ADVFN III Morning Euro Markets Bulletin -Tuesday, September 4th 2012-.

	ADVFN III	Morning Euro Markets Bulletin
	Daily world financial news

Tuesday, 04 September 2012

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

London open: Stocks slip before US data Market Movers techMARK 2,097.31 -0.47% FTSE 100 5,733.86 -0.43% FTSE 250 11,500.77 -0.02% - Moody's lower EU rating to 'negative' - Markets await US ISM data - Investors keep eyes pinned on ECB UK stocks pulled back on Tuesday morning following a strong performance the day before as some gloomy comments from Moody's and caution ahead of some US economic data dampened sentiment. Yesterday, "the FTSE bounced off support at 5,700 as traders piled back into high -beta stocks. A push towards 5,900 looks likely but a conviction buy requires an increase in volume, which is currently lacking," said Manoj Ladwa from TJ Markets this morning. Credit ratings agency Moody's last night maintained the European Union's 'Aaa' rating but lowered its outlook for the region from 'stable' to 'negative' to reflect "the negative outlooks now assigned to the Aaa sovereign ratings of key contributors to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45% of the EU's budget revenue". Investors were also nervous about some manufacturing data due out Stateside this afternoon. The US ISM manufacturing index is expected to improve from 49.8 last month to 50.0, the level that separates expansion and contraction. A better-than-expected figure may ease the Federal Reserve's concerns about the economy, disrupting hopes that the central bank will launch another round of quantitative easing at its meeting next week. The big day on equity markets this week will undoubtedly be Thursday when the monetary policy decisions from the Bank of England and the European Central Bank (ECB) are due. However, the latter will take centre stage as ECB President Mario Draghi is widely expected to unveil plans for buying sovereign debt in order to bring down bond yields in peripheral nations. REIT stocks and RBS hit by downgrades Real estate investment trust (REIT) Land Securities was among the worst performers early on after both JP Morgan Cazenove and UBS downgraded their ratings on the stock to 'neutral' this morning. UBS said that the stock's valuation reflects "fair value after a strong run". UBS also cut its ratings for sector peers British Land and SEGRO from 'buy' to 'neutral'. In contrast, the broker upgraded REIT peer Hammerson from 'neutral' to 'buy', saying that the low risk associated with the company is "underappreciated". Banking group Royal Bank of Scotland (RBS) was lower as the threat of a bruising legal battle with angry shareholders continues to hang over the company. Investec this morning lowered its recommendation on the shares from 'buy' to 'hold', saying that "after another modest rally, we throw in the towel". High-flying plant hire firm Ashtead jumped after raising profits guidance again as its new financial year got off to a strong start. Veterinary pharmaceuticals firm Dechra rose after revealing growing sales across all its major brands and profits ahead of market forecasts for the full year to the end of June. Recycled packing company DS Smith was in demand after saying it was trading in line with market expectations and expected substantial year-on-year growth in earnings per share. Also on the rise was Old Speckled Hen brewer Greene King which shrugged off the Olympics and the poor weather to make a robust start to the financial year. UK Event Calendar Tuesday September 04 INTERIMS Abbey Protection, Hydro International, Johnson Service Group, Lupus Capital, Quindell Portfolio, Stadium Group, Ubisense Group Plc INTERIM DIVIDEND PAYMENT DATE Inchcape, Man Group, Rexam INTERNATIONAL ECONOMIC ANNOUNCEMENTS Construction Spending (US) (15:00) ISM Prices Paid (US) (15:00) Producer Price Index (EU) (10:00) FINALS Alumasc Group, Craneware, Dechra Pharmaceuticals, Genus, Mcbride, Monitise AGMS Ashtead Group, Essar Energy , Greene King, Midas Income & Growth Trust, Polar Capital Technology Trust, Smith (DS), Tricorn Group UK ECONOMIC ANNOUNCEMENTS BRC Sales Monitor (00:01) PMI Construction (09:30) Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe open: Investors cautious after Moody´s lowers outlook on EU -Rehn: Fiscal union only possible in long-term -Members of EU Economic affairs committee chastised for leaks -Moody´s cuts outlook on EU to negative from stable -Dutch Socialists may favour granting ESM a banking license -Italian and Spanish 3 year bonds rise FTSE-100: -0.46% Dax-30: -0.36% Cac-40: -0.32% FTSE-Mibtel 30: 0.21% Ibex 35: 0.27% Stoxx 600: -0.31% The main European equity benchmarks have started the day on a mixed footing, with falls in most cases but small gains in the periphery. That following remarks attributed to European Central Bank President, Mario Draghi, to the effect that he may feel comfortable buying sovereign debt with a maturity of up to 3 years. Possibly worth pointing out however, at least one well-known commentator seems to believe that Draghi´s remarks may have been a little bit misrepresented. In any case, those embarrassing leaks from yesterday´s closed door meeting of the European Union parliament´s Economic Affairs Committee drew a sharp rebuke from the group´s chairwoman. Acting as a backdrop, credit ratings agency Moody's last night maintained the EU's 'Aaa' rating but lowered its outlook for the region from 'stable' to 'negative' to reflect "the negative outlooks now assigned to the Aaa sovereign ratings of key contributors to the EU budget: Germany, France, the UK and the Netherlands, which together account for around 45% of the EU's budget revenue". Lufthansa hit by strikes From a sector stand-point the weakest performance is now to be seen in the following industrial groups within the DJ Stoxx 600: personal goods (-0.69%), automobiles (-0.07%) and technology (-0.58%). Deutsche Lufthansa has canceled flights from Berlin, Frankfurt and Munich because of strikes this morning. Swiss data comes in well below estimates Swiss gross domestic product contracted at a 0.1% quarter-on-quarter rate in the second quarter, below the 0.2% gain forecast. Spanish unemployment rose by 38,200 in August, after the previous month´s 27,800 person fall. Eurozone producer price data for the month of July is due out at 10:00. Slight gains in the Euro and oil The euro/dollar is now edging higher by 0.18% to the 1.2610 dollar mark. US Market Report Markets Closed Newspaper Round Up Tuesday newspaper round-up: Fragmentation, EU, Tax-cuts Interest rates paid by companies in the Eurozone's weaker economies have surged, highlighting the bloc's fragmentation as the European Central Bank loses control of borrowing costs. ECB data on Monday showed Spanish small businesses face the highest bank borrowing costs in almost four years – while interest rates paid by German rivals are at record lows. The sharply diverging interest rates have put southern European companies increasingly at a competitive disadvantage to their northern European rivals. They provide a gloomy backdrop to this week's ECB governing council meeting, which will discuss plans for intervening in Eurozone government debt markets, as investors price in the chance of a break-up of the 14-year old monetary union, The Financial Times says. Moody's has lowered the European Union's long-term issuer rating outlook from stable to negative, saying the move reflected credit risks of the bloc's key budget contributors. "It is reasonable to assume that the EU's creditworthiness should move in line with the creditworthiness of its strongest key member states," it said, citing negative outlooks for Britain, France, Germany and the Netherlands. Despite Moody's pronouncement, the euro rose to a two-month high of $1.2618 in Asian trading on Tuesday, compared with $1.2598 late Monday in London trade, AFP reported. Nevertheless, Moody's maintained the EU's triple-A rating, saying its "two key rationales" for assigning the bloc its highest rating remained unchanged: its "conservative budget management" and "the creditworthiness and support provided by its 27 member states," The Telegraph explains. A senior Conservative has called on George Osborne to administer emergency "shock therapy" to the economy or risk delivering decades of decline. David Davis called for a swath of tax cuts and the scrapping of business red tape as he warned the Chancellor that he would not be excused if he failed to take drastic measures to kick-start growth. In a withering critique of the Government's economic performance, Mr Davis accused ministers of seeking excuses, such as the Eurozone crisis and the debt inheritance from Labour, rather than solutions. "An alibi is not a policy," he said. "There is a risk that by focusing on parcelling out blame we accept our circumstances with too much fatalism," The Times reports. BP is being sued for tens of millions of dollars in the US by institutional investors who allege the oil major misled them over its safety policies and the scale of the spill in the Gulf of Mexico. The company's shares more than halved – wiping billions of pounds off the value of the group – in the wake of the April 2010 disaster, which killed 11 men and caused the worst offshore spill in US history. Six investors who bought shares in BP in London prior to the accident or in its immediate aftermath claim that they would not have done so at the price they did "had they known the truth". They include the South Yorkshire Pensions Authority, Skandia Global Funds and GAM Fund Management. The funds allege that they lost "substantial sums as a result of BP's misleading statements", and are suing under Texas law for common law fraud and negligent misrepresentation, and for statutory fraud. That after the US Supreme Court blocked foreign investors seeking damages in federal courts, The Telegraph says. David Cameron will reboot the Conservative machine today as he uses a wide-ranging reshuffle to force the pace of government reforms. The Prime Minister has appointed a disciplinarian to tame rebellious Tory MPs and will announce a new public face of the party to take it on the uphill path to the 2015 election. Andrew Mitchell, Mr Cameron's new chief whip, spent yesterday helping the Prime Minister to plot his first reshuffle, which may see more than 20 ministers leave government. Mr Cameron is expected to name either Jeremy Hunt or Grant Shapps as the new Tory chairman, charged with energising a dwindling activist base and representing the party on the airwaves, writes The Times. Leni Gas & Oil is threatening court action against Mediterranean Oil & Gas (MOG), raising questions over whether it may have been misled before selling its interests in Malta at a low price. Leni said that on August 1 it sold its 10% stake in the Malta licence to MOG, which already owned 90%, for the nominal figure of $1 (63p) plus $19,050 in past costs. Leni said it would write off £1.9m in costs related to the licence. On August 23 MOG said it had sold 75% of its Maltese blocks for $10m to Genel Energy, whose chief executive is former BP chief executive Tony Hayward, prompting a statement from Leni expressing "surprise". Analysts said the deal, under which Genel will also pay for drilling two wells, could imply Leni's stake had been worth $9m, according to The Telegraph. A group of eight MPs have written to Barclays's new chief executive in protest at the bank's "deeply disappointing" action over the mis-selling of interest rate swaps. In a letter to Anthony Jenkins, seen by The Daily Telegraph, the MPs accuse the bank of failing to tackle the "difficult and distressing problem" which they claim is "threatening the long-term viability" of hundreds of small and medium-sized companies. The MPs call for Mr Jenkins, who was appointed only five days ago, to clarify how the bank intends to release companies from swap arrangements and to guard them from "punitive measures" if they claim compensation.

