In the week ending 28.08.2015 Crude Oil Inventories (excluding those in the Strategic Petroleum Reserve) are 455.4 M Barrels, they were 450.8 M Barrels previously.
US Senator Barbara Mikulski, a Democrat from Maryland, announced today she supports the nuclear deal with Iran, giving the agreement enough votes to be upheld in the Senate. Mikulski becomes the 34th Democrat to support the deal, which is enough to sustain a veto.
Gold prices moved lower today as a stronger US currency and gains in stock markets cooled investor appetite for the precious metal considered a safe-haven asset. Spot gold was recently down 1.8% at $1,137.15 a troy ounce.
July Factory Orders are 0.4% on a monthly base, it was expected to be 0.9% versus 1.8% previously.
The shares of action-camera maker GoPro Inc. fell almost 10% below $40 apiece after the start of today’s regular session dragged down by a weaker third-quarter outlook from a key component supplier – chip maker Ambarella. The news also made analysts at Raymond James cut its price target for GoPro cut to $50 a share from $71.
Latest media reports indicated that Tesla’s Model X Signature edition series will come with a 90 kilowatt-hour battery and an estimated range of 240 miles per one charge. The starting price is set at $132,000. The pricing information was confirmed by a Tesla spokesperson, who also added that the options and prices for the limited edition Signature Model X will be comparable to current Model S.
US productivity in the second quarter rose to an annual pace of 3.3% from a preliminary 1.3% gain, reflecting an earlier revision in gross domestic product that showed the US economy was much stronger in the spring than initially estimated. The rise in productivity was the biggest since the end of 2013, but the pace of growth is still slower than usual. A separate gauge showed the number of hours employees worked in the 2nd quarter was 1.4% from 1.5% reported initially.
US private-sector employment continued to gain in August, but at a slightly slower pace than expected. Employers added 190,000 jobs last month, Automatic Data Processing Inc. reported today, which was an improvement over July’s downwardly revised gain of 177,000 (185,000 jobs reported initially). Economists use ADP's data as a guide for the Labour Department's employment report, which is due on Friday and also includes government jobs. The dollar’s reaction to the report was muted.
Ambarella, the chipmaker for GoPro’s sports cameras, reported second-quarter (Q2) revenue late yesterday that beat forecasts, and earnings more than doubled, but the company’s fiscal Q3 revenue outlook missed analyst estimates. The report hurt GoPro’s shares and they lost 6.2% to $41 a share before the opening bell today.
According to Automatic Data Processing Inc. (ADP) Private Sector non-farm Employment Change is 190 000 in August, it was expected to be 200 000 versus 185 000 previously.
General Motors Co. expects to be profitable in India in 5 years as it reduces costs towards boosting local content in its cars, the automaker's country head announced today. Even after 20 years in India, GM's sales are declining and it had lost 38.5 billion rupees ($581 million) in India in the year to March.
Pilots of Deutsche Lufthansa AG may go on strike at any time now, their union announced today, as the executive board of the German airline rejected the trade union Vereinigung Cockpit’s proposal for an ‘alliance for growth and employment.’ The offer was for cost cuts of EUR 500 million and also required Lufthansa not to ‘flag out planes,’ a practice that implies relocation of employees to companies that don't follow the agreements between the airline and the union.
Citigroup Inc. today said it has stroke a deal to sell its consumer banking business in Hungary to Erste Bank Hungary Zrt and its subsidiary Erste Investment. The amount of the deal was not disclosed. The move is part of a global initiative by Citi to get rid of smaller operations. The sale is subject to regulatory approval, which is expected by the end of the year, and the transfer of customer accounts is expected to be completed in the last quarter of 2016.
Crude prices retreated today, extending losses from the previous session, as financial markets continued to weaken and US oil stockpiles most likely expanded. The official US stockpile report is due at 14:30 GMT today. The oil market has been extremely volatile over the past couple of weeks. An impressive 3-day rise in oil prices of over 25% was reversed yesterday, as worries about China’s economy resurrected. Light, sweet crude futures for delivery in October are down 8% to $44.23 a barrel from the closing on Monday. October Brent crude also slipped 8% to $48.71 a barrel since Monday’s close.
Intel Corp. is revamping its business of computer chips, in a high-stakes effort to revive sales of personal computers. The tech giant says the 6th generation of its Core processor line (based on a design dubbed Skylake) will boost performance and lower power consumption of PCs. Other features of the Skylake design could reduce the number of wires computer users need and replace passwords with face-recognition technology.
Volkswagen has said it aims to keep its Chief Executive Officer Martin Winterkorn, months after he won in a power struggle with the company's ex-chairman Ferdinand Piech. VW said today that its executive committee will ask the supervisory board to extent Winterkorn’s contract until the end of 2018. The news follows a turbulent period for VW, when the former chairman Piech announced in April that he was "at a distance to Winterkorn", before himself resigning from the board.
