Independent ImClone Systems Inc. directors have told Bristol-Myers Squibb Co. that its offer for the share of the company the drug giant doesn't already own is not adequate, and that it has received a higher buyout offer.
Lehman Brothers Holdings suffered one of its worst quarterly losses in company history - nearly $4 billion - and said it would spin-off part of its commercial real estate assets.
Verifone Hldgs Inc offered fourth-quarer net income guidelines just short of what analysts are expecting.
11.09 19:21
October contract back near the lows of the day again, down $2+ at $100.44
11.09 19:02
USA: International trade (July), -$111.9 bln
11.09 18:57
Median estimate on US Tsy stmt: -$105b
11.09 18:44
BELGIUM: Finmin says he hopes inflation has peaked now that oil is dropping
The dollar rose to
one-year high against the euro on signs global growth is slowing and the yen strengthened on
speculation investors will sell higher-yielding assets funded by loans in Japan.
The yen appreciated to the highest level against the
euro since August 2006 as concern Lehman Brothers Holdings Inc. will collapse
encouraged investors to pare carry trades.
New Zealand's currency dropped to two-year lows against the dollar and the yen as the Reserve Bank
reduced borrowing costs more than most economists forecast.
The ECB will cut its main refinancing rate by a
quarter- percentage point to 4 percent during the first three months of next
year, according to a surveys of economists.
The European Commission said yesterday the euro
region's economy will probably stagnate this quarter after shrinking the
previous three months for the first time since the currency's debut in 1999. It
cut its 2008 growth forecast to 1.3%, from 1.7%.
EUR/JPY lifted to near Y149.00/10 area before easing back to the current Y148.55 as stocks rebound on Wall Street. Earlier cross fell to multi-year lows near Y147.50.
GBP/USD back above $1.7500, rebounding from
lows around 41.7440. rate earlier printed highs near $1.7590. Light demand
interest seen at $1.7450 area of morning lows.
Stocks slumped
Thursday morning as
ongoing questions about Lehman Brothers, Washington Mutual and other financials
exacerbated worries about the stability of the broader banking system.
Meanwhile, a steeper-than-expected jump in the U.S. trade deficit and a weak
jobless claims report added to recession fears.
Among corporate news: Lehman Brothers shares plunged 41%
Thursday morning, one day after the bank reported a nearly $4 billion fiscal
third-quarter loss, its biggest quarterly loss since it went public in 1994. The
company also said it will spin off part of its commercial real estate business,
cut its dividend and sell a 55% stake in its investment unit, which includes
profitable money manager Neuberger Berman.
Goldman Sachs downgraded the stock to
"neutral" from "buy," while Citigroup cut it to
"hold" from "buy."
Economy: In addition to the banking system
woes, investors received two discouraging economic reports Thursday morning, on
the trade deficit and the labor market.
The U.S. trade gap surged to $62.2
billion in July, its widest level in 16 months, as imported oil prices jumped.
The results beat economists' forecasts for a dip to $58 billion versus a
revised $58.8 billion in June.
The number of Americans filing new claims for
unemployment fell 6,000 to 445,000 last week, missing forecasts for a bigger
drop to 440,000, the government reported.
1.Many factors influence inflation, including commodity prices 2.Recent ECB staff forecasts not that pessimistic 3.Lehman Brothers troubles will add to financial market volatility 4.Lehman troubles "not a positive development"
Nomura economist David Resler says FOMC will
not change rates on Sept 16 but will "note the expected moderation in
inflation appears to be underway." FOMC will stress the strains in mkts
and will not hike until late 2009.
"We continue to believe the Fed is on indefinite hold. We see fed funds
at 2% through the remainder of this year and next. For the Fed to cut
rates, inflation has to get back to 2% and the unemployment rate has to
rise higher than the 6.5%."
Took another dip lower to around Y106.05 area, eroding demand interest
layered ahead of Y106.00 and as US stocks remain weak. Residual bids to
Y106.00 with stops noted under Y105.90.
