Reports » Europe

US stock market, economy and companies update (February 09, 2012)

With the Greece bailout cliffhanger continuing in Europe, investors are in no mood to dive into risk or send equity indices much higher. As of writing, it appears that the Greek government has managed to strike a deal to pass all the required austerity measures, after contentious, down-to-the-wire negotiations (at least one government minister has resigned over the deal and nation-wide strikes are in the works). Now euro zone finance ministers, including Greece's Venizelos, are meeting in Brussels to hash out the release of the second bailout package. Venizelos also hinted that a deal with Greece's private creditors (PSI) had been reached. In the US, initial jobless claims took another big leg down, further reinforcing that the jobs picture is getting better.

European stock market, economy and companies update (February 09, 2012)

European shares traded in positive territory ahead of ECB's and BoE's rate decision due later in the NY morning. Traders expect both banks to maintain an accommodative policy. Few analysts expect ECB to cut its interest rate from the 1% level, but amid the Greek turmoil, the central bank is expected to hint at future rate cuts. On the other hand, BoE may increase its Asset Purchase Target.

US stock market daily report (February 08, 2012, Wednesday)

According to a survey by Lake Research Partners done for the National Association of Home Builders and presented Wednesday at the International Builders Show, 78% of Americans identified as likely to vote in the 2012 presidential election said that owning their own home was one of the most important things in their lives, 74% agreed and 43% strongly agreed that owning a home was worth it even with all the ups and downs of the housing market. This all despite the beating that home prices have taken over the last five years, Americans are still optimistic about their own housing situation. Of those polled, one-third said housing was one of the best investments you could make, ignoring the 30%-plus drop in home prices nationally since the peak of the housing boom in 2006. The only better investment Americans can think of is a retirement account such as an IRA or 401(k). Current homeowners reportedly were not discouraged by the pitfalls of paying for and maintaining a house, 96% said they were happy with their decision to own a home and 85% said they were very happy with that decision. “The desire for homeownership long-term is still there,” said Frank Nothaft, chief economist for mortgage agency Freddie Mac, even if economic and job uncertainty is keeping people from jumping into the market today. Obama late in January unveiled a new mortgage-refinancing plan designed to help distressed homeowners. This type of assistance is what respondents to the survey said is appropriate for the government to do in support of housing. Two-thirds said it was OK for the government to ensure the availability of 30-year mortgages and 75% said it was all right to use the tax code to support homeownership. Sixty-five percent of those surveyed said they would be less likely to vote for a candidate who supported the position of a proposal to cut the mortgage-interest tax deduction as part of the deficit-reduction debate. Sounds like homeowners have spoken, to those running for presidential election.

US stock market, economy and companies update (February 08, 2012)

After opening in positive territory, thanks to some decent corporate earnings, US indices are sinking into the red as concerns about Greece push back to the forefront. Greek political party leaders finally got around to conferencing about austerity measures this morning and investors are eagerly awaiting the outcome of the meeting. Note that yesterday afternoon, there were press reports that the ECB would be willing to exchange Greek debt for EFSF bonds (thanks to guarantees that it would not take losses in the exchange). This morning more unconfirmed reports indicated that the ECB has not committed to any such exchange, pouring cold water on yesterday's story. Crude spiked from $96 to just over $100 this morning, before trading off again.

European stock market, economy and companies update (February 08, 2012)

European shares were up among optimism that Greek debt deals are continuing to progress. Reports from Greek press noted that the PSI deal is now completed. The coupon would be 3% to 2020. Greek political leaders are expected to meet later in the day and are expected to agree on austerity measures. On the other hand, Greece PM is also meeting individually with ECB, EU and IMF.  In individual names, Sanofi [SAN.FR] dropped about 2% after issuing a profit warning for 2012. Due to generic competition, Sanofi expects profit to drop up to 15% in 2012. Vestas [VWS.DK] also declined after reporting a significant decline in its EBIT and announcing the resignation of its CFO.

