How to Make the Most Money in the Stock Market

On today's "Insight & Action," Adam Johnson looks at how to make the most amount of money in the stock market on Bloomberg Television's "Street Smart."

Barclays, Next lift FTSE for fifth straight day

 

The U.K.'s benchmark stock index inched higher on Wednesday for a fifth straight day of gains, as well-received earnings updates from Barclays PLC (BCS.NaE) and Next PLC (NXGPF.NaE) stoked momentum.

The FTSE 100 index rose 2.97 points, or 0.04%, to end at 6,777.70, marking the highest closing level since May.

Barclays (BCS.NaE) rose 0.9% after a well-received earnings report. The bank posted a decline in underlying third-quarter profit, but Chief Executive Antony Jenkins said the firm has made good progress on the restructuring program and has moved faster than expected in getting rid of loan portfolios earmarked for sale. Investec Securities analyst Ian Gordon kept a buy rating on the bank and said in a note that Barclays (BCS.NaE) remains their preferred U.K. domestic bank.

Next rallied 4.7% after the clothing retailer raised its full-year profit guidance as it reported a 4.3% rise in third-quarter brand sales.

Petrofac Ltd (POFCF.NaE) added 0.7% after the gas and oil-services provider was awarded a $650-million project in Algeria with Italian lump-sum contractor Bonatti.

BP PLC (BP.NaE) gained 0.9% after Soci?t? G?n?rale lifted the oil major to buy from hold. The company on Tuesday posted its biggest percentage gain since January 2011, after saying it would sell $10 billion in assets by the end of 2015 and use the proceeds for 'additional distributions to shareholders.'

On a more downbeat note in London, shares of Standard Life PLC (SLFPF.NaE) dropped 4% after reporting quarterly inflows and assets under administration slightly below expectations.

Pearson PLC (PSO.NaE) shares lost 3.6% after the publisher warned that full-year operating profit is expected to be lower than in 2012 due to the accounting impact of the Penguin Random House transaction and weak market conditions for college textbooks in North American Education.

Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/details.page?resId=201310300814MRKTWTCHNEWS_SVC_138C7F56-4150-11E3-8D5D-00212803FAD6&requestId=1&showChain=true&FullArticle=true

Asia stocks mostly lower after Fed statement

Asian markets were mostly lower Thursday as disappointing earnings combined with steady Federal Reserve policy to bring the region down.

The Fed met expectations by leaving its stimulus program unchanged at its policy meeting, though it did surprise with its upbeat assessment of the economy. This raised fears that a change in policy could come sooner than expected, weighing on regional sentiment.

Some investors were looking for the central bank to downgrade its economic outlook after the government shutdown and budget impasse earlier this month.

In fact, the government shutdown was a major focus for global markets in the first half of October. Asian stocks proved resilient through the drama, and most markets in the region look set to post respectable gains for the month.

The Philippines' PSE Composite is up 6.4% for the month, while Australia recorded a 4% gain. China has been a laggard in October, as a rise in local interbank lending rates resulted in the Shanghai Composite giving back some of its gains from earlier in the month and was 1.5% lower for the month.

On Thursday, the Nikkei Average was one of the region's worst performers, with the index down 1.2%, as a series of disappointing earnings results helped bring down the market.

Honda Motor Co. (HMC.NaE) fell 1.3% after it announced net profit for the quarter ended September, which came in below expectations. Battery-maker GS Yuasa Corp. (GYUAF.NaE) sank 6.1% after posting a first-half operating profit that was below guidance.

In Tokyo, ANA Holdings (ALNPF.NaE) declined 4.7% after the airline lowered its 2013 fiscal-year net profit forecast by 65% on higher fuel costs and slow service expansion because of delays in Boeing 787 Dreamliner deliveries.

Investors were also reacting negatively to earnings from Chinese firms in the financial sector. Hong Kong's Hang Seng Index fell 0.4%, and the Shanghai Composite lost 0.9% on the mainland.

Lenders in China were in focus after several of the country's largest banks reported their third-quarter earnings, with profit growth continuing to decline as the sector faced a maturing economy and interest-rate pressure.

Bank stocks fell in Hong Kong after a sharp increase during the previous session. Bank of Communications (BKFCF.NaE) dropped 1.1%, while Agricultural Bank of China (ACGBF.NaE) managed a 1.1% gain.

China Minsheng Banking Corp. (CGMBF.NaE) , a stock that came under pressure during China's liquidity crisis in the summer, fell 2.4% in Hong Kong. The country's eighth-largest lender reported its interest income rose by just 3%.

Chinese brokerages posted strong profit growth for the nine months that ended in September, as the industry benefited from increased trading volumes and higher investment returns. The market didn't welcome the news: Citic Securities (CIIHF.NaE) was down 2.1% in Shanghai, and Haitong Securities was 1.3% lower.

Australia's S&P/ASX 200 rose 0.2%, and South Korea's Kospi dropped 1.4%.

National Australia Bank (NAUBF.NaE) fell 2.5% in Sydney after the lender posted full-year earnings in line with market forecasts, though costs were ahead of expectations.

Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201310302219MRKTWTCHNEWS_SVC_8C15BF6C-41CF-11E3-B0DB-00212803FAD6&requestId=1&showChain=true&FullArticle=true

Stock futures point lower; claims, PMI ahead

 U.S. stock futures pointed to a lower open on Wall Street on Thursday, set to extend losses sparked by a less-dovish-than-expected statement from the Federal Reserve a day earlier.

Investors also will eye earnings from Exxon Mobil Corp. (XOM.NaE) and ConocoPhillips (COP.NaE) as well as latest report on jobless claims and Chicago PMI.

Futures for the Dow Jones Industrial Average dropped 28 points, or 0.2%, to 15,525, while those for the S&P 500 index fell 4.90 points, or 0.3%, to 1,755.70. Futures for the Nasdaq 100 index gave up 15.25 points, 0.5%, to 3,377.00.

The losses built on weakness seen on Wednesday, when U.S. stocks retreated from record levels as investors assessed the Fed's statement after its two-day policy meeting. As expected, the central bank made no changes to interest rates or asset-purchases program, but the accompanying statement left some Fed observers worried the tapering process could come sooner than expected. The bank was not as uncertain on the economy -- thus more dovish on monetary policy -- as some had expected, given the recent string of weak data and the government shutdown earlier in the month.

The Wall Street Journal's Jon Hilsenrath, an influential Fed watcher, suggested that the Fed 'isn't taking a December adjustment to the bond-buying program off the table.' Ahead of the meeting this week, several analysts saw March tapering as more likely.

Analysts at Deutsche Bank said in a note on Thursday that 'the market had perhaps hit a near-term complacency peak on the timing of the taper and maybe yesterday's statement should be a reminder that the Fed probably does want to taper soon even if it might actually struggle to do so in reality. Sounds like a recipe for a bit of volatility in a generally high-liquidity environment.'

Data out on Thursday will give further hints to the health of the economy. At 8:30 a.m. Eastern Time, data are expected to show that jobless claims fell to 335,000 in the week ended Oct. 26 from 350,000 in the prior week, according to economists polled by MarketWatch.

But lately the report has not been very reliable as an indicator of labor-market trends, partly due to processing delays in California and private-sector layoffs related to the government shutdown.

There is also Chicago PMI data for October out at 9:45 a.m., expected to show a drop to 54.5 from 55.7 in September.

On the earnings calendar, Exxon Mobil (XOM.NaE) , ConocoPhillips (COP.NaE) and American International Group Inc. (AIG.NaE) were among the highlights.

For Exxon, analysts polled by FactSet expect third-quarter earnings of $1.77 a share. The company's board on Wednesday declared a fourth-quarter dividend of 63 cents a share, unchanged from the third quarter.

ConocoPhillips (COP.NaE) is likely to post third-quarter earnings of $1.46 a share.

After the closing bell, AIG is projected to report third-quarter earnings of 96 cents a share. Analysts at Keefe, Bruyette & Woods recently said insurers like AIG are likely to post strong underwriting results in the third quarter due to mostly favorable global weather.

Among notable movers ahead of the open, shares of Facebook Inc. (FB.NaE) climbed 3.5% after the social-media firm late Wednesday said it earned 25 cents a share on an adjusted basis in the third quarter, beating the average consensus of 19 cents a share.

Expedia Inc. (EXPE.NaE) soared 19% premarket after late Wednesday reporting an 8% rise in adjusted earnings per share to $1.43, above Wall Street's forecast of $1.36 share.

