Macau casino stocks could be added to HSI: broker

Tue, 07 Feb 2012 09:33:28 GMT

HONG KONG (MarketWatch) -- BNP Paribas identified Macau gambling stocks Sands China and Wynn Macau as likely candidates for addition to the Hang Seng Index, as part of the quarterly rebalancing due to be unveiled Friday. Ranking highly in terms of market capitalization and turnover, each stock has also surpassed the 24-month mark since listing on the Hong Kong Stock Exchange, the French bank said in a research note released Monday. If added, Sands China and Wynn Macau would fill slots currently vacant, bringing the number of index constituents to 50, and contribute 1% and 0.5% to the Hang Sang, respectively. BNP Paribas said the compiler of the index had few alternatives as the casinos were the "only eligible non-financial candidates." BNP said it doesn't expect any changes in the Hang Seng China Enterprises Index.

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UBS profit falls 76%, cautious on outlook

Tue, 07 Feb 2012 08:59:31 GMT

MADRID (MarketWatch) -- Weighed by uncertainty over Europe's sovereign debt crisis and European banking issues, Swiss banking group UBS AG on Tuesday reported a 76% fall in fourth-quarter profit to 393 million Swiss francs ($427 million), or 0.10 francs per share, from 1.66 billion francs, or 0.43 francs per share, in the year-ago period. That fell short of a profit forecast of 739 million Swiss francs by Dow Jones Newswires. Total operating income was 5.97 billion francs against 7.14 billion francs in the year-ago period. UBS gave a cautious outlook. "As in the fourth quarter of 2011, ongoing concerns surrounding eurozone sovereign debt, the European banking system and U.S. federal budget deficit issues, as well as continued uncertainty about the global economic outlook in general, appear likely to have a negative influence on client activity levels in the first quarter of 2012," said Kaspar Villiger, chairman of the board of directors and Sergio P. Ermotti, group chief executive officer in a statement. Shares fell around 1% in Zurich.

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Europe stocks mostly flat; UBS, LVMH, Xstrata off

Tue, 07 Feb 2012 08:26:25 GMT

MADRID (MarketWatch) -- European stock markets traded mostly flat on Tuesday, with investors focused on a handful of earnings, plus deal news in the resource sector. The Stoxx Europe 600 index was flat at 264.31, with UBS AG bucking a largely positive trend for banks, down 2% after reporting results. The French CAC 40 index rose 0.3% to 3,415.30, led by a 1.2% rise for BNP Paribas SA and a 2.2% gain for ArcelorMittal SA after the steelmaker reported earnings. Shares of LVMH Moet Hennessy Louis Vuitton SA fell 2.6% in Paris, tracking losses in the luxury goods sector, with Christian Dior SA down 3.1% and Burberry Group PLC off nearly 2%. The German DAX 30 index was flat at 6,768.08. The FTSE 100 index was flat at 5,890.96, with shares of Xstrata PLC down 2.7% after announcing with Glencore International PLC terms of its all-share merger of equals.

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China's 3G subscribers surge to 128 million

Tue, 07 Feb 2012 08:25:09 GMT

HONG KONG (MarketWatch) -- China's total 3G cellphone subscribers surged to 128 million in 2011, up from 46.6 million subscribers a year earlier, according to Xinhua news agency report Tuesday, which cited figures released by the Ministry of Industry and Information Technology.

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Glencore, Xstrata agree terms on merger of equals

Tue, 07 Feb 2012 07:51:06 GMT

MADRID (MarketWatch) -- Glencore International PLC and Xstrata PLC on Tuesday said they have agreed terms to an all-share merger of equals, creating a natural resources group -- Glencore Xstrata International PLC -- with a combined equity market value of $90 billion. Under the terms, Glencore will issue 2.8 new shares for each Xstrata share held, excluding those Xstrata shares already held by Glencore, giving Xstrata shareholders a 45% stake in the combined equity. The merger values Xstrata shares at 1,290.10 pence each, a total value of 39.1 billion pounds ($61.8 billion), and a 15.2% premium to Xstrata's Feb. 1 closing share price. The combined group estimates earnings before interest, taxes, depreciation and amortization of at least $500 million and the deal is seen as earnings accretive to Xstrata shareholders in the first full year of the combined group. Xstrata's chief executive officer, Mick Davis, has been named CEO of the combined group and Ivan Glasenberg, current Glencore chief executive officer, will be deputy CEO and president. (updates to add name of proposed merger)

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ArcelorMittal loss widens on weak Europe economies

Tue, 07 Feb 2012 07:42:59 GMT

MADRID (MarketWatch) -- ArcelorMittal on Tuesday said losses widened in the fourth quarter as growing uncertainty over Europe's economy hit sentiment and affected the group's performance. It reported a fourth-quarter net loss of $1 billion against a loss of $780 million in the year-ago period. The company took a full-year non-cash charge of $1.3 billion, along with asset impairments of $200 million and restructuring charges of $200 million. Sales totaled $22.45 billion, against $20.70 billion in the year-ago period. Fourth-quarter steel shipments were down 2.5% against the third quarter, mainly due to destocking in Europe. "Looking ahead to 2012, the situation in Europe remains a live concern. Despite the continued uncertainty in this market, however, we are seeing an improvement in sentiment compared with the fourth quarter," said Lakshmi N. Mittal, chairman and chief executive officer. "Steel shipment volumes for the first six months are expected to be similar to the first half of 2011 and we are again targeting increased production from our mining business." The group sees first-half 2012 adjusted earnings lower than the comparable period of 2011, but above the second-half 2011 level. Overall steel shipment volumes in the first half of 2012 are seen similar to levels in the first half of 2011.

