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Wednesday, 27 May 2015
01:44

Says:

- Expects another 50bps policy policy rate cut vs. Prev. forecast of 25bps and now 250bps of reserve ratio cuts vs. prev. forecast of 100bps. 

Analysis details: 01:47

- As a guide, China's official 2015 GDP forecast is 7.00% and Q2 GDP reading is due on the 15th July 2015.

 

Source: BBG
Print
Wednesday, 27 May 2015
01:36
Wednesday, 27 May 2015
01:31

CTBC Financial (2891 TT)
- Citic Bank is to acquire a 3.8% stake in Co. (BBG)
- Co. bank unit plans foray into China. (BBG)

Shin Kong Financial (2888 TT)
- Co. insurance unit is said to plan an offshore unit. (BBG)

Source: BBG
Print
Wednesday, 27 May 2015
01:30
Reaction details: 01:30

- No immediate reaction seen in AUD/USD trades 0.7745 (+10 pips) last.

Source: BBG
Print
Wednesday, 27 May 2015
01:11
Analysis details: 01:15

Summary:

- US equities fell the most in 3-weeks with all three major indices falling by more than 1% after strong core durable goods orders (Cap goods order non-defence ex. Air 0.8% vs Exp. 0.2%, Prev. -0.5%, Rev. +1.5%), positive consumer confidence (95.4 vs Exp. 95.0) and new home sales (M/M 517k vs Exp. 508k) prompted market participants to bring forward their pending Fed rate hike expectations, particularly in the current US data dependent environment.

- Further weight was also felt following on from losses in European indices amid growing concerns that Greece will not be able to make its next IMF repayments (first on June 5th). 

Notable movers in the Nikkei 225:
- Mitsubishi Gas (+5.4%) after Co. repurchased 2.21% of shares.
- Mitsubish-UFJ Lease (-1.9%) after Co. was downgraded to neutral at Mizhuo.

Notable movers in the ASX 200:
BHP (-2.2%) after Co. suspended mining operations at its Escondida copper mine.
- Drillsearch (-3.38%) following the weakness seen in energy prices.

Source: RANsquawk
Print
Wednesday, 27 May 2015
00:50

Says:
- Many members viewed QQE as having its intended effects.
- Members said Japan's financial conditions were accommodative.
- Japan could surpass its potential growth rate from FY 2015 through to FY 2016.
- Shirai proposed to say CPI to reach 2% in or around 2016.

Reaction details: 00:56

- No immediate reactions seen across Japanese asset classes with USD/JPY trading at 122.97 (-6 pips) last. 

Source: BBG
Print
Wednesday, 27 May 2015
00:41

EUR/USD
- 1.0800 (769mln), 1.0900 (543mln), 1.0940-55 (1.5bln), 1.1000 (1bln)

GBP/USD
- 1.5320 (251mln)

AUD/USD
- 0.7750 (302mln), 0.7800 (644mln), 0.7815-20 (500mln)

USD/JPY
- 121.80 (300mln), 123.00 (210mln), 124.00 (350mln)

Source: RANsquawk/IFR
Print
Wednesday, 27 May 2015
00:31

Says:

- A downward revision in Australian Capex data could spur pressure in AUD, further adding AUD and NZD are at most risk from USD strength. 

Analysis details: 00:44

RECAP:

- CBA sees risk that Australia's 2015/16 capital spending expectations will be upgraded from the first estimate released in February. 

- RBC forecasts Q1 private capital expenditure data should maintain a soft tone from Q4. 

