Sun Jul 27, 2008 6:28am EDT
GENEVA, July 27 (Reuters) - The European Commission and Latin American countries have agreed on how to resolve a dispute over access to the EU's markets but other developing countries remain opposed, people familiar with the talks said on Sunday.
The bananas dispute is an obstacle to broader talks at the World Trade Organisation (WTO) on rescuing a global trade deal.
Under the deal reached between the European Union's executive and Latin American exporters early on Sunday, the EU's import tariff for bananas will be cut from 176 euros per tonne now to 148 euros from 2009, falling to 114 euros in 2016.
European officials were meeting ministers from rival banana exporters in the African, Caribbean and Pacific group to try to persuade them to accept the deal, one person familiar with the talks said. (Reporting by William Schomberg and Jonathan Lynn; Editing by Catherine Evans)
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Sunday, July 27, 2008
Germany braces for first Lufthansa strike in 13 years
Sun Jul 27, 2008 8:26am EDT
By Erik Kirschbaum
BERLIN, July 27 (Reuters) - A strike over wages by ground crew and cabin staff at Deutsche Lufthansa (LHAG.DE: Quote, Profile, Research, Stock Buzz) is expected to cause disruptions at Germany's 10 largest airports on Monday after a key union voted overwhelmingly to walk off the job.
The Verdi union, which represents 52,000 air industry workers, planned to start the strikes at midnight (2200 GMT) -- but would not reveal in advance where the walkouts would happen to prevent the airline from making plans to thwart the impact.
Union officials said that the unlimited strike, the first in 13 years at Lufthansa, would affect all areas -- from catering and cargo to maintenance and repair staff. Some 91 percent of union members voted to strike, Verdi said on Friday.
"The starting times will be staggered," said Verdi's chief negotiator Erhard Ott. Frankfurt, Munich, Berlin, Hamburg, Duesseldorf, Stuttgart, Nuremberg, Hanover, Leipzig and Bremen airports would be affected, the union said.
Verdi, which has lost influence since the last Lufthansa strike in 1994, wants a 9.8-percent pay increase for one year. Lufthansa, Europe's second biggest airline by passenger numbers, is offering 6.7 percent over 21 months and a one-off payment.
Lufthansa has said it will have to see where the strikes happen before deciding how many domestic and international flights will be cancelled. It has said it hopes to juggle non-striking staff to limit the impact of the strike.
In view of heavy criticism from political and industry leaders, the union is expected to stop well short of an all-out walk out on Monday and instead opt for targeted strikes.
HOLIDAY SEASON
Verdi would be ready to restart talks if Lufthansa improved its offer, Ott said. Their wage talks broke down on July 10.
"We've got to do everything we can to prevent this strike," said Klaus Lippold, a member of parliament and transport expert for the Christian Democrats. "Not only to save the holiday season but to prevent damage to Germany's air travel industry."
Rainer Wend, an economy expert in parliament for the Social Democrats, also spoke out against the strike.
"Even though one must accept a strike being a tool in a labour dispute, it's still unfortunate that innocent bystanders and holiday travellers will be hurt by the strike more than the union's opponents," Wend told Welt am Sonntag newspaper.
Earlier this week, Lufthansa cancelled almost 1,000 regional flights at its Eurowings and CityLine subsidiaries after pilots walked out in a separate pay dispute.
At a time when Europe's biggest economy is seeing a spike in inflation, several labour unions are seeking bigger wage deals after restraint in recent years. (Editing by Jon Boyle)
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By Erik Kirschbaum
BERLIN, July 27 (Reuters) - A strike over wages by ground crew and cabin staff at Deutsche Lufthansa (LHAG.DE: Quote, Profile, Research, Stock Buzz) is expected to cause disruptions at Germany's 10 largest airports on Monday after a key union voted overwhelmingly to walk off the job.
The Verdi union, which represents 52,000 air industry workers, planned to start the strikes at midnight (2200 GMT) -- but would not reveal in advance where the walkouts would happen to prevent the airline from making plans to thwart the impact.
Union officials said that the unlimited strike, the first in 13 years at Lufthansa, would affect all areas -- from catering and cargo to maintenance and repair staff. Some 91 percent of union members voted to strike, Verdi said on Friday.
"The starting times will be staggered," said Verdi's chief negotiator Erhard Ott. Frankfurt, Munich, Berlin, Hamburg, Duesseldorf, Stuttgart, Nuremberg, Hanover, Leipzig and Bremen airports would be affected, the union said.
Verdi, which has lost influence since the last Lufthansa strike in 1994, wants a 9.8-percent pay increase for one year. Lufthansa, Europe's second biggest airline by passenger numbers, is offering 6.7 percent over 21 months and a one-off payment.
Lufthansa has said it will have to see where the strikes happen before deciding how many domestic and international flights will be cancelled. It has said it hopes to juggle non-striking staff to limit the impact of the strike.
In view of heavy criticism from political and industry leaders, the union is expected to stop well short of an all-out walk out on Monday and instead opt for targeted strikes.
HOLIDAY SEASON
Verdi would be ready to restart talks if Lufthansa improved its offer, Ott said. Their wage talks broke down on July 10.
"We've got to do everything we can to prevent this strike," said Klaus Lippold, a member of parliament and transport expert for the Christian Democrats. "Not only to save the holiday season but to prevent damage to Germany's air travel industry."
Rainer Wend, an economy expert in parliament for the Social Democrats, also spoke out against the strike.
"Even though one must accept a strike being a tool in a labour dispute, it's still unfortunate that innocent bystanders and holiday travellers will be hurt by the strike more than the union's opponents," Wend told Welt am Sonntag newspaper.
Earlier this week, Lufthansa cancelled almost 1,000 regional flights at its Eurowings and CityLine subsidiaries after pilots walked out in a separate pay dispute.
At a time when Europe's biggest economy is seeing a spike in inflation, several labour unions are seeking bigger wage deals after restraint in recent years. (Editing by Jon Boyle)
Read more...
Qantas to inspect oxygen bottles after 747 emergency
Sun Jul 27, 2008 4:39am EDT
(Adds safety investigators comments in Manila)
By Michael Perry
SYDNEY, July 27 (Reuters) - Qantas was ordered on Sunday to check all oxygen bottles on its fleet of Boeing 747s after investigators said an exploding oxygen bottle might have ripped a hole in a Qantas 747, forcing it to make an emergency landing at Manila.
Australia's Civil Aviation Authority (CASA) said Qantas had agreed to inspect oxygen bottles on its fleet of 747s. The airline has about 30 of the Boeing model.
The Qantas aircraft made an emergency landing in Manila on Friday after part of its undercarriage blew off, triggering a loss in cabin pressure during a flight from Hong Kong to Melbourne.
"There are two cylinders located pretty much exactly where that hole appeared," CASA spokesman Peter Gibson told reporters.
"We do know there were two oxygen bottles in that area, we do know they're a main focus of the investigation, and we think it's prudent to put safety first, to get inspections done now rather than wait any longer," Gibson said.
