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 The Opening Bell

MIKE BIRD

 NOV. 6, 2014

REUTERS/Luke MacGregor

Participants in costumes hold burning torches as they take part in one of a series of processions during Bonfire night celebrations in Lewes, southern England November 5, 2014.

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

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. Economists expect no change in policy. However, the post-meeting presser could reveal clues about further easing actions. Here’s everything you need to know.

The Bank Of England Stays Put. The Bank of England kept its benchmark interest rate unchanged at 0.50% and its asset purchase program target at 375 billion pounds.

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.

Markets Are Down. In Asia, Japan’s Nikkei closed down 0.8% and Hong Kong’s Hang Seng fell 0.2%. European markets are slightly down with Britain’s FTSE 100 down 0.3% and France’s CAC down 0.1%. US futures are unchanged.

US Data. At 8:30 a.m. ET, we’ll get the latest weekly tally of initial unemployment insurance claims. Economists estimate the pace of weekly claims fell to 285,000 from 287,000 a week ago. “Initial claims have been below 300k for seven consecutive weeks and continuing claims have been steadily trending lower, suggesting solid improvement in labor market performance,” Nomura economists said.

Tesla Surges. Electric car maker Tesla reported a $0.02 profit per share, beating expectations for a breakeven quarter. Shares are up by 6% in pre-market trading.

Whole Foods Goes Bananas. Grocery chain Whole Foods announced earnings of $0.35 per share, beating expectations for $0.32 per share. This was driven by a 3.1% gain in same-store sales. The stock is up by 9% in pre-market trading.

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.

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

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.

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.

10 Things You Need To Know Before The Opening Bell

MIKE BIRD

 OCT. 31, 2014

REUTERS/Toru Hanai

Bank of Japan Governor Haruhiko Kuroda smiles as he leaves the International Conference on the Future of Asia in Tokyo May 24, 2013.

Good morning! Here are the major stories making headlines and moving markets globally early Friday.

Japan Shocked Markets With More QE. In the face of disappointing inflation, Bank of Japan governor Haruhiko Kuroda has hiked Japan’s bond purchases, and the Nikkei soared to a six year high. 

The Eurozone’s Inflation Ticked Up A Little. Eurozone inflation rose to 0.4%, taking pressure to ease off the European Central Bank a little, but not much: the core measure of inflation is at its joint-lowest in history. 

Russia Hiked Interest Rates Massively. The Russian central bank raised rates by 150 basis points to 9.5% in a gamble that higher rates will halt the ruble’s slide against the dollar and the euro.

German Retail Sales Fell Through The Floor. Germany’s retail sales dropped 3.2% in September, the worst monthly decline since May 2008.  

European Stocks Are Surging. France’s CAC 40 index is up 2.03%, Germany’s DAX is up 1.75% and the UK’s FTSE 100 is up 1.11%. That’s after a massive rally which sent the Nikkei up 4.83%.

Ukraine Seems To Have Brokered A Gas Deal With Russia. Russia agreed to resume gas deliveries to Ukraine through the winter in an EU-brokered deal reached by the three parties in Brussels on Thursday, an EU source said. 

Consumer Spending Is Coming. Personal income and spending figures from the US are coming, at 8:30 a.m. ET, figures that should give some idea of the economy’s strength in September. 

RBS Is Braced For $639 Million Of Fines. State-owned Royal Bank of Scotland has set aside £400 million (€509 million) to settle allegations of price-rigging in foreign exchange markets. 

Sony Reported A Narrower Q2 Loss Than Expected. Operating loss reached 85.6 billion yen ($771 million) in July-September, compared with the 164.3 billion yen average estimate of three analysts polled by Thomson Reuters.

10 Things You Need To Know Before The Opening Bell

MIKE BIRD

OCT. 30, 2014

REUTERS/Amit Dave

Good morning! Here are the major stories making an impact early Thursday.

Rosneft’s Profits Are Collapsing. Rosneft, Russia’s biggest oil producer, reported a net profit of just 1 billion rubles ($23 million) in the third quarter, down from 172 billion rubles ($3 billion) in the previous quarter

German Unemployment Took An Unexpected Plunge. According to figures out Thursday from the country’s statistical agency, the number of people out of work and looking fell by 22,000 in October. The rate stays unchanged at 6.7%.