ADVFN III Evening Euro Markets Bulletin -Monday, September 3rd. 2012-.

	ADVFN III	Evening Euro Markets Bulletin
	Daily world financial news

Monday, 03 September 201

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

London close: Miners jump on hopes of central bank action Market Movers techMARK 2,107.18 +0.53% FTSE 100 5,758.41 +0.82% FTSE 250 11,503.13 +0.81% - Central banks in China, US and Europe expected to act - UK manufacturing beats expectations - Fresnillo leads miners higher Stocks markets in the States may have been closed for Labour Day but that didn't stop bourses in Europe from registering decent gains on Monday, with London's Footsie starting the week strongly, up 0.82 per cent on the day. "Despite continued poor economic data from China, as well as Europe, investors appear to be taking comfort from the fact that this is likely to make further monetary easing more likely in the near term, thus supporting asset prices," said market analyst Michael Hewson from CMC Markets. According to a monthly survey by HSBC, the China manufacturing purchasing managers' index (PMI) dropped from 49.3 in July to 47.6 in August, its lowest reading since March 2009. The news follows the official PMI data from last week which fell to a nine-month low of 49.2. Any figure below 50 indicates a contraction. "However, the data does suggest that Chinese policymakers have plenty of room to promote easing tools to spur growth and have previously this year re-armed the country by cutting rates. As such, hopes that China will soon have no choice but to stimulate growth have been the main driver of today's gains," said market strategist Ishaq Siddiqi from ETX Capital. The UK's own manufacturing data beat expectations last in August, though it still posted its fourth straight month of contraction. The manufacturing PMI rose to 49.5, from 45.2 in July, a four-month high and better than the 46 reading expected by analysts. Nevertheless, the focus of the markets this week will undoubtedly be on the European Central Bank (ECB) monetary policy meeting on Thursday at which President Mario Draghi is widely expected to unveil plans for buying sovereign debt in order to bring down bond yields in peripheral nations. Following on from last week's climax of the Federal Reserve Chairman Ben Bernanke's closely watched speech at the Jackson Hole symposium, markets widely believe that further quantitative easing (QE) is now on the cards for the central bank's next meeting on September 13th and 14th. A close eye will be keep on the upcoming payrolls and manufacturing figures due out this week in the US, which will likely be the deciding factor in whether the Fed pulls the trigger or not. FTSE 100: Miners gain on stimulus hopes A strong showing by the miners assured that the Footsie was firmly in the red on Monday afternoon in spite of some steep falls for some heavyweight stocks, such as Glencore, Admiral and ARM Holdings. Disappointing Chinese economic figures, which usually results in a sell-off in the mining sector, had the adverse effect today as speculation mounted that Chinese policy-makers would act to stimulate the world's second-largest economy, one of the biggest sources of demand for the miners. Meanwhile, precious metals peers Fresnillo and Randgold were among the highest risers on hopes that silver and gold prices (dollar-denominated commodities) will rise as the US dollar weakens after the potential launch of QE3. Other miners, such as Vedanta, Kazakhmys and Rio Tinto, also finished the day with decent gains. However, Glencore was bucking the trend on the back of rumours that it will be sticking to its original offer for mining group Xstrata in spite of growing opposition to the terms. Qatar Holdings, which owns around 12% of the group, confirmed last week that it would vote against the merger at the shareholder meeting on Friday. Car insurance giant Admiral was under heavy selling pressure on Monday afternoon after Credit Suisse downgraded its rating on the shares from 'outperform' to 'neutral', saying that there isn't much upside left in the stock. Canaccord Genuity also downgraded Admiral to 'sell' today, while Exane BNP Paribas reiterated its 'underperform' recommendation. Chip group ARM Holdings was also lower after Deutsche Bank downgraded its recommendation from 'hold' to 'sell'. "Despite reflecting many of ARM's long-term growth drivers such as rising royalty rates and penetration of new markets in our model, we expect ARM's [earnings per share] growth to slow down to mid-teens," said analyst Kai Korschelt. FTSE 250: Talvivaara gains after reassuring investors Finnish zinc and nickel mining company Talvivaara was a high riser after it denied it will be cutting jobs as part of a cost savings plan. Rumours had been circulating that the low price of nickel would force a reduction in headcount. Shares in Lonmin, one of the world's biggest platinum producers, rose on after reports the firm had agreed details of a wage deal with striking miners. Work on the company's Marikana project in South Africa has been at a standstill for three weeks after a pay dispute turned violent, culminating in a bloody showdown with police that left 34 miners dead. Africa-focused oil group Ophir Energy rose after significantly upping estimates of potential resources at one of its sites in Tanzania. Meanwhile, house-builders were on the up after Panmure Gordon today lifted its targets across the sector. Barratt Developments, Taylor Wimpey and Bovis Homes all benefitted from the forecast change. FTSE 100 - Risers Fresnillo (FRES) 1,627.00p +4.23% Kazakhmys (KAZ) 610.00p +2.87% Vedanta