Tunnel for Smuggling Found Under U.S.-Mexico Border; Tons of Drugs Seized

By LIAM DILLON and IAN LOVETT

The sophisticated underground passageway featured electricity, ventilation and an electronic rail system and took about a year to build, officials said.
In Reversal, Court Allows Texas Law on Abortion

By ERIK ECKHOLM

Days after a federal judge blocked a Texas law that threatened to shut down many of the state's abortion clinics, an appeals court said the rule should take effect while the case goes forward.
A Google data center in Hamina, Finland. This summer, the company sped up a project to encrypt internal systems.
Angry Over U.S. Surveillance, Tech Giants Bolster Defenses

By CLAIRE CAIN MILLER

What began as a public relations predicament for the companies has evolved into a moral and business crisis that threatens their businesses.

Asian Markets at Close Report by MarketWatch November 1, 2013: Asian Stocks Fall After China PMI Shows Weakness.

www.marketwatch.com
By Mia Lamar 

Stocks in Asia were mostly lower Friday after an official gauge of Chinese factory activity last month showed signs of weakness. 
 
China’s manufacturing Purchasing Managers Index rose to 51.4 in October from 51.1 in September, indicating expansion and edging ahead of economist expectations. 

A closer look at the data, however, showed a sizeable gap between large and small manufacturers, with the latter reporting a contraction in activity for the month. 

“Although the PMI rose in October for the fourth consecutive month, the momentum driving the increase is unbalanced,” said Zhao Qinghe, a spokesman for China’s National Bureau of Statistics.
Pressure is rising on China to show it can maintain a recent stabilization of economic growth after a worrying slowdown in the first half of the year. 


Reuters Image
Stocks on Hong Kong’s benchmark Hang Seng Index   HK:HSI +0.19%  and China’s Shanghai Composite CN:SHCOMP +0.37%  were flat in midday trade. In Sydney, the S&P ASX 200 AU:XJO -0.27%  fell 0.3%.
South Korea was a bright spot in the region after the country reported a stronger-than-expected 7.3% rise in exports last month. Economists polled by The Wall Street Journal on average expected a 4.5% rise. Imports rose 5.1%, also more than expected. 


Investors have flocked to South Korean stocks since late summer, attracted by the country’s strong finances and stable currency. The benchmark Kospi index KR:SEU +0.46%  rose 0.3% Friday.
In Japan, the Nikkei 225 index JP:NIK -0.88%  reversed earlier gains, falling 1.1% as the yen firmed against the U.S. dollar. The Japanese currency USDJPY -0.10%  recently was at ¥97.95 versus ¥98.36 late Thursday in New York. 

Technology earnings were on the radar in Tokyo. Sony Corp. JP:6758 -11.14%   SNE -11.04%  shares slid 12% after the company reported a wider loss for the September quarter and slashed its profit forecast for the year by 40%

Pointing in the other direction, SoftBank Corp. JP:9984 +3.43%   SFTBF -0.42%  shares rose 2% after the telecom company reported a 44% leap in quarterly profit, helped by strong demand for Apple Inc. AAPL +0.06%  iPhones sold by its mobile unit in Japan.

“Clearly the earnings picture is a compelling one, but the lack of clarity in government policy, especially Prime Minister Abe’s “Third Arrow” of structural reforms seems to be an inhibitor to foreign investor interest,” said CLSA equity strategist Nicholas Smith. 

Mining Sector Top Stories November 1, 2013: Decision to suspend Pascua-Lama construction only “temporary” - Barrick.

Mineweb logo

Top Stories | Friday , 01 Nov 2013

Decision to suspend Pascua-Lama construction only “temporary” - Barrick

Silver Wheaton has amended and extended its Pascua-Lama silver streaming agreement with Barrick, stating the suspension of project construction will not impact the silver company. Friday , 01 Nov 2013

ASX Wrap: PanAust pays up to $125m for Glencore's copper-gold Frieda River

PanAust buys into the largest undeveloped gold-copper project in Asia Pacific, easing pressure on Highlands Pacific, whilst Indochine begins drilling at high grade Mt Kare. Friday , 01 Nov 2013

Newmont’s lower costs help 3Q beat analysts’ estimates

“Our efforts to improve costs and efficiencies are gaining momentum, and we have reduced consolidated spending by $700 million year-to-date,” said Newmont CEO Gary Goldberg. Friday , 01 Nov 2013

Barrick to raise $3bn, dilute shares to repay debt

A massive financing could increase the number of Barrick shares to as many as 1.16 billion shares in order to raise as much as US$3.3 billion. Friday , 01 Nov 2013

Where, what, how, cash: Blind porphyry hunt on a shoestring budget

An unscheduled column on junior exploration. Today, Savant's bid to find copper porphyries in a mega copper porphyry district in Arizona. Thursday , 31 Oct 2013

E&Y sees AIM junior mining index flattening – perhaps bottoming?

