Daily Report
Except for watching gold and silver prices surge in the morning and the $USD depreciate against European currencies ahead of the FOMC decision today, December 10 was unremarkable, even for a double digit gain in the Dow 30 average.
US stocks ignored another warning from Humungous Bank & Broker (UBS this time) and priced in a near-certain Fed rate cut. The DJIA (+101.45), S&P 500 (+11.30), and Nasdaq Composite (+12.79) were lifted by the Financials.
The National Association of Realtors (NAR) Pending Home Sales index for October increased at a seasonally adjusted annual rate of +0.6 pct from 86.7 in September to 87.2. NAR is forecasting falling sales and prices into 2008 and to remain weak.
UBS (UBS) announced $10 billion in additional SIV-related write-downs as well as an $11 billion 9 pct sale of its shares, mostly to a Singapore government fund.
On the deal’s front, Reckitt Benckiser Group (RBGPF and RB.L) will acquire Adams Respiratory Therapeutics (ARXT) for $2.3bn (GBP 1.1bn) in a $60 per share cash deal. Adams had last month reported a stand-out quarter.
Canada's third largest Oil & Gas company, Petro-Canada (NYSE:PCZ TSX:PCA), signed a $7 billion deal with Libya's state-run National Oil Corp to invest in exploration in that North African country.
Rio Tinto Group (NYSE:RTP, RIO.L), the world's third-largest mining company, asked UK regulators to force BHP Billiton (BHP) to turn its $139 billion takeover proposal into a formal bid or drop the offer.
Crude Oil dropped $0.28 cents/bbl as traders are thinking demand will cool along with a slowing US economy.
Swiss drugmaker Novartis (NVS) today announced substantial job cuts. This follows similar cuts by GlaxoSmithKline and Pfizer.
Equity markets in Asia and Europe are moderately bullish in advance of the expected Fed rate cut at 2:15pm ET today.