In Manila, investigators from the Australian Transport Safety Bureau said there were no traces of explosive materials on the aircraft or passengers' baggage.
"At this stage, there was no evidence whatsoever that this is a security-related event," said Neville Blyth, senior investigator from the safety bureau.
"This is treated as a safety investigation and until such time as any evidence comes to light that this is a security-related event, the investigation will be conducted by the ATSB and the Philippines as standard safety event."
Blyth said one of the oxygen cylinders near the fuselage of the Boeing 747-400 was missing, but he declined to conclude it was the cause of the blast.
"I can't speculate as to indeed the probability of that cylinder having caused the damage. The areas around the damage will be inspected, obviously, looking for evidence of where that cyclinder may have gone and for its fragments."
RAPID DESCENT
Passengers reported hearing a loud bang before the aircraft rapidly lost altitude and said the Boeing 747-400 had a hole the size of a mini-van on the right of its undercarriage when it landed in the Philippine capital.
The Australian Transport Safety Bureau said QF30 made an emergency descent from 29,000 feet to 10,000 feet. All 346 passengers and 19 crew disembarked safely.
Gibson also said investigators would look into reports that oxygen masks aboard the plane were in poor shape and some failed to deploy during the emergency.
Some passengers said their oxygen masks failed to work properly during the crisis, almost causing some to pass out.
"Ours didn't come down, and my husband just about (passed out) because he didn't have any oxygen for about three minutes," passenger Beverley Doors told Australian radio on Sunday.
Passenger David Saunders said one man in front of him smashed the ceiling panel to force his mask to come down, and that children were screaming and flailing.
"Their cheeks and lips were turning blue from lack of oxygen," he said. (Additional reporting by Manny Mogato in Manila)
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(Adds safety investigators comments in Manila)
By Michael Perry
SYDNEY, July 27 (Reuters) - Qantas was ordered on Sunday to check all oxygen bottles on its fleet of Boeing 747s after investigators said an exploding oxygen bottle might have ripped a hole in a Qantas 747, forcing it to make an emergency landing at Manila.
Australia's Civil Aviation Authority (CASA) said Qantas had agreed to inspect oxygen bottles on its fleet of 747s. The airline has about 30 of the Boeing model.
The Qantas aircraft made an emergency landing in Manila on Friday after part of its undercarriage blew off, triggering a loss in cabin pressure during a flight from Hong Kong to Melbourne.
"There are two cylinders located pretty much exactly where that hole appeared," CASA spokesman Peter Gibson told reporters.
"We do know there were two oxygen bottles in that area, we do know they're a main focus of the investigation, and we think it's prudent to put safety first, to get inspections done now rather than wait any longer," Gibson said.
In Manila, investigators from the Australian Transport Safety Bureau said there were no traces of explosive materials on the aircraft or passengers' baggage.
"At this stage, there was no evidence whatsoever that this is a security-related event," said Neville Blyth, senior investigator from the safety bureau.
"This is treated as a safety investigation and until such time as any evidence comes to light that this is a security-related event, the investigation will be conducted by the ATSB and the Philippines as standard safety event."
Blyth said one of the oxygen cylinders near the fuselage of the Boeing 747-400 was missing, but he declined to conclude it was the cause of the blast.
"I can't speculate as to indeed the probability of that cylinder having caused the damage. The areas around the damage will be inspected, obviously, looking for evidence of where that cyclinder may have gone and for its fragments."
RAPID DESCENT
Passengers reported hearing a loud bang before the aircraft rapidly lost altitude and said the Boeing 747-400 had a hole the size of a mini-van on the right of its undercarriage when it landed in the Philippine capital.
The Australian Transport Safety Bureau said QF30 made an emergency descent from 29,000 feet to 10,000 feet. All 346 passengers and 19 crew disembarked safely.
Gibson also said investigators would look into reports that oxygen masks aboard the plane were in poor shape and some failed to deploy during the emergency.
Some passengers said their oxygen masks failed to work properly during the crisis, almost causing some to pass out.
"Ours didn't come down, and my husband just about (passed out) because he didn't have any oxygen for about three minutes," passenger Beverley Doors told Australian radio on Sunday.
Passenger David Saunders said one man in front of him smashed the ceiling panel to force his mask to come down, and that children were screaming and flailing.
"Their cheeks and lips were turning blue from lack of oxygen," he said. (Additional reporting by Manny Mogato in Manila)
Read more...
DFL, Kirch try to salvage German soccer deal -paper
Sun Jul 27, 2008 8:02am EDT
FRANKFURT, July 27 (Reuters) - The German football league is trying to save a lucrative deal with media mogul Leo Kirch to market TV soccer rights by addressing cartel office concerns that the current model puts free TV viewers at a disadvantage.
The sticking point is the time the popular highlights from Bundesliga games can be shown on free-to-air broadcasts.
Soccer body DFL, Kirch and Germany's only pay-TV broadcaster Premiere want Bundesliga wrap-ups to be aired on free TV after 10 pm, while the cartel watchdog wants highlights to be aired on free TV before 8 pm.
Sunday weekly Bild am Sonntag said without quoting sources the DFL board was in discussion to offer a compact version of highlights from the games to placate the cartel office.
Currently, public broadcaster ARD shows 90 minutes of game highlights from 0630 pm until 8 pm.
The DFL's new proposal allows 30 minutes of Bundesliga coverage for ARD at 7:30 pm, the paper reported.
With that move DFL hopes to salvage a deal with the Sirius agency, headed by media magnate Kirch, to market the rights as well as produce and sell ready-to-air Bundesliga programmes.
The agency promised to make up to 500 million euros ($785.1 million) per season from the rights.
So far, the DFL has said the agreement with Sirius stands, but Dieter Hahn, who closed the deal with DFL for Leo Kirch, told Der Spiegel magazine in a report to be published on Monday that if plans to push free TV Bundesliga wrap-ups to late in the evenings fail, then Sirius would pull out of the deal.
"In that case, the foundation for the model will crumble. Then we will also not be able to guarantee 500 million," Hahn said.
Separately, weekly magazine Focus said in its Monday edition without quoting sources that News Corp boss Rupert Murdoch was sounding out the possibility of buying the entire Bundesliga TV rights package for 450 million euros.
A spokesman for News Corp, which owns around 25 percent of Premiere , declined to comment.
Premiere, which currently shows live Bundesliga matches under an accord with cable operator Unity Media, has said it is willing to pay more for Bundesliga TV rights in exchange for greater exclusivity. (Reporting by Nicola Leske, editing by Will Waterman)
Read more...
FRANKFURT, July 27 (Reuters) - The German football league is trying to save a lucrative deal with media mogul Leo Kirch to market TV soccer rights by addressing cartel office concerns that the current model puts free TV viewers at a disadvantage.
The sticking point is the time the popular highlights from Bundesliga games can be shown on free-to-air broadcasts.
