Earnings Wall

/quotes/zigman/68270/quotes/nls/aapl AAPL +0.94% named the luxury-goods firms Chief Executive Angela Ahrendts as senior vice president of retail and online stores. U.S. deal optimism More broadly, investors in Europe welcomed developments in the fiscal negotiations in U.S., with the debt ceiling looming and the government shutdown moving into Day 15. On the Senate floor on Monday, Senate Majority Leader Harry Reid said he was very optimistic about concluding deals this week to raise the debt limit as well as end the government shutdown. Sen. Mitch McConnell, the minority leader, said he shared Reids feeling that well get a result thats acceptable to both sides. On Tuesday, media reports said House Republicans will push for a separate bill containing the same extensions to the debt ceiling and budget, but delays the medical-device tax for two years and turns off the Treasurys capability to use so-called extraordinary measures. A bit after the report, House Speaker John Boehner said House Republican leaders are working with our members on a way forward. Meanwhile, the White House said President Barack Obama will meet with House Democratic leaders at 3:15 p.m. Eastern. U.S. stocks rose on Monday , but traded lower on Tuesday . Asia markets closed mostly higher . German ZEW data German data further provided investors with a reason to celebrate. The ZEW sentiment survey showed that the economic expectations indicator rose further above its long-term average in October, to 52.8 points from 49.6 points in Septemberbeating economists expectations for an unchanged reading. Germanys DAX 30 index /quotes/zigman/2380246 DX:DAX +0.92% jumped 0.9% to 8,804.44, for the highest closing level on record.

Europe shares rally on renewed hopes for U.S. debt deal

Singapore and Finland retained their second and third positions. Of the 701 respondents, 70 percent forecast economic expansion in 2014, with significant growth in 2015, the Roland Berger study showed. About 53 percent of respondents in northwest Europe expect their competitiveness relative to the region to improve. By contrast, only 10 percent in southwest Europe see an improvement in their position. No Swiss respondents anticipated a worsening of their situation. German Reforms Germany, home to Siemens AG (SIE) , Europes largest engineering company, and Volkswagen AG (VOW) , which is seeking to become the worlds biggest carmaker by 2018, must continue reforming, European Central Bank Executive Board member Joerg Asmussen said in a speech in Dautphetal-Buchenau on Aug. 27. Germany and Europe are dependent upon exports, so we have to see to what extent regulatory issues lead to problems, Roland Bergers Falckenberg said. Competitiveness in France is more difficult. The government is making it harder for businesses to shut operations if the business does not work. And this makes the French market less attractive to investors. Europes competitiveness compared to Asia will decline in the next three years, according to 64 percent of respondents in the survey, while 49 percent expect it to worsen when compared to North America . Only 14 percent see the competitive advantage against North America improving in that period. All companies constantly have to improve profitability.

Credit: Reuters/Francois Lenoir LUXEMBOURG | Tue Oct 15, 2013 9:46am EDT LUXEMBOURG (Reuters) – Spain will probably bring an end to the programme of international aid for its banks on schedule this year, Economy Minister Luis de Guindos told a news conference in Luxembourg on Tuesday. Madrid turned to Europe last year for 41 billion euros ($56 billion) to help the weakest of its banks, which have been crippled by the collapse of its real estate market and resulting mass of failed loans to developers and houseowners. With the economic fortunes of Europe’s debt-ridden southern half showing signs of improving, a senior official in Brussels told Reuters last week that Spain was unlikely to seek more financial aid for the banks when the current programme runs out. “The central scenario, and the most probable one, is that on November 15 (it will be decided that) Spain’s banking programme will come to a close,” de Guindos told reporters at a meeting of European Union finance ministers. The European Central Bank and the European Commission, which backed the rescue, last month said in a review of Spanish banking reforms that the sector remained comfortably solvent, and praised its turnaround. They stressed, however, that Spain’s weak economy – set to emerge from a two-year recession by the end of the year – and a fall-off in lending still posed a risk. Like their European peers, Spanish banks also face a European review of their balance sheets early next year before the ECB takes over as supervisor. Some believe their restructured or refinanced loans could come under particular scrutiny, and that they could be told to put more cash aside to counter potential losses on these, banking sources in Madrid have said. Any capital gap that that process leaves is likely to be manageable, though smaller banks that are owned by the state are unlikely to be able to turn to the market like some of their peers. The Spanish government currently estimates that lenders will have to put aside an extra 5 billion euros in provisions to counter such losses, a source at the Economy Ministry said. “The general perception is that in Europe the banking system has not been as thoroughly cleaned up as in the United States … which is among the elements holding back economic growth in Europe,” de Guindos told the news conference, in reference to the European review of banks’ books. (Reporting by Robin Emmott and Martin Santa in Luxembourg, Sonya Dowsett, Jose Elias Rodriguez and Jesus Aguado in Madrid; Writing by Sarah White; editing by Patrick Graham) Tweet this

Spain unlikely to prolong Europe bank aid programme

At 1000 GMT, the FTSEurofirst 300 index of top European shares was up 0.7 percent at 1,261.65 points. The euro zone’s blue-chip Euro STOXX 50 index added 0.6 percent to 2,996.43 points, hitting a fresh 2-1/2 year high, while France’s CAC 40 rose 0.7 percent to a 5-year high and Germany’s DAX was up 0.8 percent, at a record high. “Every time we see a pull-back, a powerful wave of buyers comes back. Investors who have had pockets of cash, waiting for the rally, are now forced to buy,” Aurel BGC chartist Gerard Sagnier said. Positive signals from talks on Monday between Democrat and Republican Senate leaders fuelled hopes of an imminent deal to reopen shuttered U.S. federal agencies and prevent a default on federal debt, sending world stocks higher. The plan under discussion would end a partial government shutdown and raise the debt ceiling by enough to cover the nation’s borrowing needs at least until mid-February 2014. Also brightening the mood, data showed on Tuesday that German analyst and investor sentiment improved unexpectedly in October on signs that the euro zone economy is over the worst of its downturn. The better mood was also visible in the derivatives market, with the Euro STOXX 50 put/call ratio falling back to 1.2, down from a 4-year high of 3.9 hit two weeks ago. The ratio, which is one of Europe’s widely-used gauges of investor sentiment, measures the trading volume of put options versus call options on the Euro STOXX 50. A ratio below 1 signals bullishness, while a ratio above 1.5 usually signals that investors are turning cautious, buying ‘puts’ as a hedge for their equity portfolios in case of a correction. “The consensus is bullish, everyone believes that a deal will be reached (in Washington), so it could already be priced in,” said Guillaume Dumans, co-head of research firm 2Bremans. “Deal or no deal, the size of the U.S. debt remains abyssal, and given the excess of optimism on the market right now, we could get a pull-back.” Mining shares featured among the top gainers on Tuesday, after Rio Tinto boosted its forecast copper output for 2013.