Racetrack proposals to be aired at luncheon

After a month’s break, the Auto Lunch Bunch will return to its original venue at the Waikiki Yacht Club via sponsorship by automotive radio show host Bill Maloney.

The theme of the Wednesday luncheon is racing, which will be reflected in the Kars at the Kurb display as well as by the speaker, Ohana Gates representative Wayne Rhoden. He will show renderings of various proposals for the return of a racetrack on Oahu and will discuss Ohana Gates’ efforts toward that end.

Reservations are required for the noon luncheon, which costs $18. Cash will not be accepted. Menu choices include a mahimahi burger with fries, a hamburger with fries, or a grilled chicken Caesar salad.

Reservations can be made by contacting Ed Kemper at 225-2965 or via email at edracers@aol.com.

Japan’s factories increase their production

TOKYO >> Japanese industrial output rose 1.4 percent in October from September, below forecasts and a decrease from the year before.

Government data released today also showed retail spending fell in October from a year earlier.

The slowdown in China has reverberated in neighboring Japan, the world’s third-largest economy, which fell back into recession during the summer, contracting 0.8 percent in the July-September quarter.

But industrial output rose month-on-month in both September and October, suggesting the recession may be short-lived, Marcel Thieliant of Capital Economics said in a research note.

“The second straight rise in industrial production indicates that the economy returned to growth this quarter following two straight contractions in output,” he said.

Banks’ third-quarter earnings up 5%

WASHINGTON >> U.S. banks’ earnings rose 5.1 percent in the July-September quarter from a year earlier, largely because of a drop in legal expenses for the largest financial services companies.

The Federal Deposit Insurance Corp. says that profits reached $40.4 billion, up from $38.4 billion in the third quarter of 2014.

The data illustrate the steady improvement in banks’ health since the financial crisis in 2008. Nearly 60 percent of banks insured by the FDIC reported higher quarterly earnings compared with a year ago. The number of unprofitable banks fell to just 5 percent, down from 6.6 percent a year ago and the lowest in more than a decade.

Just one bank failed in the third quarter, a far cry from the two or three that failed each week in 2009.

Analyst says S&P 500 will hit 2,200 in 2016

Bank of America Merrill Lynch is the latest bank to throw its proverbial hat into the year-ahead outlook ring.

Savita Subramanian, head of U.S. equity strategy and U.S. quantitative strategy, is forecasting the S&P 500 will reach 2,200 in 2016. She also included a target of 3,500 by 2025. The index closed Wednesday at 2,088.87. The stock market was closed Thursday for Thanksgiving.

For next year Subramanian says to “stick with the S&P 500” despite valuations having less room to run and the long-in-the-tooth bull market in equities heading into its seventh year. “We expect modest gains for U.S. large cap stocks in 2016: The likelihood of a recession in the next 12 months is low in our view,” the analyst adds. Furthermore, neither valuations nor the economic data look particularly worrisome compared with previous peaks in the market, according to BofAML.

Going beyond the next 12 months, however, things really look good. Subramanian and her team point to a nearly 70 percent rise by 2025.

———

Star-Advertiser news services