As far as obligations are considered, they have to be met by developed countries because they are the major polluters, he added. The agreement on climate change hinges on financing commitments and transfer of technology, he said. Asked if melting of Tibetan glaciers due to the climate change coupled with drying up of River Indus due to building of large dams and barrages and scarcity of water in India and Pakistan could lead to a water war , as was being predicted in many studies, he said there was indeed an issue of water stress in Pakistan because its resources were shared and could lead to a conflict. But he hastened to add that there was always a silver lining because stress could also lead to cooperation. We waste 40 per cent of our irrigation water although ours is an agrarian economy, he said. Asked how could developing countries such as Pakistan could be optimistic that developed countries would agree to their demands on climate change given their dependence on the West, he said when nations define their interests they define them according to their national interests. In multilateral diplomacy if developing countries have similar interests they work together irrespective of differences in bilateral relations, he said referring to joint stand of Pakistan and India on climate change talks. Need more financial stories?? Visit Finance.KalPoint.ComTuesday, September 01, 2009
Showing posts with label International. Show all posts
Showing posts with label International. Show all posts
Pakistan emerges as bridge builder in climate change talks
Posted by imdurrani Labels: International, pakistan, world financeNEW DELHI: Pakistan is working towards developing a solution to climate change because it is in the country s interest, said Farrukh Khan, Director of Pakistan s Ministry of Foreign Affairs. In an exclusive interview with The News, he said: We are playing the role of a bridge builder and have been chairing meetings in the process. It s difficult, however, to quantify the achievements. Khan is Pakistan s top negotiator in climate talks and was here to attend the Media Briefing Workshop for Journalists on Climate Change organised by the Centre for Science and Environment (CSE), India s prestigious independent think-tank on environment. As many as 120 journalists from South Asia attended the two-day workshop. Asked what were his expectations for Copenhagen Conference in December, he said it was a million-dollar question since it was difficult to say at the moment that the participants would be able to work out a comprehensive solution during the talks. Talks on climate change in Bangkok from Sept 28-Oct 9 will determine what type of outcome one should expect at the Copenhagen moot, he said. He said climate change was a global problem that affects everyone and talks on climate change might need more time to reach a solution because of financial crisis. Financial requirements for mitigation run into billions of dollars, he explained.
Dow ends down, S&P, Nasdaq up
Posted by imdurrani Labels: International, US, world finance, world stocksThursday June 25, 2009
NEW YORK: The Dow fell for the fourth day and other indexes ended well off the day's highs on Wednesday after the Federal Reserve reiterated concerns about the economic outlook at the end of its policy meeting.
Technology shares sustained some strength, bolstered by stronger-than-expected quarterly results from software maker Oracle Corp.
The Fed, as expected, left the benchmark fed funds rate at almost zero, and said it would continue its program of purchasing US government bonds and mortgage-related debt.
Stocks pulled back after the Fed did not suggest in its statement that it sees any notable recovery any time soon.
"The Fed is a little more downbeat than the market has been ... that they're emphasizing the weakness is a touch disappointing to me and to the markets," said Jim Awad, managing director at Zephyr Management in New York.
Before the release of the Fed's statement, all three major stock indexes were solidly higher, with the Nasdaq up more than 2 percent. Investors were encouraged by a stronger-than-expected report on monthly durable goods orders, which pointed to increased economic demand.
The Fed's words on the economic outlook were mixed. The central bank said the economy was likely to remain weak for a time, but the contraction's pace was slowing.
The Dow Jones industrial average was down 23.05 points, or 0.28 percent, at 8,299.86. But the Standard & Poor's 500 Index was up 5.84 points, or 0.65 percent, at 900.94. The Nasdaq Composite Index was up 27.42 points, or 1.55 percent, at 1,792.34.
Oracle's results boosted other technology shares and helped drive the PHLX semiconductor index up 1.7 percent. Oracle shot up 7 percent to $21.26 and ranked among the Nasdaq's top advancers.
"You had the good durable number, the good Oracle number that kind of got things going," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.
Data before the opening bell showed new orders for durable goods, which are long-lasting US manufactured products such as refrigerators and washing machines, increased by a much stronger-than-expected 1.8 percent in May, and the median price of new homes hit its highest level since December, even though sales slipped, economic data showed.
The broad S&P 500 index is up 33.2 percent from a 12-1/2-year closing low on March 9, but it had soared as much as 40 percent during the spring rally.
Trading volume was below average on the New York Stock Exchange, with only about 1.10 billion shares changing hands, under last year's estimated daily average of 1.49 billion, while on the Nasdaq, about 2.16 billion shares traded, below last year's daily average of 2.28 billion.
Despite the Dow's lower finish for the day, advancing stocks outnumbered declining ones on the NYSE by a ratio of nearly 3 to 1. On the Nasdaq, about three stocks rose for every two that fell.
(Reuters)
NEW YORK: The Dow fell for the fourth day and other indexes ended well off the day's highs on Wednesday after the Federal Reserve reiterated concerns about the economic outlook at the end of its policy meeting.
Technology shares sustained some strength, bolstered by stronger-than-expected quarterly results from software maker Oracle Corp.
The Fed, as expected, left the benchmark fed funds rate at almost zero, and said it would continue its program of purchasing US government bonds and mortgage-related debt.
Stocks pulled back after the Fed did not suggest in its statement that it sees any notable recovery any time soon.
"The Fed is a little more downbeat than the market has been ... that they're emphasizing the weakness is a touch disappointing to me and to the markets," said Jim Awad, managing director at Zephyr Management in New York.
Before the release of the Fed's statement, all three major stock indexes were solidly higher, with the Nasdaq up more than 2 percent. Investors were encouraged by a stronger-than-expected report on monthly durable goods orders, which pointed to increased economic demand.
The Fed's words on the economic outlook were mixed. The central bank said the economy was likely to remain weak for a time, but the contraction's pace was slowing.
The Dow Jones industrial average was down 23.05 points, or 0.28 percent, at 8,299.86. But the Standard & Poor's 500 Index was up 5.84 points, or 0.65 percent, at 900.94. The Nasdaq Composite Index was up 27.42 points, or 1.55 percent, at 1,792.34.
Oracle's results boosted other technology shares and helped drive the PHLX semiconductor index up 1.7 percent. Oracle shot up 7 percent to $21.26 and ranked among the Nasdaq's top advancers.
"You had the good durable number, the good Oracle number that kind of got things going," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.
Data before the opening bell showed new orders for durable goods, which are long-lasting US manufactured products such as refrigerators and washing machines, increased by a much stronger-than-expected 1.8 percent in May, and the median price of new homes hit its highest level since December, even though sales slipped, economic data showed.
The broad S&P 500 index is up 33.2 percent from a 12-1/2-year closing low on March 9, but it had soared as much as 40 percent during the spring rally.
Trading volume was below average on the New York Stock Exchange, with only about 1.10 billion shares changing hands, under last year's estimated daily average of 1.49 billion, while on the Nasdaq, about 2.16 billion shares traded, below last year's daily average of 2.28 billion.
Despite the Dow's lower finish for the day, advancing stocks outnumbered declining ones on the NYSE by a ratio of nearly 3 to 1. On the Nasdaq, about three stocks rose for every two that fell.
(Reuters)
World Bank cuts forecast for global economy
Posted by imdurrani Labels: global economy, International, world financeMonday June 22, 2009
The World Bank said the global recession this year will be deeper than it predicted in March and warned that a flight of capital from developing nations will swell the ranks of the poor and the unemployed.
The world economy is forecast to contract 2.9 percent this year, compared with a prior estimate of a 1.7 percent decline, the Washington-based lender said in a report released today. Global growth will return next year with a 2 percent expansion, the bank said, cutting its forecast from a 2.3 percent prediction about three months ago.
The bank, formed after World War II to fund health and development projects in poor countries, said that while a global recovery may begin later this year, impoverished economies will lag rich nations in seeing any benefits. The lender called for “bold” policy actions to hasten a rebound and said prospects for rounding up aid for the poorest countries was “bleak.”
“While the global economy is projected to begin expanding once again in the second half of 2009, the recovery is expected to be much more subdued than might normally be the case,” the report said. “Unemployment is on the rise, and poverty is set to increase in developing economies, bringing with it a substantial deterioration in conditions for the world’s poor.”
The World Bank’s report raised concern about the shrinking amount of capital flowing into developing countries. After a peak of $1.2 trillion in 2007, capital flows this year are expected to fall to $363 billion, the report said.
“Investors’ flight from perceived danger contributed to the sharp drop in capital flows to the developing countries, a trend that is very likely to persist through the end of 2009,” the report said.
(Bloomberg)
The World Bank said the global recession this year will be deeper than it predicted in March and warned that a flight of capital from developing nations will swell the ranks of the poor and the unemployed.
The world economy is forecast to contract 2.9 percent this year, compared with a prior estimate of a 1.7 percent decline, the Washington-based lender said in a report released today. Global growth will return next year with a 2 percent expansion, the bank said, cutting its forecast from a 2.3 percent prediction about three months ago.
