Market Gazer Hong Kong - Japan - Germany - UK - North America

market review : Europe & U.S. unchanged in September. Year-on-year, the

CPI gained 3.1%, the same pace as in August.
Core CPI for September slowed a bit from
Perhaps the
2.8% to 2.7%. In Germany, CPI stayed at 1.3%
question is no
year-on-year in September while month-on-
longer IF, and no
month the inflation fell 0.1%.
longer WHEN
but rather, it is
Wednesday’s data will focus on China
more likely of
international trade data while U.S. will only
HOW MUCH the
see the release of import price index for
Fed would utilize
September. China’s trade balance in
another
September is expected to have fallen to
quantitative easing measure. Hint on
$17.75 billion from $20.03 billion, while
potential easing from the Fed pushed the US
exports to have slowed from 34.4% to 26%.
stocks higher. The members of the FOMC also
said that recent growth and inflation trends Imports were expected to slow from 35.2% to
25%. Job data from U.K. will also due on
have been unsatisfactory and should these
Wednesday, with unemployment rate is seen
conditions remain, the Federal Reserve may
to be steady at 7.8% in 3-month ending
consider it appropriate to take action soon.
August while jobless claims are seen rising by
This would mean the Fed would be buying
4.5k from prior rise of 2.3k.
more Treasurys to tackle slow growth and
deflationary pressure.
Intel 3Q profit was
reported at $2.96
The sentiment boost pushed the Dow Jones
billion or 52 cents per
Industrial Average to end at 11,020.40 or up
share. The results came
10.06 points, while Nasdaq Composite ended
in above the expected
at 2,417.92 or up 15.59 points or 0.65%. S&P
50 cents per share and were better than last
500 index gained 4.45 points or 0.38% and
year’s same quarter results of $1.86 billion or
ended the day at 1,169.77. In Europe, the
33 cents per share. Intel booked a revenue of
impact from the FOMC minutes has not
$11.1 billion, slightly above the expected $11
influenced the European stocks as the
billion and better than last year’s $9.4 billion.
markets were already closed by the time the
Looking at the current quarter, Intel forecast a
minutes was released. German DAX finished
revenue of $11.4 billion plus or minus $400
at 6,304.57 or down 4.94 points, while FTSE
ended down 0.19% at 5,661.59. Fed’s hints million, also better than the consensus of
$11.33 billion.
however, may be felt on Wednseday in
Europe.
Pfizer was buying King Pharmaceuticals for
$3.6 billion in cash, or $14.25 per share value,
Economic data from U.K. showed retail sales
a premium of 40% over its most recent closing
slowed to 0.5% in September from 1% gains in
August, according to the report from BRC. price of $10.15. This enabled Pfizer to add
Avina, Fletctor Patch and Ebeda from King to
Meanwhile, RICS house price balance for
its own product line.
September declined 36% as expected against
the prior month’s losses of 32%. Inflation
however, slowed from 0.5% (m/m) to
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 Market Gazer Hong Kong - Japan - Germany - UK - North America

Another venture taken American Express was upgraded by SunTrust

by Google would be a
project to develop an
undersea power-cable network worked with
Marubeni Corp. and Good Energies
Investment Corp. which would be stretched
for 350 miles along the U.S. Eastern
seaboard. The project would be able to supply
electricity by an equivalent of 6 nuclear power
plants from its wind power. The project will
start in 2013 and completion is expected in
2016. Google was also rumored to be
interested in Opodo. The European-based
online travel agency also attracted Expedia,
Permira and Axa Private Equity. A buyout is
expected to worth around $553-$692 million.
from NEUTRAL to BUY with price target at $47
on the back of valuation.
Google has been set at BUY by Janco but its
price target has been lowered to $629 from
$700; Wedbush upgraded Google to NEUTRAL
from UNDERPERFORM and set the target at
$575 while Stifel Nicolaus also saw Google at
$600, maintaining a BUY rating, up from prior
forecast of $560 on the back of better
September. RBC Capital however, saw 3Q
EBITDA to come below the consensus, but
kept Google’s OUTPEFORM rating.

Deutsche Post had its price target cut by
Morgan Stanley from €16 to €15 on the back
of structural challenges on the company’s
mail business. The house kept the rating at
EQUAL WEIGHT.
Disclaimer: This report is provided for information purposes
only. It is not an offer to sell or to buy any securities. This
report has been prepared based on sources believed to be
reliable, but there is no assurance or guarantee regarding its
completeness & and accuracy. The author accepts no
responsibility or liability arising from any use of the report.

Volkswagen reported its sales

in China climbed 39% since the
beginning of the year until the
end of September to 1.48
million units. The German carmaker also had
its price target raised to €124 from €115 by
HSBC Holdings Plc.

Daimler was lifted to BUY from NEUTRAL by

UBS as the stock price has been lagging truck
and premium-car recoveries. Also, it was
reported that the company’s partnership with
BYD Co. on the production of electric vehicle
will be limited to China.

Canaccord put Barclays

at HOLD while started
Deutsche Bank at SELL
and HSBC at BUY.

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