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

market review : global revenue. If successful, the public spending cut

amounting to 81 billion pounds will narrow
the deficit from 10.1% of GDP to 2.1% of GDP
Asian markets ended down on Wednesday as
in 2014/15 fiscal year.
the negative impact from China rate hike
spilled all over Asia. Nikkei 225 Average closed
Cheung Kong has been reportedly backed
at 9,381.60, down 157.85 points or 1.65%.
away from making a formal bid on U.K.’s high-
Hang Seng Index also slipped to 23,556.50 or
speed rail-link to the Channel Tunnel owned
207.23 points lower (-0.87%). Shanghai Stock
by London & Continental Railways.
Exchange Composite Index however, rose to
3,003.95 or 2.1 points (+0.07%).
Sinopec was said to have
planned selling up to 23
Later in Europe and U.S., stocks rebound after
billion yuan worth of
being hammered on Tuesday. Dow Jones
convertible bonds,
Index was back above 11,000 as it climbed
1.18% to 11,108.00. S&P 500 was up 1.05% to according to the
company’s statement at
1,178.17, and Nasdaq Composite was up
the Ministry of Environmental Protection’s
0.84% to 2,457.39. FTSE 100 also ended up at
website.
5,728.93 or gained 0.44%, while DAX ended at
6,524.55 or advanced 0.52%.
China Overseas Land & Investment January-
While the sudden rate hike sent Japanese and September operating profit rose 5at HK$11.4
billion, while revenue amounted to HK$25.9
Hong Kong shares south, Japanese shares got
billion. In 3Q 2010, operating profit was at
an extra negative boost from the
HK$3.4 billion, up 59% from a year earlier,
strengthening yen. In China, the rate hike
with revenue at HK$8.3 billion. The positive
eventually turned into positive boost as the
results however, were unable to hold shares
government’s measure is expected to control
steady as the market is now focusing on
inflation and keep the risk of asset bubbles in
China’s rate hike.
check. Property shares and commodities firms
mostly down while insurers rose on the
China Mobile’s additional
notion that higher deposit rates would raise
total users were at 5.401
yields.
million in September, while in
August, the operator
Bank of England MPC minutes
showed that 7 of 9 officials recorded a 5.428 million of users. By the end
of September, total users were at 5.401
voted for no policy change
million against 5.428 million in August. In
while Andrew Sentence favored
an interest rate hike and Adam Posen wanted terms of total users, by the end September
the numbers were at 569,757 million, of
more bond purchases. In a separate occasion,
which 15,279 million of them was 3G users.
Governor Mervyn King showed that he is
open to stepping up asset purchases. About 1.86 million 3G users were added
during September after 1.585 million in
Elsewhere, Chancellor George Osborne’s
August. Net profit for January-September
budget cut is seen eliminating nearly 500,000
public sector employment and in addition period was at 87.25 billion yuan, up 3.9%.
imposing a levy on banks to gain additional
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20 October2010 Page 1
 Market Gazer Hong Kong - Japan - Germany - UK - North America
Operating revenue was at 352.64 billion
during the first nine months of 2010.
Boeing beat the estimates of $1.06 per share
of net income as the company scored EPS of
$1.12 with net income of $837 million.
Growth in revenue was at 2% as sales
amounted to $16.97 billion, also beating
estimates of $16.72 billion. For 2010, Boeing
expected the full-year earnings of $3.80 to $4
per share, up from $3.50 to $3.80, within the
consensus from analysts of $3.95. Revenue
was seen around $64 billion to $66 billion,
slightly different than the prior estimate of
$64.5 billion to $65.5 billion. Consensus was
at $64.5 billion.
eBay Inc. recorded 3Q
net profit of $431.9
million or 33 cents,
better than $350
million or 27 cents posted a year ago.
Earnings were 40 cents per share if the sales
of Skype was excluded, better than the
analysts’ expectation of 37 cents. Revenue
was up 1% to $2.25 billion, also exceeding the
consensus of $2.18 billion. In its outlook, the
estimated 4Q revenue is seen between $2.39
billion and $2.49 billion with adjusted EPS of
45 cents to 48 cents.
BASF SE saw strong 3Q as EBIT excluding one-
time items climbed 77% to €2.2 billion,
beating estimates of €1.9 billion. Sales in 2010
are expected to reach around €63 billion with
EBIT outside one-time items amounting to
over €8 billion. The company warned
however, that the strong performance in 2010
may not be repeated in 2011.
Bayer fell 1.3% as its Xarelto
drug was beaten by Boehringer
Ingelheim’s Pradaxa in a bid to
win approval to sell the blood
20 October2010
thinner drug in the U.S. Bayer settled at
€54.18. J&J, Bayer’s partner in developing
Pradaxa, ended at $63.60 or up 0.49%.
Apple’s Mac Event unveiled the new MacBook
Air which is lighter, and the Lion Operating
System. Apple will also open an application
store for Macs, similar to the ones for iPhone
and iPad. While Mac store will open in about
3 months, Lion will be out in summer 2011.
The new MacBook Air will add features from
iPad. Apple gained 0.34% to finish at $310.53.
economic data
Chinese industrial output slowed to 16.3% in
the January-September period from 16.6%
increase in January-August period, according
to Li Yizhong, Minister of Industry and
Information Technology.
Thursday will feature Chinese CPI, GDP, Fixed
Assets Investment, PPI, and Retail Sales. In
Europe, German and Eurozone manufacturing
PMI will due, while U.K. retail sales will also
set for release. US leading indicators and
Philadelphia Fed index will be due as well.
upgrades & downgrades 
 HKEX: OUTPERFORM with target at
HK$183 – Daiwa.
 Oracle: Barclays upgraded price target to
$31.00 from $29.00, while reiterated the
OVERWEIGHT rating.
 IBM: Barclays Plc raised IBM’s target price
to $153 from $145, EQUAL WEIGHT rating
maintained. Morgan Stanley kept IBM at
EQUAL WEIGHT while reducing its
estimates. Argus maintained a BUY rating
with price target raised from $148 to
$165. Citi raised its price target to $160
while maintaining a BUY rating.
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 Market Gazer Hong Kong - Japan - Germany - UK - North America