US stock market, economy and companies update (February 07, 2012)

Equity indices on both sides of the Atlantic are back to unchanged this morning after a rocky start. There is a considerable amount of optimism about the situation in Greece this morning, after the government was reported to have secured a deal to pass fresh reform measures, removing at least one block to the next round of aid payments from the EU and the IMF. With the better sentiment about Greece, the dollar is underperforming, aiding commodities. After sinking as low at $96 earlier in the session, the front-month WTI contract is back up to $98.

European stock market, economy and companies update (February 07, 2012)

European shares declined during the session among stalling Greece talks and mixed corporate earnings. The Greek government is struggling to progress on planned austerity measures which has triggered concerns over a contagion in the Eurozone. Fitch noted that Eurozone crisis is likely to be prolonged as a consequence while Citigroup analysts forecast chances of Greece exit from the EMU at 50% within 18 months vs prior forecast of 25-30%.

US stock market daily report (February 06, 2012, Monday)

On Monday, European leaders, the 'troika' are found to increase pressure on Greece to cut a deal for a second international rescue package by agreeing to more painful reforms, warning that failure to act may lead to a debt default that could drive the country out of the euro zone. Greek party leaders resisted calls for additional austerity, particularly private-sector wage cuts, as the country’s long-running debt crisis cast a cloud over global financial markets. Prime Minister Lucas Papademos said late Sunday after a five-hour negotiating session with the leaders of the three parties that back his interim government produced an agreement on some demands, including spending cuts equal to 1.5% of gross domestic product. Disagreements over additional demands from the Greek 'troika' of international creditors were seen blocking the path to a final deal. Reports indicated that leaders were resisting calls for implementing wage cuts in the private sector. The European Union, International Monetary Fund and European Central Bank are the 'troika' of Greece creditors, that must be satisfied in order to receive a second bailout of 130 billion euros ($170.6 billion) that was agreed to in principle last year. Greece is expected to miss a March debt repayment, putting the country into outright default, without the aid. Leader of the conservative New Democracy party, Antonis Samaras, said he would continue to resist pressure for additional austerity as the troika is 'asking for more recession' in Greece.

US stock market, economy and companies update (February 06, 2012)

The focus is once again on Greece this morning, after political leaders in Athens failed to achieve agreement on a key package of new austerity measures. Talks between the political forces in the Greek parliament will continue through tomorrow, and if no deal is reached the second bailout deal, worth €130-145B could fall apart, calling into question Greece's solvency. Investors are seeking cover in USTs, and gold is in the red. Crude is a bit lower, hanging around the $97 handle.

European stock market, economy and companies update (February 06, 2012)

European equity indices opened the session lower, led by declines in French equities. European banks are mostly in negative territory amid continued concerns related to Greece and Portugal. Additionally, there has been speculation that European banking officials might have reservations about some of the capital plans presented by banks, while the daily use of the ECB's deposit facility has moved back towards the recent record highs. Underperformers include Credit Agricole [ACA.FR] and SocGen [GLE.FR].

US stock market daily report (February 03, 2012, Friday)

Football fans across America and around the world will be glued to their TV on Sunday February 5, watching the biggest and final NFL football game of the year at the Superdome in Indianapolis, Indiana - Super Bowl XLVI between the New England Patriots and New York Giants. Wagers are high in Las Vegas over the game this year with hundreds of millions of dollars at stake. Non-gambling activities for Super Bowl weekend is projected to reach nearly $100 million. Giants will be looking for a double or nothing title after their win over the Patriots in Super Bowl XLII, in 2008. Football fans are expected to begin the weekend long of football fever partying, as early as today.

US stock market, economy and companies update (February 03, 2012)

The January US jobs report is driving equity market gains this morning. The big increases in non-farm and private payrolls are a welcome sign that the US economic recovery is continuing, meanwhile the unemployment rate, at 8.3%, is at its lowest point since early 2009. The skeptics have tried to find the wrinkles in the reports, and apparently the only sour note is a 30-year low in the labor force participation rate, although analysts are debating whether this is due to the long-term unemployed or rather baby boomer retirees beginning to leave the workforce.

