GATA | THE GATA DISPATCH -October 3, 2012-: Thom Calandra: Colombia via Toronto -- InterBolsa drama, seizure, and empanadas

Thom Calandra: Colombia via Toronto -- InterBolsa drama, seizure, and empanadas

Submitted by cpowell on 10:45AM ET Saturday, November 3, 2012. Section: Daily Dispatches 1:30p ET Saturday, November 3, 2012

GATA's longtime friend the financial writer Thom Calandra was perhaps the first mainstream financial journalist to take note of the gold price suppression scheme when he worked at MarketWatch.com, the news organization he co-founded. He recently revived his gold- and silver-mining-oriented newsletter, The Calandra Report, and today provided a sample of the letter to be shared with GATA supporters along with his pledge to donate to GATA 8,000 shares of his largest mining company holding when the gold price passes $2,000. That is a most generous pledge.
So yesterday's Calandra Report is appended. A year's subscription is $54 and frequency of publication seems to be running at around twice weekly. Subscription information is here:

https://www.paypal.com/cgi-bin/webscr?cmd=_s-xclick&hosted_button_id=UNB...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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Colombia Via Toronto: InterBolsa Drama, Seizure, and Empanadas
The Calandra Report
Friday, November 2, 2012
TORONTO -- Heading back here in two days. Poking around some fresh Colombia leads.
In the meantime, this just in: Colombia regulators seized a leading brokerage as liquidity ebbed. InterBolsa Comisionista is a broker there I have known for many years. We discussed in previous reports the work of one of its mining analysts, Gabriel Bayona Fetecua, a brilliant geologist who follows Solvista and other junior prospectors.

A growing number of Canada and USA-domiciled natural resources developers trade locally on the Colombian exchanges. The largest that is a native, Mineros SA, was falling in price Friday. But then gold was taking a beating as well at the hands of a rising U.S. dollar. Several oil companies, including Colombia's largest, Ecopetrol, also were declining. Regulators said they were undertaknig the seizure to protect InterBolsa investors and customers. In what might not be a coincidence, the action came on a day when gold was declining more than $35. Such a one-day decline, after a fall Thursday, might have unwound InterBolsa trading positions on its proprietary desk. Note I said "might have."
More speculative: If that is so, in the perverse way markets work, equities of companies that trade largely on outside exchanges yet do business in Colombia might benefit from the regulatory action. We'll keep an eye on this.

InterBolsa handled almost a third of all trading activity in Colombia. Its ETF partner is Global X Funds of Manhattan. Global X operates exchange traded funds that represent country indexes -- among others, Colombia and Brazil. InterBolsa and its parent also have operations in Brazil, Panama, and elsewhere in Latin America. As one of several gold prospector CEOs told me this morning, "This is not just bad or very bad. It's #$@%# real bad."

The Global X/InterBolsa FTSE-20 Colombia Fund, an ETF, is up about 70 percent since January 2010. Colombia's economy and currency, the peso, are among the best-performing in Latin America and among Second World nations. It is my favorite nation outside of Tiburon, California. I expect extreme fallout from the seizure in coming days, perhaps linked to exchange-traded funds in general or to proprietary trading.
FAMILY EVENTS: I will be meeting the CEO of Gran Colombia Gold for a second time (Maria Consuelo Araujo likely does not remember the first time, at a crowded conference booth in Medellin, or Toronto, or Vancouver). Members of the The Calandra Report family are invited to a 5 p.m. cocktail and reception this coming Tuesday in Toronto. I will be there with several analysts and investors who are examining the company's recent gold and silver note financings.

Gran Colombia and Toronto bank GMP Securities this week closed a $100 million financing using gold notes backed by Segovia-produced gold in Antioquia, Colombia. I know some of the largest purchasers of the notes, whose capital raising will aim to build a mill at Segovia and reduce what plainly is an expensive operating cost of $1,200 to $1,300 per ounce.

Gran Colombia's El Marmato, as longtime TCR family members might recall, was the reason I started returning to Colombia in 2007. Marmato is one of the world's 20 largest gold (and silver) deposits, pegged as high as 20 million ounces when the entire mountain is factored.

Attending will be the Gran Colombia Gold CEO Araujo. Conshe, as she is called, was Colombia's minister of foreign affairs from August 2006 to February 2007. She also served as minister of culture from August 2002 to February 2006. She studied diplomacy and economics in Milano, Italia. She could be president of Colombia one day. Her influence has assisted Gran Colombia with the operation or purchase of El Marmato, Segovia, Zancudo, and other properties in Colombia. Who knows? Perhaps she also had something to do with Madonna deciding to appear at this month in Medellin and not the capital city of Bogota.

TCR family, I do not own shares or warrants of Gran Colombia (GCM in Canada), nor do I own the interest-bearing gold or silver notes. The silver notes trade in Canada as do warrants that are starting to look attractive below 10 cents. I am considering a tour of Gran Colombia Gold's Segovia operation in Antioquia this month. The cocktail party this week will be downtown in Toronto and, in Colombian style, offer what I think will be delectable empanadas and other fulfilling fare. Get an invite by e-mailing investorrelations@grancolombiagold.com. Tell them The Calandra Report sent you.

CONSOLATION: U.S. Global Funds's Frank Holmes the other day schooled us in the geometry of volatility. Holmes and his Texas company (GROW in USA) handle almost $2 billion in assets. Much of that is in resources and in equities of emerging markets. Thus shares of GROW rise and fall like a banshee devil cross-dressed as a lemur.

Holmes explains volatility -- sharp rises and falls in equities, gold, oil, and such -- in strict statistical terms, with his Canadian flair for drama. I owe our family a review of his latest rap, but until then, metals and metals equities investors might take note that "historically, if gold rises 30 percent over an X-month period, there is a 93 percent (or is it 98 percent?) chance it will retrace most of that move." And vice-versa. GROW has a 5 percent dividend right now and I am thinking of buying shares. Holmes is an active buyer of gold, silver, and metals equities and purchases on behalf of his mutual funds shares of coal companies and even those interest-bearing gold and silver denominated notes that we pointed to just above. More to come.

TCR'S ANOINTED FIVE: Colt Resources (GTP in Canada), Solvista Gold (SVV in Canada), Gold Standard Ventures (GSV in Canada and USA), Pilot Gold (PLG in Canada), and Seafield Resources (SFF in Canada). All others researched in these reports to our TCR family are highly speculative.

On price points for the anointed five, Pilot Gold and Seafield are within acceptable purchase limits at $1.65 and 14 cents Canadian, respectively. Our other three, Solvista, Colt, and Gold Standard, dwell well above our earliest coverage price points.
Still, those wary of dollar strength and gold weakness who wish to sell their Solvista shares with profits from 25 cents to 30 cents to the current level of 75 cents should be my guest. The shares failed to regain $1 Canadian a week ago even as CEO Miller Oprey visited potential investors in St. Louis, Texas, and elsewhere. That concerns me. I will hold personally and sell only if the shares go below 70 cents.

I saw Friday that a Peruvian unit, the same one whose increased stake in Antioquia Gold (AGD) has capped that Colombia operator's stock price, is now doing the same with Batero Gold (BAT in Canada). All I can say is that the group, Consorcio Minero Horizonte, or CMH, is by throwing premium cash at Canada-domiciled metals prospectors, effectively shutting down any stock appreciation. Just look at shares of AGD.
Batero operates next to Seafield Resources (SFF), which we research here at TCR and which is a holding, one of the anointed five. If you believe as I do that the Quinchia district of Colombia, on the other side of El Marmato, will one day produce untold riches for its operators, then the one with the potential for sharp price appreciation is Seafield. I own it, as we all know, at the current price.

Don't sweat the gold volatility, folks. As Mr. Holmes, a sometimes kick-boxer (so is Bob Dylan, by the way) tells me, "Learn to understand volatility. If gold falls 10 percent in a day, and it does that rarely, there is a 90-odd percent chance it will rise just as much later on. Buy it."
On another note, Holmes expects many long-short eqity hedge funds to have dissolved, evaporated, Fifi Goes Poof, by year-end or early 2013. He also sees merger and takeover consolidation among Colombian oil companies.
I am so in I am out of breath.

