GLOBAL MARKETS-China data weighs on world stocks, copper
* Copper declines after data from China, the biggest user* Global stocks slip after six days of gainsBy Rodrigo CamposNEW YORK, Oct 13 (Reuters) - Global stocks and copper
prices fell from recent highs on Thursday after weak data from
China reinforced concerns about the global economy, while the
euro dipped on lagging worries over the European debt crisis.The European Central Bank warned about the effect of
bondholder write-downs, and investor unease on the
effectiveness of current measures to prevent the spread of the
euro zone debt crisis could be seen in the rise in yields on
Italian bonds.Major stock markets had recently jumped sharply on hopes
the debt crisis was close to being resolved.Prices of U.S. Treasury debt rose as investors sought
relative safety.On Wall Street, shares of JPMorgan Chase slumped 5.5
percent to $31.39 after the bank reported a drop in quarterly
earnings. It was the first major U.S. bank to post results this
season.U.S. shares fell from three-week highs after China reported
its trade surplus narrowed for a second straight month in
September. Both imports and exports were lower than expected.The data reflected global economic weakness, which along
with the euro zone debt crisis, drove equities and commodities
to post heavy losses in the third quarter.An index of U.S. bank shares slid 4.3 percent.”JPMorgan is a good indicator of what is happening in the
banking industry and a little bit of an insight into where
consumer banking is headed.” said Kim Forrest, senior equity
research analyst at Fort Pitt Capital Group in Pittsburgh.In afternoon trading in New York, the Dow Jones industrial
average dropped 51.50 points, or 0.45 percent, to
11,467.35. The S&P 500 dropped 6.80 points, or 0.56
percent, to 1,200.45. The Nasdaq Composite gained 4.05
points, or 0.16 percent, to 2,608.78.A spike in shares of chipmakers kept the tech-heavy Nasdaq
higher.The S&P 500 has run up more than 10 percent from a 2011 low
hit on Oct. 4 and had notched its largest seven-day rally since
March 2009 on growing optimism European leaders were making
progress in tackling the region’s debt problems.World stocks as measured by MSCI were down
0.5 percent after six days of gains.The soft data from China also pressured copper prices . The industrial metal, often taken as a proxy for
economic growth expectations, fell 2.5 percent. China is the
world’s largest copper consumer, accounting for nearly 40
percent of global demand.The euro pared losses but was still trading lower against
the U.S. dollar, pulling back from a one-month high, after the
ECB warned about the impact on the currency and the region’s
banks of involving bondholders in euro zone bailouts.Slovakia’s parliament backed a plan to bolster the euro
zone’s rescue fund after political parties agreed to hold an
early election, concluding the ratification process in all euro
zone countries.But even with a revamped rescue fund, European banks are
still vulnerable to a Greek default and to sovereign
downgrades. That increases the urgency for them to raise more
capital to remain financially sound, analysts said.”After such a strong rally this week based on nothing but
hope, people realize that things are not going to come as
easily as they had hoped,” said Kathy Lien, director of
currency research at GFT in New York.The single currency hit a New York session low of
$1.3683, according to Reuters data. It last traded at $1.3762,
down 0.2 percent on the day. The euro on Wednesday touched its
highest versus the greenback since Sept. 16.Italy sold 6.2 billion euros of debt, split across four
bonds. But yields remained under pressure, and the European
Central Bank stepped into the secondary market after the
auction, buying Italian debt to cap rising yields.The Italian 10-year BTP yield was up to 5.829
percent from 5.738 percent late on Wednesday.The benchmark 10-year U.S. Treasury note was up 13/32
point, with the yield at 2.1656 percent.Thirty-year bonds gained as much as two points
after a $30 billion auction that saw yields fall below market
forecasts. They last traded up 1-10/32 in price to yield 3.1328
percent.