Starbucks Corp. (SBUX.NaE) slipped 1.7% in premarket trade, even as the company on Wednesday said its fourth-quarter profit came in at 63 cents a share, beating the consensus estimate of 60 cents a share.

In other financial markets, both Asian and European markets were mostly higher, while the dollar rose. Metals dropped across the board, while oil prices inched higher.


Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201310310644MRKTWTCHNEWS_SVC_05E5B484-420F-11E3-8D5D-00212803FAD6&requestId=1&showChain=true&FullArticle=true

European stocks fall after Fed update

European stock markets declined on Thursday, as investors digested the latest statement from the U.S. Federal Reserve, which some analysts found less dovish than expected.

The Stoxx Europe 600 index dropped 0.1% to 320.36, trimming its monthly gain to 3.2%.

Shares of Alcatel-Lucent SA jumped 15% after the telecom-equipment maker posted a narrower loss in the third quarter, helped by a rise in revenue.

Novo Nordisk AS slid 4.1% after the insulin maker reported third-quarter earnings slightly below expectations, and made downgrades to its guidance for sales and operating profit.

Shares of Technip SA (TNHPF.NaE) slumped 7% after the oil-services group amended its full-year revenue targets to reflect lower expectations for revenue from subsea activities, while revenue from onshore and offshore businesses is forecast to rise at a faster pace.

More broadly, investors looked to the U.S., where the Federal Reserve concluded a two-day meeting on Wednesday by making no changes to its interest rates or quantitative-easing program. The statement out after the meeting showed few changes from the September statement, but market participants had expected the Fed to be more bearish on the economy, and thus more dovish on monetary policy, given recent weak data.

'A run of weak economic data and the fallout from the U.S. shutdown had markets cemented to the view that tapering wouldn't begin until March next year at the earliest,' said Jonathan Sudaria, dealer at London Capital Group, in a note.

'The lack of symmetry between how the Fed sees the economy and how markets have interpreted the data has traders concerned that they've pushed out the timeline for tapering too far. With the foundations of the recent rally built on the idea that tapering was continually being kicked further and further down the road, bulls could be in for a rude awakening,' he added.

U.S. stock futures pointed to a lower open on Wall Street. Asia markets closed mostly lower.

In Europe, the U.K.'s FTSE 100 index was on track to break a five-day winning streak, down 0.4% at 6,751.60.

France's CAC 40 index dropped 0.2% to 4,263.23, while Germany's DAX 30 index fell 0.2% to 8,994.03.

Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201310310509MRKTWTCHNEWS_SVC_72A3A840-4207-11E3-8D5D-00212803FAD6&requestId=1&showChain=true&FullArticle=true

Car makers weigh on Europe stocks after downgrade

After a string of three weekly gains, European stock markets pulled lower on Monday, with car makers posting some of the biggest losses after a broker downgrade.

The Stoxx Europe 600 index dropped 0.3% to 319.11, adding to a small loss on Friday. The benchmark, however, closed out last week 0.5% higher, for the largest three-week gain since Sept. 20.

Auto makers were among top decliners after J.P. Morgan Cazenove cut the sector to neutral from overweight and instead moved funds to utilities, raising them to neutral from underweight.

'Autos are the best performing sector year-to-date in Europe, up 31%, more than double the performance of the overall market,' Mislav Matejka, its chief European equity strategist, wrote in a note. He cautioned that the sector could be vulnerable to some profit-taking in the near term.

'We think that their earnings momentum could be stalling in the near term as PMIs have stopped moving higher,' he added.

Shares of Peugeot SA (PEUGF.NaE) skidded 6.8% and Renault SA (RNSDF.NaE) fell 3.8% in Paris, Fiat SpA (FIADF.NaE) dropped 4.1% in Milan and BMW AG and Daimler AG (DDAIF.NaE) both lost more than 1.5% in Frankfurt.

More broadly, investors were waiting for more signals from the U.S. about when the Federal Reserve could begin tapering its monthly bond purchases before placing any bigger positions.

A U.S. gauge of consumer sentiment fell to the lowest reading in almost a year on Friday, adding to hopes that the Federal Reserve will delay the tapering process until 2014. The Federal Open Market Committee meets on Tuesday and Wednesday this week, and most analysts expect no changes to interest rates or the quantitative-easing program.

U.S. stock futures pointed to a mixed open on Wall Street . Most Asian markets closed higher.

Among country-specific indexes in Europe, the U.K.'s FTSE 100 index fell 0.2% to 6,710.92, while Germany's DAX 30 index gave up 0.2% to 8,969.28. France's CAC 40 index dropped 0.8% to 4,240.36.

Shares of Gemalto NV (GTOFF.NaE) lost 2.2% after Credit Suisse cut the digital-security firm to neutral from outperform and lowed revenue estimates.

On a more upbeat note, shares of TNT Express NV (TNTEF.NaE) climbed 4.1% after the Dutch parcel-delivery firm said it will take further steps to improve its business as market conditions remain challenging.

Shares of Assa Abloy AB (ASAZF.NaE) rose 4.2% after the Swedish lockmaker reported a 5% rise in third-quarter sales.

Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201310280513MRKTWTCHNEWS_SVC_98B11602-3FAB-11E3-A418-00212803FAD6&requestId=1&showChain=true&FullArticle=true

 



Asia stocks higher after recent declines

Asian stocks moved higher on Monday, with Australia hitting a fresh-five year high, as shares bounced back from recent falls.

Regional markets started the week in recovery mode, following a series of declines last week that hit Japan and China especially hard. A pickup in interbank lending rates in China spooked investors and yanked the Shanghai Composite down 2.8% last week, while a strong yen helped the Nikkei Average sink 3.3% over the same period.

A positive lead from Wall Street, where the S&P 500 hit a record high on Friday, and the absence of fresh negative catalysts allowed Asian stocks to bounce back.

The coming week promises to be a busy period in terms of earnings news for the region, while the U.S. Federal Reserve's policy meeting later on in the week will be a focus as investors look for clues on the central bank's stimulus plans.

Looking ahead to November, markets are anticipating an important Communist Party meeting in China, where there are expectations that the country's new government will unveil economic reforms.

Early in Asia, the yen weakened slightly, with the dollar trading at ?97.60, compared with ?97.40 late Friday in New York.

The softer yen allowed the Nikkei Average to climb 1.7%, coming back from a hefty fall on Friday.

Australia's S&P/ASX 200 rose 1%, and South Korea's Kospi was up 0.3%.

China was mixed, with Hong Kong's Hang Seng Index up 0.5%, and the Shanghai Composite 0.3% lower.

China Construction Bank rose 0.9% in Hong Kong after China's second-largest bank by profits posted third-quarter net profit that came out slightly below market expectations.

China Life Insurance Co. (LFC.NaE) rose 2.2% after China's largest life insurer by premiums reported that it had made a 7.5 billion yuan ($1.2 billion) profit in the third quarter, reversing a 2.2 billion yuan loss in the same period last year.

Also in Hong Kong, Chong Hing Bank sank 7.5% after Chinese conglomerate Yuexiu Enterprises said on Friday it will acquire a majority stake in the Hong Kong lender for $1.5 billion -- the first local-bank sale in several years.

In Tokyo, telecoms firm KDDI Corp. (KDDIF.NaE) rose 2.2% after a Nikkei report said that the firm will likely report a record first-half group operating profit, with a 50% on-year increase. TDK Corp. (TTDKF.NaE) , however, dropped 0.5% after a separate Nikkei report said that the electronics-component producer will report an 8% increase in operating profit over the same period.

Also in Japan, Mizuho Financial Group (MFG.NaE) rose 1.5%, after weekend media reports said that its Mizuho Bank unit will reprimand 54 current and former staff for failing to take responsibility for loans to borrowers associated with organized crime.

Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201310272313MRKTWTCHNEWS_SVC_138BFEF8-3F7C-11E3-8796-00212803FAD6&requestId=1&showChain=true&FullArticle=true

Stock futures edge higher, Apple to highlight earnings

U.S. stock index futures edged higher on Monday, indicating that the rally that took major indexes to record highs would continue with the latest earnings, including Apple's much-anticipated results.

The largest U.S. company by market cap, Apple Inc will report after the market closes. Investors want to see the amount of sales of the company's low-cost iPhone.

The S&P 500 has hit a series of record highs over the past two weeks, including Friday. However, further gains may be harder to come by given the market's rapid advance this year.

The gains have largely come from expectations that the U.S. Federal Reserve would not slow its stimulus policies for several months. The Fed's policy-making committee will meet Tuesday and Wednesday and, according to analysts, is extremely unlikely to alter its policies.