Personal purchases that in no way should be duplicated here in recent days include Cayden Resources, a Mexico prospector in the Guerrero Gold Belt, and Pacific Coal (PAK in Canada), a Colombia coal operator. As stated numerous times, I am increasing my holdings of all things Colombia-related if they are 1) cheap, 2) up to snuff on growth and assets, and 3) have folks on board I trust. I have not been to Cayden's nor to Pacific Coal's properties but I hope to.

I also am excited about the progress NuLegacy Gold is making on its Red Hill property drilling in Nevada. I also see Gold Standard Ventures (GSV) as being eminently buyable if the shares go below $1.55.

* * *
Join GATA here:
Vancouver Resource Investment Conference
Sunday-Monday, January 20 and 21, 2013
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...

GATA | THE GATA DISPATCH on November 2, 2012-: Bundesbank official assures NY Fed that gold issue will go away

Bundesbank official assures NY Fed that gold issue will go away

Submitted by cpowell on 02:31PM ET Friday, November 2, 2012. Section: Daily Dispatches ... Just like the gold itself?
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5:42p ET Friday, November 2, 2012

Our friend the German financial journalist Lars Schall calls attention to remarks delivered Thursday by a member of the executive board of the German Bundesbank, Andreas Dombret, at a reception held at the Bundesbank's office in New York in the presence of the president of the Federal Reserve Bank of New York, William Dudley. Dombret's remarks, appended here, confirm that, as GATA often has reported, Germany's gold reserves are held in large part at the New York Fed to facilitate their presumably secret trading, since, as Dombret notes, "Frankfurt is not a gold-trading center."

Dombret's remarks seem meant to pretend that the clamor and controversy over the foreign vaulting and secrecy around the German gold reserves will end quickly, preserving the trust between the Bundesbank and the Federal Reserve.


And yet the Bundesbank continues to refuse to answer whether it has any gold swap arrangements with the Fed or any other agency of the U.S. government:
http://www.gata.org/node/9363
http://www.gata.org/node/11880
If the Bundesbank won't answer about that to the Germany people, why should they have any trust in their own central bank or any central bank?
The clamor and controversy probably won't be going away before the Bundesbank and Fed answer that question truthfully. And of course if that ever happens, the clamor and controversy will have only just begun.
The section of Dombret's remarks about the gold issue, copied from the Bundesbank's Internet site, is appended.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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Excerpts from Remarks by Andreas Dombret
Member of the Executive Board
Deutsche Bundesbank
Reception of the Bundesbank Representative Office, New York
Thursday, November 1, 2012
http://www.bundesbank.de/Redaktion/EN/Reden/2012/2012_11_01_dombret_rema...
... Please let me also comment on the bizarre public discussion we are currently facing in Germany on the safety of our gold deposits outside Germany -- a discussion which is driven by irrational fears.
In this context, I wish to warn against voluntarily adding fuel to the general sense of uncertainty among the German public in times like these by conducting a "phantom debate" on the safety of our gold reserves.
The arguments raised are not really convincing. And I am glad that this is common sense for most Germans. Following the statement by the president of the Federal Court of Auditors in Germany, the discussion is now likely to come to an end -- and it should do so before it causes harm to the excellent relationship between the Bundesbank and the U.S. Fed.
Let's get back to facts and figures: I would like to remind you that our gold reserves are part of the German currency reserves. These were accumulated over time thanks, in part, to Germany's economic boom in the 1950s and 1960s. Germany's growing economic strength, especially its strong external position, resulted in rather large trade account surpluses, most of them acquired in U.S. dollars. At that time, the International Monetary System, known as the Bretton Woods system, was dominated by the U.S. currency. As long as this system was in force, which was up until 1971, the U.S. Fed was obliged to exchange its currency for gold.
Any current account surplus thus resulted in an increase in Germany's gold reserves. This gold was stored in U.S. vaults for obvious reasons. This was not only the case for the gold held by the Bundesbank -- it was, in fact, common practice. By the way: It was the only practical thing to do, since running a trade account deficit meant a decrease in gold stocks.
Thus, we are now looking back at 60 years not only of fruitful cooperation in many fields and international fora, but also of storing gold and trading via the New York Fed. As a matter of fact, it is sensible for us to do so in New York, as Frankfurt is not a gold-trading venue.
Throughout these 60 years we have never encountered the slightest problem, let alone had any doubts concerning the credibility of the Fed. And for this, Bill [Dudley, president of the Federal Reserve Bank of New York], I would like to thank you personally. I am also grateful for your uncomplicated cooperation in so many matters. The Bundesbank will remain the Fed's trusted partner in future, and we will continue to take advantage of the Fed's services by storing some of our currency reserves as gold in New York.
At the same time, you can be assured that we are confident that our gold is in safe hands with you. The days in which Hollywood Germans such as Gerd Frobe, better known as Goldfinger, and East German terrorist Simon Gruber masterminded gold heists in U.S. vaults are long gone. Nobody can seriously imagine scenarios like these, which are reminiscent of a James Bond movie with Goldfinger playing the role of a U.S. Fed accounting clerk.

While gold is important, we have to combat a crisis of confidence in the euro area. This is the task we need to concentrate on. And we will do so.

* * *
Join GATA here:
Vancouver Resource Investment Conference
Sunday-Monday, January 20 and 21, 2013
Vancouver Convention Centre West
Vancouver, British Columbia, Canada
http://www.cambridgehouse.com/event/vancouver-resource-investment-confer...

ADVFN III World Daily Markets Bulletin -November 2nd, 2012-.

