Cyber Monday sales soar 17% as buyers go mobile

Online spending rose 17 percent on the Monday after Thanksgiving, one of the busiest days of the year for Internet retailers, as tablets and smartphones let customers shop anytime and anywhere.

Consumers spent about $1.46 billion on so-called Cyber Monday, compared with $1.25 billion a year ago, making it the heaviest online spending day in history, research firmComScore Inc. (SCOR) said in a statement today. U.S. retail e-commerce spending reached $16.4 billion in the first 26 days of the holiday season, a 16 percent increase from the same time last year.

The convenience offered by mobile devices, especially tablets, is boosting sales for online retailers such as Amazon.com Inc. (AMZN) and EBay Inc. (EBAY)Consumers are no longer waiting for Black Friday to shop and they’re starting as early as Thursday evening, which will help Internet sales reach $43.4 billion this holiday season, or 10 percent of U.S. retail spending, excluding gas, food and cars, according to ComScore.

http://www.bloomberg.com/news/2012-11-28/online-cyber-monday-sales-soar-17-as-buyers-turn-mobile.html

China's tablet PC market grew 62.5%

China's tablet PC market grew 62.5 percent in the third quarter from the previous year, dominated by Apple Inc's iPad which snared more than two-thirds of sales, an industry report said on Wednesday.

For the quarter, 2.6 million tablet PCs were sold in China, up from 1.6 million a year ago, said technology research firm Analysys International.

Apple had 71.4 percent of the market, down a percentage point from the second quarter, ahead of Lenovo Group with 10.5 percent. Chinese firm Ereneben was third with 3.6 percent, edging out Samsung Electronics on 3.5 percent.

Tablet and smartphone sales in China have soared in recent years as prices drop and users look for cheaper gadgets to allow them access to the Internet. China has the world's largest Internet and mobile markets by number of users.

http://www.reuters.com/article/2012/11/28/us-china-tablet-market-idUSBRE8AR04K20121128

Record Online Holiday Sales Seen as Mobile Drives Growth

US Online retailers are poised for a record $43.4 billion holiday sales season as shoppers increasingly rely on social networks and mobile devices to find and buy merchandise.

Internet sales will grow 17 percent from a year earlier and make up more than 10 percent of U.S. retail spending, excluding gas, food and cars in the last two months of the year, saidAndrew Lipsman, vice president of industry analysis at ComScore Inc. (SCOR) That compares with $29.2 billion spent online during the same period in 2007, when electronic commerce made up 7.4 percent of total spending.

“People are shopping on their mobile devices between 7 p.m. and midnight -- that’s an occasion that just didn’t exist in the past, and now we’re seeing it happening in a big way,” Lipsman said.

EBay Inc. (EBAY) began offering mobile-only deals starting at 5:23 p.m. New York time on Thanksgiving -- the exact moment when it expected diners to push away from their pie plates and start scouring the Web. Four days earlier, Amazon.com Inc. (AMZN) debuted a holiday deal site promising bargains to shoppers who used the company’s mobile app or signed up for alerts on social networks such as Facebook Inc. and Twitter Inc.

http://www.bloomberg.com/news/2012-11-26/record-online-holiday-sales-seen-as-mobile-drives-growth.html

Water shares rise on hopes of agreement with Ofwat on price controls

UK Water shares have bubbled up on hopes an agreement can be reached with the industry regulator over new licence proposals.

Ofwat issued a clarification of its proposals for licence changes and changes to price controls, which analysts said struck a more conciliatory tone than before. An earlier statement from the regulator on the issue hit shares in the sector hard. Now Ofwat has said it recognises the water and sewage sector needs to remain attractive to investors, and it encouraged them to discuss the planned changes further. 