Stock futures continue to trade well below fair value (S&P futures -16.40, Nasdaq futures -28.30). The negative tone has been persistent in premarket action. Shares of Lehman Brothers have been downgraded after analysts digested the investment bank's preliminary third quarter results announced yesterday. The stock was moved to Hold from Buy at Citigroup this morning. Goldman Sachs also lowered shares of Lehman to Neutral from Buy. Initial jobless claims for the week ending September 6 totaled 445,000, falling 6,000 week-over-week. The most recent number of claims filed exceeded the 440,000 that were expected. Continuing claims moved upward to 3.52 million. Continuing claims for the prior week were downwardly revised to 3.40 million. In other economic news, August import prices slipped 3.7%. The consensus called for a 1.8% downturn in the import price index. Meanwhile, the trade deficit for July was $62.2 billion, which is more than the $58.0 billion deficit that was widely expected. The prior month deficit totaled $58.8 billion. Crude oil is trading modestly lower, currently a bit below $102 per barrel. On the earnings front, athletic apparel company Lululemon Athletica announced better-than-expected earnings per share results for its latest quarter. However, the company's top line fell a bit short of expectations, as did its revenue outlook for fiscal 2009.
11.09 14:03
Nomura: "It is likely that sharp increase in the 4-week average of claims since late June reflects a contemporaneous deterioration of the labor market."
The dollar rose to the highest level in a year against the euro on
speculation that economic growth in Europe will be slower than in the
U.S., prompting the region's central bank to lower interest rates.
The U.S. currency climbed for a second day as traders raised bets that
the European Central Bank will cut borrowing costs before a government
report tomorrow likely to show industrial production in the euro area
shrank. New Zealand's dollar dropped to its lowest level since October
2006 after Alan Bollard, governor of the nation's central bank, reduced
interest rates by more than economists expected.
``We've got this dollar strength for several weeks now that is driving
currency markets and the fundamental picture is underpinning this,''
said Lutz Karpowitz, a currency strategist in Frankfurt at Commerzbank
AG, Germany's second-biggest lender. ``The euro-zone economy is going
into recession.''
The ECB will cut its main refinancing rate a quarter point to 4 percent
in the first three months of next year, while the Federal Reserve
raises its target rate for overnight bank loans by the same amount to
2.25 percent, according to Bloomberg surveys of economists.
The diverging interest-rate outlook narrowed the so-called yield spread
between German and U.S. two-year government notes today. The spread was
1.81 percentage points, down from 1.88 percentage point a week ago.
The European Commission said yesterday the euro region's economy will
probably stagnate this quarter after shrinking the previous three
months for the first time since the currency's debut in 1999. It cut
its 2008 growth forecast to 1.3 percent, from 1.7 percent. By contrast,
the median in a survey of economists was for U.S. growth of 1.7
percent.
The yen rose against all 16 of the most-active currencies on
speculation that widening subprime-mortgage losses will hurt earnings
of U.S. companies, reducing demand for so-called carry trades.
In carry trades, investors get funds in a country with low borrowing
costs and buy assets where returns are higher. Japan's target lending
rate is 0.5 percent, compared with 7 percent in Australia. The risk is
that currency swings erase profits.
The European Union's statistics office in Luxembourg will probably say
tomorrow that industrial output in the 15 nations fell 0.2 percent in
July after a revised 0.2 percent decline in June, according to survey
of economists.
EUR/USD Euro-dollar slipped under the Asian low, momentum strong
enough for the pair to make a brief show under $1.3900, with the rate
remaining heavy over the balance of the morning, heading into early US
trade bouncing slightly to $1.3940. Offers $1.3950/60, $1.3975, bids
$1.3890, stops below, barrier $1.3850.
GBP/USD break took cable through $1.7470 support to $1.7448,
with the rate then tracking euro-dollar's bounce into US trade,
pushing back to $1.7515. Bids $1.7450/40, $1.7420, $1.7400.
USD/JPY ushed up to Y107.94 in the NY session, with the rate
then closing the day around Y107.70. Cross-yen flows again dominated
price action in Asia, the euro-yen slippage dragging dollar-yen down
in early dealing from Y107.87 to Y107.32 as the cross took out the
Y150.00 barrier and traded down to Y149.62.
US data starts at 12:30 GMT with International trade (July),
Jobless claims (week to 30.08), Export/Import (July), bln,
Export/Import prices (August) and Canadian International Merchandise
Trade (Jul). At 18:00 GMT, ECB President Trichet Speech is due to
deliver a keynote speech.
The dollar rose to the highest level in a year against the euro
on speculation that economic growth in Europe will be slower than in
the U.S., prompting the region's central bank to lower interest rates.
The U.S. currency climbed for a second day as traders raised bets that
the European Central Bank will cut borrowing costs before a government
report tomorrow likely to show industrial production in the euro area
shrank. New Zealand's dollar dropped to its lowest level since October
2006 after Alan Bollard, governor of the nation's central bank, reduced
interest rates by more than economists expected.
