|
FinNews for January 11, 2013 Top Stories In spite of the extraordinary measures being taken by the Treasury, analysts believe the US government will have to come to an agreement on the debt ceiling as early as Feb. 15 – two weeks earlier than expected. (1) A settlement has been reached between Bank of America and Fannie Mae in regard to the mortgage loans bought by Fannie Mae prior to the financial crisis of 2008. The settlement includes a onetime payment of $3.6 billion as well as a partial buyback of the loans for $6.75 billion. (2) Wednesday AIG announced that they will not be joining the shareholder suit over the bailout against the US government. (3) Bank of America, along with nine other major banking institutions, agreed to pay a settlement of $8.5 billion for fraudulent mortgage practices that took place 2009-10. (4) Economic Releases & Statistics December exports in China exceeded forecasts of a 4 percent increase, rising 14.1 percent to the highest point since May. (5) U.S. consumer credit surpassed median forecasts of a $12.8 billion gain for November, adding $16 billion. (6) Claims for unemployment benefits for the week ended Jan. 5 rose by 4,000 to a seasonally adjusted 371,000, surpassing economists forecast of 365,000 claims. (7) Last week's report on initial unemployment claims, for the week ended Dec. 29, was amended to reflect 5,000 fewer applications than first reported. (8) The US trade balance for November made an unexpected turn, expanding 15.8 percent to $48.7 billion from October's amended figure of $42.06. Economists had expected the balance to tighten to $41.2 billion. Exports increased 1 percent to $182.55 while imports rose 3.8 percent to $231.28. (9) Stocks & Earnings After holding below $30 since July, Facebook shares advanced $1.10 to $30.16 on Wednesday following speculations that the company plans to reveal a new product by the end of the month. (10) Despite a slump in aluminum prices and a 1.5 percent drop in sales, costs cuts allowed Alcoa Inc. to report a fourth-quarter net profit of $242 million, or $0.21 a share. (11) A 6 percent drop in fourth-quarter sales on Thursday had Aeropostale's shares felling 9.8 percent to $12.05. (12) China's unexpected increase in exports caused the S&P 500 to reach its highest point in 5 years, rising 0.8 percent to 1,472.12. (13) Global Currencies On Thursday, Japan's Prime Minister Abe announced a $116 billion, or 10.3 trillion yen, stimulus plan to end deflation and aid economic growth. (14) The news of the stimulus had the yen falling to its lowest point against the dollar since 2010 of 89.35 and facing a weekly decline for the ninth straight week. (15) Japan's stimulus plan as well as a positive outlook from the European Central Bank had the Canadian dollar reaching an almost three-month high of C$0.9815, or $1.0188, against the US dollar. (16) Oil & Energies According to this week's EIA release, crude supplies were up by 1.3 million barrels for the week ended Jan. 5. Analysts' forecasts were only slightly higher at 1.5 million. (17) For the first time since 1993, the EIA also reported a 7 million barrel per day increase in crude production. (18) Gas stocks rose by more than double the 2.3 million barrels expected by analysts, gaining 7.4 million barrels. (19) Natural gas storage for last week fell by 201 billion cubic feet to 3.316 trillion cubic feet. Forecasts called for a decrease of 183 billion to 187 billion cubic feet. Supplies are 0.7 percent higher year-on-year. (20) Grains & Field Crops In the most recent WASDE release, the USDA raised its estimates for global soybean production by 1.7 million tons to 269.4 million. (21) Global wheat inventories are estimated to be only slightly lower for 2012-13, with Argentina as well as Russia expecting a decrease in production of 0.5 and 0.3 million tons respectively. (22) Record breaking drought conditions and a strong demand for animal-feed has US corn supplies at its lowest point in nine years. Inventories are 17 percent lower than last year's level of 9.647 billion, coming in at 8.03 billion bushels. The median analyst projection called for a stockpile of 8.216 billion. (23) The USDA has made its first disaster declaration of 2013, identifying 597 countries across both the Southern and Northern Plains as primary disaster areas. A "Jan. 8 report from the Climate Data Center indicated [that] the new wheat crop tried to germinate and grow in the 27th driest October through December in the 117 year history of weather records." (24) Precious Metals On Wednesday Centamin released record fourth-quarter production figure of 85,543 ounces for their Sukari Gold Mine. This is a 49 percent year-on-year increase. (25) With no announcement from the European Central Bank to cut rates, gold was able