Friday, September 11, 2009
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IMF tells India not to raise policy rate
Posted by imdurrani Labels: Asia, IMF, India, world financeISLAMABAD: Prime Minister Syed Yusuf Raza Gilani on Sunday said the United States should channelise disbursement of its financial assistance to Pakistan through the existing mechanism of the government of Pakistan. He underlined the fact that disbursement through NGOs involves out of proportion administrative expenses, sometimes to the extant of 35 - 40% and hence, actual amount spent on the welfare of the public gets drastically reduced. The Prime Minister was talking to the US Deputy Secretary of State for Resources and Management, Jacob J. Lew who accompanied by the Acting Administrator of USAID, Alouso L. Fulgham called on him here at the PM House on Sunday evening. Prime Minister Gilani suggested that the US Deputy Secretary of State should have detailed meetings with the Minister and the Secretary of Finance to work out mutually agreed modalities on the procedure of financial assistance. He pointed out that the Benazir Income Support Programme, Higher Education Commission, the existing basic education and the basic health units in Pakistan should be considered for the US assistance for education, health and poverty alleviation sectors.Monday, September 07, 2009
Japan suspends aid to Third World
Posted by imdurrani Labels: Asia, global finance, pakistan, world financeMonday, September 07, 2009 Visit Finance.KalPoint.Com for latest financial stories...
The channel said that Karachi Circular Railway (KCR) project is in jeopardy following the Japanese government decision.
Oil prices drop after US jobs data
Posted by imdurrani Labels: global economy, Oil prices, world financeSaturday, September 05, 2009
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Saturday, September 05, 2009 Gold steadied below $990 an ounce on Friday, consolidating a potent two-day rally that took the market to within a whisker of $1,000, with inflation concerns and jitters over stock market gains stoking investor interest. Buying of gold exchange-traded funds picked up, with holdings of the largest, New York’s SPDR Gold Trust, posting its biggest one-day percentage rise since March. India is a major importer of gold. Visit Finance.KalPoint.Com for latest financial stories... 
International gold prices may touch $1,200 an ounce by the end of December, 2009, a top trade official said on Friday. “Investment demands by gold exchange-traded funds and China buying more gold reserves will help achieve this target,” said Suresh Hundia, president of the Bombay Bullion Association on the sidelines of a conference.
Thursday, September 03, 2009
Yen and dollar rise
Posted by imdurrani Labels: Asia, forex trading, US, World Currencies, world finance, world forex
The decline came despite upbeat economic news from the United States and euro zone as well as a stabilisation in Chinese shares after a rout on Monday. The hedge fund talk "is a huge driver" of currency markets, said Dan Cook, senior market analyst at IG Markets Inc in Chicago. "When you have data like we had but the Dow drops, people are running for that safe haven." In late afternoon trading in New York the dollar index, which tracks a basket of six major currencies, was up 0.7 percent at 78.747, rebounding from a session low of 77.944, according to Reuters data.
The dollar was down 0.1 percent against the yen at 92.89 yen, above Monday's seven-week low of 92.53, according to Reuters data. But the yen was up 1 percent against the Canadian dollar, 0.7 percent against the Swiss franc, 0.9 percent against the euro and 0.8 percent against the pound. The euro was down 0.8 percent against the dollar at $1.4212, well below a session high of $1.4377.
The US manufacturing sector expanded in August for the first time in more than a year and a half. The Institute for Supply Management's index of national factory activity rose to 52.9 from 48.9 in July. Separate data showed pending sales of previously owned US homes raced to a two-year high in July, further evidence the housing market was on a steady recovery path.
"Clearly, the US data is surprising to the upside," said Jack Iles, senior portfolio manager who helps manage $2.5 billion assets at MFC Global Investment Management in Boston. But despite a batch of upbeat US economic numbers, major currencies remained in ranges as investors continued to debate about the outlook for the global economy, analysts said.
