... ever more efficient and scalable production facilities. China emerged as a clear winner in this ... in and out of the region. Local stock markets make international headlines as thinly traded markets ...
Thursday, March 27, 2008
Whats up with Asian currencies?
Metals - Gold rises as dollar weakness continues to spur buying
... dollar dropped against the euro after the German Ifo business climate index in March boosted ... from over and any major falls in equity markets are likely to spark fresh risk aversion, ...
Dubai Ports International plans to invest in Iraq
... March 2008 (Voices of Iraq) -- Iraqs Stock Exchange (ISX) index decreased by 0.661 % to ... Cairo International Industrial Exhibition, organized by the Egyptian Ministry of Trade and Industry from (18 ...
Wednesday, March 26, 2008
Aust dollar ends firmer
... since March 2003 when American-led forces invaded Iraq. The question asking Americans about their expectations ... news out of the States and the stock market. The US dollar ended the Australian session ...
Cold winter warms natural gas prices
... these levels. In all, he says, the equity market has been focused on the deteriorating financial ... Addax Petroleum Corp., which has properties in Nigeria as well as interests in Gulf of ...
FirstAlert: 8-9:50 A.M. Investrend / Bestcalls
... economic releases. (By Dr. Joe Duarte) The stock market seems to have decided that for now ... Menachem Begin and Jimmy Carter signed the Israel-Egypt Peace Treaty in Washington, DC in 1979. ...
Iraqi Minister of Trade: Damascus Summit Bolsters Arab Relations
... March 2008 (Voices of Iraq) -- Iraqs Stock Exchange (ISX) index decreased by 0.661 % to ... Cairo International Industrial Exhibition, organized by the Egyptian Ministry of Trade and Industry from (18 ...
Bears in charge, says U.S. fund guru
... much to worry about in the Chinese stock market, which many others speculate may burst after ... is buying Chinese renminbi (yuan), yen and Swiss francs. The U.S. dollar will no longer ...
TABLE-China Baoshan Iron and Steel 2007 net drops
... news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Reuters ...
Asian bond spreads widen after weak US economic data
... stock markets provided support. The iTRAXX Asia ex-Japan high-yield index -- a key measure of ... a US-led global economic slowdown. But regional equity markets held up well, adding some support the ...
Stability hopes rest with Gilani
... YORK (MarketWatch) -- The swearing in of Pakistans new prime minister Tuesday is a step ... 31%. The market capitalization of the Karachi Stock Exchange is about $75 billion, while Pakistans GDP ... indicates the enormous potential of the local stock market, Dzierwa said. Local retail investors dominate Pakistans ...
Tuesday, March 25, 2008
Why the Pension Fund Act Must Be Amended
... that 35 per cent of the fund be invested in equities quoted in the Nigerian Stock Exchange (NSE). The architects of the law were very conscious of the fact that the ...
Interview transcript: Dmitry Medvedev
... Foreign investors interest in Russias financial and stock markets is as high as ever and we ... new charges? Because as you know a Swiss court has said it is politically motivated, ... US and in Great Britain and in Switzerland they have had to take measures to ...
Force Protection CEO says company pressing on amid bad news...
... By Noelle Phillips Mar. 25--With the Nasdaq Stock Market threatening to remove Force Protection from its ... Humvee, which is used by troops in Iraq and Afghanistan. The company has placed a ...
Vietnam, 6th largest country to attract FDI
... Vietnam to be only behind China, India, Russia, the US and Brazil. According to the ... a report on initial public offerings and stock market listings last year. The forums agenda included ...
NBAD shareholders okay $378m bond
... in the fourth-quarter, beating analysts forecasts, on stock market-related income and said it planned to expand ... plans to open eight new branches in Egypt to take the total to 30 by ...
Iraq participates in Cairo International Industrial Fair
... week with the inauguration of a new stock exchange system in Baghdad. 24 March 2008 (Iraq ... Cairo International Industrial Exhibition, organized by the Egyptian Ministry of Trade and Industry from (18 ...