Modi Madness Catapulted India Stocks To Record Highs. India’s Sensex stock index is climbing to record intraday highs early Thursday. It’s up 0.92% today so far, sitting at 27,265.73 currently.

European Business Sentiment Ticked Up. After four months of stagnation or decline, economic sentiment among business managers in Europe has finally picked up in the euro currency area (by 0.8 points to 100.7).

Chad Holliday Will Be Shell’s First American Chairman. Bank of America’s ex-chairman Chad Holliday is about to become oil giant Shell’s chairman, according to a filing from the massive multinational Thursday morning. 

European Markets Are Getting Hit. After opening up, the major European equities indices are taking a beating. France’s CAC 40 is down 1.11%, Germany’s DAX is down 1.40% and the FTSE 100 is down 1.04%.

Barclays Is Braced For An $800 Million Forex Fine. Barclays on Thursday set aside £500 million ($800 million) linked to probes into price-rigging allegations in foreign exchange markets, and posted slumping third-quarter net profits.

US GDP Is Coming. Third quarter GDP figures will be released at 8:30 a.m. ET, with analysts expecting 3% annualized growth, a slight slowdown from the second quarter. 

Retailers Are Changing Their View On Apple Pay. MCX CEO Dekkers Davidson shot down an earlier report from The New York Timesthat said MCX members would suffer fines or penalties if they accepted Apple Pay.

Samsung Profits Are Sinking. Samsung Electronics says its third-quarter income has plunged 49% to the lowest level in nearly three years as its handset business slows down.

10 Things You Need To Know Before The Opening Bell

MIKE BIRD

OCT. 29, 2014

Vasily Fedosenko/Reuters

Ukraine may be close to an agreement on gas with Russia.

Good morning! Here are the major stories making waves in global financial markets early Wednesday.

The Fed Decision Is Coming. The Federal Reserve announces its latest monetary policy decision at 2 p.m. ET, with the final tapering installment and the end of QE3 expected. 

The Ruble Is Pushing To Fresh Lows. The ruble fell to a record low against the dollar and euro in early trading Wednesday despite a $2.5 billion intervention from the Russian central bank to prop up the currency.

Algeria Has Started Selling Light Crude Oil To Venezuela. That’s helping to prop up demand for oil as the price falls from Algeria’s perspective, but it’s a clear symbol of Venezuela’s decline. 

Facebook Is Taking A Beating. Facebook execs warned that 2015 will be a big year of investment for the company, and the share price dropped 10% in after-hours trading. 

Deutsche Bank Just Posted A $117 Million Loss And Fired Its CFO. Deutsche Bank reported a quarterly net loss of 92 million euros on Wednesday as heavy legal costs outweighed a rise in investment banking earnings.

There’s A 50% Chance Of Russia-Ukraine Gas Deal. Guenther Oettinger told Germany’s ZDF TV that a lot had been achieved so far in the three-way negotiations, but when asked what the chances were of a breakthrough, he answered: “Fifty percent.”

Nintendo Beat Analyst Forecasts. Long-struggling Japanese video game maker Nintendo eked out an unexpected operating profit in its fiscal second quarter, bolstering hopes it may be on track for its first annual profit in four years.

Hitachi Profits Surged. Hitachi said Wednesday its net profit for the six months to September nearly tripled to $850 million as the Japanese giant hiked its full-year earnings forecast.

Volkswagen Recalls Over 270,000 Audi Cars. Volkswagen’s Chinese joint venture will recall 270,635 Audi cars in China due to an air bag software issue, China’s quality watchdog said on Wednesday. 

Markets Are Rallying. In Europe, Germany’s DAX is up 0.77%, France’s CAC 40 is up 0.33% and the UK’s FTSE 100 is up 0.75%. Asian markets saw significant gains, with the Nikkei up 1.46% and the Hang Seng up 1.27%.

10 Things You Need To Know Before The Opening Bell

SAM RO

OCT. 27, 2014

REUTERS/Nacho Doce

Garbage bins with campaign stickers of Brazilian President and Workers’ Party (PT) presidential candidate Dilma Rousseff and former president Luiz Inacio Lula da Silva are seen during a march in support of Rousseff in Sao Paulo.

