Continental AG

Global Stocks Rebound As Fed Fears Ease, Dollar Falls From 7 Month High

If yesterday's session was marked by concerns about Fed tightening and rising long-end rates, today concerns about a hawkish Fed have subsided, with European, Asian stocks and S&P futures all rising amid speculation Federal Reserve policy will remain accommodative after yesterday's dovish comments by Fed vice-Chair Stan Fischer, as well as weak economic data helped push the US Dollar off its 7 month highs.

$530 Billion Over Ten Years - How The End Of Border-less Travel Threatens Europe's Economy

In an effort to slow Syrian, Afghan, and Iraqi migrants traveling to Europe, many countries are now implementing border controls, a decision that could prove to have significant negative consequences for Europe's economy. As Bloomberg notes, the open border economy supports more than 400 million people, with 24 million business trips, and 57 million cross-border freight transfers happening every single year. Research by the Bertelsmann Foundation asserts that a permanent return to border controls could cost $530 billion of GDP growth from the European economy over the next decade.

Frontrunning: August 19

  • Just how many rats are there? Steven Cohen's Firm Loses Another Top Executive (WSJ)
  • Iceland Sees a Potential Volcanic Eruption, and Airlines Cower (Bloomberg)
  • Iraqi forces battle to drive jihadists from Saddam's home town (Reuters)
  • Israel, Palestinians Agree to Extend Gaza Truce for 24 Hours (BBG)
  • Pimco now buying junk (BusinessWeek)
  • Pakistan arrests 147 in Punjab towns as protests in capital continue (Reuters)
  • Ex-Rabobank Employee Pleads Guilty in Libor-Rigging Probe (BBG)
  • Ebola Orphans Targeted by Aid Groups as Newest Victims (BBG)
  • Two California youths accused of plotting high school shooting spree (Reuters)
  • Only Rich Know Wage Gains With No Raises for U.S Workers (BBG)

Daily Highlights: 1.7.10

  • Asian stocks rise, led by carmakers, banks; Copper gains, bond risk falls.
  • Australian retail sales rose 1.8% in November - the most in eight months.
  • China’s central bank said it will target “moderate” loan growth in 2010.
  • Dollar near 3-week low on signs global rebound gaining momentum.
  • Oil pulls back below $83 in Asia after cold weather sparks 20 percent rally since December.
  • Spot iron ore delivered to China rose to the highest in more than a year amid “panic buying” by steel mills.

Daily Highlights: 10.19.09

  • Asian currencies advance for a seventh week as growth, yields draws funds.
  • Asian stocks fell as losses at Casio, Yaskawa Electric spook expectations of recovery.
  • Business-Jet demand likely to skid before recovering: Honeywell Intl.
  • China’s economy grew by over 7% in the first nine months of the year: Govt official.
  • China's regulator urged 5 biggest state lenders to maintain a 'reasonable pace' of lending.
  • China's growth exceeds 7 pct in January-September, will easily hit 8 percent target.

Weekend Reading

  • The best unknown activist investment of 2009 (Greenbackd)
  • Words from the wise (Financial Armageddon)
  • CME in talks to buy CBOE for $5 billion (Bloomberg)
  • UBS warned U.S. customers by registered mail their account details may be given to U.S. tax authorities (Reuters)
  • Goldman can spare you a dime (NYT)
  • The extinction of ethics in finance - The Fallout (Reality Arbiter)

Daily Highlights: 7.30.09

  • Alcatel-Lucent swung to a net profit of €14M ($19.6M) vs. a year-ago loss of €1.1B.
  • Ambac Fincl expects Q2 impairment losses on credit derivatives to rise by ~$1.6B to $4.9B.
  • BAE Systems swung to 1H loss of $134M; revs jump 28%.
  • British American Tobacco H1 profit up 16 pct to 1.45 billion pounds.
  • British Sky Broadcasting posts a solid fourth-quarter net profit.

Daily Highlights: 7.20.09

  • Euro hits $1.42 level-- highest level against the dollar since early June.
  • Leading Index, Home Resales probably rose in sign recession easing.
  • IRS has stepped up scrutiny of offshore accounts and foreign income.
  • Regulators shut 2 banks in California, 2 banks in Georgia, South Dakota, boosting total to 57.
  • Barnes & Noble cuts publishing staff as it hunts for efficiencies.
  • RBS To Exit Leveraged Finance Lending

    Developing story, but with such blockbusters as Lyondell and Continental AG one had to expect they would pull the plug sooner or later.

    Schaeffler In Crisis After Overpaying for Continental AG

    In what could go down as the sad conclusion to the dumbest acquisition of all time, ball-bearing maker Schaeffler, which acquired Europe's second-largest auto-supplier Continental AG, has said in an e-mailed statement that it is seeking an investor, after being saddled with $14 billion of debt as part of the acquisition.