Mario Draghi And The European Central Bank Can’t Ignore This Chart

SAM RO

 SEP. 1, 2014

Deutsche Bank

The European Central Bank will meet on Thursday and announce any changes to its already easy monetary policy.

The meeting follows an ugly series of depressing economic reports. And amid broad evidence of slowing, it’s become very clear that inflation is getting closer to zero.

On Friday, we learned consumer prices in the 18-country eurozone climbed by just 0.3% in August, a slight tick down from 0.4% in July. Prices in Italy actually fell 0.2% year-over-year.

This lack of inflation should provide the ECB with the flexibility ease policy further.

However, the consensus is for the ECB to make no change in its policy, which includes a main refinancing rate of 0.15%, a marginal lending facility rate of 0.4%, and a deposit facility rate of -0.1%.

Deutsche Bank’s Torsten Slok is among the economists who believe ECB President Mario Draghi will act.

“It is difficult to see how the ECB next week is going to ignore the trend we have seen over the past two years in this chart,” wrote Slok in an email that included the chart above. “And note that this trend is not just driven by Ukraine or temporary factors. It is going to take some time to reverse this downtrend in European inflation and as a result US rates are going to look attractive for at least a few more months.”

Indeed, while the forces initially slowing Europe down appear to have come from within, we can’t ignore the fact that Putin’s control over Europe’s gas supply only keeps downside risks elevated.

S&P 500 MAKES A NEW ALL-TIME HIGH: Here’s What You Need To Know

MYLES UDLAND

 AUG. 30, 2014

Wikimedia Commons

It’s a long weekend for U.S. investors: time to barbecue some ribs.

Stocks went nowhere in a quiet trading session ahead of the Labor Day holiday weekend. As Rich Barry of NYSE put it in his mid-afternoon update on Friday: “Felt like I was the only knucklehead commuting to work this morning.” Despite the quiet trading session, the S&P 500 did manage to make a new all-time closing high for the third time this week. 

First, the scoreboard:

• Dow: 17,089.83, +10.3, (+0.06%)
• S&P 500: 2,003.26, +6.5, (+0.3%)
• Nasdaq: 4,575.45, +17.8, (+0.4%)

And now, the top stories on Friday:

1. Personal spending unexpectedly declined in July, falling 0.1% against expectations for a gain of 0.2%. Personal income also came in below expectations, growing 0.2% against expectations for a 0.4% increase. The personal income and outlays report also contained the latest personal consumption expenditures, or PCE, data, the Federal Reserve’s preferred measure of inflation. “Core” PCE, which excludes the more volatile cost of food and energy, rose 1.5% year-over-year, right in line with expectations. Following the report, Michael Gapen at Barclays said, “Altogether, the report suggests a much softer start to consumption in Q3 and is a negative for our GDP tracking estimate as the level of real personal spending in July is below the Q2 average. After today’s report, we are now tracking 2.2% for Q3 real GDP, down five-tenths from 2.7% prior to the report.”

2. The University of Michigan’s final consumer confidence survey for August came in at 82.5, topping expectations for a reading of 80.0. This reading was also far better than the 79.2 preliminary reading from earlier this month. The current conditions index ticked up to 99.8 from a preliminary reading of 99.6, the highest reading since 2007.

3. The Institute for Supply Management-Chicago’s PMI for August  came in at 64.3, blowing away expectations for a 56.5 reading. This was also up signifcantly from July 52.6 reading, which was the lowest reading in a year. Following the report, Dean Maki at Barclays said, “The Chicago PMI had fallen sharply in July after strong readings in Q2 2014; the August rebound suggests that production in this region is on a solid track in Q3 2014 despite a soft July reading.”

4. Among the biggest stock gainers on Friday was Splunk, up nearly 20% after the software company on Thursday night reported revenue of $101.5 million, up 52% over the prior year. Splunk also raised its revenue outlook for the current fiscal year to $423-$428 million from a prior outlook of $402-$410 million. 

5. The Russian ruble fell further against the U.S. dollar, bringing its losses over the last two months to more than 8% as one U.S. dollar now buys nearly 37 rubles. The most recent slide in the value of the ruble comes after tensions between Russia and Ukraine flared on Thursday. Also on Friday, Oppenheimer Funds, the largest fund shareholder in Carlsberg — which is one of the foreign companies most highly exposed to the Russian economy — cut its stake in the brewer. Earlier this month, Carlsberg said sales volume in its Eastern Europe segment were down 20% in the second quarter. 