ADVFN III	World Daily Markets Bulletin
Daily world financial news

Friday, 02 November 2012

US Market

11/2/2012 12:12 PM ET  After moving sharply higher over the course of the previous session, stocks have given back some ground during trading on Friday. While the monthly employment report showed stronger than expected job growth, traders seemed reluctant to continue buying stocks after yesterday's rally. The major averages have moved roughly sideways in recent trading, stuck in negative territory. The Dow is down 38.87 points or 0.3 percent at 13,193.75, the Nasdaq is down 9.27 points or 0.3 percent at 3,010.79 and the S&P 500 is down 2.14 points or 0.2 percent at 1,425.45. The pullback by stocks comes despite the release of a report from the Labor Department showing that the U.S. economy added more jobs than anticipated in the month of October. The report said non-farm payroll employment increased by 171,000 jobs in October following an upwardly revised increase of 148,000 jobs in September. Economists had expected employment to increase by about 125,000 jobs compared to the increase of 114,000 jobs originally reported for the previous month. Despite the continued job growth, the unemployment rate edged up to 7.9 percent in October from 7.8 percent in September due to an increase by the size of the workforce. The modest increase by the unemployment rate matched economist estimates. James Knightley, senior economist at ING, said, "Over the past week we have seen GDP, the ISM report, construction activity, confidence and the employment report point to a strengthening U.S. economy." "With the unemployment rate trending downwards and the economy adding jobs this is boosting incomes and the feeling of job security," he added. While the report helped to push stocks higher at the start of trading, buying interest waned not long after the open. Even though the job growth surpassed expectations, concerns about the global economic outlook continued to weigh on investor sentiment. Some traders also felt that the upbeat data was priced into the markets with yesterday's rally and looked to do some profit taking rather than pushing stocks even higher. Sector News Gold stocks have shown a substantial move to the downside, moving lower along with the price of the precious metal. With gold for December delivery tumbling $32.90 to $1,682.60 an ounce, the NYSE Arca Gold Bugs Index is down by 3.5 percent. Considerable weakness has also emerged among networking stocks, as reflected by the 2.4 percent loss being posted by the NYSE Arca Networking Index. Alcatel-Lucent (ALU) has helped to lead the sector lower, falling by 10.8 after reporting disappointing third quarter results. Steel, computer hardware, and airline stocks have also come under pressure on the day, while strength remains visible among commercial real estate stocks. Other Markets In overseas trading, stock markets across the Asia-Pacific region moved notably higher during trading on Friday, benefiting from the overnight rally on Wall Street. Japan's Nikkei 225 Index advanced by 1.2 percent, while Hong Kong's Hang Seng Index ended the day up by 1.3 percent. Meanwhile, the major European markets have turned mixed over the course of the trading day. While the U.K.'s FTSE 100 Index has dipped below the unchanged, the German DAX Index and the French CAC 40 Index remain up by 0.3 percent and 0.4 percent, respectively. In the bond market, treasuries are seeing modest weakness but have climbed well off their worst levels of the day. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 2.3 basis points at 1.738 percent. Canadian Market CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts 11/2/2012 11:07 AM ET  After moving higher in the past straight six sessions, Canadian stocks were lingering in the red Friday morning as commodities faltered and jobs data from both sides of the border came in mixed. While Canadian jobs growth stalled in October following two consecutive months of increases, employment in the U.S. increased by more than economists had anticipated. Also, trades preferred to cash in on recent gains as the main index surged to a six-week high in the previous session. The S&P/TSX Composite Index lost 67.19 points or 0.54 percent to 12,432.57, after gaining over 300 points or nearly 2.5 percent in the past six straight sessions. The price of crude oil oil was leveling off from its two-week high Friday morning as traders speculate that demand for crude will be lower than anticipated in the aftermath of Hurricane Sandy. Crude for December shed $1.63 to $85.46 a barrel. In the oil patch, Crescent Point Energy (CPG.TO) and Niko Resources (NKO.TO) were down around to 4 percent each. Penn West Petroleum (PWT.TO) lost about 5 percent after slipping into the red in third quarter, reporting a net loss of C$67 million or C$0.14 per share compared to a net income of C$138 million or C$0.29 per share last year. The company declared a dividend of C$0.27 per share for the quarter. The price of gold moving lower Friday morning as the US dollar was trading firm versus a basket of currencies amid the release of non-farm payroll data. Gold for December lost $30.50 to $1,685.00 an ounce. Among gold plays, Agnico-Eagle Mines (AEM.TO) and New Gold (NGD.TO) dived around 5 percent each. Goldcorp. (G.TO), Barrick Gold (ABX.TO) and Allied Nevada Gold (ANV.TO) were down around 2 percent each. Pharmaceutical company Valeant Pharmaceuticals International, Inc. (VRX.TO) eased about 0.50 percent after reporting net income of $7.65 million or $0.02 per share for the third quarter, sharply lower than $40.86 million or $0.13 per share in the prior-year quarter. Excluding items, adjusted income for the quarter was $357.5 million or $1.15 cash earnings per share, compared to $211.91 million or $0.66 cash earnings per share in the year-ago quarter. Business data provider Thomson Reuters Corp. (TRI.TO) posted higher third-quarter earnings of $462 million compared with last year's $369 million, with quarterly earnings per share improving to $0.56 from $0.44 a year ago. However, adjusted earnings from continuing operations were $445 million lower than $453 million in the previous year, while corresponding adjusted earnings remained flat at $0.54 per share. Analysts expected the company to report earnings of $0.48 per share for the quarter. The stock slipped 1.5 percent. Printing papers and pulp products company Resolute Forest Products (RFP.TO) swung to profit in third quarter, reporting net income of $31 million or $0.32 per share compared with a loss of $44 million or $0.46 per share in the 2011 third quarter. However excluding $24 million of special items, quarterly net income was $7 million or $0.07 per share, down significantly from $50 million, or $0.50 per share last year. Analysts were expecting the company to report earnings of $0.23 per share for the quarter. The stock dived 4 percent. Meanwhile, base-metals miner Inmet Mining (IMN.TO) rose over 5 percent after reporting improved third quarter net income of $116.23 million or $1.67 per share compared to $97.99 million or $1.41 per share last year. Analysts were expecting the company to earn C$1.04 per share for the quarter. Engineering and construction company SNC-Lavalin Group (SNC.TO) gained over 5 percent after reiterating its 2012 net income guidance in a range of C$325 million - C$340 million. The company reported a lower third-quarter net income at C$114.9 million or C$0.76 per share compared to C$124.5 million or C$0.82 per share last year. In economic news, Statistics Canada said the nation added 1,800 jobs in October, missing economists expectations for 5000 job creations. The unemployment rate remained at 7.4 percent. On an yearly basis, employment increased 1.3 percent or 229,000, all in full-time work. From the U.S., the Labor Department said non-farm payroll employment increased by 171,000 jobs in October following an upwardly revised increase of 148,000 jobs in September. Economists had expected employment to increase by about 125,000 jobs compared to the increase of 114,000 jobs originally reported for the previous month. Despite the continued job growth, the unemployment rate edged up to 7.9 percent in October from 7.8 percent in September due to an increase by the size of the workforce. The modest increase by the unemployment rate matched economist estimates. Separately, the Commerce Department said factory orders increased by 4.8 percent in September after tumbling by a revised 5.1 percent in August. Economists had expected orders to increase by about 4.9 percent compared to the 5.2 percent drop originally reported for the previous month Elsewhere, activity in euro zone's manufacturing sector decreased for the fifteenth consecutive month in October, though at a marginally slower rate than estimated earlier, as domestic market conditions remained subdued and trade flows deteriorated further, final data released by Markit Economics showed. The seasonally adjusted purchasing managers' index decreased to 45.4 in October from 46.1 in September. The latest reading was slightly higher than 45.3 seen in the preliminary estimates. Meanwhile, Germany's manufacturing sector contraction in October was less severe than expected earlier, but activity dropped for the eighth consecutive month, final survey data released by Markit Economics revealed. The Markit/BME Germany Purchasing Managers' Index fell to 46 from 47.4 in September. European Market FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts 11/2/2012 1:20 PM ET  The Swiss stock market finished Friday's session with a gain and closed above the 6,700 point mark. The market got off to a rather sluggish start, but rose steadily following the release of the better than expected U.S. jobs report for October. However, profit taking set in during late trading. The U.S. jobs report showed better than expected jobs growth and the figures from the prior month were revised upward. The data sparked gains among financial stocks, as well as economically sensitive stocks and luxury goods. The Swiss Market Index climbed by 0.62 percent Friday and finished at 6,701.37. The SMI ended the week with an increase of 1.5 percent. The Swiss Leader Index gained 0.68 percent Friday and the Swiss Performance Index added 0.61 percent. Luxury goods companies Richemont and Swatch extended their gains from the previous session. Richemont climbed by 2.9 percent and Swatch increased by 2.8 percent. Sulzer was also among the biggest gainers, with an increase of 2.1 percent, after the company held an "Investor Day." Among the defensive heavyweights, Novartis rose by 1.1 percent and Roche climbed by 0.7 percent. Nestle lagged behind, with a gain of 0.1 percent. Among the cyclical stocks, Kuehne + Nagel increased by 1.5 percent and SGS added 1.5 percent. Sika and Sonova both rose by 1.5 percent and Adecco advanced by 1.1 percent. 