'In the short-term we're overbought and due for a pullback, but with the Fed continuing stimulus investors are looking for a reason to sell and they can't find one,' said Adam Sarhan, chief executive of Sarhan Capital in New York.

Corporate earnings have also given investors reason to buy. While the third-quarter results have been mixed and revenues in many cases below expectations, bellwethers like Microsoft and Amazon.com rallied last week.

Noting that Apple shares are down slightly this year, Sarhan said that 'from a valuation standpoint, Apple is something of an underdog.

'The stock is trying to move back up after consolidating, and since it is such a large percentage of the Nasdaq, what's good for Apple is good for the market at large.'

S&P 500 futures rose 2.1 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 45 points and Nasdaq 100 futures rose 7.25 points.

The S&P 500 is up 23.4 percent so far this year, just shy of the 23.5 percent gain it posted in 2009. Surpassing the 2009 record would give the index its biggest annual gain in a decade.

Much of those gains have come recently, with both the Dow and S&P 500 posting their third straight week of gains last week. The Nasdaq has climbed for seven of the past eight weeks while the Russell 2000 index of small cap stocks registered its eighth week of gains last week, its longest streak since 2003.

Merck & Co reported third-quarter earnings that beat expectations, though sales of its Januvia diabetes treatment fell, raising concerns about growth prospects for its biggest product. Shares of the Dow component fell 1.3 percent to $45.95 in premarket trading.

Biogen Idec posted a rise in its third-quarter earnings.

Based on the latest Thomson Reuters data, S&P 500 earnings are expected to have risen just 3.4 percent in the third quarter, with 69 percent of companies reporting earnings above analysts' expectations. Revenue growth is seen at 2.2 percent for the quarter, with just 54.2 percent beating sales estimates, below the long-term average of 61 percent.

Investors will also look ahead to September pending home sales, due at 10 a.m. (1400 GMT), which are seen rising 0.1 percent, a rebound from the 1.6 percent decline last month.

In company news, cable television network AMC Networks Inc on Monday said it agreed to buy Chellomedia, the international content unit of Liberty Global Inc , for about $1.04 billion.

Link: https://www.fidelity.co.uk/investor/news-views/latest-news/details.page?resId=201310280713RTRSNEWSCOMBINED_BRE99R0GU_1&FullArticle=true

Earnings, China rates weigh on Asian stocks

Asian stocks fell in an earnings-heavy session Friday, handing the Nikkei Stock Average its biggest percentage loss since early August.

A selloff in shares of heavily-weighted SoftBank and Canon dominated trade in Tokyo. The Japanese yen also maintained its strength, last trading at ?97.01 to the dollar and helping to pull the Nikkei down 2.6%.

Canon fell 1.6% after it lowered its full-year net profit forecast to ?240 billion from a previous estimate of ?260 billion set in July.

Earnings also loomed over trade in Seoul, where the Kospi benchmark fell 0.6%. LG Electronics (LGEAF.NaE) dropped 3.4% after it reported a 34% decline in its third-quarter net profit.

Markets within China were focused on a sharp rise in money-market rates, which brought back memories of a liquidity crisis in June. In addition, another increase in housing prices raised concerns that Beijing could step in to cool the market.

These fears combined to make Chinese stocks some of the worst performers for the week, with both the Hang Seng Index and the Shanghai Composite falling 2.8% over the period.

Hong Kong's Hang Seng Index lost 0.6% Friday and the Shanghai Composite fell 1.5%.

Australia edged higher, however, with the S&P/ASX 200 up 0.3%.

Sydney's steady gains over the week made it one of the best performers, up 1.2% since last Friday, as the market hit a fresh five-year high. Sydney welcomed fresh signs of economic growth in China, its major trading partner. At the end of last week, Chinese growth numbers showed a pickup in the region's largest economy in the third quarter, and on Thursday, preliminary data on Chinese manufacturing reached a seven-month high.

Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201310242305MRKTWTCHNEWS_SVC_16B6C86E-3D20-11E3-8D39-00212803FAD6&FullArticle=true

Nigeria Bourse Wants More of $22 Billion Pension Market

The Nigerian Stock Exchange (NGSEINDX) is seeking to have rules on pension-fund investing relaxed to attract funds and boost Africa’s third-best performing gauge this year, Chief Executive Officer Oscar Onyema said.

Nigeria has more than 3.5 trillion naira ($22 billion) in invested retirement savings, according to the National Pension Commission, known as Pencom. Investors should be able to put that money into companies with at least three years of financial statements, less than the five required now, he said in an interview in the commercial capital, Lagos, on Oct. 23.

“Most of Pencom’s regulations are designed to protect investors, but investors are becoming more sophisticated,” Onyema said. “We are working very closely with them, the National Assembly, and other appropriate bodies to highlight areas where we believe there is a need for enhancement.”

Onyema wants reforms to boost stocks, which have led the market’s all-share index 32 percent higher this year, and bolster an economy set to expand 6.2 percent this year and 7.4 percent in 2014, according to the International Monetary Fund. Nigeria is Africa’s biggest oil producer and most populous country, with about 160 million residents.

South Africa’s pension assets were worth about 3 trillion rand ($307 billion) by the second quarter, according to Bloomberg calculations made using Reserve Bank data, while the Johannesburg Stock Exchange’s all-share index gained 15 percent this year. Ghana, which ended the state pension fund’s monopoly on retirement savings, had assets of 1.06 billion cedis ($484 million) last year, according to the country’s pensions regulator. Ghana’s Composite Index is Africa’s best performer this year, jumping 75 percent.

Bonus Shares

The exchange is targeting a market capitalization of $1 trillion by 2016 from its current $74 billion, Africa’s biggest after Johannesburg. The Nigerian gauge is still down 43 percent from a March 2008 record, tumbling after a debt crisis caused by investors borrowing to buy stocks before prices crashed.

“Unless the market depth or more quality stocks listed improves, more pension funds going into the equity market will just drive up valuations across the board, especially in blue-chip names which tend to represent core holdings of long-term focused fund managers,” Olubunmi Asaolu, an analyst at Lagos-based FBN Capital Ltd., said today in an e-mailed response to questions. The 193-member All Share Index fell 0.5 percent to 37,434.90 by the close in Lagos.

Bonus Shares

Pension funds are only able to invest in listed companies which have paid dividends or issued bonus shares for at least one year out of the five they have financial statements for, according to Pencom’s website.

“We don’t even look at dividends in our listing standards,” Onyema said. “What we look at is profitability and market capitalization.”

The commission increased the equities investment limit for pension funds to 50 percent from 25 percent in November 2012 to help boost trading. Pencom wanted to increase “investment in equities and other outlets but with due attention to returns and safety,” Ehimeme Ohioma, head of investment supervision, said on Nov. 15. Two calls to Emeka Onuoara, spokesman for Abuja-based Pencom, didn’t connect yesterday.

The stock exchange is bidding to attract investment from the growing energy industry following moves by the government to sell stakes in power production and transmission companies.

Power Cuts

“We think that, with time, they will at one point or another come to the market to help to finance their massive capital needs,” Onyema said. Nigerian President Goodluck Jonathan handed control of 14 power plants to buyers on Sept. 30 to end frequent power cuts and help boost the economy.

Many of the plants need spending on infrastructure. Transnational Corp. of Nigeria Plc, which invests in hotels, agriculture and energy, raised money for its purchase of the Ughelli power plant through a rights offer this year, part of a plan to source 15 billion naira. Transcorp’s shares rallied 89 percent this year.

Nigeria has a lone exchange-traded fund, NewGold Issuer Ltd. (GLD), and a target to list five more by the end of the year may not be attained because of the time it takes to register, Onyema said.

“We are pushing hard and trying to support them as much as possible to see if we can actually get at least one or two through the system before the end of the year,” he said.

The bourse is working to develop a ranking system on governance to improve transparency, Onyema said. The initiative, which started with 10 companies, will lead to the creation of a corporate governance index. Nigeria ranks 139th out of 174 in Transparency International’s Corruption Perceptions Index, where lower scores signal increased graft.

“Next year, if everything goes well, we’ll extend it to the entire list of companies,” Onyema said.

Link: http://www.bloomberg.com/news/2013-10-24/nigeria-bourse-wants-more-of-22-billion-pension-cash.html

The Top Ten Stocks for Friday, October 25

Bloomberg's Betty Liu, Julie Hyman and Olivia Sterns report on today's ten most important stocks including Zynga, Deckers Outdoor Corp. and Twitter. They speak on Bloomberg Television's "In The Loop."