In reaction to the Ofwat statement, United Utilities is up 15p at 674p, the biggest riser in a FTSE 100 which has edged around 6 points lower.Severn Trent is 22p better at £15.69 while Pennon has put on 5p to 609p.

http://www.guardian.co.uk/business/marketforceslive/2012/nov/21/united-utilities-severn-trent-pennon-ofwat

EU economies set for weakest quarter since 2009

It seems that the eurozone economy is on course for its weakest quarter since early 2009, as business surveys showed companies battling shrinking order books in November. 

The weak Eurozone PMI outturn for November is a major disappointment in light of the increases in the German and French PMI surveys, and suggest that that the recession on the Eurozone’s periphery is gathering further pace. 

All in all, today’s PMI figures confirm that the Eurozone economy remains firmly stuck in recession. Looking ahead, we still think that ECB’s recent actions and the improvement in the global economy (as signaled by the further pickup in the Chinese PMI) will provide some respite to the Eurozone economy. But with the fiscal squeeze across the region continuing, any return to positive growth next year will likely be slow and gradual – and largely confined to the ‘core’ countries.

http://www.guardian.co.uk/business/2012/nov/22/eurozone-crisis-live-leaders-meet-eu-budget-summit

China manufacturing grows for first time in 13 months

China's manufacturing has expanded for the first time in 13 months in a further sign that the world's second largest economy is recovering from its deepest slump since the 2008 global crisis.

HSBC said on Thursday its monthly Purchasing Managers' Index improved to 50.4 for November – more than 50 indicates expansion. That was a moderate improvement from October's 49.5. It is the first time in 13 months that the reading has been above 50.

The PMI index measures overall manufacturing activity by surveying numerous indicators including orders, employment and actual production.

The Chinese numbers are rare good news for the world economy, which has slowed as Europe's chronic debt crisis worsened and the American economy stagnated.

http://www.guardian.co.uk/business/2012/nov/22/china-manufacturing-grows-again-pmi

US stock market looks cheap

Investors have seen $806 billion erased from the value of American equities since President Barack Obama was re-elected Nov. 6 in the biggest decline since May. The combination of falling stocks and rising profits as the economy recovers has left the S&P 500’s price-earnings ratio below the ending level of eight of the nine bull markets since 1962 and beneath the average of any since Ronald Reagan was in power.

Bears say the 4.8 percent drop in the S&P 500 and valuations show investors are losing confidence that Congress and Obama will reach a budget compromise that would keep the recovery from stalling. Bulls, including the top strategists at six Wall Street firms, say that the declines are another reason to buy and that stock prices from Apple Inc. (AAPL) to Dollar Tree Inc. are bound to improve as earnings increase.

“The stock market looks cheap because people are way too pessimistic about what growth looks like for the next 10 years,” said Brian Jacobsen, who helps oversee $208 billion as chief strategist at Wells Fargo Advantage Funds and predicts the S&P 500 will rise 47 percent to 2,000 in 2014. “You can get big and rapid moves in the market when expectations are so low.”

http://www.bloomberg.com/news/2012-11-18/s-p-500-in-cheapest-bull-market-since-reagan-trade-26-from-peak.html

US GDP Accelerating to 2.9%

US Gross domestic product probably increased at about a 2.9 percent annual rate in July-September, according to economists from Goldman Sachs Group Inc. and Barclays Plc. That would be the fastest quarterly growth this year, beating the Commerce Department’s initial estimate of 2 percent.

Help is coming from a housing recovery, strengthening job market and healthier household finances that are driving gains in consumer confidence and spending. While the damage from Sandy and an anticipated tightening of fiscal policy mean growth will decelerate this quarter and next, the world’s largest economy may emerge on stronger footing in the second half of 2013.

http://www.bloomberg.com/news/2012-11-19/gdp-accelerating-to-2-9-helping-u-s-overcome-sandy-budg.html

Greece continues to weigh on sentiment

Eurozone finance ministers announced that they would grant Greece a two-year extension to get its fiscal house in order, but stopped short of giving the go-ahead on the €31.5bn tranche. Eurogroup Chairman Jean-Claude Juncker boldly stated that Athens's deadline to bring debt down to 120% of gross domestic product by 2020 would be extended to 2022. 