6. On Friday the U.K. government raised the current terror threat level to “severe,” indicating that an attack is “highly likely,” though the British government said no intelligence suggests an attack is imminent. British Home Secretary Theresa May said on Friday that, “The increase in the threat level is related to developments in Syria and Iraq where terrorist groups are planning attacks against the West. Some of these plots are likely to involve foreign fighters who have traveled there from the UK and Europe to take part in those conflicts.” This is the first time the threat level has been raised to “severe” since 2011.  In the U.S., the Obama administration said it had no plans to follow Britain’s lead. 

7. Markets are closed in the U.S. on Monday in observation of the Labor Day holiday. U.S. markets won’t be closed for a holiday until Thanksgiving, so enjoy the day off Monday and celebrate the unofficial end of summer.

購迪耐（DNEX)大批股權 世紀軟件（CENSOF)營收雙位數增長

世紀軟件（CENSOF,5195,主板科技組）買下前稱時光工程的迪耐（DNEX,4456,主板科技組）大批股權後，放眼在這項投資的貢獻之下，2015財政年營業額可取得雙位數成長。

世紀軟件董事經理阿米爾沙益邁丁在股東大會後向記者表示，該公司在去年9月份收購了迪耐45.03%的股權後，迪耐已經開始為公司貢獻約23%營業額，預計現財政年的營業額可達雙位數的成長。

迪耐主要業務是電子商務方案、網絡保安、綜合智能基建項目。

他補充，該公司目前90%的營業額來自政府，而私人界則是10%，有意提高私人界營業的比例。公司手上已經有來自私人業界的項目正在洽談，所有消息將會透過大馬交易所公佈。

阿米爾沙益邁丁說：“公司95%的營收額在大馬，其餘5%是來自海外的業務。海外業務分佈業務分佈印尼、澳洲及美國。我們依然會在不同國家尋找機會，目前公司涉足菲律賓、緬甸及中東地區，並在當地委任經銷商，以提高海外營收比例。”

他表示，世紀軟件及迪耐的兩家公司的市值合計約4億令吉左右，希望在新的項目開發之下，2016財政年公司市值可達10令吉。

首季盈转亏 艾利斯（IRIS)售蔚世泰公司（VERSATL)25%股权

艾利斯（IRIS，0010，创业板）2015財政年第一季（截至6月30日止）由盈转亏，从去年同期的767万令吉净利，转为255万令吉亏损。

营业额则为1亿2727万令吉，较去年同期的1亿3391万令吉，下滑4.96%。

此外，根据该公司文告指出，其独资子公司--艾利斯保健私人有限公司，与RICA控股（大马）私人有限公司达成股权买卖协议（SSA），以1521万令吉脱售在蔚世泰公司（VERSATL，4995，主板工业股）的25%股权。

该公司表示，在完成以上脱售活动后，蔚世泰公司將成为其子公司（脱售后，持有39.6%），並將持续利用蔚世泰公司在食品包装业务的专业。

幸馬泰資源（SUMATEC)下週二脫離PN17行列

近期股價大熱上漲的幸馬泰資源（SUMATEC，1201，主要板貿服）宣布，已完成財務重組，9月2日（下週二）起脫離PN 17行列。

　幸馬泰資源向馬證交所報備，已完成財務和營運重組，故不再抵觸PN 17行列，下週二開始生效。

　幸馬泰資源今日交投熾熱，早上以48仙開盤，先跌1仙，盤中下挫5仙或10%，休市暫掛45.5仙，跌幅為3.5仙；半日成交量已高達2億751萬4100股。

　閉市時，該股報46.5仙，下滑2.5仙；成交量3億1065萬7400股，成為熱門股榜之冠。

　幸馬泰資源在21日因股價波動大、成交量異常飆漲，遭馬證交所發出“異常交易活動”（UMA）后表示不知情。

　市場早前已傳言，該公司在連續2個季度獲利后，申請脫離PN 17行列。

STOCKS FALL: Here’s What You Need To Know

MYLES UDLAND

AUG. 29, 2014

REUTERS/Maks Levin

Ukrainian servicemen play basketball in a school building in the eastern Ukrainian town of Ilovaysk August 27, 2014.

Stocks fell as headlines out of Ukraine and Russia indicated that the situation in Eastern Ukraine escalated significantly, as Ukrainian President Petro Poroshenko said Russian troops have advanced across the border. The decline in stocks also marks the first time this week that the S&P 500 did not make an all-time high.

