New Zealand dollars hits 15 month low

The New Zealand dollar touched a 15-month low Monday after data showed that the country's central bank sold large amounts of the currency in August, increasing expectations of further intervention.

The Reserve Bank of New Zealand sold a net 521 million New Zealand dollars (US$406.4 million) in August--the most since July 2007 and significantly more than the NZ$2 million it sold in July this year, data released by the central bank showed.

The currency fell sharply after the data's release, touching US$0.7708--its weakest since late June 2013--from around US$0.7828 just prior to the release.

The central bank "put its money where its mouth is" by selling the currency, ASB Chief Economist Nick Tuffley said. "We don't rule out further tactical actions from the RBNZ to keep downward pressure on the New Zealand dollar."

The RBNZ has said on several occasions that the New Zealand dollar, known as the kiwi, was unjustifiably strong even given the country's relatively strong economy. Market participants have interpreted the statements as indications that the central bank was prepared to intervene to weaken the kiwi.

Prime Minister John Key, a former currency trader, earlier said he supported the central bank intervening in the market, suggesting the New Zealand dollar should be around US$0.6500.

The kiwi's strength is largely the result of a relatively strong economy that has outperformed those of most other developed nations since the global financial crisis. The South Pacific nation, with a population of just 4.5 million, has benefited from booming Asian demand for its meat and dairy exports, and the pace of its economic growth is now at a 10-year high.

New Zealand is also among the few countries to have begun a cycle of interest-rate increases--four so far this year--helping fuel demand for the Kiwi.

Still, cracks are starting to show in the economy. Among the biggest concerns is a sharp decline in prices of dairy, the country's largest export sector.

Theo Spierings, chief executive at dairy giant Fonterra Co-Operative Group, said any fall in the New Zealand currency was going to help exporters.

Source: marketwatch.com

Asia Stocks Fall Led by Hong Kong

Asian stocks dropped, led by losses in Hong Kong amid pro-democracy protests in the city. The dollar extended gains and Standard & Poor’s 500 Index futures retreated as U.S. economic data bolstered the outlook for higher interest rates.

The Hang Seng Index lost 1.9 percent by 1:41 p.m. in Tokyo, erasing its gain for the year and dragging the MSCI Asia Pacific Index toward a 0.7 percent decline. The Hong Kong dollar and Chinese yuan weakened as the Bloomberg Dollar Spot Index added 0.1 percent, climbing a seventh day. New Zealand’s currency is poised for its biggest three-day drop in three years. Oil in New York slipped 0.6 percent. S&P 500 futures fell 0.3 percent. Asian bond risk rose to a one-month high.

Hong Kong’s benchmark index tumbled as much as 2.5 percent after police used tear gas to disperse protesters ahead of national holidays this week that will close the city’s markets on Oct. 1 and Oct. 2. The U.S. economy grew at the fastest pace since 2011 in the second quarter, fueling speculation over Federal Reserve rate increases. Pacific Investment Management Co., whose co-founder Bill Gross departed last week, said it sees slower growth in China and downside risks in Australia.

“It’s going to spook some investors who are worried that this could drag out, affecting the business climate in Hong Kong,” Vasu Menon, vice president of wealth management at Oversea-Chinese Banking Corp., said on Bloomberg TV from Singapore. “It’s happening at a time when the U.S. Federal Reserve is talking about tightening monetary policy, a time when China is slowing down.”

Profit Drop

All 50 stocks on the Hang Seng Index fell today, while a gauge of Chinese shares in the city retreated 1.8 percent in a third day of decline. Profits at industrial companies in China declined last month for the first time in two years, data at the weekend showed, as a slowdown in the world’s second-largest economy deepens.

The Shanghai Composite Index pared a gain of as much as 0.7 percent. The Hang Seng China AH Premium index, which measures the weighted-average price difference between dual-listed shares in the mainland versus Hong Kong, rose through the 100 level that shows the gap being erased. Mainland Chinese trading venues close for five days from Wednesday.

The Hong Kong dollar, which is allowed to trade within a tight band versus the U.S. currency, slipped for a sixth day and is at its weakest level since March. The city’s one-year interest-rate swap rose three basis points, the most in 15 months, to 0.485 percent.

Source: bloomberg.com

Rumors that circulates over the weekend!

Starboard Urges Yahoo! to Acquire AOL

The Activist Letter:
Shares of Yahoo! Inc. (NASDAQ: YHOO) and AOL Inc. (NYSE: AOL) surged higher Friday, as Starboard Value LP announced it has acquired a significant stake in Yahoo! and that it delivered a letter to CEO Marissa Mayer. The letter mentioned potential opportunities to unlock shareholder value.

These opportunities include: Unlocking the substantial value from Yahoo's non-core minority equity stakes in Alibaba Group Holding Limited (NYSE: BABA) and Yahoo Japan in a structure that delivers value directly to Yahoo shareholders in a tax-efficient manner, reducing expenses throughout the company, halting Yahoo's aggressive acquisition strategy and exploring a strategic combination with AOL.

Yahoo acknowledged receipt of the letter from Starboard, and said it will continue to maintain an open dialogue with all shareholders. CEO Mayer said the company will "review Starboard's letter carefully and look forward to discussing it with them.”

Yahoo shares closed Friday at $40.66, a gain of more than 4%, while AOL shares gained about 3.5%, to close at $44.56.

Report of Softbank $32.00/Share Bid for Dreamworks Animation

The Rumor:
SoftBank Corp. (OTC: SFTBY) is in talks to acquire DreamWorks Animation SKG Inc. (NASDAQ: DWA), according to The Hollywood Reporter and reported later by WSJ on Saturday.

SoftBank reportedly has offered $32 per share, for the company headed by CEO Jeffrey Katzenberg, according to sources, valuing DWA at $3.4 billion. Spokespersons for both companies declined comment.

DreamWorks Animation closed at $22.36 on Friday, a gain of $0.13.