``We've got this dollar strength for several weeks now that is driving
currency markets and the fundamental picture is underpinning this,''
said Lutz Karpowitz, a currency strategist in Frankfurt at Commerzbank
AG, Germany's second-biggest lender. ``The euro-zone economy is going
into recession.''
The ECB will cut its main refinancing rate a quarter point to 4 percent
in the first three months of next year, while the Federal Reserve
raises its target rate for overnight bank loans by the same amount to
2.25 percent, according to Bloomberg surveys of economists.
The diverging interest-rate outlook narrowed the so-called yield spread
between German and U.S. two-year government notes today. The spread was
1.81 percentage points, down from 1.88 percentage point a week ago.
The European Commission said yesterday the euro region's economy will
probably stagnate this quarter after shrinking the previous three
months for the first time since the currency's debut in 1999. It cut
its 2008 growth forecast to 1.3 percent, from 1.7 percent. By contrast,
the median in a survey of economists was for U.S. growth of 1.7
percent. The yen rose against all 16 of the most-active currencies on
speculation that widening subprime-mortgage losses will hurt earnings
of U.S. companies, reducing demand for so-called carry trades. In carry trades, investors get funds in a country with low
borrowing costs and buy assets where returns are higher. Japan's target
lending rate is 0.5 percent, compared with 7 percent in Australia. The
risk is that currency swings erase profits.
The European Union's statistics office in Luxembourg will probably say
tomorrow that industrial output in the 15 nations fell 0.2 percent in
July after a revised 0.2 percent decline in June, according to survey
of economists.
Reduced hurricane concerns and weakness in base metal prices as
well as dollar continued strength push the oil further down. Risk is WTI Nymex crude oil hitting
fresh 5-month lows below $101.36, which in turn is seen triggering
break of a long-term support line from January 15. Below here, WTI
Nymex crude oil is seen vulnerable to collapse below $100.00 level.
Resistance 3: Y109.70
Resistance 2: Y109.00
Resistance 1: Y108.00
Current price: Y106.87
Support 1: Y106.60 Support 2: Y105.70
Support 3: Y104.70
Comments: Techs on USD/JPY hasn’t changed with resistance comes at Y108.00/10.
Above the recovery may extend Monday’s high on Y109.00/10. Support is
around yesterday’s low on Y106.60, further - at trend support line from
Mar 17 at Y105.80. Break under will open the way to Y104.70 (Jul 17
low).
Resistance 3: Chf1.1550 Resistance 2: Chf1.1480
Resistance 1: Chf1.1400
Current price: Chf1.1405
Support 1: Chf1.1350 Support 2: Chf1.1200
Support 3: Chf1.1150
Comments: USD/CHF holds near yesterday’s highs around Chf1.1400 (minor
resistance) ahead of the International Trade Balance release. Analysts
expect deficit widened to $57.0 bln versus -$56.8 bln month earlier. In
general, rate holds within the upward channel from Jul 16, limited
today by Chf1.1150/Chf1.1550 (key support/resistance respectively).
Support is around session low on Chf1.1350, then - at Tuesday’s low at
Chf1.1200/10. Below losses may widen to channel line at Chf1.1150.
Above Chf1.1400 resistance comes at Chf1.1480, then - near channel line
on Chf1.1550.
Resistance 3: $1.7780 Resistance 2: $1.7600
Resistance 1: $1.7540
Current price: $1.7485
Support 1: $1.7460
Support 2: $1.7370
Support 3: $1.7180
Comments: GBP/USD still under pressure, trading within downward channel
from Jul
31, limited today by $1.7180/$1.7780 (key support/resistance
respectively). Support is around session lows on $1.7450/60. Below
losses may widen to $1.7370 (Apr 09, 2006 lows). Further decline may
reach channel support line on $1.7180. Resistance comes at session high
on $1.7540, then - on $1.7600. Stronger level is around $1.7780
(channel resistance line).
Resistance 3:$1.4450
Resistance 2: $1.4280 Resistance 1: $1.4240
Current price: $1.3920
Support 1: $1.3840
Support 2: $1.3790 Support 3: $1.3720
Comments: EUR/USD still holding within the downward channel from Aug 04,
limited today by $1.3790/$1.4370. Key support comes at $1.3840 (trend
line from Jan 01, 2002) with a break under will fuel bearish momentum
and open the way to $1.3790/00. Below losses may reach $1.3720. Minor
resistance is around session highs on $1.3990/00, then - on $1.4180
(Wednesday’s highs) and $1.4220/30 (Tuesday’s highs).