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

25 European Banks Fail The Stress Test. The European Central Bank examined how 130 European banks would perform under various adverse scenarios, and 25 of them failed. The review found that those 25 banks had a capital shortfall of €25 billion (or about $32 billion). “Banks with shortfalls must prepare capital plans within two weeks of the announcement of the results,” the ECB said. “The banks will have up to nine months to cover the capital shortfall.”

The World’s Oldest Bank Was The Worst. “Italy’s Monte dei Paschi di Siena faces a €2.1 billion ($2.7 billion) funding shortfall that could force it to seek a merger, after a European banking review revealed serious weak points in the Italian financial system,” Reuters reported. “The historic Tuscan lender, which was founded in 1472 and carried out a 5 billion euro capital increase as recently as June, said on Sunday it had hired Citigroup and UBS as advisers to consider strategic options.”

What About The Eurozone Deflation Scenario? Amid slowing growth, one of Europe’s biggest problems is low inflation, which puts the economy at risk of falling into deflation. This exclusion had folks saying that the stress tests weren’t stressful enough. “The scenario of deflation is not there because indeed we don’t consider that deflation is going to happen,” the ECB’s Vitor Constâncio said. “But let me highlight that nevertheless, whereas the baseline scenario which is in the stress test has inflation at 1.6 in 2016, in the adverse it comes down to 0.3. So this drop in inflation is indeed factored in in the exercise and is a very significant drop. So it cannot be said that we did not consider the impact of a scenario of very low inflation. Indeed, we did it in comparison with the baseline.” 

Credit Supply Isn’t The Problem In Europe. The ultimate conclusion of the ECB’s bank stress tests is that the banking system is relatively healthy. The banks have money to lend. So that’s not Europe’s problem. “Blockages are concentrated on the credit demand side rather than credit supply,” Societe Generale’s Michala Marcussen said.

Markets Are Sliding. In Europe, Britain’s FTSE 100 is down 0.3%, France’s CAC 40 is down 0.4%, Germany’s DAX is down 0.4%, and Italy’s FTSE MIB is down 1.7%. Asia closed mixed, with Japan’s Nikkei up 0.6% and Hong Kong’s Hang Seng down 0.6%. US futures are in the red, with Dow futures down 23 points and S&P futures down 5 points.

Brazil Re-Elects Dilma Rousseff. Dilma Rousseff had about 52% of the vote, securing her a second term as Brazil’s president. While this was largely expected, it is a sign that Brazil faces more of the same ineffective policies. “Over the last four years the country has taken a turn for the worse,” BI’s Linette Lopez noted. “Low commodity prices have hurt Brazilian exports, and so has a Chinese slowdown. Inflation is high and corporate profits are thin. This is a task that Wall Street analysts thought [center-right candidate Aecio] Neves was better suited for. He ran a campaign on tightening monetary policy and bringing investment back to Brazil.“

Brazilian Stocks Are Crashing. As soon as markets opened in Asia, a popular ETF tied to Brazil’s stock market trading in Japan plunged 7%. Similar ETFs trading in Europe are down by over 9%, led by an 11% plunge in Brazilian energy giant Petrobras.

German Confidence Tumbles. Germany’s IFO Business Climate Index fell to a 22-month low of 103.2 in October, which was worse than the 104.5 expected by economists. “The overall message from the IFO survey is then one of weak growth ahead, and elevated downside risks for growth in the fourth quarter,” Pantheon Macroeconomics’ Claus Vistesen said. “This downbeat signal from the IFO, though, is at odds with a more benign outlook as implied by the PMIs, but the survey data are currently broadly consistent with weak growth for the rest of the year.”

US Economic Data On Deck. At 9:45 a.m. ET, we’ll get the Markit US services PMI, which economists estimate will fall to 57.8 in October from 58.9 in September. At 10 a.m., we’ll get September pending home sales, which is expected to climb 1.0% month-over-month. The Dallas Fed Manufacturing Activity index at 10:30 a.m. is expected to climb to 11.0 in October from 10.8 a month ago.

US Earnings Announcements On Deck. The pharmaceutical giant Merck announced Q3 net earnings of $0.90 per share, which was stronger than the $0.88 expected by analysts. The drug company Allergan releases Q3 results before the bell. After the bell, Twitter announces earnings; analysts are forecasting $0.01 per share on the bottom line.