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China central bank move could be hawkish signal

Tue, 07 Feb 2012 04:20:10 GMT

HONG KONG (MarketWatch) -- The People's Bank of China appeared to signal intentions to keep liquidity tight in the money markets Tuesday by reportedly absorbing 26 billion yuan ($4.1 billion) through 28-day bond repurchase agreements, a move that suggested hopes for an easing of bank reserve requirements may have to wait. About 2 billion yuan in central bank notes are due to mature this week, which means the PBOC's move amounts to a net withdrawal of liquidity, reports said. Credit Agricole CIB analyst Frances Cheung said the news dashed hopes that authorities are preparing to lower the required reserve ratio on domestic banks to bolster funds circulating in the banking system. "Policy makers have been very cautious towards policy easing, possibly mindful of inflationary pressures," Cheung said in a note Tuesday. However, a Dow Jones Newswires report also said that a routine short-term bill offering was cancelled for a fifth week, a move that would result in more rather than less liquidity.

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Australia's RBA keeps cash rate on hold at 4.25%

Tue, 07 Feb 2012 03:42:01 GMT

SYDNEY (MarketWatch) -- Australia's central bank kept its key cash rate on hold at 4.25% on Tuesday, surprising the market which had expected the central bank to cut its policy rate. "The acute financial pressures on banks in Europe were alleviated considerably late in 2011 by the actions of policymakers," the RBA said in a statement released alongside the rate decision. "Financial market sentiment, though remaining skittish, has generally improved since early December," the RBA added. "With growth expected to be close to trend and inflation close to target, the board judged that the setting of monetary policy was appropriate for the moment," the RBA said in its statement. The Australian dollar rose to $1.0792 after the decision, up from $1.0707 just ahead of the announcement. Shares turned lower, with the benchmark S&P/ASX 200 down 0.4% at 4,287.10.

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Most states agree to bank settlement: Iowa AG

Tue, 07 Feb 2012 02:01:59 GMT

WASHINGTON (MarketWatch) - More than 40 states have signed on to a broad settlement with five big banks over foreclosure practices, according to the attorney general for Iowa late Monday. State attorneys general and federal officials have been in settlement discussions for more than a year with banks over the "robo-signing" crisis - the practice of assigning bank employees to rapidly approve numerous foreclosures with only cursory glances at the glut of paperwork to determine if all the documents are in order. However, earlier Monday officials from key states, including California, Nevada and Delaware, said they were still reviewing the settlement terms and have not signed on. "This enables us to move forward into the very final stages of remaining work," said Iowa Attorney General Tom Miller in a statement.

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Hong Kong stocks rise early, as property advances

Tue, 07 Feb 2012 01:43:09 GMT

LOS ANGELES (MarketWatch) -- Hong Kong stocks gained in early trading, with real estate and energy among the sectors on the rise. The Hang Seng Index added 0.5% to 20.813.61, and the Hang Seng China Enterprises Index rose 0.3%, although the Shanghai Composite lost 0.8%. Often-volatile property recouped some of their losses from the previous session, with Cheung Kong Holdings Ltd. up 1.1%, and Sun Hung Kai Properties Ltd. adding 0.8%. Among the energy names, Cnooc Ltd. and PetroChina Co. gained 1% each, after a more than 1% gain for Brent crude-oil futures overnight. Exporters were also firmer, with Lenovo Group Ltd. ahead by 0.8%, Esprit Holdings Ltd. up 2.9%, and Li & Fung Ltd. advancing 0.6%.

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Japan stocks weaken, with telecoms trading down

Tue, 07 Feb 2012 00:20:46 GMT

LOS ANGELES (MarketWatch) -- Japanese stocks started weaker Tuesday, tracking a soft lead from Wall Street overnight, and with disappointing earnings results dragging on some shares. The Nikkei Stock Average 0.2% 8,913.39, although the Topix traded flat. Nippon Telegraph & Telephone Corp. led telecom shares lower with a 1.1% decline after posting a 56% quarterly profit drop late Monday. Among others in the sector, NTT DoCoMo Inc. fell 0.2%, Softbank Corp. lost 0.9%, and KDDI Corp. traded down 0.3%. Shares of Suzuki Motor Corp. lost 1.4% after posting a profit slide of just under 5% during the April-December period. Among gainers, shipping stocks moved higher after a recent slump, with Mitsui O.S.K. Lines Ltd. rising 2.8%, and Nippon Yusen K.K. up 1.4%.

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Japan conducted secret forex intervention: reports

Mon, 06 Feb 2012 23:59:19 GMT

LOS ANGELES (MarketWatch) -- Japan's government and central bank conducted 1 trillion yen ($13 billion) worth of unannounced foreign-exchange intervention in early November, according to a Tuesday report in the Asahi Shimbun. Japan's last public move into the forex markets was on Oct. 31, but the report cited unnamed sources as saying further action took place after that date to seek to depress the value of the yen. The October operation took the U.S. dollar from below ¥76 to trade briefly above ¥79. Early Tuesday, the dollar [CUR_USDYEN] was buying ¥76.56. A subsequent Dow Jones Newswires report said foreign-exchange data suggested Japan sold ¥8.07 trillion on Oct. 31 and another ¥1.02 trillion in the days following, with the intervention continuing through Nov. 4.

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