Resources (VED) 892.00p +2.82% Sage Group (SGE) 303.50p +2.46% Wolseley (WOS) 2,602.00p +2.36% BT Group (BT.A) 222.50p +2.25% Rio Tinto (RIO) 2,795.50p +2.19% Hargreaves Lansdown (HL.) 633.00p +1.93% Next (NXT) 3,644.00p +1.93% Tullow Oil (TLW) 1,389.00p +1.91% FTSE 100 - Fallers Admiral Group (ADM) 1,150.00p -3.04% ARM Holdings (ARM) 559.50p -2.53% Aggreko (AGK) 2,337.00p -0.97% Morrison (Wm) Supermarkets (MRW) 278.20p -0.64% Ashmore Group (ASHM) 327.00p -0.61% Resolution Ltd. (RSL) 214.60p -0.56% Kingfisher (KGF) 274.10p -0.54% Xstrata (XTA) 947.20p -0.53% Severn Trent (SVT) 1,726.00p -0.29% ICAP (IAP) 316.90p -0.25% FTSE 250 - Risers Talvivaara Mining Company (TALV) 140.00p +11.64% Barratt Developments (BDEV) 158.60p +5.73% Persimmon (PSN) 734.00p +5.16% Centamin (DI) (CEY) 83.25p +4.72% Soco International (SIA) 351.50p +4.36% Bovis Homes Group (BVS) 492.60p +4.10% Hochschild Mining (HOC) 450.00p +4.05% Taylor Wimpey (TW.) 53.25p +3.90% Ophir Energy (OPHR) 586.00p +3.81% Phoenix Group Holdings (DI) (PHNX) 507.50p +3.57% FTSE 250 - Fallers CSR (CSR) 310.00p -4.79% Bumi (BUMI) 303.20p -4.65% Petra Diamonds Ltd.(DI) (PDL) 101.70p -2.68% Menzies(John) (MNZS) 613.50p -2.62% Redrow (RDW) 151.10p -2.58% Cape (CIU) 237.00p -2.23% Heritage Oil (HOIL) 190.10p -2.01% Kentz Corporation Ltd. (KENZ) 390.10p -1.86% Henderson Group (HGG) 104.20p -1.79% PayPoint (PAY) 705.00p -1.67% Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe close: All eyes on ECB bond plan European stocks up - Draghi hints at three year bond purchases - Nokia comeback continues FTSE 100:+0.82% Dax 30:+0.63% Stoxx 600: +0.84% Cac 40: +1.19% Ibex 35: +0.18% FTSE MIB: +1.10% European markets climbed on Monday as hopes for central bank stimulus rose on both sides of the Atlantic. European Central Bank President Mario Draghi is expected to unveil a bond buying programme after the bank's policy meeting on September 6th. On monday he was quoted as telling lawmakers at the European Parliament that the ECB is considering purchasing bonds with maturities of up to three years. Last week Draghi's US counterpart, Fed Chairman Ben Bernanke indicated he too was open to "non-conventional" measures which most observers have interpreted as opening the door to further bond purchases. The UK based research firm Markit Economics says the European manufacturing sector contracted by more than initially estimated in August. Its manufacturing Purchasing Manager's Index for the euro area was revised downward to 45.1 from an initial estimate of 45.3. Anything below 50 implies the sector is shrinking. COMPANIES Food and beverage stocks were the strongest on the Stoxx 600, rising 1.38%. The weakest segment was automobiles & parts, which fell 0.93%. Italian drinks maker Campari will buy Jamaican rum maker Lascelles DeMercado for $414.8m in a bid to hasten its push into overseas markets. It rose around 7%. Nokia continued its recent comeback, rising 4.7% as investors wonder, post Apple's court victory over Samsung, whether the ailing Finnish firm may yet yield more value. The Spanish government is expected to inject up to €5bn into failed lender Bankia, which has just reported a €4.45bn first half loss. The group gained 8% on the news. Fresenius Medical (+0.76%) has abandoned its takeover offer for Rhone Klinikum. OTHER MARKETS The euro was up 0.14% against the dollar at $1.2596 at 17:02. Futures contracts on a barrel of brent crude had risen 0.81% by 16:53. CAC 40 - Risers Pernod Ricard (RI) € 88.67 +3.50% Cap Gemini (CAP) € 30.00 +2.65% Sanofi (SAN) € 66.51 +2.24% L'Oreal (OR) € 99.73 +2.04% Technip (TEC) € 85.27 +1.83% Danone (BN) € 50.40 +1.72% Vallourec (VK) € 37.50 +1.71% Essilor International (EI) € 70.57 +1.70% Saint Gobain (SGO) € 27.73 +1.65% Accor (AC) € 25.62 +1.63% CAC 40 - Fallers Renault (RNO) € 36.82 -0.93% Peugeot (UG) € 5.96 -0.91% Credit Agricole (ACA) € 4.62 -0.45% ST Microelectronics (STM) € 4.71 -0.15% US Market Report Markets Closed Broker Tips Broker tips: Morrisons, Prudential, Home Retail Nomura has downgraded its rating for supermarket group Morrisons after analysing the recent Kantar grocery survey. According to the survey, Morrisons' volume growth lagged behind its counterparts by around 4% at the last data point. "We recognise MRW's ability to preserve profitability, having faced volume headwinds from both Asda's Netto conversions (abating) and TSCO's reset (ongoing), and expect resilient H1 interims (September 6th). However, MRW's survey volume trend proves the tipping point for us to revise our recommendation to 'neutral' (from 'buy')," the broker said. Galvan Research and Trading has recommended to buy shares of insurance giant Prudential, saying that the stock's recent underperformance is 'unwarranted'. "Although recent weeks have seen the market plump for sector peer Aviva rather than Prudential, Galvan Research regards the Pru as a 'buy' on the basis of the recent relative share price underperformance and the fact that the fundamental downside remains cushioned by very strong Asian growth," said Galvan's head of research, Andrew Gibson. Investec has upgraded its rating for Argos and Homebase owner Home Retail Group, saying that the firm's second-quarter trading statement next week could see a pick up in sentiment. "While the market short position in Home Retail has retreated, it remains very high and we therefore believe the shares should react positively to evidence of more resilient trading at Argos," Investec said on Monday morning. "With share price risk weighted to the upside in our view, we are therefore moving from 'sell' to 'buy', with a new target of 109p (70p previously)."