Soccer body DFL, Kirch and Germany's only pay-TV broadcaster Premiere want Bundesliga wrap-ups to be aired on free TV after 10 pm, while the cartel watchdog wants highlights to be aired on free TV before 8 pm.
Sunday weekly Bild am Sonntag said without quoting sources the DFL board was in discussion to offer a compact version of highlights from the games to placate the cartel office.
Currently, public broadcaster ARD shows 90 minutes of game highlights from 0630 pm until 8 pm.
The DFL's new proposal allows 30 minutes of Bundesliga coverage for ARD at 7:30 pm, the paper reported.
With that move DFL hopes to salvage a deal with the Sirius agency, headed by media magnate Kirch, to market the rights as well as produce and sell ready-to-air Bundesliga programmes.
The agency promised to make up to 500 million euros ($785.1 million) per season from the rights.
So far, the DFL has said the agreement with Sirius stands, but Dieter Hahn, who closed the deal with DFL for Leo Kirch, told Der Spiegel magazine in a report to be published on Monday that if plans to push free TV Bundesliga wrap-ups to late in the evenings fail, then Sirius would pull out of the deal.
"In that case, the foundation for the model will crumble. Then we will also not be able to guarantee 500 million," Hahn said.
Separately, weekly magazine Focus said in its Monday edition without quoting sources that News Corp boss Rupert Murdoch was sounding out the possibility of buying the entire Bundesliga TV rights package for 450 million euros.
A spokesman for News Corp, which owns around 25 percent of Premiere , declined to comment.
Premiere, which currently shows live Bundesliga matches under an accord with cable operator Unity Media, has said it is willing to pay more for Bundesliga TV rights in exchange for greater exclusivity. (Reporting by Nicola Leske, editing by Will Waterman)
Read more...
India on alert after two days of bombings kill 40
Sun Jul 27, 2008 3:24am EDT
By Alistair Scrutton and Bappa Majumdar
NEW DELHI, India, July 27 (Reuters) - India's major cities were put on high alert on Sunday, with fears of more attacks after at least 40 people were killed in two days of bombings that hit a communally-sensitive western city and a southern IT hub
At least 16 small bombs exploded in the Indian city of Ahmedabad on Saturday, killing at least 39 people and wounding 110, a day after another set of blasts in Bangalore killed a woman.
A little known group called the "Indian Mujahideen" claimed responsibility for the Ahmedabad attack on Saturday. The same group said it carried out bombs attacks that killed 63 people in the western city of Jaipur in May.
It is unusual for any group to claim responsibility, but India says it suspects militant groups from Pakistan and Bangladesh are behind a wave of bombings in recent years, with targets ranging from mosques and Hindu temples to trains.
"The entire nation, including major metro cities in India have been put on high alert and they have been asked to step up security in vital installations," a home ministry spokesman said.
In New Delhi, police used loudspeakers and distributed leaflets in crowded market places, warning people to watch out for unclaimed baggage and suspicious objects. Police guarded Hindu temples in the eastern city of Kolkata.
There were two separate series of bombings in Ahmedadad, the first near busy market places. A second quick succession of bombs went off 20 to 25 minutes later around a hospital, where at least six people died, police said. All were detonated with timers.
"I came with my two children to cheer up my mother admitted to hospital," said Pankaj Patel, whose son Rohan and daughter Pratha were killed at Ahmedadad hospital. "They were laughing when the blast occurred. Now they are dead."
Two doctors were killed in the hospital in a blast in which at least one bomb was tied onto a gas cylinder. Charred motorcycles and bicycles were shown outside. TV showed victims writhing in pain and covered in blood on hospital floors.
The other bombs were in Ahmedabad's crowded old city dominated by its Muslim community. Many were packed into metal tiffin boxes, used to carry food, and packed with ball-bearings. Some were left on bicycles.
Police found three other unexploded bombs in Ahmedabad on Sunday, local media said.
Ahmedabad is the main city in the communally sensitive and relatively wealthy western state of Gujarat, scene of deadly riots in 2002 in which 2,500 people are thought to have died, most of them Muslims killed by rampaging Hindu mobs.
Both Ahmedabad and Bangalore are in states ruled by the Hindu-nationalist Bharatiya Janata Party and are among the country's fastest-growing.
Gujarat's Chief Minister Narendra Modi is one of India's most controversial politicians, accused of turning a blind eye to the Gujarat riots.
MUSLIM BACKLASH?
Some analysts say there is evidence of local Muslim groups, for years seen as unaffected by the rise of global Islamist militancy, of taking up violence against India, where they are a poor and often neglected minority. They may be getting training and financial backing from Pakistan or Bangladesh.
"Over the last few years, the dissatisfaction among Indian Muslims has hitched onto the wagon of the global/regional jihad," said C. Uday Bhaskar, a security analyst and former director of New Delhi's Institute for Defence Studies and Analyses.
"If you have 150 million Muslims in India, only 0.0001 percent of that figure would mean a militant nucleus of 15,000 people."
Police raided one house in Mumbai where they believe e-mails from the Indian Mujahideen were linked, local media reported.
India's home ministry said on Friday it suspected "a small militant group" was behind the Bangalore attacks, while some police officials suspected the blasts could be the work of the banned Students Islamic Movement of India.
Some IT companies in Bangalore, known as India's Silicon Valley, were increasing security after bombs went off there. Each bomb had a similar explosive force to one or two grenades.
The city is a prominent software development centre and is also home to a major outsourcing industry. (Additional reporting by Rupam Jain Nair in Ahmedabad; Editing by Bill Tarrant)
Read more...
By Alistair Scrutton and Bappa Majumdar
NEW DELHI, India, July 27 (Reuters) - India's major cities were put on high alert on Sunday, with fears of more attacks after at least 40 people were killed in two days of bombings that hit a communally-sensitive western city and a southern IT hub
At least 16 small bombs exploded in the Indian city of Ahmedabad on Saturday, killing at least 39 people and wounding 110, a day after another set of blasts in Bangalore killed a woman.
A little known group called the "Indian Mujahideen" claimed responsibility for the Ahmedabad attack on Saturday. The same group said it carried out bombs attacks that killed 63 people in the western city of Jaipur in May.
It is unusual for any group to claim responsibility, but India says it suspects militant groups from Pakistan and Bangladesh are behind a wave of bombings in recent years, with targets ranging from mosques and Hindu temples to trains.
"The entire nation, including major metro cities in India have been put on high alert and they have been asked to step up security in vital installations," a home ministry spokesman said.
In New Delhi, police used loudspeakers and distributed leaflets in crowded market places, warning people to watch out for unclaimed baggage and suspicious objects. Police guarded Hindu temples in the eastern city of Kolkata.
There were two separate series of bombings in Ahmedadad, the first near busy market places. A second quick succession of bombs went off 20 to 25 minutes later around a hospital, where at least six people died, police said. All were detonated with timers.
"I came with my two children to cheer up my mother admitted to hospital," said Pankaj Patel, whose son Rohan and daughter Pratha were killed at Ahmedadad hospital. "They were laughing when the blast occurred. Now they are dead."
