European Market Update: BHP confirms it goes hostile for Potash; BOE minutes did NOT show a three-way split as initially feared (Trade the News)
Wednesday, August 18, 2010
European Market Update: BHP confirms it goes hostile for Potash; BOE minutes did NOT show a three-way split as initially feared
***Economic Data*** - (GE) Germany Jun Retail sales Y/Y revised higher to +4.7% from +3.1% reported - Stats Office - (GR) Greece Jun Current Account:-â‚¬1.9B v +â‚¬250M prior - (SW) Sweden Q2 Industry Capacity: 84.2% v 84.9% - (UK) Bank of England Minutes: Voted 8 to 1 to maintain interest rates at 0.50% and 9 to 0 (unanimous) to maintain Asset Purchase Target (APT) at Â£200B - (MA) Malaysia Q2 GDP Y/Y: 8.9% v 8.4%e - (MA) Malaysia July CPI Y/Y: 1.9% v 2.0%e - (EU) Euro Zone Jun Construction Output M/M: 2.7% v -0.7% prior; Y/Y: 3.1% v -6.2% prior - (IC) Iceland Central bank (Sedlabanki) cut Interest Rate by 100bps to 7.00%; More than the 50bps expected - (SA) South Africa Jun Retail Sales M/M: 1.8% v 2.0%e; Y/Y: 7.4% v 7.2%e
Fixed Income - (EU) ECB allots $35M in 7-day USD liquidity operation at fixed 1.19% - (GE) Germany sells â‚¬5.01B in new 2.25% 2020 Bunds; avg yoeld 2.37% v 2.56% prior; Bid-to-cover: 1.6x v 1.4x prior - (SW) Sweden sold SEK2.5B in 5% 2020 bonds; avg yield 2.392%; Bid-to-cover: - (PO) Portugal Debt Agency (IGCP) sells total â‚¬1.525B in 3-month and 12-month Bills versus â‚¬1.5B indicated - Sold â‚¬775B in 3-month Bills; Avg yield 0.994% v 1.861% prior; Bid-to-cover: 2.5x v 3.5x prior - Sold â‚¬750B in 12-month Bills; Avg yield 2.727% v 2.394% prior; Bid-to-cover:1.8x v 2.2x prior
*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ** ***Notes/Observations*** - BHP confirms it goes hostile for acquisition of Potash [POT] with $130/shr cash offer in $40B deal - BOE minutes contain no surprises - Decent German auction results and upward revision to its Jun retail sales data - Continued chatter that China was selling USD and purchasing emerging markets currencies
- Equities: - As of 5:35am ET Euro Stoxx 50 Index -0.3% at 2,728; DAX Index -0.1% at 6,200; CAC-40 Index -0.3% at 3,652 and FTSE 100 Index -0.5% at 5,321
-European stocks were poised to register their first decline in five sessions but were off their lows as the NY morning approached
- Vestas [VWS.DE] reported a wider than expected loss which was also disappointing compared to last year profit. Revenues, too, fell short of estimates and dropped 17% on a yearly basis. Company cut its guidance for revenue and profitability for the remainder of the year. This was due to a delay in order delivery in US, Spain and Germany which could not be booked as revenues this fiscal year. Telekom Austria [TKA.AS] disappointed in net and revenues came in barely higher than expectations. But company raised its guidance for EBITDA and confirmed outlook for revenues. - A P Moller-Maersk [MAERSKB.DE] reported an increase in its earnings which also surpassed significantly the consensus. Furthermore the company raised its operating profit to exceed $4B which is higher than the previous view of reported an increase in its earnings which also surpassed significantly the consensus. Furthermore the company raised its operating profit to exceed $4B which is higher than the previous view of $3.5B. Group was uncertain for the economic environment in the shipping and related activities, this uncertainty being skewed heavily into the fourth quarter. But overall the second half results were expected to be positive. Shares traded up by 16.1% at the open. Switzerland's biggest insurer, Swiss Life [SLHN.SZ]surprised on the positive side, with gross written premiums and net increasing on a yearly basis and beating estimates. Solvency ratio had also improved and the company confirmed 2012 targets. Shares opened higher by 5.9% - Billiton [BHP.AU] confirmed it was taking the Potash [POT] deal directly to the shareholders and proceeding with a hostile takeover after the board rejected the $39B offer considering it not high enough. The market did not receive the news very well, especially when some analysts were advising against a friendly takeover deeming the cost to be too high. Company traded down while Potash was slightly up at the open.