RTTNews Forex Market Update -September 3rd, 2012-

Economic News

Australia's Monthly Inflation Rises In August

Australia's TD Securities - Melbourne Institute monthly inflation gauge rose 0.6 percent in August, the largest monthly increase since March 2011, following an increase of 0.2 percent in June, the survey showed. (Sep 3, 2012) Full Article 

Indonesia Inflation Rises Marginally In August

Indonesia's inflation rose slightly to 4.58 percent in August from 4.56 in July, Statistics Indonesia said Monday. Economists had forecast the rate to slow to 4.42 percent. (Sep 3, 2012) Full Article 

UK To Speed Up Infrastructure Projects, Osborne Says

The British government will introduce a bill in Parliament in the next few weeks to speed up planning decisions and financing of private sector building projects to jump start the recession-hit economy, Chancellor George Osborne said in an interview to the BBC television. (Sep 3, 2012) Full Article 

SNB Chief Reiterates Commitment To Defend Franc Ceiling

The Swiss National Bank will continue to enforce the minimum exchange rate with the utmost determination, central bank chief Thomas Jordan said Monday. (Sep 3, 2012) Full Article 

India's Exports Decline In July

India's exports declined 14.8 percent annually in July, the latest figures from the Ministry of Commerce and Industry showed Monday. (Sep 3, 2012) Full Article 

U.K. Manufacturing Sector Rebounds In August

The U.K. manufacturing sector rebounded in August from a month ago at a faster-than-expected pace to a near-neutral level due to a lesser degree of decline in production, a closely watched survey showed Monday. (Sep 3, 2012) Full Article

Forex Top Story

South Korea August Inflation At 12-Year Low

Inflation in South Korea eased to its weakest level in 12 years in August, boosting expectations that the central bank may ease policy further to support economic growth. (Sep 3, 2012) Full Article

Japan Capital Spending Rises For Third Straight Quarter

Japan's companies stepped up their investment in plant and machinery during the April-June period for a third straight quarter, but at a slower pace than forecast by economists. (Sep 3, 2012) Full Article

