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Daily Scan: Asia caps the week lower; European shares tumble after Fed moves closer to rate hike

By NexChange
Capital Markets

crash wreck tumble

Updated throughout the day

November 13

A vicious assault on commodity prices sent Asian shares hurtling on Friday with the Hang Seng Index falling 2.15%, the Shanghai Composite dropping 1.43%, and the Nikkei 225 slumping 0.51%. Overnight, a bevy of Federal Reserve officials in the U.S. began speaking not about when to raise rates but by how much and how quickly. The rest of the region was also in pretty bad shape, ironically fitting today’s date:

Day Week
Hang Seng Index -2.15% -1.98%
Hang Seng China Enterprises Index -2.19% -3.58%
Shanghai Composite -1.43% -0.85%
Shenzhen Composite -2.39% +2.59%
Nikkei 225 -0.51% +1.63%
Straits Times Index -0.98% -3.085

Shares in Europe aren’t looking that great either. The FTSE 100 – despite strong gains in mining shares – has fallen 0.39% and is currently on track to its worse showing in two months. The DAX 30 and the CAC 40 meanwhile are both trending the wrong way with the former tanking 0.13% while the latter falls 0.10%.

Here’s what else you need to know:

Suu Kyi's NLD wins Mayanmar election by landslide.  Myanmar's opposition National League for Democracy has won a landslide election victory, officials say, with more than 80% of contested seats now declared. BBC

German GDP growth decelerates. German GDP came in at 0.3% for the third quarter, in-line with expectations but still disappointing given that it expanded 0.4% the quarter before. If this keeps up, Merkel’s going to have a real bad time. Financial Times (paywall)

U.S. has “Jihadi John” in its cross-hairs. US forces have carried out an air strike targeting the British Islamic State militant known as “Jihadi John,” the Pentagon has said. The extremist was seen in videos of the beheadings of Western hostages. BBC

Japan industrial production beats estimates. Japan’s industrial output grew 1.1% in September, just a smidge higher than the forecasted 1% climb but well above August’s 1.2% contraction. Tertiary industry activity however slumped 0.4%, far below expectations of a 0.1% nudge. METI

Malaysian GDP growth cools to a two-year low. Malaysia’s GDP growth rate came in at just 4.7% in the third quarter, its slowest growth rate in more than two years. A fall in consumption seems to be the main driver of the fall. Nasdaq

Singapore retail sales disappoint. Singaporean retail sales came in at just 4.7% last month, a marked drop from the preceding month’s 6.6% reading, and quite the fall from the expected 6.5% climb. It could’ve been way worse though, had auto sales not surprised to the upside. Investing/Straits Times

U.S. flies B-52 bombers near the Spratlys. In another “freedom of navigation” operation, the U.S. flew two B-52 bombers within 12 nautical miles of the Spratly Islands in the South China Sea. The flights came after China parked a few of its J-11 fighter jets on Woody Island, one of the five artificially constructed landmasses in the area. The Hill

India PM Modi visits the UK. In a speech to the UK parliament Narendra Modi said current negotiations between the UK and India are a “huge moment for our two great nations.” BBC

VW sets November whistle-blower deadline. Volkswagen has set a November end deadline for its whistleblower program designed to encourage workers to disclose information about the carmaker’s two emissions scandals in a move to speed up investigations. Reuters

Goldman Sachs promotes 425 people to managing director. Almost 30% of the new managing directors are millennials. About 40% of those were hired at Goldman as entry level analysts, and 20% began as summer interns. Loyalty counts somewhere!Business Insider

Deutsche Bank keeps moving executives. The top officials of the investment bank are shifting, with Goldman Sach’s Alasdair Warren appointed as head of corporate and investment banking for EMEA. John Eydenberg will be vice chairman of CIB for the Americas, and Marc Pandraud will be vice chairman of CIB for EMEA, new roles for the firm. Wall Street Journal (paywall)

IMF tells U.S. Fed to wait for inflation numbers. The IMF paper released Thursday says that the Fed should look for firm signs of rising inflation, as well as a stronger labor market before raising interest rates. The report came out in anticipation of of the G20 meeting in Turkey. Reuters

You wont believe this…

Chinese scholars turn in bogus papers.  More than 100 academic papers published in international journals by Chinese scholars have been invalidated this year after they were found to have been ghostwritten or verified by bogus referees. SCMP (paywall)

Apple says sorry after saying black students “might steal something.” The tech giant apologized after a staff member at one of its stores in Australia kicked out a group of black students over fears of shop lifting. Guardian

Fuhgeddaboudit. Vincent Asaro, the alleged mob leader, was found not guilty in connection to the 1978 Lufthansa heist made famous in the movie “Goodfellas.” The 80-year-old’s cousin Gaspare Valenti provided incriminating testimony against Asaro that sounded as good as the movie was. CNN

Photo: David Hunter

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