NEW DELHI: India s exports fell for a 10th straight month in July as the country s key Western markets remained in the grip of the global economic downturn. Shipments overseas slid 28.4 percent to 13.6 billion dollars, data released Tuesday by the Commerce Ministry showed, while imports tumbled 37.1 percent to 31.2 billion dollars. The lower import figure mainly reflects lower oil costs due to the slide in crude prices, but it also shows the domestic economy remains sluggish. Exports for the first four months of the financial year to March 2010 were down 34.1 percent from a year earlier at 49.7 billion dollars. The data come days after India announced plans to boost trade with emerging markets in a bid to wean itself off dependence on economically struggling developed nations that buy more than 60 percent of its exports. The government has also announced a slew of steps such as cheaper finance, better infrastructure, tax relief and reduced transaction costs to spur shipments. The country is aiming for export growth of 15 percent over two years to achieve sales of 200 billion dollars by March 2011, up from 168 billion dollars for the year to March 2009. Wednesday, September 02, 2009
Commerce Minister Anand Sharma said he would be happy to sustain exports this year at last year s levels but economists say they are likely to contract by 10 percent. The government originally set a target of 200 billion dollars last year but was forced to lower that when the global economic crisis hit. Unlike China, where overseas sales have been a main growth driver, Shipments account for around 15 percent of gross domestic product in India s still relatively inward-looking economy.
Wednesday, September 02, 2009
Pakistan emerges as bridge builder in climate change talks
Posted by imdurrani Labels: International, pakistan, world financeAs 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
IMF chief sees unemployment rising in 2011
Posted by imdurrani Labels: IMF, world economy, world finance
"We must continue to work hard to ensure that a sustainable recovery comes indeed in the first half of 2010. But, despite the recovery, unemployment will continue to rise in 2010 and perhaps in the more developed economies even in 2011," he said in an interview with the Greek Kathimerini newspaper.
He warned against taking the recovery for granted, saying risk still remained. "The basic short-term risk is for the recovery to stop, something that could be caused by a series of negative developments," he said.
"A possible premature exit from a loose fiscal and monetary policy constitute a risk, if fiscally supported growth is erroneously seen as a sustained recovery." He said another key concern is that higher oil prices could hinder recovery.
Thursday, August 27, 2009
Oil price hits 10-month peak at $75
Posted by imdurrani Labels: global economy, Oil prices, world economy, world financeThursday, August 2 7, 2009 LONDON: World oil prices briefly struck 75 dollars per barrel on Tuesday for the first time in ten months, as traders reacted to rebounding consumer confidence in key energy consumer the United States. The rebound in confidence was stronger than the 47.9 reading that most analysts had expected. The index had hit an eight-month peak of 54.8 in May. The August data had a great deal of impact and was probably responsible for the whole move higher, Hart added. Consumer confidence is very closely tied to the US economy — 70 percent of the economy is driven by consumer spending and if the consumer is feeling better then that bodes well for the economy, which is good for energy demand. Crude futures had already powered to 10-month peaks on Monday amid growing hopes for global economic recovery and China s strong oil data. Markets also found a springboard from US Federal Reserve chief Ben Bernanke s positive comments on Friday about the outlook for recovery from global recession. Fed Chairman Ben Bernanke, who was reappointed to a second four-year term on Tuesday, had said last week that prospects for growth appear good despite financial market strains. European Central Bank boss Trichet also predicted last week that the world s economic free fall was over. Oil prices have slumped since striking record highs above 147 dollars in July 2008 as a vicious global recession slashed energy demand. They have since clawed back ground on recovery hopes. The market also got a major boost on Monday from data out of China — the world s second-biggest energy consuming nation after the United States. Chinese demand for oil increased for the fourth consecutive month in July, said analysts at JBC Energy in Vienna. Year-on-year, oil consumption — excluding stock changes — was up by some 3.5 percent, they noted. Traders will switch their focus on Wednesday to the weekly oil inventories report from the US government s Department of Energy. Visit Finance.KalPoint.Com for latest financial stories...
In late afternoon trade here, New York s main contract, light sweet crude for October delivery, spiked to 75.00 dollars exactly — reaching a level last seen in October 2008 before the global recession. However, the contract later pulled back to 73.45 dollars, down 80 cents from Monday s closing level. And London Brent North Sea oil for October fell 42 cents to 73.95 dollars a barrel. It was very much a knee-jerk reaction, said Hanson Westhouse analyst David Hart, adding that there was a lack of buying interest to maintain prices above the key 75-dollar level. The logical conclusion to draw is that prices are going to go higher, Hart added. US consumer confidence rose more than expected in August after two consecutive months of declines, buoyed by a jump in recovery hopes for the coming months, the Conference Board announced on Tuesday. The business research firm said its consumer confidence index climbed to 54.1 in August from an upwardly revised 47.4 in July.
"Stock markets across Europe rose for the third day in a row on Wednesday after better then expected Intel results after the bell last night," said City Index market analyst Nick Serff, referring to the US technology firm.
London's FTSE 100 gained 2.57 percent to close at 4,346.46 points.