Alibaba Pays $459M for Stake in Beijing Shiji Information Technology Co

The Stake:
Alibaba Group Holding Ltd (NYSE: BABA) has acquired a 15% stake in Beijing Shiji Information Technology, a company provides IT consulting services to hotels and sells room reservation software, for $458.66 million. It is Alibaba's first large deal since its $25 billion IPO.

Alibaba closed Friday at $90.46, a gain of $1.54.

Daiichi Sankyo to Acquire Ambit Biosciences for $15/Share in Cash

The Deal:
Daiichi Sankyo Company, Ltd. (OTC: DSNKY) and Ambit Biosciences (NASDAQ: AMBI), announced Sunday that Daiichi Sankyo will acquire all of the outstanding common stock of Ambit Biosciences for $15 per share in cash, or approximately $315 million on a fully diluted basis. through a tender offer followed by a merger with a subsidiary of Daiichi Sankyo. Additionally, each Ambit Biosciences stockholder will receive one Contingent Value Right (CVR), entitling the holder to receive an additional cash payment of up to $4.50 for each share they own if certain commercialization related milestones are achieved. That values the total transaction at up to $410 million.

The deal is expected to close following receipt of HSR clearance and the close of the tender period.

Ambit Biosciences Friday at $8.20, a loss of $0.14.

Source: benzinga.com

Gold Heads for First Weekly Increase this Month as Stocks Drop

Gold headed for the first weekly advance this month as a retreat in global equities and tensions in the Middle East boosted demand for a protection of wealth, countering expectations for higher U.S. borrowing costs.

Bullion for immediate delivery rose 0.4 percent to $1,226.90 an ounce at 9:46 a.m. in Singapore, extending yesterday’s 0.4 percent advance, according to Bloomberg generic pricing. The metal is 0.9 percent higher this week, rebounding from a drop on Sept. 22 to $1,208.40, the lowest since Jan. 2

Gold remains on course for the first quarterly loss this year as the Bloomberg Dollar Spot Index climbed to a four-year high. A report today may show the U.S. economy grew more than previously estimated after data yesterday showed jobless claims rose less than forecast. Saudi Arabia, Jordan, Bahrain, Qatar and the United Arab Emirates joined the first wave of U.S.-led airstrikes against Islamic State militants in Syria this week.

“Gold has been helped by geopolitics and weaker equity markets,” Zhu Runyu, an analyst at CITICS Futures Co., a unit of China’s biggest listed brokerage, wrote in an e-mail today. “The longer-term downtrend remains intact as the U.S. economy and hence the dollar strengthens.”

Asian stocks fell after the Standard & Poor’s 500 Index dropped the most in almost two months. The MSCI All-Country World Index is heading for the biggest monthly loss since January amid concern that Chinese growth is slowing and the Federal Reserve may increase U.S. interest rates sooner than some investors expect.

SPDR Holdings

Gold for December delivery rose 0.5 percent to $1,227.70 an ounce on the Comex in New York, extending yesterday’s 0.2 percent climb. Holdings in the SPDR Gold Trust, the biggest gold-backed exchange-traded product, were unchanged for a second day yesterday after dropping to 773.45 metric tons on Sept. 23, the least since December 2008.

Silver for immediate delivery rose 0.8 percent to $17.6679 an ounce, halting two days of declines and paring a fourth weekly retreat. Prices dropped to $17.3491 on Sept. 22, the lowest level since July 2010.

Spot platinum climbed 0.5 percent to $1,320.69 an ounce, after falling yesterday to $1,300.38, the lowest since June 2013. Palladium increased 0.3 percent to $804.26 an ounce after dropping to $795.33 yesterday, the lowest since April. Both metals are also set for a fourth week of losses.

Source: bloomberg.com

Asian shares shudder under Wall Street Shadow

Asian shares got off to a rocky start on Friday after a sharp drop on Wall Street, which curbed enthusiasm for the dollar even after the U.S. unit touched multi-year highs in the previous session.

U.S. stocks ended sharply lower, as Apple Inc broke under key technical levels after the tech giant withdrew an update to its new operating system. That pushed the S&P 500 to its biggest one-day decline since July.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3 percent in early trade, poised for a weekly loss over 2 percent.

Japan's Nikkei stock average skidded 1.6 percent, on track to shed more than 1 percent for the week, as a stronger yen exacerbated the risk-averse mood.

Data released before the market opened showed Japan's annual core consumer inflation eased in August, in another sign that the Bank of Japan could be forced into additional easing steps to meet its 2 percent price goal sometime next fiscal year.

The dollar index, which tracks the greenback against a basket of major currencies, edged down about 0.1 percent to 85.115, after it rose to a four-year high of 85.485 on Thursday. The dollar is on track for its 11th successive weekly rise, something it has not achieved in four decades.

"The dollar index strengthened to a new post-2010 high, although it gave back some of its gains amid a tech-driven sell-off in U.S. equities," strategists at Barclays wrote in a note to clients.

The yield difference between 10-year U.S. Treasuries and German Bunds widened the most in nearly 15 years on Thursday, putting pressure on the euro.

The European unit edged up about 0.1 percent to $1.2759, after falling as low as $1.26955 on trading platform EBS on Thursday, its lowest since November 2012.

The dollar was about 0.2 percent lower on the day against its Japanese counterpart at 108.56 yen, pulling away from last week's six-year peak of 109.46.

Oil edged higher after the strong dollar weighed on it overnight, with Brent slightly higher at $97.01 a barrel.

Spot gold was steady on the day at $1,223.90 an ounce, after rebounding off Thursday's session low of $1,206.85 an ounce, its weakest since Jan. 2.

Source: yahoo.com

Tokyo Stock Down

Tokyo Stocks open down 1.75%

Tokyo stocks opened 1.75 percent lower on Friday after sell-offs on Wall Street and the dollar's fall against the yen.

The key Nikkei 225 index at the Tokyo Stock Exchange, which closed at a seven-year high on Thursday, lost 286.19 points to 16,087.95 at the start.

US stocks sank Thursday led by Apple's 3.8 percent drop, amid a combination of worries over heady valuations and quarter-end profit taking.

