Monday, November 14, 2011

Morning Journal The future of Europe


News on Stocks in Our Portfolios

04:06 PM CME Group (CME +1.3%) says it will guarantee $300M to MF Global's (MFGLQ.PK) trustee to allow for the quicker distribution of funds to disgruntled clients. It adds, "The failure of MF Global and the firm's mishandling of customer segregated funds is absolutely uncharted territory for this industry." (previously) Comment!

12:24 PM Boeing (BA +3.4%) announces a deal to work with Hawai'i BioEnergy on renewable biofuels for aviation. A variety of crops, byproducts, types of algae, and nutrients have been looked as a source for biofuels, but Boeing is locking in on sorghum and eucalyptus as potential sources that can be grown locally and converted to jet fuel. Though flights from airline carriers launched this week powered by biofuels - the million-dollar (or billion-dollar?) question remains: Can it work at scale? Comment!

07:53 AM Boeing's (BA) 787 Dreamliner program could see some "breathing room" following Airbus' (EADSY.PK) announcement of a delay in its A350 production. After repeated delays at Boeing significantly narrowed the competitive edge the 787 hoped to claim from hitting the market first, the momentum may be shifting back towards Boeing's favor. Comment!

10:49 AM W.W. Grainger (GWW +1.9%) moves up after reporting its October daily sales rose 16% Y/Y, due in part to recent acquisitions. U.S. sales, which account for most of the company's top line, rose 9%, Canada climbed 16%, while other businesses, which include the recently acquired Fabory Group, more than doubled. Comment!

08:45 AM Goldman is pounding the table for McDonald's (MCD), believing the company's big investments in advertising, restaurant remodeling, and technology improvements will pay off. The firm adds it expects "continued share gains as [McDonald's] widens the gap between itself and competitors. (previously) Comment!


07:14 AM Confirming earlier reports (I, II), Caterpillar (CAT) makes a pre-conditional offer to acquire ERA Mining Machinery in a deal aimed at helping CAT increase its presence in China. Shareholders of ERA will have to choose between an all-cash offer or a loan note alternative. Comment!

08:35 AM Importing jobs: Caterpillar (CAT) decides to shift production out of Japan to a new manufacturing facility in North America that will build small track-type tractors and mini hydraulic excavators. The company says it will make a decision on the location of the facility with its +1K jobs by the end of the year. Shares of CAT +1.2% premarket. Comment!

06:41 AM Chinese regulators allege ConocoPhillips (COP) violated development plans in an oil field in the Bohai Bay - directly resulting in marine pollution and environmental damage from an oil spill. ConocoPhillips and its partner in the project, state-owned Cnooc (CEO), continue to face sharp media criticism in China over the spill. Comment!

Economics

This Week’s Data

Other

Politics

Domestic


My favorite liberal blogger on Romney (short):
http://dailycaller.com/2011/11/10/romney-send-out-the-aides/

Charles Krauthammer on last Tuesday’s elections (medium):
http://www.washingtonpost.com/opinions/the-2011-elections-a-split-decision/2011/11/10/gIQA6Sas9M_story.html

International

Europe inflation or depression (medium):
http://baselinescenario.com/2011/11/10/is-europe-on-the-verge-of-another-great-depression-or-a-great-inflation/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+BaselineScenario+%28The+Baseline+Scenario%29


Will it break apart (medium):
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100013218/sorry-there-is-no-euro-break-up-plan-yet/

Is war or an attack on Iran possible (medium):
http://www.ritholtz.com/blog/2011/11/iran%E2%80%99s-nuclear-program-and-its-nuclear-option/