 Halliburton: FBR Capital put Halliburton Disclaimer: This report is provided for information purposes
only. It is not an offer to sell or to buy any securities. This
at MARKET PERFORM, with price target report has been prepared based on sources believed to be
set at $40.00. Citigroup kept BUY rating reliable, but there is no assurance or guarantee regarding its
with price target set at $47.00. completeness & and accuracy. The author accepts no
responsibility or liability arising from any use of the report.
 Goldman Sachs: Ticonderoga Securities
maintained BUY rating with price target
set at $185.00. Rochdale Securities
suggested BUY on Goldman after better-
than-expected earnings.
 Apple Inc.: Ticonderoga set price target at
$450, up from $430, while kept the rating
at BUY. Needham & Co. maintained BUY
rating with price target set at $375.00.
Susquehanna raised target price to $390
from $365 with POSITIVE rating
maintained.
 General Electric: Morgan Stanley lowered
its estimates while maintained
OUTPERFORM rating and price target at
$22.00 on the back of lower wind power
shipments.
 Intel: First Global downgraded the stock
to MARKET PERFORM from
OUTPERFORM.
 eBay: RBC boosted price target to $28.00
while keeping the rating at OUTPERFORM.
 Citigroup: Argus assigned Citi at SELL.
 Ford Motor: DB upgraded Ford from
HOLD to BUY, setting price target at
$19.50.
 Coca-Cola: UBS held BUY rating on the
stock, with price target set at $65.00.
 Microsoft: Citigroup revised price target
to $30.00 from $31.00 as PC sales soft.
BUY rating has been maintained with
estimates set at $2.35 and $2.56 for 2011
and 2012, respectively.
 American Express: FBR Capital cut Amex
price target citing that DOJ lawsuit would
bring negative influence on the stock.
 Johnson & Johnson: Citigroup raised its
estimates and price target of J&J to
$70.00 while reiterated the stock at BUY.

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20 October2010 Page 3