Investing in Private Equity Opportunities

Citi Private Bank Global Head of Managed Investments David Bailin discusses investing for the ultra wealthy with Deirdre Bolton on Bloomberg Television's "Money Moves."

LinkedIn Launches New E-mail Tool for iPhone

LinkedIn Senior Vice President Deep Nishar discusses revamping the company’s mobile applications. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West."

U.K. GDP Seen Accelerating Fastest in 3 Years

Bloomberg's Anna Edwards reports on Britain's economic recovery. She speaks from inside Vauxhall, a U.K. auto manufacturer, on Bloomberg television's "The Pulse."

UK's Osborne says actively considering RBS 'bad bank': paper

British finance minister George Osborne said his ministry was actively looking at breaking up the state-backed Royal Bank of Scotland to create a 'bad bank' to house its problem loans, the Daily Telegraph newspaper reported on Friday.

Osborne, who asked investment bank Rothschild in June to examine if RBS, 81-percent owned by taxpayers, should be made to hive off its soured assets into a separate legal entity, has made sorting out the bank's future his top priority for the next two to three weeks, the paper said.

'We are looking at the case for a bad bank and if not a bad bank what is the alternative strategy that really gets on top of the problems in that bank and goes on being what I want it to be which is a bank supporting the British economy,' Osborne told the Telegraph in an interview in China.

Rothschild's review is due shortly and the paper said the government was 'understood' to be considering three options for dealing with RBS's problem assets.

These are creating a bad bank inside RBS run by an independent team; following the model used by Swiss bank UBS which created a bad bank supported by the Swiss central bank; or setting up an entirely separate taxpayer-backed bad bank.

U.S. asset manager BlackRock, hired to analyze RBS's portfolio, had identified 50-60 billion pounds ($81-97 billion) of assets to be placed into any bad bank, the Telegraph added.

The paper said the go-ahead for the break-up would be given within the next few weeks however a Treasury spokeswoman said early on Saturday no decision had been made.

'As the Chancellor has said, the government is currently examining the case for creating a bad bank of the Royal Bank of Scotland's risky assets,' she said. 'That review is ongoing, and will be published in the Autumn.'

Advocates of a break-up, including former Bank of England Governor Mervyn King and ex-finance minister Nigel Lawson, have said it would leave the bank better placed to lend and support the British economy.

The Telegraph said Osborne had said there was no chance the bank could remain in its current form.

On Friday, RBS's new chief executive, Ross McEwan, said the government review into a possible break-up was distracting executives looking to revive the bank's fortunes.

'The debate you read about in the papers - and that has taken up too much time of the management team - has been about what is now a small proportion of our activity. We are taking responsibility for resolving these debates,' McEwan said in a memo to staff.

Osborne also told the Telegraph there was no prospect of selling the government's stake in the bank, bailed out in 2008 at a cost of 45.5 billion pounds ($73.7 billion), before the next election due in 2015.

However, he said they were pushing ahead with a plan to sell shares in part-nationalized Lloyds Banking Group to private retail investors.

'We are now looking actively at a retail offer for the next tranche of Lloyds shares,' he said. 'With RBS we are not, at the moment, close to the stage of being able to sell RBS shares.

'RBS was a much more complex bank. To be fair to management past and present it was a bank that was in a lot more trouble. The clean-up job has been more difficult but we have got to make these decisions now about the future for RBS.' ($1 = 0.6178 British pounds)

Link: https://www.fidelity.co.uk/investor/news-views/latest-news/details.page?resId=201310190417RTRSNEWSCOMBINED_BRE99I025_1&FullArticle=true

European markets were mixed on corporate earnings reports

United States
The S&P 500 closed at a record high on Thursday as investors regained confidence in the market following the deal to avoid a US default. However, weak earnings reports from IBM and Goldman Sachs pulled the Dow Jones industrials slightly lower. The Dow edged down 2.18 points while the S&P and Nasdaq rallied 0.7% and 0.6% respectively.

EBay dropped after the company gave a disappointing holiday forecast on Wednesday, saying the US economic environment had deteriorated partly because of the government shutdown. Verizon Communications advanced after the company posted stronger than expected third quarter earnings and revenue. IBM slumped after reporting third quarter revenue below expectations amid a sharp decline in hardware sales. Net profit, however, topped estimates. Goldman Sachs retreated after it said its quarterly profit dropped amid weak bond-trading volumes.

Google said that its consolidated revenue increased 12% to US$14.89 billion in the third quarter, even as losses deepened at its Motorola mobile phone business. Its Internet business delivered net revenue, which excludes fees paid to partners, of US$10.8 billion in the third quarter, up 23% from US$8.76 billion in the year-ago period. Google said it earned US$2.97 billion, or US$8.75 per share in the three months ended September 30, compared to US$2.18 billion, or US$6.53 per share, last year.

The number of Americans filing new claims for unemployment benefits dropped from a six-month high last week but remained elevated as California continued to deal with a backlog related to computer problems. The Philadelphia Federal Reserve's October index of manufacturing activity slipped to 19.8 from September's 22.3.

Gold at the afternoon London fixing jumped US$45.75 to US$1,319.25. Copper futures were down 0.5% to US$3.29. WTI spot crude was down US$1.69 to US$100.60. Dated Brent spot crude was down US$1.65 to US$108.94. The US dollar was down against all of its major counterparts including the yen, euro, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index dropped 1.1%. The yield on US Treasury 30 year bond was down 7 basis points to 3.66% while the yield on the 10 year note dropped 8 basis points to 2.59%.

Europe
Stock markets were mixed Thursday as they steadied after the recent sharp rally and as investors shifted their focus to corporate news following a deal in Washington to avert a US debt default. The markets rallied in late trading Wednesday on investor optimism that a deal would be reached. Profit taking set in Thursday though after European markets traded near 5 year highs. Investor sentiment was also affected by some mixed earnings reports from both Europe and the US. The FTSE edged up 0.1% and the SMI was 0.6% higher. The CAC and DAX were down 0.1% and 0.4% respectively.

Metro climbed after the company backed its adjusted EBIT outlook for the short financial year from January through September despite reporting lower sales of €15.5 billion in the third quarter. Carrefour increased after the retailer reported higher sales for the third quarter, helped by strong performance by its French hypermarkets. British Sky Broadcasting climbed after its first quarter revenues increased. SABMiller gained after it reported results for the first half of the year. Polymetal International surged after it announced a 30% increase in gold production for the quarter. However, Sulzer tumbled after the machinery manufacturer announced job cuts after lowering its financial target for the full year. Nestle advanced after it said it expects to deliver nearly 5% organic growth for the full year, along with a rise in margins and underlying earnings per share in constant currencies amid an improvement in its capital efficiency. Royal KPN dropped after America Movil SAB de CV announced that it will not make a takeover offer for the company.

UK retail sales increased a more than expected 0.6% in September as rising employment boosted consumer morale.

Asia Pacific
Stocks here were mixed in the aftermath of a short term agreement that reopened the US government and raised the debt ceiling. The Nikkei was up 0.8%, extending gains for the seventh straight session on relief over the last minute deal. Exporters benefited from a weaker yen, which traded at a three week low against the US dollar and the euro early in the session. Advantest, Honda Motor, Nikon and Fanuc advanced as did Fast Retailing, KDDI, Mitsubishi UFJ Financial Group and Nomura Holdings. Kansai Electric Power jumped after the utility swung to a first half consolidated net profit of ¥15 billion, beating its forecast of a¥ 32 billion loss. Sharp retreated on a brokerage downgrade and Tokyo Electron declined.

The Shanghai Composite slipped 0.2%, extending losses for a third consecutive session, as investors exhibited caution ahead of reports on GDP, factory output and retail sales that are expected Friday. The Hang Seng index dropped 0.6%. The S&P/ASX gained 0.4% and the All Ordinaries was 0.3% higher. Banks advanced while miners retreated. The Kospi gained 0.3% as overseas investors extended their record-breaking buying spree for the 35th straight session.

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.

Looking forward* China releases September industrial production and retail sales along with third quarter gross domestic product. Canada posts September consumer prices.

Link: https://www.fidelity.co.uk/investor/news-views/daily-market-review/details.page?whereParameter=global_market_update/18-10-13

Nigeria Plans More Bond Sales in 2014 First Quarter

Nigerian Finance Minister Ngozi Okonjo-Iweala talks about the country's plans to raise $100 million by selling so-called diaspora bonds targeted at citizens living overseas in the first quarter of 2014.