The dollar rose to a one-year high against the euro on speculation that
growth in Europe will slow more than in the U.S., prompting the
region's central bank to cut interest rates.
The U.S. currency climbed for a second day as traders increased bets on
a European Central Bank rate reduction before a government report
tomorrow that economists say will show industrial production in the
euro area shrank. New Zealand's dollar dropped to its lowest level
since October 2006 after Reserve Bank of New Zealand cut its benchmark
interest rate by half a percentage point to 7.5 percent, saying the
economy is in a recession. EUR/USD having posted high at $1.3985, fell to $1.3925 mark.
GBP/USD consolidaned within $1.7470 -$1.75350.
USD/JPY fell to the lower bound of the resent range Y106.90/Y107.80.
European data
starts at 0600GMT with German wholesale prices data, followed at
0645GMT by Q2 final payrolls data from France, which is expected to
come in at -0.1% q/q, +1.1% y/y. At 0715GMT, ECB Vice President Lucas
Papademos is due to deliver a keynote speech at the "Hamburg Summit
2008: China meets Europe," in Hamburg. The ECB publishes its monthly
Bulletin at 0800GMT, at the same time as ECB Governing Council member
Yves Mersch holds a press conference, in Luxembourg.
The benchmark Shanghai Comp ended the morning session down 46.06 points
or 2.14 pct at 2,104.70 after touching a 21-month intraday low of
2,099.17. The Shanghai A was down 48.31 points or 2.14 pct at 2,209.09,
while the Shenzhen A fell 7.35 points or 1.19 pct to 608.57.
Resistance 3: Y109.70
Resistance 2: Y109.00
Resistance 1: Y108.00
Current price: Y107.39
Support 1: Y106.60 Support 2: Y105.70
Support 3: Y104.70
Comments:
Techs on USD/JPY hasn’t changed with resistance comes at Y108.00/10.
Above the recovery may extend Monday’s high on Y109.00/10. Support is
around yesterday’s low on Y106.60, further - at trend support line from
Mar 17 at Y105.80. Break under will open the way to Y104.70 (Jul 17
low).
Resistance 3: Chf1.1550 Resistance 2: Chf1.1480
Resistance 1: Chf1.1400
Current price: Chf1.1378
Support 1: Chf1.1350 Support 2: Chf1.1200
Support 3: Chf1.1150
Comments: USD/CHF holds near yesterday’s highs around Chf1.1400 (minor
resistance) ahead of the International Trade Balance release. Analysts
expect deficit widened to $57.0 bln versus -$56.8 bln month earlier. In
general, rate holds within the upward channel from Jul 16, limited
today by Chf1.1150/Chf1.1550 (key support/resistance respectively).
Support is around session low on Chf1.1350, then - at Tuesday’s low at
Chf1.1200/10. Below losses may widen to channel line at Chf1.1150.
Above Chf1.1400 resistance comes at Chf1.1480, then - near channel line
on Chf1.1550.
Resistance 3: $1.7780 Resistance 2: $1.7600
Resistance 1: $1.7540
Current price: $1.7500
Support 1: $1.7470
Support 2: $1.7370
Support 3: $1.7180
Comments: GBP/USD still under pressure, trading within downward channel
from Jul
31, limited today by $1.7180/$1.7780 (key support/resistance
respectively). Support is around session lows on $1.7470/80. Below
losses may widen to $1.7370 (Apr 09, 2006 lows). Further decline may
reach channel support line on $1.7180. Resistance comes at session high
on $1.7540, then - on $1.7600. Stronger level is around $1.7780
(channel resistance line).
Resistance 3:$1.4450
Resistance 2: $1.4280 Resistance 1: $1.4240
Current price: $1.3950
Support 1: $1.3840
Support 2: $1.3790 Support 3: $1.3720
Comments: EUR/USD weakens Thursday, holding within the downward channel from Aug
04, limited today by $1.3790/$1.4370. Key support comes at $1.3840
(trend line from Jan 01, 2002) with a break under will fuel bearish
momentum and open the way to $1.3790/00. Below losses may reach
$1.3720. Minor resistance is around session highs on $1.3990/00, then -
on $1.4180 (Wednesday’s highs) and $1.4220/30 (Tuesday’s highs).
11.09 06:24
The front-month Nymex WTI Oct 08 contract was last 87 cents higher at $103.38, having touched a high at $103.45.