Two doctors were killed in the hospital in a blast in which at least one bomb was tied onto a gas cylinder. Charred motorcycles and bicycles were shown outside. TV showed victims writhing in pain and covered in blood on hospital floors.
The other bombs were in Ahmedabad's crowded old city dominated by its Muslim community. Many were packed into metal tiffin boxes, used to carry food, and packed with ball-bearings. Some were left on bicycles.
Police found three other unexploded bombs in Ahmedabad on Sunday, local media said.
Ahmedabad is the main city in the communally sensitive and relatively wealthy western state of Gujarat, scene of deadly riots in 2002 in which 2,500 people are thought to have died, most of them Muslims killed by rampaging Hindu mobs.
Both Ahmedabad and Bangalore are in states ruled by the Hindu-nationalist Bharatiya Janata Party and are among the country's fastest-growing.
Gujarat's Chief Minister Narendra Modi is one of India's most controversial politicians, accused of turning a blind eye to the Gujarat riots.
MUSLIM BACKLASH?
Some analysts say there is evidence of local Muslim groups, for years seen as unaffected by the rise of global Islamist militancy, of taking up violence against India, where they are a poor and often neglected minority. They may be getting training and financial backing from Pakistan or Bangladesh.
"Over the last few years, the dissatisfaction among Indian Muslims has hitched onto the wagon of the global/regional jihad," said C. Uday Bhaskar, a security analyst and former director of New Delhi's Institute for Defence Studies and Analyses.
"If you have 150 million Muslims in India, only 0.0001 percent of that figure would mean a militant nucleus of 15,000 people."
Police raided one house in Mumbai where they believe e-mails from the Indian Mujahideen were linked, local media reported.
India's home ministry said on Friday it suspected "a small militant group" was behind the Bangalore attacks, while some police officials suspected the blasts could be the work of the banned Students Islamic Movement of India.
Some IT companies in Bangalore, known as India's Silicon Valley, were increasing security after bombs went off there. Each bomb had a similar explosive force to one or two grenades.
The city is a prominent software development centre and is also home to a major outsourcing industry. (Additional reporting by Rupam Jain Nair in Ahmedabad; Editing by Bill Tarrant)
Read more...
Weekly Review and Outlook Commodity Currencies Dumped, Dollar Rebound to Face GDP & NFP Test
| Market Overview | Written by ActionForex.com | Jul 26 08 22:00 GMT | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A coupled of themes further developed in the forex markets last week. Dollar rebounded broadly on revived speculations on a near term rate hike from Fed. Markets are now pricing in around 50% chance that Fed will hike in Sep or Oct after Fed Plosser's hawkish comments. Yen had another extremely volatile week as investors' risk appetite flip-flopped and settled sharply lower against dollar and sterling. Euro, on the other hand, was soft after a string of disappointing sentiments indicators. Sterling was boosted by more hawkish than expected vote split revealed in BoE minutes. However, the most notable theme was indeed the lost of interest in commodity currencies. Among them, New Zealand dollar suffered most after RBNZ's surprised rate cut during the week. Canadian dollar was dumped further after crude oil dropped another 1.5% to $123.42 a barrel, over 16% off it's record high above $147 made on Jul 11. Aussie was dragged down by the kiwi as well as sharp fall in gold prices. AUD/JPY, NZD/JPY and CAD/JPY closed lower even though the yen was under tremendous pressure elsewhere. Technically speaking, the outlook in major pairs and crosses are mixed. On the one hand, dollar is still holding below near term resistance level against Euro, Sterling and even the Aussie, and thus there is not confirmation of a reversal yet. Though, outlook is USD/JPY, USD/CHF and USD/CAD are both suggesting more upside in the greenback should be seen. Euro is attempting an upside breakout against Swissy and at the same time a downside breakout against Sterling. Yen crosses remained generally very volatile. Also, considering that US Q2 GDP and Non-farm payroll will be featured this week, along with the development in equity and commodity markets, the forex markets will likely remain mixed and volatile this week.
Dollar was talked up by Fed Plosser's hawkish comments early last week. Plosser argued that monetary policy makers will have to "back up their words with actions" to keep inflation expectations anchored. Fed will need to "reverse course" and Plosser anticipate the reversal to be started "sooner rather than later". Fed's Beige Book noted that all of the 12 districts said that prices were "elevated" or "increasing, supporting recent hawkish rhetoric of Plosser. Though, five districts reported a "softening in their overall economies". On the data front, Jun durable goods orders came in much stronger than expected. Headline orders rose for the second consecutive months by 0.8% versus expectation of -0.3% fall. Ex-transport orders is even more impressive, rising strongly by 2.0%, largest monthly increase since last Dec, versus expectation of -0.2% fall. U of Michigan sentiments revised sharply higher to 61.2. New home sales dropped -0.6% to 530k, above exp 504k. Though, existing home sales dropped more than expected by -2.6% mom to 4.86m annualized rate in Jun. Jobless claims surged back to above 400k to 406k. Leading indicators dropped -0.1% in Jun, inline with expectation. House price index dropped -0.3% mom in May, better than expectation of -0.8%. Sentiments in Eurozone businesses continued to deteriorate. German Ifo business climate fell much more than expected from 101.2 to 97.5 in Jul, hitting the lowest level since mid 2005. Current situation component also dropped further from 108.3 to 105.7. Expectation component dropped from 94.6 to 90.0. The indices of trade & industry, construction, wholesaling and retailing were all in negative territory with manufacturing index being positive only. In addition, PMI manufacturing and services both fell more than expected to 47.5 and 48.3 respectively in Jul, remaining in contraction region below 50. The data argues that growth in the Eurozone, including in Germany, will continue to slow throughout the rest of the year and into 2009. Other data from Eurozone saw current account deficit much wider than expected at -21.4b in May. Industrial orders dropped more than expected by -3.5% mom, -4.4% yoy in May. M3 monthly supply growth slowed sharply to 9.5% yoy, below expectation of 10.3%. Sterling was boosted by the BoE minutes which surprisingly showed a three way split in voting to keep rates unchanged at 5.00% earlier this month. Markets expected a 8-1 vote but the results showed a 1-7-1 split, with Besley voted for a hike and Blanchflower voted for a cut, with seven other members voted for no change. Besley called for the hike to anchor inflation as well as ensuring BoE's credibility. Q2 GDP came in as expected by 0.2% qoq, 1.6% yoy. Though, retail sales dropped more than expected by -3.9% mom in Jun, biggest fall since at least 1986. Yoy rate also dropped down from 7.9% to 2.2%. Rightmove house prices index showed deeper drop by -1.8% mom, -2.0% yoy in Jul. Swiss combined PPI climbed 0.6% mom, 4.5% yoy in Jun, up from prior 1.2% mom and 3.9% yoy and beat expectation of 0.4% mom, 4.3% yoy. Trade surplus jumped to 2.41B in Jun. Japan national CPI beat expectation and climbed 2.0% yoy in Jun. Corporate Service Price Index rose 1.2%, much stronger than expectation of 0.6%. All industry index climbed 0.4% in May, inline with expectation. Trade surplus released overnight shrank to 138.6b on strong growth in imports by 16.2% and a -1.7% drop in imports. Canadian Headline CPI in Canada surged sharply from 2.2% yoy to 3.1% yoy in Jun, beating expectation of 2.9%. Core CPI, though, was unchanged at 1.5% yoy, below consensus of 1.6%. May retail sales report missed expectation. Headline sales grew 0.4% versus consensus of 0.6% while ex-auto sales grew 0.4% versus expectation of 0.8%. Australian CPI jumped from 1.3% to 1.5% qoq in Q2, with yoy rate pushed up from 4.2% to 4.5%, above expectation of 1.3% qoq, 4.3% yoy. The core CPI, RBA trimmed mean jumped to 1.2% qoq, 4.3% yoy, hitting a 17 year high. Q2 PPI softened from 1.9% qoq to 1.0% qoq and from 4.8% yoy to 4.7% yoy. Markets expected a 5.3% yoy jump in PPI. RBNZ's surprised the markets by 25bps cut in OCR and issued a rather dovish statement. In the accompanying statement, RBNZ noted that "economic activity is likely to remain weak over the remainder of 2008," and "provided that the outlook for inflation continues to improve and there is no excessive exchange-rate depreciation, we would expect to lower the OCR further." | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Week Ahead
Developments in the equity markets and commodity markets will continue to be major driving forces in the forex markets, in particular, triggering volatility in Yen and Aussie. Meanwhile, note that while EUR/USD and AUD/USD are still both holding above key near term support, the bullish outlook is looking shaky. Much focus will be on this week's Q2 GDP, Non-farm payroll as well as ISM manufacturing index on whether the greenback can extend the board based rebound.