European stock market, economy and companies update (February 03, 2012)

European shares rose ahead of the US nonfarm payrolls data due out during the NY morning. While macroeconomic data from both sides of the Atlantic have been strong, further stalling of the Greek PSI deal talks may push the market lower. China Premier Wen reiterated its stance to cooperate with Europe to deal with the crisis but dids not have the ability or intention to 'buy Europe'. IMF Dep Manager Shinohara commented that the IMF might need $2T to handle the global issues at hand with a general consensus in G20 on extra IMF money but was too early to say how much each nation would contribute.

US stock market daily report (February 02, 2012, Thursday)

The insider trading bill for lawmakers is something everyone should be calling your state representatives about - its common sense that insider trading should be banned for everyone, regardless of your job, title or government position. Just because you are a lawmaker or a staffer, you should be held accountable for laws upheld for Main Street Americans. Send a letter, email or make a call to your state leaders to pressure the passing of this law!

US stock market, economy and companies update (February 02, 2012)

The market sentiment is one of very cautious optimism this morning, thanks to some solid US data and a few strong US earnings reports. The January Empire Manufacturing index was very strong, with excellent showings in the new orders and employment components. Initial jobless claims extended their gradual downtrend, boosting optimism about tomorrow's January non-farm payroll report. January same-store sales were decent, with a few exceptions.

European stock market, economy and companies update (February 02, 2012)

European shares erased gains during the session after drop in oil -related names offset the rally following merger talks between Xstrata and Glencore. Xstrata [XTA.UK] rallied over 12% after confirming that Glencore made an approach for a merger of equals. Glencore already owns 34% of Xstrata shares. However, overall earnings for European companies were disappointing. Among notable names, Shell [RSDA.NL] declined after missing its net adjusted profit.

US stock market, economy and companies update (February 01, 2012)

January manufacturing data from China and the US continue to lift global equity markets this morning. Europe surged on the China PMI, and US market gains are being sustained by the ok showing in the ISM manufacturing report, including a nice showing in the prices paid component. The January ADP employment report begins the lead-up to Friday's January payrolls and employment reports. The report this morning was a bit weaker than expected, although the series is not considered terribly predictive. Crude continues its slide lower, with the front-month WTI contract only a bit above the $98 handle. The US long bond is down nearly a full point pushing its yield back up towards 3% today's better risk environment.

European stock market, economy and companies update (February 01, 2012)

European shares rose on the session lifted by mining stocks which rallied after Chinese manufacturing rose to a 4-month high. In individual names, ICAP [IAP.UK] jumped over 8%, despite reporting a decline in revenues. However, the company expect pre-tax profits for the year to 31 March 2012 to be towards the upper end of the current analyst range of £336-358M. Infineon [IFX.DE] reported better than expected operating results and revenues but noted that Q2 sales are expected to be flat to down compared to Q1.

European stock market, economy and companies update (January 31, 2012)

EU's Juncker commented that there was no need for a special commissioner to monitor Greece and forecasted an agreement between Greece and private creditors possible by end of week and Monday 'at the latest' and heinsisted to Greek PM Papademos that PSI be settled asap. He added that Mersch was the best candidate for ECB executive board. China Premier Wen reiterated the view that China would fine tune its economic policy and step up credit support for the economy at a State Council meeting. He commented that it would promote reasonable decline in housing prices

US stock market daily report (January 30, 2012, Monday)