The bank, formed after World War II to fund health and development projects in poor countries, said that while a global recovery may begin later this year, impoverished economies will lag rich nations in seeing any benefits. The lender called for “bold” policy actions to hasten a rebound and said prospects for rounding up aid for the poorest countries was “bleak.”
“While the global economy is projected to begin expanding once again in the second half of 2009, the recovery is expected to be much more subdued than might normally be the case,” the report said. “Unemployment is on the rise, and poverty is set to increase in developing economies, bringing with it a substantial deterioration in conditions for the world’s poor.”
The World Bank’s report raised concern about the shrinking amount of capital flowing into developing countries. After a peak of $1.2 trillion in 2007, capital flows this year are expected to fall to $363 billion, the report said.
“Investors’ flight from perceived danger contributed to the sharp drop in capital flows to the developing countries, a trend that is very likely to persist through the end of 2009,” the report said.
(Bloomberg)
US exports to Iran up in Obama's first months
Posted by imdurrani Labels: Asia, International, US, world financeMonday June 22, 2009
WASHINGTON: Iran spent nearly twice as much on US imports during President Barack Obama's first months in office as it did during the same period in 2008, showing that despite trade penalties and tense relations, the two countries are still doing business.
The US exported $96 million in goods to Iran from January through April, according to an Associated Press analysis of US government trade data compiled by the World Institute for Strategic Economic Research in Holyoke, Massachusetts. US exports to Iran totalled $51 million during the same period in 2008 and $27 million over those months in 2007.
Soyabeans, wheat and medical supplies - all considered humanitarian items exempt from US trade sanctions - are among the top exports this year.
The latest trade figures reflect an increase in Iran's agricultural imports over the past year due to poor harvests there, said Bill Reinsch, president of the National Foreign Trade Council, a business group in Washington.
"I wouldn't read too much into it as far as trends are concerned," Reinsch said. Reinsch said he is hearing from more businesses interested in Iran. But beyond an effort by the Obama administration to encourage talks with Iran, he hasn't seen any policy changes that would lead to more opportunities for US businesses.
Humanitarian shipments are an example of the tricky line the United States has walked in dealing with Iran - even more so during Iran's election protests. In allowing exports of necessities such as grain and medical supplies, the US has tried to send a message to the Iranian people that it is a friend to them and has no interest in punishing them for their government's policies. At the same time, by helping Iran feed and provide medical care to its population, Washington can't help but provide an unintentional benefit to the Tehran government.
US penalties seek to undermine that government far more than aid it, by withholding technology, equipment and money that would allow it to build its military and industrial base, particularly the oil industry. There is a long-running debate in Congress and among trade experts over the degree to which sanctions work.
(AP)
WASHINGTON: Iran spent nearly twice as much on US imports during President Barack Obama's first months in office as it did during the same period in 2008, showing that despite trade penalties and tense relations, the two countries are still doing business.
The US exported $96 million in goods to Iran from January through April, according to an Associated Press analysis of US government trade data compiled by the World Institute for Strategic Economic Research in Holyoke, Massachusetts. US exports to Iran totalled $51 million during the same period in 2008 and $27 million over those months in 2007.
Soyabeans, wheat and medical supplies - all considered humanitarian items exempt from US trade sanctions - are among the top exports this year.
The latest trade figures reflect an increase in Iran's agricultural imports over the past year due to poor harvests there, said Bill Reinsch, president of the National Foreign Trade Council, a business group in Washington.
"I wouldn't read too much into it as far as trends are concerned," Reinsch said. Reinsch said he is hearing from more businesses interested in Iran. But beyond an effort by the Obama administration to encourage talks with Iran, he hasn't seen any policy changes that would lead to more opportunities for US businesses.
Humanitarian shipments are an example of the tricky line the United States has walked in dealing with Iran - even more so during Iran's election protests. In allowing exports of necessities such as grain and medical supplies, the US has tried to send a message to the Iranian people that it is a friend to them and has no interest in punishing them for their government's policies. At the same time, by helping Iran feed and provide medical care to its population, Washington can't help but provide an unintentional benefit to the Tehran government.
US penalties seek to undermine that government far more than aid it, by withholding technology, equipment and money that would allow it to build its military and industrial base, particularly the oil industry. There is a long-running debate in Congress and among trade experts over the degree to which sanctions work.
(AP)
Oil prices below 70 dollars in Asian trade
Posted by imdurrani Labels: Asia, International, Oil prices, world financeMonday June 22, 2009
SINGAPORE: Oil prices stayed below 70 dollars a barrel in Asian trade Monday as traders took profits following a recent surge, analysts said.
New York's main futures contract, light sweet crude for delivery in July, was down 39 cents to 69.16 dollars a barrel. The contract expires later Monday.
Brent North Sea crude for August delivery eased 24 cents to 68.95 dollars.
Victor Shum, an analyst with energy consultancy Purvin and Getz in Singapore, said New York crude came under pressure as traders locked in profits on the final day of trade, while a stabilising US dollar also supported lower prices.
Oil prices were due for a correction after breaching the 72-dollar mark last week amid concerns they were rising far ahead of a recovery in the ailing global economy, analysts said.
"A price correction in oil is long overdue and the US dollar stabilisation would continue to put pressure on oil," said Shum.
A stronger US currency makes dollar-priced oil more expensive for buyers holding weaker currencies, which in turn tends to dampen demand and pull the market lower.
Shum also said concerns over the pace and strength of a global economic recovery helped crimp the oil market.
"The rally in the global equities market is possibly also stalling a bit, and if the rally in equities markets is running out of steam, it will also put pressure on oil," he added.
Oil prices had plunged from record peaks of more than 147 dollars a barrel in July 2008 to around 32 dollars in December as the economic slowdown crushed demand for energy, but they have slowly clawed their way back.
(AFP)
SINGAPORE: Oil prices stayed below 70 dollars a barrel in Asian trade Monday as traders took profits following a recent surge, analysts said.
New York's main futures contract, light sweet crude for delivery in July, was down 39 cents to 69.16 dollars a barrel. The contract expires later Monday.
Brent North Sea crude for August delivery eased 24 cents to 68.95 dollars.
Victor Shum, an analyst with energy consultancy Purvin and Getz in Singapore, said New York crude came under pressure as traders locked in profits on the final day of trade, while a stabilising US dollar also supported lower prices.
Oil prices were due for a correction after breaching the 72-dollar mark last week amid concerns they were rising far ahead of a recovery in the ailing global economy, analysts said.
"A price correction in oil is long overdue and the US dollar stabilisation would continue to put pressure on oil," said Shum.
A stronger US currency makes dollar-priced oil more expensive for buyers holding weaker currencies, which in turn tends to dampen demand and pull the market lower.
Shum also said concerns over the pace and strength of a global economic recovery helped crimp the oil market.
"The rally in the global equities market is possibly also stalling a bit, and if the rally in equities markets is running out of steam, it will also put pressure on oil," he added.
Oil prices had plunged from record peaks of more than 147 dollars a barrel in July 2008 to around 32 dollars in December as the economic slowdown crushed demand for energy, but they have slowly clawed their way back.
(AFP)
Three-month dollar Libor rate edges up
Posted by imdurrani Labels: forex trading, International, US, World Currencies, world financeSaturday, June 20, 2009
NEW YORK: The rates banks charge one another for borrowing three-month dollars edged higher on Friday from the previous day's record low fixing, but the rise was far less than some market participants feared after news of planned changes to the setting of Libor rates.
Libor is the benchmark for more than $350 trillion of financial products and the world's most widely monitored interest rate. The equivalent sterling and euro rates clocked fresh all-time lows, according to the latest daily fixings from the British Bankers' Association (BBA).
The three-month euro rate hit 1.22563 percent, declining below the previous nadir struck on May 19, while the cost of borrowing three-month sterling funds was fixed at 1.23938 percent. The fixings attracted investor interest in the wake of the BBA's announcement of reforms to the London interbank offered rates system (Libor).
The BBA said it had no target number for additional banks to join the panels that participate in the fixings, but said it planned changes in the definition of its Libor rates to allow a greater number of firms to take part in the process.
"The increased universe of rate providers will make the Libor fixings more stable and robust and a better indicator of system-wide borrowing costs," said T.J. Marta, chief market strategist at Marta on the Markets, in a research note.
The one-month New York Funding Rate (NYFR) was fixed at 0.33 percent Friday, up from 0.32 percent Thursday, while the three-month NYFR was fixed at 0.6178 percent Friday, down from 0.6306 percent Thursday. Libor rates represent the average cost at which a panel of banks believes funds can be borrowed for a given period of time in a given currency.
"The fear of higher Libor rates that was being spoken of yesterday evening - and was priced into the Eurodollar strip - turned out to be a storm in a teacup," said Peter Chatwell, a market analyst at Calyon in London. The planned change to the BBA rate survey had spurred concern in financial markets that smaller, less credit-worthy banks would enter the Libor rate-setting process, raising the cost of borrowing money, particularly in dollars, for all banks that use Libor.
