Daily Market Update – February 08, 2012

Top News Highlights

PHH reported that its fleet lease income in the Q4'11 was $350M, up from $340M in the Q4'10. PHH said the increase was due to a $12M increase in lease syndication revenue that was partially offset by a decrease in lease revenue attributable to fewer units under lease. Average fleet leased vehicles in the Q4'11 were 270,000 vs. 284,000 in the Q4'10. Fleet Management Services segment profit was $19M in the Q4'11, down 24% from the Q4'10, reflecting stronger net revenues offset by higher cost related to lease syndications, technology investments, and higher incentive compensation expenses
KKR Financial reported that its Q4'11 net income decreased to $76.98M from $78.20M in Q4'10. EPS was $0.43 vs. $0.48 in Q4'10. Net investment income increased to $89.97M from $80.98M prior year. KKR Financial also declared a quarterly cash distribution of $0.18 per share for the Q4'11 and an annual special cash distribution of $0.08 per share for 2011
Goldman Sachs Asset Management said that it will acquire Dwight Asset Management from Old Mutual Asset Management. The financial terms of the deal were not disclosed. Subject to certain conditions, Dwight is expected to become a part of GSAM in the Q2'12. GSAM said the deal represents a significant step in its efforts to establish a leading position in the defined contribution, or DC investment-only business

Economic Highlights

Consumer borrowing in the U.S. rose more than forecast in Dec, driven by demand for auto and student loans. Credit rose by $19.3B to $2.5T, Federal Reserve showed. The gain topped the $7B forecast of economists surveyed by Bloomberg and followed a $20.4B advance in Nov. The back-to-back increase at the end of 2011 was the biggest since Oct-Nov 2001
Germany's trade surplus decreased more than expected by economists in Dec as exports dropped, data from the Federal Statistical Office showed. The trade surplus declined to EUR 12.9B in Dec from EUR 15.9 in Nov. Economists had forecast a decline to EUR 13.7B. On a calendar and seasonally adjusted basis, exports fell 4.3% M-o-M in Dec, faster than the expected 1% decline. Meanwhile, imports dropped 3.9%, confounding expectations for a 1% rise
China's central bank pledged support for first-home buyers as a crackdown on real-estate speculation threatens to trigger a property slump in the economy. Officials will increase support for construction of affordable housing and ensure that “loan demand from first-home families” is met, the People's Bank of China said