UPDATE 1-Robot flick ‘Real Steel’ wins weekend box office
By Lisa RichwineLOS ANGELES, Oct 9 (Reuters) - Boxing robots clashed with
Hollywood titan George Clooney at the weekend movie box office,
and the fighting machines came out the winner.Robot action flick “Real Steel” starring Hugh Jackman
topped the domestic box office and rang up $49.4 million in
global ticket sales. Clooney’s political thriller “Ides of
March” finished second.”Real Steel” brought in an estimated $27.3 million over
three days at U.S. and Canadian theaters, distributor Walt
Disney Co said on Sunday. Ticket sales beat studio forecasts
for an opening in the low- to mid-$20 million range.The film added $22.1 million from 19 international markets,
for a combined total of $49.4 million. The movie opened in
one-quarter of international markets and will debut more widely
in the coming weeks.”Real Steel” stars Jackman as a father who works with his
son to restore a battle-ready robot to fight for a
championship. The DreamWorks-produced film cost about $110
million to make and featured giant, remote-controlled robots
rather than computer images common in action and sci-fi films.The movie drew overwhelmingly positive reactions from
audiences, said Dave Hollis, Disney’s executive vice president
for motion picture sales and distribution. The film earned an A
on average from filmgoers polled by CinemaScore, and an A+ from
those under 25.About 12 percent of sales, or $3.2 million, came from
showings on giant Imax screens.CLOONEY’S LUCK”Ides of March,” the only other new film in wide release,
finished second with $10.4 million domestically, slightly ahead
of studio estimates.Clooney directed, co-wrote and co-starred in the film as a
Democratic presidential candidate fighting to win a key primary
as a scandal hits his campaign. Ryan Gosling plays the central
character, an ambitious spokesman thrust into a moral dilemma.
Other stars include Philip Seymour Hoffman, Paul Giamatti and
Marisa Tomei.Cross Creek Pictures produced the film, which was adapted
from an off-Broadway play, for about $12.5 million, and Sony
Corp unit Columbia Pictures distributed the movie in the United
States. Audiences polled by CinemaScore gave the film a B on
average.Last weekend’s box office leader, family film “Dolphin
Tale,” fell to third place with $9.2 million. The feel-good
movie, based on the true story of an injured dolphin
rehabilitated with a prosthetic tail, has brought in $49.1
million since its debut.Baseball drama “Moneyball,” starring Brad Pitt, stayed in
the game during its third week in theaters. The movie earned
$7.5 million, landing in fourth place and bringing the total
since its release to $49.3 million.Taking fifth place was “50/50,” a buddy comedy about a
young man’s battle with cancer. The film generated $5.5 million
domestically during its second weekend in theaters. Its total
ticket sales to date sit at $17.3 million.”Dolphin Tale” was distributed by Warner Bros, a unit of
Time Warner Inc . “Ides of March” and “Moneyball” were
released by Columbia Pictures, a unit of Sony Corp. Summit
Entertainment released “50/50.”
TEXT-Fitch affirms AstraZeneca at ‘AA-‘; outlook stable
AstraZeneca’s ratings are supported by its strong market
position as the number-six market player within the cash
generative global pharmaceuticals industry. Cash flows in the
industry are relatively predictable. The ratings are also
supported by the group’s strong geographical diversification and
high profitability. With 41.3% of 2010 group sales from the US,
27.6% from western Europe, 15.5% from rest of the developed
world and 15.6% from emerging markets, the group is considered
well diversified and not reliant on single health care systems.The Stable Outlook reflects the company’s significant
headroom within its debt protection measures, which allows the
company to pursue small- to medium-sized acquisitions without
triggering any change in the ratings.AstraZeneca’s EBITDA margin is high - at 40.4% in 2010. This
is helped by the group’s strong presence in the highly
profitable US market, its high percentage of sales generated
from blockbuster drugs, restructuring activities and its lack of
diversification into non-pharmaceutical healthcare areas.
AstraZeneca generated 75% of 2010 group sales from its nine
blockbuster drugs (each with annual sales of above USD1bn),
which is the highest percentage of group sales generated by
blockbuster drugs among its large European peers. This has a
positive impact on profitability but also means a relatively
high product concentration.Negative rating factors include the looming patent
expiration and shareholder friendly policy. 11% of AstraZeneca’s
2010 sales are at risk from US patent expiration over the next
three years. By 2014, the substance patents of major products -
the US substance patents of Nexium for ulcers and the European
and the US substance patents for the antipsychotic medication
Seroquel IR - are expiring.These expiries put pressure on AstraZeneca’s research and
development pipeline and might tempt the company to pursue more
acquisitions. Buybacks amounted to USD2.1bn in 2010 and might
reach USD5bn in 2011 - up from the USD4bn AstraZeneca had
previously targeted - as the sale proceeds for the sale of
AstraTech for USD1.8bn in cash will be returned to shareholders
in 2011 and 2012.AstraZeneca benefits from strong debt protection measures.
Lease-adjusted net debt/EBITDAR amounted to negative 0.2x at
financial year-end 2010, while EBITDA/net fixed charges stood at
27.0x.In H111, CER sales growth was down by 3%, but unchanged in
reported terms. It was negatively impacted by US generic
competition for Arimidex and Toprol-XL and for Nexium and
Arimidex in Europe and by government cost containment policies,
which could not be compensated for by the 11% emerging market
sales growth. For the full year the group expects sales to be
flat or to experience a low single-digit decline compared with
2010 at CER.