Other focus of the week include US consumer confidence, Chicago PMI, Eurozone HICP flash, unemployment rate & PMIs. Germany Gfk consumer confidence, UK Manufacturing PMI and Gfk survey. Japanese unemployment and retail sales, Swiss KOF leading indicator and CPI, Canadian May GDP, Australia retail sales and trade balance, New Zealand Trade Balance.
USD/CAD Weekly Outlook
USD/CAD's rebound 0.9974 extended further to as high as 1.0206 last week. As discussed before, with correction from 1.0322 should have completed with three waves down to 0.9974, above mentioned key near term support at 0.9557. Initial bias remains on the upside this week and break of 1.0230 resistance will confirm this case. In other words, further rally should then be seen to 1.0378 medium term resistance first. On the downside, below 1.0126 will turn intraday outlook neutral first.
In the bigger picture, corrective nature of the price actions inside medium term range of 0.9709 and 1.0378 argues that it's merely consolidation to the whole rebound from 0.9056. Recent price actions argues that a break out is around the corner and above 1.0378 will confirm that rise from 0.9056 has resumed for 61.8% projection of 0.9056 to 1.0378 from 0.9709 at 1.0526 and above. On the downside, below 0.9974 will indicate that consolidation from 1.0378 is going to extend further with another test of 0.9709 support before completion.
In the longer term picture, a medium term bottom is in place at 0.9056 after USD/CAD just missed double projection target of 161.8% projection of 1.4006 to 1.1716 from 1.2737 at 0.9032 and 161.8% projection of 1.2737 to 1.0930 from 1.1874 at 0.8950. But with key medium term resistance zone of 1.0930, 38.2% retracement of 1.4006 to 0.9056 at 1.0947 and 50% retracement of 1.2737 to 0.9056 at 1.0897 remains intact, the long term down trend from 1.6196 is still in force. Though, break of 0.9709 support is needed to indicate rebound from 0.9056 has completed first before considering resumption of the long term down trend.
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FACTBOX-Key facts on Fannie Mae and Freddie Mac
Sat Jul 26, 2008 11:56am EDT
July 26 (Reuters) - The U.S. Congress has passed a housing bill aimed at rescuing the ailing housing market and shoring up Fannie Mae and Freddie Mac, enabling to two housing finance titans to support the U.S. home market.
Here are some key facts about the two companies:
FANNIE MAE:
-- Formal name: Federal National Mortgage Association
-- Created in 1938 by Congress as part of a campaign aimed at expanding the secondary U.S. mortgage market and increasing home ownership and rental housing.
-- Annual revenue: $43.71 billion (Dec. 31, 2007)
-- CEO: Daniel H. Mudd
-- Shares touched a 52-week high of $70.57 on Aug. 22, 2007 and fell as low as $6.68 on July 11, but closed at $11.55 on Friday.
FREDDIE MAC:
-- Formal name: Federal Home Loan Mortgage Corp.
-- Created in 1970 by Congress as part of a campaign aimed at expanding the secondary U.S. mortgage market and increasing home ownership and rental housing
-- Annual revenue: $42.91 billion (Dec. 31, 2007)
-- Common stock outstanding: 646.27 million (Jan. 31, 2008)
-- CEO: Richard F. Syron.
-- Shares touched a 52-week high of $66.65 on Aug. 17, 2007 and fell as low as $3.89 on July 11, but closed at $8.27 on Friday.
WHAT DO THE COMPANIES DO?
Fannie Mae and smaller Freddie Mac are shareholder-owned companies charged by Congress with supporting housing by keeping money flowing in the mortgage market. Due to the congressional charter, the two are often referred to as government-sponsored enterprises, or GSEs.
Due largely to an implied government guarantee, they are able to raise funds relatively cheaply by selling debt to investors. The funds they raise are then used to purchase home loans from mortgage originators such as banks, allowing the lenders to make fresh home loans.
While the collapse of the subprime mortgage market, which caters to borrowers with poor credit histories, has contributed significantly to the U.S. housing slump, the vast majority of mortgages purchased by Fannie Mae and Freddie Mac are prime, fixed-rate loans on which borrowers are current.
Fannie Mae and Freddie Mac bundle the loans they purchase into securities which are sold, with a guarantee of payment, to investors worldwide. In addition, the two companies also guarantee mortgages and pay owners of the loans when there is a default.
SIZE OF INVESTMENTS
The two companies hold some of the loans they purchase and securities they bundle in their investment portfolios. Fannie Mae said its portfolio was $736.9 billion in May, the highest since August 2005, while Freddie Mac said its portfolio was a record $791.8 billion in June.
Including investments and guarantees, Fannie Mae's total book of business topped $3 trillion for the first time in May, twice its size at the beginning of 2002.
With Freddie Mac's $2.2 trillion in investments and guarantees, the two have a hand in nearly half of the entire, $12 trillion national mortgage market.
WHY ARE THEY IN TROUBLE?
As the housing market continues to deteriorate, foreclosures have spread beyond subprime loans to higher-quality mortgages. The two companies have been required to write down their loans held for investment and pay out on guaranteed mortgages that default, depleting their capital.