Frankfurt's DAX soared 3.07 percent to close at 4,928.44 points and in Paris the CAC 40 rose 2.90 percent to 3,171.27.
The DJ Euro Stoxx 50 index of leading eurozone shares surged by 3.24 percent to 2,447.58 points.
Wall Street shares shot higher Wednesday after a stronger-than-expected quarterly report for tech giant Intel ignited optimism about the economic and earnings outlook.
The Dow Jones Industrial Average lifted 1.82 percent to 8,511.24 in early trade. The tech-heavy Nasdaq rallied 2.42 percent to 1,843.23 and the Standard & Poor's 500 broad-market index climbed 1.82 percent to 922.33.
"Intel Corp.'s solid quarterly report and upbeat outlook have galvanized Wall Street bulls," said Joseph Hargett at Schaeffer's Investment Research.
"The report helped bolster hopes for a solid round of corporate earnings, especially since Goldman Sachs Group took the edge off with its better-than-expected quarterly report on Tuesday morning."
Goldman Sachs posted a net profit of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
"Investors will be making the most of this post-Goldman optimism," said IG Index market strategist Anthony Grech.
The FTSE was also boosted by British unemployment data.
"Although the unemployment number hit its highest rate since January 1997, the number of people claiming jobless benefits rose by less than expected. This helped the FTSE trade above 4,300 for the first time in weeks," added Serff.
The number claiming unemployment benefits in Britain rose in June at the slowest pace for 13 months, official data showed, but the unemployment rate hit a 12-year high of 7.6 percent, amid Britain's worst recession in decades.
Japanese stocks ended narrowly mixed Wednesday as investors reacted coolly to the gains on Wall Street, dealers said.
Leading the way in London on Wednesday were miners and banks. Anglo-Swiss miner Xstrata soared 8.42 percent to 666 pence and Barclays banking group gained 4.43 percent to 313.3 pence.
"Commodity producers are leading the charge higher, as analysts are forecasting increased demand from China," said Grech.
Elsewhere in Europe, the Swiss market Index rose 2.02 percent to 5,473.33, Milan soared 3.68 percent to 19,130, Amsterdam 3.54 percent to 260.82, Madrid 2.82 percent to 9,905.30 and Brussels 2.79 percent to 2,082.29.
(AFP)
Japan may face deflation through 2011: IMF
Posted by imdurrani Labels: Asia, economy, global finance, IMF, world finance| Thursday July 16, 2009 |
| WASHINGTON: The International Monetary Fund on Wednesday said that Japan would likely wrestle with deflation through 2011 as it struggles to recover from severe recession. "Inflation is projected to remain negative until 2011," the IMF said in a report. The IMF sees prices falling 1.1 percent this year, 0.8 percent in 2010 and 0.4 percent in 2011. (AFP) |
Wall Street surges on Intel results, data
Posted by imdurrani Labels: US, world finance, world stocksThe broad S&P 500 has gained 6.1 percent so far this week, its best three days since the rally began in March, as companies, including Intel and Goldman Sachs Group, posted much better-than-expected results.
The current earnings season is key as investors look for evidence to support optimism for an economic recovery.
In a sign that consumers might be faring better than feared, US credit card companies said defaults and delinquencies were lower in June than expected. American Express forecast better business in the second half of the year, pushing its stock up 11.3 percent to $27.22. For details, see
Optimism was further reinforced by manufacturing data that suggested the recession is abating, as well as minutes from the Federal Reserve's most recent policy-setting meeting that showed officials judged that the US economy's contraction was slowing.
But Intel set the tone with earnings that handily beat forecasts on better-than-expected consumer demand for personal computers. It also gave a strong outlook and shares of the world's largest chip maker shot up 7.3 percent to $18.05.
"Intel is the guts of the whole technology industry, so when they're talking about consumers getting more active on the PC front, that augers well for a lot of different things," said David Katz, chief investment officer at Matrix Asset Advisors in New York.
The Dow Jones industrial average rose 256.72 points, or 3.07 percent, to 8,616.21. The Standard & Poor's 500 Index gained 26.84 points, or 2.96 percent, to 932.68, its best gain in nearly two months and putting it solidly back into the black for the year. The Nasdaq Composite Index jumped 63.17 points, or 3.51 percent, to 1,862.90.
Along with technology shares, the financial sector led the way higher, with the S&P financial index climbing 4.1 percent. Hopes that banks will report better-than-anticipated quarterly results fuelled Monday's rally. JPMorgan, which releases its scorecard on Thursday, gained 4.5 percent to $36.26.