During December, Americans cut back on spending and used their increase in wages to bolster their savings accounts. Consumer spending accounts for as much as 70% of U.S. economic activity and renewed caution by consumers is a double-edged sword - improving their savings while attributing to the sluggish economic growth with reduced spending. Spending would increase if wage growth found a way to increase, at a faster pace. According to government data, the income of U.S. workers jumped 0.5% in December to mark the biggest gain in nine months. The increase was fueled by a sizable increase in hiring. The money left over after taxes which is inflation-adjusted disposable income climbed 0.3%. Inflation-adjusted after-tax income rose only 0.9% for the year 2011 however, the amount was not enough to keep up with a 2.2% rise in personal spending. Spending in December fell slightly, off less than 0.1% as consumers appear to already have begun the process of paying down their debt loads. During November, the combination of higher income and lower spending allowed consumers to boost their savings rate to 4% from 3.5% - reversing a six-month decline. The savings rate however, remains well below last year’s level of 5.2. Expectations are for the U.S. economy to expand at a 2% clip in the Q1, down from an initially reported 2.8% in the final three months of 2011. The Q4 growth was somewhat less than expected owing to weaker spending. After Americans rebuild their savings, they will be in a better position to spend, later in 2012. Measured by PCE index, inflation edged up 0.1% in December, to put the increase in 2011 at 2.4%. After a big spike early last year, inflation has begun to moderate. Core PCE, which excludes volatile food and energy costs, rose 0.2% and for the full year, the core PCE rose 1.8%. Spending and income data for November remain unchanged and revised data showed both increased by 0.1%. The Federal Reserve uses the core PCE as a tool to help determine whether to raise or lower interest rates. The central bank prefers to keep inflation at 2% or below.

US stock market, economy and companies update (January 30, 2012)

Risk is off on a worldwide basis this morning as investors fret over Greece's negotiations with its creditors and European leaders meet in Brussels for the umpteenth time. The spat over the weekend between German government coalition members and the Greeks is not helping anyone feel better about Europe. Recall that German Econ Min Roesler apparently told the FT that a special budget commissioner would have veto power over the Greek budget, provoking a furious reaction from Athens. Meanwhile this morning officials at the Eurogroup summit concerned themselves with the draft of the new European fiscal pact and said they would not focus on Greece, only deepening the impression that Europe is not facing up to reality.

European stock market, economy and companies update (January 30, 2012)

European shares declined during the session pressured by the financial sector as Greece failed to reach a final agreement with its private creditors. The debt talks, now at a tentative stage, come at a crucial time ahead of the EU's first 2012 summit which will take place today in Brussels. EU leaders are expected to finalize its austerity measures package but the discussion may center around a deal on PSI. In individual news, Philips [PHIA.NL] lost over 2% after reporting a wider than expected loss and remained cautious on 2012, especially Europe. The company had already issued two profit warnings regarding its disappointing Q4 earnings.

US stock market daily report (January 27, 2012, Friday)

U.S. Labor Department reported new applications for unemployment benefits rose sharply last week, but initials claims remain at a level usually associated with a modest improvement in U.S. hiring trends. U.S. jobless claims climbed by 21,000 to a seasonally adjusted 377,000 in the week ended January 21 and jobless claims from two weeks ago were revised up by 4,000. The number of jobless claims frequently gyrate during January despite government efforts to adjust for seasonal factors owing to the end of temporary jobs created during the holiday season. For the first week of January, jobless claims totaled 402,000 and sank to 356,000 two weeks ago before bouncing back up again last week with the average of four-week claims fell slightly, down 2,500 to 377,500. The monthly average jobless claims has shown little change over the past six weeks, but recent levels suggest a declining number of layoffs in broader economy. The current pace of hiring, approximately 150,000 jobs a month, is barely able to absorb the natural increase in the nation’s labor force. U.S. jobless claims generally reflect how many people lose their jobs which means that the U.S. should be able to add jobs at a faster clip even if companies hire at a rate no faster than last year. However, this number falls well short of what’s needed to put millions of Americans back to work and drive down unemployment. The Labor Department reported continuing claims increased by 88,000 to a seasonally adjusted 3.55 million in the week ended January 14 - continuing claims are reported with a one-week lag. Nearly 7.64 million people received some type of state or federal benefit in the week ended January 7, down 188,612 from the prior week with total claims reported with a two-week lag.

