Today’s Market Headline

                                                        Wednesday, Dec 10, 2014

·         Asian Market Update: Asian markets hit fresh lows; Shanghai outperforms

·         (CN) CHINA NOV CPI Y/Y: 1.4% V 1.6%E (5-year low)

·         (CN) CHINA NOV PPI Y/Y: -2.7% V -2.4%E

·         (EU) ECB's Praet: ECB gov. bond purchases would send a strong easing signal, would spill over into inflation expectations and encourage lending

·         (EU) EU’s Juncker told FAZ that if the countries do not follow up their words on budget consolidation with action it could get "uncomfortable" for them

·         (GY) Fin Min Schaeuble: To discuss Greece extension in the German parliament next week, hopes parliament will agree to the extension

·         (FR) FRANCE Q3 FINAL NON-FARM PAYROLLS Q/Q: -0.3% V -0.2%E

·         (SP) PM Rajoy said the country’s GDP could grow more than 2% next year

·         (UK) BCC lowers UK 2014 GDP forecast to 3.0% from 3.2% prior, lowers 2015 to 2.6% from 2.8% prior, lowers 2016 to 2.4% from 2.5% prior

·         Risk Arbitrage/Corporate: BT Group Said to Be Leaning Toward Buying U.K. Mobile Carrier O2 Over EE

·         Earnings: COST US

·         European Economic Calendar: UK Trade Balance, RICS House Price Balance

·         US Economic Calendar: MBA Mortgage Applications, Monthly Budget Statements

Quick Summary

- China CPI slowed to a 5-year low of 1.4% and PPI fell by the biggest y/y rate in 18 months. Slowing consumer inflation was attributed in part to continued fall in oil prices, as non-food component slowed to 1.0% from 1.2%. Disappointing CPI/PPI numbers prompted a fresh round of analyst calls for more PBoC easing to take place as soon as this month. ANZ note forecasted a RRR cut, and JPMorgan issued 2015 easing projections containing one more PBOC interest rate cut, 2-3 RRR cuts, and other targeted measures. Regulators also scrambled to address the spike in market volatility, issuing a warning to retail investors about the risks in equity trading while also calling brokerages to determine the impact of yesterday's market drop.

- Carney may reveal tomorrow if he’s willing to turn the key on discussions the BoE keeps behind closed doors. Nine months after U.K. lawmakers expressed incredulity that the central bank destroys recordings of Monetary Policy Committee meetings, the governor will publish a review into the practice. The BOE currently releases edited minutes showing how policy makers voted with a condensed account of their discussions, and none of the full transcripts produced years later by the U.S. Federal Reserve and the Bank of Japan.

- European shares are expected to open higher today, shrugging off the oil price decline that has shaken global markets.

Corporate Summary  

AAL   American Airlines Group, Inc - Said to have delayed initial Boeing 787 deliveries until Q1 2015 from 2014 end

 

APAM   Artisan Partners Asset Management - Reports Nov AUM $109.5B v $108.2B m/m  

 

BA   Boeing Co - Said to cut approx 550 jobs in Southern California

 

GTO.FR   Gemalto - Awarded multi-year contract in Quebec to supply drivers' licences  

 

KPN.NL   Royal KPN NV - To cut up to 580 jobs  

 

NKE   Nike Inc - Announces New GM of Emerging Markets  

 

ACA.FR   Credit Agricole S.A. - Could discuss CEO succession plan on Dec 17th 

 

BMY   Bristol-Myers Squibb Co - Increases quarterly dividend 2.7% to $0.37 from $0.36  

 

CP   Canadian Pacific Railway Limit - Nomura Initiates CP with Neutral, price target: $210  

 

CU.FR   Club Mediterranee SA - Fosun said to make new offer

 

EBAY   eBay Inc - StubHub unit to begin selling tickets to events in Japan

 

EMC   EMC Corp - JPMorgan Chase and Co Initiates EMC with Neutral, price target: $31  

 

HK   Halcon Resources Corporation - Commissions First Compressed Natural Gas Facility  

 

LRE.UK   Lancashire Holdings Ltd – PT lowered to 600p from 690p at JPMorgan, reiterates Neutral rating  

 

ROG.CH   Roche Holding AG - Notes data showing prognostic value of Preeclampsia test