A flattening of Ernst & Young’s Mining Eye Index, which tracks LSE AIM listed junior miners and explorers, after several quarters of decline, could be a sign sentiment is improving. Thursday , 31 Oct 2013

Jewellers improvise ahead of Diwali to woo customers and ward off high prices

Gold plated playing cards, 1000-rupee gold foil notes, silver coins are all the rage ahead of Diwali. Thursday , 31 Oct 2013

South African mine strikes doing little to lift platinum

Five years ago, the threat of production cuts in South Africa was the primary force driving platinum prices to record highs at $2,290/oz. Friday , 01 Nov 2013

Codelco seen raising China copper premium to 9-year high

The Chilean copper producer has already increased the premium it charges European buyers by 32 percent. Friday , 01 Nov 2013

Lonmin wage dispute tees up sector-wide strike

A wage strike is looming across South Africa’s platinum belt after AMCU members voted to down tools at Impala Platinum. Thursday , 31 Oct 2013

Centerra shareholders won't give up more of Kumtor stake

CEO Ian Atkinson says the company’s minority owners are unlikely to back any further reduction in the value of their investment in the Kyrgyz mine. Friday , 01 Nov 2013

Jobs on the line as India's gold sector suffers under govt curbs

Gold on the local market is now fetching a record premium of $130 an ounce to the global bullion price and that is expected to climb even higher because of coming festivals. Friday , 01 Nov 2013

Canada says revised Taseko mine plan may harm environment

A Canadian federal review panel said Thursday that the company’s revised plan for a mine in BC poses threats to the environment. Friday , 01 Nov 2013

Australia commodity price index falls in Oct - RBA

The Reserve Bank of Australia’s index of commodity prices fell in October, dragged by drops in iron ore, gold and oil combined with a rising local currency. Friday , 01 Nov 2013

De Beers head of sales Varda Shine to leave in January

The diamond producer's long-serving head of sales, would be leaving the group at the end of January, De Beers said. Friday , 01 Nov 2013

Higher Indonesia tin trade in October should boost exports

Tin traded on Indonesia's only approved exchange rose to around 3,000 tonnes last month from 795 tonnes in September. Friday , 01 Nov 2013

Sibanye CEO says union-weary miners are unlikely to strike

Neal Froneman says workers disappointed by the performance of their labour unions are unlikely to strike over wages next week. Thursday , 31 Oct 2013

Zimbabwe to review Implats’ $971 million stake sale

The government plans to review a proposal by Impala Platinum to sell control of its Zimplats unit to local black investors for $971 million. Thursday , 31 Oct 2013

Glencore Xstrata to list in Johannesburg on Nov. 13

The company is seeking an extra listing in South Africa, in addition to the London Stock Exchange and a secondary listing in Hong Kong. Thursday , 31 Oct 2013

Yesterday's top story: Gold and the evolution of the dollar

The World Gold Council argues that gold is likely to grow in prominence as a balancing mechanism against the risks inherent in fiat currencies. Wednesday , 30 Oct 2013

Podcasts / Radio

India, Fed tapering and the impact of lower tail risk for gold- Steel

According to HSBC's James Steel, the market was on a high-octane fuelled rally for a good five years so it is unsurprising things have cooled somewhat but that doesn't mean there is no further upside.

Silver's current consolidation and the coming decade - Rannestad

According to CPM Group commodity analyst, Erica Rannestad, silver prices are likely to consolidate through to 2016 before moving higher.

Expect gold to bump along the bottom for some time still - Kendall

This to us is a bear market, says Credit Suisse's Tom Kendall of the gold market, but there still seems to be a surprising number of participants who refuse to accept that.

Gold cycles, equities and the desperate need for exploration - Lassonde

Franco Nevada Chair, Pierre Lassonde, discusses the similarities between the current gold market and the 1970s and examines the current state of the equities sector.

The Telegraph City Briefing November 1, 2013.


The Telegraph
 


 
Citybriefing  
LOUISE ARMITSTEAD
CHIEF BUSINESS CORRESPONDENT
Follow Louise on Twitter
LOUISE ARMITSTEAD
TOP OF THE AGENDA

Good news, bad news from Royal Bank of Scotland today. The state controlled lender will stay in one piece after the Treasury rejected proposals to break-up RBS and create a "bad bank". In its review published today, the Treasury said the division would require more taxpayer funds so it's backing RBS's own proposal to ringfence the poor loans in a £38bn "internal bad bank." So the bank survives - but it is a worst state that expected. After two quarters of profits, RBS has swung back into the red with a pre-tax loss of £634m. It's better than last year's £1.2bn loss but analysts were expecting around £440m profit. Ross McEwan has used his first set of results since he took over from Stephen Hester last month to do a bit of kitchen sinking, concluding that the bank needs to "find a way" of serving customers from a "more efficient, effective and agile business platform that the one we have today." He's highlighted an internal report by Sir Andrew Large that confirms SME complaints about RBS's lending practices. Mr McEwan told Radio 4 this morning that "today is a defining day" for RBS but he added: "We need to do a better job."

