The matter of customer loyalty in the growing market for mobile payments was one of the main issues behind today’s decision of an Evercore ISI analyst to cut his rating on eBay Inc. to sell from hold. The analyst also cut his price target on eBay’s shares to $49 a share from $52, saying that “increased competitive risks outweigh potential rewards” for the company’s PayPal business, which eBay plans to separate as a separate, publicly traded company in 2015.
The iOS 8 crisis doesn’t look to be ending anytime soon. Just days after Apple released the vital iOS 8.1.1 update, a patch it meticulously tested with developers for over 2 weeks, a fresh outbreak of complaints and bug reports has occurred. Signs of problems came from user comments. The official Apple Support Communities board has a number of new threads with users pointing out issues after installing iOS 8.1.1.
The Canadian dollar advanced to the highest level this month after inflation climbed faster than economists’ projected in October, boosting speculation the Bank of Canada will signal it’s closer to raising interest rates. USD/CAD fell below 1.1200 after the inflation report.
Ford Motor Co. said its aluminum-bodied F-150 pickup will get as much as 29% better fuel economy than its steel predecessor as the car maker gambles with a new design for its top-selling and most profitable model. The production of the model began earlier this month and it’s scheduled to arrive in showrooms by the end of this year. Still, Ford told investors in late September that pretax profits this year will slip to $6 billion, below its goal of $7 billion to $8 billion.
Apple Inc. is opening its advertising services unit to partners to help sell promotions more efficiently, aiming to fuel revenue growth at the struggling division. Apple, which first rolled out iAd in 2010, will enable automated ads, making it easier to manage and track ad performance, according to the president of AdRoll, a Web-advertising firm that’s a new Apple ad partner.
Economists will be watching revised gross domestic product (GDP) figures Wednesday, to find out whether consumer spending was still the main driver of the British economy in the 3rd quarter. The GDP headline figure isn't expected to change from the preliminary numbers released last month, which showed the British economy grew 0.7% on a quarterly basis and 3% compared with the same period a year ago.
Shares of Autodesk advanced 7.9% to $62.97 apiece after the opening bell today after the design-software company’s quarterly results topped expectations. The company was among the biggest gainers in the S&P 500 index in the session so far.
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Gold prices climbed to $1,207.68 a troy ounce today – the highest since 30 October, reacting to dovish comments from European Central Bank President Mario Draghi and an unexpected rate reduction from China’s central bank. The accommodative monetary policy is generally friendly to gold, precious metals analyst at UBS said today. “China’s gross domestic product in recent years has coincided with growth in demand for gold,” he added.
The euro extended its losses against the US dollar today after the European Central Bank (ECB) started purchasing asset-backed securities in an expansion of its quantitative easing program as inflation outlook for the euro area continued to faint. The EUR/USD slipped to as low as 1.2405 to today’s trade so far.
A new report from credit-rating agency Standard & Poor’s is causing a firestorm in China, with media reports saying the paper finds half of all government debt in the country may deserve a junk” rating. The recent S&P note said 15 of 31 provincial governments in China have issued debt instruments that have “speculative-grade credit features” under its criteria. However, S&P stopped short of saying the debt would merit such ratings, saying only that the securities had the “quality” of speculative-grade debt.
The European Central Bank has dropped Citigroup from its experts' working group on foreign exchange, days after the US lender was fined by American and British regulators. Citi, the world's biggest foreign exchange bank, was one of 6 lenders fined a total of $4.3 billion last week for failing to prevent employees from attempting to rig benchmark currency rates.
Internet company GoDaddy Inc. filed for its initial public offering (IPO) and said it plans to use part of the proceeds from the public debut to repay debt and for general corporate purposes. The number of shares to be offered and the price range for the proposed deal haven’t yet been determined, but the company said it plans to raise up to $100 million, but this amount will likely change. GoDaddy, founded by Bob Parsons in 1997, listed its total capitalization at $1.83 billion as of 31 March.
