News & Views: Monday, September 8
What you need to know for today's trading day.
Pound Tumbles on Scots Poll as BOE Bets Pared, FTSE Drops (Bloomberg)
U.S. air strikes target insurgents near Iraq's Haditha Dam (Reuters)
IMF's Lagarde urges Germany to spend more, aid recovery (Reuters)
Alibaba Seeks to Raise Up to $21.1 Billion in U.S. IPO (Bloomberg)
The Outlook: Services Sector Gauge Finally Gets Its Due (WSJ)
The 3.5 sigma move in the GBPUSD is a clear talking point this morning. The sentiment for Scotland to separate from the broader UK has increased. A month ago opinion polls showed that staying with the UK had a 20 point lead. Two weeks later is was only 10 points. A week after that it was two. Today the polls (via YouGov) are two points in favor of independence. The move is also pushing out the rate normalization process by the Bank of England (BoE) due to the potential loss of economic activity. The referendum vote is scheduled for Sep 18 and has caused the UK government to put together a fiscal stimulus package over the weekend for Scotland.
China's trade surplus rose to a single month record thanks to a drop in imports - so it's not exactly an extremely positive movement. Exports rose to the US and Europe inline with expectations. Iron ore imports was the largest culprit for the decline with tonnage falling to 74.88mln from 82.52mln, although the market effect is not readily seen due to Chinese markets being closed for a holiday. Keep an eye on BHP Billiton (BHP) and Vale (VALE) this morning.
Japan's second quarter GDP was revised lower in the final estimate by one tenth of a percent due to an additional drop in both business and consumer spending. That undoubtedly will raise troubling signs for the government and BoJ to be more aggressive with stimulus measures on the monetary and fiscal front.
And to wrap things up, the weekend cartoon from the FT sure hits the nail on the head regarding the elephant in the room in Europe.
- Japan GDP (2Q final) annualized QoQ lowered to -7.1% vs -7.0% expected, prior -6.8%
-- Consumer spending QoQ -5.3% vs -5.0% exp, prior -5.2%
-- Business spending QoQ - 5.1% vs -3.4% exp, prior -2.5%
- Japan trade balance up to 416.7B Yen vs 444.2B exp, prior -399.1B
- China trade balance (Aug) up to $49.84B vs $40B exp, prior $47.3B
-- Exports YoY up 9.4% vs 9.0% exp, prior 14.5%
-- Imports YoY down -2.4% vs 3.0% exp, prior -1.6%
- German trade balance (Jul) up to 23.4B EUR vs 16.8B exp, prior 16.6B
-- Exports MoM up 4.7% vs 0.6% exp, prior 0.9%
-- Imports MoM down -1.8% vs 0.2% exp, prior 4.5%
- Swiss unemployment rate (Aug) unchanged at 3.2% vs 3.2% exp
- Swiss CPI (Aug) YoY up to 0.1% vs 0.0% exp, prior 0.0%
-- MoM unchanged at 0.0% vs -0.1% exp, prior -0.4%
US Economics (Time Zone: EDT)
3:00 Consumer Credit (Jul) - expected $17.3B, prior $17.25B
11:00 Fed buying $950M-$1.15b Treasuries in 25 to 30-year range
11:30 Treasury to sell $26b 3-month bills, $23b 6-month bills
FuelCell Energy (FUEL)
Campbell Soup (CPB)
Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Daily Recap Newsletter