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Post by clinton on Oct 27, 2014 6:45:02 GMT -5
EU stocks lower following ECB stress tests
Stocks in Italy lead European shares lower after some of the country's banks came out badly in ECB stress tests.Banca Monte dei Paschi di Siena collapses 17.55% after being told that it needs to raise €2.11B. The world's oldest bank is exploring its strategic options.And while the tests were otherwise not as bad as expected, the STOXX Europe 600 Banks index is -1.2%. "The stress test results are positive, but the real test will be on European bank lending and on this the jury is still out,” says strategist Luca Paolini.KPMG believes banks still face a significant challenge. "The sector remains chronically unprofitable and must address their €879B exposure to non-performing loans as this will tie-up significant amounts of capital," KPMG says.Euro STOXX 600 -1.2%, London -0.8%, Paris -0.4%, Frankfurt -0.5%, Milan -2.2%, Spain -1.4%.ETFs: VGK, FEZ, IEV, HEDJ, EPV, EZU, EUFN, FEU, GUR, FEP, ESR, UPV, ADRU, EURL, FEEU, EURZ, DBEU, IEUR, FIEU, HEZU, FEUZ, ESTX
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Post by clinton on Oct 27, 2014 6:47:11 GMT -5
Frontrunning: October 27
Submitted by Tyler Durden on 10/27/2014 - 07:37
White House questions new Ebola rules, nurse plans to sue (Reuters)
States stand firm on Ebola quarantines despite White House pressure (Reuters)
Rousseff Naming Brazil Finance Minister Key to Regain Trust (BBG)
Ukraine leader wins pro-West mandate but wary of Russia (Reuters)
Single Firm Holds More Than 50% of Copper in LME Warehouses (WSJ)
Treasury Liquidity Squeeze Seen as Dealer Shut Off Machine (BBG)
CVS follows Rite-Aid, shuts off Apple Pay (USAToday)
Oil Speculators Bet Wrong as Rebound Proves Fleeting (BBG)
Draghi Sets Stimulus Pace as ECB Reveals Covered-Bond Purchases (BBG)
German Ifo Business Confidence Drops for Sixth Month (BBG)
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Post by huh on Oct 27, 2014 7:19:20 GMT -5
10 Things You Need To Know Before The Opening Bell Good morning! Here's what you need to know: 25 European Banks Fail The Stress Test. The European Central Bank examined how 130 European banks would perform under various adverse scenarios, and 25 of them failed. The review found that those 25 banks had a capital shortfall of €25 billion (or about $32 billion). "Banks with shortfalls must prepare capital plans within two weeks of the announcement of the results," the ECB said. "The banks will have up to nine months to cover the capital shortfall." The World's Oldest Bank Was The Worst. "Italy's Monte dei Paschi di Siena faces a €2.1 billion ($2.7 billion) funding shortfall that could force it to seek a merger, after a European banking review revealed serious weak points in the Italian financial system," Reuters reported. "The historic Tuscan lender, which was founded in 1472 and carried out a 5 billion euro capital increase as recently as June, said on Sunday it had hired Citigroup and UBS as advisers to consider strategic options." What About The Eurozone Deflation Scenario? Amid slowing growth, one of Europe's biggest problems is low inflation, which puts the economy at risk of falling into deflation. This exclusion had folks saying that the stress tests weren't stressful enough. "The scenario of deflation is not there because indeed we don't consider that deflation is going to happen," the ECB's Vitor Constâncio said. "But let me highlight that nevertheless, whereas the baseline scenario which is in the stress test has inflation at 1.6 in 2016, in the adverse it comes down to 0.3. So this drop in inflation is indeed factored in in the exercise and is a very significant drop. So it cannot be said that we did not consider the impact of a scenario of very low inflation. Indeed, we did it in comparison with the baseline." Credit Supply Isn't The Problem In Europe. The ultimate conclusion of the ECB's bank stress tests is that the banking system is relatively healthy. The banks have money to lend. So that's not Europe's problem. "Blockages are concentrated on the credit demand side rather than credit supply,” Societe Generale’s Michala Marcussen said. Markets Are Sliding. In Europe, Britain's FTSE 100 is down 0.3%, France's CAC 40 is down 0.4%, Germany's DAX is down 0.4%, and Italy's FTSE MIB is down 1.7%. Asia closed mixed, with Japan's Nikkei up 0.6% and Hong Kong's Hang Seng down 0.6%. US futures are in the red, with Dow futures down 23 points and S&P futures down 5 points. SPONSORED BY Capco What will the finance industry look like in the years to come? Find out how the financial supply chain is reshaping the "new bank" at the 2014 Banking Reloaded Conference on October 29.Register today to join others in learning about the future of banking. Brazil