Zenith Bank Rises to 4-Month High on Valuation: Lagos Mover

Zenith Bank Plc (ZENITHBA), Nigeria’s third-largest lender, rose to the highest level in four months as its valuation made it more attractive to investors, according to Renaissance Capital.

The lender gained 2 percent to 22.06 naira in Lagos, the commercial capital, the highest since June 12. About 110 million shares traded, or 5.7 times the three-month daily average.

The stock is trading at a price-to-book value of 1.5 times, according to data compiled by Bloomberg. That is “cheap compared to its peers in the Nigerian banking industry and emerging market banks,” Adesoji Solanke, a Lagos-based banking analyst at Renaissance Capital, said by phone. “We rate the stock a buy, at a target of 25.30 naira.”

Nigeria’s largest lender, Guaranty Trust Bank Plc (GUARANTY), has a price-to-book value of 2.7 times. Zenith looks attractive even as Renaissance Capital reduced its full-year 2013 estimated profit by 7 percent to 91 billion naira ($569 million), Solanke said.

Zenith Bank said on Aug. 15 first-half net income was little changed at 45.4 billion naira, compared with 42.4 billion naira a year earlier, as the central bank ordered a reduction in fees changed by lenders. Revenue rose 13 percent to 171 billion naira.

The Central Bank of Nigeria told banks in sub-Saharan Africa’s second-biggest economy to lower fees and commissions starting April 1 to minimize conflict with clients. The cash reserve requirement for federal, state and local government deposits was raised to 50 percent from 12 percent, the regulator said July 23.

Bigger banks like Zenith are more likely to withstand tight market conditions owing to the size of the balance sheet, Renaissance Capital said yesterday.

Zenith Bank’s shares have risen 13 percent this year compared with a 20 percent increase for the Nigerian SE Banking Index, which tracks the 10 largest banks in Africa’s biggest oil producer.

Link: http://www.bloomberg.com/news/2013-10-18/zenith-bank-rises-to-4-month-high-on-valuation-lagos-mover.html

The Top Ten Stocks for Oct. 18

Bloomberg’s Trish Regan, Adam Johnson and Julie Hyman report on today’s ten most important stocks including Lowe's, Chipotle and Google.

A Look at Intel Capital's Investment Strategy

Intel Capital President Arvind Sodhani discusses his investment ideas with Cory Johnson on Bloomberg Television's "Bloomberg West."

What to Expect From the September Jobs Report

Bloomberg’s Joe Brusuelas previews what investors should watch for next week on Bloomberg Television’s “Bottom Line.”

Hate Your Commute? Just Try China's Oldest Subway

Bloomberg Televisions takes a look at the morning commute on the Beijing subway: Despite $5 trillion worth of infrastructure investment, ghost cities, and overbuilding, there is still room for the country to turn on the stimulus spigot to avoid a slowdown.

Can This Underdog Crack Google's Search Monopoly?

First there were the Googles and Yahoos of the world, and now, there's Blippex. Based in Berlin, the new search engine ranks results by time people spend on a page -- and it doesn't collect personal information. Bloomberg Television spoke to the Blippex founder.

Diageo to Centrica Target Angola Oil Wealth in Trade Push

Centrica Plc (CNA) and world’s biggest distiller Diageo Plc are among British companies that may start operations in Angola as it seeks to rebuild and ease its dependence on oil, according to a U.K. trade mission.

The U.K.’s biggest-ever business delegation to Angola visited the southwest African country, the U.K.’s third-largest export market in sub-Saharan Africa, from Oct. 7 to 10. The two countries signed an agreement in June to improve trade as Angola, which produces the most crude in Africa after Nigeria, seeks to diversify away from oil.

“If you said two years ago to British businesses ‘come to Angola,’ we might have had five” companies, mission leader Jonathan Marlandsaid in an Oct. 8 interview in Luanda, the capital. “Now we had a waiting list and really good support.”

Angola, which produced 1.74 million barrels of oil a day in September and relies on crude for 97 percent of its exports, is rebuilding after a 27-year civil war that ended in 2002. About 15 British educational institutions are due to visit next month while a group of U.K. agricultural companies are scheduled to arrive early next year, Jonathan Alms, an adviser to U.K. Trade & Investment, said in an interview.

Blue Label
Diageo (DGE), which has plans to set up a distribution company in Angola, served its Johnnie Walker whiskey to about 200 government and business leaders at the U.K. Ambassador’s residence on Oct. 8. British Airways Plc (IAG) advertised its twice-weekly Luanda-London flights at the event while Jaguar and Landrover, luxury cars made in Britain by India’s Tata Motors Ltd. (TTMT), were on display.

Wealth derived from Angola’s oil industry has helped propel sales of Diageo’s premium brands such as Johnnie Walker Blue Label and Ciroc vodka, James Crampton, a company spokesman based in London, said in an e-mailed response to questions.

“Angola is one of the largest and most attractive total beverage alcohol markets in Africa,” Crampton said. “We are expanding coverage in partnership with our local distributors and exploring options for the local production of mainstream brands.”

Diageo employs about 5,300 people in Africa and brews Guinness in more than 20 countries on the continent, according to the London-based company’s website.

British Gas-owner Centrica may consider the construction of natural gas lines to different regions of the country from offshore production as Angola plans to increase its electricity generation fivefold by 2025.

Growing Interest
Oil and gas producer BP Plc (BP/), the largest British investor in Angola to date, plans to spend $15 billion in the country over the next decade on projects such as the PSVM oil field and the country’s first liquid natural gas plant, Robert Wine, a London-based spokesman for the company, said by e-mail.

“Non-oil investment by U.K companies in Angola is very small, but interest is growing,” John Woodruffe, head of Trade & Investment at the British embassy in Luanda, said in an interview. The exact amount of British investment excluding petroleum is difficult to determine because not all companies register their operations with the embassy, he said.

Helicopter manufacturer AgustaWestland Inc., owned by Rome-based Finmeccanica Spa (FNC), Travelex Worldwide Money Ltd. and chemicals trader Gapuma U.K. Ltd. were part of the 18-company trade mission.

Corruption Index
Investors in Angola must contend with regulations that state their local operations should be worth at least $1 million, according to the foreign investment agency Angolan National Private Investment. Angola also has a visa process that can take months to navigate while the country ranks 157th out of 176 countries on Transparency International’s 2012 Corruption Perceptions Index.

“It’s a slow burn,” Marland said. Companies must be “prepared to put in the time, build relationships, don’t think you’re going to do something overnight, invest in the transfer of skills and make a commitment.”

Link: http://www.bloomberg.com/news/2013-10-10/diageo-to-centrica-target-angola-oil-wealth-in-u-k-trade-push.html

Market Review

Stocks rallied on hopes that a resolution to the US budget and debt ceiling crises is within sight.

United States
After turning in a lackluster performance in the previous session, stocks moved sharply higher over the course of the trading day on Thursday. The markets benefited from optimism about an end to the budget deadlock in Washington. US stock indices rallied the most since January. Stocks surged as House Republican leaders proposed a short term increase in the debt ceiling that would reduce the prospects for a US default. The plan would push the lapse of US borrowing authority to November 22 from October 17 but would not end the 10-day old partial shutdown of the federal government. According to Jay Carney, the White House press secretary, President Barack Obama would support a short increase in the US debt limit with no “partisan strings attached,” though he prefers a longer extension. The Dow Jones industrials and S&P jumped 2.2% while the Nasdaq was 2.3% higher.

Boeing gained. Nike advanced after the company said yesterday that annual sales will rise to US$36 billion by the end of fiscal 2017. Financial shares including Wells Fargo, JPMorgan, MetLife and Prudential Financial increased. Netflix increased, snapping a three day slide. While Netflix fell 12% this week through yesterday, the stock has more than tripled since the start of the year. Time Warner Cable jumped after the cable company and Univision Communications agreed to extend their partnership and deliver more Univision content to Time Warner subscribers.

UnitedHealth Group surged after the insurer had the outlook on its credit rating raised to positive from stable by S&P on expectation that the company will improve its leading market positions and pricing flexibility. Citrix Systems declined after the technology company reported preliminary third-quarter earnings of 68 US cents to 69 US cents per share, missing analysts’ expectations.