Those concerns contributed to a 7-basis-point widening in two-year US interest rate swap spreads Thursday and a rise in the dollar against the euro. By 9:15 am EDT (1315 GMT), the two-year US swap spread was at 49 basis points, versus around 52 basis points at the intraday peak in New York Thursday.
Chatwell described the worries as overdone, especially in the euro dollar market. Futures had priced in a large jump upward in the Libor rate to as high as 0.88 percent for three-month dollar funds in September, he said. Market watchers were also soothed by what happened to sterling rates, in particular.
"The drop in three-month sterling is particularly interesting, as it looks like a good attempt to break the 1.25 percent resistance point," said one trader in London. Calyon's Chatwell added: "The sterling fixing is the best example of how unlikely it is that Libors will be pushed higher if the panel is enlarged. And it is reassuring to see that some of the banks which are setting higher rates have also reduced their rates."
(Reuters)
NEW YORK: The rates banks charge one another for borrowing three-month dollars edged higher on Friday from the previous day's record low fixing, but the rise was far less than some market participants feared after news of planned changes to the setting of Libor rates.
Libor is the benchmark for more than $350 trillion of financial products and the world's most widely monitored interest rate. The equivalent sterling and euro rates clocked fresh all-time lows, according to the latest daily fixings from the British Bankers' Association (BBA).
The three-month euro rate hit 1.22563 percent, declining below the previous nadir struck on May 19, while the cost of borrowing three-month sterling funds was fixed at 1.23938 percent. The fixings attracted investor interest in the wake of the BBA's announcement of reforms to the London interbank offered rates system (Libor).
The BBA said it had no target number for additional banks to join the panels that participate in the fixings, but said it planned changes in the definition of its Libor rates to allow a greater number of firms to take part in the process.
"The increased universe of rate providers will make the Libor fixings more stable and robust and a better indicator of system-wide borrowing costs," said T.J. Marta, chief market strategist at Marta on the Markets, in a research note.
The one-month New York Funding Rate (NYFR) was fixed at 0.33 percent Friday, up from 0.32 percent Thursday, while the three-month NYFR was fixed at 0.6178 percent Friday, down from 0.6306 percent Thursday. Libor rates represent the average cost at which a panel of banks believes funds can be borrowed for a given period of time in a given currency.
"The fear of higher Libor rates that was being spoken of yesterday evening - and was priced into the Eurodollar strip - turned out to be a storm in a teacup," said Peter Chatwell, a market analyst at Calyon in London. The planned change to the BBA rate survey had spurred concern in financial markets that smaller, less credit-worthy banks would enter the Libor rate-setting process, raising the cost of borrowing money, particularly in dollars, for all banks that use Libor.
Those concerns contributed to a 7-basis-point widening in two-year US interest rate swap spreads Thursday and a rise in the dollar against the euro. By 9:15 am EDT (1315 GMT), the two-year US swap spread was at 49 basis points, versus around 52 basis points at the intraday peak in New York Thursday.
Chatwell described the worries as overdone, especially in the euro dollar market. Futures had priced in a large jump upward in the Libor rate to as high as 0.88 percent for three-month dollar funds in September, he said. Market watchers were also soothed by what happened to sterling rates, in particular.
"The drop in three-month sterling is particularly interesting, as it looks like a good attempt to break the 1.25 percent resistance point," said one trader in London. Calyon's Chatwell added: "The sterling fixing is the best example of how unlikely it is that Libors will be pushed higher if the panel is enlarged. And it is reassuring to see that some of the banks which are setting higher rates have also reduced their rates."
(Reuters)
The dollar softens against the Euro
Posted by imdurrani Labels: International, US, World Currencies, world financeSaturday, June 20, 2009
LONDON: The dollar softened against the euro on Friday as investors showed more confidence in world economic prospects and were prepared to move out of the safe-haven US currency.
The single European currency in late day trade rose to 1.4012 dollars from 1.3901 dollars late Thursday in New York.
The dollar was at 96.18 yen against 96.55.
"The euro should continue to climb against the dollar as investor confidence is restored," said analysts at BNP Paribas bank.
They pointed to recent encouraging reports from the United States suggesting that a recovery may be starting to take hold in the world's largest economy.
On Thursday, the Conference Board's index of leading economic indicators, a measure of economic conditions in the coming months, rose 1.2 percent in May from the prior month. Most analysts had expected a rise of 1.0 percent.
As chances for a rebound in the United States strengthen, investors are emboldened to take positions in currencies seen as riskier than the dollar, notably the euro.
The euro also drew strength from recent stability on world financial markets, which further encourages investors to venture into currencies apart from the dollar.
"As the level of panic in financial markets is falling, traders are changing gears on buying currencies that attest to strength in the global economy," said Sumitomo Trust and Bank foreign exchange strategist Jitsuo Tachibana.
At the same time, other analysts cautioned that concerns over the health of US public finances, notably the country's massive budget deficit, were likely to cast a shadow over the recent encouraging data.
Washington will issue a record 104 billion dollars in new bonds next week and traders "will be nervously watching for how this jump in supply is absorbed with implications for the dollar and bond yields," NAB Capital strategists wrote in a research note to clients.
The auction comes just after President Barack Obama unveiled a financial overhaul that includes expanding the power of the Federal Reserve to oversee regulation on all risky finance firms or lenders.
Investors will also be waiting for the Fed's monetary policy meeting beginning next Tuesday for clues on the outlook for interest rates.
In London trade on Friday, the euro was changing hands at 1.4012 dollars against 1.3901 dollars late on Thursday, at 134.55 yen (134.23), 0.8466 pounds (0.8508) and 1.5084 Swiss francs (1.5099).
The dollar stood at 96.18 yen (96.55) and 1.0784 Swiss francs (1.0861).
The pound was at 1.6524 dollars (1.6331).
On the London Bullion Market, the price of gold fell to 935.25 dollars an ounce at the fixing from 940.50 dollars an ounce late on Thursday.
(AFP)
LONDON: The dollar softened against the euro on Friday as investors showed more confidence in world economic prospects and were prepared to move out of the safe-haven US currency.
The single European currency in late day trade rose to 1.4012 dollars from 1.3901 dollars late Thursday in New York.
The dollar was at 96.18 yen against 96.55.
"The euro should continue to climb against the dollar as investor confidence is restored," said analysts at BNP Paribas bank.
They pointed to recent encouraging reports from the United States suggesting that a recovery may be starting to take hold in the world's largest economy.
On Thursday, the Conference Board's index of leading economic indicators, a measure of economic conditions in the coming months, rose 1.2 percent in May from the prior month. Most analysts had expected a rise of 1.0 percent.
As chances for a rebound in the United States strengthen, investors are emboldened to take positions in currencies seen as riskier than the dollar, notably the euro.
The euro also drew strength from recent stability on world financial markets, which further encourages investors to venture into currencies apart from the dollar.
"As the level of panic in financial markets is falling, traders are changing gears on buying currencies that attest to strength in the global economy," said Sumitomo Trust and Bank foreign exchange strategist Jitsuo Tachibana.
At the same time, other analysts cautioned that concerns over the health of US public finances, notably the country's massive budget deficit, were likely to cast a shadow over the recent encouraging data.
Washington will issue a record 104 billion dollars in new bonds next week and traders "will be nervously watching for how this jump in supply is absorbed with implications for the dollar and bond yields," NAB Capital strategists wrote in a research note to clients.
The auction comes just after President Barack Obama unveiled a financial overhaul that includes expanding the power of the Federal Reserve to oversee regulation on all risky finance firms or lenders.
Investors will also be waiting for the Fed's monetary policy meeting beginning next Tuesday for clues on the outlook for interest rates.
In London trade on Friday, the euro was changing hands at 1.4012 dollars against 1.3901 dollars late on Thursday, at 134.55 yen (134.23), 0.8466 pounds (0.8508) and 1.5084 Swiss francs (1.5099).
The dollar stood at 96.18 yen (96.55) and 1.0784 Swiss francs (1.0861).
The pound was at 1.6524 dollars (1.6331).
On the London Bullion Market, the price of gold fell to 935.25 dollars an ounce at the fixing from 940.50 dollars an ounce late on Thursday.
