8:30 am Wednesday, December 07, 2011
-Euro 1.3365 -0.26% vs. dollar.
-Crude -0.34% to $100.94.
-Gold -0.33% to $1726.05.
- The euro weakened, stocks fluctuated and U.S. index futures pared gains after a German government official said the country rejects proposals to combine the current and permanent euro-area rescue funds. German bonds rebounded after bids exceeded the target at an auction.
- Most international investors predict at least one nation will eventually dump the euro and they say greater fiscal ties or a smaller currency area are the best fixes for the region’s debt crisis, according to the quarterly Bloomberg Global Poll.
-Libor for Three-Month Dollars Climbs to Highest Since July 2009
-German October Industrial Production Rises Faster Than Forecast: Economy
-Cameron threatens to block new EU treaty. U.K. PM David Cameron has warned he will veto the eurozone’s deal to save itself unless he obtains assurances that future EU regulations won’t threaten the City of London or free-market rules. The French and Germans would like the whole of the EU to sign any new treaty but say the eurozone is prepared to go it alone. Meanwhile, Timothy Geithner is in France on the latest leg of his European tour as he pushes the EU to get its act together.
-WALMART…India suspended its decision to allow overseas retailers including Wal-Mart Stores Inc. to open supermarkets, dealing a blow to Prime Minister Manmohan Singh’s efforts to boost foreign investment and end a policy paralysis.
-Citigroup Will Eliminate 4,500 Jobs, Take $400 Million Charge
-IATA: Eurozone crisis could cause $8.3B in airline losses. The International Air Transport Association has warned that the airline sector could makes losses of $8.3B next year if a failure to resolve the eurozone’s debt problems causes a banking crisis and economic turmoil. The organization’s main prediction for 2012 is for a profit of $3.5B, down from a prior forecast of $4.9B. The IATA’s outlook for 2011 remains unchanged at a profit of $6.9B.
- Crude Oil Futures Decline on Concern EU Summit May Not Resolve Debt Crisis
-Palladium Climbs to Two-Month High on Automotive Demand; Gold Is Steady
-Corn Advances for Second Day as Europe Seen Moving to Contain Debt Crisis
-Homex Raised to Overweight vs Neutral at JPMorgan
-Petrominerales Ltd Raised to ‘Outperform’ at Raymond James. The 12-month target price is C$20.00 per share.
-Axtel SAB de CV Raised to Overweight at Morgan Stanley
-Peabody Energy (BTU): Downgraded by Goldman Sachs
- Homebuilder Servicios Corporativos Javer SAPI is underperforming similar-rated peers in the bond market as a drug war in northern Mexico helps cause a plunge in sales and a credit-rating downgrade.
-Mexico’s foreign reserves reach record high of 141.467 bln
- Brazil Interest-Rate Futures Yields Drop on Slower Inflation; Real Weakens
- Vale Agrees To Cut China Steel Iron-Ore Price by 20% to 25%, Estado Says
-Santos Says ‘Not Convenient’ for Colombia Central Bank to Lift Rates More
- Peru Likely to Maintain Key Rate as Inflation Outweighs Slowdown Concerns
Wednesday’s economic calendar:
7:00 MBA Mortgage Applications
10:00 Quarterly Services Report
10:30 EIA Petroleum Inventories
3:00 PM Consumer Credit
This report has been prepared for informational purposes only and it is not intended to be an offer or a solicitation of an offer to buy or sell any security, options, future, derivative or any financial product. The information contained is constantly changing by market action and may become obsolete very quickly. Past performance is no indication of future results. Any prices provided are subject to change without notice. All information was obtained from sources believed to be reliable but we cannot guarantee its accuracy or completeness. At any given time, the opinions expressed in this commentary may differ from other divisions of the firm. This report does not intend to address the risks relevant to investing in the securities or markets mentioned, and hence there may be realizable as well as non realizable risks that have to be considered for any investment, including liquidity risk and systemic risk.