Gold at the afternoon London fixing was down US$5.50 to US$1,298.50. Copper futures were up 0.5% to US$3.25. WTI spot crude was down US$1.31 to US$102.92. Dated Brent spot crude was up US$2.80 to US$111.86. The US dollar was up against the yen and Swiss franc. It was virtually unchanged against the euro and Canadian dollar. However, it declined against the pound and the Australian dollar. The Dollar Index was up 0.1%. The yield on US Treasury 30 year bond was unchanged at 3.74% while the yield on the 10 year note was up 4 basis points to 2.69%.

Europe
Stocks rallied after declining for three consecutive sessions and finished solidly in positive territory. The positive performance was driven by optimism about a potential end to the budget deadlock in Washington. News that President Barack Obama would meet House Republicans later Thursday raised hopes that an agreement can be reached to raise the US debt ceiling and the partial government shutdown may soon end. The FTSE was up 1.5%, the CAC gained 2.2%, the DAX advanced 2.0% and the SMI was 1.2% higher on the day.

Banks including Commerzbank, Deutsche Bank, Société Générale, BNP Paribas and Crédit Agricole advanced. Auto makers including Volkswagen, BMW, Daimler, Renault and Peugeot were up on the day. Suedzucker climbed after announcing financial results. Aixtron declined after a broker downgrade. AXA advanced after a broker upgrade as did ProSiebenSat.1 Media. WH Smith surged after the retailer reported a higher annual profit and announced increased dividend as well as a share buyback program for additional £50 million.

The Bank of England kept its key interest rate at 0.5% and its bond purchase program at £375 billion. The Bank introduced forward guidance in August, linking the interest rate outlook to unemployment for the first time in its history. August industrial output in France was up 0.2% — the first increase in four months. A similar measure of output in Italy dropped 0.3% in August.

Asia Pacific
Shares were mixed after the release of the minutes from the Federal Reserve's September 17 and 18 meeting revealed officials struggled to decide whether to curtail its bond purchase program. Losses were capped amid signs of progress in Washington to end a political stalemate over the US budget and prevent a debt default.

The Nikkei was up 1.1% amid hopes of a breakthrough in the US fiscal impasse after the White House announced a series of meetings with lawmakers from both parties to discuss the crisis. The yen declined to one week lows against the US dollar after the Fed minutes showed that most members favor scaling back the Fed's stimulus program this year. Sentiment was also boosted after official data showed Japan's core machinery orders increased a seasonally adjusted 5.4% in August, beating forecasts for an increase of 2.0% following the flat reading in July. Toyota Motor gained after the company said it is slashing the base price of its 2014 Prius Plug-in by US$2,010 to US$29,990 to boost sales of electric vehicles. Panasonic slipped on reports it will exit from the plasma TV business by the end of the financial year.

The Shanghai Composite dropped 0.9% while the Hang Seng was 0.4% lower. S&P/ASX and All Ordinaries slipped 0.1%. Banks ended little changed but miners retreated. Australia's September unemployment rate fell unexpectedly to a four month low of 5.6% from 5.8% in the previous month, helped by a fall in workforce participation and some modest job creation. The economy added 9,100 jobs, less than the anticipated gain of 15,200. The Kospi slipped 0.1% after the Bank of Korea kept its benchmark interest rate unchanged at 2.50% for a fifth month but slashed its 2014 economic growth forecast.

Looking forward*
Japan posts its corporate goods price index for September. Germany and Italy post September consumer price data. Canada releases its September labour force survey. US October preliminary consumer sentiment will be released. September producer prices and retail sales along with August business inventories are postponed due to government shutdown.

Link: https://www.fidelity.co.uk/investor/news-views/daily-market-review/details.page?whereParameter=global_market_update/11-10-2013

The Top Ten Stocks for Oct. 11

Bloomberg’s Trish Regan, Adam Johnson and Matt Miller report on today’s ten most important stocks including Spirit Airlines, BlackBerry and Wells Fargo. (Source: Bloomberg)

The Top Market Moves for Oct. 11

On today's "The Roundup," Adam Johnson, Trish Regan, Matt Miller, Julie Hyman and Olivia Sterns wrap up the day’s top market stories on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Glistening City of Future Rises in Oil-Rich Desert

Masdar City in the heart of Abu Dhabi's desert is host to the world's largest experiment in environmental sustainability. Bloomberg's Rachel Crane gets a tour. New episodes of "Bloomberg Brink" air Mondays at 9:30 ET/PT on Bloomberg Television.

Grow Your Own Gas: The Magic of Nano-Fabrication

The Small Invention That Could Reshape Space Travel

BlackBerry shares up on interest from strategic buyers

Shares of BlackBerry Ltd rose 4 percent on Monday, following news of potential interest from strategic buyers in the embattled smartphone company and an analyst upgrade on the company's stock.

Shares in the company rose to $8 in morning trading on the Nasdaq, after a Reuters report late on Friday that the Waterloo, Ontario-based company is in talks with Cisco Systems, Google Inc and SAP about selling them all or parts of itself.

The potential interest from strategic buyers, along with the recent decline in BlackBerry's share price prompted Macquarie analyst Kevin Smithen to upgrade his rating on BlackBerry to 'neutral' from 'underperform.'

Smithen, in a note to clients on Monday, said he believes the recent decline in the company's share price to well below Fairfax Financial Holdings' stalking horse bid price of $9, 'has finally attracted enough interest from the global tech titans who may take a 'punt' on enterprise mobility.'

Sources also told Reuters that BlackBerry is seeking preliminary expressions of interest from other potential strategic buyers, which include Intel Corp and Asian technology companies LG and Samsung, by early this week.

It was unclear which parties will bid, if any. But the sources said potential technology buyers have been especially interested in BlackBerry's secure server network and patent portfolio, although doubts about the assets' value remain an issue.

Smithen advised clients to hold on to the stock until a deal is concluded, noting that the company's intellectual property, its secure network and its service contracts, could be of value to rivals and software companies that have so far struggled to break into enterprise mobility market.

'We believe a $6 to $9 sale price range by year end to perhaps a consortium of buyers is the most likely outcome,' he said.

Shares in BlackBerry, which closed on the Nasdaq at $7.69 on Friday, were trading at $8 at 10:30 a.m. EDT (1430 GMT) on Monday. Its Toronto-listed shares were up 4.6 percent at C$8.24.

In a separate note, Jefferies analyst Peter Misek, said he believes BlackBerry could be sold in three pieces with its new BlackBerry 10 operating system and handset business attracting interest from an Asian handset makers like ZTE or Lenovo.

Misek believes the company's BlackBerry Messenger platform could attract interest from the likes of Google or Yahoo, while its core enterprise business and network assets could get scooped up by the likes of Cisco, IBM Corp, Hewlett-Packard Co, or Oracle Corp.
Link: https://www.fidelity.co.uk/investor/news-views/latest-news/details.page?resId=201310071119RTRSNEWSCOMBINED_BRE9960DM_1&requestId=1&showChain=true&FullArticle=true

Facebook, IBM among tech decliners; Apple up 2%

Tech stocks started Monday largely in the red, with losses from Facebook Inc. (FB.NaE), IBM Corp. and Pandora Media Inc. (P.NaE), and as the broad market fell on concerns about the government shutdown.

Facebook (FB.NaE) slipped by 33 cents a share, to $50.69, after Raymond James analyst Aaron Kessler trimmed his rating on the social-networker's stock to outperform from strong buy. In a research note, Kessler said he made the move largely on valuation matters. Kessler also raised his price target on Facebook's (FB.NaE) stock to $56 a share from $38.

IBM (IBM.NaE) was off by almost 1%, at $182.69 a share. Ben Reitzes of Barclays cut his rating on IBM's (IBM.NaE) stock to equal-weight from overweight, saying in a research note that IBM (IBM.NaE) could see some of its business affected by threats from cloud computing and software as a service, also called SaaS.

Among other leading tech stocks, Pandora was off by 2.5%, at $26.82, Hewlett-Packard Co. (HPQ.NaE) shares gave up 1.5%, to trade at $20.93, Amazon.com Inc. (AMZN.NaE) shed 1.3%, to slip to $314.76, and Microsoft Corp. (MSFT.NaE) was trimmed by almost 1%, to $33.56 a share.

The Nasdaq Composite Index managed to erase most of its early losses, but was still down by 11 points at 3,796. The S&P 500 was off 0.4% on growing concern that the ongoing government shutdown, which entered a second week, would begin to have more of an impact on investor sentiment as the next round of quarterly earnings reports approaches.

Gains came from Apple Inc. (AAPL.NaE) , which rose almost 2% to $491.71. Jefferies analyst Peter Misek raised his rating on Apple (AAPL.NaE) to buy from hold, and lifted his price target on the stock to $600 a share from $425. In a research note, Misek said that he made the moves following a trip to Asia where he met with several Apple (AAPL.NaE) suppliers.

