|
The following is a summary of the major events that took place during the overnight session:
- On Monday, U.S. Treasury Secretary Henry Paulson said he prefers to leave the remaining $410 billion from the $700 billion TARP program to his successor. - WSJ: On Monday, Yahoo CEO and co-founder Jerry Yang said he would step down, but will remain a senior executive and board member. - Global stocks are down across the board with Nikkei closing down 2.28% and the Hang Seng index closing down 4.54%. The Eurostoxx is down 1.33% and the FTSE 100 is down 1.58% while S&P 500 futures are down 1.47%. - UK CPI fell 0.2% m/m in October versus expectations of 0.1% gain and 0.5% increase in September, bringing the annual inflation rate to 4.5% versus expectations for a 4.8% level and August's 5.2% level. - WSJ: U.S. life insurance firms are looking for a piece of the TARP program by purchasing small banks. - FT: Ford is selling most of its stake in Mazda for $540 million. - FT: Bank of America plans to sell some of its 19.13% stake in China Construction Bank after exercising a call option just days ago. Guardian: Hillary Clinton plans to accept job as U.S. Secretary of State. - BOJ's Nakagawa said the USD should remain dominate currency, and that a collapse of General Motors would have huge global repercussions. Japan could consider further steps for economy. - On Monday, Kansas City Fed President Thomas Hoenig (voter) told PBS that the Fed has done as much as it can to help economy. - ECB's Noyer said market tension continue to make the search of fund difficult for firms. - ECB's Tumpel-Gugerell said it is important for the ECB to be counted upon to deliver inflation mandate. - Germany's top economic adviser Ruerup said country should consider more stimulus. - RBA minutes suggest the Board opted for 75bp cut over a 50bp reduction to 5.25% due to additional downside risks to growth. - Japanese nationwide department store sales fell 6.8% to Ą584.6 billion in the 12 months to October, down 2.1% from September's yearly decline. Tokyo department store sales fell 8.4% following a 4.6% decline. - Overnight U.S. dollar Libor was unchanged at 0.40% while three-month labor fell 2 bps to 2.22%. Ted spread narrowed 5 bps to 210 bps and Libor/OIS spread contracted 3 bps to 173 bps. - Home Depot posted earnings per share of $0.45 versus expectations of $0.38 on the street. The firm also affirmed its guidance for 2008 although said that sales could be down as much as 8% from the financial turmoil. - Pepsi Bottling plans to cut 3,150 jobs in restructuring plan. Tuesday's Outlook: - After U.S. Treasury Secretary Henry Paulson announced his intention to leave the remaining $410 billion from the $700 billion TARP program to his successor on Monday evening, focus on Tuesday will be on Paulson, Fed Chairman Ben Bernanke and FDIC Chair Sheila Bair testifying before the House Financial Services Committee's hearing on the TARP program at 8:30 a.m. EST. - U.S. producer prices are also in focus on Tuesday at 8:30 a.m. EST, with economists expecting headline manufacturing inflation to contract 1.8% month-over-month in October following a 0.4% decline in September. Annual PPI is expected to rise 6.2%, down from the previous month's 8.7% increase. Core producer prices are expected to rise 0.1% month-over-month following a 0.4% rise in September. Annual core PPI is expected to rise 4.0%, matching the previous month's gain. - At 1 p.m. EST, the U.S. National Association of Home Builders will release its housing market index for November, which economists expect to remain