First, the scoreboard:

• Dow: 17,082.37, -39.6, (-0.2%)
• S&P 500: 1,996.41, -3.7, (-0.2%)
• Nasdaq: 4,557.35, -12.2, (-0.3%)

And now, the top stories on Thursday:

1. The second estimate for second quarter GDP showed the economy grew 4.2% in the quarter, up from the 4% first estimated by the BEA last month. This topped the 3.9% that was expected by economists. One of the most encouraging parts of the report was the 8.4% increase in nonresidential fixed investment, which is seen as a proxy for business spending. This increase suggests “that businesses began to put cash to work in Q2 as the US economy rebounded from the early-year growth stumble,” said TD Securities’ Gennadiy Goldberg. 

2. Weekly initial jobless claims came in at 298,000, topping the 300,000 that was expected by economists. Following the report, Ian Shepherdson at Pantheon Macro said, “In one line: Favorable claims trend signals strong payrolls.” Shepherdson said the report is consistent with his projection for nonfarm payrolls to jump 250,000 in August. That report is due out next Friday.

3. Pending home sales jumped 3.3% in July, rebounding after a 1.3% decline in June. This also topped the 0.5% increase expected by economists. “Interest rates are lower than they were a year ago, price growth continues to moderate and total housing inventory is at its highest level since August 2012,” said Lawrence Yun of the National Association of Realtors.

4. In an interview with Bloomberg’s Betty Liu, outgoing AIG CEO Bob Benmosche disclosed that he accelerated his retirement due to his deteriorating health. Benmosche told Liu that his cancer has worsened, and he has nine months to a year left to live. 

5. RadioShack shares surged on Thursday, bringing their weekly gains to more than 100% after a report by Bloomberg’s Jodi Xu and Lauren Coleman-Lochner said that hedge fund Standard General increased its stake in the troubled retailer and is in talks to raise cash to prevent bankruptcy. 

6. Abercrombie & Fitch shares fell more than 5% as sales continue to slow at the teen retailer, prompting the company to make a big change to its clothing lineup: no more logos. 

7. Morgan Stanley analyst Adam Jonas again published a note warning on the growing number of subprime auto loans. In his note on Thursday, Jonas published a conversation he had with an Ohio Chevy dealer, who said that the length of auto loans has increased to 72 months and noted that there has been a marked increase in subprime lease loans. This follows a June note from Jonas that warned on the same topic. 

Systech to strengthen foothold in US, China

CE Market-listed Systech Bhd, which aims to move to the Main Market of Bursa Malaysia in five years' time, plans to invest further to expand its business in China and the US, said its non-independent non-executive director Tan Hock Soon.

"In terms of expansion of markets, we're looking at China and the US. These are the two markets we intend to expand. We just started off there towards the end of last financial year and this year, hopefully, we'll push a little bit more," he told SunBiz after the company's AGM yesterday.

Hock Soon said at the moment, its business in the two markets are small and it is looking to establish stronger footholds on both countries.

"We are getting a foothold in China, in the direct-selling companies as well as the franchise business and from there hopefully we get more customers," he added.

Systech, via its core subsidiary Syscatech Sdn Bhd, provides software solutions. It is involved in the design, research and development, customization and implementation of web-based solutions for members centric industry such as the direct-selling industry, multi-level marketing and retail industry.

"In Southeast Asia we have a very big foothold. We are in Thailand, Singapore, Indonesia, the Philippines, Malaysia, Hong Kong and Korea. We're pretty strong in Southeast Asia and now we have China and the US," said Hock Soon.

Its CEO, Raymond Tan, said in China and the US, Systech works with partners that re-sell its products instead of going there directly.

"We already have partners there. The cost to enter these markets is nominal … so far, if we can do business in these two markets, it's big enough for us. We also don't want to divert too far, we still focus on what we are already doing," he said.

"We rely on consultants (overseas) but the bulk of the work is done in Malaysia. All our software is over the internet. So all the support work and others are done in Malaysia," said Hock Soon.

Systech was listed on the ACE Market on June 15, 2011. Its net profit grew from RM1.13 million in the financial year ended March 31, 2012 (FY12) to RM2.61 million in FY13.
In FY14, net profit fell to RM1.78 million mainly due to the rise in operating cost and higher income tax provision following the expiry of the pioneer status of Syscatech.

Its revenue grew from RM5.86 million in FY12 to RM6.85 million in FY13. In FY14, revenue fell to RM6.77 million.

The company declared 5% dividend for FY13. Yesterday, shareholders approved its second dividend payment via a single tier final dividend of 3% per share for FY14, to be paid on Sept 26.

