10 Things You Need To Know Before European Markets Open

MIKE BIRD

NOV. 14, 2014, 3:30 PM

REUTERS/Daniel Dal Zennaro/Poo

Good morning! Here are the big news stories having an impact ahead of markets opening in London and Paris. 

French GDP Came In Slightly Better Than Expected.Europe’s second biggest economy registered a 0.3% expansion in the third quarter, a slightly higher figure than analysts thought.

Germany Has Avoided Recession By A Hair. The German economy grew by 0.1% in the third quarter. That’s as weak as growth gets.

Twitter Got Junked. Twitter shares fell more than 5% in afternoon trade on Thursday, giving up almost all of their gains from Wednesday, after the company received a “junk” rating from credit agency S&P.

RBS Is Exiting The US Mortgage Business. Royal Bank of Scotland Plc’s securities unit will now exit its US mortgage trading business after originally planning to shrink it by two-thirds.

US Retail Sales Are Coming. That’s the biggest data release from the US today, at 1.30 p.m. GMT. Analysts are expecting a 0.2% boost for October, after an unexpected 0.3% fall in September.

Takata Says It’s Adding Two Lines At A Mexico Plant To Meet Recall Need. Takata said on Friday it would add two new production lines at its Monclova factory in Mexico to meet replacement demand for air bag inflators at the center of a recall of millions of vehicles worldwide.

Airbus Recorded A Boost In Profit. Airbus Group reported a 12 percent rise in nine-month underlying operating profit on Friday led by its planemaking and helicopter divisions, and reaffirmed its profit forecasts for the year.

European GDP And Inflation Are Coming. At 10 a.m. GMT, we’ll get numbers for the eurozone’s GDP and inflation for Q3 and October respectively. Economists are expecting a 0.4% reading for inflation and just a 0.1% rise in GDP.

Asian Markets Are Up. Japan’s Nikkei climbed again, closing up 0.56%. Hong Kong’s Hang Seng is also currently up 0.13% just ahead of the close. 

David Cameron Is Warning Of More Sanctions On Russia. Russia could face further sanctions if it does not commit to resolving the conflict in Ukraine, British Prime Minister David Cameron said Friday, as he called Moscow’s actions “unacceptable”.

10 Things You Need To Know Before European Markets Open

MIKE BIRD

 NOV. 13, 2014

REUTERS/Ueslei Marcelino

Japanese prime minister Shinzo Abe may call a snap election.

Good morning! Here are some of the major news stories moving markets ahead of the market opening in London. 

A Senior Japanese Lawmaker Says Prime Minister Shinzo Abe Has Decided To Call An Election. “It looks like Shinzo Abe has finally made up his mind and it’s fair to consider that he decided to go to the people,” said Tadamori Oshima, a former deputy chief of Abe’s party. 

The Saudi Oil Minister Seems Comfortable With Lower Prices.Minister Ali Al-Naimi denied that the OPEC cartel nations were engaged in a price war, saying that the market set prices, according to the Financial Times.

German Inflation Came In As Expected. Prices rose by 0.8% in the year to October, with more European inflation data out later this morning.

India And The United States Have Resolved Some Of Their Trade Differences. Washington and New Delhi said Thursday they have resolved a row over Indian food subsidies that blocked a key WTO trade agreement earlier this year.

Hasbro Is Reportedly In Talks About Buying Dreamworks Animation. Deadline reports that DreamWorks and Hasbro are in talks to create a combined family entertainment company that would be called DreamWorks-Hasbro, and says the deal is at least 60 days away from being finalised. 

Sony Just Unveiled Web-Based Service Playstation Vue. The new cloud-based TV service, PlayStation Vue, is expected to be commercially launched during the first quarter of 2015. The web-based television service allows users to access live TV and on-demand content without a cable or satellite service, the company said. 

China Is Set To Lift Its Aid to Pacific Nations. Chinese President Xi Jinping will offer a broad aid package to Pacific island nations at a summit in Fiji next week, a foreign ministry official said on Thursday, adding that there was also room to work with six island states not invited because of ties to Taiwan. 

It’s A Quiet Day For Data. Confirmations of inflation in Spain, France and Italy are out before 9 a.m. GMT, and US initial jobless numbers are out at 1.30 p.m. GMT, with economists expecting 280,000 applications for unemployment assistance in the week to November 7. 