US stock market, economy and companies update (January 27, 2012)

The DJIA and S&P500 are in the red this morning following the GDP data out this morning. US GDP grew 2.8% in Q4, a sharp acceleration from the 1.8% in Q3 and the quickest pace since the second quarter of 2010, although this rate was still less than expected. Inventory builds helped sustain growth, although lower Federal expenditures held back the measure. In Europe, no deal has emerged between Greece and its private creditors, only increasing the skittishness of investors. Both EU Commissioner Rehn and the Greek government insisted a deal is very close, however this is the same line that has been reiterated all week long. Treasury markets are flat on day consolidating the move high since the release of the FOMC statement. The US 10-year yield remains below 1.95%.

European stock market, economy and companies update (January 27, 2012)

European equity indices opened the session lower, but have since pared losses on renewed hopes that a Greek debt agreement might be reached in the next few days. European banks are currently trading mixed, with French banks underperforming. Greek banks have risen by over 10%, amid the ongoing talks between Greece's government and its private sector creditors. Additionally, a Greek press report said that the Troika officials were said to have lowered their capital demands for Greek banks.

US stock market daily report (January 26, 2012, Thursday)

U.S. Labor Department reported new applications for unemployment benefits rose sharply last week, but initials claims remain at a level usually associated with a modest improvement in U.S. hiring trends. U.S. jobless claims climbed by 21,000 to a seasonally adjusted 377,000 in the week ended January 21 and jobless claims from two weeks ago were revised up by 4,000. The number of jobless claims frequently gyrate during January despite government efforts to adjust for seasonal factors owing to the end of temporary jobs created during the holiday season. For the first week of January, jobless claims totaled 402,000 and sank to 356,000 two weeks ago before bouncing back up again last week with the average of four-week claims fell slightly, down 2,500 to 377,500. The monthly average jobless claims has shown little change over the past six weeks, but recent levels suggest a declining number of layoffs in broader economy. The current pace of hiring, approximately 150,000 jobs a month, is barely able to absorb the natural increase in the nation’s labor force. U.S. jobless claims generally reflect how many people lose their jobs which means that the U.S. should be able to add jobs at a faster clip even if companies hire at a rate no faster than last year. However, this number falls well short of what’s needed to put millions of Americans back to work and drive down unemployment.

US stock market, economy and companies update (January 26, 2012)

The FOMC decision and Chairman Bernanke's comments are on every market participant's mind this morning. With the extended period stretched out even further (now to late 2014), the prospect of more easy money helped send global equity markets higher through yesterday's session and into early US trading this morning. Hopeful news that Greece and its creditors were possibly close to a deal (after weeks of on-again, off-again negotiations) sent European indices even higher. The dollar has softened up somewhat thanks to the Fed, and commodity prices, metals in particular, have surged since yesterday's statement. Gold his climbed back above $1725 rally some $70 since statement.

European stock market, economy and companies update (January 26, 2012)

European equity indices opened the session higher, as the US Fed disclosed that 11 out of 17 of its members saw the FOMC raising the Fed funds rate in 2014 or later. Ahead of the Fed meeting, there were expectations in the market that the Fed would not raise rates until at least mid-2014. Since the open, indices have continued to gain on renewed optimism related to the Greece private sector involvement talks, after a Greek press report, without citing sources, said Greece's private lenders were said to be willing to accept a coupon rate of below 4% on new Greek bonds.

