Market Gazer Hong Kong - Japan - Germany - UK - North America
market review : Europe & US
Gold hit $1,310.20 an
ounce on Wednesday
as investors
pondered the
possibility of more
quantitative easing from the Federal
Reserve and that the greenback’s
weakness concerned investors. The Dow
however, slipped 22.86 points as the
index ended at 10,835.28. Nasdaq
Composite also down 0.13% to 2,376.56
while S&P 500 ended at 1,144.73 or down
0.26%. Europe was also in the red as FTSE
100 slipped 0.16% to 5,569.27 and DAX
index fell 29.17 points or 0.46% to
6,246.92.
Blank schedule of economic data set for
release on Wednesday shifted the
investors’ attention to the Thursday’s US
GDP data and jobless claims data as well
as the Chicago PMI data. Claims are
expected to be at 460k in the week ended
September 25th, falling from 465k in prior
week. Chicago PMI is expected to slow
from 56.7 in August to 55.9 in September.
US GDP estimate for the 2Q is seen
revised up from 1.6% to 1.8%.
BMW is set to exceed its cost
reduction target worth €6
billion by 2012 while sales
target is maintained at more than 1.4
million units, according to the BMW CEO
Norbert Reithofer. Reithofer himself had
his contract extended until 2016. BMW
hovered at €51.06 by the end of European
trading session, up 0.77%.
29 September 2010
BP Plc’s new boss Robert Dudley split the
company’s exploration and production
division into three divisions: exploration,
to be led by Mike Daly; development, will
be under Bernard Looney; and
production, to be handled by Bob Fryar.
Dudley also set up the safety division,
which would be led by Mark Bly. Andy
Inglis, the head of the exploration and
division will leave the company at the end
of the year. He will also step down from
the company’s board at the end of
October. BP was up 3.91% to 421 pence.
Prudential Financial Plc will
acquire Star Life Insurance and
Edison Life Insurance units
from AIG for $4.8 billion which operate in
Japanese market. The purchases will put
Prudential face-to-face with MetLife Inc.
which also about to finalize its purchase of
American Life Insurance Co. (Alico), also a
unit of AIG, worth $15.5 billion. While
Prudential’s deals worth about the same
as the companies’ book value, MetLife
paid around 1.2 times the book value of
Alico. Prudential ended at 634 pence,
0.55% lower on Wednesday.
Rolls-Royce Plc. was upgraded to
OVERWEIGHT from EQUAL WEIGHT by
Morgan Stanley, with its price target
raised to 720 pence. Rolls-Royce ended
the day at 612 pence, up 3.47%.
Bayer AG’s lawsuit against
Watson Pharmaceuticals and
Novartis AG was turned down
by a US judge. Both companies were sued
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over the patent infringement regarding
Bayer’s birth control drug Yasmin. The
judge dismissed the claim with prejudice,
meaning that the case cannot be brought
up again.
Deutsche Bank’s CEO Josef Ackermann
added 186,863 shares at an average price
of €33 per share to his personal holding
after he bought them by exercising his
subscription rights. Total value of
Ackermann’s purchase was about €6.2
million. Deutsche Bank still languished at
the bottom as it settled down 2.46% at
€39.26.
Procter & Gamble Co. showed its interest
in Nivea skin cream manufacturer,
Beiersdorf AG after CEO Bob McDonald
explicitly said that the company is
interested to acquire
Beiersdorf. P&G’s shares
slipped 0.61% to $60.25.
US Treasury started to sell its shares in
Citigroup worth $2.2 billion in trust
preferred shares. These shares differed
from the government’s stakes in
Citigroup’s common stock. Citigroup rose
0.97% to $3.92.

Goldman Sachs Disclaimer: This report is provided for information purposes

only. It is not an offer to sell or to buy any securities. This
Group Inc.’s report has been prepared based on sources believed to be
earnings estimates reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
were downgraded responsibility or liability arising from any use of the report.
by Barclays Plc.
although the rating was keptat EQUAL
WEIGHT with price target set at $175. EPS
for 2010 and 2011 were forecast at
$12.78 and $16.00, respectively.
Slowdown in capital markets was cited as
the reason behind the revisions. Goldman
Sachs shed 0.41% to end at $144.42.

Bank of America downgraded EPS

estimates of General Electric for 2011 and
2012. EPS for 2011 is now seen at $1.28
while for 2012 it is seen at $1.55. Rating
was kept at NEUTRAL with price target
maintained at $21.00. The bank pointed
at pension headwinds as the factor behind
the downgrade. GE was down 0.49% to
end at $16.36.

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29 September 2010 Page 2