Asian Markets Rallied. The Nikkei closed up 1.14% in trading today and Hong Kong’s Hang Seng is currently up 0.27%

Keystone Pipeline May Finally Pass US Congress Next Week. The US Congress will vote in coming days on approving construction of the much-delayed Keystone XL oil pipeline, a project Republicans claim is step one in their plan for enhanced US energy production.

10 Things You Need To Know Before European Markets Open

MIKE BIRD

 NOV. 12, 2014

Kim Kyung-Hoon/Reuters

U.S. President Barack Obama (L) shakes hands with China’s President Xi Jinping during the Asia Pacific Economic Cooperation (APEC) forum, at the International Convention Center at Yanqi Lake in Beijing, November 11, 2014.

Five Massive Banks Were Just Fined $3.3 Billion For Allegedly Manipulating Currency Markets. UBS, the Royal Bank of Scotland, JP Morgan, HSBC and Citibank were all fined more than of $3.2 billion by authorities in Switzerland, the UK, and the US this morning.

The US And China Just Made A Landmark Joint Deal On Climate Change. China will aim for a peak in greenhouse gas emissions by 2030, while the United States will strive to cut total emissions by more than a quarter by 2025, as the two countries try to drive through a new global climate pact in Paris next year.

Samsung Just Cranked Up Its Legal Battle With Chipmaker Nvidia. Samsung has accused Nvidia of infringing several of its semiconductor-related patents and for making false claims about its products, counter-suing after Nvidia filed a lawsuit against the Korean company in September.

Japanese Shares Hit 7 Year Highs. The Nikkei climbed 0.43%, after trading higher during the day, hitting the highest levels in 7 years.

That’s Because Of Snap Election Rumours In Japan. Prime Minister Shinzo Abe may call an emergency election to justify delaying or scrapping the second sales tax hike planned for the country. 

eBay Admits It Banned A Whistleblower Warning Shoppers About Fake Products. When a consumer watchdog organization alerted eBay that it had found hundreds of counterfeits on the site, eBay blocked the whistleblower’s accounts and removed its comments warning people about fake products.

UK Unemployment And European Industrial Production Are Coming.They’re at 9.30 a.m. ET and 10 a.m. ET respectively, with economists expecting a 0.7% jump in industrial production and UK unemployment to fall to 5.9%.

Shell Says It’s Focused On Deep Water Oil Projects In Mexico. Royal Dutch Shell, one of the world’s largest oil companies, is most interested in new oil and gas projects in the deep waters of the Gulf of Mexico following a major sector opening finalized earlier this year, a top executive said on Tuesday.

Volvo Is Reportedly Cutting 3,000 Staff. Swedish truck maker Volvo will cut around 3,000 staff as part of a savings plan to boost profitability, business daily Dagens Industri said on Tuesday.

The Bill For Shutting Nuclear Plants Will Hit $100 Billion. According to the Financial Times, the international bill for winding down the world’s nuclear power plants will hit $100 billion in the next 25 years.

10 Things You Need To Know Before European Markets Open

DINA SPECTOR

 NOV. 11, 2014

REUTERS/Lucy Nicholson

Jack Ma, Executive Chairman of Alibaba

Good morning! Here’s what you need to know:

Alibaba Posts Record Sales On Singles Day. On the world’s largest online shopping day of the year, China’s Alibaba shattered last year’s full-day sales of $5.75 billion, pulling in $5.8 billion by the afternoon. 

Aldi Is Hiring. German discount supermarket Aldi said it will create 35,000 news jobs in the UK by opening 1,000 new stores over the next 8 years. Aldi, along with other price-cut retailers in Britain, have been taking market share from the “big four” supermarkets, Tesco, Asda, Morrisons, and Sainsbury’s. 

GoPro Is Selling More Shares. Five months after its $491 million IPO, American camera maker GoPro is selling up to $800 million of stock, according to an SEC filing on Monday. In an email to employees, CEO Nick Woodman said: “I plan to sell a portion of my holdings in GoPro, but no one should misunderstand my commitment to the company or our vision.”

Asia’s In The Green. Japan’s Nikkei closed up 2.05% and the Hong Kong Hang Seng Index is up 0.25%. “The Nikkei stock average rising to a 7-year high as speculators snapped up futures and call options as they wagered that Prime Minister Shinzo Abe may postpone a planned sales tax increase,” Reuters writes. 