10 Things You Need To Know Before The Opening Bell

MIKE BIRD

 OCT. 24, 2014

pamhule/flickr

China Central Television’s headquarters in Beijing.

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

The Ruble Is Getting Crushed. The Russian ruble has fallen further against the dollar and the euro hitting record new lows against the currencies.

UK GDP Was In Line With Expectations. GDP rose by 0.7% in the third quarter, compared to the second, driven particularly by services. 

The EU Is Ordering The UK To Pay An Extra $2.6 Billion To Brussels. Britain has been told it must pay an extra €2.1 billion into the European Union budget by the end of next month because the UK economy is doing better relative to other European economies.

The Big European Markets Are Down. The FTSE 100 is down 0.23%, France’s CAC 40 is down 0.45%, and Germany’s DAX is down 0.32%. The Nikkei closed 1.01% higher. 

China’s Crumbling Property Market Just Wiped Out A Year’s Gains.Property prices are falling in 69 of China’s 70 major urban areas.

73 Swiss Banks Want US Tax Amnesty Deals Revised. Lawyers representing 73 Swiss banks seeking to avoid a tax-evasion probe by US authorities wrote a letter to the U.S. Department of Justice raising questions over a dozen demands, including the banks’ cooperation with other nations.

Asian Economic Growth Is Set To Languish As China Slows. Emerging Asia will contribute less to the global economy in 2015 than was expected just months ago as a slowdown in China drags on growth in the region, partially offset by acceleration in the United States, Reuters polls showed.

New Home Sales Are Coming. US sales of new homes in September will be out at 10 a.m ET, with analysts expecting about 470,000 sales. 

Amazon Is Taking A $170 Million Charge For Unsold Fire Phones. Amazon said it had $83 million worth of unsold Fire Phones at the end of the third quarter this year.

A US Port Squeeze Could Ruin Holiday Shopping. A shortage of transportation equipment and possible labor disruptions at ​the Los Angeles/Long Beach port complex, ​the nation’s busiest, is delaying shipping containers for up to three weeks, threatening timely delivery to retailers for the holiday season.

10 Things You Need To Know Before The Opening Bell

MIKE BIRD

 OCT. 23, 2014

REUTERS/CDIC

Peugeot CEO Maxime Picat.

Good morning! Here are the major stories making a big impact early Thursday.

The World’s Second Largest Retailer Is In Trouble. Tesco’s profits came in down 91.9% in comparison to their last result, and shares are down another 5%, after dropping by more than half in the last year.

It Looks Like France Is Back In Recession. France’s PMI figures are the worst in eight months, at 48, while Germany’s manufacturers look like they are out of the danger zone.

British Retail Sales Dipped. Sales fell 0.3% between August and September, in comparison to the 0.1% increase that economists expected.

European And Asian Markets Are Down. France’s CAC 40 is down 0.37%, Germany’s DAX is down 0.22%, the UK’s FTSE 100 is down 0.76%. The Nikkei fell 0.37% and the Hang Seng dropped 0.30% last night. 

The US Manufacturing PMI Is Coming. At 8:30 a.m. ET, jobless claims are out. At 9:45 a.m. ET, Markit’s US manufacturing PMI is out. Analysts expect a 57 print.

Business Activity Is Up In China. The huge developing economy’s PMI reading inched up to 50.4 from 50.2, despite a lot of concerns about China’s growth. 

Huawei Says Q3 Smartphone Shipments Jumped 26%. Shenzhen-based Huawei shipped 16.8 million smartphones globally in the quarter ending Sept. 30.

US-Led Air Strikes In Syria Have Killed 533 People. The strikes have killed 464 Islamic State group fighters, 57 militants from Al-Qaeda affiliate al-Nusra Front, and 32 civilians, the Britain-based Syrian Observatory for Human Rights said.

Two More Italian Banks Will Likely Have To Raise Capital After Stress Tests. Monte dei Paschi di Siena and Banca Carige will likely need additional capital to plug shortfalls found by the European Central Bank in region-wide bank stress tests, according to Bloomberg.

Peugeot Says Sales Are Edging Them Out Of The Crisis. Peugeot Citroen said Wednesday strong quarterly sales in China and by its car-parts subsidiary has kept its drive away from crisis on track, despite an overall lackluster performance.