Meanwhile, Direct Line, the insurance group that was spun out of RBS, has announced a 20.1pc jump in operating profits to £417.8m over nine months and a 6.1pc rise over the third quarter to £131.2m. DS Smith, the packaging group, has said trading is in line with expectations. Wincanton has said its Pullman Fleet Services has won a contract to repair and maintain Asda's fleet of home delivering vehicles. And ING Group has said it has reached an agreement with the Dutch state on the unwinding of the Illiquid Assets Back-Up Facility, established at the apex of the crisis in 2009 to support the bank. In Japan, Nissan has published third quarter results.  And later in America, Warren Buffet's Berkshire Hathaway is publishing third quarter results.

China's manufacturing growth has surged to an 18-month high with the official PMI reading 51.4 from 51.1 last month. At 930am the latest manufacturing PMI will be published by CIPS. And Sir Jon Cunliffe starts as Deputy Governor of the Bank of England, succeeding Paul Tucker who stepped down two weeks ago.

Energy taxes are a mess and need overhaul, according to a report today by the Institute of Fiscal Studies. The think tank has argued that a single, consistent carbon price would be a more effective way of tackling climate change than the complex system whereby businesses are taxed more than households and elecricity is taxed more than gas. The National Audit Office has called for the Government to combine its funding support for small firms into a "more unified programme". The NAO has assessed six schemes run by the Department of Business and designed to fill gaps in the lending market.  Meanwhile a Business for Britain poll has found that 46pc of bosses reckon the costs of complying with European regulation outweighs the benefits of the single market. Two thirds support the PM's pledge to hold an in/out referendum on EU membership.

Apple's new iPad Air goes on sales today ranging in price from £399 to £639. A study by bmj.com has claimed that a 20pc tax on sugary drinks would reduce the number of obese Brits by 180,000, or 1.3pc, and raise £276m a year. And it's the first day of "Moovember", the annual charity movement that challenges men to grow a moustache to raise funds for prostate cancer research. Have a good weekend.

QUOTE OF THE DAY

The Government wants to see strong sanctions against those who manipulate energy markets and will consult on criminal penalties, such as those already in place in financial markets, for such actions, The Coalition’s annual Energy Statement said criminal rules for the energy sector are now under consideration.

FIGURE OF THE DAY

£220mThe amount Ontario Teachers' Pension Plan is thought to be spending on the Busy Bees nursery chain.

IN THIS MORNING'S TELEGRAPH

Katherine Rushton believes our Government must stop abandoning our companies to American wolves.
Ambrose Evans-Pritchard
reports that Europe has moved nearer to a Japan-style deflation trap following shock price falls.

Szu Ping Chan
writes that a 15-year-old boy is taking on Nomura's chief UK economist and politicians with his plan for a British exit from the European Union.

BEST OF THE REST

Financial Times (£): Microsoft's next chief executive should consider spinning off consumer businesses including search advertising and the Xbox games console, according to co-founder Paul Allen.

The Guardian: The Financial Conduct Authority has warned City firms to strengthen their defences against financial crime after it found serious failures in wealth and asset managers' anti-money laundering and corruption meaasures.

The Mail:
British expats living in eurozone countries have taken a significant financial hit over the past 12 months because of the impact of the fluctuating euro on their state pension incomes.

THE EQUITY MARKETS

In London, the FTSE 100 yesterday fell 46.27 points to 6,731.43.

In the US, the Dow Jones Industrial Average closed down 73.01 points at 15,545.75. The S&P 500 dropped 6.77 points to 1,756.54.
 
The Nikkei fell 0.88pc this morning, closing at 14,201.57.

BEST OF THE BROKER NOTES

Numis Securities examined the implications of two stake sales by the founders of bwin.party.
If any potential corporate bidder didn’t know that 14pc of the shares are for sale they certainly do now.

COMMODITIES

Brent crude oil fell 0.93pc to $108.84 a barrel. Gold dropped 2.27pc to $1,324 an ounce. More here.

THE MONEY MARKETS

Sterling rose 1.43 cents against the euro to €1.1818 and fell 0.10 cents against the dollar to $1.6066. More here.

Latest Post Published

Biggest Moves Premarket: IMAX, CorelLogic,CoStar Group & More.

  cnbc.com Stocks making the biggest moves in the premarket: IMAX, CoreLogic, CoStar Group & more Peter Scha...