BlackBerry Inc. rose almost 4%, to $7.98 a share, following a report late Friday that said the smartphone company is in talks about possibly selling parts of itself to Cisco Systems Inc. (CSCO.NaE) , Google Inc. (GOOG.NaE) and SAP AG (SAP.NaE) .

Outerwall Inc. (OUTR.NaE) , which runs the line of Redbox video-rental kiosks, was up almost 5%, at $59.83 a share after activist investment fund Jana Partners disclosed it has acquired a 13.5% stake in the company.
Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/us-detail.page?resId=201310071102MRKTWTCHNEWS_SVC_A8B4090E-2F54-11E3-A2F6-00212803FAD6&requestId=1&showChain=true&FullArticle=true

Asia stocks lower on U.S. shutdown uncertainty

Japan and Australia led Asian markets lower Monday, as regional stocks and investor sentiment were hurt by continued uncertainty over the U.S. government's partial shutdown and the coming debt-ceiling debate.

The shutdown, which dominated attention last week, remained a focus for Asia. The lack of significant developments over the weekend allowed regional markets to start the session higher and follow Friday's bounce on Wall Street, which rose as investors became more positive that politicians will be able to resolve the budget impasse in the U.S.

The early gains were short-lived, however, as uncertainty remained over how long the shutdown will last. There was also caution over the upcoming debate in the U.S. over the debt ceiling. On Sunday, House Speaker John Boehner (R., Ohio) wouldn't bring up bills to fully reopen the government or increase the borrowing limit unless Democrats agree to broader talks aimed at cutting the deficit.

'Markets remain unimpressed with the lack of progress in breaking the U.S. deadlock,' said Kenichi Hirano, market adviser at Tachibana Securities.

There was also some bad news specifically for Asia, as the World Bank cut its 2013 growth forecast to 7.1% for East Asian economies due to slower growth in China and other countries in the region

Japan's Nikkei led the falls with a 1.2% drop to 13853.32, extending a hefty 5% decline last week. Although the Nikkei started the day with a 0.4% rise, it quickly pared its gains as a stronger yen weighed on the market. The U.S. dollar traded at GBP1.6596 late in Asia compared with GBP1.6597 late Friday in New York.

Japan Airlines Co. rose 3% following reports that company is preparing to announce a landmark deal with Airbus, which would break the long-held lock of Boeing Co. (BA.NaE) in the Japanese market.

Stocks in Hong Kong were also loser with the Hang Seng Index down 0.7% to 22973.95. There was no trading in Shanghai, as mainland China enjoyed the last day of its weeklong National Week public holiday.

Some markets managed to cling close to the breakeven mark, with South Korea's Kospi down 0.1% and Singapore's Strait Times Index up last less than 0.1%. The Philippines' PSE Composite added 0.8% to 6,443.21.

Australia's S&P/ASX 200 dropped .9% to 5161.10 in thin trading due to a public holiday in several Australian states.

In Singapore, shares in small companies were under pressure as three companies fell precipitously after the Singapore Exchange lifted trading suspensions on both stocks and applied stricter trading rules to them. Sterilization-services company Blumont Group was last down 82% investment firm Asiasons Capital sank 83%, and precious metals firm Liongold Corp. dived 66%.

The Singapore Exchange barred short selling and margin trading of these counters, declaring them 'designated securities' subject to stricter rules and added scrutiny.
Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/asia-detail.page?resId=201310062213MRKTWTCHNEWS_SVC_E9DD48EC-2EF4-11E3-A2F6-00212803FAD6&requestId=1&showChain=true&FullArticle=true

Europe stocks fall; luxury-goods firms hit

European stock markets pared the worst of their losses on Monday, but still ended lower as the U.S. government shutdown entered a second week with little hope for a near-term resolution.

The Stoxx Europe 600 index fell 0.2% to close at 309.18, after earlier dropping nearly 1% and touching levels last seen in early September.

The index closed out last week with an 0.7% loss.

Among decliners, LVMH Moet Hennessy Louis Vuitton SA fell 1.1%. In a report published Sunday, Reuters said analysts are growing increasingly concerned about the luxury group's brands and are worried these won't be able to provide alternative growth now that cash cow Louis Vuitton has fallen on tough times.

Shares of Burberry Group PLC (BBRYF.NaE) fell 1.2% after Chief Executive Angela Ahrendts warned in an interview with Les Echoes that the Chinese slowdown may be the new reality rather than a temporary lull.

A warning from Treasury Secretary Jacob Lew that Congress is 'playing with fire' if it doesn't increase the debt ceiling in time increased investors' anxiety about the U.S. budget stalemate and looming deadline to raise the country's debt ceiling.

'The news that U.S. politicians have again put self-interest ahead of the greater good of the country by failing to make any progress in sorting out the budget or tackling the debt ceiling will have surprised few,' said Alastair McCaig, market analyst at IG.

'The U.S. debt markets have remained calm, but the closer we get to the mid-October deadline, the less likely that is to remain the case,' he said.

One bright spot for Europe was Italy, with the FTSE MIB Italy index rising 0.7% to close at 18,425.82. Toward the close of markets on Friday, Italian stocks rallied on news a Senate panel had voted to expel former Prime Minister Silvio Berlusconi.

Banks in Italy were the biggest gainers in Europe, with UniCredit SpA (UNCFF.NaE) up 2.5% and Banca Monte dei Paschi di Siena SpA up more than 6%.

The French CAC 40 index pared a loss of around 0.7% to finish with a marginal gain at 4,165.58. Shares of European Aeronautic Defense & Space EADS NV rose more than 2% after its Airbus SAS unit won a $9.75 billion jetliner order from Japan Airlines Co. in Tokyo. Losses for LVMH weighed on the index.

The German DAX 30 index lost 0.4% to close at 8,591.58, weighed down by a 0.8% drop for Siemens AG (SI.NaE) , a 1.4% decline for Bayer AG (BAYZF.NaE) and a 1.6% fall for Deutsche Bank AG (DB.NaE) .

Shares of SAP AG (SAP.NaE) fell 2.2% after a Reuters article said the business software group was one of a number of companies talking to BlackBerry Ltd. (BBRY.NaE) about buying all or part of the struggling handset maker. SAP declined to comment to Reuters for the article.

In London, the FTSE 100 index fell 0.3% to 6,437.28, driven by a 0.7% drop for HSBC Holdings PLC (HBC.NaE) and a 1.2% fall for Vodafone PLC .
Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/europe-detail.page?resId=201310070534MRKTWTCHNEWS_SVC_58FA9908-2F1A-11E3-B4B5-00212803FAD6&requestId=1&showChain=true&FullArticle=true

U.K. stocks drop to six-week low; banks fall

The U.K.'s benchmark stock index headed for its lowest level in more than six weeks on Monday, as nervousness about the prolonged U.S. government shutdown and debt ceiling talks hammered investor sentiment globally.

The FTSE 100 index lost 0.3% to 6,437.38, on track for its weakest closing level since August 21.

Shares of Marks & Spencer Group PLC (MAKSF.NaE) posted one of the biggest losses in the index, down 2.8%, after Credit Suisse cut its general merchandise same-store second-quarter sales forecast for the retailer to negative 1.5% from 0.5%.

More broadly, banks and resource firms were among sectors on the decline, with the selling sparked by nervousness in the U.S. The government shutdown moved into its seventh day amid continued budget wrangling as law makers over the weekend failed get closer to an agreement. Republicans are trying to tie the budget discussions to a forthcoming debate on how to avoid breaking through the country's looming debt ceiling. House Speaker John Boehner said Sunday he wouldn't bring up bills to fully reopen the government or increase the country's borrowing limit unless Democrats agree to broader talks aimed at trimming the deficit.

Among banks on the decline, Lloyds Banking Group PLC (LYG.NaE) gave up 1%, HSBC Holdings PLC (HBC.NaE) dropped 0.6% and Royal Bank of Scotland Group PLC (RBS.NaE) lost 0.6%.

Oil firms moved lower, tracking oil prices. Royal Dutch Shell PLC (RDS/A.NaE) erased 0.7% and BG Group PLC (BRGXF.NaE) fell 0.3%.

Among mining firms on the decline, shares of Anglo American PLC (AAUKF.NaE) lost 0.6%, Rio Tinto PLC (RIO.NaE) fell 0.5%, BHP Billiton PLC (BBL.NaE) eased 0.4%. Most metals prices were lower.

