Capital Markets by pengxiang


									                                     Capital Markets
                                                                      Issue 305

                                                      Thursday 10 September 2009

 Major Indices
 Foreign                      Last                 Ch                 YtD
                                                                                                MARKET WRAP UP
                                                                                                US equity markets gained on Wednesday after the Fed’s latest Beige Book reported
 Dow Jones                9547.22                                   8.78%
                                                                                                improvements in the manufacturing sector and that economic activity sustained its stability in
 Nasdaq                   2060.39               1.11%              30.65%
                                                                                                July and August. The Down Jones Industrial Average index advanced 0.69% to end the session
 S&P500                  1033.37                0.78%              14.41%
                                                                                                at 9,562, lifted by Boeing after positive news that the company will return to growth next year.
 Nikkei 225              10484.90               1.87%              18.35%                       The S&P500 rose for the fourth consecutive session by 0.8% to 1,033. The Nasdaq outperformed
 DJ stoxx50               2432.54               0.83%              17.77%                       the other indices increasing by 1.11%, led by Ebay Inc shares. In Europe, banks shares were
                                                                                                among the best performers, with Commerzbank climbing around 12%. This led the DJ Stoxx50
 Arab*                        Last                 Ch                 YtD                       to close 0.83% higher at 2,432 points. In Asia, the Kospi index gained 1.4% on Thursday driven
 BSI                       1394.92               0.88%             18.39%                       by shipping companies’ stocks, while the Nikkei 225 jumped 1.87% to 10,484 points.
 TASI                      5712.95              -0.73%             18.95%
 DFMGI                     2010.60               0.73%             22.88%
                                                                                                TOP STORIES
 CASE30                    6655.51              -0.10%             44.80%                       Texas Instruments Shares Rise, U.S. Trade Gap Little Changed
 KWSE                      7783.10              -0.16%              0.01%                       Chip maker Texas Instruments is raising its profit outlook for the third quarter. The company now
                                                                                                expects earnings per share between $0.37 and $.041 in the three months to September 30, up
 ASE                       2624.82                                 -4.84%
                                                                                                from a range of $0.29 and $0.39 that it expected in July. The company also raised its revenue
                                                                                                outlook for the quarter to between $2.73 billion and $2.87 billion. It had earlier seen sales
 Major Currencies**                                                                             between $2.50 billion and $2.80 billion. The U.S. trade deficit was probably little changed in July
                           Last             Previous               Change                       as imports and exports both grew, signaling a revival of commerce as the global recession
                                                                                                eased. The gap between imports and exports increased 1.1 percent to $27.3 billion. Rising oil
 EUR/USD                 1.4569               1.4486                0.57%                       prices also added to the cost of imports. With economists predicting the U.S. economy will grow
 GBP/USD                 1.6546               1.6488                0.35%                       at an average rate of 2.1% in the second half of this year, imports will probably climb further.
 USD/JPY                  92.00                92.29                -0.31%
                                                                                                UK Plans to Maintain its £175B Stimulus Plan
                                                                                                The Bank of England will likely maintain the $290M economic stimulus plan as the UK lags
 Major Commodities Futures**                                                                    behind the recovery of the global economy. Central bank governor, Mervyn King, will pursue the
                               Last           Previous              Change                      bank’s quantitative easing strategy by purchasing corporate debt to inject money into the
                                                                                                economy. The bank will also maintain its 0.5% benchmark interest rate. The Organization for
 Oil /barrel $                71.64              71.33               0.43%                      Economic Cooperation & Development(OECD) announced that the UK economy will contract by
 Gold /ounce $                991.1              995.8               -0.48%                     4.7% this year from the earlier forecast of 4.3%. In other European continent news, Russia’s
                                                                                                rubble will not be devalued, as its current average of 38 against a basket of euros and dollars, is
 Interbank Rates                                                                                seen as adequate. Faced with a 10.9% output slump, some have argued for a weaker rubble to