11/2/2012 12:55 PM ET  The majority of the European markets ended Friday's session in the green, following the better than expected U.S. jobs report for October. The markets were slightly negative in early trade, as investors exercised caution ahead of the report. The initial reaction to the jobs report was very positive, propelling the markets into the green. However, as the session progressed, those gains began to slowly erode. Investor will now shift their focus to the U.S. presidential election, which will take place on Tuesday, November 6th. Greece is "way behind" its bailout program goals due to the standstill in consolidation and basic structural reforms, Bundesbank Executive Board member Andreas Dombret said Thursday. "Politicians and the EU are willing to assist Greece, but Greece must, first and foremost, help itself" he said in a speech at the reception of the Bundesbank Representative Office. Announcing and passing laws is not enough if the administration and the general public undermine them, Dombret said. "It is now the task of the Troika to decide impartially whether Greece meets the conditions for further assistance." A leading think tank on Friday lowered its growth forecast for the British economy next year, while stressing that the fiscal consolidation efforts in the U.K. and Europe are having a large negative impact on growth. The gross domestic product is expected to grow 1.1 percent in 2013, with no contribution from net trade, the National Institute of Economic and Social Research (NIESR) said in a quarterly report. This was lower than its July forecast of 1.3 percent growth. The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.42 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.19 percent. The DAX of Germany climbed by 0.38 percent and the CAC 40 of France gained 0.49 percent. The FTSE 100 of the U.K. declined by 0.06 percent, but the SMI of Switzerland rose by 0.62 percent. In Frankfurt, Beiersdorf increased by 7.26 percent. The company reported growth in profit and revenues for the first nine months of the year. Deutsche Telekom fell by 3.52 percent, on reports that the company's dividend payouts could be reduced by a third in 2013. In Paris, Alcatel Lucent dropped by 6.67 percent, after reporting a quarterly loss. Total rose by 0.59 percent, following an upgrade from Societe Generale. In London, Tullow Oil climbed by 2.70 percent. JP Morgan upgraded its rating on the stock to "Overweight" from "Neutral." Royal Bank of Scotland declined by 2.23 percent, after the company reported a third quarter loss. Admiral Group fell by 5.25 percent. The company announced in its third quarter update that group turnover was down 2 percent. Activity in Eurozone's manufacturing sector decreased for the fifteenth consecutive month in October, though at a marginally slower rate than estimated earlier, as domestic market conditions remained subdued and trade flows deteriorated further, final data released by Markit Economics showed Friday. The seasonally adjusted purchasing managers' index (PMI) decreased to 45.4 in October from 46.1 in September. The latest reading was slightly higher than 45.3 seen in the preliminary estimates. Germany's manufacturing sector contraction in October was less severe than expected earlier, but activity dropped for the eighth consecutive month, final survey data released by Markit Economics revealed Friday. The Markit/BME Germany Purchasing Managers' Index fell to 46 from 47.4 in September, well below the long-term average of 52. The final score came in higher than the flash estimate of 45.7. French manufacturing activity continued to decline in October, but at a more moderate pace than thought earlier, detailed results of a survey by Markit Economics revealed Friday. The headline purchasing managers' index, a seasonally adjusted index designed to measure the performance of the manufacturing economy, rose to 43.7 from 42.7 in September. The flash reading was 43.5. The British construction sector expanded modestly in October, contrary to economists' expectations for a decline, data released by Markit Economics showed Friday. The seasonally adjusted purchasing managers' index (PMI) for the construction sector increased to 50.9 in October from 49.5 in September. In index rose above the no-change 50 mark that separates growth from contraction, while economists expected a lower reading of 49. Employment in the U.S. increased by more than economists had anticipated in the month of October, according to a report released by the Labor Department on Friday, although the report also showed an uptick by the unemployment rate. The report said non-farm payroll employment increased by 171,000 jobs in October following an upwardly revised increase of 148,000 jobs in September. Economists had expected employment to increase by about 125,000 jobs compared to the increase of 114,000 jobs originally reported for the previous month. Despite the continued job growth, the unemployment rate edged up to 7.9 percent in October from 7.8 percent in September due to an increase by the size of the workforce. The modest increase by the unemployment rate matched economist estimates. New orders for U.S. manufactured goods showed a notable rebound in the month of September, according to a report released by the Commerce Department on Friday, with the bounce largely due to a jump in orders for transportation equipment. The report said factory orders increased by 4.8 percent in September after tumbling by a revised 5.1 percent in August. Economists had expected orders to increase by about 4.9 percent compared to the 5.2 percent drop originally reported for the previous month. Asia Market 11/2/2012 7:23 AM ET  Positive global cues following the release of a slew of positive economic reports from China and the U.S. as well as better-than-expected second-quarter earnings results from IT major Wipro lifted Indian shares notably higher on Friday. The rupee also traded marginally higher despite weakness in the euro/dollar pair, boosting investor sentiment. The benchmark BSE Sensex moved in the range of 18,688-18,794 before ending up 194 points or 1.04 percent at 18,755, with 26 of its components advancing. Among the decliners, Bharti Airtel lost 2.1 percent on concerns with regard to partial re-farming of telecom spectrum, while Sun Pharma, Jindal Steel and Hindustan Unilever fell less than a percent each. Capital goods, auto, banking and IT stocks led the rally. Bajaj Auto climbed 2.8 percent after the two-wheeler manufacturer posted a modest 4 percent rise in October sales and said sales would accelerate in the coming months. Likewise, Hero MotoCorp rose 1.8 percent after posting a modest 3 percent rise in two-wheeler sales in October. Maruti Suzuki rose 0.3 percent, Tata Motors added a percent and Mahindra & Mahindra rallied 2.2 percent. IT major Wipro pared early gains to end 0.3 percent higher, while rivals Infosys and TCS gained about a percent each. Wipro reported a jump of 24 percent jump in second-quarter consolidated net profit and announced the demerger of its non-information technology businesses into a separate entity. Among metal stocks, Tata Steel, Hindalco and Sterlite rose 1-3 percent. Larsen & Toubro jumped 2.5 percent, extending Thursday's gains after winning new orders. ITC rose 1.2 percent after recent losses, private sector lender ICICI Bank jumped 2.4 percent, state-run Gail soared 4.2 percent and drug maker Lupin added 2.3 percent. Union Bank of India soared 8.2 percent on robust results. The state-run lender reported a 57 percent surge in quarterly net profit due to lower provisioning. ONGC edged up 0.4 percent amid reports that the oil & gas major has finalized a Rs 8,000 crore surface facility revamp program for its three onshore assets - Ankleshwar, Ahmedabad and Mehsana - in Gujarat. CESC advanced 1.8 percent on reports that the RP-Sanjiv Goenka group is mulling options for demerging its supermarket chain Spencer's. Godrej Consumer Products added a percent after it acquired a 51 percent stake in Darling Group in Kenya. DLF edged up 0.3 percent as it concluded the sale of a land parcel in Mumbai. State-run oil retailers ended on a mixed note after the government put on hold a decision to increase the price of non-subsidized LPG cylinders. BPCL slid half a percent, while IOC rose 1.5 percent and HPCL gained 0.6 percent. Market heavyweight Reliance Industries edged down 0.2 percent after the oil ministry described as "baseless and frivolous" the allegations of granting undue favors to the company. Marico tumbled 4.4 percent on disappointing earnings results. Elsewhere, other Asian markets rose broadly, mirroring the rally on Wall Street and in Europe overnight as a slew of positive economic reports from China and the U.S. fueled hopes that the global economy is regaining some traction. European stocks were trading on a lackluster note following the previous session's rally as corporate earnings continued to be lukewarm and investors awaited the release of a key U.S. employment report due later in the day. Commodities USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts 11/2/2012 7:14 AM ET  The price of crude oil was leveling off from its two-week high Friday morning as traders speculate that demand for crude will be lower than anticipated in the aftermath of Hurricane Sandy. Light Sweet Crude Oil (WTI) futures for December delivery, shed $0.71 to $86.38 a barrel. Yesterday, oil settled near a two-week high after the Energy Information Administration's weekly oil report showed a decline in U.S. crude stockpile even as analysts expected an increase. Crude prices were also supported by a slew of upbeat macroeconomic data from the U.S., with some positive manufacturing data from China Thursday during trading hours, the EIA revealed that U.S. crude oil inventories dipped 2.0 million barrels, while gasoline stocks added 0.90 million barrels in the weekended October 26. Analysts expected crude oil inventories to jump 1.50 million barrels and gasoline stocks to add 200,000 barrels last week. This morning, the U.S. dollar advanced back near a three-week high versus the euro, while paring recent losses against sterling. The buck was steady near a 4-month high versus the yen and moving higher against the Swiss franc. In economic news, activity in euro zone's manufacturing sector decreased for the fifteenth consecutive month in October, though at a marginally slower rate than estimated earlier, as domestic market conditions remained subdued and trade flows deteriorated further, final data released by Markit Economics showed. The seasonally adjusted purchasing managers' index decreased to 45.4 in October from 46.1 in September. The latest reading was slightly higher than 45.3 seen in the preliminary estimates. Meanwhile, Germany's manufacturing sector contraction in October was less severe than expected earlier, but activity dropped for the eighth consecutive month, final survey data released by Markit Economics revealed. The Markit/BME Germany Purchasing Managers' Index fell to 46 from 47.4 in September. Traders will look to the non-farm payroll report for the month of October from the U.S. Labor Department, due out at 8.30 a.m.ET. Economists expect non-farm payrolls for October to increase by 125,000, while the unemployment rate is expected to edge up to 7.9 percent. Later during the session, the Commerce Department is due to release its report on factory goods orders for September. Economists estimate a 4.9 percent increase in orders for factory goods following a 5.2 percent increase in August.