Shares of Fresnillo PLC (FNLPF.NaE) added 1.6% after UBS lifted the miner to buy from neutral. The analysts said the recent share-price weakness could be used as a buying opportunity.
Link: https://www.fidelity.co.uk/investor/news-views/today-in-the-markets/details.page?resId=201310070931MRKTWTCHNEWS_SVC_D9C2FD1C-2F49-11E3-A2F6-00212803FAD6&requestId=1&showChain=true&FullArticle=true

`Arty' Nigerian Films Put Nollywood on World Stage

Nigerian filmmaker Obi Emelonye talks about his latest film "Last Flight to Abuja" and the evolution of Nigeria's cinema industry known as Nollywood, a play on the name of it's U.S. counterpart. "Last Flight to Abuja" was the largest grossing West African film last year taking in $350,000 with premieres in cinemas from London to Lagos. Emelonye spoke July 1 with Bloomberg's Chris Kay in London. (Source: Bloomberg)

Inside the Mind of an Activist Investor

Greg Taxin, manaing director at Clinton Group, talks with Stephanie Ruhle about the rise of activist investors and their impact on the markets, whether it is better to target large or small companies and how to different companies need different approaches. He speaks on Bloomberg Television’s “Market Makers.”

The Top Ten Stocks for Monday, October 7

Bloomberg's Betty Liu, Julie Hyman and Michael McKee report on today's ten most important stocks including Outerwall Inc., Cooper Tire and Ford motor Company. They speak on Bloomberg Television's "In The Loop."

INFRASTRUCTURAL REVOLUTION

The last colonial Governor in the Western Region prior to Nigeria’s independent in 1960 was Sir John Rankine. He was Governor between 1951 and 1959 during which time Chief Jeremiah Obafemi Awolowo was the Head of Government and the Premier of the region.

It was during that time that the Western Region, the headquarters of which is Ibadan, the capital of the present Oyo State, recorded monumental achievements in many sectors of the economy, particularly in infrastructural development which led to the establishment of monuments like the nation’s premier university, the University of Ibadan, the first stadium in Africa, the Liberty Stadium (now Obafemi Awolowo Stadium) and the first television station in Africa, now Nigeria Television Authority, both of which were established in 1959.

Besides, some of the structures put in place at that time which still dot the city of Ibadan, the political headquarters of the region till today are: the first General Hospital in Nigeria, Adeoyo General Hospital, (now Adeoyo State Hospital, Ibadan), the first Teaching Hospital in Nigeria, the University College Hospital (UCH), Ibadan, the first high-rise in Nigeria and the 25-storey Cocoa House Building, Ibadan, to mention but a few.

However, since these golden years, development seems to have been stifled while the region had retrogressed in infrastructure and other variants of development. This had been the situation until the emergence of Senator Abiola Ajimobi, the current Executive Governor of Oyo State.

In his inaugural address after being sworn-in as the 27th Governor of Oyo State at the Liberty Stadium, Ibadan on 29th May, 2011, Senator Ajimobi promised that his administration would pursue aggressive infrastructural development programmes as was witnessed during the Awolowo era. But for some doubting Thomases, this was a mere empty promise as was made by some past administrations but which remained a pipe-dream till their last days.

And taking a cursory look at the governors, both military and civilian, who had ruled Oyo State from 1951 to date, one would recall that the regime of Major-General (Rtd.) David Medaiyese Jemibewon between 1975 and 1978 that constructed two flyover bridges situated at Molete and Secretariat.

Therefore, what Oyo State had witnessed during the Jemibewon administration is now being repeated by the Ajimobi administration. Also, the asphalt tarring of the roads and the construction of bridges are as strong and durable as they were during the Awolowo era in the 1950s, while the on-going construction of public buildings are a replica of the colonial buildings at the Government Secretariat.

And true to Governor Ajimobi’s promise, a colossal sum of money had been expended on the construction, and re-construction of roads and bridges within the first two years of his administration.

During the electioneering campaign, Senator Abiola Ajimobi promised that one of the cardinal programmes of his administration, if voted into office, would be to renovate, construct and re-construct road networks across the state and to improve on the aesthetics of the state through beautification of the environment. The belief was that if all these are put in place, the state would become attractive to foreign investors, thus making it the first destination of choice for both local and foreign investors.

True to his promise, Governor Ajimobin has constructed and/or rehabilitated more than 200 roads all over the state, and they were strategically selected in order to ease transportation within the state.

Also, the state government has re-constructed some bridges which collapsed during August 26th, 2011 flood disaster. One of the reconstructed bridges which had since been inaugurated and christened Restoration Bridge is the Awolowo/Bodija/Secretariat Bridge. The expectation of government is that the bridges and the roads rehabilitated/ constructed are expected to reduce traffic congestion and enhance safety of motorists and pedestrians.

There is no gainsaying the fact that the success of any government is measured by its performance vis-à-vis provision of social infrastructure to the citizenry. And some of the few areas where Governor Ajimobi has touched the lives of the people are: construction of Flyover Bridge at Mokola, Ibadan, construction of motor garage at Temidire on Ibadan-Ife Road and Podo; construction of 110-kilometre Ibadan Circular Road, employment of 20,000 Youth under the Youth Employment Scheme of Oyo State (YES-O), payment of 13th month salary in 2011 and 2012, provision of free health services to more than 300,000 people through the free health mission programme, the purchase and distribution of 1,000 units of tricycles christened “Keke Ajumose”, purchase of “Ajumose” Buses to transport workers to and fro their offices free of charge and of course, the payment of N19,000 minimum wage to workers in the state among several others.

To enhance safe driving culture, orderliness and reduce carnage on our roads, the state government has re-designed the traffic light at Challenge Roundabout, M. K. O. Abiola Junction, Premier Hotel/Oyo Road (Oremeji) Junction; Oyo Road/Awolowo Bodija (Elewure); Parliament/ Premier Hotel Junction and Sango-Polytechnic Junction.

Government has also carried out routine maintenance of street lights and their power sources along Iwo-Road to Challenge; Monatan–Olodo; Mokola-Ojoo and Mokola-Parliament-U.I Road.

The Ajimobi administration is at present dualising two major roads in Ibadan, that is, the Ibadan Interchange-Challenge-New Garage-Interchange Road and Onireke-Jericho-Eleiyele-Dugbe Road with spurs to Aleshinloye as well as entry roads to Oyo, Ogbomoso and Iseyin. These are aside the Ijokodo to Apete and associated bridge works; Ikoyi Express Junction to Taki Palace to Ogbomoso Grammar School Roads.

Governor Ajimobi has also approved the construction of bridges and road repairs across the 33 Local Governments in the state.

History, it is said, does not repeat itself but only a similar event in history re-occurs. What the Governor Ajimobi administration is doing right now in Oyo State, through its urban renewal programme, construction and reconstruction of roads and bridges ought to have been done in 1950, that is, since the time of the Western Region going by the Daily Times Newspaper report of April 14, 1950 with its caption “Work in Ibadan £30,000 road scheme begins”.

Part of the report as reported by the newspaper at that time read: “the implementation of the 30,000 pounds road development scheme in Ibadan town, N/W, involves the demolition of many houses that came within the road limits……..” And there had been no governor since that time who did not, one way or the other, tried to instill discipline and sanity into the recalcitrant traders who erected shops by the road side but the political will to sustain the driving force had been completed lacking. But the emergence of Senator Ajimobi as the Governor of Oyo State was like a prophesy coming to pass. Fifty-four years after the then government demolished houses built within the road limits but could not sustain the demolition exercise in Ibadan, the Capital of the then Western Region, the Aare Atunluse of Ibadanland, a visionary and indefatigable leader, Senator Abiola Ajimobi has removed illegal structures, thus turning Ibadan to a modern state capital. Ajimobi could be said to have done what Napoleon Bonaparte of France could not do.

Life depends on the amount of risk a leader, a policy maker or a decision maker is ready to take. And the universal belief is that, the right thinking members of the society will always understand the policies of government but oftentimes, it is the right thinking members of the society who will not understand government decisions. For instance, if a government decides to evacuate people living near the river beds for their own safety, the right thinking members of the society should give their unalloyed support. However, the irony is that it is some of these so-called right thinking members of the society who will either pretend or exhibit undue sentiment and oppose such rational policies. But for good governance to thrive, the government in power will take decision in the overall interest of the masses who voted it into power, no matter whose ox is gored.
Link: http://thewillnigeria.com/opinion/21023.html