to gain 1 percent Thursday allowing it to rise above its 200-day moving average. However, Friday morning gold failed to hold onto the gain, dropping 0.9 percent to $1,660.30 an ounce. The metal is down 1 percent for the year. (26) Other Commodities Costa Rica's coffee export for the 2012-13 season is expected to decrease by more than 9.8 percent. The anticipated yield reduction was brought about due to unfavorable weather conditions, which caused the crop to cultivate a rust fungus. (27) A decrease in demand had fourth-quarter coffee prices dropping 21 percent to $1.438 a pound. (28) Although higher prices caused not-from-concentrate orange juice sales by volume to fall for the first time in six months, the increase in price allowed for a 2 percent year-on-year increase in revenues. (29) A mistake and revision on speculative trade's data released by NYSE Liffe had cocoa prices varying widely this week. On Jan. 7th, after the exchange reported that "speculators cut bets on higher prices by 31 percent," cocoa futures rose to its highest position in nearly a month of 1,441 pounds a metric ton. However, as investors realized that NYSE Liffe had revised the figure the following day to 12 percent, cocoa dropped to 1,421 pounds. (30) Upcoming:
2. http://www.latimes.com/business/la-fiw-bofa-settlement-fannie-mae-20130107,0,6085734.story 3. http://online.wsj.com/article/SB10001424127887323442804578231660629820142.html 4. http://www.cnbc.com/id/100359672 5. http://www.msnbc.msn.com/id/50418005/ns/business-stocks_and_economy/#.UO9_EG9lFOM 7. http://www.nasdaq.com/article/us-initial-jobless-claims-rose-to-371k-cm206227#.UO7vim9lFOM 8. http://www.foxbusiness.com/economy/2013/01/10/weekly-jobless-claims-january/ 9. http://online.wsj.com/article/SB10001424127887324081704578235390956833254.html 10. http://www.foxbusiness.com/industries/2013/01/09/facebook-shares-rise-above-30/?intcmp=trending 11. http://www.reuters.com/article/2013/01/08/us-alcoa-results-instant-view-idUSBRE90711920130108 12. http://www.reuters.com/article/2013/01/10/aeropostale-americaneagle-sales-idUSL1E9CA2KV20130110 16. http://www.reuters.com/article/2013/01/11/markets-canada-dollar-bonds-idUSL1E9CB2M02013011117. http://www.cnbc.com/id/100364827 18. http://www.reuters.com/article/2013/01/09/markets-oil-idUSL4N0AE2KC20130109 19. http://www.investing.com/news/commodities-news/crude-oil-holds-near-4-month-high-after-u.s.-supply-data-242843 20. http://www.miamiherald.com/2013/01/10/3176090/us-natural-gas-supplies-fell-last.html 21. http://www.agprofessional.com/resource-centers/soybean/key-reports/WASDE-Soybean-production-up-increased-yield-harvest-area-186488801.html# 22. http://www.agri-pulse.com/USDA-lowers-corn-harvest-but-increases-yield-estimates-1112013.asp 23. http://www.bloomberg.com/news/2013-01-11/u-s-corn-supply-seen-at-nine-year-low-as-drought-harms-crops.html 24. http://www.porknetwork.com/pork-news/latest/Hard-red-winter-wheat-crop-receives-disaster-declaration-186463541.html?page=2 25. http://www.centamin.com/centamin/media/news/q4preliminaryproductionresults 26. http://www.cnbc.com/id/100371510 27. http://www.costaricantimes.com/costa-rica-coffee-harvest-down-10/10063 28. http://seekingalpha.com/article/1101721-soft-commodity-quarterly-report-cocoa-coffee-sugar-decline-while-cotton-holds-steady-near-lows 29. http://online.wsj.com/article/SB10001424127887323482504578227704228441428.html?mod=googlenews_wsj 30. http://www.bloomberg.com/news/2013-01-10/cocoa-whipsawed-as-nyse-liffe-changes-data-on-speculative-trades.html _______________________________________________________________________________________ Disclaimer: Trading and investing involve a substantial degree of a risk of loss and are not suitable for everyone. Past performance is not indicative of future results. Fundamental factors, seasonal and weather trends, daily news, and other current events may have already been factored into the markets. Some trading strategies have unlimited risk. Educate yourself on the risks and rewards of such investing prior to trading. The publisher, and/or its affiliates, staff or anyone associated with FinNews, do not guarantee profits or pre-determined loss points, and are not held monetarily responsible for the trading losses of others (subscribers or otherwise). Information provided is compiled by sources believed to be reliable. The publisher, and/or its principals, assume no responsibility for any errors or omissions as the information may not be complete or events may have been canceled or rescheduled. Any copy, reprint, broadcast or distribution of this report of any kind is prohibited without the expressed written consent of the publisher. |
This email was sent to kumaresan.selva.blogger@gmail.com by Trading in America
No comments:
Post a Comment