(AFP)
Asian stocks move higher after week of losses
Posted by imdurrani Labels: Asia, International, world finance, world stocks| Saturday, June 20, 2009 |
| Hong Kong: Asian stocks moved higher Friday as bargain hunters closed in following a week of sell-offs, while some upbeat data out of the United States also gave markets a fillip. Hong Kong added 0.81 percent and Sydney 0.19 percent, breaking a four-day losing streak for both markets, while Tokyo was 0.85 percent higher. A lack of direction throughout the week, and concerns that the recent rally may have made many shares overpriced helped push regional indexes lower, which in turn led many dealers to move in on Friday. Sentiment was also boosted by a US index of leading indicators that forecasts conditions in the coming months, which surged for the second consecutive month. The Federal Reserve Bank of Philadelphia's index on mid-Atlantic manufacturing activity rose for the fourth month running, in an unexpectedly sharp gain to the highest level since September. The news also sent the Dow Jones up 0.69 percent. TOKYO: Up 0.85 percent. The Nikkei-225 rose 82.54 points to 9,786.26. HONG KONG: Up 0.81 percent. The Hang Seng Index closed up 144.27 points at 17,920.93. The benchmark index was down 5.1 percent this week, but still up 58 percent from the 2009 low of 11,344 hit on March 9. SYDNEY: Up 0.19 percent. The S&P/ASX 200 closed up 7.5 points at 3,899.6. The market rose for the first time in a week that was hit by falls in the resources sector and losses in other markets. SHANGHAI: Up 0.93 percent. The Shanghai Composite Index, which covers A and B shares, was up 26.59 points at 2,880.49. Investors shrugged off share supply worries after Beijing gave the go-ahead for its first IPO in nine months, dealers said. The key index gained five percent this week, breaking 11-month highs, and the upward trend was expected to continue as Beijing is not expected to launch large IPOs until it has tested the market with the smaller offerings. TAIPEI: Up 1.41 percent. The weighted index rose 86.62 points to 6,231.15. SEOUL: Up 0.55 percent. The KOSPI ended up 7.58 points at 1,383.34. Many investors remained on the sidelines due to a lack of strong upward momentum, dealers said. SINGAPORE: Up 1.61 percent. The Straits Times Index jumped 35.98 points to 2,273.18. Bargain hunters helped the market put an end to six days of losses. KUALA LUMPUR: Up 0.48 percent. The Kuala Lumpur Composite Index gained 5.09 points to 1,059.50. BANGKOK: Up 3.25 percent. The Stock Exchange of Thailand (SET) composite index rose 18.55 points to close at 588.98. The rise ended four days of losses. JAKARTA: Up 2.02 percent. The Jakarta Composite Index gained 39.48 points to 1,990.47. MANILA: Down 1.48 percent. The composite index fell 35.96 points to 2,398.30. "The market has been very overbought the last couple of weeks so this correction was expected by investors but it was a bit fast," said Gomer Tan of Regina Capital Development Corp. WELLINGTON: Down 0.50 percent. The NZX-50 fell 13.97 points to close at 2,784.27. MUMBAI: Up 1.80 percent. The 30-share Sensex rose 256.36 points to 14,521.89. (AFP) |
European stocks close higher
Posted by imdurrani Labels: Europe, International, world finance, world stocksSaturday, June 20, 2009
LONDON: European stock markets closed higher on Friday, with sentiment more positive after better-than-expected US data helped ease concerns over the economic outlook, dealers said.
They said US figures on Thursday showing an improvement in the employment picture and a pickup in a key regional industrial reading bolstered investors after a nervous few days worrying the worst of the slump might not be over.
At the same time, they said the markets are now most likely to consolidate the sharp gains made since early March than race ahead, with any bad news inevitably leading to fresh profit-taking.
In London, the FTSE 100 index of leading shares closed up 1.52 percent to 4,345.93 points. In Paris, the CAC 40 index gained 0.85 percent to 3,221.27 points but in Frankfurt, the DAX edged up 0.04 percent to 4,839.46 points. European dealers said that despite the gains, the tone remained somewhat cautious, with investors wanting to see more sustained evidence showing signs of a recovery.
On Wall Street, the Dow Jones Industrial Average was up 0.28 percent at around 1600 GMT, maintaining the upward momentum sparked by Thursday's economic data.
The "upbeat economic data on manufacturing and unemployment claims is carrying over and the markets are poised to finish out the week on a positive note," Charles Schwab & Co analysts wrote.
US trade was technical, however, dominated by position adjustment to account for the multiple expiry of futures and options contracts on the day which often distorts business.
Briefing.com's Patrick O'Hare noted that volumes have been low over the past two weeks and while this was likely reflected the traditional summer lull, "it has more to do with a wait-and-see attitude now that the 'easy money' has been made in the rally off the March low." Any Further gains will need greater volumes, he added.
"Markets are still debating how to interpret the most recent economic indicators," noted Herve Goulletquer of Calyon.
"The two main issues seem to be the precise timing of the expected sustainable recovery and the current value of market prices relative to this expected timetable." Elsewhere in Europe, Amsterdam rose 1.44 percent, Brussels put on 0.85 percent, Madrid jumped 2.10 percent, Milan added 0.59 percent and Swiss stocks gained 0.83 percent.
In Asian trade, Tokyo closed 0.85 percent higher, Hong Kong rose 0.81 percent and Sydney put on 0.19 percent, finishing in positive territory for the first time in several days as investors welcomed Thursday's US data.
(AFP)
Oil prices dip after jump above 72 dollars
Posted by imdurrani Labels: business finance, global economy, International, Oil prices, world financeSaturday, June 20, 2009
NEW YORK: Oil prices fell below 70 dollars on profit-taking on Friday after a brief rally spurred by hopes that the worst may be over for the ailing global economy.
Early gains were also supported by continuing attacks on oil facilities in Nigeria and concerns about political developments in Iran, OPEC's second largest producer, following disputed presidential elections there.
New York's main futures contract, light sweet crude for delivery in July, shed 1.82 dollars from Thursday's close to end at 69.55 dollars a barrel after climbing past 72 dollars.
In London trade, Brent North Sea crude for August delivery dropped 1.87 dollars to 69.19 dollars per barrel.
Traders said prices came under pressure ahead of Monday's expiry of the New York futures July contract.
"It put downward pressure into the close," said Phil Flynn of Alaron Trading.
Positive US data and stronger demand has driven the market in recent days, fueled also by unrest in key oil producing nations.
"We will be going into the weekend with some legitimate geopolitical concerns," said Olivier Jakob, analyst at Swiss-based research group Petromatrix.
"We will need to keep an Iranian risk premium for the weekend and to it we will add a Nigerian risk premium," he added.
Since the recession hit the global economy, concerns about geopolitical issues have rarely featured as a market driver, analysts at JPMorgan Commodity Research said in a note to clients. "But after a muted response to the disputed Iranian elections, and lethargy to ongoing Nigerian disruptions, there seems to be a more significant response," they said.
Iran's supreme leader Ayatollah Ali Khamenei on Friday called for an end to street protests over last week's disputed presidential election, siding with declared winner Mahmoud Ahmadinejad.
Making his first public appearance after daily protests over the official results, Khamenei ruled out any major fraud in the poll and warned that the defeated candidates would be held to account over any violence on the streets.
In Nigeria meanwhile, the country's main militant group said it destroyed early Friday a major pipeline supplying crude oil to Italian oil group Agip's Brass exports terminal.
On Thursday, the Movement for the Emancipation of Niger Delta (MEND) also claimed it destroyed a major crude oil pipeline belonging to Royal Dutch Shell as it stepped up a campaign against foreign oil companies in the country.
Unrest in the Niger Delta has reduced Nigeria's oil output sharply to 1.8 million barrels per day, according to the latest June report of the International Energy Agency, from 2.6 million barrels in 2006.
Oil prices touched multi-year lows of around 32 dollars in December as the economic slowdown crushed demand for energy but they have slowly clawed their way back since then.
(AFP)
NEW YORK: Oil prices fell below 70 dollars on profit-taking on Friday after a brief rally spurred by hopes that the worst may be over for the ailing global economy.
Early gains were also supported by continuing attacks on oil facilities in Nigeria and concerns about political developments in Iran, OPEC's second largest producer, following disputed presidential elections there.
New York's main futures contract, light sweet crude for delivery in July, shed 1.82 dollars from Thursday's close to end at 69.55 dollars a barrel after climbing past 72 dollars.
In London trade, Brent North Sea crude for August delivery dropped 1.87 dollars to 69.19 dollars per barrel.
Traders said prices came under pressure ahead of Monday's expiry of the New York futures July contract.
"It put downward pressure into the close," said Phil Flynn of Alaron Trading.
Positive US data and stronger demand has driven the market in recent days, fueled also by unrest in key oil producing nations.
"We will be going into the weekend with some legitimate geopolitical concerns," said Olivier Jakob, analyst at Swiss-based research group Petromatrix.
"We will need to keep an Iranian risk premium for the weekend and to it we will add a Nigerian risk premium," he added.
Since the recession hit the global economy, concerns about geopolitical issues have rarely featured as a market driver, analysts at JPMorgan Commodity Research said in a note to clients. "But after a muted response to the disputed Iranian elections, and lethargy to ongoing Nigerian disruptions, there seems to be a more significant response," they said.
Iran's supreme leader Ayatollah Ali Khamenei on Friday called for an end to street protests over last week's disputed presidential election, siding with declared winner Mahmoud Ahmadinejad.
Making his first public appearance after daily protests over the official results, Khamenei ruled out any major fraud in the poll and warned that the defeated candidates would be held to account over any violence on the streets.
