WORLDWIDE : HEADLINES
PNC Financial in talks to buy BBVA’s U.S. arm for over $10 billion: source
PNC Financial Services Group Inc PNC.N is in advanced talks to buy the U.S. arm of Spanish bank BBVA BBVA.MC for more than $10 billion in an all-cash deal, according to a person familiar with the matter.
A deal between PNC, which is one of the largest local U.S. lenders by assets, and BBVA’s U.S. arm could be announced as early as this week, the source said on Sunday.
PNC and BBVA USA did not immediately respond to Reuters’ requests for a comment.
The Wall Street Journal first reported the news on talks between the two companies.
Full coverage: REUTERS
China’s factory output beats forecasts as Asia shakes off COVID slump
BEIJING – China’s factory output rose faster-than-expected in October and retail sales continued to recover albeit at a slower-than-forecast pace, as the world’s second-largest economy emerged from its COVID-19 slump.
Industrial output climbed 6.9% in October from a year earlier, data from the National Statistics Bureau showed on Monday, in line with September’s gain. Analysts polled by Reuters had expected a 6.5% rise.
The upbeat figures came as other Asian economic powerhouses also climbed out from their pandemic depths with Japan’s economy reporting its fastest quarterly growth on record.
China’s industrial sector has staged an impressive turnaround from the pandemic paralysis seen earlier this year, helped by resilient exports.
Now, with the coronavirus largely under control in China, consumers are opening up their wallets again in a further boost to activity.
China’s fourth-quarter economic growth will accelerate from the third quarter, Fu Linghui, spokesman of the National Statistics Bureau said, told reporters at a briefing.
Consumption prospects are improving, with the services industry showing good recovery momentum, Fu said.
Full coverage: REUTERS
Japan’s economy vaults back from COVID-induced recession, but outlook murky
TOKYO – Japan’s economy grew at the fastest pace on record in the third quarter, rebounding sharply from its biggest postwar slump, as improved exports and consumption helped the country emerge from the damage caused by the coronavirus pandemic.
However, analysts painted the sharp bounceback as a one-off from the depths of recession, and cautioned that any further rebound in the economy will be moderate as a resurgence in infections at home and abroad clouds the outlook.
The world’s third-largest economy expanded an annualised 21.4% in July-September, beating a median market forecast for an 18.9% gain and marking the first increase in four quarters, government data showed on Monday.
It was the biggest increase since comparable data became available in 1980 and followed a 28.8% plunge in the second quarter, when consumption took a hit from lock-down measures to prevent the spread of the virus.
“The strong growth in July-September was likely a one-off rebound from an extraordinary contraction caused by the lock-down steps,” said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute
“The economy may not fall off a cliff. But given uncertainty over the outlook, I would err on the side of caution in terms of the pace of any recovery,” he said.
The rebound was driven largely by a record 4.7% surge in private consumption, as households boosted spending on cars, leisure and restaurants, a government official told a briefing.
Full coverage: REUTERS
WORLDWIDE : FINANCE / MARKETS
Asian stocks hit record peak as vaccine hopes dampen virus fears
SYDNEY – Asian stocks hit a record high on Monday as vaccine optimism and strong economic data from China and Japan outshone worries about rising coronavirus cases, lifting just about every sector.
MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS gained 1% to hit its highest since its launch in 1987 with markets across the region making milestone peaks.
Japan’s Nikkei .N225 traded at 29-year highs, South Korea’s Kospi .KS11 at its highest since early 2018 and Australia’s ASX 200 .AXJO hit an eight-month peak in the morning, before a glitch halted trade. [.T][.KS][.AX]
S&P 500 futures ESc1 rose 0.6% following the index’s record close on Friday, Nasdaq 100 futures NQc1 leapt 1% and European futures were up strongly with EuroSTOXX 50 futures STXEc1 up 0.8% and FTSE futures FFIC1 up half a percent.
Currencies and commodity markets were a little more circumspect, but the dollar was down a tad against trade-exposed currencies and oil prices firmed after falling on Friday. [FRX/][O/R]
Japanese economic growth, which beat records and forecasts to pull the world’s third-largest economy out of recession and better-than-expected industrial output in China added to the enthusiastic mood, as did a weekend trade deal.
While light on detail, 15 Asia-Pacific economies, including China and Japan, but excluding the United States, agreed to reduce future tariffs at a time of rising protectionism elsewhere.
Full coverage: REUTERS
Oil prices edge up on hopes OPEC+ maintains supply curbs
SINGAPORE – Oil prices edged up in early Asian trade on Monday, recouping some losses from the previous session as hopes that OPEC+ will continue to curb output offset concerns of weaker fuel demand amid rising COVID-19 cases and higher production from Libya.
Brent crude futures for January LCOc1 rose 27 cents, or 0.6%, to $43.05 a barrel by 0043 GMT while U.S. West Texas Intermediate crude for December CLc1 was at $40.48 a barrel, up 35 cents, or 0.9%.
Both contracts gained more than 8% last week on hopes of a COVID-19 vaccine and that the Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia will maintain lower output next year to support prices.
The group, also known as OPEC+, has been cutting production by about 7.7 million barrels per day, with a compliance rate seen at 101% in October, and had planned to increase output by 2 million bpd from January.
OPEC+ is due to hold a ministerial committee meeting on Tuesday which could recommend changes to production quotas when all the ministers meet on Nov. 30 and Dec. 1.
Full coverage: REUTERS
Dollar steadies amid rising global coronavirus cases
TOKYO – The dollar was hemmed into a narrow range on Monday, as traders weighed the economic impact from a resurgence of global coronavirus cases against prospects for a working vaccine that could help reignite global growth.
Global markets surged last week after on vaccine optimism, with the dollar rising as traders quit their long-yen positions. But the currency market had turned risk averse towards the end of the week as global infections spread.
More than 54.01 million people have been reported to be infected by the novel coronavirus globally, with death toll exceeding 1.3 million, according to a Reuters tally.
Meanwhile, the total virus cases in the U.S. surpassed 11 million on Sunday as the pace of the pandemic quickened.
Against a basket of currencies, the greenback was roughly near where it ended last week, fetching 92.68=USD.
“Currency moves which were prompted by positive vaccine news have taken a pause. With no additional, positive news on the vaccine, U.S. interest rates and stocks went into correction mode at the end of the week, and dollar/yen fell,” Masafumi Yamamoto, chief currency strategist at Mizuho Securities said.
Full coverage: REUTERS