Asia-Pacific stocks follow Wall Street higher - Summary
... Seng Index surged 6.43 per cent and Australias ASX200 index rose 3.7 per cent after ... Indias benchmark 30-stock Sensex on the Bombay Stock Exchange ended trading at 16,217, up by 928 ...
Sasol unveils S.Africas biggest empowerment deal
... 3,11% higher at R392 in morning trade compared to a 1,75% rise in the JSE Securities Exchange Top-40 index. Some previous BEE deals have been criticised by unions and opposition politicians ...
Monday, March 24, 2008
South Africa: Heres Hoping the Market is Right About Bell column
... price:earnings ratio for financial 2007 was 12,8. At the close of trade on the JSE on Monday, and following the publication of the results, the share price was R44,70 ...
The Ultimate Gold Trade
What a week for the precious metals! Gold blasts past $1000 per ounce, and silver trades above $21, and then suddenly the floor drops out from under both metals. In fact, the financial markets in general seem to be reeling from the
Will Biofuels replace Crude Oil products?
Commodity OnlineMUMBAI: As Crude Oil prices skyrocket, the world is these days increasingly talking about alternative energy methods. Can Biofuel products replace Crude Oil products.?
BoE, Fed deny mortgage security buyout plan
LONDON/WASHINGTON (Reuters) - The Federal Reserve and Bank of England denied a report on Saturday that they were in talks over possibly using public funds to make mass purchases of mortgage-backed securities to ease the global credit crisis.
Saturday, March 22, 2008
Dollar edges up, posts gains after rough week
TOKYO (Reuters) - The dollar edged higher against the yen and Swiss franc on Friday, recovering to post a rise on the week after initially plunging to record lows as the collapse of Bear Stearns stirred fears about the broadening credit crunch.
Can you stop a money train wreck?
When you see a loved ones financial disaster coming and he or she doesnt, the stage is set for drama. Heres when you should intervene -- and when you shouldnt.
Why Visas IPO should charge you up
The credit card behemoths initial public offering hits the market today as the biggest ever in the US. Even if you dont carry a piece of the company in your wallet, you may want it in your portfolio.
Wednesday, March 12, 2008
New arrest in SocGen trading scandal
(Reuters) - Police arrested another employee of Societe Generale on Wednesday as they probe the world's biggest rogue trading scandal, Paris prosecutors said.
In January, France's second-biggest listed bank SocGen unveiled 4.9 billion euros ($7.53 billion) of losses which it blamed on rogue deals carried out by Jerome Kerviel, a 31-year old junior trader at the bank.
The losses have made SocGen a possible bid target.
The Paris prosecutor's office identified the latest person being held as a trader from a subsidiary of SocGen.
A source close to the matter said the person being held works for SG Securities, the bank's share brokerage arm.
SocGen declined to identify the person or the division.
House's Frank Says Muni-Bond Ratings Are `Ridiculous'
Bloomberg) -- U.S. Representative Barney Frank said it is ``ridiculous'' that bond-rating companies apply tougher standards to local government debt as he prepares to hold a hearing on the soaring interest costs of municipalities.
California Treasurer Bill Lockyer and other state officials are calling for Standard & Poor's, Moody's Investors Service, and Fitch Ratings to change a system they say costs taxpayers by exaggerating the risk that states and cities will default on their debts. Every state except Louisiana would be AAA if measured by the scale used for corporate borrowers, according to research by Moody's Investors Service.
``This notion of having a separate standard for the municipals because they would do too well on the other standard is ridiculous,'' Frank, the Democrat who chairs the House Financial Services Committee, told reporters in Washington yesterday.
Frank's committee today opens a hearing into how states, local governments and other tax-exempt borrowers, which have $2.6 trillion of debt outstanding, are being hurt by the crisis in confidence in U.S. financial markets. The interest costs on auction-rate securities, a type of debt used by municipalities, has almost doubled since January and investors have also demanded higher yields on tax-exempt bonds backed by insurers that are struggling to maintain their own credit ratings.