In Nigeria meanwhile, the country's main militant group said it destroyed early Friday a major pipeline supplying crude oil to Italian oil group Agip's Brass exports terminal.
On Thursday, the Movement for the Emancipation of Niger Delta (MEND) also claimed it destroyed a major crude oil pipeline belonging to Royal Dutch Shell as it stepped up a campaign against foreign oil companies in the country.
Unrest in the Niger Delta has reduced Nigeria's oil output sharply to 1.8 million barrels per day, according to the latest June report of the International Energy Agency, from 2.6 million barrels in 2006.
Oil prices touched multi-year lows of around 32 dollars in December as the economic slowdown crushed demand for energy but they have slowly clawed their way back since then.
(AFP)
Asian Stocks Advance on U.S. Economic Reports
Posted by imdurrani Labels: Asia, business finance, International, world finance, world stocksFriday, June 19, 2009
Asian stocks rose, paring the MSCI Asia Pacific Index’s biggest weekly decline since March, as better-than-estimated U.S. economic reports boosted the dollar and Goldman Sachs Group Inc. upgraded Japanese banks.
Canon Inc., which gets 28 percent of its sales from the Americas, jumped 3.6 percent as a weaker yen lifted prospects for overseas earnings. WorleyParsons Ltd. climbed 6.7 percent, leading energy stocks higher, after forecasting “good growth” for fiscal 2009. Mitsubishi UFJ Financial Group Inc., the country’s biggest listed lender, climbed 3.4 percent after Goldman Sachs raised its recommendation to “buy.”
The MSCI Asia Pacific Index gained 0.8 percent to 101.43 as of 2:45 p.m. in Tokyo, with three stocks rising for every two that fell. The gauge has lost 3.6 percent this week, paring its rally from a five-year low on March 9 to 44 percent. The index is down 41 percent from its November 2007 record.
“It’s a tug of war between the bulls and bears,” said Matt Riordan, who helps manage about $3.2 billion at Paradice Investment Management in Sydney. “There’s the belief that this is the start of the upturn and that things will keep improving, and on the flip side that things have come too far too fast.”
Japan’s Nikkei 225 Stock Average rose 0.2 percent, paring earlier gains. Industrial-plant builder Chiyoda Corp. led the advance, rising 4.1 percent, after the Nikkei newspaper said the company won an order in Saudi Arabia. Elpida Memory Inc., Japan’s biggest maker of memory chips, jumped 3.4 percent after the Nikkei said the company may apply for funding from the Development Bank of Japan.
Treasuries Advance
Among stocks that fell, Jiangxi Copper Co. dropped 2.2 percent in Hong Kong after Zhejiang Honglei Copper Co. said prices of the metal are likely to fall. The Hang Seng Index gained 0.6 percent, while Singapore’s Straits Times Index climbed 1.3 percent.
Futures on the Standard & Poor’s 500 Index rose 0.2 percent, while Treasuries advanced as yields near the highest level in a week lured some investors.
The S&P 500 climbed 0.8 percent yesterday as the New York- based Conference Board said its leading economic index rose 1.2 percent last month, exceeding the 1 percent gain estimated by economists. The Federal Reserve Bank of Philadelphia’s general economic index jumped to the highest level in nine months.
(Bloomberg)
Asian stocks rose, paring the MSCI Asia Pacific Index’s biggest weekly decline since March, as better-than-estimated U.S. economic reports boosted the dollar and Goldman Sachs Group Inc. upgraded Japanese banks.
Canon Inc., which gets 28 percent of its sales from the Americas, jumped 3.6 percent as a weaker yen lifted prospects for overseas earnings. WorleyParsons Ltd. climbed 6.7 percent, leading energy stocks higher, after forecasting “good growth” for fiscal 2009. Mitsubishi UFJ Financial Group Inc., the country’s biggest listed lender, climbed 3.4 percent after Goldman Sachs raised its recommendation to “buy.”
The MSCI Asia Pacific Index gained 0.8 percent to 101.43 as of 2:45 p.m. in Tokyo, with three stocks rising for every two that fell. The gauge has lost 3.6 percent this week, paring its rally from a five-year low on March 9 to 44 percent. The index is down 41 percent from its November 2007 record.
“It’s a tug of war between the bulls and bears,” said Matt Riordan, who helps manage about $3.2 billion at Paradice Investment Management in Sydney. “There’s the belief that this is the start of the upturn and that things will keep improving, and on the flip side that things have come too far too fast.”
Japan’s Nikkei 225 Stock Average rose 0.2 percent, paring earlier gains. Industrial-plant builder Chiyoda Corp. led the advance, rising 4.1 percent, after the Nikkei newspaper said the company won an order in Saudi Arabia. Elpida Memory Inc., Japan’s biggest maker of memory chips, jumped 3.4 percent after the Nikkei said the company may apply for funding from the Development Bank of Japan.
Treasuries Advance
Among stocks that fell, Jiangxi Copper Co. dropped 2.2 percent in Hong Kong after Zhejiang Honglei Copper Co. said prices of the metal are likely to fall. The Hang Seng Index gained 0.6 percent, while Singapore’s Straits Times Index climbed 1.3 percent.
Futures on the Standard & Poor’s 500 Index rose 0.2 percent, while Treasuries advanced as yields near the highest level in a week lured some investors.
The S&P 500 climbed 0.8 percent yesterday as the New York- based Conference Board said its leading economic index rose 1.2 percent last month, exceeding the 1 percent gain estimated by economists. The Federal Reserve Bank of Philadelphia’s general economic index jumped to the highest level in nine months.
(Bloomberg)
World Bank sees faster China growth
Posted by imdurrani Labels: business finance, China, global economy, International, world financeFriday, June 19, 2009
BEIJING: Massive policy stimulus should keep China growing at a respectable rate this year and next, but a robust recovery is unlikely given global weakness and soft non-government investment, the World Bank said on Thursday. In a quarterly update, the bank raised its forecast for gross domestic product growth this year to 7.2 percent, still below Beijing's official target of 8.0 percent but up from the 6.5 percent it projected in March.
Growth in 2010 was likely to be just a bit stronger, at 7.7 percent, the report said. The bank expects China's foreign exchange reserves to grow by $218 billion this year, the smallest increase since 2005, after leaping by $419 billion in 2008 and $462 billion in 2007.
That is largely because the bank is now forecasting a whopping capital account deficit of $170 billion this year, driven by a variety of financial outflows including undisclosed transactions between the central bank and financial institutions and a growing stream of outbound foreign direct investment.
These outflows already totalled $109 billion in the first quarter, limiting the increase in FX reserves in the January-March period to just $8 billion. China's reserves were $1.95 trillion at the end of the first quarter, the world's largest stockpile. "There seems to have been an intention to let capital flow out of China in these various guises," Louis Kuijs, an economist in the World Bank's Beijing office, told a news conference.
He said such outflows would chime with China's oft-stated desire to diversify the country's foreign assets. Beijing is hunting in particular for energy and commodity investments. The forecast on reserves brings the World Bank broadly into line with those of private-sector economists. HSBC, for example, expects reserves to grow by $154 billion in 2009. The report welcomed an unfolding surge in government-influenced investment, triggered by a 4 trillion yuan ($585 billion) stimulus package announced in November.
"However, it is unlikely to lead to a rapid, broad-based recovery in China, given the current global environment and the subdued short-term prospects for market-based investment. China's economic growth is unlikely to rebound to a high single-digit pace before the world economy recovers to solid growth," it said.
A boom in bank lending in the first five months of the year would also support growth in coming quarters. While the full-year outcome might not meet the official target, it would be "very respectable" given the global setting, the report said. "On current projections it is not necessary, and probably not appropriate, to add more traditional fiscal stimulus in 2009," the bank said.
With its budget deficit set to leap to 4.9 percent of GDP this year from 0.4 percent in 2008, the government should instead keep some powder dry in case it is needed next year. Policymakers should also have the confidence to emphasise forward-looking policies and structural reforms to promote service-driven consumption and energy efficiency in the world's third-largest economy, the bank said.
(Reuters)
BEIJING: Massive policy stimulus should keep China growing at a respectable rate this year and next, but a robust recovery is unlikely given global weakness and soft non-government investment, the World Bank said on Thursday. In a quarterly update, the bank raised its forecast for gross domestic product growth this year to 7.2 percent, still below Beijing's official target of 8.0 percent but up from the 6.5 percent it projected in March.
Growth in 2010 was likely to be just a bit stronger, at 7.7 percent, the report said. The bank expects China's foreign exchange reserves to grow by $218 billion this year, the smallest increase since 2005, after leaping by $419 billion in 2008 and $462 billion in 2007.
That is largely because the bank is now forecasting a whopping capital account deficit of $170 billion this year, driven by a variety of financial outflows including undisclosed transactions between the central bank and financial institutions and a growing stream of outbound foreign direct investment.
These outflows already totalled $109 billion in the first quarter, limiting the increase in FX reserves in the January-March period to just $8 billion. China's reserves were $1.95 trillion at the end of the first quarter, the world's largest stockpile. "There seems to have been an intention to let capital flow out of China in these various guises," Louis Kuijs, an economist in the World Bank's Beijing office, told a news conference.