"Although EU finance ministers agreed to give Greece two additional years until budget and deficit targets have to be met, there has no progress been made what the main sticking point is concerned which is how to raise the extra funds needed resulting from giving Greece more time," said Markus Huber, the head of German HNW trading at ETX Capital.

However International Monetary Fund (IMF) Managing Director Christine Lagarde openly showed her disapproval and said that the two organisations obviously had "different views" on the timetable that the Hellenic Republic needs to complete. 

http://www.lse.co.uk/sharecast-news-article.asp?ArticleCode=20493874&ArticleHeadline=london_open:_stocks_drop_as_greece_given_more_time

India's Industrial Output Shrinks, Trade Gap Widens

India's industrial output unexpectedly shrank in September and its trade deficit expanded to the widest in several years in October, indicating that the worst for the economy isn't over and measures including monetary easing may be needed to revive growth.

Industrial output contracted 0.4% from a year earlier in September, hurt by the poor performance of the manufacturing sector, government data showed Monday. The government also downwardly revised the output reading for August to a 2.3% expansion from 2.7% reported previously.

Monday, the government also said India's trade deficit in October widened sharply, adding to the gloom.

India's trade gap rose to $20.96 billion from $18.08 billion in September as the country's heavy dependence on imports to meet its oil needs pushed up overall imports, while weak demand in the U.S. and Europe led to a decline in exports.

http://on.wsj.com/SPcfKj

Greek concerns hammers stocks

While Greek policy-makers voted in favour of the country's harsh austerity measures on Wednesday night, sentiment has been shaken after reports suggested yesterday that the decision on whether to release the next tranche of the country's bailout won't come next week as expected.

An EU official has said that ministers will not decide on the next €31.5bn of aid until late November as they wait for a final report from the Troika on how Greece is complying with the terms of its bailout.

http://www.lse.co.uk/sharecast-news-article.asp?ArticleCode=20488364&ArticleHeadline=london_midday:_greek_concerns_hammer_stocks_again

China's economy to overtake US in next 4 years

China will overtake the US in the next four years to become the largest economy in the world, says a leading international thinktank.

The Paris-based Organisation for Economic Co-operation and Development (OECD) said China's economy will be larger than the combined economies of the eurozone countries by the end of this year, and will overtake the US by the end of 2016.

Global GDP will grow by 3% a year over the next 50 years, it says, but there will be large variations between countries and regions. By 2025, it says the combined GDP of China and India will be bigger than that of France, Germany, Italy, Japan, UK, US and Canada put together. 

http://www.guardian.co.uk/business/2012/nov/09/china-overtake-us-four-years-oecd

China Industrial Output Accelerates as Inflation Eases

China’s factory output and retail sales exceeded forecasts and inflation unexpectedly cooled to the slowest pace in 33 months, signaling the government is boosting growth without driving a rebound in prices.

Industrial production rose 9.6 percent in October from a year earlier, the National Bureau of Statistics said today in Beijing. That exceeded the 9.4 percent median estimate of analysts surveyed by Bloomberg News. Retail sales growth of 14.5 percent picked up from September’s 14.2 percent. The consumer- price index increased 1.7 percent.

Food prices rose 1.8 percent last month from a year earlier, compared with a 2.5 percent gain in September, according to the statistics bureau. Pork, a Chinese staple, dropped 15.8 percent from a year earlier, subtracting 0.6 percentage point from the CPI, compared with a 38.9 percent rise in October 2011.