Insurers' Investments
``The bad investments they have made have dragged down the value of the municipal issuers and cost money for people who want to build schools and roads,'' Frank said in a Bloomberg Television interview today.
Lockyer at today's hearing plans to ask Congress to pressure the rating companies to change their system, spokesman Tom Dresslar said. Other witnesses set to testify include Ajit Jain, the chairman of Berkshire Hathaway Assurance Corp., Laura Levenstein, a senior managing director for Moody's, and New York's superintendent of insurance, Eric Dinallo.
``The current system makes no sense,'' said Dresslar. ``Taxpayers wind up paying billions of dollars in higher interest rates and insurance premiums.''
Because ratings are typically lower on the municipal scale, local governments have paid insurance companies to back their bonds with AAA ratings, seeking to reduce borrowers' costs. With insurers' ratings under pressure because of losses on mortgage debts, states, cities and hospitals have faced higher interest costs on floating-rate bonds backed by the guarantors as investors shun the debt.
U.S. Stocks Rise, Led by Industrials, on Caterpillar Forecast
(Bloomberg) -- U.S. stocks gained for a second day, extending the market's biggest rally in five years, after forecasts from Caterpillar Inc. and Bear Stearns Cos. spurred speculation that profits will rebound this year.
Caterpillar, the largest maker of bulldozers, rose the most in three months after saying emerging markets will boost sales. Bear Stearns, the second-biggest underwriter of U.S. mortgage bonds, climbed after Chief Executive Officer Alan Schwartz told CNBC the firm has enough money to weather market fluctuations.
The Standard & Poor's 500 Index increased 2.26 points, or 0.2 percent, to 1,322.91 at 10:44 a.m. in New York. The Dow Jones Industrial Average climbed 49.99, or 0.4 percent, to 12,206.8. The Nasdaq Composite Index added 9.1, or 0.4 percent, to 2,264.86. Four stocks gained for every three that fell on the New York Stock Exchange. Shares in Europe and Asia gained.
Industrial shares contributed the most to the rally after Caterpillar said machinery orders in emerging markets and efforts to improve public works in North America and Europe will boost sales.
Monday, March 10, 2008
Blackstone says tough conditions hit results
(Reuters) - Private equity and real estate company Blackstone Group LP (BX.N: Quote, Profile, Research) posted lower-than-expected quarterly results on Monday, citing tough market conditions and a write-down of bond insurer FGIC, and said it did not know when business would improve.
Under a measure known as economic net income (ENI), Blackstone earned a fourth-quarter profit of $128.2 million, or 8 cents a share, compared with a pro forma adjusted figure of $894.9 million, or 72 cents, a year ago.
Analysts polled by Reuters had expected it to report 16 cents a share.
"Lack of available financing in the U.S. and Europe for large leveraged transactions limited our transaction fees," Blackstone's Chairman and Chief Executive Stephen Schwarzman said in a statement. "Difficult market conditions in the U.S. and Europe continue in 2008 and there is little visibility on when these conditions might improve."
The company cited decreases in the value of Blackstone's portfolio investment in Financial Guaranty Insurance Company, which was hit by turmoil in the credit markets, and lower net appreciation of portfolio investments in other sectors as compared with the prior year.
ENI is net income excluding income taxes, noncash charges related to vesting of equity-based compensation and amortization of intangible assets. Blackstone prefers to focus on ENI because of the huge payouts associated with its more than $4 billion initial public offering in June.
On a generally accepted accounting principles basis, Blackstone posted a net loss of $170 million. That compares with net income of $1.18 billion a year earlier.
McDonald's February Sales Increase 12%, Led by Europe
(Bloomberg) -- McDonald's Corp.'s February sales rose more than analysts estimated as the world's biggest restaurant company lured customers with burgers and chicken sandwiches in Europe and breakfast in China.
The stock rose the most in more than a month in New York trading.