US stock market daily report (January 25, 2012, Wednesday)

Federal Open Market Committee text released today: “Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth. While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but growth in business fixed investment has slowed, and the housing sector remains depressed. Inflation has been subdued in recent months, and longer-term inflation expectations have remained stable. Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects economic growth over coming quarters to be modest and consequently anticipates that the unemployment rate will decline only gradually toward levels that the Committee judges to be consistent with its dual mandate. Strains in global financial markets continue to pose significant downside risks to the economic outlook. The Committee also anticipates that over coming quarters, inflation will run at levels at or below those consistent with the Committee’s dual mandate. To support a stronger economic recovery and to help ensure that inflation, over time, is at levels consistent with the dual mandate, the Committee expects to maintain a highly accommodative stance for monetary policy. In particular, the Committee decided today to keep the target range for the federal funds rate at 0 to 0.25% and currently anticipates that economic conditions--including low rates of resource utilization and a subdued outlook for inflation over the medium run--are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014.

US stock market, economy and companies update (January 25, 2012)

Apple's stunning results are helping the Nasdaq stay in the black this morning, but all-in-all market sentiment is not especially good. The FOMC will likely keep rates on hold later today, with little in the way of party favors or even language changes expected. In Europe, there are spreading fears that Greece's negotiations with its private creditors could fail, setting up a bad outcome for the euro zone. In the US, the December pending home sales data contrasted with some more upbeat recent reports, with the index up less than last year and down a few percent from November. The NAR put things in perspective, saying that even given the modest decline, the preceding two months of contract activity were the highest in the past four years, outside of the homebuyer tax credit period.

European stock market, economy and companies update (January 25, 2012)

European equity indices opened the session higher, but have since pared gains amid another batch of disappointing corporate earnings, rise in peripheral bond yields (notably Portugal), continued concerns related to the Greek debt talks and caution ahead of the US Fed's interest rate decision due later today. Also, declines in shares of most financials are weighing on the European indices. The weakness in financials is being led by French and UK banks. Equities in Switzerland have underperformed, following earnings reports from Novartis and Lonza.

US stock market daily report (January 24, 2012, Tuesday)

On Wednesday, after months of preparation, the Federal Reserve will reveal its own facelift that has economists sitting on the edge of their seats, awaiting the Fed forecast. For the first time in history, Fed officials will release forecasts for their best guess for the path of short-term rates for coming years. Additionally, the Fed will provide the likely time of the first rate hike and will also disclose qualitative assessments for the role of the balance sheet ahead. The change is world changing for a central bank that a decade ago wouldn’t even disclose when it had decided to move these rates. The Fed could also release a statement of longer-run goals and policy strategy, which could potentially include an explicit long-run inflation target. Federal Reserve Board Chairman Ben Bernanke and team want to calm down both doves and hawks as well as, show that the Fed will be careful and cautious as more signs of recovery emerge. Former Fed Vice Chairman Donald Kohn said he was not yet ready to declare the economy was out of the woods but added, “Things are a little bit better, but I am very cautious.”

US stock market, economy and companies update (January 24, 2012)

European equity markets were pressured by questions on the viability of Greece's ongoing negotiations with its private creditors, which has also kept US indices in the red for most of the US session. Greek Finance Minister Venizelos was said to have receive 'green light' from the Eurogroup to close the deal with private creditors, although reports suggest that it may be a few days before that happens, adding to uncertainty. Also this morning, the IMF confirmed its lower 2012 global GDP forecast (+3.3% v 4.0% prior), warning that the European situation could derail the global economic recovery. Earnings out of major US blue chip firms were mixed, keeping a lid on sentiment. Oil prices are lower pushing March WTI below $99. US Treasury markets saw some early buying but yields have moved up on the day as equities have pared losses into the European close.

European stock market, economy and companies update (January 24, 2012)

European equity indices opened the session lower, led by weakness in Spanish and German equities. The equity weakness comes amid the lingering Greek private sector involvement (PSI) talks and disappointing corporate earnings. Banking names opened the session lower following yesterday's sharp gains, led by declines in French banks after S&P downgraded SocGen [GLE.FR] and Credit Agricole [ACA.FR]. UK-listed miners including are declining, amid the weakness in commodity prices.