He said such outflows would chime with China's oft-stated desire to diversify the country's foreign assets. Beijing is hunting in particular for energy and commodity investments. The forecast on reserves brings the World Bank broadly into line with those of private-sector economists. HSBC, for example, expects reserves to grow by $154 billion in 2009. The report welcomed an unfolding surge in government-influenced investment, triggered by a 4 trillion yuan ($585 billion) stimulus package announced in November.
"However, it is unlikely to lead to a rapid, broad-based recovery in China, given the current global environment and the subdued short-term prospects for market-based investment. China's economic growth is unlikely to rebound to a high single-digit pace before the world economy recovers to solid growth," it said.
A boom in bank lending in the first five months of the year would also support growth in coming quarters. While the full-year outcome might not meet the official target, it would be "very respectable" given the global setting, the report said. "On current projections it is not necessary, and probably not appropriate, to add more traditional fiscal stimulus in 2009," the bank said.
With its budget deficit set to leap to 4.9 percent of GDP this year from 0.4 percent in 2008, the government should instead keep some powder dry in case it is needed next year. Policymakers should also have the confidence to emphasise forward-looking policies and structural reforms to promote service-driven consumption and energy efficiency in the world's third-largest economy, the bank said.
(Reuters)
Norway cuts interest rate to record low 1.25 percent
Posted by imdurrani Labels: business finance, Europe, global economy, International, world financeFriday, June 19, 2009
OSLO: Norway cut its key interest rate Wednesday by a quarter-point to a record low 1.25 percent, as the central bank said it saw no quick end to the economic crisis that has pushed the oil-rich country into a deeper recession than expected. "Uncertainty with regard to developments ahead is still high. So far, the fall in global activity has been more pronounced than expected," the bank's deputy governor, Jan Qvigstad said in a statement, explaining the bank's seventh rate cut since October.
The interest rate is now at its lowest level since the central bank gained its independence in 1983. A majority of economists had expected the bank to keep the interest rate unchanged amid signs that the Norwegian economy, which has been relatively spared from the crisis thanks to its oil wealth, was beginning to see a recovery.
Household consumption, property prices and inflation have recently bounced back, with oil prices on the rise and oil sector investments looking promising in the Scandinavian country, one of the world's biggest exporters of black gold.
But the central bank focused on the continued deterioration in global momentum and revised downward its growth forecast, predicting the Norwegian economy would contract by 1.5 percent this year compared to the 1.0 percent foreseen in March. The figures concern Norway's mainland gross domestic product (GDP), which excludes the oil and gas sectors and the shipping industry. It is considered a better indicator of the country's economic health, since the oil and gas sector represents 25 percent of its economic growth but employs only about one percent of its working-age population.
While analysts had expected the central bank to soon begin raising its rates, the bank suggested it saw things differently and may even lower them further. "The key policy rate can remain close to 1.0 percent for a period ahead," it said.
"The global economic downturn continues. Activity is also contracting in Norway and unemployment is rising," it added. Unemployment remains relatively low in Norway compared to other western countries but has risen sharply in recent months and was at 2.6 percent in May.
(AFP)
OSLO: Norway cut its key interest rate Wednesday by a quarter-point to a record low 1.25 percent, as the central bank said it saw no quick end to the economic crisis that has pushed the oil-rich country into a deeper recession than expected. "Uncertainty with regard to developments ahead is still high. So far, the fall in global activity has been more pronounced than expected," the bank's deputy governor, Jan Qvigstad said in a statement, explaining the bank's seventh rate cut since October.
The interest rate is now at its lowest level since the central bank gained its independence in 1983. A majority of economists had expected the bank to keep the interest rate unchanged amid signs that the Norwegian economy, which has been relatively spared from the crisis thanks to its oil wealth, was beginning to see a recovery.
Household consumption, property prices and inflation have recently bounced back, with oil prices on the rise and oil sector investments looking promising in the Scandinavian country, one of the world's biggest exporters of black gold.
But the central bank focused on the continued deterioration in global momentum and revised downward its growth forecast, predicting the Norwegian economy would contract by 1.5 percent this year compared to the 1.0 percent foreseen in March. The figures concern Norway's mainland gross domestic product (GDP), which excludes the oil and gas sectors and the shipping industry. It is considered a better indicator of the country's economic health, since the oil and gas sector represents 25 percent of its economic growth but employs only about one percent of its working-age population.
While analysts had expected the central bank to soon begin raising its rates, the bank suggested it saw things differently and may even lower them further. "The key policy rate can remain close to 1.0 percent for a period ahead," it said.
"The global economic downturn continues. Activity is also contracting in Norway and unemployment is rising," it added. Unemployment remains relatively low in Norway compared to other western countries but has risen sharply in recent months and was at 2.6 percent in May.
(AFP)
French tyre maker Michelin to shed 2,800 jobs: company
Posted by imdurrani Labels: Europe, global economy, International, world financeFriday, June 19, 2009
CLERMONT-FERRAND: French tyre maker Michelin said on Wednesday it would shed 2,800 jobs through early retirement and voluntary redundancies in the next three years, sparking concern from the government. The company said it will also shut down one of its plants in northern France at Noyelles-les-Seclin but will boost research and development funding at its Clermont-Ferrand plant by more than 100 million euros (139 million dollars).
"We're in a logic of consolidation in France and we want to continue to produce amid very aggressive competition," Thierry Chiche, Michelin's industrial director for Europe, told AFP. France's junior employment minister Laurent Wauquiez told reporters: "It's clearly a report that worries us a lot." He added that the government would ensure "that no-one is left by the wayside." The downsizing will include 1,093 job cuts from 2010 and a programme to allow 1,800 voluntary redundancies over the next three years, the company said, insisting that none of the planned redundancies would be forced.
The company said it also planned however to hire 500 people a year over the next three years in order to ensure a turnover in the workforce. Michelin rival Continental earlier announced the closure of its factory in Clairoix, north of Paris, with the loss of 1,120 jobs, while Goodyear Dunlop has laid off 820 workers at its Amiens plant in the north.
(AFP)
CLERMONT-FERRAND: French tyre maker Michelin said on Wednesday it would shed 2,800 jobs through early retirement and voluntary redundancies in the next three years, sparking concern from the government. The company said it will also shut down one of its plants in northern France at Noyelles-les-Seclin but will boost research and development funding at its Clermont-Ferrand plant by more than 100 million euros (139 million dollars).
"We're in a logic of consolidation in France and we want to continue to produce amid very aggressive competition," Thierry Chiche, Michelin's industrial director for Europe, told AFP. France's junior employment minister Laurent Wauquiez told reporters: "It's clearly a report that worries us a lot." He added that the government would ensure "that no-one is left by the wayside." The downsizing will include 1,093 job cuts from 2010 and a programme to allow 1,800 voluntary redundancies over the next three years, the company said, insisting that none of the planned redundancies would be forced.
The company said it also planned however to hire 500 people a year over the next three years in order to ensure a turnover in the workforce. Michelin rival Continental earlier announced the closure of its factory in Clairoix, north of Paris, with the loss of 1,120 jobs, while Goodyear Dunlop has laid off 820 workers at its Amiens plant in the north.
(AFP)
Fiat eyes larger share of Indian car market
Posted by imdurrani Labels: Asia, global economy, International, investment, world financeFriday, June 19, 2009
NEW DELHI: Italian car maker Fiat on Wednesday unveiled plans to increase its share of India's growing automobile market and hinted it may also offer Chrysler models to the country's middle class. Launching the Grande Punto in India, Fiat-India CEO Rajiv Kapoor told reporters he hoped the hatchback would help the company "capture a market share of 11-12 percent."
The car has been priced at 400,000 rupees (8,900 dollars) in a move designed to challenge the dominance of mid-sized models of Maruti Suzuki. Kapoor said Fiat projected a monthly sale of 2,500 units of the four-door Punto, which has sold 1.6 million units since its 2005 launch in Europe.
Fiat, which recently sealed a deal to sell bankrupt Chrysler's top assets, also raised the possibility of offering Chrysler models to the Indian market in future. "Why not?" chief operating officer Silverio Bonfiglioli replied to reporters' questions.
(AFP)
NEW DELHI: Italian car maker Fiat on Wednesday unveiled plans to increase its share of India's growing automobile market and hinted it may also offer Chrysler models to the country's middle class. Launching the Grande Punto in India, Fiat-India CEO Rajiv Kapoor told reporters he hoped the hatchback would help the company "capture a market share of 11-12 percent."
The car has been priced at 400,000 rupees (8,900 dollars) in a move designed to challenge the dominance of mid-sized models of Maruti Suzuki. Kapoor said Fiat projected a monthly sale of 2,500 units of the four-door Punto, which has sold 1.6 million units since its 2005 launch in Europe.