Source: BBG
Print
Wednesday, 27 May 2015
00:30

Astellas (4503 JT)
- Co. will repurchase as much as 0.91% of shares for JPY 40bln. (BBG)

Japan Tobacco (2914 JT)
- Co. launched legal challenge against the UK plain-packaging law. (BBG)

Japan Steel Works (5631 JT)
- Co. to repurchase as much as 1.49% of shares. (BBG)

Mitsubishi Gas (4182 JT)
- Co. will repurchase as much as 2.21% of shares for JPY 9bln. (BBG)

Nisshinbo (3105 JT)
- Ballard Power received Co. order for next phase of work on technology for membrane fuel cells. (BBG)

Nomura Research (4307 JT)
- Co. will sell around 5.62mln shares to Nippon Life for JPY 26.2bln. (BBG)

Mitsubishi Materials (5711 JT)
- Co. is said to plan JPY 95bln investment in mergers and acquisitions over the next 2 years. (Nikkei)

Skymark (9204 JT)
- 2 of Co. major creditors which include Airbus (AIR FP) are said to oppose plans for ANA holdings (9202 JT) to buy into the Co. (Nikkei)
- Japan Transport Ministry is said to oppose Co. new president being selected from ANA holdings. (Asahi)

Marubeni (8002 JT)
- Co is said to build a JPY 40bln power plant in Myanmar. (Nikkei)  

Toshiba (6502 JT)
- Co. executives are said to take 10%-50% pay cut until dividend payment is restored. (Yomiuri)

Sompo Japan (8630 JT)
- Co. is said to have acquired a business license in Myanmar. (Kyodo)

Panasonic (6752 JT)
- Co is said to focus on its LED lighting operations with a target revenue of JPY 400bln by 2018. (Nikkei)

Mitsui & Co. (8031 JT)
- Co. is said to have purchased a minority stake in Triple Pte. (Business Times)

Broker Moves
- Mitsubish-UFJ Lease (8593 JT) downgraded to neutral at Mizuho.
- Nippon Steel (5401 JT) upgraded to outperform at Credit Suisse.
- Mitsubishi Heavy (7011 JT) upgraded to outperform at Credit Suisse.
- Sumitomo Heavy (6302 JT) downgraded to neutral at Credit Suisse.

Source: BBG/Nikkei/Kyodo/BusinessTimes
Print
Wednesday, 27 May 2015
00:30

ANZ Bank (ANZ AT)
- Co. launched several exchange traded funds (ETFs) to become the first Australian bank to enter the AUD 18bln Australian ETF market. (SMH)

BHP (BHP AT)
- Co. has suspended mining operations at its Escondida copper mine due to snowfall in North Chile. (TVN)

Echo Entertainment (EGP AT)
- Genting Group is said to possibly be near to receiving New South Wales government approval to raise its 6.6% stake in Echo. (AFR)

Evolution Mining (EVN AT)
- Co. shares halted for a placement announcement until possibly May 29th. (BBG)

Federation Centres (FDC AT)
- Co. said that Australia's government has no objection to the Novion (NVN AT) merger. (BBG)

Programmed Maintenance (PRG AT)
- Co. reports FY net AUD 25.7mln and adds that there is no certainty of a transaction to occur with Skilled (SKE AT). (BBG)

Transpacific (TPI AT)
- Co. is said to hire advisory firm Flagstaff Partners to strengthen defences against a takeover. (AFC)

Basic materials
- Gold futures slumped to a 2-week low in New York, while the China import iron ore benchmark rose for a 4th day, according to Metal Bulletin. (BBG).

Energy
- Oil prices declined yesterday after strong US data brought Fed rate hike expectations and led to a rally in USD-strength, with WTI crude futures briefly declining below the USD 58/bbl level. (BBG)  

Broker moves
- Technology One (TNE AT) downgraded to neutral at Macquarie.
- Virtus (VRT AT) upgraded to outperform at Macquarie.
- Evolution Mining (EVN AT) downgraded to neutral at Macquarie.