Re-Elects Dilma Rousseff. Dilma Rousseff had about 52% of the vote, securing her a second term as Brazil's president. While this was largely expected, it is a sign that Brazil faces more of the same ineffective policies. "Over the last four years the country has taken a turn for the worse," BI's Linette Lopez noted. "Low commodity prices have hurt Brazilian exports, and so has a Chinese slowdown. Inflation is high and corporate profits are thin. This is a task that Wall Street analysts thought [center-right candidate Aecio] Neves was better suited for. He ran a campaign on tightening monetary policy and bringing investment back to Brazil." Brazilian Stocks Are Crashing. As soon as markets opened in Asia, a popular ETF tied to Brazil's stock market trading in Japan plunged 7%. Similar ETFs trading in Europe are down by over 9%, led by an 11% plunge in Brazilian energy giant Petrobras. German Confidence Tumbles. Germany's IFO Business Climate Index fell to a 22-month low of 103.2 in October, which was worse than the 104.5 expected by economists. "The overall message from the IFO survey is then one of weak growth ahead, and elevated downside risks for growth in the fourth quarter," Pantheon Macroeconomics' Claus Vistesen said. "This downbeat signal from the IFO, though, is at odds with a more benign outlook as implied by the PMIs, but the survey data are currently broadly consistent with weak growth for the rest of the year." US Economic Data On Deck. At 9:45 a.m. ET, we'll get the Markit US services PMI, which economists estimate will fall to 57.8 in October from 58.9 in September. At 10 a.m., we'll get September pending home sales, which is expected to climb 1.0% month-over-month. The Dallas Fed Manufacturing Activity index at 10:30 a.m. is expected to climb to 11.0 in October from 10.8 a month ago. US Earnings Announcements On Deck. The pharmaceutical giant Merck announced Q3 net earnings of $0.90 per share, which was stronger than the $0.88 expected by analysts. The drug company Allergan releases Q3 results before the bell. After the bell, Twitter announces earnings; analysts are forecasting $0.01 per share on the bottom line. Read more: www.businessinsider.com/opening-bell-oct-27-2014-2014-10#ixzz3HLaTXR9f |
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Post by huh on Oct 27, 2014 7:19:55 GMT -5
10 Things In Tech You Need To Know Today 1. Google CEO Larry Page is taking a step back from the company to focus on "the bigger picture." Sundar Pichai will now lead all of Google's core products. 2. CVS and Rite Aid stores have blocked Apple Pay. They're asking customers to use their credit cards instead of the new NFC payment system. 3. Twitter agreed to acquire the domain and archive of troubled photo-sharing service TwitPic. It was hours away from deleting all of the photos. 4. Anonymous secret-sharing app Whisper has placed its editorial team on leave following an investigation by the Guardian. The newspaper claimed that the app was tracking specific users, an accusation that the company denies. 5. Google is preparing to roll out its new "Lollipop" update. Some phones have already been confirmed to support the new software. SPONSORED BY bRealTime, a division of CPXi Programmatic may be all about the automation of digital advertising, but are we forgetting the importance of the human touch? Read “Is A Man Vs. Machine Battle Brewing In Programmatic?” to find out more. 6. Thousands of Hungarians are protesting over a new tax on internet data. They say that it will stop some people having access to the internet. 7. Apple designer Marc Newson has designed a shotgun. It's a 12-gauge side-by-side design with ornate engravings. 8. Microsoft has cut the Nokia name from its branding. New phones will be called "Lumia" rather than "Nokia." 9. eSports commentator Ryan Wyatt will become the head of YouTube's gaming division. Google previously considered buying games streaming site Twitch. 10. iPhone pre-orders in South Korea are reportedly far higher than orders for the new Samsung Galaxy Note 4. The iPhone launches in South Korea on October 31. Read more: www.businessinsider.com/10-things-in-tech-you-need-to-know-october-27-2014-10#ixzz3HLabYgwk |
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Post by huh on Oct 27, 2014 7:20:54 GMT -5
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Post by huh on Oct 27, 2014 7:59:03 GMT -5
Odds are stacked against it, but if EWZ were to hold back above 39.50 today, that could set-up a serious short squeeze. But for now, that mark is simply resistance and a bearish backtest. JMHO |
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Post by huh on Oct 27, 2014 8:05:37 GMT -5
GPRO down ~6% in pre-market to 67.45. Bear flag on daily suggests downside to <57.00, still another 15% or so down from here.