Sales at U.S. outlets open more than 13 months rose 8.3 percent, the Oak Brook, Illinois-based company said today in a statement. Comparable-store sales in Europe advanced 15 percent while gaining 11 percent in the region encompassing Asia, the Middle East and Africa. Last month's extra day for the leap year added 4 percentage points to worldwide same-store sales.
Specialty burger and chicken sandwiches spurred sales in Europe, McDonald's largest region by revenue, while breakfast boosted sales in China and longer hours helped out in Australia. In the U.S., a McSkillet breakfast burrito promotion and dollar- menu advertising lured consumers pinched by declining home values and higher fuel prices.
``McDonald's put up another remarkably strong result in Europe,'' Jason West, an analyst at Deutsche Bank Securities, wrote in a note today. The U.S. results suggest ``McDonald's is not losing share to U.S. competitors as some may have feared.''
McDonald's climbed $1.79, or 3.4 percent, to $54.06 at 10:14 a.m. in New York Stock Exchange composite trading, the biggest increase since Jan. 31. The stock dropped 11 percent this year through last week after rising in each of the past five years.
The median estimate of four analysts in a Bloomberg survey was for an increase of 7.3 percent in same-store U.S. sales.
ECB's Trichet `Concerned' About Euro's Appreciation
(Bloomberg) -- European Central Bank President Jean- Claude Trichet said he's ``concerned'' about the euro's appreciation, intensifying his rhetoric after the currency climbed to a record against the dollar.
``We're concerned about excessive exchange-rate moves in the present circumstances,'' Trichet told reporters in Basel, Switzerland today. It's the first time Trichet has specifically expressed worry about the currency since November, when he opposed ``brutal'' moves.
The euro fell as much as 0.3 percent after the comments before rebounding, as investors decided Trichet's ability to weaken the currency is limited. The strongest European inflation in 14 years is preventing the ECB from cutting interest rates while the Federal Reserve is slashing borrowing costs to stave off recession in the world's largest economy.
``Trichet is making a distinct change in emphasis,'' said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. Still, ``while the ECB is on hold and the Fed is cutting rates, rate differentials will continue to move in support for the euro.''
The euro rose to a record $1.5459 on March 7, a day after Trichet declined to sound a warning following the ECB's decision to leave its key rate unchanged at 4 percent.
`Strong Dollar'
On that occasion Trichet noted only that U.S. authorities support a ``strong dollar,'' an observation he repeated today with ``extreme attention.'' U.S. Treasury Secretary Henry Paulson said March 7 that a strong dollar is ``in our nation's interest.''
Unlike the Fed, which has cut its benchmark interest rate 2.25 percentage points since September, Trichet's ECB has refused to reduce rates with inflation in breach of its 2 percent goal.
By signaling an unwillingness to take action, the ECB is indicating ``tacit support for its record-high euro as it uses currency policy to contain inflationary pressures rather than monetary policy,'' said Ashraf Laidi, a currency analyst at CMC Markets in New York.
ECB Executive Board member Juergen Stark told a conference in Paris on March 7 that the ECB does not target a euro-dollar exchange rate. Currency developments ``should be taken into account by monetary policy only to the extent that they have a medium-term influence'' on inflation, he said.
Thursday, March 6, 2008
ECB holds rates, seen forecasting lower growth
(Reuters) - The European Central Bank kept euro zone interest rates unchanged at 4.0 percent on Thursday, and will publish updated economic forecasts which analysts will scrutinize for guidance on future monetary policy.
ECB President Jean-Claude Trichet is due to comment on the competing threats of high euro zone inflation and slower growth at 1330 GMT when he holds his monthly news conference and delivers a quarterly update to the bank's economic projections.
All 72 economists polled by Reuters last week expected the ECB to keep rates on hold this month for a ninth month in a row <ECB/INT>, and the euro was little moved versus the dollar <EUR=>, despite hitting a record high of $1.5349 earlier in the day.