Intel's results lifted rival Advanced Micro Devices shares, pushing AMD up 8.7 percent to $3.86 on the New York Stock Exchange, while the PHLX semiconductor index jumped 4.4 percent.
Tech will likely continue to be in the spotlight on Thursday with results expected from bellwethers International Business Machines and Google. IBM gave the Dow its biggest boost. IBM's stock climbed 3.9 percent to $107.22 on the NYSE, while Google's shares gained 3.2 percent to $438.17 on Nasdaq.
On the economic front, separate reports showed both industrial output and New York factory activity declined at a slower pace, while consumer prices edged up moderately. The New York Federal Reserve Bank's Empire State business index registered its strongest level since April 2008.
Minutes from last month's FOMC meeting showed central bank policy-makers thought economic growth would resume in the second half of the year, although the economy remained vulnerable.
(Reuters)
SINGAPORE: Oil prices were up in Asian trade Thursday after a massive rally in US stocks stoked hopes of an early rebound for the global economy, analysts said.
New York's main futures contract, light sweet crude for delivery in August, rose 15 cents to 61.69 dollars a barrel.
Brent North Sea crude for August delivery advanced six cents to 63.15 dollars. The contract will expire later Thursday.
Analysts said oil prices were lifted by overnight gains on Wall Street, with the US Federal Reserve's improved outlook for the US economy giving an additional boost.
"It's the surge in technological and financial stocks on Wall Street that's spilling into the Asian equity markets," said Victor Shum, senior principal of energy consultants Purvin and Gertz in Singapore.
This pulled oil prices higher, he added.
"Oil market sentiment was buoyed by gains on US equity markets," the Commonwealth Bank of Australia also said in a report.
Wall Street closed strongly on Wednesday, spurred on by surprisingly good results from tech giant Intel and an improved outlook by the Federal Reserve for the world's biggest economy.
The US central bank raised its outlook for 2009 and 2010, projecting a rebound in the second half of 2009 that would leave the economic contraction for the year at between 1.0 and 1.5 percent.
Markets worldwide closely monitor the health of the US economy because of its role as a key engine for global growth.
A stronger global economy means more demand for oil to power industries and other economic activities, leading to higher prices.
(AFP)
Europe stocks bounce but doubts persist
Posted by imdurrani Labels: Europe, world finance, world stocksLONDON : Europe's leading stock markets rose on Tuesday after strong US bank earnings and economic data, but doubt crept in with investors already looking anxiously ahead for more indicators, dealers said.
Bailed out US investment banking giant Goldman Sachs reported stronger than expected earnings of 3.44 billion dollars in the second quarter, topping market expectations and easing fears about a collapsing financial system.
The US government said retail prices rose for the second month in a row in June.
The reports gave markets a lift in early afternoon European trading, but analysts warned that investors were still haunted by uncertainty over the economic outlook.
"The market is still very much in a state of flux at the moment with both falls and rallies being short-lived," said Angus Campbell, a trader at Capital Spreads.
London's FTSE 100 index closed 0.85 percent higher at 4,237.68 points as European markets extended Monday's strong gains.
Frankfurt's DAX rose 1.26 percent to 4,781.69 points and in Paris the CAC 40 index rose 0.97 percent to close at 3,081.87.
Financial companies fared well in London trading, with Royal Bank of Scotland up 1.99 percent to 36.92 pounds and Lloyds Banking Group two percent to 65.8 pounds.
Likewise in Frankfurt, Deutsche Bank rose 2.60 percent to 46.69 euros and Commerzbank 0.61 percent to 4.91.
The Eurostoxx 50 composite index gained 0.90 percent.
Elsewhere there were gains of 0.70 percent on the Madrid stock exchange, 1.61 percent in Brussels, 0.94 percent on the Swiss Market Index, 0.85 percent in Amsterdam and 1.28 percent in Milan.
But analysts played down the apparent boost from the Goldman Sachs news as markets looked ahead to a wave of other banking results and economic data in coming days.
"With the lack of follow through this afternoon on the back of the Goldman Sachs's numbers, it could well be that this rally has now run its course," said David Jones, a strategist at IG Index.
Goldman's rivals JPMorgan Chase, Bank of America and Citigroup are all due to issue earnings reports this week. Markets were also awaiting US and eurozone inflation data, plus US manufacturing and housing reports.
US stocks struggled in early trade as investors took profits from a big rally on Wall Street, having already digested optimism over Goldman Sachs.
