US FINANCIAL MARKET
- U.S. stocks dropped on Monday as the partial U.S. government shutdown dragged on with no signs politicians were willing to relax positions over the debt-ceiling limit or budget impasse.
- Airbus announced its first jet order from Japan Airlines, breaking open the last big aviation market dominated by Boeing. The landmark deal for 31 wide-body A350 jets with a combined $9.5 billion list price follows an intense battle between the planemakers as JAL and domestic rival ANA Holdings seek dozens of new long-haul jets over the next decade.
- Airbus could sell more than 1,200 aircraft in 2013 after exceeding its full-year goal of at least 1,000 in the first nine months. Airbus posted 1,112 orders between January and September.
- Apollo Tires’ $2.5 billion acquisition of Cooper Tire & Rubber has flared into a war of words as the two companies haggle over the price of the deal plagued by labor issues.
- Workers at Amazon’s German operations could strike during the Christmas holiday season in a dispute over pay that has been raging for months.
- GE expects the firm’s infrastructure businesses in emerging markets to post 10-15 % growth in the next five to 10 years.
- BlackBerry is in talks with Cisco, Google and SAP about selling them all or parts of itself.
- Time Warner Cable announced that it has entered into a definitive agreement with Duke Energy and investment funds managed by Alinda Capital Partners to buy DukeNet Communications for $600 million in cash. DukeNet, based in Charlotte, N.C., is a regional fiber optic network company serving customers in North Carolina and South Carolina, as well as five other states in the Southeast.
- Goldman Sachs, JPMorgan Chase and six other banks have agreed to join a new instant messaging network from Markit and Thomson Reuters to connect disparate messaging systems. The network, called Markit Collaboration Services, will be launched on Monday and allows members to chat with one another regardless of the proprietary messaging technology that each firm uses. This open platform contrasts with Bloomberg LP’s messaging system, which is a closed network only for users of Bloomberg terminals.
- Top Analyst Upgrades and Downgrades:
- Apple was raised to Buy from Hold and the price target was raised to $600 from $425 at Jefferies.
- General Electric coverage resumed with a Neutral rating and a $26 price target at Goldman Sachs.
- IBM was downgraded to Equal Weight from Overweight and the price target was cut to $190 from $215 at Barclays, and it was reiterated as Underperform with $175 price target at Credit Suisse.
- Edison International (EIX) was raised to Buy from Hold with a $57 price target at Argus.
US ECONOMY & POLITICS
- The United States faces a deadline of October 17 to raise its $16.7 trillion debt limit or risk an unprecedented debt default.
- Republican House Speaker John Boehner vowed on Sunday not to raise the U.S. debt ceiling without a “serious conversation” about what is driving the debt, while Democrats said it was irresponsible and reckless to raise the possibility of a U.S. default.
EUROPE & WORLD
- The World Bank lowered its 2013 and 2014 economic growth forecasts for China and most of developing East Asia.
- It expects developing East Asia to expand by 7.1 % this year and by 7.2 % in 2014, down from its April estimate of 7.8 % and 7.6 %, respectively.
- The World Bank expects the Chinese economy to expand by 7.5 % this year, down from its April forecast of 8.3 % and below the IMF’s most recent forecast of 7.75 %.
- The World Bank cut its growth forecast for Indonesia to 5.6 % for 2013 and 5.3 % next year, down from its previous estimates of 6.2 % and 6.5 %, respectively.
- The World Bank expects the Philippines to grow by 7.0 % this year, much faster than the April forecast of 6.2 %. For 2014, the economy would probably expand by 6.7 %, better than the previous estimate of 6.4%.
- Greece will emerge from six years of recession next year, a draft budget forecast on Monday.
- Moody’s keeps negative outlook on Russia banks as bad debts grow.
- Two Americans and a German-American won the Nobel Prize in medicine on Monday for discovering how key substances are transported within cells.
TODAY in HISTORY
- The Stamp Act Congress convened in New York to draw up colonial grievances against England (1765)
- The Republic of East Germany was formed (1949)
- The Motion Picture Association of America adopted its film-rating system, ranging from “G” for general audiences to “X” for adults only (1968)
- California governor Gray Davis was recalled and former bodybuilder and actor Arnold Schwarzenegger was elected in his place (2003)
Sources: Reuters, Yahoo Finance, Google Finance, Bloomberg, CNN Money.
This information has been prepared from sources believed to be reliable, but no representation is being made as to its accuracy or completeness. The information provided should be used only as general information and is not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in the material may not develop as predicted. All indices, such as the S & P 500, are unmanaged and may not be invested into directly. Securities offered though LPL financial Member FINRA / SIPC