Economists expect ECB staff to forecast lower growth but higher inflation for this year and possibly for 2009, highlighting the Governing Council's dilemma as food and energy prices climb. It is not helped by the strong euro, which holds back inflation but also hampers growth.
Annual inflation in the 15-nation region hit a record high of 3.2 percent in January and February, dampening expectations that the ECB would soon follow other major central banks and loosen monetary policy.
Many economists believe the inflation projections will be revised up. BNP Paribas economist Ken Wattret said he expected the 2009 forecast to be raised to 1.9 or 2.0 percent from the current midpoint forecast of 1.8 percent.
A worsening inflation outlook would make it difficult for the ECB to justify lower interest rates, and mixed economic data and high uncertainty will color the discussion.
Wal-Mart February same-store sales up 2.6 pct
(Reuters) - Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research) on Thursday reported a 2.6 percent rise in sales, excluding fuel, at U.S. stores open at least a year in February.
Analysts, on average, were expecting the company to report a rise of 1.1 percent, according to Reuters Estimates, while the company had forecast same-store sales to be between flat and up 2 percent.
Oil Advances to Record $105.97 as Dollar Drops to All-Time Low
(Bloomberg) -- Crude oil rose to a record $105.96 a barrel in New York as the U.S. dollar fell to its lowest ever against the euro.
Gold and copper also advanced to all-time highs as the sinking dollar made commodities priced in the U.S. currency cheaper. Oil closed at a record yesterday after U.S. crude inventories fell for the first time in eight weeks and OPEC refrained from raising production.
``The reason we've gone above $105 is that the market is still focused on the weakness of the dollar,'' Olivier Jakob, managing director of Petromatrix Gmbh in Zug, Switzerland, said. ``It's going to take more signs of demand destruction around the world before oil stops gaining on the dollar.''
Crude oil for April delivery rose as much as $1.45, or 1.4 percent, to a $105.97 a barrel on the New York Mercantile Exchange, the highest since futures began trading in 1983. The contract traded for $105.15 at 1:11 p.m. in London.
Brent crude for April settlement rose as much as $1.31, or 1.3 percent, to match the $102.95 a barrel record previously set on March 3. The contract was at $102 on London's ICE Futures Europe exchange at 1:14 p.m. local time.
The euro climbed to $1.5347, the highest level since the single currency's debut in 1999, on speculation the European Central Bank will hold its key interest rate at a more than six- year high as the Federal Reserve keeps cutting its benchmark rate.
``If you think the dollar will weaken then you may choose to sell the dollar and go long commodities,'' said Harry Tchilinguirian, senior analyst at BNP Paribas SA in London. ``Robust fundamental outlooks, as in the case for oil, present potential to strongly offset the decline in the nominal value of the dollar.''
Tuesday, March 4, 2008
Copper May Rise on Dollar Slide; Lead Gains to Four-Month High
(Bloomberg) -- Copper may advance in London on speculation declines in the dollar will accelerate investor demand for the metal used in plumbing and power plants.
The U.S. currency reversed gains and fell against the euro and declined for a sixth day against the yen. Copper has climbed 29 percent this year as an index of the dollar against six currencies including the euro and the pound has dropped 4.1 percent.
``The dollar is helping to support commodity prices,'' said Leon Westgate, a metals analyst at Standard Bank Ltd. in London. ``The main driver is money flow.''
Copper for delivery in three months gained $10 to $8,585 a metric ton as of 12:48 p.m. on the London Metal Exchange. Prices yesterday rose to $8,661, the highest since May 2006 when copper gained to a record $8,880 a ton.
The higher prices have curbed demand in China, the world's biggest user, said Eric Yan, head of China trade at Triland Metals Ltd. in London.
``If copper goes up to $10,000, Chinese demand will be dramatically reduced,'' he said. ``Chinese demand is quite weak and I don't think it will recover very soon.''
