Confusion sends Europe lower as US deadline looms.
Despite optimistic closing comments from Senate Majority leader Harry Reid on Sunday, European markets have edged lower this morning after yet another weekend with no clarity on a deal.
Even with “constructive discussions” on Sunday, no details have really been given about what that entails, leaving markets as confused as ever about what we are waiting for. It appears we are not alone, with Senator Claire McCaskill stating “I don’t even understand, at this moment, what this is about”. Not really surprising given the predicament , but equally unsettling.
Having already heard comments from majority sovereign creditors Japan and China, now is the turn of the Banks to have their say, with comments from JP Morgan supremo Jamie Dimon. He made it clear that his view is that the US would not default, then chose to clarify that was “a default on its payments”, which would allow an extension beyond the pending deadline. Perhaps this is weight to the argument that they are indeed destined to miss the October 17thcut off and take the deal right to the wire.
This would unfortunately mean cherry picking who to pay to avoid “default” for as long as possible, preferring to bulldoze relationships with creditors to keep the spotlights on the political pantomime a little longer.
Kentz corp has won a contract from a joint venture between Qatar Petroleum and Shell at a Pearl Gas-to-liquid plant in Ras Laffran. The 3 year contract extends there involvement in the project to 2016, having first come on board back in 2006.
A tale of two Auto makers has dominating mainland Europe this morning, with both Porsche and Peugeot hitting the headlines. Porsche have come up with some unprecendented sales and investement goals into the next decade. Porsche aims to start up in 15 new countries by 2020 and push vehicle sales through 200,000 per year by around 2015. The main region of interest appears to be Africa, with China also in the spotlight as it proposes to add to the new Marquee dealership in Shanghai.
On the flip side, Peugeot stock was crushed after multiple stories of how it will raise 3 billion Euros for desperately needed investment to try and compete outside of Europe. The possibility that matching stakes would be taken by the French government and Chinese partner Dongfeng has not been well received, with concerns that any participation from the French state could make the firm “unmanageable” according to one Parisian trader. The stock is down a gut wrenching 11% in early trade.
Recruitment firm Michael Page have also moved loser in morning trade after moving full year guidance lower this morning. The firm expects full year operating profit to be around £68 million, with prior estimates set around £70.5 million.