China Non-Manufacturing Growth Improves In August

China's non-manufacturing sector growth accelerated in August, data from the China Federation of Logistics and Purchasing (CFLP) showed Monday. (Sep 3, 2012) Full Article

India August Manufacturing Growth Slowest This Year

India's manufacturing sector expanded at the slowest pace so far this year in August due to weak external demand and output disruptions caused by power outages, data from a survey showed Monday. (Sep 3, 2012) Full Article 

Australia Retail Sales Fall Unexpectedly In July

Australia's retail sales declined unexpectedly in July and at the fastest pace in almost two years as consumers trimmed their spending. (Sep 3, 2012) Full Article

Political News

GCC Seeks Quick Solution To Syrian Bloodshed

Foreign Ministers of the six-nation Gulf Cooperation Council (GCC) have stressed the need for finding a quick solution to end the bloodbath in Syria. (Sep 3, 2012) Full Article

Japan To Expedite Purchase Of Disputed Islands

The Japanese government has reached a general agreement to purchase the disputed Senkaku Islands in the East China Sea from their owner for about $26 million. (Sep 3, 2012) Full Article

US Pledges To Help Iraq Conduct Next General Elections

The United States has pledged to assist the Iraqi government for holding its next provincial and national elections scheduled for 2013 and 2014 respectively. (Sep 3, 2012) Full Article 

Angola's Ruling Party Poised To Win National Elections

Angola's ruling MPLA party headed by President Jose Eduardo dos Santos appears to have successfully retained its hold on power in the south-western African nation by securing an unbeatable lead in last week's national elections, according to partial results declared on Sunday. (Sep 3, 2012) Full Article 

New Zealand To Withdraw Troops From Afghanistan In April Next

New Zealand formally announced on Monday that it intended to withdraw its troops from Afghanistan by the end of April 2013, confirming earlier comments made in this regard by Prime Minister John Key. (Sep 3, 2012) Full Article 

Currency Alerts

Australian Dollar Falls After Retail Sales, China PMI

The Australian dollar declined against other major currencies in the early Asian session on Monday after the release of country's disappointing retail sales data in July. (Sep 3, 2012) Full Article

Pound Strengthens On Better-than-expected U.K. PMI

In the early European on Monday, the pound spiked up against other major currencies after a report showed that the country's manufacturing PMI rose more than expected in August. (Sep 3, 2012) Full Article 

General News

Israel Evicts Unauthorized West Bank Settlement

Israeli police and security forces evicted hundreds of Jewish settlers from an illegal settlement outpost east of the West Bank city of Ramallah on Sunday, two days ahead of a standing Supreme Court order to do so. (Sep 3, 2012) Full Article

Five Mutilated Bodies Found In Honduras

Police in Honduras have found the mutilated bodies of four teenage girls and a young man dumped in rubbish bags in the port city of La Ceiba, media reports citing officials said on Sunday. (Sep 3, 2012) Full Article 

Reports: 9 Turkish Soldiers Killed In Clashes With Kurdish Rebels

At least nine Turkish security personnel have been killed in clashes with members of the outlawed Kurdistan Workers' Party (PKK) in the country's south-eastern province of Sirnak, media reports citing officials said on Monday. (Sep 3, 2012) Full Article

Egypt Lifts Ban On Veiled Women Presenters In State TV

Fatma Nabil read the 12:00 noon news bulletin on Sunday wearing a dark suit with headscarf, marking the end of decades-long ban on veiled female news presenters from going on air in Egyptian state television. (Sep 3, 2012) Full Article 

HRW Urges India To Accept UN Rights Body Recommendations

Human Rights Watch (HRW) has called on the Indian government to accept the recommendations by United Nations member-states at the U.N.'s Universal Periodic Review (UPR) to address the country's most serious human rights problems. (Sep 3, 2012) Full Article 

Gold Mineweb Top Stories - Monday, September 3rd 2012-: Silver gives you more - at least potentially

TOP STORIES | Monday , 03 Sep 2012                                                      Silver gives you more - at least potentially Silver analyst Ted Butler remains convinced that silver's multiplier effect will continue to make it one of the best investment assets as it has been overall for the past 10 years - manipulation or no.    Monday , 03 Sep 2012 Gold holding near five month high In early trade in London on Monday, gold prices firmed, drawing strength from QE hints in Friday's Jackson Hole address by Fed chair Ben Bernanke    Monday , 03 Sep 2012 Chasing GoldQuest in the Dominican Republic Junior Precipitate Gold, backed by the likes of Adrian Fleming and Eric Coffin, makes a strong area play on GoldQuest Mining.    Monday , 03 Sep 2012 Inter-union dispute sees Gold Fields KDC mine strike continue South Africa's mining labour unrest continues at Gold Fields' big KDC gold mine complex as union internal dispute surfaces.    Monday , 03 Sep 2012 The fundamental attraction of gold and gold stocks - Don Coxe Don Coxe* explains how demographic shifts are affecting the price of gold and delves into the logic of investing in gold as a long-term strategy. Interview with The Gold Report.    Saturday , 01 Sep 2012 Brazil presses Venezuela on alleged Amazon massacre by gold miners The Brazilian government said Friday it had asked the Venezuelan government to provide it with any information on whether or not the attack had happened and if Brazilians had been involved.    Monday , 03 Sep 2012 Signs of QE inevitability in gold's post Jackson-hole gains Will he, won't he? "Quanticipation might now be driving the gold price regardless of Fed jaw-boning," says Adrian Ash.    Monday , 03 Sep 2012 Central bank gold buying: Much more than just a driving force The structural benefits of gold are now showing clearly and the need to side-line it from the monetary system could prove a dangerous handicap for the monetary system.    Monday , 03 Sep 2012 Collective bargaining won't solve SA mining's problems: AMCU Claims stalemate in Lonmin peace talks with conveners applying ‘divide and rule' tactics    Friday , 31 Aug 2012

