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

market review : europe & us however. Capacity utilization inched

Dow Jones Industrial Average clawed back
from the depths of 10,481 when poor
Empire Manufacturing and industrial
production data were released to end up
46.24 points at the end of the day or
0.44% at 10,572.73. Nasdaq Composite
gained 0.5% to 2,301.32, and S&P 500
index ended at 1,125.07 or up 0.35%. In
Europe, shares fall were attributed to the
poor US data. DAX index fell 13.54 points
or 0.22% to 6,261.87 while FTSE 100
declined 0.21% to 5,555.56.
higher from 74.6% in July to 74.7% in
August. It was below the expected 75.0%.
Import prices accelerated in month-on-
month terms, from 0.1% in July to 0.6% in
August, twice faster than the consensus of
0.3% rise. Compared to the same period
last year, import prices slowed from 5.1%
to 4.1%, above the expected rise of 3.8%.

European Commission is
working on more
supervisory measures to
oversee financial markets.
The first would be to have
OTC derivatives transaction in Europe to
use central clearinghouses to settle sales,
Source: Federal Reserve Bank of New York
and the second is to have naked short-
sellers to submit proof that they can
From Europe, Core CPI was reportedly
access the sold instrument to settle the
rising 1% in August (y/y), the same pace
trade which aimed for profit from falling
as July’s and a bit higher than the
prices. Any short position beyond 0.2% of
consensus rise of 0.9%. Month-on-month,
issued capital must be notified to the
CPI turned positive as it rose 0.2%,
authorities while beyond 0.5% the market
reversing July’s drop of 0.3%. Headline CPI
must be notified.
however, rose 1.6% after a 1.7% gains in
July. In the labor market, employment in
US data did not provide fresh reliefs on
the Euro-Zone was unchanged in 2Q from
Wednesday as production figures pointed
1Q, but it was 0.6% lower than the same
at slowdown. US Empire Manufacturing
quarter last year.
fell to 4.14 in September, after it stood at
7.10 in August. The reading came way
In UK, claimant count rate remained
below expectations for a rise to 8.00.
unchanged at 4.5% in August, while 3-
Similarly, industrial production also
month unemployment rate for July stuck
slowed from 0.6% in July to 0.2% in
at 7.8%. Jobless claims increased 2.3K in
August. The figure came in as expected
August after posting a 1K decline in July.
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15 September 2010 Page 1
 Market Gazer
Average weekly earnings (including
bonus) for the three months ending July
was up 1.5%, faster than the prior 1.1%
rise, but lower than the expected 1.7%
rise.
Source: Office for National Statistics
Bayer projected that the market for its
Xarelto blood thinner would be as huge as
$15 billion. According to the CEO Werner
Wenning on Wednesday, the drug which
was developed by Johnson & Johnson &
Bayer AG could reach sales of 2 billion
euros annually. Its rivals would be Pradaxa
from Boehringer Ingelheim GmbH and
apixaban from Bristol-Myers and Pfizer.
Bayer is still in process to obtain approval
for Xarelto and will present it in
November at at the American Heart
Association meeting, while apixaban is still
waiting for more results next year.
Pradaxa however, will hear preliminary
findings from the Food and Drug
Administration on Thursday. Bayer was up
0.37% to end at €51.67.
BP was reportedly failed to comply with
regulations related to training of offshore
operators on how to respond to an oil spill
at four of its five North Sea oil rigs in
15 September 2010
Hong Kong - Japan - Germany - UK - North America
2009. CEO Tony
Hayward however, said
that fundamentally,
there was no weakness
in the company’s North Sea installations.
In addition, Hayward also denied that the
US government intervened in the
company’s decision to suspend its
dividend after the spill incident. Also,
according to the outgoing CEO, BP will
reconsider its relationship with
contractors. BP fell to 404.1 pence, or
2.67%.
Yahoo! was a big mover on Wednesday as
the company was rumored planning to
sell its share in Alibaba amounting to $11
billion. Despite Yahoo’s denial, the shares
jumped 4.69% and ended at $14.27.
IBM announced that it has
reached a deal to acquire
OpenPages, a company
that makes software to
ease identifications and management of
risk and compliance activities via a single
management system. No further details
were available. IBM shares was up 0.45%
to $129.43.
Boeing was said to have received illegal
aid from the US, according to the World
Trade Organization findings. The matter is
expected to end at some point since
nobody will benefit from it, according to
the British Airways CEO Willie Walsh. BA
flies both Boeing and Airbus planes.
Airbus SAS also deemed to have broken
the WTO rules. Boeing inched 0.05%
lower at $62.73.
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 Market Gazer Hong Kong - Japan - Germany - UK - North America
GlaxoSmithKline was
downgraded at Jefferies as
Avandia’s place in the
market is at risk. Currently,
Glaxo is at HOLD down from BUY earlier.
At the end of London trade, the shares
were 0.12% higher at 1,283.50 pence.
3M was placed at HOLD at Citigroup
based on valuation call. Target set at $90.
3M fell 0.06% to $84.58.
General Electric was put at
BUY at Citigroup, with price
target set at $19. GE ended
at $16.34, up 1.1%.
Oracle was put at OUTPERFORM at Wells
Fargo, sending the shares up 1.42% to
$25.74.
Walmart announced its
collaboration with
Deutsche Telekom’s T-
Mobile to offer Walmart Family Mobile
service to its store and online customers.
The package will cover 100 megabytes of
data, able to be shared among family
members. Leftovers can be carried over to
the subsequent month. If used up, data
could be purchased. For unlimited talking
and texting the fee would be at $45 per
month. The retailer giant ended the day at
$52.86, up 0.38%.
wednesday preview 
As usual, Thursday will cover US jobless
claims for the week ending September
11th. The claims are expected to increase
15 September 2010
to 458K from 451K, while US PPI figures
are also scheduled for release on
Thursday. Excluding food & energy, the
month-on-month reading is expected to
show a slowdown to +0.1% in August from
+0.3% in July. Year-on-year, core PPI is
seen slowing from 1.5% to 1.3%. Headline
PPI on the contrary, is seen accelerating
0.3% from July to August, compared to
0.2% rise from June to July. Its year-on-
year measure is seen slowing down from
4.2% gains in July to 3.0% increase in
August. Another key data will be the
Philadelphia Fed Index which is seen at
0.3 in September, improving from -7.7 in
August. With inflation data having minor
impacts lately, focus will be on the job
data and the Philly index data.
August UK retail sales will be released,
with m/m reading is expected to slow
from 1.1% to 0.3%, and y/y reading is seen
accelerating from 1.3% to 1.9%. Excluding
autos and fuel, m/m data is expected to
slow from 0.9% to 0.2%, while y/y the
figure is seen to be gathering pace from
2.4% to 2.8%.
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.
E-mail: market.techspeak@gmail.com
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