The Dow Jones Industrial Average finished down 1.54 percent while the broad-based S&P 500 lost 1.62 percent.

The tech-rich Nasdaq Composite tumbled 1.94 percent as Apple's embarrassing problems with its new operating system and criticisms that its new iPhones are too easily bent sparked its fall.

The ollar was at 108.56 yen in early Friday trade, down from 108.73 yen in New York Thursday afternoon and above 109 yen in Tokyo earlier Thursday.

A strong yen is a negative for Japanese exporters as it erodes profits when repatriated.

The euro bought $1.2758 and 138.49 yen against $1.2750 and 138.62 yen in US trade.

Currency rates hardly moved after Japanese data showed the nation's consumer inflation rose a slower-than-expected 3.1 percent year-on-year in August.

Source: yahoo.com

Dollar Near Four Year High

US Growth Supports Fed Prospect and because of that Dollar Near Four-Year High!

A gauge of the dollar against 10 major counterparts was near the highest in four years as an improving US growth outlook adds to expectations the Federal Reserve is moving toward raising borrowing costs next year.

The US currency has risen versus all of its 16 most traded peers this month as the Fed stays on track to end its bond-buying program, known as quantitative easing, in October. The yen headed for its first weekly gain since the start of August as the US expanded its bombing of Islamic State militants from Iraq to neighboring Syria, spurring demand for the Japanese currency as a haven.

"The strong dollar trend across the board is continuing," said the trader at Union Bank NA in Los Angeles. "The Fed is on track to end QE in October and is likely to raise rates by middle of next year as planned, while we haven't seen much improvement in other nations."

The Bloomberg Dollar Spot Index, which tracks the US currency against 10 major peers, was little changed at 1,061.60 as of 8:41 am in Tokyo after rising to 1,062.75 yesterday, the highest close since June 2010.

 The dollar bought 108.53 yen from 108.75, after reaching 109.46 on Sept. 19, a level not seen since August 2008. The yen has gained 0.5 percent against the greenback this week. The US currency was little changed at $1.2757 per euro after gaining to $1.2697 yesterday, the strongest since November 2012.

The US gross domestic product grew an annualized 4.6 percent in the second quarter, more than the previous estimate of 4.2 percent released Aug. 28, according to a Bloomberg survey of analysts before today's Commerce Department report. The Thompson Reuters/University of Michigan final consumer sentiment index rose to 84.8 this month, the highest in more than a year, a separate Bloomberg survey projected.

Source: bloomberg.com

Japan Stocks Open higher after strong US lead

Japan stocks advanced Thursday morning after an overnight rally in U.S. markets, with the Nikkei Average NIK, +1.10% up 1%. The broader Topix I0000, +0.00% rose 0.8%, while the yen USDJPY, +0.15% fell to ¥109.26 against the dollar, compared with ¥109.19 a day ago.

Auto makers benefited from the weaker yen, as Mazda Motor Corp. JP:N7261 headed up 1.9%, Toyota Motor Corp. 7203, +1.68% improved by 1%, Honda Motor Co., Ltd. 7267, +0.42% tacked on 0.8%, and Nissan Motor Co., Ltd. 7201, +1.02% zoomed 0.7% higher.

Tech exporters were also well bid, with top winners including industrial-robot manufacturer Fanuc Corp. 6954, +0.85% , gaining 1.6%, electronics giant Panasonic Corporation 6752, +0.96% rising 1.2%, console maker Nintendo Co., Ltd. 7974, +1.54% adding 1%, camera maker Olympus Corp. 7733, +1.13% up 0.9%, and semiconductor firm Renesas Electronics Corporation 6723, +0.86% higher by 0.6%.

Meanwhile, Internet and telecom conglomerate SoftBank Corp. 9984, +1.28% snagged a 1.4% gain.

Source: marketwatch.com

Dollar Resumes Advance

Asia cheered by Wall Street rebound, dollar resumes advance

Asian stocks rose early on Thursday, cheered by a sizeable overnight rebound on Wall Street, while the dollar resumed its advance after upbeat economic data undercut safe-haven bids and pushed yields higher.

MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.1 percent, pulling away from a four-month low touched the previous day when U.S.-led air strikes in Syria stoked geopolitical concerns.

Tokyo's Nikkei rose 1 percent, heartened as the yen resumed its weakening against the dollar.
Wall Street rebounded broadly overnight, buoyed by strong U.S. housing data and with dovish statements from a top Federal Reserve official also helping.

"Risk aversion was increasing across global equities this week, but once again it was the U.S. market that helped clear uncertainty," said Junichi Ishikawa, a market strategist at IG Securities in Tokyo.
The dollar, rejuvenated after benchmark U.S. Treasury yields rose for the first time in four days and as the euro slumped to fresh lows, edged closer to a six-year high versus the yen.

The dollar traded as high as 109.27 yen. A break above 109.46 would take the greenback to a high not seen since 2008.

The euro hovered close to a 14-month trough of 1.2774 struck overnight on poor German data and statements by European Central Bank President Mario Draghi monetary policy would be kept loose for an extended period.

The Australian dollar managed to bounce back towards 89 U.S. cents from a seven-month low of $0.8831 plumbed on Tuesday as risk appetite improved.

Reserve Bank of Australia Governor Glenn Stevens will give a brief speech at 0230 GMT that could potentially offer trading insights, but he is not scheduled to take questions.

For broader cues the financial markets are eyeing U.S. jobless claims and durable goods numbers due later in the day for potential impact on yields and currencies.

In a week filled with appearances by U.S. central bank officials, investors today await Atlanta Fed president Dennis Lochart's speech.

In commodities, Brent crude oil extended gains on escalating conflict in the Middle East and stronger-than-expected growth expectations for China helped lift the benchmark off a two-year low the previous day. Brent rose 4 cents to 96.99 a barrel.

Source: yahoo.com

Rumors on Wall Street

Yahoo Said to be Seeking Yelp Takeover

The Rumor:
Shares of Yelp, Inc. (NYSE: YELP) Spiked higher Wednesday, on renewed takeover chatter, with Yahoo (NASDAQ: YHOO) the rumored acquirer. Yahoo has been seen as a potential acquirer of Yelp, going back to a March 2013 note from Wunderilch's Blake Harper.