ADVFN III Evening Euro Markets Bulletin -November 2nd, 2012-:

ADVFN III	Evening Euro Markets Bulletin
Daily world financial news

Friday, 02 November 2012

London Market Report

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

London close: Footsie struggles to hold on to gains after jobs data Market Movers techMARK 2,104.52 -0.28% FTSE 100 5,868.55 +0.11% FTSE 250 12,120.83 +0.24% - US jobs provide temporary boost, but gains trimmed - Data unlikely to change Fed's stance, says analyst - Financials Admiral and RBS disappoint While the closely-watched US jobs report provided a bit of a bounce in early afternoon trade, the Footsie had pared gains to finish flat by the close as the initial euphoria surrounding the figures died away. US non-farm payrolls rose by 171,000 last month, well above the 125,000 expected by the market consensus. The unemployment rate did increase, by 10 basis points to 7.9%, but this was expected. What's more, upwards revisions were made to previous months' figures which added "more lustre to an already-solid report", said analyst Michael Gapen from Barclays Research. The Footsie jumped to an intraday high of 5,888 shortly after the data was released, but quickly came pulling back to its starting point after US stock markets opened. "Despite the better numbers the initial gains proved to be somewhat short-lived as markets fizzled out like a damp firework ahead of the weekend and the outcome of next week's US elections," said market analyst Michael Hewson from CMC Markets. Barclays Research's Gapen said that the labour market is exhibiting good momentum heading into Q4, "although we would not be surprised to see some volatility in upcoming jobless claims and payrolls as a result of Hurricane Sandy. We do not see the momentum in hiring and decline in the unemployment rate in recent months as changing the calculus for the Fed at this stage." In domestic, the UK economy is not expected to contract this year, but ill-timed fiscal consolidation in Europe and other external risks continue to pose risks, the National Institute of Economic and Social Research (NIESR) said in its latest quarterly forecasts. The British economy is now expected to grow by 0.1% in 2012, which marks a slight upwards revision on its previous forecasts. Next year however the external environment is no longer being forecast to make a contribution to aggregate demand, leading the NIESR to reduce its forecast for gross domestic product (GDP) downwards, to 1.1%, as net trade will not make any positive contribution. FTSE 100: Financials provide a drag Car insurance firm Admiral dropped after seeing a 2% decrease in third-quarter turnover. "Little has changed since the half year. The UK car insurance market is cyclical and we are in the softer part of the cycle with premium rates coming down," said Chief Executive Henry Engelhardt. Banking giant RBS fell after reporting a statutory loss before tax of £1.26bn for the three months to September 30th after taking a £1.46bn charge in own-credit adjustments and a £400m bill for PPI redress. Investec maintained its 'sell' rating for the stock this morning, saying that it had expected a loss of £1.0bn. Lloyds fell lower following its sharp rise on Thursday on the back of its third-quarter update, which showed figures were in line with expectations. Meanwhile, sector peer HSBC was also under the weather after the Financial Stability Board said that it (along with Citigroup, Deutsche Bank and JPMorgan Chase) must hold additional capital in order to be able absorb possible losses. Airlines group IAG was the top performer this afternoon, up three per cent over 168p. Technical analysts at Charles Stanley said today: "A close above 168p would suggest that this line is giving way and would amount to a 'trading buy' signal." Oil giant Tullow was also a high riser after JPMorgan Cazenove upgraded its stance on the shares to 'overweight'. In contrast, engineering giant Weir was under the weather after Jefferies cut its rating to 'hold' and supermarket group Morrisons fell after Morgan Stanley downgraded the stock to 'underweight'. Shares in luxury brand Burberry were making gains ahead of its first-half results on November 7th. Seymour Pierce has raised its target and maintained its 'buy' rating this morning, saying that risks to forecasts are now 'on the upside'. FTSE 250 movers: Shares in Bumi rocket on proposal news Mining group Bumi advanced after saying it has appointed Rothschild Goup as its financial adviser with immediate effect to evaluate the proposal received from Long Haul Holdings. Shares in Dixons rose once again, boosted by the news that its main High Street rival, Comet, is likely to go into administration. Also Seymour Pierce has said that John Lewis's strong start to their new Windows 8 range is a positive sign for Dixons. Meanwhile, hotels group Millennium & Copthorne fell despite seeing RevPAR rise 2.6% in the third quarter, with London enjoying an Olympic boost. Hikma Pharmaceuticals also fell after saying it is considering the future of its Generics business as its Eatontown facility in New Jersey continues to be dogged by compliance issues. Gold miner Centamin has once again taken a hit, one day after shares rebounded after returning to the market following a suspension from trade. Earlier this week the firm's shares plummeted after media reports claimed that an Egyptian court had labelled its Sukari mining concession, its primary source of revenue, as void. FTSE 100 - Risers International Consolidated Airlines Group SA (CDI) (IAG) 169.10p +3.55% Burberry Group (BRBY) 1,253.00p +3.13% Tullow Oil (TLW) 1,445.00p +2.70% Whitbread (WTB) 2,456.00p +2.68% GKN (GKN) 216.70p +2.22% Capita (CPI) 737.50p +2.08% Hargreaves Lansdown (HL.) 762.00p +2.08% Evraz (EVR) 243.30p +2.06% Imperial Tobacco Group (IMT) 2,392.00p +1.79% Carnival (CCL) 2,539.00p +1.72% FTSE 100 - Fallers Admiral Group (ADM) 1,081.00p -5.34% Severn Trent (SVT) 1,557.00p -2.44% Weir Group (WEIR) 1,751.00p -2.40% Pennon Group (PNN) 701.00p -2.30% Royal Bank of Scotland Group (RBS) 281.30p -2.05% GlaxoSmithKline (GSK) 1,361.50p -1.87% Associated British Foods (ABF) 1,370.00p -1.72% Smith & Nephew (SN.) 638.00p -1.62% Petrofac Ltd. (PFC) 1,599.00p -1.48% Randgold Resources Ltd. (RRS) 7,325.00p -1.48% FTSE 250 - Risers Bumi (BUMI) 283.00p +13.97% Dixons Retail (DXNS) 25.84p +10.52% Chemring Group (CHG) 277.30p +6.41% Homeserve (HSV) 235.20p +5.38% Brown (N.) Group (BWNG) 354.90p +4.47% RPS Group (RPS) 237.40p +4.12% FirstGroup (FGP) 208.40p +3.99% PayPoint (PAY) 826.50p +3.38% Talvivaara Mining Company (TALV) 135.40p +3.36% Spectris (SXS) 1,818.00p +3.30% FTSE 250 - Fallers Centamin (DI) (CEY) 60.50p -9.84% Millennium & Copthorne Hotels (MLC) 480.00p -6.16% Lancashire Holdings (LRE) 848.00p -3.03% Debenhams (DEB) 120.00p -2.99% Balfour Beatty (BBY) 311.40p -2.93% Ocado Group (OCDO) 62.60p -2.49% Hikma Pharmaceuticals (HIK) 738.50p -2.06% Savills (SVS) 414.90p -1.98% Hunting (HTG) 779.00p -1.95% Cable & Wireless Communications (CWC) 37.31p -1.82% Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe midday: Europe stands pat while waiting for US Employment Report -Investors waiting on US employment report -Eurozone manufacturing sectors slightly above consensus, but in contration -Alcatel plunges after reporting Q3 losses -Beiersdorf lifts revenue outlook -Rumors that Deutsche Telekom to cut dividend FTSE-100: -0.09% Dax-30: -0.14% Cac-40: -0.02% FTSE Mibtel 30: -0.60% Ibex 35: +0.50% Stoxx 600: +0.16% After yesterday's 1 per cent rise, European equities on the average decide to take a breather and trade flat with a mixed balance while waiting for the latest monthly employment report Stateside to come out at 12:30 London time. Yesterday's better-than-expected US labor market data (weekly initial claims and the ADP employment change) already gave the European benchmarks a leg up, but it seems even the bulls prefer to wait for a confirmation from the "official" data before making another move. Also of interest, in today's Financial