Fiat, which recently sealed a deal to sell bankrupt Chrysler's top assets, also raised the possibility of offering Chrysler models to the Indian market in future. "Why not?" chief operating officer Silverio Bonfiglioli replied to reporters' questions.
(AFP)
India's WPI falls for first time in three decades
Posted by imdurrani Labels: Asia, global economy, International, world financeFriday, June 19, 2009
NEW DELHI: India's wholesale price index fell in early June on an annual basis for the first time in at least three decades, but analysts said this did not signal a weakening economy and would not prod the central bank to cut rates further. The central bank and analysts had forecast negative trends in the price index mainly for statistical reasons, rather than calling it deflation that follows a sharp contraction in demand.
The widely watched wholesale price index fell 1.61 percent in the 12 months to June 6, the government said, sharply below previous week's rise of 0.13 percent. The drop was bigger than 1.52 percent median forecast by analysts. "This is due to the high statistical base, but going forward inflationary risks are already in sight," said Rupa Rege Nitsure, chief economist at Bank of Baroda. The price index has been rising on a week-on-week basis since March reflecting a pickup in demand and ensuing price pressures in Asia's third largest economy.
"The inflation momentum has been picking up and a continued rise in commodity prices will exert upward pressure on input costs," said Sonal Varma, an economist with Nomura. India's factory output unexpectedly rose in April, reviving hopes the economy turned a corner and sparked speculation the central bank may not cut rates again in near future.
The Indian economy expanded 6.7 percent in the 2008/09 year ended in March, slower than a scorching 9 percent in the previous year but faster than many other emerging economies, but policy makers say it could rebound to at least 7 percent this year.
Analysts said the annual fall in WPI had little implication for monetary policy, and firm consumer price inflation, which stood at 8.7 percent in April, has kept policy makers cautious. "I think monetary policy will gradually start building into the inflationary expectation some time around October essentially because of rising commodity prices," said Jyotinder Kaur, economist at HDFC Bank. India's central bank has cut its lending rate by 4.25 percentage points between October and April, while government has slashed duties and increased public spending to stimulate the economy hit by the global slump and falling domestic demand.
(Reuters)
NEW DELHI: India's wholesale price index fell in early June on an annual basis for the first time in at least three decades, but analysts said this did not signal a weakening economy and would not prod the central bank to cut rates further. The central bank and analysts had forecast negative trends in the price index mainly for statistical reasons, rather than calling it deflation that follows a sharp contraction in demand.
The widely watched wholesale price index fell 1.61 percent in the 12 months to June 6, the government said, sharply below previous week's rise of 0.13 percent. The drop was bigger than 1.52 percent median forecast by analysts. "This is due to the high statistical base, but going forward inflationary risks are already in sight," said Rupa Rege Nitsure, chief economist at Bank of Baroda. The price index has been rising on a week-on-week basis since March reflecting a pickup in demand and ensuing price pressures in Asia's third largest economy.
"The inflation momentum has been picking up and a continued rise in commodity prices will exert upward pressure on input costs," said Sonal Varma, an economist with Nomura. India's factory output unexpectedly rose in April, reviving hopes the economy turned a corner and sparked speculation the central bank may not cut rates again in near future.
The Indian economy expanded 6.7 percent in the 2008/09 year ended in March, slower than a scorching 9 percent in the previous year but faster than many other emerging economies, but policy makers say it could rebound to at least 7 percent this year.
Analysts said the annual fall in WPI had little implication for monetary policy, and firm consumer price inflation, which stood at 8.7 percent in April, has kept policy makers cautious. "I think monetary policy will gradually start building into the inflationary expectation some time around October essentially because of rising commodity prices," said Jyotinder Kaur, economist at HDFC Bank. India's central bank has cut its lending rate by 4.25 percentage points between October and April, while government has slashed duties and increased public spending to stimulate the economy hit by the global slump and falling domestic demand.
(Reuters)
India's WPI falls for first time in three decades
Posted by imdurrani Labels: Asia, global economy, International, world financeFriday, June 19, 2009
NEW DELHI: India's wholesale price index fell in early June on an annual basis for the first time in at least three decades, but analysts said this did not signal a weakening economy and would not prod the central bank to cut rates further. The central bank and analysts had forecast negative trends in the price index mainly for statistical reasons, rather than calling it deflation that follows a sharp contraction in demand.
The widely watched wholesale price index fell 1.61 percent in the 12 months to June 6, the government said, sharply below previous week's rise of 0.13 percent. The drop was bigger than 1.52 percent median forecast by analysts. "This is due to the high statistical base, but going forward inflationary risks are already in sight," said Rupa Rege Nitsure, chief economist at Bank of Baroda. The price index has been rising on a week-on-week basis since March reflecting a pickup in demand and ensuing price pressures in Asia's third largest economy.
"The inflation momentum has been picking up and a continued rise in commodity prices will exert upward pressure on input costs," said Sonal Varma, an economist with Nomura. India's factory output unexpectedly rose in April, reviving hopes the economy turned a corner and sparked speculation the central bank may not cut rates again in near future.
The Indian economy expanded 6.7 percent in the 2008/09 year ended in March, slower than a scorching 9 percent in the previous year but faster than many other emerging economies, but policy makers say it could rebound to at least 7 percent this year.
Analysts said the annual fall in WPI had little implication for monetary policy, and firm consumer price inflation, which stood at 8.7 percent in April, has kept policy makers cautious. "I think monetary policy will gradually start building into the inflationary expectation some time around October essentially because of rising commodity prices," said Jyotinder Kaur, economist at HDFC Bank. India's central bank has cut its lending rate by 4.25 percentage points between October and April, while government has slashed duties and increased public spending to stimulate the economy hit by the global slump and falling domestic demand.
(Reuters)
NEW DELHI: India's wholesale price index fell in early June on an annual basis for the first time in at least three decades, but analysts said this did not signal a weakening economy and would not prod the central bank to cut rates further. The central bank and analysts had forecast negative trends in the price index mainly for statistical reasons, rather than calling it deflation that follows a sharp contraction in demand.
The widely watched wholesale price index fell 1.61 percent in the 12 months to June 6, the government said, sharply below previous week's rise of 0.13 percent. The drop was bigger than 1.52 percent median forecast by analysts. "This is due to the high statistical base, but going forward inflationary risks are already in sight," said Rupa Rege Nitsure, chief economist at Bank of Baroda. The price index has been rising on a week-on-week basis since March reflecting a pickup in demand and ensuing price pressures in Asia's third largest economy.
"The inflation momentum has been picking up and a continued rise in commodity prices will exert upward pressure on input costs," said Sonal Varma, an economist with Nomura. India's factory output unexpectedly rose in April, reviving hopes the economy turned a corner and sparked speculation the central bank may not cut rates again in near future.
The Indian economy expanded 6.7 percent in the 2008/09 year ended in March, slower than a scorching 9 percent in the previous year but faster than many other emerging economies, but policy makers say it could rebound to at least 7 percent this year.
Analysts said the annual fall in WPI had little implication for monetary policy, and firm consumer price inflation, which stood at 8.7 percent in April, has kept policy makers cautious. "I think monetary policy will gradually start building into the inflationary expectation some time around October essentially because of rising commodity prices," said Jyotinder Kaur, economist at HDFC Bank. India's central bank has cut its lending rate by 4.25 percentage points between October and April, while government has slashed duties and increased public spending to stimulate the economy hit by the global slump and falling domestic demand.
(Reuters)
Japan's manufacturers grow less gloomy
Posted by imdurrani Labels: Asia, global economy, International, world financeFriday, June 19, 2009
TOKYO: Japanese manufacturers have grown much less gloomy about business over the last month, a Reuters poll showed, but consumer reluctance to spend has reinforced concerns the recovery from a deep recession will be slow. The survey may point to a healthy rebound in the quarterly Bank of Japan tankan survey due out on July 1 from a record low hit in the first quarter, when businesses were reeling due to sliding global demand and a severe squeeze in corporate funding.
But any improvement would come from a very low base and is unlikely to prompt the BoJ into ending its unconventional steps aimed at easing corporate funding strains, analysts say. "Business sentiment may improve sharply and capital spending plans may be revised up in the BoJ tankan," said Naoki Iizuka, senior economist at Mizuho Securities.
Signs that the worst of the recession has passed have led to a global debate about when policy makers should cut stimulus spending and exit the unconventional measures they implemented in the eye of the global financial storm. Rising exports and industrial output have fuelled talk that the world's No 2 economy is over the worst, and that fed into a much higher reading in the Reuters Tankan for both manufacturers and the service sector.
Manufacturers and non-manufacturers expect conditions to improve more in the next three months, the survey showed, but the upbeat tone is partly due to government stimulus spending at home and abroad, raising questions about whether demand for Japanese goods will last.
The Reuters Tankan's index of manufacturer sentiment rose 19 points from May to minus 50, and was up 28 points from a record low hit three months ago. The headline figure has around a 95 percent correlation with the influential BoJ tankan. Confidence among non-manufacturers stood at minus 31 in the Reuters survey, up from a record low of minus 44 in May and 6 points up from three months ago.