Spokespersons for Yelp and Yahoo were not available for comment.

Yelp shares closed Wednesday at $72.97, a gain of $1.24.

Starz Seeking Sale, Met with Fox

The Rumor:
Executives from Starz (NASDAQ: STRZA) and 31st Century Fox (NASDAQ: FOXA) met on Tuesday to discuss the potential acquisition of the premium cable movie service by Fox, according to the LA Times. Fox walked away from an attempt to acquire Time Warner (NYSE: TWX) in August, after the parent of HBO rejected an $85.00 per share offer.

According to a source, Fox does not have an interest in acquiring Starz.

Starz Industries shares closed Wednesday at $269.37, a gain of more than 5%.

Acorda Therapeutics to Acquire Civitas Therapeutics for $525M in Cash

The Deal:
Acorda Therapeutics, Inc. (Nasdaq: ACOR) announced Wednesday, that it will acquire privately-held Civitas Therapeutics for $525 million in cash. Acorda will obtain worldwide rights to CVT-301, a Phase 3 treatment candidate for OFF episodes of Parkinson's disease, and also includes rights to Civitas' proprietary ARCUSTM pulmonary delivery technology and manufacturing facility with commercial-scale capabilities in Chelsea, MA.

The deal is expected to close in Q2 of 2014.

Acorda Therapeutics shares closed Wednesday at $240.85, a gain of more than 2%.

Report of Potential Alibaba Interest in Expedia's China Holding

The Rumor:
Shares of Expedia (NASDAQ: EXPE) rose as high as $86.20 on Wednesday, on a report out of China, that Alibaba's (NYSE: BABA) Taobao Travel may have an interest in acquiring a stake in Chinese travel site eLong (NASDAQ: LONG), of which Expedia owns 65%. Spokespersons for Expedia and Alibaba did not respond to requests for comment.

Expedia closed Wednesday at $85.94, a gain of more than 2%. eLong shares rose 4.5% to close at $19.26.

Report Actavis in Early Talks with Salix

The Rumor:
CNBC's David Faber reported Wedneday, that Actavis plc (NYSE: ACT) was in early stage talks to acquire Salix Pharmaceuticals (NASDAQ: SLXP), according to sources. This follows a report on Tuesday that Allergan (NYSE: AGN) was also in talks with Salix, as part of an attempt to fight off a hostile takeover by Bill Ackman and Valeant Pharmaceuticals International, Inc. (NYSE: VRX).

Actavis closed Wednesday at $248.00, a gain of almost 3%. Salix Pharmaceuticals lost almost 1% to close at $167.52.

Report of GE Takeover Interest in SunEdison

The Rumor:
Shares of SunEdison (NYSE: SUNE) rose Wednesday, on a report that General Electric Company (NYSE: GE) was in talks to acquire the manufacturer of silicon wafers. SunEdison shares rose as high as $21.39 on the rumor.

Bloomberg later reported that a GE spokesperson denied the report was not true.

SunEdison closed Wednesday at $20.28, a gain of 5%.

PE Firms Said to have Interest in Tibco Acquisition

The Rumor:
Shares of Tibco Software Inc. (NASDAQ: TIBX) spiked higher Wednesday, on a report from Reuters that private equity firms Vista Equity Partners and Thoma Bravo are among companies seeking to acquire Tibco. The dollar amount of the prospective offers, if any, is not known.

Tibco announced on September 3, it had hired Goldman Sachs to assist it in exploring strategic alternatives. A note from Mizuho Securities on September 16, said the acquisition potential for Tibco was likely overstated.

Tibco Software closed Wednesday at $20.26, a gain of 6.5%.

Source: benzinga.com

Oil futures mixed ahead of EIA data

Crude-oil futures were mixed in Asian trade Wednesday with Brent crude still pressured by yesterday’s weak economic data from Europe, while U.S. oil markets await weekly stockpile reports.

On the New York Mercantile Exchange, light, sweet crude futures for delivery in November CLX4, +0.09%  traded at $91.67 a barrel at last check, up $0.11 in the Globex electronic session.

November Brent crude on London’s ICE Futures exchange LCOX4, -0.04%  fell $0.10 to $96.75 a barrel.

Relatively stronger economic data from the U.S. explains why the U.S. dollar BUXX, -0.17%  has been climbing in recent weeks, contributing to a risk-off trade flow across a broad range of commodities, analyst Tim Evans at Citi Futures said.

He said with the oil market already oversold, crude prices are unlikely to break down in a dramatic fashion, but the Brent crude contract for November delivery could continue to grind lower in line with its declining price trend.

Late Tuesday, the American Petroleum Institute — a trade group — said its data showed a 6.5-million-barrel drop in U.S. crude stocks in the week ended Sept. 19, while stocks of gasoline rose by 91,000 barrels and distillates rose by 3 million barrels.

The closely watched survey from the U.S. Energy Information Administration is due later Wednesday. Analysts expect U.S. oil inventories to have risen by 500,000 barrels.

Nymex reformulated gasoline blendstock for October RBV4, -0.33%  — the benchmark gasoline contract — fell 87 points to $2.6200 a gallon, while October diesel traded at $2.6750, 82 points lower.

Source: marketwatch.com

Stocks to Watch Out

Wall Street expects Paychex (NASDAQ: PAYX) to report its Q1 earnings at $0.46 per share on revenue of $662.62 million. Paychex shares gained 0.24% to $42.51 in after-hours trading.

Bed Bath & Beyond (NASDAQ: BBBY) reported stronger-than-expected second-quarter results and issued a forecast slightly ahead of the estimates. Bed Bath & Beyond shares surged 7.75% to $67.55 in the after-hours trading session.

Analysts expect KB Home (NYSE: KBH) to report its Q3 earnings at $0.40 per share on revenue of $646.76 million. KB Home shares gained 1.06% to $17.15 in after-hours trading.