- Speakers: - Germany reportedly to postpone decision on tax on nuclear power station operators until end of September - Czech Central Bank Gov Singer: Outlook for beginning policy tightening seems to be delayed - Poland PM spokesperson commented that the Q2 GDP to be at or above 3% y/y (GDP data scheduled for official release on Aug 30th with current analyst estimates is for 3.2% growth versus 3.0% seen in Q1.) - Japanese DPJ law makers states that Japan PM Kan was willing to adopt news measures against the yen currency
- Currencies/Fixed Income: - The USD was weaker against the major pairs with continued chatter circulating that China was selling USD and purchasing emerging markets currencies despite assurances that the greenback would remain the core of China's investment strategy. - The GBP began the session on soft footing with its weakness attributed to a potential 3-way split in BOE minutes on interest rate vote. Dealers also cited chatter that the Canadian Potash M&A deal would be finance in USD with the BHP UK entity financing the deal. The GBP/USD pair tested 1.5500 ahead of the European morning, which corresponded with its 200-day mvg avg seen at 1.5491. The BOE voted 8-1 to leaves rates unchanged and this helped the GBP/USD recover to approach the 1.5650 area. The EUR/USD retested the 1.29 mid-morning as it was aided by upward revision in its June retail sales data and a decent Bund auction. - The JPY continues to hover inside the 85 neighborhood and little changed during the session. - CAD continued to maintain a firm tone aided by talk of China reserve diversification and M&A flows after BHP confirmed a hostile bid for Potash.
- In the Papers-Geopolitical: - In the German press, Co-operative Bank associate Hofmann stated that German cooperative banks are well placed to finance an upswing. He observed that the first half was in positive territory and expects the second half to remain positive. - The Financial Times reported that call center workers in the US are becoming almost the same price as India call center workers. The high unemployment levels have driven down wages in the US, especially in the Hispanic population. India's outsourcing sector have risen by 10% this year and senior managers command salaries above global averages.
***Looking Ahead *** - 6:00 (CZ) Czech Republic to sell CZK8B in 5.7% May 2024 Bonds - 6:00 (RU) Russia to sell up to RUB20B in OFZ bonds - (BR) Brazil Jul CAGED Formal Job Creation: No est v 213.0K prior - (PH) Philippines July Budget (PHP): No est v -34.6B -prior - (PO) Portugal July Producer Prices M/M: % v 0.0% prior; Y/Y: % v 3.7% prior - (IS) Israeli July Leading Indicator M/M: % v 0.1% prior - 7:00 (US) MBA Mortgage Applications w/e Aug 13th: No est v 0.6% prior - 8:00 (PD) Poland July Producer Prices M/M: -0.3%e v 0.8% prior; Y/Y: 3.2%e v 1.9% prior - 8:00 (PD) Poland July Sold Industrial Output M/M: -3.8%e v 7.0% prior; Y/Y: 12.9%e v 14.5% prior - 8:00 (RU) Russia to sell up to RUB20B in OFZ bonds - 8:30 (CL) Chile Q2 Current Account: $75ME v $1.5b prior; GDP Y/Y: 6.2%e v 1.0% prior - 10:30 (US) Weekly DOE energy inventories: Crude: -1.0Me; Gasoline: -375Ke; Distillate: +1.4Me; Utilization: 87.2%e - 12:30 (CA) Bank of Canada report on impact of banking standards - 17:00 (CO) Colombia Jun Industrial Production Y/Y: 8.9%e v 7.5% prior; Retail Sales Y/Y: 12.5%e v 13.1% prior
Legal disclaimer and risk disclosure
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 26 Feb 2018 A 15:00 US- New Homes Sales Tue 27 Feb 2018 A 08:55 DE- Jobless B 13:30 US- Durable Goods A 15:00 US- CB Consumer Confidence A 15:00 US- Pending Homes Sales AA 15:00 US- Powell House Testimony Wed 28 Feb 2018 A 10:00 EZ- flash HICP AA 13:30 US- GDP A 15:30 US- EIA Crude Thu 1 Mar 2018 A All Day final Mfg PMIs A 13:30 US- Weekly Jobless AA 13:30 US- Core PCE Deflator AA 15:00 US- Powell Senate Testimony A 15:30 US- EIA Crude Fri 2 Mar 2018 AA 15:00 US- final Univ of Mich
John M. Bland, MBA co-founding Partner, Global-View.com
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.