Reporting news-flow today includes UK CPI, USD ADP Employment Change, BoC Rate Decision, DOE US Crude Oil Inventories, US Fed Beige Book and comments from Fed’s Lockhart, Yellen Tarullo and Williams.
Asian equity trading was mainly mixed ahead of upcoming risk events. The Shanghai Composite fluctuated between gains and losses led by financials after insurers outperformed following the NDRC easing requirements for corporate bond issuance and encouraged insurers to develop bond default insurance and swaps.
BoJ’s Iwata says the central bank will ease if Japanese price trend comes under threat by the slowdown in emerging markets. (Reuters)
FTSE 100 Equity News:
Pearson (L:PSON) – the UK CMA are looking into opening a Phase 2 investigation over the purchase of Learndirect. (Sky)
DAX Equity News:
Volkswagen (DE:VOWG_p) – brand sales in US fell 25% in November, whilst it is reported to reduce 300 temp. jobs as its commercial vehicle plant in Hannover. (Bloomberg)
Siemens – Marubeni Corp announced inclusion in consortium to develop and run power plants in Botswana which is estimated to cost $800mn and with Siemens as the main power generation equipment supplier. (Nikkei)
BMW – US November sales rose by 3.2% (Bloomberg).
CAC Equity News:
Renault (PA:RENA) – Nissan have warned the French govt. over its stance surrounding Renault and said they may scrap the terms of its cross shareholding agreement. (Bloomberg)
US Stocks
Over in the US, equities traded in a positive manor following European trading session, most noticeably was Financials after BoE bank stress tests. However, US ISM mfg. figure had the lowest reading since October 2013, showing that every part of it except employment was in contraction – but still remained that the general economy was growing. This hinted that it could lead to a slower path of rate increases from the Fed.
Yahoo – potentially looking to sell its core internet business. (Bloomberg)
Exxon Mobil (N:XOM) – reached an agreement with Korean Gas to cooperate in development of LNG prospects. (Bloomberg)
Lockheed Martin – receives a USAF pact valued at $914mn. (Bloomberg)
Fed’s Evans stated that a December rate lift off makes him nervous but will go into the meeting with an open mind. Evans also reiterated that the path of interest rates is more important than the timing of lift-off. (Bloomberg)
Fed’s Brainard said that economic conditions are to guide the path of rate hikes and that the new normal for Fed policy could be low and gradual. Furthermore, she stated the new normal could be lower rates than pre-crisis decades and that the Fed is facing more risks of returning to zero than previously. (Bloomberg / Reuters)
WTI Crude futures traded flat over night. US API Crude Oil Inventories W/W 1600k vs. 2600k previously. (Reuters)