CAPIS Capital Institutional Services : Coming of Age Day Global Recap 1/09/16

Asian Headlines

Asia was mixed with Japan Closed for Coming of Age Day. (Glenn seems to think they hold the holiday in my honor.) There was some limit to activity given the Japanese holiday. Chinese reserves fell once again during December bringing the total decline for 2016 to $320b.

Most of Greater China advanced led by natural gas and green plays. China is expected to submit new rules aimed to reduce air pollution. Taiwan was down small with Sharp suppliers spooked by reports the company is seeking 20.0% price cuts. There was also local speculation of reform among the defense sector. The sector may have also gotten a boost due to some saber rattling by China. China has issued warnings to S. Korea regarding the roll-out of the THAAD missile defense system.

Those tensions weighed upon S. Korean consumers stocks with Chinese exposure including LG Household (flat) and Amorepacific -2.1%. The KOSPI held steady thanks to Samsung Elec. +2.8%. The company posted sales of KRW 53t beating estimates despite the Galaxy Note 7 blow up. LG Elec. +1.9% initially opened lower after posting an oper. loss while the market was looking for a profit. The shares moved into the green over the course of the day.

It was another G'day Down Under as the ASX continues its winning streak since the New Year. This was despite basic resources generally weaker on the day. The Construction index in Dec. rose 0.4 Pts. m/m to 47. November building approvals jumped 7% m/m besting the 4.5% estimate.

European Headlines

The major story of the day has been the £ which has given ground following comments from U.K. PM May that tilt towards a harsh Brexit. The currency has spent most of the morning weaker by at least 0.9%.

VW +4.0% is leading the auto sector following reports in the New York Times the company is close to settling the emissions case with the U.S. DoJ. Also, VW brand sales rose 16.0% during December. Elsewhere in the sector, Continental +0.2% sees FY '17 revenues gaining in excess of 6.0%.

Conversely, Fresenius Medical -6.3% is tumbling after the company disclosed it has received a subpoena in the States regarding a patient assistance program.

The U.K. government has continued to reduce its stake in Lloyds -1.5% and is no longer the largest shareholder.

Lufthansa -5.2% has failed to provide forward guidance which is unsettling to the market.

Reports of higher Iraqi output and the stronger U.S. rig count from last week has crude weaker by more than 1%.

McDonalds is selling a stake in its Chinese/Hong Kong operations to the Citic and Carlyle groups.

Market Prices and Macro Data

GE	1)	Industrial Production SA MoM	Nov	0.60%	0.40%	0.30%	0.50%
GE	2)	Industrial Production WDA YoY	Nov	1.90%	2.20%	1.20%	1.60%
GE	3)	Trade Balance	Nov	20.3b	22.6b	19.3b	19.4b
GE	4)	Current Account Balance	Nov	22.1b	24.6b	18.4b	19.4b
GE	5)	Exports SA MoM	Nov	0.50%	3.90%	0.50%	-
GE	6)	Imports SA MoM	Nov	1.10%	3.50%	1.30%	1.20%
FI	7)	Trade Balance	Nov P	-	-150m	-192m	-
FR	8)	Bank of France Bus. Sentiment	Dec	101	102	101	-
DE	9)	Trade Balance ex Ships	Nov	-	5.7b	5.6b	-
DE	10)	Current Account (Seasonally Adjusted)	Nov	-	16.7b	14.1b	13.0b
SZ	11)	Retail Sales Real YoY	Nov	-	0.90%	-0.50%	-0.70%
UK	12)	Halifax House Prices MoM	Dec	0.30%	1.70%	0.20%	0.60%
UK	13)	Halifax House Price 3Mths/Year	Dec	5.80%	6.50%	6.00%	-
SZ	14)	Total Sight Deposits	6-Jan	-	529.7b	529.0b	-
SZ	15)	Domestic Sight Deposits	6-Jan	-	467.6b	466.3b	-
IC	16)	Trade Balance	Dec P	-	-4400	-11659	-
IT	17)	Unemployment Rate	Nov P	11.60%	11.90%	11.60%	11.80%
EC	18)	Sentix Investor Confidence	Jan	12.8	18.2	10	-
IT	19)	Bank of Italy Report on Balance-Sheet Aggregates
EC	20)	Unemployment Rate	Nov	9.80%	9.80%	9.80%	-
GR	21)	Industrial Production YoY	Nov	-	2.30%	6.80%	7.00%
BE	22)	Unemployment Rate	Nov	-	7.60%	7.90%	7.60%
PO	23)	Trade Balance	Nov	-	-791m	-870m	-862m
BE	24)	Budget Balance YTD	Dec	-	-12.617b	-17.125b	-
IR	25)	Consumer Confidence Index	Dec	-	-	97.8	-
UK	26)	BRC Sales Like-For-Like YoY	Dec	-	-	0.60%	-