Source: BBG
Print
Wednesday, 27 May 2015
00:30

Posco (005490 KS)
- Co. said a definitive decision has not been made in regards to the potential sale or spin-off of Daewoo International’s (047050 KS) natural resources development unit. (BBG)

Korea Gas (036460 KS)
- Co. is to seek an auction to sell its LNG Canada stake. (BBG)

LG Chem (051910 KS)
- Co. is to supply energy storage systems to Duke Energy’s plant in the US (BBG)

Kia Motors (000270 KS)
- Co. is said to start the sales of the revamped K5 Sedan in July. (Donga)

Kumho Terminal (002990 KS)
- Co. is said to acquire Kumho Buslines (020560 KS) for KRW 415bln. (BBG)

Korea Aerospace (047810 KS)
- Co. shareholders are said to restart share sale. (MoneyToday)

Broker Moves
- Hyundai Steel (004020 KS) upgraded to buy at BNP Paribas.

Source: BBG/MoneyToday
Print
Wednesday, 27 May 2015
00:24

'RANsquawk source' - Signifies information that has not been formally tested through traditional journalistic channels and therefore is to be treated as unsubstantiated. Any interpretation of this information is taken at the reader’s own risk and is a representation of the rumours within the market place and never generated by ourselves

Source: ForexLive
Print
Wednesday, 27 May 2015
00:17

Says:

- There is almost no general inflation pressure in the New Zealand economy. 

- Imported deflation and price-sensitive consumers are maintaining a lid on prices.

- We expect inflation to stay below the middle of the Reserve Bank’s target band (between 1 and 3% on average over the medium-term) well into 2017.

Analysis details: 00:19

- OIS markets are currently pricing in a 51% chance of a 25bps cut to the OCR at the RBNZ meeting on June 11th.

 

Source: NZ Press
Print
Wednesday, 27 May 2015
00:15

- At the meeting, the central bank held its QQE program at an annual rise of JPY 80trl in monetary base as expected with an 8-1 voting split. However, they delayed timing for CPI to reach 2% and now expect its 2% target to be reached by H1 2016. The BoJ also lowered their 2015 CPI forecast to 0.8% from 1% and cuts 2015 GDP to 2% from 2.1%. 

- Interestingly, three of the nine board members openly doubted BoJ governor Kuroda’s ability to hit his target under even the new, delayed timetable. It is worth noting that the term for one of those dissenters (Morimoto) expires in June, and he is to be replaced in the July meeting by Yukitoshi Funo, which is assumed to be more supportive of to Kuroda’s cause.

- Nonetheless, today’s release is likely to be more of a formality, as we have already had a rate meeting since this meeting, where the central bank maintained the status quo by standing pat on its monetary policy. Moreover, participants will likely be focused on Friday’s May CPI data and comments from BoJ deputy governor Iwata who is due to speak later today.

 

Source: RANsquawk
Print
Wednesday, 27 May 2015
00:12
Source: BBG
Print
Wednesday, 27 May 2015
00:00
Source: BBG
Print
Tuesday, 26 May 2015
23:50
Tuesday, 26 May 2015
23:47
Analysis details: 23:50

- Of note, there were similar reports on SCMP last month. The reforms were said to ease regulations on mergers and acquisitions, allowing some of the weaker insurance companies to exit the market in an orderly manner. 

- The new rules would also likely provide more incentives for companies to undertake M&As. 

Source: BBG
Print
Tuesday, 26 May 2015
23:31
Analysis details: 23:30

- Of note, the Fonterra Cooperative Group is expected to announce its milk price for the upcoming 2015/16 season following its board meeting on Wednesday.

Tags: NZD - Forex - Asian Session
Source: fxstreet
Print
Tuesday, 26 May 2015
23:29

Forecasts:
- Declining iron ore demand, costs as well as cheap expansions.

Source: BBG
Print
Tuesday, 26 May 2015
23:20
Analysis details: 23:24

RECAP:

- Chinese M2 money supply (Apr) Y/Y 10.1% vs. Exp. 11.9% (Prev 11.6%); growth below the government target of 12% for 2015.

