Post by anenro on Oct 22, 2015 15:46:00 GMT 4
All eyes will be on ECB President Mario Draghi today amid a policy meeting in Malta that will provide clues about further monetary stimulus. Grounds for extending QE would include deflation risks, slowing growth in China and stock market volatility. On the flip slide, oil prices remain low, which is a boost for energy-importing eurozone countries, and confidence indicators remain solid. Economists widely expect Draghi to keep the door open for more stimulus at the press conference, but see him stopping short of announcing any new policy measures.
Chinese stocks recovered Thursday from an unexpected selloff in the previous session, though investors remain wary of weakness in the world's second largest economy. The central bank's moves to add liquidity to the market have helped restore some confidence, analysts said. After the close on Wednesday, the PBOC injected 105.5B yuan ($16.6B) into 11 financial institutions via medium-term lending facilities. Shanghai +1.5%; Shenzhen +3.7%; Chinext +4.8%.
Treasury Secretary Jacob Lew is concerned that "last-minute brinkmanship" in Congress could lead to a legislative "accident" in which lawmakers would fail to raise the debt ceiling before a Nov. 3 deadline. The standoff is bubbling through financial markets as investors limit their exposure to Treasury bills that mature in November, pushing yields to levels last seen two years ago, when Congress went through a similar episode. Republicans also find themselves distracted by leadership turmoil after House Speaker John Boehner said he would resign at the end of October.
The White House is also making its most expansive push yet to solve the debt crisis in Puerto Rico, pressing Congress to amend bankruptcy code, instate a financial control board and extend tax credits as the commonwealth struggles with $72B in debt. On Wednesday, the Government Development Bank, the island's de facto fiscal authority, ended talks with a group of its bondholders and their advisers after failing to reach a deal on restructuring the debt.
Gold has recaptured its shine in recent months, but that doesn't change the cloudy outlook for the precious metal over the longer-term, warns Goldman Sachs, which sees prices falling to $1,000 in 12 months as the Fed normalizes monetary policy. The yellow metal has rallied almost 8% since mid-July, and is currently trading at $1,167 an ounce.
"Greece has done a certain number of reforms, and we are going to give them money, €3B in all," European Economics Commissioner Pierre Moscovici told Europe 1 radio regarding the next installment of the country's bailout program. "And in the course of November, December, we will deal with the issue of the recapitalization of Greek banks and Greek debt," he added.
A fresh drive to impeach Brazilian President Dilma Rousseff is undermining market confidence again and bringing a decision about her political survival one step closer. The new petition is seen carrying more weight than the two dozen attempts before it, as it's based on a federal audit stating her government doctored fiscal documents to hide the size of the country's massive deficit. The Brazilian real has plunged 32% so far this year, while GDP is forecast to contract 3% in 2015.
Ferrari sparkled on its first day of trading yesterday as the luxury sports car maker celebrated the first step toward becoming an independent company. The stock traded as high as $60.97, or 17% above the $52/share IPO price, and closed at $55. According to analysts, about 9% of Ferrari (NYSE:RACE) is publicly traded, creating a scarcity premium that is helping sustain its share price.
CIT Group Chief Executive John Thain, who was appointed to turn around the commercial lender after its bankruptcy in 2009, will retire as CEO in March, but will continue as board chairman. He'll be succeeded as CEO by board member Ellen Alemany. Thain has had quite a career, including positions such as the finance chief of Goldman Sachs, head of the New York Stock Exchange and CEO of Merrill Lynch. CIT rose 5.1% in after-hours trading.
Chinese stocks recovered Thursday from an unexpected selloff in the previous session, though investors remain wary of weakness in the world's second largest economy. The central bank's moves to add liquidity to the market have helped restore some confidence, analysts said. After the close on Wednesday, the PBOC injected 105.5B yuan ($16.6B) into 11 financial institutions via medium-term lending facilities. Shanghai +1.5%; Shenzhen +3.7%; Chinext +4.8%.
Treasury Secretary Jacob Lew is concerned that "last-minute brinkmanship" in Congress could lead to a legislative "accident" in which lawmakers would fail to raise the debt ceiling before a Nov. 3 deadline. The standoff is bubbling through financial markets as investors limit their exposure to Treasury bills that mature in November, pushing yields to levels last seen two years ago, when Congress went through a similar episode. Republicans also find themselves distracted by leadership turmoil after House Speaker John Boehner said he would resign at the end of October.
The White House is also making its most expansive push yet to solve the debt crisis in Puerto Rico, pressing Congress to amend bankruptcy code, instate a financial control board and extend tax credits as the commonwealth struggles with $72B in debt. On Wednesday, the Government Development Bank, the island's de facto fiscal authority, ended talks with a group of its bondholders and their advisers after failing to reach a deal on restructuring the debt.
Gold has recaptured its shine in recent months, but that doesn't change the cloudy outlook for the precious metal over the longer-term, warns Goldman Sachs, which sees prices falling to $1,000 in 12 months as the Fed normalizes monetary policy. The yellow metal has rallied almost 8% since mid-July, and is currently trading at $1,167 an ounce.
"Greece has done a certain number of reforms, and we are going to give them money, €3B in all," European Economics Commissioner Pierre Moscovici told Europe 1 radio regarding the next installment of the country's bailout program. "And in the course of November, December, we will deal with the issue of the recapitalization of Greek banks and Greek debt," he added.
A fresh drive to impeach Brazilian President Dilma Rousseff is undermining market confidence again and bringing a decision about her political survival one step closer. The new petition is seen carrying more weight than the two dozen attempts before it, as it's based on a federal audit stating her government doctored fiscal documents to hide the size of the country's massive deficit. The Brazilian real has plunged 32% so far this year, while GDP is forecast to contract 3% in 2015.
Ferrari sparkled on its first day of trading yesterday as the luxury sports car maker celebrated the first step toward becoming an independent company. The stock traded as high as $60.97, or 17% above the $52/share IPO price, and closed at $55. According to analysts, about 9% of Ferrari (NYSE:RACE) is publicly traded, creating a scarcity premium that is helping sustain its share price.
CIT Group Chief Executive John Thain, who was appointed to turn around the commercial lender after its bankruptcy in 2009, will retire as CEO in March, but will continue as board chairman. He'll be succeeded as CEO by board member Ellen Alemany. Thain has had quite a career, including positions such as the finance chief of Goldman Sachs, head of the New York Stock Exchange and CEO of Merrill Lynch. CIT rose 5.1% in after-hours trading.