COMPANY RELEASES                                                      Gold Fields says unlawful and unprotected strike at KDC East continues Norseman Gold announces preliminary results to end June 2012 West African Resources raises $4.4 million to accelerate Sartenga discovery Brigus Gold Completes Sale of Calais Notes Tsodilo Agrees to Private Placement Financing with IFC Investment of $2 Million Turquoise Hill and Chalco agree to terminate SouthGobi lock-up agreement Continental Receives Environment Permit to Begin Construction of an Underground Tunnel & Road at Buriticá West African Resources Raises $4.4 Million to Accelerate Sartenga Discovery Belvedere Reports Financial & Operating Results for Second Quarter of 2012

ADVFN III Morning Euro Markets Bulletin - Monday September 3rd., 2012-

ADVFN III	Morning Euro Markets Bulletin
Daily world financial news

Monday, 03 September 2012

London Market Report
FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts
London open: Miners gain as stimulus hopes lift the mood Market Movers techMARK 2,099.17 +0.15% FTSE 100 5,750.94 +0.69% FTSE 250 11,497.09 +0.76% - Chinese PMI drops, but stimulus hopes increase - US data in focus ahead of Fed meeting - Eyes turn to ECB conference Stock markets across Europe opened moderately higher on Monday morning as some gloomy data from China spurred hopes that the country would join the list of nations who are expected to act to stimulate economic activity. Nevertheless, today is likely to be relatively quiet on the markets due to the Labour Day holiday in the US. According to a monthly survey by HSBC, the China manufacturing purchasing managers' index (PMI) dropped from 49.3 in July to 47.6 in August, its lowest reading since March 2009. The news follows the official PMI data from last week which fell to a nine-month low of 49.2. Any figure below 50 indicates a contraction. However, said market analyst Michael Hewson from CMC Markets said this morning: "Despite the sharp drop, the falls have raised expectations of additional easing measures by the People's Bank of China in the next week or so." Following on from last week's peak of the Federal Reserve Chairman Ben Bernanke's closely watched speech at the Jackson Hole symposium, markets widely believe that further quantitative easing (QE) is now on the cards for the central bank's next meeting on September 13th and 14th. However, investors will be keeping a close eye on payrolls and manufacturing data due out this week as any decent figures could ease the Fed's concerns about the economy, delaying (or even preventing) any action. Meanwhile, as analyst Craig Erlam from Alpari explains this morning, the focus on markets now shifts from one central bank to another, the European Central Bank (ECB). "Last month Mario Draghi [ECB President] hinted that the ECB is about to restart a programme of government bond purchases. Since Draghi's original comments, details of the programme have been leaked out in the media. This has led people to believe that it will be unveiled at the press conference on Thursday." Miners dominate the risers early on Nine out of the top 10 risers were from the mining sector in the opening hour as stimulus hopes helped the outlook for the demand of commodities. Evraz, Fresnillo, Antofagasta and Rangold were among the best performers. Several stocks were being moved by broker ratings changes this morning. Chip group ARM Holdings was a heavy faller on the FTSE 100 after Deutsche Bank downgraded its recommendation to 'sell', while supermarket firm Morrisons was in the red after Nomura cut its rating to 'neutral'. Meanwhile, Home Retail was making gains after Investec upgraded its rating on the stock from 'sell' to 'buy', saying that shares should react positively "to evidence of more resilient trading at Argos" after the group's second-quarter trading update next week. Mining group Talvivaara surged early on after reassuring investors that rumours regarding the development of the company's cash position during the remainder of the year and ongoing or planned personnel reductions are incorrect. Africa-focused oil group Ophir Energy rose after significantly upping estimates of potential resources at one of its sites in Tanzania. FTSE 100 - Risers Evraz (EVR) 232.90p +3.51% Fresnillo (FRES) 1,614.00p +3.40% Vedanta Resources (VED) 889.00p +2.48% Kazakhmys (KAZ) 607.50p +2.45% Randgold Resources Ltd. (RRS) 6,475.00p +2.45% Eurasian Natural Resources Corp. (ENRC) 309.20p +2.42% Antofagasta (ANTO) 1,131.00p +2.17% BHP Billiton (BLT) 1,875.00p +2.12% Rio Tinto (RIO) 2,787.50p +1.90% Rolls-Royce Holdings (RR.) 836.00p +1.83% FTSE 100 - Fallers ARM Holdings (ARM) 561.00p -2.26% Admiral Group (ADM) 1,167.00p -1.60% Morrison (Wm) Supermarkets (MRW) 276.70p -1.18% Glencore International (GLEN) 383.50p -0.40% Ashmore Group (ASHM) 328.20p -0.24% AstraZeneca (AZN) 2,929.50p -0.24% Shire Plc (SHP) 1,913.00p -0.16% Babcock International Group (BAB) 936.50p -0.05% FTSE 250 - Risers Talvivaara Mining Company (TALV) 137.20p +9.41% Ophir Energy (OPHR) 598.00p +5.93% Home Retail Group (HOME) 99.35p +5.86% Petropavlovsk (POG) 360.00p +3.48% Raven Russia Ltd (RUS) 64.45p +3.12% New World Resources A Shares (NWR) 278.80p +2.92% Dixons Retail (DXNS) 18.06p +2.91% Paragon Group Of Companies (PAG) 194.20p +2.70% Kenmare Resources (KMR) 39.33p +2.69% Lonmin (LMI) 588.00p +2.62% FTSE 250 - Fallers Henderson Group (HGG) 103.60p -2.36% Bumi (BUMI) 312.40p -1.76% CSR (CSR) 320.50p -1.57% Cape (CIU) 239.00p -1.40% Shanks Group (SKS) 88.80p -1.11% ITE Group (ITE) 200.90p -0.94% Jupiter Fund Management (JUP) 223.60p -0.80% Menzies(John) (MNZS) 625.00p -0.79% Ashtead Group (AHT) 281.20p -0.78% UK Event Calendar Monday September 03 INTERIMS Biome Technologies, Cupid, Pennant International Group, Staffline Group INTERIM DIVIDEND PAYMENT DATE St. Modwen Properties QUARTERLY PAYMENT DATE JPMorgan Claverhouse Inv Trust INTERNATIONAL ECONOMIC ANNOUNCEMENTS