- Money Supply M1 (Apr) Y/Y 3.7% vs. Exp. 3.5% (Prev. 2.9%)

- Money Supply M0 (Apr) Y/Y 3.7% vs. Exp. 4.5% (Prev. 6.2%) 

Source: Xinhua
Print
Tuesday, 26 May 2015
23:00
Analysis details: 23:05

RECAP:

- Shanghai Comp finished yesterday's session up 2.02%; highest since Jan'08 while the Hang Seng closed up 0.9%. 

Source: Chinese Press
Print
Tuesday, 26 May 2015
22:30
Analysis details: 22:29

- Standard Chartered said that if USD/JPY closes above 122.18, there is a possibility that a rally could occur above 124.00. (USD/JPY finished the NY session above the 123.00 handle) 

- Morgan Stanley recommended selling EUR/USD at 1.0950 with a target of 1.0500 and a stop loss at 1.1050. 

- Citigroup recommended shorting EUR/TRY with a target of 2.870 and a stop loss at 2.665. 

-  BNP Paribas recommended a long USD/JPY strategy compared with a short EUR/USD position given that USD/JPY has room for long positioning to build. 

- RBC Capital recommended entering a long position on GBP/JPY as GBP continues to outperform its peers. 

- AUD was a notable underperformer today, with AUD/USD falling just shy of a 100 pips. Predicted Markets notes that today marks the 8th day in a row that the pair has broken the previous day's low. That's sequence has only lasted for a 9th day twice in the past 14 years. Of note, RBA Deputy Governor Lowe is due to speak during today’s session (0145BST/1945CDT) 

 

Source: RANsquawk
Print
Tuesday, 26 May 2015
22:15
Source: RTRS
Print
Tuesday, 26 May 2015
22:01

US

Fed vice chair Fischer (voter, soft dove) said that the central bank could decrease the pace of rate hikes if world economic growth declines.

The latest Fed discount rate minutes revealed four directors renewed their calls to increase the discount rate to 1.00% while Minneapolis was again in favour of a decrease to 0.50%. No market reaction was seen following the release given that the minutes were little changed from the previous meeting.

US Data recap:

US Consumer Confidence Index (May) M/M 95.4 vs. Exp. 95.0 (Prev. 95.2)

US New Home Sales (Apr) M/M 517K vs. Exp. 508K (Prev. 481K, Rev. 484k)

US Services PMI (May P) M/M 56.4 vs. Exp. 56.5 (Prev. 57.4)

US Durable Goods Orders (Apr) M/M -0.5% vs Exp. -0.5% (Prev. 4.0%, Rev. 5.1%)
- US Cap Goods Ship Non-defence Ex Air (Apr) M/M 0.8% vs. Exp. 0.2% (Prev. -0.4%, Rev. 1.0%).


FX

In FX markets, the USD-index moved higher following on from the strong US data with USD/JPY reaching its highest level since 2007 after triggering stops on the break of a touted barrier at the 122.00 and stops above a solid level of resistance at 122.04 which was the high in March.

ASIA

NZIER announces their forecast that the RBNZ will keep rates unchanged until mid-2017.

US Market Recap

US equities finished firmly in the red after strong core durable goods orders, consumer confidence and new home sales data prompted market participants to bring forward Fed rate hike expectations. Further weight was also felt following on from losses in European indices amid growing concerns that Greece will not be able to make its next IMF repayments which saw the VIX Index jump by the most this year. Finally, the DJIA finished down 1.04% at 18041.87, S&P 500 finished down 1.03% at 2104.22 and the NASDAQ-100 finished down 1.20% at 4472.96.

Treasuries closed higher with the US 10y yield falling beneath its 200DMA in the wake of significant weakness across the equity complex which saw the DJIA decline by almost 200 points. The latest 2y note auction failed to inspire price action with participants awaiting the performance of 5y, 7y and 2y FRN auctions later this week. At the pit close, T-notes settled at 127.29, up 20 ticks.

Source: RANsquawk
Print