Times James Mackintosh tells readers that recent market moves –gains led by cyclicals- show that there is quite a bit of optimism regarding economic growth. In his opinion, however, that is only justified if one believes that central banks have more ammunition left in their armouries –or not- as Governor King has recently suggested. Other considerations to be taken into account by the shortest-term investors and traders are that the last two months of the year are usually amongst the best for equities and the still relatively "bearish" sentiment (as a contrarian indicator) of small investors, according to the latest weekly survey data out from AAII. Alcatel burns a hole in investors´ pockets Company earnings continue to cause scares on the Old Continent. Today, Alcatel Lucent plunges almost 7% on the Cac 40 after reporting that it swung to losses in the third quarter. According to Bloomberg data, out of the 164 Eurostoxx 600 companies that have reported earnings, only 54% have managed to beat consensus. Yet there are those positive reports at least and today we see the maker of Nivea Beiersdorf jump 6% after increasing annual revenue forecast. Unfortunately for the bulls, its fellow Dax 30 member Deutsche Telekom plummets almost 3% after the German business daily Handelsblatt reported that the company is considering slashing its dividend by up to a third from 2013 onwards. By sectors, the best performance in the DJ Stoxx 600 is now to be seen by companies in the following industrial groups: Basic Resources (+1.31%), Automobiles & Parts (+1.14%) and Industrial Goods & Services (+1.06%). Meanwhile, Telecommunications (-0.88%), Utilities (-0.76%) and Health Care (-0.60%) lead the decliners. Eurozone PMI slightly ahead of forecasts While waiting for the US macro data (apart from the Employment Report, we'll also see the New York ISM and factory orders), we've had a barrage of manufacturing sector come out from the Eurozone. In general terms, both the individual countries and the sector as a whole narrowly beat forecasts. However, it should be noted that all of the readings remained below 50, implying a contraction in the sector. The Markit Eurozone purchasing managers index for the month of October has come in 45.4, versus last month´s reading of 46.1 (Consensus: 45.3). The Markit German purchasing managers index for the month of October has come in 46, versus last month´s reading of 47.4 (Consensus: 45.7). The Markit French purchasing managers index for the month of October has come in 43.7, versus last month´s reading of 42.7 (Consensus: 43.5). Single currency dropping towards technical support ahead of data The euro/dollar is now down by 0.48% to 1.2885. Brent crude futures are off by 0.14% to $109.40 US Market Report US open: Traders bank profits ahead of election Market movers Dow Jones: -40 at 13,193 S&P 500: -3 at 1,425 NASDAQ Composite: -9 at 3,011 After initially opening firmer after better than expected non -farm payrolls data for October, stocks have turned back, with some traders closing positions ahead of next Tuesday's presidential election. October data showed 171,000 jobs were added in the month, ahead of the 120,000 additions expected by the market. The unemployment rate, however, edged up to 7.9% in October from 7.8% in September. The main benchmark indices are all lower, despite some well received trading updates from TripAdvisor, Priceline.com and Starbucks. Results from online travel agent TripAdvisor last night after the bell came in ahead of expectations on the back of a strong increase in web traffic. Post-tax profit of $59.4m in the third quarter was equivalent to 41 cents a share, up 4 cents a share on last year's third quarter result. Sector peer Priceline.com is also soaring after its results yesterday revealed things are not so bad in Europe as had been feared. Post-tax earnings were up 27% from a year earlier on the back of a 25% increase in gross bookings. Overpriced coffee peddler Starbucks saw like-for-like sales growth of 6% in the third quarter. Shares frothed higher despite revenue of $3.36bn being short of the $3.39bn analysts had been expecting. S&P 500 - Risers TripAdvisor Inc. (TRIP) $35.38 +20.30% Priceline.Com Inc. (PCLN) $649.09 +10.75% Starbucks Corp. (SBUX) $51.30 +10.05% Alpha Natural Res (ANR) $9.44 +6.54% Washington Post Co. (WPO) $353.92 +4.26% Whole Foods Market Inc. (WFM) $98.45 +4.22% Beam Inc. Common Stock (BEAM) $57.64 +3.71% Rowan Companies plc (RDC) $32.86 +2.46% Harman International Industries Inc. (HAR) $44.50 +2.44% Simon Property Group Inc. (SPG) $155.83 +2.15% S&P 500 - Fallers Pitney Bowes Inc. (PBI) $12.60 -13.94% First Solar Inc. (FSLR) $22.80 -7.87% Fluor Corp. (FLR) $53.31 -7.54% Chesapeake Energy Corp. (CHK) $18.82 -6.25% American International Group Inc. (AIG) $33.13 -5.88% Newmont Mining Corp. (NEM) $50.17 -5.73% Republic Services Inc. (RSG) $26.81 -5.30% Hartford Financial Services Group Inc. (HIG) $21.03 -4.06% Genworth Financial Inc. (GNW) $5.99 -3.70% CF Industries Holdings Inc. (CF) $203.59 -3.46% Dow Jones I.A - Risers Bank of America Corp. (BAC) $9.85 +1.13% Walt Disney Co. (DIS) $50.33 +1.10% McDonald's Corp. (MCD) $87.59 +0.91% Home Depot Inc. (HD) $62.66 +0.64% Merck & Co. Inc. (MRK) $46.20 +0.57% Procter & Gamble Co. (PG) $69.57 +0.46% Intel Corp. (INTC) $22.36 +0.45% General Electric Co. (GE) $21.42 +0.37% Pfizer Inc. (PFE) $24.64 +0.35% United Technologies Corp. (UTX) $79.22 +0.20% Dow Jones I.A - Fallers Chevron Corp. (CVX) $109.36 -1.88% Travelers Company Inc. (TRV) $69.01 -1.73% Caterpillar Inc. (CAT) $86.52 -1.29% Mondelez International Inc. (MDLZ) $26.48 -1.21% International Business Machines Corp. (IBM) $195.29 -0.94% Alcoa Inc. (AA) $8.67 -0.91% Exxon Mobil Corp. (XOM) $90.78 -0.90% JP Morgan Chase & Co. (JPM) $42.58 -0.62% Wal-Mart Stores Inc. (WMT) $73.05 -0.54% Boeing Co. (BA) $70.46 -0.47% Nasdaq 100 - Risers Priceline.Com Inc. (PCLN) $649.09 +10.75% Starbucks Corp. (SBUX) $51.30 +10.05% Whole Foods Market Inc. (WFM) $98.45 +4.22% Sirius Satellite Radio Inc. (SIRI) $2.88 +2.67% Liberty Interactive Corp (LINTA) $20.93 +1.85% Amazon.Com Inc. (AMZN) $235.56 +1.47% Research in Motion Ltd. (RIMM) $8.79 +1.03% Netflix Inc. (NFLX) $78.34 +0.84% Yahoo! Inc. (YHOO) $17.08 +0.77% Virgin Media Inc. (VMED) $32.73 +0.73% Nasdaq 100 - Fallers Vertex Pharmaceuticals Inc. (VRTX) $43.87 -13.09% Monster Beverage Corp (MNST) $43.74 -2.78% VeriSign Inc. (VRSN) $40.03 -2.73% Alexion Pharmaceuticals Inc. (ALXN) $89.99 -2.61% Green Mountain Coffee Roasters Inc. (GMCR) $25.76 -2.22% F5 Networks Inc. (FFIV) $84.35 -2.03% KLA-Tencor Corp. (KLAC) $47.76 -1.97% Altera Corp. (ALTR) $31.02 -1.87% Randgold Resources Ltd. Ads (GOLD) $117.29 -1.87% Life Technologies Corp. (LIFE) $49.46 -1.61% Broker Tips Broker tips: Admiral, Weir, Burberry Investec has retained a 'sell' recommendation and 570p target for car insurance firm Admiral after the group revealed that revenue growth had slowed in the third quarter. "We believe that, while the forecast 7% yield will support the stock, paying 12x earnings for what is essentially a UK motor insurer is too much," said analyst Kevin Ryan. Jefferies has downgraded its rating for engineering giant Weir from 'buy' to 'hold' ahead of its third-quarter results next week, saying that its short-term stance is one of 'rising caution' over risks to 2012 and 2013 consensus forecasts. "We have not turned hugely bearish on Weir (more that we are cautious over the near-term) and we continue to like the business over the long-term," the broker said. "There is, however, insufficient upside to our target (1900p) to warrant a more positive recommendation." The previous target was 2,185p. Seymour Pierce has raised its target and maintained its 'buy' rating for luxury brand Burberry ahead of the group's first-half results on November 7th. The broker estimates a first-half profit before tax (PBT) of £165m, earnings per share of 27.4p and a dividend per share of 7.8p. Full-year PBT forecasts are £390, slightly below the consensus estimate of £400m.