AAR (NYSE: AIR) reported downbeat first-quarter results and lowered its FY14 outlook. AAR shares declined 3.54% to $27.01 in the after-hours trading session.

Analysts are expecting Accenture plc (NYSE: ACN) to have earned $1.10 per share on revenue of $7.62 billion in the fourth quarter. Accenture shares fell 0.06% to $79.55 in after-hours trading.

GrafTech International (NYSE: GTI) lowered its FY14 forecast and announced a new restructuring/cost savings. GrafTech shares tumbled 17.58% to $6.00 in the after-hours trading session.

Jabil Circuit (NYSE: JBL) is estimated to post its Q4 earnings at $0.00 per share on revenue of $3.83 billion. Jabil Circuit shares declined 0.10% to $20.85 in after-hours trading.

Source: benzinga.com

Asian Stocks drift after Wall Street slide

BANGKOK - Asian stock markets drifted Wednesday as the boost from stronger Chinese manufacturing was offset by grim economic news from Europe and airstrikes in Syria.

KEEPING SCORE: Japan's Nikkei 225 stock average was down 0.2 percent at 16,174.69 while Seoul's Kospi rose 0.1 percent to 2,029.94. Hong Kong's Hang shed 0.1 percent to 23,824.50 and Australia's S&P/ASX 200 dropped 0.9 percent to 5,368.30. China's Shanghai Composite was little changed at 2,309.91. Southeast Asia markets mostly rose.

THE QUOTE: "Geopolitical risk, which has been simmering in the background, is back to the fore" after the US and their Arab allies launched a series of air strikes into Islamic State positions at the Syrian-Iraqi border, potentially increasing instability in the region, said CMC analyst Desmond Chua. "Helping to limit losses in the equity markets, however, was the continual outperformance of economic indicators, with US manufacturing activity clocking a four-year high," he said. "Better-than-expected Chinese factory day also alleviated concerns that the second largest economy was facing a slowdown."

CHINA FACTORIES: China's manufacturing unexpectedly improved in September, according to a preliminary survey released Tuesday, though there were some mixed messages in the report. New orders and exports increased at a faster rate but employment fell. Overall, the report helped to ease jitters about a deeper slowdown in the world's No. 2 economy.

EUROPE STAGNATES: A closely watched gauge of business activity for the region fell to a nine-month low. Investors have been dealing with meager economic growth in Europe for months. The eurozone economy has been flat or barely growing since April, hobbled by the lingering effects of a debt crisis, uncertainty over a conflict in Ukraine and a lack of confidence among European consumers, businesses and banks. European market indexes sank after the economic news. Germany's DAX fell 1.6 percent, France's CAC 40 fell 1.9 percent and the U.K.'s FTSE 100 lost 1 percent.

SYRIA: Along with bad economic news, investors had geopolitical concerns to worry about. The U.S. and five Arab nations attacked the Islamic State group's headquarters in eastern Syria in nighttime raids Tuesday. U.S. aircraft as well as Tomahawk cruise missiles launched from Navy ships in the Red Sea and the northern Persian Gulf were used.

WALL STREET: The Dow slid 116.81 points, or 0.7 percent, to 17,055.87. The S&P 500 lost 11.52 points, or 0.6 percent, to 1,982.77 and the Nasdaq composite fell 19 points, or 0.4 percent, to 4,508.69. The Dow's triple-digit fall on Tuesday follows a 107-point stumble from the day before. The blue chip index hasn't posted two losses of 100 or more points since June. Still, the outlook in the U.S. is far more positive than Europe.

ENERGY: Benchmark U.S. crude was up 1 cent at $91.57 a barrel in electronic trading on the New York Mercantile Exchange.

CURRENCIES: The euro rose to $1.2855 from $1.2841 late Tuesday. The dollar dropped to 108.66 yen from 108.80 yen.

Source: yahoo.com

The Richest Person in China

The largest stock offer in history has made Jack Ma, founder of e-commerce giant Alibaba, China's richest person with a fortune of $25 billion, an annual wealth ranking in the world's second largest economy showed Tuesday.

"It has been an amazing year for China's best tycoons despite the jitters about the Chinese economy," said China-based luxury magazine publisher Hurun Report in its annual rich list.

Ma reaped more than $800 million selling shares in the company he set up 15 years ago as Alibaba listed on the New York Stock Exchange Friday, based on company filings, with the value of his remaining stake of 7.8 percent surging to more than $17 billion by Monday.

Last year, the estimated wealth of the former English teacher turned Internet entrepreneur was just over $4.0 billion, which did not even place him in the top 20.

Alibaba's listing raised a total of $25 billion.

But only one other Alibaba co-founder, now vice president of its China investment team Simon Xie, made the rich list, Hurun Report said.

Property tycoon Wang Jianlin, whose Wanda company bought US cinema chain AMC Entertainment, dropped to second place from first last year with a fortune of $24.2 billion as the deflating of China's real estate bubble chased most developers out of the top 10.

A new face, Li Hejun of renewable energy firm Hanergy, tied for third place with $20.8 billion, alongside beverage magnate Zong Qinghou of Wahaha.

Completing the top five was Pony Ma of Tencent, operator of China's most popular instant messaging application WeChat, with $18.1 billion.

Technology commanded half of the top 10. Robin Li of China's dominant search engine Baidu was sixth; Richard Liu of Alibaba competitor JD.com took ninth, and Lei Jun of upstart mobile phone producer Xiaomi was 10th.

Rounding out the top 10 were father and son team Yan Jiehe and Yan Hao of road-builder China Pacific Construction in seventh position and another real estate mogul, Yan Bin of Reignwood in eighth.

China's real estate and infrastructure industries have been hit by the slowing economy.
The economy grew an annual 7.7 percent in 2013, the same as in 2012 -- which was the slowest rate of expansion since 1999. Gross domestic product growth was 7.5 in the second quarter this year.
Still, Hurun Report said the number of US dollar billionaires in China hit 354 this year, up 39 from last year.

Source: yahoo.com

China stocks rebound on stronger manufacturing

Chinese stocks rebounded Tuesday on unexpectedly strong manufacturing but other Asian markets fell following Wall Street's tumble.