The US And China Reach A Deal. In breakthrough negotiations, the Obama administration said it had achieved a deal with China to eliminate tariffs on a range of technology products. “With trade in tech goods surpassing $4 trillion annually, the commercial significance of these negotiations is obvious,” Myron Brilliant, the head of international affairs of the United States Chamber of Commerce, told The New York Times. 

Mondelez Is Expanding. Mondelez International, the maker of Nabisco biscuits and Cadbury chocolate, plans to pay $370 million for an 80% stake in Kinh Do, a Vietnamese snack business. “Our significant investment in Kinh Do and Vietnam is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market,” Mondelez executive Tim Cofer said in a statement.  

Unilever Sues Egg-Free Mayo Maker. Unilever, the maker of Hellmann’s mayonnaise, is suing a startup that makes eggless mayo for false advertising and fraud. In the lawsuit, Unilever claims that Hampton Creek’s Just Mayo is hurting sales of its own sandwich spread products. 

McDonald’s Sales Fell Last Month. Worldwide sales at the fast-food giant dropped 0.5% in October, which is better than the 2.2% decline that economists expected. 

A Divorce Ruling Makes History. The CEO of Continental Resources, Harold Hamm, has been ordered to pay his ex-wife $999.5 million in a divorce ruling. The payout could make Sue Ann Hamm one of the 100 wealthiest women in America. 

Samsung Has Its Eyes On Vietnam. The electronics maker plans to invest $3 billion (£1.8 billion) to build a second smartphone plant in Vietnam’s capital of Hanoi. “Vietnam is in a unique position,” Lam Nguyen, Ho Chi Minh City-based country director at International Data Corp. told Bloomberg. “You have a motivated workforce and in terms of labour costs, they are cheaper than China, cheaper than Thailand.”

10 Things You Need To Know Before European Markets Open

MIKE BIRD

 NOV. 10, 2014

REUTERS/Paul Hanna

Catalonian president Artur Mas voting in Sunday’s unofficial referendum.

Good morning! Here’s what you need to know. 

Chinese Inflation Is At A 5-Year Low. China’s annual consumer inflation remained at a near 5-year low in October at 1.6%. 

South Korea And China May Have A Trade Deal. South Korea said it has“effectively” reached a free trade agreement with China that will remove or sharply reduce barriers to trade and investment between the two global trade giants. 

An Overwhelming Number Of Catalans Voted For Independence. Nearly 81% of 2.25 million Catalans who participated in a simulated referendum Sunday said they wanted autonomy from Spain, according to preliminary results. 

Russia Signed Another Big Gas Deal With China. The Russian and Chinese governments have signed another significant gas deal, after an earlier agreement this year, according to the Financial Times. 

Heavy Shelling Picked Up Again In East Ukraine. Shelling around the eastern Ukrainian city of Donetsk increased strains on a two-month-old ceasefire between Ukrainian government forces and pro-Russian separatists on Sunday. 

Samsung Is About To Invest $3 Billion (£1.89 Billion) In Vietnam. A subsidiary of South Korea’s Samsung will be awarded a license to invest $3 billion in a mobile phone plant in northern Vietnam, the second such facility in the country, a state-run newspaper said on Monday.  

American Airlines Staff Rejected A Contract. American Airlines flight attendants narrowly rejected a joint labour contract on Sunday, in a defeat following the merger of American and the former US Airways last year. 

Panasonic Is Considering Expansion In Europe. Japanese electronics conglomerate Panasonic Corp is considering M&A deals as a way to bolster its position in the European white goods market, its chief executive said on Monday.

European Investor Confidence Figures Are Coming. Sentix investor confidence figures are out at 9.30 a.m. GMT, with analysts expecting a modest improvement in November’s headline figures.

Hong Kong And Shanghai’s Stock Exchanges Are About To Get A link. A delayed trading link between Hong Kong and Shanghai’s stock exchanges will start on Nov. 17, the Hong Kong exchange announced Monday.

10 Things You Need To Know Before European Markets Open

MIKE BIRD

 NOV. 6, 2014

REUTERS/Ints Kalnins

Good morning! Here’s what you need to know before London, Paris, and Frankfurt open this morning. 

