My personal portfolio is a blend of cash, fine art, gold, silver, land and private equity. The Shanghai Comp has declined 1.06% into the midday break on the back of the data, although paring earlier losses of more than 4% with the move coming despite a report from the China Securities Regulatory Commission saying that it would encourage companies to increase dividends and stock buy backs in a bid to support the equity market. On this theme, yesterday DB’s Peter Hooper reiterated his September liftoff view but noted that the call is very close at this point. Newspapers use pictures and captivating headlines to draw in readers and hold their attention.
It was a similar story closer to home where the Stoxx 600 (-0.38%), DAX (-0.38%) and CAC (-0.47%) taking similar legs lower with the falls yesterday coming on the back of more weakness in Chinese equity markets and the comments from Fischer over the weekend which left investors mulling over a higher probability of a September Fed move. Peter believes that there are three key factors which will drive the outcome; fundamental economic developments and prospects (including upcoming data), financial market conditions and thirdly Fedspeak.
Looking forward, Peter notes that assumptions for a good August employment report, no significant weakness in the August CPI report and markets settling down following the equity volatility of late should help support his September call. Henceforth, all bad Chinese economic news will be reported by death row inmates to save money on subsequent show trials. A major news report is put on the front page with a big headline and a large picture.
The $1.24B company on November 10, 2015 reported financial results for the third quarter of 2015 and provided an update on progress toward delivering upon its key 2015 corporate objectives and clinical development milestones. China has been increasingly seeking deals in its own currency to challenge the US dollar’s dominance on the international market.
The $1.06B company on November 4, 2015 reported Combined Operating Income (a non-GAAP measure defined in the attached Explanation of Non-GAAP Financial Measures) of $24 million or $0.15 per diluted share for the third quarter of 2015 compared with Combined Operating Income of $120 million or $0.63 per diluted share for the third quarter of 2014. The third quarter 2015 result is more consistent with the second quarter of 2015 Operating Income, which was $19 million or $0.11 per share. However, the president’s economic forecast is that the slump will not be a lasting one.