US FINANCIAL MARKET
- U.S. stocks rose at the open on Monday as large deals boosted optimism after a steep decline last week, though investors remained heavily focused on an upcoming Federal Reserve policy meeting.
- Procter & Gamble plans to reorganize its overseas business as part of CEO A.G. Lafley’s plans to cut costs, according to a Bloomberg.
- Avago Technologies agreed to buy LSI for $6.6 billion.
- American International Group (AIG) said it would sell its aircraft-leasing business to AerCap Holdings in a deal valued at about $5.4 billion.
- Blackstone, CCMP Capital and Investcorp are in a shortlist to buy a minority stake in Italian fashion house Versace. The family-owned luxury goods group is selling a stake of around 20 % ahead of a possible stock market listing in three to five years.
- Foreigners poured money back in the United States in October at the biggest monthly clip in five years after they fled from them in September on fears that the government could default on some of its debt obligations, U.S. Treasury data showed on Monday.
- Foreigners bought $194.9 billion more in U.S. stocks and bonds than what they sold in October, compared with a net sale of $97.6 billion in September. October’s capital inflows into the United States were the largest monthly increase since a $272.9 billion surge in October 2008.
US ECONOMY & POLITICS
- Members of Congress are congratulating themselves on a budget accord set to win final passage this week. Business leaders aren’t celebrating, saying the deal leaves too much unfinished business.
- Industrial production recorded its largest increase in a year in November as mining and utilities output rebounded strongly, in the latest suggestion the economy is gaining steam as the year winds down. Industrial output increased 1.1 % last month.
- Industrial capacity utilization – a measure of how fully firms are using their resources – was 1.2 percentage points below its long-run average.
- The New York Federal Reserve said on Monday its “Empire State” manufacturing activity index rose in December to 0.98 from -2.21 in November. Economists in a Reuters survey had expected a reading of 4.75.
EUROPE & WORLD
- China landed an unmanned spacecraft on the moon on Saturday, in the first such “soft-landing” since 1976, joining the United States and the former Soviet Union in managing to accomplish such a feat.
- Ukraine is likely to get a discount for Russian natural gas of at least 25 % from the price it now pays. Russia signaled on Monday it was about to agree a loan and gas deal with Ukraine to help Kiev stave off economic chaos and keep it in its former Soviet master’s orbit. In Kiev, the opposition went ahead with preparations for another big rally for Tuesday against what they see as moves by President Viktor Yanukovich to sell out national interests to Russia.
- Markit’s Flash Euro zone Composite Purchasing Managers’ Index (PMI), which gauges business activity across thousands of companies large and small, rose to 52.1 in December from 51.7 last month. It was the second-highest reading since mid-2011 and beat the median forecast.
- The French composite PMI fell to a seven-month low of 47.0 and signaled a steady contraction in activity, while the same measure in Germany showed a solid expansion to 55.2.
- Markit’s Euro zone Manufacturing PMI rose to 52.7 in December from November’s 51.6. That was its best showing in 31 months and smashed median expectations for 51.9.
- The PMI for the services sector, which makes up the bulk of the euro zone’s economy, dipped to 51.0 from 51.2, confounding expectations for a rise to 51.5.
- Japanese business confidence improved over the three months to December to its highest level in six years.
TODAY in HISTORY
- Oliver Cromwell became lord protector of England, Scotland, and Ireland (1653)
- The Boston Tea Party took place (1773)
- Colin Powell was selected to become the first African-American secretary of state (2000)
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.