BLBG: Europe Day Ahead: London’s FTSE 100 May Open 12 Points Lower
London’s FTSE 100 may open 12 points lower at 6,012 today, while Germany’s Dax index may slump by 30 points to 7,045 and France’s CAC 40 may shed 21 points to 3,954; in New York the Dow Jones Industrial Average may gain 6 points to 11,738 when it opens later, IG Markets said.
TOP STORIES and MOST READ Gates Says China Military-Civilian Disconnect Cause for Concern
U.S. Secretary of Defense Robert Gates said that the apparent lack of communication between China’s civil and military leadership is “something of a worry.”
U.S. Economy: Trade Deficit Unexpectedly Decreases on Dollar
The U.S. trade deficit unexpectedly shrank in November as growing global demand and a weaker dollar help boost overseas sales of everything from aircraft to cotton.
Transocean Settles First Gulf Deepwater Horizon Death Case
Transocean Ltd. settled a lawsuit filed on behalf of one of 11 crew members killed when the company’s Deepwater Horizon drilling rig exploded April 20 in the Gulf of Mexico. The terms weren’t disclosed.
U.S. Stocks Fall on Jobless Claims; Euro, Spain Bonds Gain
U.S. stocks fell, pulling benchmark indexes down from two- year highs, after initial jobless claims rose more than estimated. The euro rallied as European Central Bank President Jean-Claude Trichet said inflation may accelerate and Spanish and Italian bonds gained following debt auctions.
Euro Rallies as Spain, Italy Bonds Gain; U.S. Stocks Retreat
The euro rallied as European Central Bank President Jean- Claude Trichet said inflation may accelerate and Spanish and Italian bonds gained following debt auctions. U.S. stock fluctuated after initial jobless claims rose more than estimated.
Euro Drops After IMF Official Says Europe ‘Skepticism’ Persists
The euro fell for the first time in five days versus the dollar after an International Monetary Fund official said Europe has yet to allay investor “skepticism” about the sustainability of the region’s debt.
Euro Weakens for First Time in Five Days; Oil, Copper Decline
The euro snapped a four day advance against the dollar while oil, copper and Asian stocks trimmed weekly gains on speculation Europe’s debt crisis has yet to abate and as U.S. initial jobless claims rose more than expected.
Flu-Proof Fowl With Decoy Gene May Thwart Pandemics in Humans
Scientists from Cambridge University bred chickens genetically modified to prevent bird flu transmission in a move that may help thwart pandemics in humans.
Trichet Puts Inflation-Fighting Back on ECB Agenda Mid-Crisis
Jean-Claude Trichet has put inflation fighting back on the European Central Bank’s agenda in the middle of a sovereign debt crisis.
Swedbank’s Wolf Guards Capital Buffer as Debt Woes Roil Europe
Swedbank AB Chief Executive Officer Michael Wolf said the bank’s priority is to maintain a “significant” capital cushion to ensure access to funding until concerns roiling European debt markets diminish.
EU Bailout Rates May Need to Drop for Aid to Work: Euro Credit
Europe should reduce the interest rate on emergency aid to Ireland by 50 percent when revamping the financial backstop meant to stem the euro-area debt crisis, say economists, including David Mackie at JPMorgan Chase & Co.
U.K. Economy Faces 20% Risk of Return to Recession, CEBR Says
The U.K. economy faces a 20 percent chance of slipping into another recession as rising unemployment and faster inflation weigh on growth, the Centre for Economics and Business Research said.
U.K. House Prices Decline for a Third Month, Acadametrics Says
U.K. house prices fell for a third month in December as a lack of mortgage finance prevented buyers from making a purchase, research company Acadametrics Ltd. and LSL Property Services Plc said today.
MAIN COMPANIES Accor, Banco Santander, Credit Agricole: Europe Equity Preview
The following companies’ shares may have unusual moves in European trading. Stock symbols are in parentheses and prices are from the previous close.
MARKETS Treasuries Snap Rally as Report May Show Cost of Living Rose
Treasuries snapped a rally from yesterday before a government report that economists said will show a cost-of- living gauge increased the most in 16 months.
China Inflation May Ease Yuan Pressure for Presidents Hu, Obama
Rising inflation in China that is causing headaches for President Hu Jintao at home may help relieve tensions with the U.S. over the yuan as he prepares to meet President Barack Obama in Washington next week.
Palladium to Jump on China Car Sales, Russia, Ikemizu Says
Palladium may extend a rally this year as surging car sales in China boost demand, while supply from top exporter Russia may drop as stockpiles dwindle, the head of commodity trading in Japan at Standard Bank Plc said.
Oil Falls a Second Day on Signs U.S. Economic Rebound Is Slowing
Oil declined for a second day in New York on speculation that demand may be slow to rebound in the U.S., the world’s biggest crude-consuming nation.
ANALYST CHANGES
NEWSPAPER HIGHLIGHTS Ikea Will Take Cautious Approach to China Expansion, FT Reports