ADVFN III Morning Euro Markets Bulletin -November 2, 2012-.

ADVFN III	Morning Euro Markets Bulletin
Daily world financial news

Friday, 02 November 2012

London Market Report

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

London open: Stocks fall ahead of key US jobs data Market Movers techMARK 2,105.42 -0.23% FTSE 100 5,852.66 -0.16% FTSE 250 12,104.81 +0.11% The FTSE 100 opened slightly lower on Friday morning following a strong rise the day before, as investors showed caution ahead of some pivotal economic data due out across the Pond later today. Financial trader Shavaz Dhalla from Spreadex said that investors are nervous about taking on too much risk ahead of the "market-moving US non-farm report" due out at 13:30 London time. Dhalla said: "The current US president as well as candidate for the presidential position will also be keenly eyeing the jobs figure.  The consensus for the change in the number of employed people is 123,000.  "However, a figure which comes in below expectations will not only prove damaging for investors' confidence in the global recovery but could act as sufficient ammunition for the leading presidential candidate to launch an offensive on the failures of the current US president's measures to stimulate growth." FTSE 100: Admiral and Meggitt disappoint with Q3 results; RBS subdued Car insurance firm Admiral dropped after seeing a 2% decrease in third-quarter turnover. "Little has changed since the half year. The UK car insurance market is cyclical and we are in the softer part of the cycle with premium rates coming down," said Chief Executive Henry Engelhardt. Aerospace, defence and energy components group Meggitt was unwanted after saying that organic revenues were flat year-on-year and revenue growth will be in the mid-single digits in 2013. Banking giant RBS was little changed after reporting a statutory loss before tax of £1.26bn for the three months to September 30th after taking a £1.46bn charge in own-credit adjustments and a £400m bill for PPI redress. Investec maintained its 'sell' rating for the stock this morning, saying that it had expected a loss of £1.0bn. Oil giant Tullow was a high riser after JPMorgan Cazenove upgraded its stance on the shares to 'overweight'. In contrast, engineering giant Weir was under the weather after Jefferies cut its rating to 'hold' and supermarket group Morrisons fell after Morgan Stanley downgraded the stock to 'underweight'. FTSE 250: Bumi gained on appointment of Rothschild Group Mining group Bumi advanced after saying it has appointed Rothschild Goup as its financial adviser with immediate effect to evaluate the proposal received from Long Haul Holdings. Hotels group Millennium & Copthorne fell despite seeing RevPAR rise 2.6% in the third quarter, with London enjoying an Olympic boost. Hikma Pharmaceuticals dropped after saying that it has opted to halt commercial production of generic drugs at Eatontown facility in the US until mid-January while it gets to grips with compliance issues raised by the Food & Drug Administration (FDA). Bwin.party digital entertainment, the world's largest listed online gaming company, fell after seeing revenues slip in the third quarter with several factors to blame, including a better regulation and the weak economic environment in Europe. FTSE 100 - Risers Aberdeen Asset Management (ADN) 341.90p +2.06% Tullow Oil (TLW) 1,430.00p +1.63% Schroders (SDR) 1,573.00p +1.35% International Consolidated Airlines Group SA (CDI) (IAG) 165.40p +1.29% IMI (IMI) 988.00p +1.13% Rio Tinto (RIO) 3,199.00p +1.06% Land Securities Group (LAND) 818.50p +0.92% Burberry Group (BRBY) 1,225.00p +0.82% CRH (CRH) 1,184.00p +0.77% BHP Billiton (BLT) 2,023.50p +0.72% FTSE 100 - Fallers Admiral Group (ADM) 1,084.00p -5.08% Pennon Group (PNN) 704.00p -1.88% Croda International (CRDA) 2,137.00p -1.61% GlaxoSmithKline (GSK) 1,366.00p -1.55% Weir Group (WEIR) 1,768.00p -1.45% Morrison (Wm) Supermarkets (MRW) 263.80p -1.38% Royal Bank of Scotland Group (RBS) 283.90p -1.15% Marks & Spencer Group (MKS) 391.40p -1.11% National Grid (NG.) 704.50p -0.91% Standard Life (SL.) 297.70p -0.90% FTSE 250 - Risers Bumi (BUMI) 267.00p +7.53% Perform Group (PER) 410.00p +4.06% Dixons Retail (DXNS) 24.23p +3.64% Chemring Group (CHG) 268.60p +3.07% New World Resources A Shares (NWR) 268.90p +2.67% Ferrexpo (FXPO) 225.50p +2.59% BBA Aviation (BBA) 208.90p +2.55% Carpetright (CPR) 716.00p +2.51% Daejan Holdings (DJAN) 2,925.00p +2.45% COLT Group SA (COLT) 111.40p +2.20% FTSE 250 - Fallers Hikma Pharmaceuticals (HIK) 726.50p -3.65% Centamin (DI) (CEY) 64.95p -3.20% Millennium & Copthorne Hotels (MLC) 501.00p -2.05% Balfour Beatty (BBY) 314.40p -2.00% Computacenter (CCC) 362.00p -1.44% Halfords Group (HFD) 352.10p -1.32% Cable & Wireless Communications (CWC) 37.51p -1.29% Telecom Plus (TEP) 840.00p -1.23% WH Smith (SMWH) 625.50p -1.11% UK Event Calendar Europe Market Report FTSE 100 Euronext Dax perf CAC 40 Europe open: Investors waiting on critical employment report -Investors waiting on US employment report FTSE-100: -0.12% Dax-30: -0.18% Cac-40: -0.31% FTSE Mibtel 30: -0.52% Ibex 35: -0.48% Stoxx 600: -0.03% European equities have started the day slightly lower, as traders pull in their horns –especially following yesterday´s gains- and ahead of the release, this afternoon, of the latest monthly employment report Stateside. For some any effect from Sandy will only show up in next month´s data, so by itself that should not be a factor in next week´s Presidential elections. However, the bad weather –should it persist- could yet play a role. In any case, today´s data is the last before Americans head to the polls, so even more is in play today than usual. Acting as a backdrop, some reports are calling attention to the recent improvement in the Baltic Dry Freight index, usually a good indicator for global commerce and growth. Also of interest, in today´s Financial Times James Mackintosh tells readers that recent market moves –rises led by cyclicals- show that there is quite some optimism as regards economic growth. In his opinion, however, that is only justified if one believes that central banks have more ammunition left in their armouries –or not- as Governor King has recently suggested. Other considerations to be taken into account by the shortest-term investors and traders are that the last two months of the year are usually amongst the best for equities and the still relatively ´bearish´ sentiment of small investors, according to the latest weekly survey data out from AAII. Alcatel burns a hole in investors´ pockets Alcatel Lucent is now the worst performer on the Stoxx 600, following its latest results. The company has burned through half a billion euros in cash during the latest reporting period. Deutsche Telekom is considering slashing its dividend by up to a third from 2013 onwards, German business daily Handelsblatt has reported. Beiersdorf, the maker of Nivea, has increased its revenue outlook for the year. The best performance in the DJ Stoxx 600 is now to be seen in the following industrial groups: personal and household goods (0.59%), automobiles (0.53%) and basic resources (0.48%). Eurozone PMI slightly ahead of forecasts The Markit Eurozone purchasing managers index for the month of October has come in 45.4, versus last month´s reading of 46.1 (Consensus: 45.3). The Markit German purchasing managers index for the month of October has come in 46, versus last month´s reading of 47.4 (Consensus: 45.7). The Markit French purchasing managers index for the month of October has come in 43.7, versus last month´s reading of 42.7 (Consensus: 43.5). Single currency dropping towards technical support ahead of data The euro/dollar is now down by 0.53% to the 1.2878 dollar level. Front month Brent crude futures are off by 0.399 dollars to the 107.74 dollar mark in ICE trading. US Market Report US close: Stocks rise on positive economic indicators Dow 13,233 +137 Nasdaq 3,020 +43 S&P 500 1,428 +16 US stocks moved firmly on Thursday, getting November off to a positive start following a set of broadly positive economic indicators ahead of Friday's monthly employment report. As an aside, and as regards the impact of Sandy, Credit Suisse today told clients that: "While the event is certainly traumatic for those living through it, we think the overall