(Reuters)
TOKYO: Japanese manufacturers have grown much less gloomy about business over the last month, a Reuters poll showed, but consumer reluctance to spend has reinforced concerns the recovery from a deep recession will be slow. The survey may point to a healthy rebound in the quarterly Bank of Japan tankan survey due out on July 1 from a record low hit in the first quarter, when businesses were reeling due to sliding global demand and a severe squeeze in corporate funding.
But any improvement would come from a very low base and is unlikely to prompt the BoJ into ending its unconventional steps aimed at easing corporate funding strains, analysts say. "Business sentiment may improve sharply and capital spending plans may be revised up in the BoJ tankan," said Naoki Iizuka, senior economist at Mizuho Securities.
Signs that the worst of the recession has passed have led to a global debate about when policy makers should cut stimulus spending and exit the unconventional measures they implemented in the eye of the global financial storm. Rising exports and industrial output have fuelled talk that the world's No 2 economy is over the worst, and that fed into a much higher reading in the Reuters Tankan for both manufacturers and the service sector.
Manufacturers and non-manufacturers expect conditions to improve more in the next three months, the survey showed, but the upbeat tone is partly due to government stimulus spending at home and abroad, raising questions about whether demand for Japanese goods will last.
The Reuters Tankan's index of manufacturer sentiment rose 19 points from May to minus 50, and was up 28 points from a record low hit three months ago. The headline figure has around a 95 percent correlation with the influential BoJ tankan. Confidence among non-manufacturers stood at minus 31 in the Reuters survey, up from a record low of minus 44 in May and 6 points up from three months ago.
(Reuters)
Asian Stocks Fall on U.S. Economy Concern
Posted by imdurrani Labels: global economy, International, International business, world stocksThursday, June 18, 2009
Asian stocks declined, dragging the MSCI Asia Pacific Index to a three-week low, as concerns about the strength of the U.S. economy dented prospects for export earnings.
Honda Motor Co., which gets more than half its sales in North America, dropped 3.6 percent as the dollar traded near a two-week low against the yen. Mitsubishi UFJ Financial Group Inc. sank 3.3 percent, pacing declines among banks, after Standard & Poor’s cut credit ratings on 18 U.S. lenders. Rio Tinto Group, the world’s third-largest mining company, slumped 8.9 percent as it began a $15.2 billion share sale.
The MSCI Asia Pacific Index lost 1.4 percent to 100.62 as of 2:43 p.m. in Tokyo, set to close at its lowest since May 28. A 43 percent rally from a five-year low on March 9 has taken valuations of the gauge’s stocks to the highest since September.
“Investors are using the weaker dollar as an excuse to take profit as valuations look stretched following the recent rally,” said Michiya Tomita, who helps manage $51 billion at Mitsubishi UFS Asset Management Co. in Hong Kong. “Any correction will be short-lived as long-term fund managers are still sitting on the sidelines with their cash.”
Japan’s Nikkei 225 Stock Average fell 1.7 percent to 9,671.62 paced by Sekisui House Ltd. after the homebuilder was downgraded at Credit Suisse Group AG. Hong Kong’s Hang Seng Index sank 2 percent.
The Shanghai Composite Index gained 1.4 percent, led by China Shenhua Energy Co., which climbed 4.1 percent as the World Bank raised its growth forecast for the country’s economy.
Sweeping Overhaul
Futures on the Standard & Poor’s 500 Index gained 0.3 percent. The gauge dropped 0.1 percent yesterday as President Barack Obama proposed the most sweeping overhaul of the U.S. financial regulatory system in 75 years. The plan includes an agency for monitoring consumer financial products and bringing hedge and private equity funds under federal scrutiny.
The dollar weakened against currencies in Japan, Australia, Singapore and Malaysia before a U.S. report that economists predict will show the Philadelphia region’s manufacturing industry shrank for a ninth month. Mortgage applications dropped 16 percent last week to the lowest level since November, the Mortgage Bankers Association said yesterday.
Honda declined 3.6 percent to 2,580 yen while Sony Corp., maker of the PlayStation 3 game machine, sank 3.7 percent to 2,460 yen as the yen strengthened to as much as 95.52 per dollar, a level not seen since June 3. Makers of electronics and cars accounted for 34 percent of the Topix Index’s 1.6 percent drop today, Bloomberg data show.
(Bloomberg)
Asian stocks declined, dragging the MSCI Asia Pacific Index to a three-week low, as concerns about the strength of the U.S. economy dented prospects for export earnings.
Honda Motor Co., which gets more than half its sales in North America, dropped 3.6 percent as the dollar traded near a two-week low against the yen. Mitsubishi UFJ Financial Group Inc. sank 3.3 percent, pacing declines among banks, after Standard & Poor’s cut credit ratings on 18 U.S. lenders. Rio Tinto Group, the world’s third-largest mining company, slumped 8.9 percent as it began a $15.2 billion share sale.
The MSCI Asia Pacific Index lost 1.4 percent to 100.62 as of 2:43 p.m. in Tokyo, set to close at its lowest since May 28. A 43 percent rally from a five-year low on March 9 has taken valuations of the gauge’s stocks to the highest since September.
“Investors are using the weaker dollar as an excuse to take profit as valuations look stretched following the recent rally,” said Michiya Tomita, who helps manage $51 billion at Mitsubishi UFS Asset Management Co. in Hong Kong. “Any correction will be short-lived as long-term fund managers are still sitting on the sidelines with their cash.”
Japan’s Nikkei 225 Stock Average fell 1.7 percent to 9,671.62 paced by Sekisui House Ltd. after the homebuilder was downgraded at Credit Suisse Group AG. Hong Kong’s Hang Seng Index sank 2 percent.
The Shanghai Composite Index gained 1.4 percent, led by China Shenhua Energy Co., which climbed 4.1 percent as the World Bank raised its growth forecast for the country’s economy.
Sweeping Overhaul
Futures on the Standard & Poor’s 500 Index gained 0.3 percent. The gauge dropped 0.1 percent yesterday as President Barack Obama proposed the most sweeping overhaul of the U.S. financial regulatory system in 75 years. The plan includes an agency for monitoring consumer financial products and bringing hedge and private equity funds under federal scrutiny.
The dollar weakened against currencies in Japan, Australia, Singapore and Malaysia before a U.S. report that economists predict will show the Philadelphia region’s manufacturing industry shrank for a ninth month. Mortgage applications dropped 16 percent last week to the lowest level since November, the Mortgage Bankers Association said yesterday.
Honda declined 3.6 percent to 2,580 yen while Sony Corp., maker of the PlayStation 3 game machine, sank 3.7 percent to 2,460 yen as the yen strengthened to as much as 95.52 per dollar, a level not seen since June 3. Makers of electronics and cars accounted for 34 percent of the Topix Index’s 1.6 percent drop today, Bloomberg data show.
(Bloomberg)
World Bank Raises China 2009 Growth Forecast to 7.2%
Posted by imdurrani Labels: China, global economy, International, International business, world economyThursday, June 18, 2009
The World Bank raised its growth forecast for China this year and advised policy makers to delay until 2010 any additional stimulus plan to boost the world’s third-largest economy.
China’s economy will expand 7.2 percent in 2009 from a year earlier, up from a 6.5 percent forecast in March, the Washington-based lender said in a quarterly report released today in Beijing. Stocks gained after the announcement.
The World Bank joins Goldman Sachs Group Inc., Morgan Stanley and UBS AG. in raising growth forecasts this year after a 4 trillion yuan ($585 billion) stimulus package triggered record loans and surging investment. The lender said it’s “too early” to say there is a sustained recovery, citing the economy’s dependence on government spending and echoing a State Council caution yesterday against excessive optimism.
It’s “not necessary, and probably not appropriate” for China to add fiscal stimulus this year, the World Bank said. Consumption is likely to slow, pushing down wages and employment, and the nation should retain room for stimulus in 2010, in case the global economy takes a turn for the worse, the bank said.
The Shanghai Composite Index rose 0.9 percent as of the 11:30 a.m. local time break in trading. Industrial & Commercial Bank of China Ltd. climbed 2 percent.
‘Critical’ Phase
Gross domestic product grew 6.1 percent in the first quarter this year from a year earlier, the least since 1999, as exports slid because of the global recession. The economy is in a “critical” phase, the State Council said yesterday, warning that a recovery is not yet on solid foundations.
“Overall growth prospects have improved somewhat, compared to three months ago, but with little carry-over into 2010,” the World Bank said. “The massive monetary impulse of the first five months will support economic growth in the coming quarters.”
Goldman Sachs forecasts an 8.3 percent expansion this year, Morgan Stanley estimates 7 percent and UBS predicts growth of 7.5 percent.
“I don’t think China will see a V-shaped recovery back to high single-digit growth rates,” said Louis Kuijs, the World Bank’s senior economist for China in Beijing. “The impact of the policy stimulus next year can realistically not be as large as it has been this year.”
(Bloomberg)
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