Fannie Mae and Freddie Mac have reported more than $11 billion in losses since the housing market bubble burst.
Contrary to many other financial institutions, Fannie Mae and Freddie Mac have never been required to hold much capital relative to their assets. That leaves them with a smaller cushion for absorbing losses.
A lack of capital also indicates they are unable to buy mortgages from lenders.
THE SOLUTION?
Analysts and investors expect the two companies to raise capital.
Fannie Mae raised $7.4 billion of capital in April and May by selling common and preferred shares. Freddie Mac has announced plans to raise $5.5 billion but its ability to do that by selling shares will be difficult given the sharp drop in its stock price.
WHY DOES IT MATTER IF THEY REMAIN SOLVENT?
The two companies' presence in the struggling housing market is widely considered to be critical. They help keep mortgage rates low for many consumers, but the companies are struggling to balance growth through buying loans against rising delinquencies. The companies' debt instruments, which have a high credit rating, are widely held by banks and institutional investors around the world. A crisis in confidence could not only damage the companies but increase the cost of borrowing for the U.S. government.
IS THERE A PRECEDENT?
In 1979, Fannie Mae became insolvent as the market value of its liabilities exceeded the market value of its assets. This turned around as market factors eventually worked in the company's favor. The U.S. government did not get involved.
WHO OVERSEES THE TWO COMPANIES?
The Office of Federal Housing Enterprise Oversight, created in 1992. The agency is widely considered to lack crucial powers to oversee the companies and would be replaced by a stronger regulator under the just-passed legislation. (Compiled by Carl Bagh from Reuters source material, Editing by Jonathan Oatis)
Read more...
July 26 (Reuters) - The U.S. Congress has passed a housing bill aimed at rescuing the ailing housing market and shoring up Fannie Mae and Freddie Mac, enabling to two housing finance titans to support the U.S. home market.
Here are some key facts about the two companies:
FANNIE MAE:
-- Formal name: Federal National Mortgage Association
-- Created in 1938 by Congress as part of a campaign aimed at expanding the secondary U.S. mortgage market and increasing home ownership and rental housing.
-- Annual revenue: $43.71 billion (Dec. 31, 2007)
-- CEO: Daniel H. Mudd
-- Shares touched a 52-week high of $70.57 on Aug. 22, 2007 and fell as low as $6.68 on July 11, but closed at $11.55 on Friday.
FREDDIE MAC:
-- Formal name: Federal Home Loan Mortgage Corp.
-- Created in 1970 by Congress as part of a campaign aimed at expanding the secondary U.S. mortgage market and increasing home ownership and rental housing
-- Annual revenue: $42.91 billion (Dec. 31, 2007)
-- Common stock outstanding: 646.27 million (Jan. 31, 2008)
-- CEO: Richard F. Syron.
-- Shares touched a 52-week high of $66.65 on Aug. 17, 2007 and fell as low as $3.89 on July 11, but closed at $8.27 on Friday.
WHAT DO THE COMPANIES DO?
Fannie Mae and smaller Freddie Mac are shareholder-owned companies charged by Congress with supporting housing by keeping money flowing in the mortgage market. Due to the congressional charter, the two are often referred to as government-sponsored enterprises, or GSEs.
Due largely to an implied government guarantee, they are able to raise funds relatively cheaply by selling debt to investors. The funds they raise are then used to purchase home loans from mortgage originators such as banks, allowing the lenders to make fresh home loans.
While the collapse of the subprime mortgage market, which caters to borrowers with poor credit histories, has contributed significantly to the U.S. housing slump, the vast majority of mortgages purchased by Fannie Mae and Freddie Mac are prime, fixed-rate loans on which borrowers are current.
Fannie Mae and Freddie Mac bundle the loans they purchase into securities which are sold, with a guarantee of payment, to investors worldwide. In addition, the two companies also guarantee mortgages and pay owners of the loans when there is a default.
SIZE OF INVESTMENTS
The two companies hold some of the loans they purchase and securities they bundle in their investment portfolios. Fannie Mae said its portfolio was $736.9 billion in May, the highest since August 2005, while Freddie Mac said its portfolio was a record $791.8 billion in June.
Including investments and guarantees, Fannie Mae's total book of business topped $3 trillion for the first time in May, twice its size at the beginning of 2002.
With Freddie Mac's $2.2 trillion in investments and guarantees, the two have a hand in nearly half of the entire, $12 trillion national mortgage market.
WHY ARE THEY IN TROUBLE?
As the housing market continues to deteriorate, foreclosures have spread beyond subprime loans to higher-quality mortgages. The two companies have been required to write down their loans held for investment and pay out on guaranteed mortgages that default, depleting their capital.
Fannie Mae and Freddie Mac have reported more than $11 billion in losses since the housing market bubble burst.
Contrary to many other financial institutions, Fannie Mae and Freddie Mac have never been required to hold much capital relative to their assets. That leaves them with a smaller cushion for absorbing losses.
A lack of capital also indicates they are unable to buy mortgages from lenders.
THE SOLUTION?
Analysts and investors expect the two companies to raise capital.
Fannie Mae raised $7.4 billion of capital in April and May by selling common and preferred shares. Freddie Mac has announced plans to raise $5.5 billion but its ability to do that by selling shares will be difficult given the sharp drop in its stock price.
WHY DOES IT MATTER IF THEY REMAIN SOLVENT?
The two companies' presence in the struggling housing market is widely considered to be critical. They help keep mortgage rates low for many consumers, but the companies are struggling to balance growth through buying loans against rising delinquencies. The companies' debt instruments, which have a high credit rating, are widely held by banks and institutional investors around the world. A crisis in confidence could not only damage the companies but increase the cost of borrowing for the U.S. government.
IS THERE A PRECEDENT?
In 1979, Fannie Mae became insolvent as the market value of its liabilities exceeded the market value of its assets. This turned around as market factors eventually worked in the company's favor. The U.S. government did not get involved.
WHO OVERSEES THE TWO COMPANIES?
The Office of Federal Housing Enterprise Oversight, created in 1992. The agency is widely considered to lack crucial powers to oversee the companies and would be replaced by a stronger regulator under the just-passed legislation. (Compiled by Carl Bagh from Reuters source material, Editing by Jonathan Oatis)
Read more...
US Congress approves housing bill, sends to Bush
Sat Jul 26, 2008 4:11pm EDT
(Adds White House statement)
By Kevin Drawbaugh
WASHINGTON, July 26 (Reuters) - The U.S. Congress approved a massive housing market rescue bill on Saturday, offering emergency financing to mortgage titans Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz), and setting up a $300-billion fund to help hundreds of thousands of troubled homeowners.
Approved by the Senate in a 72-13 vote, the election-year rescue bill was passed by the House of Representatives on Wednesday. President George W. Bush was expected to sign it promptly, amid doubts about how much it would help.
With foreclosures at record levels, home sales sluggish and property values down, America is in its deepest housing slump since the Great Depression.