According to Raymond, it currently does not have a dividend policy but hopes to have one in the future.

一次过项目拖累盈利 马太平洋（MPI)前景仍唱好

马太平洋（MPI，3867，主板科技股）次季盈利下滑，主要是受到一次性项目的影响，各大投行分析员仍一致看好该公司前景，虽然如此，公司股价此前已经大幅走高，因此，今日出现套利回吐。

马太平洋股价年初迄今已攀升8 6 %，这促使部份分析员下调该股的投资评级至「中和」或「守住」。该股今日重挫29仙或4.65%，全天跌破6令吉水平，最终收报5.95令吉，是全场第2大下跌股，成交量为62万股。

2因素拖累业绩

基于马太平洋次季结束冲压导线架（stamped leadframe）业务，並作出总值8 0 0万令吉的一次性拨备，加上支付Amkor公司一笔总值1280万令吉的专利诉讼赔偿，拖累该公司2014財政年末季净利（截至6月3 0日止）下跌19%，至873万令吉。

然而，排除上述款项后，该公司2014財政年末季核心净利为2150万令吉；而全年核心净利为6590万令吉，达到达证券和肯纳格研究分析员全年预期的103%。

此外，受到全球半导体销售逐渐甦醒的支撑，马太平洋2014財政年营业额按年成长5%，至12亿9180万令吉，主要是受到亚洲和美国销售扶持，分別按年成长15%和3%，这得以抵消欧洲销售疲软的影响，按年共下滑11%。

在过去一年，马太平洋净利取得5790万令吉，远高于去年的1090万令吉，其扣除利息、税项、折旧及摊销前盈利（EBITDA）赚幅也扩大4.1%，至22.1%；兴业投行分析员预计，由於產能使用率达到70%至75%带来的规模效益（高于2013財政年的65%至70%），公司的扣除利息和税项前盈利（EBIT）赚幅也从去年的2.2%，增至6.7%。

3大因素扶持

达证券和肯纳格研究分析员均认为，马太平洋获得较高的赚幅，主要是受到3大因素扶持，分別为：第一、关闭低效益的生產线和裁员，以减低生產成本；第二、专注于高赚幅领域，如高密度封装（high-density packaging）、微引线框架封装（micro lead frame packaging）和测试业务；第三、美元兑令吉走强5.4%，至3.25令吉。

肯纳格研究分析员认为，该公司短期前景將保持弹性。达证券也指出，6月份的全球半导体销售按年提升10.8%，主要是因为过去9个月的订单出货量均维持在1倍以上。因此，马太平洋未来几个季度相信將会从目前稳定的需求趋势中受惠。

达证券分析员稍微调整该股2015、2016和2017財政年净利预测，至7620万令吉、8920万令吉和9700万令吉；而兴业投行分析员也上调马太平洋2015和2016財政年，分別2.2%和3.3%，並將目標价从6.23令吉至6.40令吉。

部份分析员也下调该公司的投资评级，但並非因为末季净利欠佳，主要的原因是马太平洋过去2个月的股价已飆升25%，兴业投行分析员认为，该股上升空间有限，因此下调该股投资评级，从「买进」至「中和」。

肯纳格研究也指出，自从去年8月尾给予「跑贏大市」投资平级后，该股股价至今已暴涨约256%。

即便如此，马太平洋依然是分析员在半导体领域中的首选股。

肯纳格研究和达证券分析员表示，將会在该公司的分析员匯报会之后，再检討公司的投资评级；达证券暂时维持该股「买进」投资评级和7.10令吉。

次季净利微升 睦兴旺工程（MUHIBAH)股价走高

睦兴旺工程（MUHIBAH，5703，主板建筑股）2014財政年次季（截至6月30日止）净利为2093万令吉，相比去年同期2073万令吉，按年微升0.9%；而营业额为4亿6614万令吉，按年上扬15%，去年同期为4亿零660万令吉。

睦兴旺工程2014財政年首6个月净利为4109万令吉，按年微增1.4%，去年同期为4053万令吉；累积营业额达8亿6009万令吉，按年成长8.5%，去年同期为7亿9281万令吉。

该股今日全天上升15仙或4.97%，掛3.17令吉，共有899万6100股成交量，是全场第9大上升股。

受惠消費稅．中國業務強 競優國際（IFCAMSC)際續交投熾熱

作為國內房產業主要消費稅軟件供應商，競優國際（IFCAMSC，0023，創業板科技）及憑單繼日前大熱遭馬證交所質詢后，今日再度大熱上揚，聯昌證券研究分析師指中國萬達集團為首的中國業務是強勁推動力，未給予評級但相信股項估值達53仙。