US stock market daily report (January 23, 2012, Monday)

U.S. Energy Information Administration officials have cut their natural gas resource estimates, reporting that there is far less gas in a region known as the Marcellus Shale than previously thought. The EIA say the U.S. will continue to produce more natural gas than it needs in coming years and will likely become a net exporter of natural gas by 2021. EIA officials said it's changing its shale gas estimates amid rampant drilling in the Marcellus Shale and that the heightened activity shed light on available resources. The EIA said it estimates there are nearly 480 trillion cubic feet of shale gas in the U.S., down from earlier estimates of 830 trillion cubic feet. The bulk of the downward revision was the result of changing expectations for the Marcellus, which stretches across Pennsylvania and New York. EIA says it estimates there are nearly141 trillion cubic feet in the shale, down from 410 trillion cubic feet projected in 2011.

US stock market, economy and companies update (January 23, 2012)

Positive sentiment is spurred modest early equity gains this morning amid reports that Greece is close to reaching a deal with its private creditors for debt swaps. However, US markets have slipped back to unchanged while European bourses hold on to gains as the close approaches. European finance ministers are discussing the situation (as well as other debt crisis concerns) at a meeting in Brussels today and tomorrow. IMF Chief Lagarde made headlines earlier this morning after warnings attendees that euro zone growth is slowing sharply and suggesting that more central bank easing is needed. Lagarde raised eyebrows after warning that the global economy could be in danger of sliding into a "1930s moment."

European stock market, economy and companies update (January 23, 2012)

European equity indices opened the session mostly lower and are currently trading mixed, amid the lower government bond yields being seen in most European markets. Overall equity markets continue to focus on the talks related to private sector involvement (PSI) in the bailout of Greece. So far on the session, Italy's FTSE MIB has outperformed on gains in the banking sector, while the DAX has underperformed amid losses in shares of Bayer. European banks are mostly higher, despite the rise being seen in the Markit iTraxx Financial index, which is implying higher credit risk on the session for financial.

US stock market daily report (January 20, 2012, Friday)

Standard & Poor's 'weakest links' are companies that have credit ratings of B-minus and lower, and with either negative outlooks or ratings on credit watch for possible downgrade. Standard & Poor's said the number of what are known as 'weakest links' has dropped significantly from a record high in the first half of 2009. At the beginning of 2011, the number of 'weakest links' was 107 - of which 19 defaulted in 2011 - down from 309 entities during a peak in March 2009 with 52 remaining 'weakest links' as of December 31 and five have improved their credit ratings. S&P said historically, once a company becomes a 'weakest link', it is much more likely to default than the rest of the speculative-grade segment, with 'weakest links' accounting for 41 of the 53 defaults during 2011. During 2010, 'weakest links' made up 59 of the 70 defaulters in 2010, with 218 of the 237 defaulters in 2009. As of December 31, S&P said there were 129 companies it designated as 'weakest links'.

US stock market, economy and companies update (January 20, 2011)

US equity markets are cautious this morning, struggling to overcome headwinds that include some flawed quarterly reports. The Nasdaq is in the red, weighed down by results from Google, while IBM's positive result is helping the DJIA overcome GE's issues. There were no surprises in the December existing home sales report as the gradual positive trend continues. The dip in mortgage applications at the end of 2011 raises the possibility that the rebound could pause in January.

European stock market, economy and companies update (January 20, 2012)

European shares dipped during the session, presumably on profit taking, after a week of solid gains which culminated in a 5-month high on Thursday. US initial jobless claims fell to a 4-year low while in Europe, Greece is continuing its talks with private investors. Peripheral bond auctions were also successful despite recent sovereign downgrades. In individual names, Vodafone [VOD.UK] rose up to 1.8% after Indian Supreme court ruled it had no jurisdiction to tax Vodafone's 2007 acquisition of Hutchison Essar on its territory. Furthermore, it directed the government to return the money with a 4% interest and pay back Vodafone's deposit of INR25B.