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From Briefing.com
Periodicals Wrap-Up for Thursday, November 13th
WALL STREET JOURNAL: The Wall Street Journal reported that Andrew Cuomo, New York state’s attorney general, is said to be seeking data from Bank of America (BAC). According to a person familiar with the matter, Cuomo’s office this week issued a subpoena to the bank looking for information on how it allocates its bonuses…FINANCIAL TIMES: The Financial Times learned that BAE Systems (BAESY) is in negotiations with Oman to sell up to 24 Eurofighter Typhoon fighter aircraft. Sources close to the negotiations said the deal could be worth at least GBP1.4B…REUTERS: Former American International Group (AIG) CEO Maurice “Hank” Greenberg said he would consider buying the Asian life insurance operations if the firm were to put the unit on the market. Reuters reported that Greenberg said he will only bid if the whole of AIA was for sale and would not go into partnership with AIG…BLOOMBERG: According to Bloomberg, rumors swirled that the German economy has entered the worst recession in at least 12 years after the Federal Statistics Office said gross domestic product dropped a seasonally adjusted 0.5% from the second quarter…
Asian Markets Wrap-up for Thursday, November 13
Asian stocks declined, after China’s industrial production rose less than expected last month and investors reacted negatively to the U.S. Treasury’s decision not to buy banks’ mortgage assets. JAPAN: Stocks dropped, led by electronics exporters after Best Buy (BBY) lowered its earnings outlook. The Nikkei 225 slumped 5.25% to 8,238.64. Sony (SNE) fell 8.7%, and Nintendo (NTDOY) declined 6.9%. Canon (CAJ), a digital camera maker, sank 6.3%. Chipmaker Elpida (ELPDF) retreated 13% after Intel (INTC) slashed its sales forecast. Mitsubishi UFJ Financial Group (MTU) dropped 3.7%. HONG KONG: The Hang Seng Index slumped 5.2%, to 13,221.35. HSBC (HBC) dropped 6.3% and Industrial & Commercial Bank of China declined 11%. Oil producer PetroChina (PTR) retreated 6.4% and Cnooc (CEO), another energy company, lost 5.3%. Hong Kong Exchanges sank 7.9% after it reported weaker than expected earnings. AROUND ASIA: China’s CSI 300 Index advanced 4.01%, but South Korea’s KRX 100 fell 3.08% and Taiwan’s Taiex lost 3.85%…China’s industrial production rose 8.2% year-over-year in October, the slowest increase in seven years.
German GDP dropped more than expected in Q3-Bloomberg
Germany’s GDP shrank a seasonably adjusted -0.5% in Q3, its biggest decline in 12 years. Economists predicted that Europe’s largest economy had contracted -0.2% last quarter.
EIA cuts demand forecast-FT
The Financial Times reports that the EIA has cut demand again. In explaining its decision, the IEA said in its latest monthly report, “The International Monetary Fund now sees advanced economies unable to escape recession: collectively, these are bound to contract by at least 0.2 per cent in 2009, for the first time since the second world war, instead of growing by 0.5 per cent as forecast in October. In addition, their GDP growth outlook for 2008 has also been slightly adjusted down to 1.4 per cent for the year, in anticipation of an even sharper contraction in both the third and fourth quarters of 2008.”
Futures turn lower on disappointing employment data
Stock futures are pointing to a lower open after the release of the jobless claims numbers. The initial jobless claims report showed 516k initial claims versus an expected 480k. This comes on the heels of 484k new jobless claims last week. The initial jobless claims report is a snapshot of the number of people filing a jobless claim for the first time. The continuing claims report showed 3.82M versus an expected 3.82M. The futures weakened immediately after the release of the numbers.
Analysts Upgrade Summary for Thursday, November 13th
MOST NOTEWORTHY: Charlotte Russe (CHIC), Las Vegas Sands (LVS) and J. Sainsbury (JSAIY) were today’s noteworthy upgrades: Roth Capital upgraded Charlotte Russe to Hold from Sell. The firm is positive on management’s strategy to drive improved operating performance and is encouraged by the company’s longer-term growth prospects. Banc of America upgraded shares of Las Vegas Sands to Neutral from Sell following the company’s capital raise as they see a more balanced risk/reward at current levels. The firm lowered their target to $5 from $12. J. Sainsbury was upgraded to Buy from Hold at ING and to Neutral from Underweight at JP Morgan after the company topped earnings expectations…OTHER UPGRADES: Constellation Brands (STZ) was raised to Buy from Neutral at UBS. Credit Suisse upgraded Ameriprise (AMP) to Outperform from Neutral. Bob Evans (BOBE) was upgraded to Hold from Underweight at KeyBanc.
Analysts Downgrade Summary for Thursday, November 13th
MOST NOTEWORTHY: Tibco (TIBX), General Motors (GM) and Donaldson (DCI) were today’s noteworthy downgrades: Jefferies downgraded shares of Tibco to Underperform from Hold to reflect Tibco’s exposure to the slowing financial services sector and their belief there is little chance of a company sale in the near-term. The company’s target was lowered to $3 from $5. JP Morgan downgraded General Motors to Neutral from Overweight citing the “ambiguity of government aid structure” and the likely dilution to equity. The analyst said GM needs money now to get past December 2008 and will need at least $15B to get through 2009, with the total bailout potentially reaching $30B. William Blair cut Donaldson to Market Perform from Outperform as they see downward revisions to management guidance given the recent deterioration in the global economic outlook…OTHER DOWNGRADES: Goldman downgraded Dell (DELL) to Sell from Neutral and added shares to the Conviction Sell List. J.C. Penney (JCP) was lowered to Equal Weight from Overweight at Morgan Stanley. Macquarie Infrastructure (MIC) was downgraded at Citigroup to Hold from Buy.
Analysts Initiation Summary for Thursday, November 13th
MOST NOTEWORTHY: Palm (PALM), American Express (AXP) and InterActiveCorp (IACI) were today’s noteworthy initiations: Goldman initiated Palm with a Sell rating and $2.60 target citing weaker revenues and intense smartphone competition. American Express was assumed with an Underperform rating and $17 target at Jefferies. Jefferies sees downside to shares from higher funding costs and deteriorating credit performance. Stanford thinks InterActiveCorp has quality assets but the firm believes the company’s strategy for achieving growth is unclear. Shares were initiated with a Hold rating and $18 target…OTHER INITIATIONS: BMP Sunstone (BJGP) was initiated with a Hold rating at Roth Capital. Atheros (ATHR) was started with a Neutral rating and $14.50 target at JP Morgan.
Fast Money Position recap-
Macke Owns (SDS), (UUP), (WMT), (MSFT); Najarian Owns (AXP) Put Spread; Najarian Owns (CHK) Call Spread; Najarian Owns (PTIE) Calls; Seymour Owns (AAPL), (BAC), (F), (MER); Seygem Assset Management Is Short (RSX); Finerman’s Firm Owns (OIH) Puts; Finerman’s Firm Owns (MSFT); Finerman’s Firm Is Short (USO), (VNO), (IYR), (IJR), (MDY), (SPY), (IWM), (COF), (BBT,), (GNK)
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