impact on economic activity is likely to be small. After Katrina, which was a much bigger disaster, the stock market actually rose by 2% in the two weeks after the event. US reinsurers have typically outperformed in the 12-month period after major natural disasters on the back of improvements in pricing - however, given that natural catastrophe losses overall this year have been mild, this might not happen this time." All of the above ahead of tomorrow´s all important monthly employment report. Ironically, if Sandy does have an effect on the recollection of data for the same it should not be evident until the following month -and after the elections- some are saying. The October ISM manufacturing sector purchasing managers index (PMI) came in at 51.7 points, versus the 51 expected by the consensus. The new orders sub-index rose to 54.2 from 52.3. Even so, the Chair of the relevant survey Committee, Bradley J.Holcomb, has said that the rise seen in new orders is deceitful. The Conference Board´s consumer confidence index for October came in at 72.2, below the 73 forecast. However, the previous month´s estimate has been revised down to 68.4 from 70.3. Also worth noting was that the bulk of the rise came from the current situation sub-index, which is a moderately negative aspect of the report. The ADP employment report showed 158,000 jobs were created in October (Consensus: 135,000). Markit´s US manufacturing sector purchasing managers´ index (PMI) came in at 51 for October, after 51.3 for the month before (Consensus: 51.3). This release is not to be confused with the much better known PMI from the Institute for Supply Management (PMI). Company news Netflix, the video-streaming and film rental group, settled back down after Wednesday's announcment that a 10% stake in the company had been purchased by Carl Icahn. Costco shares were also lower despite the retailer saying its same store sales had risen 7% and its monthly sales were up 9% on the previous year. Meanwhile, Abercrombie & Fitch shares leapt after Cowen and Co gave an outperform rating on the stock. Following Hurrica Sandy, the home improvement sector is expected to benefit as homeowners make repairs to their damanged properties, sending shares in Masco Corp. almost 7% higher. The best performing sectors were: Coal (4.97%), Iron&Steel (4.89%) and Non-ferrous metals: (4.26%). And the data storm continued... Unemployment claims fell by 9,000 to 363,000 (Consensus: 370,000). Nevertheless, and as a possible note of caution, data from New Jersey and Washington DC had to be estimated due to Sandy. The number of job cut announcements reached 47,724 in October, versus 33,800 for the month before, according to consultancy Challenger. Unit labour costs dropped by 0.1% in the third quarter (Consensus: 0.8%). Construction spending increased by 0.6% month-on-month (Consensus: 0.7%) in September, while the previous month´s reading has been revised notably higher. Notable rise in crude futures as well Front month West Texas crude futures settled 0.99% higher at $87.09 on the NYMEX. 10-year US Treasuries were falling by 10/32 dollars, with yields at 1.73% at the close. S&P 500 - Risers VeriSign Inc. (VRSN) $41.15 +11.01% Abercrombie & Fitch Co. (ANF) $33.23 +8.67% JDS Uniphase Corp. (JDSU) $10.45 +7.79% Fossil Inc. (FOSL) $93.88 +7.78% Tenet Healthcare Corp. (THC) $25.40 +7.63% Masco Corp. (MAS) $16.13 +6.89% Micron Technology Inc. (MU) $5.78 +6.64% Macy's Inc. (M) $40.52 +6.44% Sandisk Corp. (SNDK) $44.16 +5.70% United States Steel Corp. (X) $21.55 +5.69% S&P 500 - Fallers Teradata Corp. (TDC) $63.75 -6.68% Ross Stores Inc. (ROST) $57.13 -6.27% Exelon Corp. (EXC) $33.58 -6.15% Tesoro Corp. (TSO) $36.18 -4.06% Williams Companies Inc. (WMB) $33.69 -3.72% Western Union Co. (WU) $12.27 -3.61% TripAdvisor Inc. (TRIP) $29.41 -2.91% Public Service Enterprise Group Inc. (PEG) $31.14 -2.81% Plum Creek Timber Co. (PCL) $42.79 -2.53% Newmont Mining Corp. (NEM) $53.22 -2.49% Dow Jones I.A - Risers Bank of America Corp. (BAC) $9.74 +4.51% Microsoft Corp. (MSFT) $29.51 +3.42% Caterpillar Inc. (CAT) $87.65 +3.35% Intel Corp. (INTC) $22.26 +2.91% JP Morgan Chase & Co. (JPM) $42.84 +2.78% Alcoa Inc. (AA) $8.75 +2.10% Cisco Systems Inc. (CSCO) $17.50 +2.10% 3M Co. (MMM) $89.25 +1.88% American Express Co. (AXP) $56.85 +1.57% AT&T Inc. (T) $35.09 +1.45% Dow Jones I.A - Fallers Wal-Mart Stores Inc. (WMT) $73.45 -2.09% Pfizer Inc. (PFE) $24.55 -1.29% Travelers Company Inc. (TRV) $70.23 -1.00% McDonald's Corp. (MCD) $86.80 -0.00% Nasdaq 100 - Risers VeriSign Inc. (VRSN) $41.15 +11.01% Research in Motion Ltd. (RIMM) $8.70 +9.78% Green Mountain Coffee Roasters Inc. (GMCR) $26.34 +8.95% Fossil Inc. (FOSL) $93.88 +7.78% Micron Technology Inc. (MU) $5.78 +6.64% Sandisk Corp. (SNDK) $44.16 +5.70% Electronic Arts Inc. (EA) $13.00 +5.26% Nvidia Corp. (NVDA) $12.55 +4.80% KLA-Tencor Corp. (KLAC) $48.72 +4.65% Vertex Pharmaceuticals Inc. (VRTX) $50.48 +4.56% Nasdaq 100 - Fallers Ross Stores Inc. (ROST) $57.13 -6.27% Netflix Inc. (NFLX) $77.69 -1.96% Costco Wholesale Corp. (COST) $97.13 -1.32% Virgin Media Inc. (VMED) $32.49 -0.81% Whole Foods Market Inc. (WFM) $94.46 -0.35% Perrigo Company (PRGO) $114.55 -0.32% Amazon.Com Inc. (AMZN) $232.14 -0.32% Intuitive Surgical Inc. (ISRG) $540.96 -0.23% Randgold Resources Ltd. Ads (GOLD) $119.52 -0.06% Apollo Group Inc. (APOL) $20.07 -0.05% FX and Commodities round-up FX round-up: Dollar climbs on mixed US data The dollar rose slightly higher on Thursday following mixed US economic reports, which included jobless data and consumer confidence. The ICE dollar index, which measures the greenback against a basket of six other major currencies, climbed from 79.903 on Wednesday to 80.052 last night. The WSJ dollar index, which measures the currency against a slightly broader selection, rose to 70.04 on Thursday evening, from 69.94 last the previous evening. The October ISM manufacturing sector purchasing managers index (PMI) has come in at 51.7 points, versus the 51 expected by the consensus. The new orders sub-index rose to 54.2 from 52.3. Even so, the Chair of the relevant survey Committee, Bradley J.Holcomb, has said that the rise seen in new orders is deceitful. The Conference Board´s consumer confidence index for the month of October has come in at 72.2, below the 73 forecast. However, the previous month´s estimate has been revised down to 68.4 from 70.3. Worth noting as well, the bulk of the rise came from the current situation sub-index, which is a moderately negative aspect of the report. Markit´s US manufacturing sector purchasing managers´ index (PMI) has come in at 51 for October, after 51.3 for the month before (Consensus: 51.3). This release is not to be confused with the much better known PMI from the Institute for Supply Management (PMI). Initial weekly unemployment claims fell by 9,000 to 363,000 (Consensus: 370,000). Nevertheless, and as a possible note of caution, data from New Jersey and Washington DC had to be estimated due to Hurricane Sandy. Following this, the euro declined to $1.2941 from $1.2962, while the pound traded at $1.6127, compared to $1.6134 the previous day. Commodities: Crude oil boosted by supply decline Front-month crude oil futures got an unexpected boost on Thursday after week supply data showed a decline, with positive economic data from China also playing a role. The HSBC Chinese manufacturing sector purchasing managers' index for the month of October rose to 49.5, from 47.9 in the month before, according to survey compiler Markit. This was an eight-month high and not far from the key level of 50 which indicates that the sector contraction has ceased. The consensus estimate was for 49.1. The December contract for the commodity gained 0.99% to settle at $87.09 per barrel on the New York Mercantile exchange. Things were also looking positive for unleaded gas, which climbed 0.13% to $2.63 per gallon, while natural gas rose 0.19% to end the day at $3.70 per million British thermal units. Heating oil was the notable exception, down 0.95% to $3.03 per gallon. In metals, gold dropped by 0.21% to settle at $1,715.50 per troy ounce on the December contract. Silver was also lower, also down 0.21% to $32.25 per troy ounce, while platinum dipped 0.24% to $1,573.20. Copper bucked the trend to end the day 0.98% higher at $3.55 per pound.