                                       Last                     Previous                        support exports. Russia is the world’s largest energy exporter, with oil and natural gas
                                                                                                accounting for 69% of its exports. In company news, Opel’s labor union leader has declared that
 LIBOR $1M                           0.25%                        0.25%
                                                                                                the company has no future prospects staying under the arm of GM hinting that the deal to
 LIBOR $3M                           0.30%                        0.30%
                                                                                                acquire Opel is nearing.
 EURIBOR1M                           0.46%                        0.46%
 EURIBOR3M                           0.78%                        0.79%                         Suntory in Talks to Acquire Orangina. and Gelely Target Volvo.
                                                                                                Japanese brewer Suntory Holdings is in talks to buy Orangina, known for its orange juice soft
                                                                                                drinks whose sales have reached Euro 1B in 2008, from Lion capital and Blackstone Group that
 US Benchmark Rates                                                                             originally bought it in February 2006 from Cadburry Schweppes for $2.2B. The buyout is an
                                     Last                    Change bps                         attempt for Suntory Holdings, who is also in talks to merge with Kirin Holdings, to expand
                                                                                                overseas and reach out to a younger population after a 15% drop in its market share. In other
 1Y                                 0.40%                           -1
                                                                                                news, Geely Holding Group co., is planning to buy the Volvo unit from Ford Motor co. as Beijing
 2Y                                 0.93%                            0
                                                                                                Automotive Industry Holdings co. plans to participate in a bid to acquire General Motor Co’s
 5Y                                 2.38%                            0
                                                                                                Saab unit. Both are tapping into the US and European markets. Finally, China State Construction
 10 Y                               3.48%                            1                          Engineering corp. has made a $1.7B deal with casino builder, Revel Entertainment, to build a
 30 Y                               4.33%                            2                          79000 square meters resort in Atlantic City, which will be completed in July 2011.
                                                                                                Saudi SEC Approves $2.04B in New Projects
 Economic Watch List                                            Expected                        GCC markets witnessed a mixed performance yesterday with both Dubai and Abu Dhabi gaining
FR Industrial output mm, Jul                                         0.7%                       a respective of 0.73% and 1.38%, while both Saudi Arabia and Doha retreating by 0.73% and
                                                                                                1.34% respectively. Dana Gas and Crescent Petroleum, two U.A.E.-based oil and gas firms, had
IT GDP final yy Q2                                                 -6.00%                       reached an agreement with Yemen's government to investigate bringing their Gas City concept
GB BoE rate decision, Sep                                           0.50%                       to the country. The two companies will carry out an analysis with the Yemeni government to
US International trade mm $, Jul                                   -27.35b                      establish a viable feedstock profile and finalize the optimal location for the new gas-based
                                                                                                industrial city processing industries in tandem with clustered, high employment industries
US jobless contin claims w/e                                       6.200m                       supported by a commercial services sector. Worth noting that Saudi Electricity (SEC), said that
CA Trade balance C$, Jul                                            0.10b                       its board agreed to award $2.04B worth of new power generation and transmission projects, in
CA BoC rate decision , 8yr                                          0.25%                       addition to the already $21.3B invested.

 *BSI: BLOM stock index         ;        AMFCI: Arab Monetary fund composite index     ;     TASI: KSA index       ;               DFMGI: Dubai index             ;    CASE30: Egypt index         ;             KWSE: Kuwait index            ;    ASE: Jordan Index
  ** From Open To Open                                                     *** US: United States  ;    EZ: Euro Zone               ;  UK: United Kingdom          ;    DE: Germany ;       JP: Japan

 Disclaimer: This report is published for information purposes only. The information herein has been compiled from, or based upon sources we believe to be reliable, but we do not guarantee or accept responsibility for its completeness or accuracy. This document should not be
 construed as a solicitation to take part in any investment, or as constituting any representation or warranty on our part. The consequences of any action taken on the basis of information contained herein are solely the responsibility of the recipient.

  Economic Research Department
  T 01 747812/02   F 01 717414

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