European Central Bank has begun buying asset-backed securities, it announced today, in attempt to make banks lend and thus revive the economy. "Following publication of legal act on the implementation of the ABS purchasing program, the Eurosystem has started the purchases on 21/11/2014," the bank posted on Twitter. The purchases will probably last two years, said Draghi at a press conference last month. Earlier in the year, ECB presented plans to buy asset-backed securities and covered bonds, called private or mini QE. At a banking conference in Frankfurt today, Draghi said the bank will "do what it must" regarding asset buying. EUR/USD extended losses to 1.2405 after the news.
Inflation in Canada surprised on the upside in October, led by price increases for meat and utilities, and the annual core rate rose at its fastest pace in nearly 3 years. Canada's all-items consumer-price index advanced 2.4% last month on a yearly basis, above a 2% gain expected. The core inflation rate, which excludes volatile components, rose 2.3%, hitting its highest level since February 2012. Traders anticipated the core rate to climb by just 2.1%. The USD/CAD pair fell 0.6% to a 3-week low at 1.1189 after the inflation data.
October CPI (Consumer Price Index) is 2.4% on a yearly base, it was expected to be 2.0% versus 2.0% previously.
October CPI (Consumer Price Index) is 0.1% on a monthly base, it was expected to be -0.2% versus 0.1% previously.
A dovish European Central Bank President Mario Draghi and a rate reduction from China’s central bank triggered a rally for stock futures today, with the ground laid for another record-setting session for Wall Street. The futures on the Dow Jones Industrial Average rose 0.9% to 17,826 points, the contracts on the Nasdaq 100 gained 1% to 4,278 points, while those on S&P 500 added 0.9% to 2,067.65.
Equities across Europe jumped today, with gains fuelled by central banks of China and the eurozone seeking to bolster economic growth. The People’s Bank of China said it is cutting interest rates and is ready to inject more liquidity into the banking system if needed. European stocks had been pushed higher earlier in the session, after ECB President Mario Draghi signalled the bank is set to expand its asset-purchase programs if the inflation stays at stubbornly low levels. The futures on Germany’s DAX 30 index surged 2.1% to 9,678.7 points. Contracts on France’s CAC 40 index rose 2.1% to 4,310.5 points, while those on the UK's FTSE 100 advanced 1.1% to 6,749.7 points.
British stocks rose today, with Rolls-Royce Holdings PLC among the biggest gainers. Shares of Rolls-Royce climbed 1.5% to GBP 8.55 a share as the company said it won a $5 billion order from Delta Air Lines to make engines and provide support for 50 new Airbus aircraft.
Bill Gross, who recently left Pimco for Janus Capital, just received $500 million to manage on behalf of hedge-fund legend George Soros. In a news release yesterday, Janus said Quantum Partners LP, a private investment fund managed by Soros Fund Management, has invested $500 million in a separate account managed by Gross.
The Dutch central bank (DNB) said today it is repatriating some of its gold reserves from the USA, making it the latest central bank in Europe to address public concerns about the safety of its gold. DNB said the measure could have a positive effect on public confidence.
China’s central bank (PBOC) unexpectedly announced a reduction in benchmark interest rates today. The PBOC cuts the 1-year deposit rate from 3.00% to 2.75, and the 1-year lending rate – from 6.00% to 5.60%, effective from 22 November. The surprise move pushed the AUD/USD pair up 1.1% to 0.8719, boosted global stock futures – the US indexes rose to record highs, and spot gold surged 1.1% to $1,201.01 a troy ounce.
According to Nick Lawson from Deutsche Bank, although Mario Draghi did not provide details on the timing or extent of potential measures, "he did provide a very detailed rebuttal of the criticism that the ECB has been facing over recent weeks", which in his opinion is impacting the markets. "The fact that stocks have surged and that the Italian 10-year government bond yield is at a record low, shows just how warmly the market is welcoming the remarks," Lawson added.