KEEPING SCORE: The Shanghai Composite Index gained 0.2 percent to 2,293.71 and Sydney's S&P/ASX 200 was up 0.4 percent at 5,382.70. Tokyo was closed for a holiday. Hong Kong's Hang Seng shed 0.3 percent to 23,891.66 and Seoul's Kospi shed 0.6 percent to 2,026.72. Benchmarks also fell in Taiwan, Indonesia, Philippines and New Zealand.

CHINESE MANUFACTURING: A preliminary version of HSBC's purchasing managers' index showed unexpectedly strong manufacturing in September, helping to ease fears of a sharper slowdown in the world's second-largest economy. The PMI rose to 50.5 from August's 50.2 on a 100-point scale on which numbers above 50 indicate expansion. That exceeded forecasts that called for a decline due to a slump in China's real estate market, a major driver of manufacturing activity.

THE QUOTE: "Growth in (Chinese) industry edged up somewhat in September, thus providing a modicum of comfort to policymakers and markets. Looking ahead, the short-term outlook for organic growth is modest but not alarming," said Louis Kuijs of Royal Bank of Scotland in a report.

WALL STREET: Stocks were dragged down by concern about Chinese growth and a slide in oil prices despite optimism about the overall U.S. growth outlook. The Standard & Poor's 500 dropped 0.8 percent to 1,994.29 for its biggest one-day decline since Aug. 5. The Dow Jones industrial average fell 0.6 percent and the Nasdaq composite dropped 1.1 percent.

EUROPE DATA: Germany, the continent's biggest economy, was expected to show an improvement in its purchasing managers' index after disappointing August figures. France reports quarterly economic growth that is expected to show a modest improvement over the previous quarter's flat performance. The French purchasing managers' index was expected to show improvement but still a contraction in manufacturing and services activity.

ENERGY: Benchmark U.S. crude was up 48 cents to $91.34 a barrel in electronic trading on the New York Mercantile Exchange.

CURRENCIES: The dollar declined to 108.73 yen from Monday's 108.77 yen. The euro rose to $1.2855 from $1.2850.

Source: yahoo.com

Gold Reserve Wins $740 Million

A World Bank arbitration court ruled that Venezuela must pay $740 million to Spokane, Washington-based Gold Reserve Inc. (GDRZF) for the 2008 expropriation of its Brisas gold project.

Payment of the award is due immediately and the company has commenced steps to ensure recognition and collection, Gold Reserve said yesterday in a statement.

“We feel vindicated by the tribunal’s clear conclusion that the Venezuelan government acted unlawfully,” Gold Reserve president Doug Belanger said in the statement. “There are well documented procedures in place for identifying and attaching sovereign commercial assets.”

Venezuela’s Former President Hugo Chavez nationalized assets in the country’s energy and mining industries to increase state control over the economy before he died from cancer in 2013. The nation is now involved in 28 unresolved cases filed at the World Bank’s International Centre for Settlement of Investment Disputes, or ICSID, by oil, mining and other industrial companies that operated in the country including Exxon Mobil Corp. (XOM) and ConocoPhillips.

The Gold Reserve judgment comes as Venezuela faces concern that a shortage of foreign currency could push it closer to defaulting on its international debt. Gold Reserve said on July 23 that it was seeking $2.1 billion for the nationalization of the gold and copper project.

Default Concerns

The South American country must honor ICSID rulings to avoid default of sovereign bonds, Joe Kogan, an analyst at the Bank of Nova Scotia, wrote in an Aug. 8 note to clients.

Venezuelan dollar debt suffered a selloff this month as Standard & Poor’s cut the country’s rating to CCC+ and predicted at least a 50 percent chance of non-payment in two years. Government notes now yield 15.7 percent on average, the most in developing nations.

The proposed sale of Citgo Petroleum Corp., a U.S. subsidiary of state oil company Petroleos de Venezuela SA, would be negative for both bondholders and international arbitration claimants, as it would reduce the government’s external vulnerabilities, Eurasia Group analyst Risa Grais-Targow said in a note on Sept. 10.

Venezuela’s Information Ministry did not immediately respond to an e-mail sent after business hours yesterday seeking comment on the Gold Reserve judgment.

Source: bloomberg.com

Dollar down after 10-week rally!

Euro gains capped

The dollar slipped in Asia Tuesday following a 10-week rally, while gains in the euro were capped by concerns about slackening European economic growth.

The greenback bought 108.74 yen in Singapore afternoon trade against 108.94 yen in New York late Monday. The euro rose to $1.2851 from $1.2850, while slipping to 139.72 yen from 139.78 yen.
Japanese financial markets are closed for a public holiday.

The dollar's upward momentum has taken a breather after last week hitting highs above 109 yen not seen since August 2008.

The gains came after the the Federal Reserve hinted that interest rates could rise further than expected when they are eventually hiked, probably in mid-2015.

Singapore's United Overseas Bank said the dollar was facing some selling in Asian trade after a "surprisingly weak set of US housing data" released on Monday.

The National Association of Realtors said existing-home sales in the US fell 1.8 percent in August, following four straight months of gains.

The euro saw an uptick in Asia after hitting 14-month lows a day earlier as traders digested a speech by European Central Bank chief Mario Draghi to the European Parliament.

Draghi dismissed market disappointment about demand from banks for a new lending programme launched last week, saying it was on track to pump more liquidity into the financial system but needed time to take full effect.

He noted that the eurozone recovery was sputtering but said the central bank would keep its accommodative monetary policy in place for some time.

The dollar rose against most Asia-Pacific currencies.

It climbed to Sg$1.2672 from Sg$1.2655 in Tokyo on Monday, to 11,978 Indonesian rupiah from 11,961 rupiah, to 60.89 Indian rupees from 60.77 rupees, and to 44.57 Philippine pesos from 44.42 pesos.

It rose to Tw$30.23 from Tw$30.19 while easing to 1,040.64 South Korean won from 1,040.75 won.