Nickel rose $400 to $33,600 a ton. Prices have climbed 15 percent since a strike began Feb. 28 at a Colombian mine owned by BHP Billiton Ltd. The workers are still on strike, Illtud Harri, a spokesman for BHP in London, said in an e-mail today.
Global nickel inventories in warehouses monitored by the London Metal Exchange dropped 120 tons to 47,592 tons, the exchange said today in its daily warehouse report. Supplies are little changed this year.
Read more at Bloomberg
Porsche Profit Rises on Cayenne SUV, Volkswagen Stake
(Bloomberg) -- Porsche SE, maker of the 911 sports car, said first-half profit jumped 44 percent as a revamped Cayenne sport-utility vehicle won buyers and the company added to its stake in Volkswagen AG.
Net income in the six months ended Jan. 31 rose to 1.3 billion euros ($1.97 billion) from 897 million euros a year earlier, the Stuttgart, Germany-based company said in a statement today. Pretax profit increased 24 percent to 1.66 billion euros.
Porsche doubled first-half sales of the Cayenne to 20,340 SUVs, boosting overall deliveries 19 percent, even as demand for the 911 and the Boxster roadster waned. The company has been raising its stake in Volkswagen, Europe's biggest carmaker, since buying a holding in September 2005. Porsche said yesterday that it plans to own a stake exceeding 50 percent.
First-half revenue increased 14 percent to 3.49 billion euros, Porsche said today, reiterating figures announced in January. Earnings figures were adjusted to take account of the effects of the expanding stake in Volkswagen as well as by hedging transactions related to the stock purchases, it said.
While Porsche has cut U.S. inventories to prepare for a possible economic slowdown, three new models and demand from emerging markets should spur sales in the financial year ending July 31 and produce a result prompting ``tears of joy,'' Wiedeking told investors Jan. 25.
Canada Cuts Rate a Half Point, Signals More Is Needed
(Bloomberg) -- The Bank of Canada cut its benchmark interest rate a half point, the first such move since 2001, and signaled it will have to act again to offset a slump in exports to the U.S.
Mark Carney, in his first decision as governor, cut the target rate for overnight loans between commercial banks to 3.5 percent, the lowest since March 2006. Thirteen of 26 economists surveyed by Bloomberg News predicted the move.
``Further monetary stimulus is likely to be required in the near term,'' the central bank said today in a statement from Ottawa. Signs of economic slowdown in Canada are ``materializing and, in some respects, intensifying.''
Tumbling exports to the U.S. will limit 2008 economic growth to a seven-year low of 1.8 percent, the central bank says, and have erased the country's broad trade surplus for the first time since 1999. The bigger rate cut today also helps catch up with moves this year by the U.S. Federal Reserve, and may slow the Canadian dollar's advance that has battered manufacturers.
``There are clear signs that the U.S. economy is likely to experience a deeper and more prolonged slowdown than had been projected,'' which will have ``significant spillover effects on the global economy,'' the Bank of Canada said today.
Canada's decision comes two days before meetings of the Bank of England, and the European Central Bank, where economists predict policy makers will keep rates unchanged.
Further Cuts
``With further rate cuts clearly needed to insure against the downside risks from a rapidly softening U.S. economy, and since monetary policy acts with a lag, we see no reason for the Bank of Canada to wait,'' Jacqui Douglas, economics strategist at TD Securities in Toronto, said before the decision.
The Fed is expected to cut borrowing costs again on March 18. Canada's benchmark is now half a point greater than that of the U.S., narrowing what was the biggest gap since June 2004. That premium has helped keep Canada's currency close to a record high.
The currency rose to a record 90.58 Canadian cents per U.S. dollar on Nov. 7 and has gained 26 percent in three years. Today it weakened 0.3 percent to 99.32 Canadian cents per U.S. dollar at 9:19 a.m. in Toronto.
Canada sends about three-quarters of its exports to the U.S., making the two countries the world's biggest trading partners, and the high dollar makes those goods less competitive. The U.S. economic woes have sapped demand for Canadian lumber and automobiles, two of the five biggest exports.
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