Monday June 22, 2009

Google made an initial investment of $3.9 million in 23andme some time ago. Considering that Google's in the business of search and advertising, and that 23andme tests people's spit for diseases (or more accurately, genetic predispositions to disease), this crossover raised a few eyebrows.

As per reports, the situation looked even iffier once people learned that "[t]he funds from Google's first investment in the biotech group were used in part to repay a loan of approximately $2.6 million that Brin had earlier provided to 23andMe."

But anyway, the SEC document makes Wojcicki's and Brin's relationship clear, and points out that Brin put in a lot more money - $10 million - this time around. The filing also states, "Google continues to hold a minority interest in 23andMe as a result of the Series B investment," so it seems that no under-the-table-takeover has occurred.

Google's investors appear to be perfectly okay with the move, as well, since the search giant's stock rose by 1.46 percent today.

Nothing was said about where the two companies might go from here.

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Monday June 22, 2009

The Obama administration has unveiled a new regulatory reform plan aimed at bringing more stability to financial markets.

On Wednesday, the White House laid out a plan that includes a new Consumer Financial Protection Agency aimed at protecting consumer rights in credit, savings and payment markets.

With an eye on the increasingly complex financial transactions that helped bring about the recession, Obama also indicated that the Federal Reserve would receive more authority to regulate large financial institutions

"It is an indisputable fact that one of the most significant contributors to our economic downturn was a unraveling of major financial institutions and the lack of adequate regulatory structures to prevent abuse and excess," said the president.

Obama also acknowledged that his plan has drawn some early opposition, but he emphasized that the proposal had been developed with a broad range of input and that his plan would still encourage innovation in the financial industry.

In an Associated Press report, two key congressional chairmen, Rep. Barney Frank and Senator Chris Dodd, were quoted as saying that they would complete work on the proposed legislation this year.


(Nasdaq)

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Monday June 22, 2009

France’s budget deficit will widen to more than 7 per cent of gross domestic product this year and next as tax receipts fall and unemployment rises, Budget Minister Eric Woerth said on Sunday.

Speaking on RTL radio, he said the deficit would come to between 7.0 and 7.5 per cent of GDP in 2009 and 2010, more than twice the 3 per cent ceiling laid down by European Union borrowing rules.


(Reuters)

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Monday June 22, 2009

LONDON: European shares were up in early trade on Friday, with energy and mining shares rising on strong commodities prices, banks higher, and following U.S. gains after data pointed to economic recovery. At 0845 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.7 percent at 856.93 points, after gaining 0.6 percent on Thursday. The European benchmark index is up 33 percent from the lifetime low hit on March 9, as investors have become more confident on prospects for economic recovery.

U.S. shares rallied on Thursday, breaking a three-day losing streak, as data on the job market, regional manufacturing and an index of leading indicators revived hopes the recession-hit economy was stabilising.

"The Conference Board leading indicators flashed an end-of-recession signal," said Davy stockbrokers in a note. "It has never fired a false signal before and this time is unlikely to prove any different.


(Reuters)

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Monday June 22, 2009

TOKYO: The yen rose on Monday, gaining in particular against the euro and Australian dollar in a climate of uncertainty ahead of the Federal Reserve meeting this week and stalling investor confidence in riskier assets.

The euro was also under pressure as the market awaited the European Central Bank's first ever one-year refinancing operation on Wednesday aimed at getting banks lending again and reducing the cost of borrowing for banks, firwms and consumers.

Traders said euro selling by funds which use computer trading models had kicked in, driving the single European currency lower against both the dollar and the yen.

This fed into already cautious sentiment among investors, who were also taking profits on trades in commodity-related currencies and other currencies which have rallied against the yen and dollar in the past three months along with shares.

"The markets overall are a bit whippy and the euro is under a bit of pressure as the market starts to focus on the long-term repo on Wednesday," said a senior trader at a European bank in Hong Kong.

The euro fell 0.7 percent to 133.32 yen, well down from its eight-month high above 139 set early in the month, and dropped 0.2 percent to $1.3912, well below a five-month peak of $1.4339 at the start of June.