The Australian dollar stood at 89.08 US cents from 89.36 cents, while the Chinese yuan bought 17.71 yen from 17.70 yen.

Source: yahoo.com

Rumors that Circulates at Wall Street

Siemens to Acquire Dresser Rand for $83/Share

The Deal:

Dresser-Rand Group Inc. (NYSE: DRC) announced Sunday, that it has entered into a definitive merger agreement with Siemens under which Siemens will acquire all of the outstanding shares of Dresser-Rand common stock for $83.00 per share in cash, in transaction valued at approximately $7.6 billion.

The deal is expected to close in the summer of 2015, subject to Dresser-Rand shareholder approval, as well sas regulatory approval in the U.S., Europe and certain other jurisdictions.

Sulzer (OTC: SULZF) confirmed Monday they had terminated discussions with Dresser-Rand and were pursuing other M&A projects. General Electric (NYSE: GE), which was rumored by Financial Times on Friday to be preparing a bid for Dresser-Rand, was not heard from on Monday.

Dresser-Rand shares closed Monday at $81.97, a gain of 2.5%.

Report Silver Lake in Talks to Acquire Shutterfly for $50+/Share

The Rumor:

Shares of Shutterfly (NASDAQ: SFLY) surged higher Monday, following a report from Reuters that private equity firm Silver Lake was in talks to acquire the photo sharing company for more than $50.00 per share.

Spokespersons for Shutterfly and Silver Lake did not respond to requests for comment.

Shutterfly shares closed Monday at $50.12, a gain of more than 5%.

Merck KGaA to Acquire Sigma-Aldrich for $140/Share in Cash

The Deal:

Merck KGaA (OTC: MKGAY) and Sigma-Aldrich (NASDAQ: SIAL) announced Monday, that Merck KGaA will acquire Sigma-Aldrich for $17.0 billion or $140 per share in cash. The deal is expected to close in mid-year 2015, subject to regulatory approvals and other customary closing conditions.

Sigma-Aldrich closed Monday at $136.40, a gain of 33%.

EMC Reportedly Held Merger Talks with Hewlett-Packard

The Rumor:

EMC Corporation (NYSE: EMC), reportedly held talks with Hewlett-Packard (NYSE: HPQ), according to a report from WSJ. The discussions are said to have taken place over a period of almost a year, and according to sources, the talks have recently ended. It is not known if the talks can be revived.

Other companies seen as potential suitors for all or part of EMC, include Dell, Cisco (NASDAQ: CSCO) and Oracle (NASDAQ: MSFT). Shareholder Elliott Management has been urging EMC to consider a breakup, including a sale of its 80% VMware stake, to unlock shareholder value.

EMC closed Monday at $29.68, a gain of $0.15, on three times average volume. Shares of VMware (NYSE: VMW) rose 2% Monday, to close at $96.16.

Report Allergan Rejected Bid from Actavis; Allergan in Talks to Acquire Salix

The Rumor:

Allergan Inc. (NYSE: AGN) recently rejected a takeover bid from Actavis plc (NYSE: ACT), according to a report from WSJ. Actavis is said to still be interested in a deal for Allergan.

Sources say Allergan is in talks to acquire Salix Pharmaceuticals Ltd. (NASDAQ: SLXP) in an all-cash deal worth more than $10 billion. Salix has already agreed to a merger with Cosmo Pharmaceuticals.

Allergan has been fighting off a hostile takeover by Valeant Pharmaceuticals International, Inc. (NYSE: VRX), led by investor Bill Ackman.

Allergan closed Monday at $166.12, a loss of more than 1%, and traded up 1.5% after-hours. Actavis closed Monday at $235.62, a loss of 2.5% and gained $1.38 after-hours. Salix Pharmaceuticals lost 2.5% to close at $159.83, but traded at $185.00 after-hours.

Source: benzinga.com

Dollar Gauge Set for Highest Close

Yen Drops

The dollar was set for the highest closing level in four years versus major peers after Federal Reserve officials raised their target-rate forecast. The yen slid to a six-year low before the Bank of Japan governor speaks.

The greenback returned to levels unseen since the collapse of Lehman Brothers Holdings Inc. after Fed policy makers increased their median estimate for the key rate to 1.375 percent at the end of 2015 versus June's forecast for 1.125 percent. The pound remained higher as Scotland votes today on independence. The euro touched its weakest since July 2013 with the European Central Bank preparing to allot the first funds under its so-called targeted longer-term refinancing operations.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major currencies, rose 0.2 percent to 1,055.71 as of 1:33 p.m. in Tokyo, poised for the highest closing level since June 2010.

The U.S. currency climbed to 108.75 yen, the strongest since Sept. 8, 2008, before trading 0.3 percent higher at 108.67. It was little changed at $1.2864 per euro and touched $1.2835, the most since July 2013.

Considerable Time

The Federal Open Market Committee retained a commitment to keep interest rates near zero for a “considerable time” after winding down a bond-purchase program under the quantitative-easing stimulus strategy. It said in a statement a “significant underutilization of labor resources” remains.

Policy makers tapered monthly bond buying to $15 billion in their seventh consecutive $10 billion cut, staying on course to end the program in October.

Yellen, at a press conference after the two-day meeting, said the language of the low-rate pledge isn’t a form of calendar-based guidance. The odds the central bank will increase its benchmark interest-rate target to at least 0.5 percent by July 2015 were 78 percent, up from 73 percent at the end of last month, federal fund futures showed.

An interest-rate increase would be the first since 2006. The rate has been in a range of zero to 0.25 percent since December 2008.

Kuroda Speaks

BOJ Governor Haruhiko Kuroda is scheduled to speak today at the National Securities Industry Convention in Tokyo. A stronger dollar isn’t negative for Japan’s economy and the central bank will continue unprecedented monetary stimulus as long as necessary to achieve its target of 2 percent inflation “in a stable manner,” Kuroda said Sept. 16 in Osaka.

The pound held a gain since Sept. 15 before voters in Scotland decide today on the future of a political union that dates back to 1707. Voting ends at 10 p.m. local time. A final batch of opinion polls before the referendum showed the “no” campaign remained in the lead by a slim margin.