Fears that Fannie Mae and Freddie Mac, the largest U.S. mortgage companies, might collapse rattled global markets earlier this month and led the Bush administration to call for emergency measures to bolster investor confidence.
They recently lost billions of dollars on bad home loans and the stock market has whipsawed their share prices on uncertainty about whether they have enough capital.
Housing activists and scholars said this election-year bill will ease, but not end, the housing crisis.
"We have a housing market going into cardiac arrest. This bill is like CPR to stabilize the situation," said David Abromowitz, a senior fellow at the Center for American Progress, a think tank in Washington.
The National Community Reinvestment Coalition, an alliance of 600 community investment and development groups, estimated 2.5 million U.S. households will face foreclosure this year.
While Congress' legislation is welcome, the coalition said, it "will likely have little effect on the foreclosure crisis gripping the financial markets and economy."
HELP FOR FANNIE, FREDDIE
As private finance has retreated from the mortgage sector, the importance of Fannie Mae and Freddie Mac has grown, and they own or guarantee almost half the country's $12 trillion in outstanding home mortgage debt.
Under a provision put into the bill late in its development at the administration's urging, Fannie and Freddie could draw on a temporary line of U.S. Treasury credit or the government could buy shares in them, if they ran into trouble.
Texas Republican Sen. Kay Bailey Hutchison said the housing bill had positive aspects. But she added, "I am troubled by the inclusion of an unlimited U.S. Treasury credit line to Fannie Mae and Freddie Mac" and possible government stock purchases.
The bill establishes a $300-billion fund under the Federal Housing Administration to help distressed homeowners get more affordable, government-backed mortgages and get out from under exotic mortgages they cannot afford.
The success of the temporary fund will depend on lenders' willingness to accept losses on original loans to shift overstretched borrowers into new loans. An estimated 400,000 families could be helped by the program.
But it would not take effect until Oct. 1 and housing activists said it might not be in full operation until 2009.
Connecticut Democratic Sen. Christopher Dodd, who steered the bill through the Senate, said the FHA fund should need "four months to get it up and running." He said he would meet with agency officials to urge rapid implementation.
The bill sends about $4 billion in grants to communities to help them buy and repair foreclosed homes; offers tax breaks to spur home-buying; sets up the first national licensing system for mortgage brokers and loan officers; and raises the limit on the size of mortgages that federal agencies can guarantee.
NEW REGULATOR
The bill also creates a new regulator for the shareholder-owned companies with sharper teeth than the existing one, including power over their capital levels and over their executive compensation and internal financial controls, and with Federal Reserve consultation.
Because Fannie Mae and Freddie Mac are chartered by Congress they are often referred to as government-sponsored enterprises, which also gives them an implied government guarantee.
Senate Majority Leader Harry Reid, a Nevada Democrat, told reporters after the vote he expects the bill to be sent to the White House on Monday.
"Because of the Democratic Congress' delays and the need for action now, President Bush will sign this bill when he receives it, despite our concerns with some provisions, including nearly $4 billion to help lenders, not the homeowners this legislation is intended to serve," White House spokesman Tony Fratto said.
Both presidential contenders Barack Obama and John McCain praised the Senate's passage of the housing bill.
Illinois Democratic Sen. Obama said in a statement that the bill was "urgently needed" and represented "an important start to protecting homeowners and restoring stability to our housing market and our economy."
Sen. McCain, an Arizona Republican, "believes that relief for struggling homeowners is overdue, applauds the passage of this legislation and urges the president to sign it quickly," said McCain spokesman Taylor Griffin in a statement. (Reporting by Kevin Drawbaugh and Patrick Rucker, editing by Jackie Frank)
Read more...
(Adds White House statement)
By Kevin Drawbaugh
WASHINGTON, July 26 (Reuters) - The U.S. Congress approved a massive housing market rescue bill on Saturday, offering emergency financing to mortgage titans Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz), and setting up a $300-billion fund to help hundreds of thousands of troubled homeowners.
Approved by the Senate in a 72-13 vote, the election-year rescue bill was passed by the House of Representatives on Wednesday. President George W. Bush was expected to sign it promptly, amid doubts about how much it would help.
With foreclosures at record levels, home sales sluggish and property values down, America is in its deepest housing slump since the Great Depression.
Fears that Fannie Mae and Freddie Mac, the largest U.S. mortgage companies, might collapse rattled global markets earlier this month and led the Bush administration to call for emergency measures to bolster investor confidence.
They recently lost billions of dollars on bad home loans and the stock market has whipsawed their share prices on uncertainty about whether they have enough capital.
Housing activists and scholars said this election-year bill will ease, but not end, the housing crisis.
"We have a housing market going into cardiac arrest. This bill is like CPR to stabilize the situation," said David Abromowitz, a senior fellow at the Center for American Progress, a think tank in Washington.
The National Community Reinvestment Coalition, an alliance of 600 community investment and development groups, estimated 2.5 million U.S. households will face foreclosure this year.
While Congress' legislation is welcome, the coalition said, it "will likely have little effect on the foreclosure crisis gripping the financial markets and economy."
HELP FOR FANNIE, FREDDIE
As private finance has retreated from the mortgage sector, the importance of Fannie Mae and Freddie Mac has grown, and they own or guarantee almost half the country's $12 trillion in outstanding home mortgage debt.
Under a provision put into the bill late in its development at the administration's urging, Fannie and Freddie could draw on a temporary line of U.S. Treasury credit or the government could buy shares in them, if they ran into trouble.
Texas Republican Sen. Kay Bailey Hutchison said the housing bill had positive aspects. But she added, "I am troubled by the inclusion of an unlimited U.S. Treasury credit line to Fannie Mae and Freddie Mac" and possible government stock purchases.
The bill establishes a $300-billion fund under the Federal Housing Administration to help distressed homeowners get more affordable, government-backed mortgages and get out from under exotic mortgages they cannot afford.
The success of the temporary fund will depend on lenders' willingness to accept losses on original loans to shift overstretched borrowers into new loans. An estimated 400,000 families could be helped by the program.
But it would not take effect until Oct. 1 and housing activists said it might not be in full operation until 2009.
Connecticut Democratic Sen. Christopher Dodd, who steered the bill through the Senate, said the FHA fund should need "four months to get it up and running." He said he would meet with agency officials to urge rapid implementation.
The bill sends about $4 billion in grants to communities to help them buy and repair foreclosed homes; offers tax breaks to spur home-buying; sets up the first national licensing system for mortgage brokers and loan officers; and raises the limit on the size of mortgages that federal agencies can guarantee.
NEW REGULATOR
The bill also creates a new regulator for the shareholder-owned companies with sharper teeth than the existing one, including power over their capital levels and over their executive compensation and internal financial controls, and with Federal Reserve consultation.
Because Fannie Mae and Freddie Mac are chartered by Congress they are often referred to as government-sponsored enterprises, which also gives them an implied government guarantee.
