Market Levels
- US: Dow Futures: 12840.00 (0.35%), S&P 500 Futures: 1359.30 (0.61%), NASDAQ Futures: 2630.75 (0.44%)
- Europe: CAC: 3040.32 (-2.94%), DAX: 6417.56 (-2.53%), FTSE: 5447.72 (-2.35%).
- Asia-Pacific: Australia: 4297.00 (0.28%), China: 2380.72 (-0.60%), Hong Kong: 19735.04 (-1.16%), India: 4907.80 (-0.43%), Japan: 8973.84 (0.23%).
- Metals: Gold: 1561.04 (-1.43%), Silver: 28.48 (-1.44%), Copper: 3.57 (-2.21%)
- Energy: Crude Oil: 94.15 (-2.06%), Natural Gas: 2.48 (-1.20%)
- Commodities: Corn: 5.81 (-1.06%), Soya Bean: 13.04 (-2.98%), Wheat: 5.94 (-0.75%)
- Currency: EUR/USD: 1.2831 (0.70%), GBP/USD: 1.6065 (0.02%), USD/JPY: 79.7750 (-0.19%)
- 10 year US Treasury: 1.774% (-0.067)
Financial and Economic News Update
U.S. markets trading lower: U.S. markets declined in early trading amid growing political uncertainty in Greece and speculation that the country may leave the euro region. The Dow Jones Industrial Average (INDEXDJX:.DJI), the S&P 500 (INDEXSP:.INX) and the NASDAQ Composite (INDEXNASDAQ:.IXIC) were all trading about a percent lower.
European markets tumble: European markets are trading deep in the red with the German DAX (INDEXDB:DAX) slumping 2.5 percent to 6417.56, the FTSE 100 (INDEXFTSE:UKX) down 2.4 percent at 5447.72, and the CAC 40 (INDEXEURO:PX1) down 2.9 percent to 3040.32 . The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 2.8 percent lower.
Asian markets end lower: Asian markets closed lower on Monday with the HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 1.2 percent at19735.04, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended the day 0.6 percent lower at 2380.72. Japan’s Nikkei share average ended the day 0.2 percent higher, while the benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.59 percent to 16,196.41 points.
Company News Update
U.S.
- Fitch Ratings has cut JPMogran Chase & Co (NYSE:JPM)’s long tern issuer default credit rating to A+ from AA- following a $2 billion trading loss on Thursday. S&P also downgraded the bank from “stable” to “negative”.
- Yahoo! Inc. (NASDAQ:YHOO) Chief Executive Officer Scott Thompson has stepped down following a controversy over his academic credentials.
- Chesapeake Energy Corporation (NYSE:CHK) has reached a $3 billion loan agreement with Goldman Sachs Group, Inc. (NYSE:GS) and Jefferies Group, Inc. (NYSE:JEF) to help ease a cash crunch that threatens to curtail its operations.
- Apple Inc. (NASDAQ:AAPL) has refused to comment on reports that the company offered about 87.3 million euros ($112 million) to acquire the German TV maker Loewe AG.
- The Walt Disney Company (NYSE:DIS)’s “Marvel’s The Avengers” broke another box office collection record by raking in $103.2 million for in its second weekend in North American theaters, surpassing the $76.6 million collected by “Avatar”.
- The board of directors at Cabot Corp. (NYSE:CBT), the maker of carbon black used in rubber tires, has approved a 20 percent increase in quarterly dividend to 20 cents a share from 18 cents a share.
- Symantec Corporation (NSADAQ:SYMC), the world’s biggest seller of security software, was cut to “sell” from “neutral” at Goldman Sachs Group Inc.
Europe
- Banco Santander, S.A. (ADR) (NYSE:STD), Spain’s biggest bank, and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA), the country’s second largest, will set aside 4.5 billion euros ($5.8 billion) to meet new Spanish government reforms on risky assets.
- ING Groep N.V. (ADR) (NYSE:ING)’s rescue by the Dutch government during the financial crisis, will be re-examined by European Union regulators after a court overturned some of the conditions imposed on ING to receive state aid.
- Lonmin Plc (LON:LMI), the world’s third-largest platinum producer, posted an unexpected first half loss excluding one-time items of 6.9 cents a share, against the profit of 9 cents a share that analysts were expecting. The stock plunged 4.4 percent.
- Infineon Technologies AG (FRA:IFXA), Europe’s second largest semiconductor maker, said Chief Executive Officer Peter Bauer is set to step down at the end of September because of “severely worsening” osteoporosis.
- The Rank Group Plc (LON:RNK), the U.K. based gaming and betting company, agreed to acquire the casino unit of Gala Coral Group Ltd. for 205 million pounds ($329 million) in cash.
- Banco Espirito Santo SA (ELI:BES), Portugal’s biggest bank, has completed the purchase of 50 percent of the BES Vida insurance unit for 225 million euros ($291 million).
Asia-Pacific
- Japan’s largest drug maker, Takeda Pharmaceutical Company Limited (TYO:4502), forecast a 40 percent drop in operating profit to 160 billion yen ($2 billion) for the current fiscal year, because of acquisition costs and higher expenses. Analysts were expecting an operating profit of 226 billion yen. The stock plunged 3.2 percent in trading today.
- The Tokyo Electric Power Company, Inc. (TYO:9501), the operator of the devastated Fukushima nuclear plant, posted a bigger than expected full-year net loss of 781 billion yen ($9.7 billion), and forecast a third straight annual loss of about 100 billion yen for the current fiscal year, as it continues to reel under the heavy burden of costs stemming from the nuclear disaster.
- Hong Kong-listed United Company Rusal Plc (HKG:0486), the world’s biggest aluminum producer, reported an 84 percent drop in first quarter net profit to $74 million, from $451 million a year earlier, as prices of the lightweight metal declined.
- Wind power generation company China Longyuan Power Group Corp Ltd (HKG:0916) announced plans to issue 1.36 billion new H-shares, the proceeds from which would be used to develop its renewable energy business. The stock tanked 10.8 percent.
- Chevron Australia Pvt Ltd, a subsidiary of Chevron Corporation (NYSE:CVX), the second largest U.S. oil company, has entered into a long-term agreement with Japanese electricity supplier Tohoku Electric Power Co., Inc. (TYO:9506) for the supply of one million tonnes per annum of liquefied natural gas from its Wheatstone project in Western Australia.
- Australian gold-miner Westgold Resources Limited (ASX:WGR) has agreed to be merged with the country’s largest tin producer, Metals X Limited (ASX:MLX) in a deal valuing the combined company at 330 million Australian dollars ($333 million).
Economic Calendar for Monday, May 14 2012:
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