Dealogic Is Being Bought For $700 Million (€559 Million).Carlyle Group LP said it would partner with other investors to buy US-based financial data provider Dealogic. 

Wind Hit Siemens’ Profits.German engineering group Siemens missed expectations for third quarter core profit, hurt by charges for faulty wind turbines that pushed its wind power division to a loss.

India’s Infosys Is Hiring 2,100 People In The US. The IT services provider said it plans to hire over 2,100 people in the United States as the company works toward scaling up its global presence and boost key work areas like client relationship management and consulting.

Hong Kong’s Remaining Protesters Clashed With Police. Hong Kong pro-democracy protesters clashed with police in the densely populated district of Mong Kok early Thursday as tensions escalated at one of three remaining demonstration sites for the first time in more than two weeks.

News Corp Revenues Are Up 4%. News Corp, publisher of the Wall Street Journal, the Sun, and the Times, reported a 4% rise in quarterly revenue, helped by higher sales at its book publishing and online real estate services businesses.

The ECB Meeting Is Coming. The big economic calendar event today is the European Central Bank’s rates decision, and Mario Draghi’s press conference. Here’s everything you need to know. 

Asian Markets Are Mixed. The Nikkei closed down 0.86%, a slight correction for Japanese stocks after several rallies. Hong Kong’s Hang Seng is currently up 0.01%.

German Factory Orders Were Awful Again. The eurozone’s biggest economy recorded a measly 0.8% boost to factory orders for September. Analysts had expected a 2.3% rise, which would have partly counteracted August’s 5.7% collapse.

Luxembourg’s Alleged Secret Tax Deals With Massive Firms Have Been Leaked. Hundreds of the world’s biggest companies reportedly brokered secret deals with Luxembourg to avoid paying billions of dollars in tax according to a trove of leaked documents published by an investigative journalism group.

Italian Bank Monte Dei Paschi Will Raise €2.5 Billion. The world’s oldest bank has approved the capital increase to fill to its capital deficit, revealed in the ECB’s recent stress tests, and to pay back the 1.1 euros it still owes to the Italian state.

10 Things You Need To Know Before European Markets Open

MIKE BIRD

NOV. 5, 2014

REUTERS/Charles Platiau

French economy minister Emmanuel Macron approved the GE-Alstrom deal.

Good morning! Here’s what you need to know before markets open in London, Paris, and Frankfurt. 

The French Government Just Approved the GE-Alstrom Merger. General Electric’s planned €12.4 billion ($15.6 billion) purchase of most of Alstom’s power business was approved by economy minister Emmanuel Macron.

PIMCO’s Flagship Fund Saw Its Biggest Outflows Ever.$27.5 billion (£17.7 billion) left PIMCO’s Total Return Fund in October, bringing the fund’s assets under management to $170.9 billion as of 31 October, a roughly 14% decline from the start of the month.

Republicans Now Control Both US Chambers Of Congress. The Republicans needed six additional Senators to win a majority in Tuesday midterm election, and won seven. 

Toyota Just Boosted Its Profit Forecast 9%. Toyota raised its full-year operating profit forecast by 9.1% on Wednesday as a sharp decline in the yen against increases in the value of repatriated earnings makes up for lower vehicle sales.

The IMF Thinks It Prematurely Pushed For Austerity. The IMF gave leading economies faulty advice following the 2008 financial crisis, by directing them to cut spending and rely on central bank stimulus for growth, an internal policy review said Tuesday.

Markets Are Mixed In Asia. The Nikkei closed up 0.44%, while Hong Kong’s Hang Seng is currently trading down 0.60%.

Rolls Royce Has Cut 2,600 Jobs. The engine maker is also replacing its finance chief after two profit warnings in an eight-month period. 

China’s Services Underperformed in October. China’s services PMI dipped to 52.9, the lowest level in three months. 

PMIs Are Coming. Between 8.15 and 9.30 a.m. GMT, European PMI readings will be released, with the overall trend in the eurozone and UK expected to be slightly downward. At 10 a.m. GMT, European retail sales figures are out, with economists expecting a 0.8% drop between August and September. 

Cement Maker Lafarge’s Third Quarter Met Expectations. French cement maker Lafarge, which is preparing to merge with Swiss-based Holcim, confirmed its €550 million ($696.9 million) 2015 cost-saving goal on Wednesday.