July PPI (Producer Price Index) is -2.1% on a yearly base, it was expected to be -2.1% versus -2.2% previously.
July PPI (Producer Price Index) is -0.1% on a monthly base, it was expected to be -0.1% versus -0.1% previously.
The activity in the British construction sector grew at a slower pace than expected last month, hurting optimism over the stability of the economy, latest data showed today. A report by Markit and the Chartered Institute of Purchasing & Supply (CIPS) said that their UK construction Purchasing Managers' Index (PMI) inched up to 57.3 points in August from 57.1 in July, while economists had expected a rebound to 57.5 points.
Alibaba’s unlimited video streaming subscription platform, Tmall Box Office (TBO), was launched for some users of its smart TV operating system in China. The TBO, which is meant to be the Chinese version of Netflix, gives viewers access to Chinese and foreign shows and movies starting at an equivalent of about $6.10 for a monthly subscription. Like Netflix, TBO plans to stream a mix of third-party products and original content made by Alibaba, which operates a film studio called Alibaba Pictures Group.
August Construction CIPS (The Chartered Institute of Purchasing and Supply) index is 57.3 points, it was expected to be 57.5 points versus 57.1 points previously.
The futures on the leading FTSE 100 index rebounded at some extend today to as high as 6,104 points after the previous day’s selloff, as some shares advanced on ratings upgrades. Tuesday’s 3% rout was fuelled by a dismal Chinese manufacturing data, which underscored worries about slowing growth in the world’s second-largest economy. All but the oil and gas sector stocks in the UK index moved higher today.
The euro is likely to be in focus at this week's policy meeting of the European Central Bank (ECB), as a new series of gains threatens to undermine the central bank's efforts to lift inflation in the eurozone. The ECB is to hold its meeting and news conference on Thursday and while no major policy shifts are expected to be revealed by the bank’s President Mario Draghi, analysts say he is likely to highlight further stimulus measures in the future are possible.
The Chinese central bank is imposing fresh controls to prevent too much money from leaving the country, boosting efforts to halt a deepening economic slump. The central bank said today that it will make it more expensive for investors to pressure the Chinese yuan to weaken against the US dollar. A weaker local currency generally pushes investors to look elsewhere to put their money and would complicate the government’s efforts to boost spending and spur economic growth.
President Nicolas Maduro said Venezuela reached a deal with China for a USD 5 billion loan to increase the OPEC country's oil production. Maduro said the loan was “to increase oil production in a gradual way in coming months,” without providing further details.
The recent market volatility shows how quickly unstability can spread among economies, the managing director of the International Monetary Fund (IMF) said in Jakarta on Wednesday. According to Lagarde, the global economy will be negatively affected by China's rebalancing, Japan’s slow inflation growth and the decline in commodity prices.
August Net Unemployment is 21 679, it was -74 028 previously.
Australian Q2 GDP grew by just 0.2% on the quarter, but TD Securities analysts doubt this would trigger for the RBA to cut rates. Instead, the bank will watch tomorrow's retail sales and next week's employment reports for guidance.
Oil extended its decline in today’s Asian trade on higher US inventories and weaker manufacturing data. Data from the American Petroleum Institute on Tuesday showed that US crude stocks rose by 7.6 million barrels to 456.9 million in the week to 28 August, versus a forecast for a 32,000 barrel increase. Official inventory data will be released by the Energy Information Administration later today.
China stocks managed to partially recover today on speculations that the government is putting pressure on brokerages to support the market. According to China Securities Journal, nine Chinese brokerages have pledged additional funds worth over 30 billion yuan to buy shares.
The AUD/USD pair rebounded from multi-year lows below 0.70 and rose to 0.7035, but later erased most gains and is trading flat as the European open approaches. In Asia trading, the Aussie tumbled to the lowest levels in over 6 years at 0.6982 after Australia’s GDP slowed from 0.9% in the March quarter to 0.2% last quarter.
• Today, at 8:30 GMT, the UK’s Markit/CIPS construction activity index for August will be released. The gauge is expected to have increased to 57.5 points from 57.1 in the previous month. Better-than-expected values would support the British pound.
• At 12:15 GMT, the data provider ADP will announce its estimate of the employment change in the US private sector. Economists expect 200,000 new jobs in August versus 185,000 in the previous month. Faster employment growth would support the US dollar.
• At 14:00 GMT, the US Factory Orders will be released. The median forecast is for an increase of 0.9% in July from the previous month, when they rose 1.8%. A higher growth pace will be USD positive.
Second quarter GDP (Gross Domestic Product) is 2.0% on a yearly base, it was expected to be 2.2% versus 2.3% previously.
Second quarter GDP (Gross Domestic Product) is 0.2% on a quarterly base, it was expected to be 0.4% versus 0.9% previously.
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