　競優國際今早甫開市，即以熱烈交投躍居十大熱門股榜，股價揚3仙至42仙，隨后穩步上揚，休市時起5.5仙，掛44.5仙，半日成交量高達4978萬5900股。

　該股旗下憑單競優國際-WA（IFCAMSC-WA，0023WA，創業板科技）亦交投熾熱，與母股同列早盤最熱門股項之列，在開市后5分鐘內就衝破千萬股交易，休市時報35仙，揚5.5仙，半日交易5238萬5200股。

中國市場大

　閉市時，競優國際揚5.5仙報44.5仙，成交量6604萬8100股；競優國際-WA漲6仙收在35.5仙，全日交易6466萬7100股。

　聯昌證券研究指出，國內企業將在未來2年陸續安裝和提升消費稅系統，截至6月底，競優國際已取得高達4210萬令吉銷量合約，比去年同期的3890萬令吉多出8%。

　值得一提的是，在我國擁有超過1000個客戶的競優國際，當中只有10%客戶已提升系統，意味著在未來幾個季度，陸續都有機會服務客戶。

　該行指出，競優國際也是中國市場主要業者，上半年銷量和營業額不斷走高，相信在2至3年內，中國銷量能超越我國；因中國有超過4萬家房產業者，比較大馬約1000家。

　“我們相信競優國際能在今年取得介于800萬至900萬令吉淨利，料在2015年取得1500萬令吉淨利。如果能達標，就有機會在2016年轉到馬股主要板交易。”

附加股料下週交易Sanichi科技（SANICHI)母子交投熾熱

市場預期Sanichi科技（SANICHI，0133，創業板工業）附加股將在下週二（2日）上市交易，推高股價走勢，該股與憑單交投熱烈，為早盤最熱門2大股項。

　今早開市時，Sanichi科技僅揚1仙，股價企于11.5仙水平，受消息推動，投資者進場追捧推高股價，該股休市時成交量高達1億1185萬7700股，股價亦揚3仙至13.5仙水平，為今早最熱門股。

　憑單Sanichi科技-WB（SANICHI-WB，0133WB，創業板工業）亦不遑多讓，除了早盤成交量達6925萬股，股價亦從開市微揚0.5仙至7仙，擴大至起5仙，掛11.5仙水平。

　午盤時，Sanichi科技母子仍交投熾熱，母股閉市起3.5仙，報14仙，成交量2億3924萬4300股；Sanichi科技-WB則起6仙，報12.5仙，成交量1億820萬2300股。

　首邦股票行資深股票經紀吳繼宗回應《The Edge財經日報》詢問時指出，市場預測該公司發行的附加股將在下週二上市，投資者買進推高走勢，或是股項價量齊揚原因。

　Sanichi科技在附加股計劃下將發行6億4489萬股新股及4億2993萬隻免費憑單，每持2股現有股可認購3股附加股並附送2隻憑單。

　此外，該公司日前宣布上財年業績亦表現標青，全年轉虧為盈，並且獲瑪拉投資有限公司（Pelaburan Mara Bhd）入股5.17%，成為公司大股東。

DRB-Hicom posts hefty earnings, boost from auto

 DRB-Hicom Bhd’s first quarter ended June 30, 2014 net profit surged to RM107.83mil from RM10.25mil a year ago.

In a statement to Bursa Malaysia on Thursday, the automotive company’s revenue for the period rose 21.9% to RM3.724bil from RM3.054bil a year ago.

Earnings per share for the period stood at 5.58 sen against 0.53 sen a year earlier.

The national car producer said its improved performance was largely attributed to stronger performance in the automotive and defence, and services sectors, as well as continued improvements in operating efficiencies and cost containment.

Group managing director Tan Sri Mohd Khamil Jamil said that higher recognition of revenue from the defence projects as well as the inclusion of new revenue streams from Composites Technology Research Malaysia Sdn Bhd and Konsortium Logistik Bhd have contributed to the increase in revenue for the quarter.

Moving forward, he said the group is optimistic that it would be able to achieve satisfactory performance for the financial year ending March 31, 2015

Sumatec may not meet FY14 earnings forecast of RM69m

Oil and gas services related Sumatec Resources Bhd posted a strong set of earnings for the first half ended June 30, 2014 but cautioned it might not achieve its net profit of RM69mil.

