WORLD MARKET UPDATE

Frontrunning: October 24

• US Treasury considers new debt security (FT)
• Obama to announce help on housing, student loans (Reuters)
• China on China: Double-dip recession unlikely in China (China Daily)
• Berlusconi calls crisis cabinet meeting (FT)
• Sarkozy yields on ECB crisis role, pressure on Italy (Reuters)
• France, U.K. Spar on Role of Non-Euro Nations (Bloomberg)
• Hong Kong looks to private IPOs from China (FT)
• Medicare Program for Doctor Groups Gets Looser Rules (WSJ)
• Banks must find €108bn in new capital (FT)
• Tories in EU referendum showdown (FT)
• Pressure on Italy in Eurozone struggle (FT)

Recessionay economic data out of Europe

• Eurozone PMI Composite 47.2 – lower than expected. Consensus 48.8. Previous 49.1.
• Eurozone PMI Manufacturing 47.3 – lower than expected. Consensus 48.0. Previous 48.5.
• Eurozone PMI Services 47.2 – lower than expected. Consensus 48.5. Previous 48.8.
• Eurozone Industrial New Orders n.s.a. 6.2% y/y – higher than expected. Consensus 5.8% y/y. Previous 8.4% y/y. Revised 8.9% y/y.
• Eurozone Industrial New Orders s.a. 1.9% m/m - higher than expected. Consensus 0.0% m/m. Previous -2.1% m/m.
• Germany PMI Manufacturing 48.9 – lower than expected. Consensus 50.0. Previous 50.3.
• Germany PMI Services 52.1 – higher than expected Consensus 49.9. Previous 49.7.
• France PMI Manufacturing 49.0 – higher than expected. Consensus 48.0. Previous 48.2.
• France PMI Services 46.0 – lower than expected. Consensus 50.4. Previous 51.5.

Global highlights:

• Asian stocks climb after Europe said it is making good progress on a rescue plan.
• China 'flash' manufacturing PMI at 51.1, up from 49.9 in September.
• EU considering setting up a fund to entice outside investors to buy troubled euro-area government bonds. Rules out using ECB's balance sheet.
• Japan swung to a trade surplus of $3.93B in September.
• New data expected to show U.S. economy grew faster in Q3 than had been predicted.
• "Merkozy" relationship of German, French leaders suffering as money is tough to come by.
• Oil rises above $88 in Asia amid signs of improving economies in Japan, China.
• Caterpiller's Sept. net income rises from $792M to $1.14B.
• AMR shares slump, analyst says bankruptcy likely.
• China wealth fund, Blackstone may buy RBS bad loans.
• Eaton's Sept. net income rises from $269M last year to $365M this year.
• GE Q3 profit rises 18% helped by continued rebound in lending business.
• General Dynamics bags $1.04B order to upgrade fleet of armored vehicles in Canada.
• Heico will acquire Switchcraft from ClearLight Partners; terms undisclosed.
• Kodak reportedly seeking up to $900M in financing.
• Maxim Integrated's Q1 net rises 14% to $133M. Revs up 2% at $636M.
• McClatchy Co.'s Q3 net falls 21% to $9.4M as revs fell 8% to $300M.
• McDonald's Q3 net rises 9% to $1.51B, helped by higher prices. Revs rose 14% to $7.17B.
• Nissan aims to be world No. 1 in green vehicles, sees 1.5M cumulative sales with Renault.
• Oshkosh, Navistar shares rise on talk of merger pushed by investor Carl Icahn.
• Regulators seize main subsidiary of PMI Group, which will begin paying claims at just 50%.
• Sara Lee and Bimbo get DOJ approval on bakery sale.
• Schlumberger Ltd. Q3 profit fell 25%; lowers 2012 demand outlook.
• Swift Energy completes sale of interest in 9 oil and gas fields for $53.5M.
• Taubman Centers lifts 2011 FFO outlook, reports solid Q3 results.
• Tepco to sell all uranium-mining rights.
• Verizon's Q3 net doubles to $1.38B due to pension accounting effects. Revs up 5.9%.
• VF Corp.'s Oct. net income rises from $243M last year to $301M this year.(source:http://www.zerohedge.com/news/frontrunning-october-24)