I guess investors finally realized that camera companies fell out of favor more than a decade ago already.
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Post by clinton on Oct 27, 2014 8:34:56 GMT -5
oil is the new gold
man they hammered the price this morning
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Post by clinton on Oct 27, 2014 8:36:49 GMT -5
First time I crank up the heat in the morning
This should be the last beat down as everyone uses their furnaces.
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Post by clinton on Oct 27, 2014 8:38:27 GMT -5
I see Friday temps projected to hit sub 40 for the first time here in central Virginia.
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Post by walnut on Oct 27, 2014 8:53:15 GMT -5
Made a tiny profit with my tiny test trade with the security I am calling 'synthetic' lol. It went up when the market went up and when it went down. Now I need to write a better data linked spreadsheet to monitor the combinations better, too confusing to track mentally.
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Post by huh on Oct 27, 2014 8:56:33 GMT -5
S&P futures about to hit a bear flag downside target ~1944 (SPX ~1949-1950). Let's see if that can produce a bounce.
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Post by Herceg on Oct 27, 2014 9:00:11 GMT -5
S&P futures about to hit a bear flag downside target ~1944 (SPX ~1949-1950). Let's see if that can produce a bounce. Tug of war with the 1955 - 1960 area..................the longer it hangs here the more conviction I have that we head south.............NQ, SRPT ones to watch today........... JMO and BOL.......... |
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Post by clinton on Oct 27, 2014 9:01:03 GMT -5
love how oil beat down is before everyone gets to their desk in the morning.
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Post by huh on Oct 27, 2014 9:01:15 GMT -5
Courtesy of ST: howardlindzon Howard Lindzon Whoa @asymco: Apple accounted for 18 percent of the entire rise of the S&P 500 index this year stks.co/r0wPG |
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Post by clinton on Oct 27, 2014 9:02:52 GMT -5
BBT
Post-earnings regional bank pair trade from Sterne Agee
Spotting value in BB&T (BBT +0.2%), Sterne Agee ups the stock to a Buy with $43 price target. PNC Financial (PNC -0.3%) - on the other hand - loses its Buy rating, and is now a Neutral.
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Post by clinton on Oct 27, 2014 9:03:28 GMT -5
Pending Home Sales
September Pending Home Sales: +0.3% to 105 vs. +0.5% expected, -1% prior.
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Post by clinton on Oct 27, 2014 9:07:20 GMT -5
propaganda at work media keeps repeating how oil supplies are up we arent even at last years levels large gap last 5 weeks no one mentions this...anywhere  |
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Post by jacksrbtr on Oct 27, 2014 9:08:36 GMT -5
GPRO down ~6% in pre-market to 67.45. Bear flag on daily suggests downside to <57.00, still another 15% or so down from here. I guess investors finally realized that camera companies fell out of favor more than a decade ago already. I see more and more motorcyclists wearing helmets with cameras on them. |
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Post by clinton on Oct 27, 2014 9:13:20 GMT -5
someone posted today is last day of QE
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