Sumatec said on Thursday due to the technical requirements to install artificial lift pumps on a number of wells, there has been a delay in bringing some of the wells on to production.

"Barring unforeseen circumstances, the board anticipates that the net profit of the group for the financial year ending Dec 31, 2014 may fall short of the forecasted net profit of RM69mil," it said.

Sumatec said to address the situation, the management would deploy all available resources to complete the remaining works under the workover programme, install artificial pumps and conduct production enhancement on each well, and adding more wells into the workover programme.

It posted net profit of RM6.70mil in the second quarter ended June 30, 2014 compared with net loss of RM3.94mil a year ago boosted by the upstream oil and gas (O&G) activities.

It said on Thursday its revenue was RM13.75mil compared with nil a year ago. Profit before tax was RM11.25mil compared with a loss of RM4.01mil.

"The increase in revenue and profit before tax in this quarter was attributed to the income from the upstream O&G activities," it said.

Sumatec said for the first half, it reported earnings of RM11.17mil compared with net loss of R9.16mil in the previous corresponding period. It recorded revenue of RM27.49mil versus nil a year ago.

It said when compared to the first quarter ended March 31, 2014, the group's turnover in Q2 comprising of revenue from the upstream O&G activities showed a marginal increase.

"Profit before taxation however increased by RM2.39mil in line with lower overheads and direct operating costs," it said.

Bumi Armada sees 202.25m shares traded off-market

Bumi Armada Bhd saw a block of 202.25 million shares traded off-market on Thursday at RM2.96 each.

Stock market data showed the shares accounted for a 6.89% stake based on its paid-up of 2.933 billion shares.

At RM2.96 each, this was five sen below the current market price of RM3.01 at 3.57pm. 

Based on Bloomberg data, Objektif Bersatu Sdn Bhd is the largest shareholder with 1.239 billion shares or 42.24%, followed by the Employees Provident Fund at 248.98 million shares and Ombak Damai Sdn Bhd at 225.277 million shares.

The company is undertaking a corporate exercise involving a rights issue which could see it raising RM1.99bil.

On Wednesday, Bumi Armada fixed the issue price of its rights shares at RM1.35 per share, a 32% discount to the theoretical ex-all price of RM1.98 per share (based on five-day VWAMP of RM3.29).

The corporate exercise involves a one for two bonus issue and a renounceable rights issue of up to 1.479 billion shares on a one rights share for every two shares held (excluding the bonus shares).

At RM1.35 per right share, Bumi Armada may raise up to RM1.99bil to fund its aggressive expansion plan assuming all the rights were subscribed.

10 Things You Need To Know Before The Opening Bell

SAM RO

AUG. 28, 2014

REUTERS/Bjorn Lindgren

Malmo supporters hold flares as they celebrate after winning their Champions League playoff second leg soccer match against Salzburg in Malmo August 27, 2014.

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

Russia Is Advancing On Ukraine, Says Ukraine. “I have made a decision to cancel my working visit to the Republic of Turkey due to sharp aggravation of the situation in Donetsk region, particularly in Amvrosiivka and Starobeshevo, as Russian troops were brought into Ukraine,” Ukraine President Petro Poroshenko said. “Current servicemen are also fighting in our ranks, as they came to us to struggle for our freedom instead of their vacation.”

Russia Is Advancing On U.S. Banks? “Russian hackers attacked JPMorgan Chase & Co. and at least four other banks this month in a coordinated assault that resulted in the loss of gigabytes of customer data, according to two people familiar with the investigation,” Bloomberg’s Michael Riley and Jordan Robertson report. “At least one of the banks has linked the breach to Russian state-sponsored hackers, said one of the people. The FBI is investigating whether the attack could have been in retaliation for U.S.-imposed sanctions on Russia, said the second person, who also asked not to be identified, citing the continuing investigation.”

Sentiment In Europe Is Getting Worse. The bad economic news out of Europe has yet to end. The eurozone’s consumer confidence index fell to 100.6 in August from 102.2 in July. This was worse than the 101.5 expected by economists. “Based on sentiment surveys, the eurozone is off to a poor start in Q3, and while we are yet to see any decisive hard data, it does not leave much optimism for a strong rebound in GDP growth,” said Pantheon Macroeconomics’ Claus Vistesen. “Flagging business confidence makes sense given tensions in Ukraine, poor economic data and weakness in equity prices.”