unchanged at 14.0. - Central bank speakers will be heard throughout the day with comments from the BOE's Tim Besley, ECB's Erkki Liikanen, Jurgen Stark, and President Jean-Claude Trichet. Market Snapshot: At 7:10 a.m. EST: Euro/USD down 0.14 cents to 1.2636. USD/CAD up 0.47 cents to 1.2306. USD/Yen down 0.30 points to 96.16. GBP/USD up 0.43 cents to 1.5032. Aussie/USD down 0.24 cents to 0.6466. US ten-year Note futures up 12.0 ticks to 116.95. German 10-year Bund futures up 13.0 ticks to 118.87. UK ten-year Gilt futures up 56.0 ticks to 115.28. Eurostoxx down 30.93 points to 2065.74. UK FTSE 100 down 70.40 points to 4061.76. German Dax down 83.77 points to 4473.50. Japanese Nikkei down 194.17 points to 8328.41. Hong Kong Hang Seng down 613.64 points to 12915.89. Shanghai Composite down 128.06 points to 1902.43. Dow Futures down 120.00 points to 8139.00. S&P 500 Futures down 16.25 points to 834.75. WTI Crude down $ 0.17 to $ 54.78 per barrel. Economic Data Snapshot: JP Housing Loans (Y/Y) Q3 +4.2% vs. Prior: +3.9% AU Preliminary BoP Imports (M/M) (SA) October +1.0% vs. Revised: Prior: +8.0% JP Leading Index CI September Final +89.4 vs. Exp: +89.4 Prior: +89.2 JP Coincident Index CI September Final +100.9 vs. Exp: +100.9 Prior: +100.8 JP Tokyo Department Store Sales (Y/Y) October -8.4% vs. Prior: -4.6% JP Nationwide Department Store Sales (Y/Y) October -6.8% vs. Prior: -4.7% IT Trade Balance September (Total) -€2586.0M vs. Exp: -€2500M Revised: -€2151.0M Prior: -€2116M IT Trade Balance September EU +690.0M vs. Exp: +€250.0M Revised: -€60.0M Prior: -€25.0M GB CPI (M/M) October -0.2% vs. Exp: +0.1% Prior: +0.5% GB CPI (Y/Y) October +4.5% vs. Exp: +4.8% Prior: +5.2% GB Core CPI (Y/Y) October +1.9% vs. Exp: +2.2% Prior: +2.2% GB Retail Price Index October +217.7 vs. Exp: +218.6 Prior: +218.4 GB RPI (M/M) October -0.3% vs. Exp: 0.0% Prior: +0.6% GB RPI (Y/Y) October +4.2% vs. Exp: +4.5% Prior: +5.0% GB RPI Ex Mortgage Interest Payments (Y/Y) October +4.7% vs. Exp: +5.2% Prior: +5.5% IT Current Account September -€4889.0M vs. Exp: -€3500M Prior: -€2886M Tuesday's Events: 7:45 US ICSC Chain Store Sales (Y/Y) W/E Nov. 15 Prior: +0.4% 8:30 US Producer Price Index (M/M) October Exp: -1.9% Prior: -0.4% 8:30 US PPI Ex Food & Energy (M/M) October Exp: +0.1% Prior: +0.4% 8:30 US Producer Price Index (Y/Y) October Exp: +6.2% Prior: 8.7% 8:30 US PPI Ex Food & Energy (Y/Y) October Exp: +4.0% Prior: +4.0% 8:55 US Redbook Retail Sales (Y/Y) W/E Nov. 15 Prior: -1.0% 9:00 US Net Long-Term TIC Flows September Exp: $27.2B Prior: $14.0B 9:00 US Total Net TIC Flows September Prior: -$0.4B 9:30 US Fed Chairman Bernanke, Tsy's Paulson, FDIC's Bair will testify at U.S. House Financial Services Committee on TARP program 10:00 DE ECB Executive member Jurgen Stark speaks at an event in Frankfurt 10:00 US NAR Metro Home Prices/State Resales Q3 10:30 EU Finland Central Bank Governor Erkki Liikanen speaks at an event in Helsinki 10:45 GB BOE committee member Tim Besley to deliver speech 13:00 US NAHB Housing Market Index November Exp: 14 Prior: 14 13:00 US Treasury to Sell $22B 52-Week Bills 13:00 US Treasury to Sell $32B 4-Week Bills 13:30 EU ECB President Jean-Claude Trichet speaks at an event in London 17:00 US ABC Consumer Confidence W/E November 16 Exp: -49 Prior: -50 By Erik Kevin Franco,
This email address is being protected from spam bots, you need Javascript enabled to view it
, edited by Nancy Girgis,
This email address is being protected from spam bots, you need Javascript enabled to view it
CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer. |