Traders cited several factors as fuelling selling of the euro, including profit-taking ahead of the quarter end and an article in the Wall Street Journal about Germany's widening budget shortfall.

But uncertainty about the impact on the euro of the ECB's refinancing operation, how much liquidity it will generate and what it will do to money market rates seemed to be one of the main factors weighing on the single European currency..

The dollar lost 0.3 percent to 95.85 yen as the Japanese currency's strength elsewhere helped it higher.

The Fed's Open Market Committee meets on Tuesday and Wednesday and the market is waiting to see what it says about the economic outlook and a rise in Treasury debt yields, and if it makes any move to expand or extend its debt buyback programme.

"The Fed needs to find a balance between not killing the recovery through rate hike hopes, while at the same time not over-committing on keeping rates low," UBS analysts wrote in a research note.

Markets have drifted in the past few days as investors are still trying to decide if a three-month rally in riskier assets, including shares, has outrun the pace at which the global economy is healing.

Shares were firmer but not blasting higher, with the Nikkei average 0.4 percent up and the Australian market rising 0.4 percent.

One trader said news that rating agency Moody's had warned California it faced a "multi-notch" downgrade in its credit rating if it failed to act quickly to produce a budget had also fueled investor unwillingness to hold riskier positions.



(Reuters)

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Monday June 22, 2009

MUMBAI: Indian banks are likely to resist mounting government pressure to sharply cut rates as they grapple with expensive deposits raised at the height of the credit crisis and rising bond yields.

India's newly elected government wants its banks to lend more and cheaply to boost economic growth, following other Asian economies such as China, which lifted limits on bank lending to grease the wheels of its economy.

The pressure is adding to the risks for shares of state-run banks, which have underperformed the bank index and privately held banks this year.

"Profitability and margins could be under pressure particularly if specific Indian banks pursue a very aggressive growth strategy and decrease the spread earned on banking products," said Brayan Lai, a credit analyst at Calyon in Hong Kong.

"From a top down perspective, I prefer Indian state-run banks due to their quasi-sovereign backing and recapitalisation plans but, from a bottom-up approach, I'd be worried as some dubious lending may take place," he said.

Shares of the country's biggest lender State Bank of India have gained 32 percent so far this year, lagging a 46 percent gain in the bank index and a 57 percent jump in shares of privately held ICICI Bank. SBI and its associates control a quarter of all loans, and state-run banks as a sector corner 55 percent of all assets.

SBI cut its deposit rate by 25 basis points, its fourth cut in 2009, but has yet to reduce its lending rate. Chairman O.P. Bhatt said the economic recovery was yet to reflect on banks' asset growth and passing on rate cuts to customers will take time.

With bank loan growth slowing sharply, policymakers worry that by not passing on to customers the deep cuts in official rates these banks may threaten an economic revival. While the central bank has cut its main lending rate by 425 basis points since October, state-run banks have cut their lending rates by 150-200 bps.

Loan growth has slowed from around 27 percent in November to around 15 percent in early June and halved from rates of around 30 percent seen in the financial year to March 2008.


(Reuters)

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Monday June 22, 2009

HONG KONG: Asian currencies ended the week mainly weaker against the US dollar as the greenback strengthened on positive US economic news. However, the yen made big gains as a poor week for stock markets saw dealers become less risk averse and move into the Japanese unit.

JAPANESE YEN: The yen gained ground this week as declines in Asian stocks spurred demand for the safe-haven Japanese currency, dealers said. The Japanese currency stood at 96.31 against the dollar in New York late Friday, compared with 98.40 a week earlier.

On the Tokyo Stock Exchange, the benchmark Nikkei-225 index lost 349.56 points, or 3.45 percent, to 9,786.26 over the week to June 19. The yen's rise was also backed by selling pressure on the dollar after weak US inflation data trimmed market expectations for the Federal Reserve to raise interest rates later this year.