Britain’s borrowing in the first seven months of the financial year was lower as compared to the same period last year, due to weak tax receipts. The Office for National Statistics (ONS) reported a shortfall between government spending and income of 7.7 billion pounds in October, making the amount borrowed between April and October GBP 64.1 billion, GBP 3.7 billion more than for the same period of last year. The latest data suggests borrowing forecasts for next year may turn out to be underestimated.
In October, the public sector net borrowing excluding temporary effects of financial interventions (PSNBex) was 7.7 B pounds. It was expected to be 7.7 B pounds, following a previous value of 11.8 B pounds.
Nike Inc. plans to raise its quarterly dividend by 17%, which would be the 13th consecutive year for the sports goods retailer to boost its payout. The dividend, which will be increased to 28 cents from 24 cents, is payable on 5 January. Nike reported higher quarterly sales in September as athletic clothing continues to cross over to casual ware and even workplace attire. Nike was added to the Dow Jones Industrial Average last year. The stock, up slightly in recent after-hours trading, set a 52-week-high yesterday at $97.67 before closing at $97.25 a share.
The European Central Bank President Mario Draghi sent a strong signal today that the central bank is ready to expand its asset purchase programs if inflation shows signs of staying at too low levels for too long. EUR/USD tumbled 0.8%, or nearly100 pips, to 1.2457 after those remarks.
Projections for declines in the euro versus the US dollar as monetary policy in United States and the Eurozone diverge are the basis for the top trade Goldman Sachs is recommending to clients for 2015. The bank predicted the EUR/USD will slide to 1.15 during the next 12 months.
Alibaba Group Holding Ltd. sold $8 billion of bonds in its debut securities auction at yields that were lower than originally offered after the Chinese e-commerce company got at least $57 billion of orders from investors. The $8 billion sale surpasses a $6.5 billion issue last month by Bank of China Ltd. and became the biggest dollar-denominated offering by an Asian company. Alibaba, which raised a record $25 billion in an Initial Public Offering on Wall Street in September, will use the new proceeds to refinance some credit agreements.
Autodesk Inc. said its revenue topped expectations in the fiscal quarter through October as the design-software company continued to add subscribers and received a boost from an acquisition made earlier in 2014. Shares rose 3.6% to $60.49 apiece in after-hours trading as earnings excluding items also surpassed expectations.
Brent and West Texas Intermediate crude headed for their first weekly gain since September as analysts are divided on whether the Organization of Petroleum Exporting Countries will reduce production to support lower prices. WTI futures gained 0.3% this week. Half of the 20 analysts surveyed by Bloomberg think the OPEC members will reduce output, while the rest expect no change.
The Japanese yen advanced slightly, paring the sharpest 5-week decline since 1995, after Japan’s Finance Minister Taro Aso said the currency had depreciated too rapidly. The USD/JPY pair slipped to 117.43 after rising to 118.96 yesterday. Japan’s currency has fallen against all except one of its 31 major currencies this week before Japan holds a lower house election in December.
Japanese Prime Minister Shinzo Abe officially dissolved the lower house of parliament today, preparing for an early election next month. Citing worsening economic conditions, Abe announced earlier this week that he would postpone a national sales-tax hike scheduled for October next year, and called an election for next month that he will take as a referendum on his economic program of easy money, government stimulus and structural changes, known as Abenomics.
• At 8:00 GMT, the President of the European Central Bank (ECB), Mario Draghi, will hold a speech at the 24th European Banking Congress “Reshaping Europe” in Frankfurt, Germany. Usually the volatility of the euro is higher during Draghi's speeches.
• At 13:30 GMT, the Canadian inflation data will be released. The Consumer Price Index is expected to decrease 0.2% in October from the previous month, when it rose 0.1%. Usually higher inflation leads to appreciation of the national currency.