Germany’s Still Struggling. The number people unemployed in Germany unexpectedly climbed by 2,000 in August. Economists were expecting this number to decline by 5,000. The unemployment rate in Europe’s largest economy held at 6.7%.

Markets Are Down Everywhere. In Europe, Britain’s FTSE 100 is down 0.4%, France’s CAC 40 is down 0.8%, and Germany’s DAX is down 1.4%. Asia closed lower with Japan’s Nikkei down 0.4% and Hong Kong’s Hang Seng down 0.7%. Dow futures are down 65 points and S&P 500 futures are down 7.9 points.

The State Of The U.S. Economy. There’s lot of economic data coming out of the U.S. today, starting with an updated estimated of Q2 GDP. Economists estimate GDP growth will be revised down to 3.9% from 4.0% a month ago. Personal consumption is estimated to have slipped to 2.4% from 2.5%. Here’s Morgan Stanley’s Ted Wieseman: “Lower inventories partly offset by higher net exports should result in a downward revision to the 4.0% advance GDP estimate but with a better demand/inventories mix, a positive for the Q3 outlook. June results for nondurable manufacturing, wholesale, and retail ex auto inventories all came in well below elevated BEA assumptions, pointing to the +1.7pp contribution to Q2 growth from inventories being revised down to +1.1pp. The surprising $3 billion narrowing in the June trade deficit to a five-month low, however, points to the net exports contribution being revised up to -0.4pp from -0.6pp.”

The State Of U.S. Jobs. At 8:30 a.m. ET, we’ll get the latest weekly tally of initial jobless claims. Economists estimate weekly initial claims ticked up to 300,000 from 298,000 a week ago. “Initial claims have hovered around 300k for the past few weeks and should continue to do so as labor markets tighten,” said Nomura economists.

The State Of U.S. Housing. At 10:00 a.m. ET, we’ll get the July pending home sales report. Economists estimate the pace of pending sales climbed 0.5%. “Since pending home sales track signed contracts, this suggests continued improvement in existing home sales,” said Bank of Ameria Merrill Lynch economists.

Nonbank Mortgage Lenders Are On The Rise. “In the first half of the year, lenders that aren’t banks made almost a quarter of all mortgage loans, the highest level since at least the financial crisis, according to data on the top-30 mortgage originators from industry newsletter Inside Mortgage Finance,” the WSJ’s Joe Light reports. “Mortgage lending at big banks such as Wells Fargo & Co. and J.P. Morgan Chase has dropped more quickly than the rest of the industry in the wake of large mortgage-related legal settlements, new banking standards that require lenders to carry more capital, and increased scrutiny from regulators.”

Goldman Moves Out Of The NYSE, Robots Move In. “When Scott Knudsen rang the opening bell at the New York Stock Exchange this week, he signaled the ceremonial start of the day’s session and the conquest of the NYSE floor by high-frequency trading firms,” Bloomberg’s Sam Mamudi and John Detrixhe write. “His firm, IMC Chicago LLC, just finished its takeover of Goldman Sachs Group Inc.’s NYSE unit, giving it rights to manage buying and selling of dozens of stocks including prominent ones like International Business Machines Corp., Verizon Communications Inc. and Visa Inc. IMC joins rival automated trading firms Virtu Financial Inc. and KCG Holdings Inc. facilitating transactions at the NYSE in lower Manhattan, a role once filled solely by humans.”

The 10 Most Important Things In The World Right Now

DINA SPECTOR

 AUG. 28, 2014

NOAA

Good morning! Here’s what people will be talking about Thursday:

1. The conflict in eastern Ukraine is heating up with new reports that pro-Russian rebels are moving into the southeastern Ukrainian town of Novoazovsk. Two seperate militia members told Reuters that military equipment is also being sent across the border. 

2. Australian officials may have a fresh break in the search for the missing Malaysia Airlines jet. A failed satellite phone call made by the airline ground staff to the Flight 370 after it disappeared may show that the plane “turned south earlier than previously thought,” the Wall Street Journal reports. 

3. Hurricane Cristobal has been blamed for at least seven deaths, including a New Jersey teenager who got stuck in a rip current generated by the storm, The Weather Channel reports.The hurricane moved over Bermuda on Wednesday, but is not expected to strike the U.S.

4. Time Warner Cable said a massive outage to internet service in the U.S. on Wednesday was caused by an “erroneous configuration” during “overnight network maintenance activity in which we were managing IP addresses.”

5. Samsung has released the first smartwatch, called the Gear S, that can make calls without a cell phone nearby. The announcement comes right after LG unveiled its new G Watch R smartwatch. 

