Markets Overnight:
US Equity markets bounced from their two day free fall as the market grew tired of the back and forth in Europe. With the EU leaders meeting starting today, investors will be vigilant to see what news is released or otherwise leaked! Greece was threatened their €8billion aid package would not be paid until 4 December which is the date Papandreou is expected to hold the referendum, after being persuaded to move it forward from January. The US FED stated yesterday that they expect low growth going forward…REALLY? What a surprise, who would have guessed! That prediction also included a higher unemployment rate expectation, alongside an unchanged interest rate for the period.
Earnings reports out of the US kept the market buoyant yesterday alongside a number of economic data points such as the increased number of new jobs and a 4 year record auto sales for the month of October.
South Africa:
Deputy President Motlanthe said he is happy that Walmart has chosen SA as an investment destination. Julius Malema’s disciplinary hearing will conclude next week after two months of debate.
Company News:
Sasol [SOL] plans to drill at the Mupeji block in Mozambique and are currently looking to expand assets within Australia. Famous Brands [FBS] starts a new lower-end pilot project providing pap and vlies to the lower LSM market. African Bank [ABL] expects headline earnings per share to increase between 23%-25% compared to the previous reporting period. Richemont [CFR] experienced a +51% yoy increase in watch and jewellery sales. Nedbank [NED] reported a 15.6% increase in non-interest revenue and an 8.9% in interest revenue.
Today:
A large number of US companies continue the reporting season today with some of the bigger names being; CBS Corp, Apache Corp, Estee Lauder Inc., Kellogg Co. and Starbucks Corp. Locally Arcelormittal [ACL], The Foschini Group [TFG] and Afrimat [AFT] report their respective time periods. Also keep an eye out for the SACCI Business Confidence.
The Nikkei, the Japanese stock exchange, is closed for the day while Asia leads on the downside following comments that the European leaders are cutting off aid to Greece due to the referendum. Adding to the Asia negativity could be China’s Non-manufacturing PMI which decreased.