“Uncertainty around the final result is mounting,” Shinichiro Kadota, a foreign-exchange strategist at Barclays Plc in Tokyo, wrote in an e-mailed note to clients today. “GBP will likely rebound further in case of a ‘No’ vote, though it has already seen some rebound in the past few days, while a ‘Yes’ vote would likely exert further downward pressure.”

ECB Loans

Sterling was little changed at $1.6265 after climbing 0.3 percent since Sept. 15 through yesterday to $1.6276.

The ECB will announce today the allotment of its first targeted lending program as part of its effort to stave off deflation in the euro area. Banks will receive 150 billion euros ($193 billion), according to the median estimate of analysts surveyed by Bloomberg News.

New Zealand’s currency added 0.2 percent to 81.09 U.S. cents. The nation’s economy grew at the fastest pace in 10 years in the second quarter, outperforming most major developed markets. Gross domestic product increased 3.9 percent in the second quarter from a year earlier, Statistics New Zealand said today. That beat the 3.8 percent median forecast in a Bloomberg survey of 10 economists.

Source: bloomberg.com

Stocks Gain On Federal Reserve Update

The Federal Reserve Open Market Committee restated rates will remain low for a "considerable time," sending volatility into equity, debt and currency markets. Treasury buying was reduced by $5 billion per month, and the 2015 GDP estimate was cut to a range of 2.6 percent to 3 percent.

Major Averages

• The Dow Jones Industrial Average rose 24.9 points, or 0.15 percent, to 17, 157.
• The S&P 500 climbed 2.6 points, or 0.13 percent, to 2,002.
• The Nasdaq Composite gained 9.4 points, or 0.2 percent, to close at 4,562.

Top Stories

Homebuilder stocks gained Wednesday after the NAHB monthly survey showed homebuilders are more confident than they have been since 2005. The report stated that first time home buyers are still reluctant to enter the market.

The already strong steel sector continued to pick up ground after United States Steel (NYSE: X) and Nucor (NYSE: NUE) told Wall Street third quarter results will be better than initially expected. US Steel shares gained 10.1 percent while Nucor shares gained 3.9 percent.

To ease U.S. dependence on Russia, NASA granted Boeing (NYSE: BA) a $4.2 billion contract to transport astronauts to the International Space Station. Elon Musk’s SpaceEx has a similar $2.6 billion contract.

Stock Movers

Auxilium Pharmaceuticals (NASDAQ: AUXL) shares shot up 44.9 percent to $31.18 after the company received an unsolicited bid to be acquired for $28.10 per share from Endo International plc (NASDAQ: ENDP).

Lennar (NYSE: LEN) shares were also up, gaining 5.8 percent to $41.40 after the company reported better than expected fiscal third-quarter earnings.

Shares of Rackspace Hosting (NYSE: RAX) were down 17.7 percent to $32.39 after the company said it will remain independent despite "entertaining various proposals" from suitors.

General Mills (NYSE: GIS) shares tumbled 4.4 percent to $50.83 after the company reported weaker than expected fiscal first quarter results.

Adobe Systems (NASDAQ: ADBE) was down, falling 4.9 percent to $67.30 after the company issued a weak fiscal fourth quarter forecast. Adobe reported its third quarter earnings of $0.28 per share on revenue of $1.01 billion.

Commodities

Some profit taking kicked in Wednesday for crude oil futures. WTI was last down 0.77 percent to $94.15 after Tuesday’s 2 percent gain.

After a three day rally, gold fell below its previous low to $1,222.30 following the Federal Reserve’s interest rate decision. Gold contracts are now the cheapest they have been since January.

Currencies

The U.S. dollar shot to a new 52-week high on news that the Federal Reserve will reduce bond buying by $5 billion a month while keeping rates low. The PowerShares ETF (NYSE: UUP) that tracks the performance of the greenback versus a basket of foreign currencies gained 0.63 percent to 22.53.

Global Markets

Asian markets traded higher last night after Tuesday’s sell off. The Shanghai index gained 0.5 percent with Hong Kong's Hang Seng up 1 percent. Japanese markets gave up 0.1 percent.

European markets were mixed on the day. The Euro Stoxx index, which tracks 50 eurozone blue chips, gained 0.5 percent. London's FTSE gave up 0.2 percent, and France's CAC added 0.5 percent.

Source: benzinga.com

Oil prices down on US stockpiles surge, OPEC reports

Oil prices fell in Asia thursday following an unexpected surge in US stockpiles and reports that the OPEC oil cartel is unlikely to slash production when it meets in November.

US benchmark West Texas Intermediate for October delivery dipped 55 cents to $93.87 while Brent crude for November eased 51 cents $98.46 in mid-morning trade.

Prices were under pressure "after the US Department of Energy reported an unexpected increase of US crude inventories by 3.7 million barrels instead of the market forecast for a 1.2 million decline," said Singapore's United Overseas Bank (UOB) in a market commentary.

Gasoline stocks dropped 1.6 million barrels in the week to September 12, the data showed.

UOB said oil prices also took a hit after "conflicting reports" about the plans of the Organisation of the Petroleum Exporting Countries (OPEC) to cut its output in November due to a global supply glut and weak demand.

OPEC Secretary-General Abdullah El-Badri said Tuesday the cartel would cut output in November, which helped lift prices from a two-year low. But a Dow Jones Newswires report Wednesday, citing unnamed OPEC delegates, said the organisation was unlikely to cut in November.

A stronger dollar added downward pressure to oil, which is traded in dollars and becomes more costly for buyers using weaker currencies. The greenback rose after the Federal Reserve stuck to its timetable on hiking interest rates but indicated they could eventually rise more sharply than initially envisaged.

Sanjeev Gupta, head of the Asia-Pacific oil and gas practice at consultancy EY, said investors will next be scrutinising manufacturing data out of China and Germany on Tuesday for clues about global demand.

If the economic data from these two countries are lower than forecast, oil prices "may head lower in the near term", said Gupta.

Source: yahoo.com