PMI Manufacturing (EU) (09:00) PMI Manufacturing (GER) (08:55) Q4 Kofax FINALS Kofax, Sweett Group AGMS Galileo Resources UK ECONOMIC ANNOUNCEMENTS PMI Manufacturing  (09:30) FINAL DIVIDEND PAYMENT DATE BT Group  Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe open: Slight gains at start of crucial week -Markets take cue from Wall Street on Friday -ECB President to speak to EU parliament this afternoon -Majority of Germans do not support further aid for Greece FTSE-100: 0.49% Dax-30: 0.23% Cac-40: 0.53% FTSE-Mibtel 30: 0.33% Ibex 35: 0.09% Stoxx 600: 0.32% The main European equity benchmarks have begun the day slightly higher, following Wall Street´s lead from last Friday. Those gains came in reaction to US Federal Reserve President Ben S.Bernanke´s speech at Jackson Hole (Wyoming) which seem to point to more quantitative easing measures to come. In that same vein, investors seem undaunted by the bevy of weaker than expected economic data out in Asia overnight, in China, India and Australia. European Central Bank President Mario Draghi is expected to speak to the European parliament -in a closed session- on proposals for a banking union this afternoon. Also worth pointing out, a new poll from the Financial Times shows that only a quarter of Germans favour further financial aid for Greece to stay within the Eurozone. This as the Mediterranean country presses for a two year extension of its fiscal adjustment program and ahead of a meeting, tomorrow, between its Prime Minister and Germany´s Finance Minister. Not to be missed, Wall Street will remain closed today in observance of Memorial Day, which ought to keep trading conditions subdued. However, volatility could rise towards the end of the week, as investors react to the European Central Bank´s and Bank of England´s rate-settng meetings, as well as the latest monthly employment data out Stateside on Friday. Spain to inject up to €5bn into Bankia The Spanish government is expected to inject up to €5bn into failed lender Bankia, which has just reported a €4.45bn first half loss. Fressenius Medical has abandoned its take-over offer for Rhone Klinikum. From a sector stand-point the best performance on the DJ Stoxx 600 is now to be seen in shares of the following industrial groups: basic resources (0.96%), utilities (0.57%) and personal goods (0.80%). Eurozone Manufacturing PMI due out later Markit´s Eurozone purchasing managers´ index for the month of August is slated for release at 08:58. Slight falls in other asset classes The euro/dollar is now down by 0.04% to the 1.2570 dollar mark. Front month Brent crude futures are falling by 0.11% to the 114.44 dollar level on the ICE. US Market Report US close: Bernanke will push ahead with QE3, but opposition exists -A further round of QE could be forthcoming in September Dow Jones Industrial: 0.69% Nasdaq Comp.: 0.60% S&P 500: 0.51% The main New York equity benchmarks closed the week slightly lower but up as a whole for the month of August, albeit if on very low trading volumes. The Dow Jones Industrials gained 0.6% for the month while the S&P 500 rose by 0.3%. That despite losses in some Eurozone periphery debt markets, such as Spain´s, after S&P downgraded the rating on the autonomous region of Catalonia. Helping stocks along perhaps, US Fed chairman Ben S.Bernanke defended the rationale behind a possible further expansion of his policy of quantitative easing (QE) at the Jackson Hole Symposium. Some noted observers believe that this heralds a new round of stimulus come the Fed´s next meeting in two weeks´ time. Be that as it may, it would seem the Fed chairman faces quite a bit of political opposition, especially from Republicans on Capitol Hill. US Airways and American Airlines were two of the day´s best gainers on news of a possible tie-up. From a sector stand-point platinum (4.59%), gold (4.42%), mining (2.53%) and tires (2.49%) were the best performers. Economic data comes in mostly ahead of consensus The final reading on the University of Michigan´s consumer sentiment index for the month of August has come in at 74.3, well ahead of the 73.6 expected by the consensus. The Chicago NAPM´s regional manufacturing sector purchasing managers´ index for the month of August has come in at 53 points, versus 53.7 for the month before (Consensus: 53.2). Both the new orders and employment sub-indices improved. Factory orders grew by 2.8% month-on-month in July (Consensus: 2.0%), after a fall of 0.5% in June. Bonds gain as Bernanke will probably proceed with further QE3 10 year US Treasuries gained 22/32 dollars, with yields falling on the same retreating to 1.55%. Front month West Texas crude futures rose by 2.05% to the 96.56 dollar per barrel mark on the NYMEX. S&P 500 - Risers Newmont Mining Corp. (NEM) $50.68 +4.39% Freeport-McMoRan Copper & Gold Inc. (FCX) $36.11 +4.09% Goodyear Tire & Rubber Co. (GT) $12.20 +3.57% National Oilwell Varco Inc. (NOV) $78.80 +3.41% SAIC Inc. (SAI) $12.21 +3.39% Corning Inc. (GLW) $11.99 +3.18% Newfield Exploration Co (NFX) $32.63 +3.13% Masco Corp. (MAS) $14.16 +2.91% LSI Corporation (LSI) $7.79 +2.91% Denbury Resources Inc. (DNR) $15.49 +2.79% S&P 500 - Fallers Frontier Communications Co. (FTR) $4.62 -2.53% Juniper Networks Inc. (JNPR) $17.44 -1.75% Tenet Healthcare Corp. (THC) $5.19 -1.70% CONSOL Energy Inc. (CNX) $30.20 -1.66% Altria Group Inc. (MO) $33.96 -1.39% Philip Morris International Inc. (PM) $89.30 -1.38% R.R. Donnelley & Sons Co. (RRD) $10.98 -1.35% Netflix Inc. (NFLX) $59.72 -1.26% Family Dollar Stores Inc. (FDO) $63.64 -1.15% Phillips 66 Common Stock (PSX) $42.00 -1.13% Dow Jones I.A - Risers Intel Corp. (INTC) $24.83 +2.31% American Express Co. (AXP) $58.30 +1.98% Microsoft Corp. (MSFT) $30.82 +1.65% Alcoa Inc. (AA) $8.56 +1.42% Chevron Corp. (CVX) $112.16 +1.11% Caterpillar Inc. (CAT) $85.33 +1.02% Bank of America Corp. (BAC) $7.99 +1.01% United Technologies Corp. (UTX) $79.85 +1.00% Cisco Systems Inc. (CSCO) $19.08 +0.95% 3M Co. (MMM) $92.60 +0.92% Dow Jones I.A - Fallers Merck & Co. Inc. (MRK) $43.05 -0.16% AT&T Inc. (T) $36.64 -0.14% Nasdaq 100 - Risers Randgold Resources Ltd. Ads (GOLD) $102.97 +5.11% Electronic Arts Inc. (EA) $13.33 +2.54% Altera Corp. (ALTR) $37.33 +2.39% Intel Corp. (INTC) $24.83 +2.31% Lam Research Corp. (LRCX) $34.13 +2.22% Autodesk Inc. (ADSK) $31.05 +2.10% eBay Inc. (EBAY) $47.47 +1.98% Flextronics International Ltd. (FLEX) $6.73 +1.97% Applied Materials Inc. (AMAT) $11.69 +1.92% Linear Technology Corp. (LLTC) $33.03 +1.77% Nasdaq 100 - Fallers Netflix Inc. (NFLX) $59.72 -1.26% Dell Inc. (DELL) $10.59 -0.84% Costco Wholesale Corp. (COST) $97.87 -0.73% Fossil Inc. (FOSL) $84.95 -0.68% Seagate Technology Plc (STX) $32.01 -0.62% Adobe Systems Inc. (ADBE) $31.27 -0.60% DIRECTV (DTV) $52.09 -0.52% Baidu Inc. (BIDU) $111.44 -0.51% Cerner Corp. (CERN) $73.14 -0.48% Vodafone Group Plc ADS (VOD) $28.92 -0.45% Newspaper Round Up Monday newspaper round-up: Small business, ECB, China George Osborne has made his latest bid to prop up the faltering economy by revealing plans to launch a small business bank to make it easier for growing companies to gain access to "multi-billion pounds" of government funding. The Chancellor believes the bank will play a key role as part of a series of measures planned to provide an autumn boost for the economy and meet business calls for a growth strategy. However, no new government funding will be put into the bank. "We are getting on top of the deficit," Mr Osborne said. "These are difficult times for the British economy, it's a difficult time for the world economy but our economy is healing. We have to do more and we have to do it faster," The Telegraph reports. The European Central Bank came under renewed pressure to do more to tackle the euro crisis as the head of Organisation for Economic Cooperation and Development and the Spanish Prime Minister urged action yesterday. Angel Gurria, the OECD Secretary-General, called for an immediate resumption of bond-buying by the ECB and said that without it the system was at stake and the euro at risk. Mariano Rajoy echoed that sentiment in an interview with Bild, adding that recent remarks by the ECB head, Mario Draghi, showed "determination to solve the problem." The pleas came as Mr Draghi seeks to grind down German-led resistance to government bond buying, which has the effect of bringing down the cost of borrowing of troubled Eurozone countries such as Spain and Italy, The Times says. China's manufacturing activity fell to its lowest level in more than three years in August as the global economic slowdown continues to weigh on the world's largest exporter, HSBC has said. The final reading of the British banking giant's closely-watched purchasing managers' index (PMI), which gauges nationwide manufacturing activity, slid to 47.6 last month from 49.3 in July, HSBC said in a statement. This was the lowest since March 2009 and marked the 10th consecutive monthly fall, the bank said. It chimed with the official PMI figure released at the weekend, which hit a nine-month low of 49.2. A PMI reading above 50 indicates expansion, while one below 50 points to contraction. The World Bank's Food Price Index soared by 10% in July, but global grain stocks are currently high enough to prevent a repeat of 2008's food riots, according to the World Bank. Things could rapidly change though. The index, which weighs the US dollar price of internationally traded food commodities, shows that sharp price increases were felt across the board in July. Rice, which fell 4%, was the only major exception. The World Bank was reassured by the decline in rice prices. "Large supplies of rice from bumper crops and increasing competition for Thailand (the world's largest exporter) have led to a recent rice price decline," it said. "Weak demand from the eurozone and a slight growth slowdown in China and the developing world in general all favour price moderation." However, it warned that "the jury was still out", citing potential threats such as major producers pursuing "panic policies" such as restricting exports and weather developments in the near future "especially related to el Niño," according to The Telegraph. EDF has been holding talks with China about sharing the soaring cost of building £10bn worth of new reactors at Hinkley Point, Somerset. The move underlines growing pressure on the French company's internal finances and has reignited a fractious debate about Communist state-run businesses playing a critical role in sensitive western energy infrastructure. The overtures to Beijing's state corporations – as well as approaches to Middle Eastern sovereign wealth funds – come as EDF faces growing investment demands in France and the UK that have sent debt levels rocketing to €39.7bn (£30bn). "We have always said we were open to the idea of other partners investing in the project. As we approach our final investment decision, it is right to consider funding options including seeking additional partners," said an EDF spokesman, The Guardian writes. Only a quarter of Germans think Greece should stay in the Eurozone or get more help from other countries in the currency union, a Financial Times/Harris poll has found. The overwhelming verdict highlights Angela Merkel's domestic dilemma as she comes under pressure in Europe to agree more time or money for Greece to get its €174bn second bailout back on track. Negative German sentiment, detailed in the poll conducted in August, stands in marked contrast to that in Italy and Spain, where respondents were far more reluctant to cut Athens loose. The diverging views pose a big challenge to EU leaders who this month must again grapple with how to deal with a new Greek government poised to ask for two more years to implement painful economic and government reforms demanded by international lenders as part of their three-year bailout program, The Financial Times explains.