6. There’s a fierce bidding war between Telefonica and Telecom Italia over Brazilian internet provider GVT. Spain’s Telefonica increased its early August bid for GVT to $9.83 billion within in minutes of Telecom Italia’s $9.25 billion offer. 

7. A crew member for the popular T.V. show “Cops” was shot and killed while filming an armed robbery in Omaha. “We are deeply saddened and shocked by this tragedy and our main concern is helping his family in any way we can,” the show’s production company said in a statement. 

8. JPMorgan and at least four other U.S. banks were victims of cyberattaks this month, four people familiar with an ongoing investigation told The New York Times. “The hackers infiltrated the networks of the banks, siphoning off gigabytes of data, including checking and savings account information, in what security experts described as a sophisticated cyberattack,” The Times said. 

 9. Emmanuel Macron has officially been named France’s new economy minister, taking over for Arnuard Montebourg who was forced out after making critical remarks about the country’s economic policies. 

10. British PM David Cameron is expected to make another attempt to convince voters in the Scottish independence referendum that separating from the UK will be bad for Scotland’s economy. Speaking from Glasgow, Cameron will make the argument that “Scotland’s financial services could lose 90% of their business if voters endorsed independence,” The Guardian said. 

And finally…

California scientists say they have seen “sailing stones” in action for the first time solving the mystery of how these heavy rocks move across a dry lake in Death Valley without human or animal intervention. 

STOCKS GO NOWHERE AND GLOBAL YIELDS TUMBLE: Here’s What You Need To Know

SAM RO

 MARKETS  

AUG. 28, 2014

REUTERS/Kim Kyung-Hoon

Zhang Guanhui, impersonating Michael Jackson, dances in front of his house located in a village for migrant workers during an interview with Reuters in Beijing.

Stocks didn’t do much, but they remain near all-time highs. The bond markets, however, made some notable moves.

First, the scoreboard:

• Dow: 17,114.3, +7.6, (+0.0%)
• S&P 500: 1,998.9, -1.1, (-0.0%)
• Nasdaq: 4,566.4, -4.2, (-0.0%)

And now, the top stories on Monday:

1. Today was one of those not-so-exciting days. There wasn’t much volatility, and there were no major economic reports released to move markets in a major way.

2. Interest rates around the world continued to make their way lower. According to Bloomberg, the yield on the German 10-year bond fell to a record low of 0.909%. Spain’s 10-year yield fell to 2.083%.  “Rates on similar-maturity Austrian, Belgian, Dutch, Finnish, Irish and Italian debt also fell to all-time lows,” reported Bloomberg’s David Goodman and Lukanyo Mnyanda.

3. Earlier Wednesday, we learned that Germany’s Gfk consumer confidence index fell to 8.6 from 8.9 a month ago, and France’s INSEE business confidence index fell to 91 from 93. Both were worse than economists’ already pessimistic expectations. All of this follows a series of disappointing economic reports from the region, which have economists and bond traders increasingly convinced that the European Central Bank will make moves to ease monetary policy further.

4. The yield on the 30-year Treasury bond fell to as low as 3.11%, the lowest level since May 2013.

Latest
U.S. stocks ended little moved on Wednesday as Wall Street caught its breath, with the S&P 500 closing at a record just above 2,000 for a second consecutive session.

"We had a big move yesterday; these big, round numbers have a psychological impact on investors, who are taking a pause as opposed to going significantly one way or the other," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

"We're flirting with the milestone 2,000 on the S&P 500, and there is a lack of any catalyst to jar prices above that level," Luschini added.

Symbol	Name	Price		Change	%Change
DJIA	Dow Jones Industrial Average	17122.01		15.31	0.09%
S&P 500	S&P 500 Index	2000.12		0.10	0%
NASDAQ	Nasdaq Composite Index	4569.62		-1.02	-0.02%

After a session of fluctuating between modest gains and declines, the Dow Jones Industrial Average rose 15.31 points, or less than 0.1 percent, at 17,122.01.

Finishing at a record just above the 2,000 milestone for a second day, the S&P 500 added a fraction to 2,000.12, with utilities the best performing of its 10 major sectors.

Getty Images

A trader works on the floor of the New York Stock Exchange in New York.

On Tuesday, stocks gained, lifting the Dow to an all-time high and the S&P 500 to its first finish above 2,000, after better-than-expected reports -- including a jump in orders for durable goods -- cast favorable light on the U.S. economy.