Preview of market action
>> and here’s a preview of market action for europe next week from paul george in london.
>> monday kicks off an important week for italy, providing the clearest indication of the corporate health of their economy as 2/3 of the companies report. Monday sees reports from banca intesa. Italian g.d.p. Is seen lagging behind neighbors in the euro zone as consumers there rein in spending. The outlooks accompanying results may reflect concern about the recovery and jobs. Banca intesa, italy’s largest bank by assets, will probably say second-quarter profit rose 8.6% as it shed more than 2,000 jobs. The c.e.o. Has reorganized the bank since taking over in 2002 by selling assets such as most of its latin american units and slashing costs. The bank is set to report Earnings on monday afternoon. Now for something brand new which we hope to be a fixture in the diary, bloomberg’s own p.m.i. Survey, it may show retail sales in the euro zone’s three largest economies fell in august. Don’t miss the first edition out sharp on monday at 0900 hours london time. We’ll also have full analysis of the reports. Germany, france and italy account for 80% for the value of retail sales across the continent. Also due out, german factory orders, expecting to have risen. Perhaps earnings already from italy, also look out for italy’s biggest comment maker and the international cement unit, ciment francois. First-half results due from air likeyed, it may report an increase of more than 14%, helped by acquisitions and increased demand for hydrogen. Some of the highlights for monday in europe.
>> speaking of the week ahead, it would be remiss if we couldn’t look at what was going on in asia. Semiconductor stocks led asian stocks lower on friday and the broad indexes fell for the week in the region, as well. Ron madison from our tokyo bureau has this report on what’s going to be moving markets in the week ahead.
>> in the new week here in the asia-pacific region, the world’s second largest economy, japan, probably grew more than the government’s initial annualized estimate of 1.7% in the second quarter. Economists surveyed by bloomberg say japanese companies likely boosted capital spending for a third straight quarter to meet rising overseas and domestic demand. The government is set to release cap-ex figures on monday and revised g.d.p. Figures on friday. The country’s central bank will probably keep monetary policy unchanged. Deflation showing little signs of letting up and economic recovery appears to be slowing. China’s industrial production growth probably slowed in august for a sixth month. Lending curbs damped expansion and power cuts limited factories’ operating outputs. And economists say thailand’s base of expansion in the economy barely picked up due to violence and rising oil prices, curbing consumer spending there. And australia’s economy may havead ated jobs in august, keeping the unemployment rate close to a 23-year low. The government’s tax cuts have increased consumer spending, fueling demand for workers. The country’s central bank will probably refrain from raising interest rates before an election in october. Inflation is within the bank’s target range now and the housing market is slowing. New zealand’s central bank will probably raise rates a fifth time to 6.25% to curb inflation. That’s what’s expected in the week ahead in the asia-pacific region.
>> a.r.m. Chair quarterbacks and wannabe general managers on alert for high-stakes fantasy football drafts. Many of them are scouring the wires looking for that best pick. We’ll have more on the high rollers with thousands of dollars at stake when we return. >> the national football league season doesn’t start officially until next thursday night when the new england patriots host the indianapolis colts in a rematch of their a.f.c. Championship game. But for some fantasy football fanatics, the fun has already begun with high-stakes fantasy league drafts throughout the states. Bloomberg news reporter mike buteau joins us from atlanta for more on the fantasy phenomenon in this week’s “money & sports” segment. Thanks for coming on. If the jets pay $64 million to re-sign chad penington, how much Would it take to draft him in the fantasy leagues?
>> well, it depends on which league you want to get in. There are several high-stakes leagues out there. The highest stakes is payday sports, entry fee of $3,600 to get into the league. There are other leagues out there where it’s $12.50, $14.50 to get in. We’re talking $1,250 to get into a fantasy league. The highest stake one has only 60 players so you increase your chances but you say this is a phenomenon, if you want to talk about phenomenons, there are 15 million people that play fantasy sports, 12 million alone play fantasy football. This sport is growing. Last year, there were only two leagues that offered prizes of $100,000. This year there’s at least seven leagues offering over $100,000.
>> seems like betting, you would think the nfl would frown upon it.
>> the commissioner says the difference between fantasy sports is you’re drafting individual players, you’re not picking individual games and individual teams so he doesn’t see a problem with it. If you’re picking a backup quarterback or running back here, they’re on different teams, chances of you getting inside information to affect the outcome of the game are not as likely as betting on an actual team.
>> i understand there’s only two weeks left for the nhl collective bargaining agreement and then it will expire so three days of talks in montreal this week. Was there any progress? What’s the status?
>> the status is status quo right now. There’s not much new to talk about except that they did meet for three days, they’ve gone over as much as they can go over. The players’ association wanted a breakdown of all 30 teams and their financial practices. They’ve finished that. The nhl is waiting for the players’ association to come back with a different proposal, something they can maybe break ground and make movement on. They’ll meet again next week. They don’t have a date but they say they’ll meet next week. There’s only two weeks to go and time is running out.
>> two weeks to go, the season kicks off in october. The whole season could get scratched if things don’t clear up?
>> yeah, october 12, 13, right around there, the first couple of weeks of october it starts and if they don’t have a new agreement by september 15, you might be looking at several months of a lockout. You could look at the whole season. Many players have said we’re prepared to sit out the entire year, if not longer.
>> i have to believe baseball and football leagues love that idea.
>> yeah, hockey die hards trying to find something else on tv. You mention baseball. You remember baseball when the lockout, seemed like it was a done deal, it was going to happen, last minute, last hour of negotiations they reached a deal so hockey fans are probably holding that hope, that this follows the lines of baseball from a a few years ago. >> love to talk golf, the masters champion, phil mickelson, agreed to end his sponsorship with fortune brands. Why that―why would they end that agreement?
>> phil has had this deal with titlist for about four years and had another year left on it. Apparently he was looking to renegotiate. They were paying him about $4 million a year. It might not have so much to do with the money. There were a few Behind-the-scenes things that happened. When you look at where he might go? I don’t think it’s nike but callaway is in the market for a guy like phil mickelson.
>> it’s amazing what winning the masters will do for a guy. Mike buteau, appreciate it. Boeing’s chief executive has tipped his hand on who his successor might be. We’ll bring you that story and more when we return.
