January 26th, 2015
Daily Market Commentary
- The Dallas Fed Manufacturing Business Index was reported at -4.4.
- A survey of the business climate in Germany resulted in a score of 106.7, slightly above estimates of 106.3.
- Oil fell from the lowest closing price in almost six years amid signs that Saudi Arabia’s new king will maintain its production policy, bolstering speculation that a global glut will persist. Copper slid to the weakest since July 2009.
- Gold fell the most this year amid speculation an anti-austerity party’s victory in Greek elections won’t result in the country leaving the currency bloc.
- Iron ore retreated to the lowest level in more than five years as a slowdown in China hurt the outlook for demand in the world’s biggest user while the largest mining companies add to supply, boosting a surplus.
- Bond traders reeling from the Bank of Canada’s shock interest-rate cut are betting Governor Stephen Poloz will do it again. Yields on two-year government bonds are lower than those on six-month bills for the first time in almost two years, suggesting another cut.
- Goldcorp Inc.’s quest for new mines is a matter of survival, according to the company’s chairman. “The only way mining companies can grow is through acquisitions and the only way they can survive is through acquisitions. Sometimes, I’m not sure people outside the mining business appreciate that,” Ian Telfer said in a recent interview. (Globe)
- U.S. stock-index futures fell, following the Standard & Poor’s 500 Index’s first weekly gain this year.
- AT&T Inc., the second-largest U.S. mobile-phone carrier, agreed to buy NII Holdings Inc.’s Mexican business for $1.875 billion minus debt.
- Post Holdings Inc., the owner of the Grape-Nuts and Honeycomb breakfast cereals, agreed to buy MOM Brands Co. for $1.15 billion to add bagged and hot cereals to its product line-up.
- Two pension funds that own Oracle Corp. stock said the company’s board should let shareholders nominate their own candidates for directors, change the compensation of executives, and make it easier to talk with the software maker.
- European stocks climbed for a seventh day amid optimism the European Central Bank’s quantitative-easing measures will spur economic growth in the region.
- UBS Group AG, Switzerland’s biggest bank, said its trading businesses didn’t suffer a loss in the havoc that erupted when the Swiss central bank unexpectedly scrapped its limit on the franc.
- Asian stocks rose, with the regional benchmark index set for its highest close in two months, after Draghi unveiled an expanded stimulus plan.
- Li Ka-shing’s Hutchison Whampoa Ltd. started exclusive talks to buy O2, Telefonica SA’s U.K. wireless carrier, for as much as 10.25 billion pounds ($15 billion) in the biggest overseas purchase by the billionaire.
- Asian stocks fell, with the regional benchmark index retreating from a two-month high, after Greek party pledged to renegotiate the terms of an international bailout.
- · Lenovo Group Ltd. reintroduced the Motorola brand in China on Monday, unveiling the Moto X smartphone and four other devices to regain market share lost to Xiaomi Corp
*All information is taken from Bloomberg, unless otherwise noted.