The Dow Jones Industrial Average dropped 0.36 percent to 8,301.67 in early trade. The technology-heavy Nasdaq dipped 0.31 percent to 1,787.70 while the broad-market Standard & Poor's 500 index edged down 0.24 percent to 898.92.
Goldman Sachs shares edged up 0.56 percent to 150.28 dollars, extending gains from Monday, but the rest of the finance sector was under pressure on Wall Street.
Japanese share prices closed up 2.34 percent on Tuesday, snapping a nine-day losing streak. Hong Kong soared 3.66 percent.
(AFP)
NEW YORK: US stocks managed modest gains on Tuesday as better-than-expected corporate profits overshadowed concerns about weak consumer demand.
Analysts said the bulk of the day's news, including a surge in profit from Goldman Sachs, was already accounted for on Monday, when major stock indexes rose by more than 2 percent in anticipation of strong bank results.
But the cross-currents inherent in the midst of conflicting signals emerging from the earnings season kept the markets range-bound.
Gains were tempered by lacklustre retail sales data and comments from Dell that second quarter margins would be lower as demand has shifted toward cheaper computers, such as netbooks.
This was offset by encouraging comments from railroad company CSX Corp's chief executive and results from Johnson & Johnson that surpassed expectations.
"The sellers had a chance to run with it, but again we found sideline cash ready to come in," said Scott Marcouiller, senior equity market strategist at Wells Fargo Advisors in St. Louis.
"The bottom line is we think we're still going to be in this trading range for a little while longer."
The Dow Jones industrial average added 27.81 points, or 0.33 percent, to 8,359.49. The Standard & Poor's 500 Index gained 4.79 points, or 0.53 percent, to 905.84. The Nasdaq Composite Index rose 6.52 points, or 0.36 percent, to 1,799.73.
Data showed June retail sales increased 0.6 percent, which was more than forecast, but a big part of that gain was due to rising gasoline prices. Excluding autos and gas sales, retail sales registered a fourth consecutive monthly decline. A rebound in sales is considered vital for the US economy to bounce back from recession, as consumer spending accounts for roughly two-thirds of the country's economic activity.
Goldman Sachs Group's surge in quarterly profit handily beat expectations, but its stock gained just 0.2 percent to $149.66 after Monday's jump of 5 percent.
Johnson & Johnson's profit also surpassed forecasts and the Dow component rose 0.9 percent to $58.23.
The current earnings season is under particular scrutiny as investors look for signs of economic improvement.
Indeed, comments from the chief executive of CSX that the worst of the recession seems to be over helped bolster stocks.
CSX, which reported better-than-expected results after Monday's closing bell, saw its shares climb 7 percent to $34.80 on the New York Stock Exchange. The Dow Jones Transportation Average gained 1.3 percent.
But personal computer maker Dell limited gains after its lower margin forecast, pushing its stock down 8.1 percent to $11.97 on Nasdaq.
(Reuters)
SINGAPORE: Oil was higher in Asian trade Wednesday but any further sharp gains were likely to be capped by worries over weak US energy demand, analysts said.
New York's main contract, light sweet crude for August delivery, advanced 60 cents to 60.12 dollars a barrel after closing Tuesday 17 cents lower at 59.52 dollars, it’s lowest since May 18.
Brent North Sea crude for August delivery gained 74 cents to 61.60 dollars.
Keeping a lid on prices are expectations of another build-up in US oil stockpiles when the Department of Energy (DoE) releases its weekly inventory report later Wednesday, analysts said.
A Dow Jones Newswires poll of analysts expects the DoE report to show a 900,000-barrel rise in gasoline reserves in the week to July 10, indicating anaemic demand in the world's biggest economy and energy user.
"The world is facing a glut of oil," Morgan Stanley's commodity analysts said in a report.
Last week's DoE report also showed an increase in gasoline reserves, which are widely monitored at this time of year when the US summer holiday driving season kicks into gear.
Also likely to weigh on prices are comments by US President Barack Obama that he expects the unemployment rate, currently at 9.5 percent, to rise further.
"This has been a more severe recession than we've seen since the Great Depression," Obama said Tuesday, adding that the United States would "probably continue to see unemployment tick up for several months."
Uncertainty over the global economy, particularly the US, will weigh on commodity prices in the next few months, analysts from Barclays Capital said.
"While the long-term outlook for a broad range of commodities still appears positive, there is less certainty over the short-term," they said in a report.
"The commodity price rally is likely to prove very sensitive to any faltering in the economic recovery story."
(AFP)
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