The May reading for the consumer price index (CPI), which inched up just 0.1 percent from April, was below analyst forecasts of a 0.3 percent rise. The lower inflation data indicating prices are flat and demand low dampened recent optimism for a year-end recovery, dealers said. Also weighing on the dollar was news that Russia and China have agreed to boost the use of their domestic currencies in bilateral trade to reduce dependence on the US unit, analysts said.

Both countries have called for a revamp of the global financial system in the wake of the economic crisis, saying there is a need for a new supranational currency besides the dollar.

AUSTRALIAN DOLLAR: The Australian dollar ended the week lower against the US unit as jitters over the pace of economic recovery strengthened the greenback and weakened commodity prices. The commodities-based Aussie closed Friday at 80.45 US cents, down from 81.52 a week earlier.

"The return of worries about the economic recovery helped boost the US dollar and this weighed on commodity prices and the Australian dollar," said Shane Oliver, chief economist of AMP Capital Investors.

The Australian currency and the country's stock market are both in the midst of a correction on worries that markets have run ahead of fundamentals, he added. The Aussie, which had surged to a high of 82.63 US cents in early June, dropped as low as 79.85 US cents last week before recovering a little before Friday's close. Traders said the unit would remain vulnerable due to the severe global recession and to growing uncertainty surrounding the outlook for the crisis.

But in the longer term, the Australian currency is likely to remain firmer on the back of generally strengthening commodity prices and a resurgence in carry trades.

NEW ZEALAND DOLLAR: The New Zealand dollar finished local trading Friday at 63.85 US cents, down from 64.25 the previous week. Reserve Bank of New Zealand governor Alan Bollard this week warned that buyers of the NZ dollar expecting a strong economic recovery may end up being disappointed. Some economists are arguing that the central bank may have to cut its official cash rate further if rises in the currency and wholesale interest rates continue to hamper the economy's recovery.

The local currency has been hostage to moves in the US dollar but attention is turning to New Zealand gross domestic product data for the March quarter due Friday, which is expected to show the economy was in recession for a fifth straight quarter.

CHINESE YUAN: The yuan closed at 6.8362 to the dollar Friday, compared with Thursday's close of 6.8347 and a closing price of 6.8338 to the dollar the week before. The central bank had set the yuan central parity rate at 6.8338 to the dollar Friday, compared with 6.8321 on Thursday. The People's Bank of China allows a trading band of 0.5 percent on either side of the midpoint.

HONG KONG DOLLAR: The US-pegged Hong Kong unit ended the week unchanged at 7.751.

INDONESIAN RUPIAH: The rupiah ended at 10,390 to the dollar, down from 10,090 the week before.

PHILIPPINE PESO: The Philippine peso weakened to 48.40 to the dollar on Friday from 47.87 on June 12.

SINGAPORE DOLLAR: bbeThe dollar was at 1.4565 Singapore dollars Friday from 1.4495 the previous week.

SOUTH KOREAN WON: The South Korean currency weakened to 1,268.40 won per dollar Friday, compared with 1,253.90 won a week earlier, as the greenback firmed against regional currencies.

Dealers said the won was likely to weaken further because of a lack of momentum in the stock market and uncertainties over North Korea's pursuit of nuclear and missile programmes. The dollar may trade between 1,264 and 1,272 won when the market reopens on Monday, they said.

TAIWAN DOLLAR: The Taiwan dollar fell 0.24 percent in the week to June 19 to close at 32.878 against the US dollar. The local currency closed at 32.800 a week earlier.

THAI BAHT: The Thai baht was stable against the greenback over the past week with trading lacklustre throughout, dealers said. The Thai unit closed Friday at 34.13-15 baht to one dollar compared to previous week's close of 34.10-13.


(AFP)

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Monday June 22, 2009

KARACHI: Investment under Continuous Funding System (CFS) at Karachi share market declined by 85 percent on Friday to a nominal level of Rs 10 million. The CFS rate also decreased by 20pps, falling to 30 percent on the end of the week from 50 percent recorded on the same day a week earlier.

The top 5 scrips by CFS investment were NBP, Lucky, MCB, POL and BAFL contributing 69 percent of total investment.


(BRecorder)

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