Elsewhere in the Asia-Pacific region, the Reserve Bank of Australia reduced its 2013 growth forecast as lower investment and the government’s pledge to deliver a budget surplus restrain the economy. The Bank of Korea kept interest rates unchanged as projected by all economists surveyed by Bloomberg. Malaysia’s exports unexpectedly rose in the first gain in three months in September.

http://www.bloomberg.com/news/2012-11-09/china-oct-consumer-prices-rise-1-7-vs-1-9-economists-.html

Japan's economy seen contracting

Japan's current account surplus fell sharply in September, down 68.7% from a year earlier, while machinery orders also declined, the latest figures showing a weak economy that some economists say is now contracting.

http://online.wsj.com/public/page/news-japan.html

China's Hu promises economic reforms

China will reform to make its currency and interest rates more market-based, boost overseas investments and plough more state funds into industry as part of plans to keep GDP on track to double in size by 2020, President Hu Jintao said on Thursday.

Hu also restated a commitment to targets that would double household incomes nationwide in a decade, in a speech prepared for delivery at the opening of China's Communist Party Congress. Hu is due to step down as party chief during the congress.

"We should firmly maintain the strategic focus of boosting domestic demand, speed up the establishment of a long-term mechanism for increasing consumer demand, unleash the potential of individual consumption, increase investment at a proper pace, and expand the domestic market," Hu's speech said.

"We should develop a multi-level capital market, take steady steps to make interest rates and the renminbi exchange rate more market-based and promote the renminbi's convertibility under the capital account in due course," it added.

Hu's restatement of existing pledges gave no specific timeline for their delivery, nor any fresh indications of size of the spending plans or the source of funding for them.

http://reut.rs/XlPZNM

China's interest in luxury

Demand for Jaguar Land Rover (JLR) cars in China remains strong after the UK manufacturer posted a 58% increase in second-quarter sales in the world's largest car market.

China's interest in luxury British brands has been the subject of investor disquiet in recent months, with shares in retailers Mulberry and Burberry bearing the brunt, but Asian appetite for JLR products – from the Range Rover Evoque to the Jaguar XJ – appears undimmed. The Indian-owned car maker, which employs 24,000 people in the UK, said it sold 17,152 vehicles in the three months to September. Across the group, JLR sold 84,749 cars, up 29% on the same period last year as pre-tax profits doubled to £431m.

The performance of the likes of JLR and BMW, which saw the German car maker announce a 40% increase in quarterly Chinese sales this week, contrasts starkly with European mass-market producers. France's Peugeot Citroën is being rescued by the French state, while Ford has announced plans to shut three European plants, including two in the UK, and General Motors is expected to shut its Bochum site in Germany.

http://www.guardian.co.uk/business/2012/nov/07/jaguar-land-rover-china-sales-surge

UK expected to grow by just 0.9% next year

Although the UK is expected to grow by just 0.9% next year, Brussels believes it will expand more quickly than any of the major economies of the eurozone. The commission has pencilled in growth of 0.8% for Germany, 0.4% for France, a contraction of 0.5% for Italy and a retrenchment of 1.4% for Spain. In all cases the predictions are for output to be weaker than expected by national governments, leading to budget deficit reduction targets being missed.

http://www.guardian.co.uk/world/2012/nov/07/eurozone-growth-next-year-ec

Investors fear an impasse in Congress

Stock markets reacted nervously to President Barack Obama's victory Wednesday as the focus in Wall Street and Washington shifted from electoral politics to the the fight over the so-called "fiscal cliff".

All the major US markets fell before lunch with the Dow Jones Industrial Average down over 314 points (2.38%) by noon. Investors fear an impasse in Congress as politicians spar over a political solution to the expiration of Bush-era tax cuts and the automatic imposition of draconian spending cuts set to begin at the year end.

Greenhaus compared the situation to the political fight over raising the debt ceiling in 2011. While a compromise was eventually reached the fight led to an historic downgrade in US debt and triggered panic around the world.

http://www.guardian.co.uk/business/2012/nov/07/wall-street-fiscal-cliff-obama

Fiscal cliff issue

Stock futures fell about half a percent after Obama edged out Republican Mitt Romney while bond futures rose. While the result ended uncertainty about regulation and monetary policy, some remained on edge about taxes and overall economic health.

"There will be an immediate shift to government gridlock and the fiscal cliff issue, and that will be a headwind for stocks," said Michael Yoshikami, chief executive officer and founder of Destination Wealth Management in Walnut Creek, California.

With Republicans retaining control of the U.S. House of Representatives, some investors feared compromise on fiscal reform would remain hard to come by, which could keep markets under pressure.

http://www.4-traders.com/NASDAQ-OMX-GROUP-INC-10173/news/NASDAQ-OMX-Group-Inc-Projected-Obama-win-has-markets-staring-at-fiscal-cliff-15474060/?countview=0

UK retail sales triple dip recession

Britons shied away from spending on big-ticket and luxury items in October, leading to the weakest sales growth in almost a year, according to the British Retail Consortium (BRC). Meanwhile, expansion in the UK's services sector – which accounts for three-quarters of UK GDP – slowed to a crawl as new business failed to make up for projects completed during the month.

Chancellor George Osborne had seized on news last month that the economy emerged from double-dip recession, growing by 1% in the third quarter of 2012, as evidence that his policies had put Britain "on the right track". But early signs for the fourth quarter now suggest the economy could shrink again, raising the prospect of a triple-dip recession.

http://www.guardian.co.uk/business/2012/nov/06/retail-sales-triple-dip-recession

Creaking Russia

Corruption is one of the biggest problems in Russia for ordinary citizens, businessmen and foreign investors. The country has slid to 143rd place out of 182 on Transparency International's Corruption Perceptions Index, tied with Nigeria.

On the lips of many educated Muscovites today is the word "zastoy" (stagnation) - an epithet which came to define the lackluster latter years of Soviet leader Leonid Brezhnev in the 1970s and early 1980s, but is now increasingly used of Putin.

Despite years of government promises, Russia has yet to build a modern pensions saving system, improve regulation to create a viable financial market trading centre to compete with Dubai or invest in its crumbling infrastructure.

Already weighed down by the cost of hefty public sector pay rises ahead of this year's presidential election, the Russian government's latest budget envisages spending $620 billion by 2020 re-equipping the country's military, while cutting spending on infrastructure and education.

These priorities have upset business leaders, who are desperate for improvements to the creaking road network.

And despite repeated Putin's pledges to cut the economy's dependence on oil and gas exports, the oil price required by the Kremlin to make its budget sums add up has more than doubled over the pasts five years to $110.

At a time when Russian oil production is falling and large-scale investment is badly needed to open up new fields, the Kremlin is instead spending $55 billion in cash and shares to acquire control of a major oil company from the private sector.

http://reut.rs/VGlKMo

U.S. ELECTIONS NEXT FOCUS

Positive economic news could affect the outcome of the November 6 elections while easing pressure for more monetary easing, pushing up Treasury yields and lifting the dollar.

"Market impact from the U.S. jobs data may in the end be offset by the outcome of the presidential election," said Daiwa's Yamamoto.

A rise in equities in the wake of a solid jobs report may be countered if President Barack Obama wins, as his re-election will be perceived as negative for equities, while weakness in stocks due to a soft data could be recovered if Republican Mitt Romney wins, as markets see him as stock-friendly, Yamamoto said.

"Asian economic indicators are consistent with a risk-on strategy, but we remain risk selective," said Morgan Stanley in a research note.

"The outcome of the U.S. presidential election is a close call, leaving markets concerned about whether the newly elected president will have the political capability to deal with the fiscal cliff," undermining the recent economic rebound, it said.

After the U.S. election, Congress must deal with a "fiscal cliff" - up to $600 billion in expiring tax cuts and spending reductions that are set to kick in next year - which threatens to hurt the U.S. economy.

http://reut.rs/X4A6v7