Senate Majority Leader Harry Reid, a Nevada Democrat, told reporters after the vote he expects the bill to be sent to the White House on Monday.
"Because of the Democratic Congress' delays and the need for action now, President Bush will sign this bill when he receives it, despite our concerns with some provisions, including nearly $4 billion to help lenders, not the homeowners this legislation is intended to serve," White House spokesman Tony Fratto said.
Both presidential contenders Barack Obama and John McCain praised the Senate's passage of the housing bill.
Illinois Democratic Sen. Obama said in a statement that the bill was "urgently needed" and represented "an important start to protecting homeowners and restoring stability to our housing market and our economy."
Sen. McCain, an Arizona Republican, "believes that relief for struggling homeowners is overdue, applauds the passage of this legislation and urges the president to sign it quickly," said McCain spokesman Taylor Griffin in a statement. (Reporting by Kevin Drawbaugh and Patrick Rucker, editing by Jackie Frank)
Read more...
Apple CEO Jobs' life not in danger: report
Sat Jul 26, 2008 4:05pm EDT
LOS ANGELES (Reuters) - Apple Inc CEO Steve Jobs, who has been dogged by investor concerns about his health, does not have recurrent cancer or a life-threatening health issue, The New York Times reported on Saturday.
"While his health problems amounted to a good deal more than 'a common bug,' they weren't life-threatening and he doesn't have a recurrence of cancer," journalist Joe Nocera wrote in a column.
Nocera said he spoke to the Apple CEO about his health.
"Because the conversation was off the record, I cannot disclose what Mr. Jobs told me," Nocera said.
An Apple spokesman was not immediately available for comment.
In 2004, Jobs, 53, announced he had undergone successful surgery to remove a rare type of pancreatic cancer.
Concerns about his health roared back last month, when a thinner-than-usual Jobs introduced the latest iteration of the iPhone at a conference in San Francisco.
Apple, which first attributed the weight loss to a common bug, has said repeatedly Jobs' health is a private matter. The lack of disclosure from the company -- well-known for its secrecy -- caused investors and analysts to fret.
On Wednesday, the Times reported Jobs had told associates he was doing well and was cancer free.
Citing people close to Jobs, the article said Jobs had told associates and Apple directors he was dealing with nutritional problems in the wake of his cancer surgery and that he had had surgery this year to fix a problem contributing to his weight loss.
(Reporting by Lisa Baertlein; editing by Todd Eastham)
Read more...
LOS ANGELES (Reuters) - Apple Inc CEO Steve Jobs, who has been dogged by investor concerns about his health, does not have recurrent cancer or a life-threatening health issue, The New York Times reported on Saturday.
"While his health problems amounted to a good deal more than 'a common bug,' they weren't life-threatening and he doesn't have a recurrence of cancer," journalist Joe Nocera wrote in a column.
Nocera said he spoke to the Apple CEO about his health.
"Because the conversation was off the record, I cannot disclose what Mr. Jobs told me," Nocera said.
An Apple spokesman was not immediately available for comment.
In 2004, Jobs, 53, announced he had undergone successful surgery to remove a rare type of pancreatic cancer.
Concerns about his health roared back last month, when a thinner-than-usual Jobs introduced the latest iteration of the iPhone at a conference in San Francisco.
Apple, which first attributed the weight loss to a common bug, has said repeatedly Jobs' health is a private matter. The lack of disclosure from the company -- well-known for its secrecy -- caused investors and analysts to fret.
On Wednesday, the Times reported Jobs had told associates he was doing well and was cancer free.
Citing people close to Jobs, the article said Jobs had told associates and Apple directors he was dealing with nutritional problems in the wake of his cancer surgery and that he had had surgery this year to fix a problem contributing to his weight loss.
(Reporting by Lisa Baertlein; editing by Todd Eastham)
Read more...
Economic Calendar Summary 7/27 - 8/1
Sunday, Jul 27, 2008
| GMT | Ccy | Events | Consensus | Previous |
|---|---|---|---|---|
| 22:45 | NZD | Trade Balance (New Zealand dollars) (JUN) | -350.0M | -195.8M |
| 22:45 | NZD | Imports (New Zealand dollars) (JUN) | 3.70B | 3.92B |
| 22:45 | NZD | Exports (New Zealand dollars) (JUN) | 3.35B | 3.73B |
Monday, Jul 28, 2008
| GMT | Ccy | Events | Consensus | Previous |
|---|---|---|---|---|
| 6:10 | EUR | German GfK Consumer Confidence Survey (AUG) | 3.5 | 3.9 |
| 22:45 | NZD | Building Permits (MoM) (JUN) | -- | -42.3% |
| 23:30 | JPY | Jobless Rate (JUN) | 4.0% | 4.0% |
| 23:30 | JPY | Job-To-Applicant Ratio (JUN) | 0.91 | 0.92 |
| 23:30 | JPY | Household Spending (YoY) (JUN) | -2.8% | -3.2% |
| 23:50 | JPY | Large Retailers' Sales (JUN) | -3.4% | -2.1% |
| 23:50 | JPY | Retail Trade s.a. (MoM) (JUN) | -0.2% | 0.2% |
| 23:50 | JPY | Retail Trade (YoY) (JUN) | -0.6% | -0.2% |
Tuesday, Jul 29, 2008
| GMT | Ccy | Events | Consensus | Previous |
|---|---|---|---|---|
| 6:40 | EUR | French Consumer Confidence Indicator (JUL) | -47 | -46 |
| 6:45 | EUR | French Producer Prices (MoM) (JUN) | 0.8% | 1.3% |
| 6:45 | EUR | French Producer Prices (YoY) (JUN) | 7.3% | 6.7% |
| 6:45 | EUR | French Housing Starts (3MoY) (JUN) | -- | -21.6% |
| 6:45 | EUR | French Housing Permits (3MoY) (JUN) | -- | -19.9% |
| 8:00 | EUR | Italian Hourly Wages (MoM) (JUN) | -- | 0.6% |
| 8:00 | EUR | Italian Hourly Wages (YoY) (JUN) | -- | 3.3% |
| 8:00 | CHF | UBS Consumption Indicator (JUN) | -- | 1.91 |
| 8:30 | GBP | M4 Money Supply (MoM) (JUN F) | -- | -- |
| 8:30 | GBP | M4 Money Supply (YoY) (JUN F) | -- | 11.5% |
| 8:30 | GBP | M4 Sterling Lending (British Pound) (JUN F) | -- | 45.9B |
| 8:30 | GBP | Net Consumer Credit (British Pound) (JUN) | 1.0B | 1.4B |
| 8:30 | GBP | Net Lending Sec. on Dwellings (British Pound) (JUN) | 3.7B | 4.1B |
| 8:30 | GBP | Mortgage Approvals (JUN) | 37K | 42K |
| 13:00 | USD | S&P/CaseShiller Home Price Index (MAY) | -- | 169.9 |
| 13:00 | USD | S&P/CaseShiller Composite-20 (YoY) (MAY) | -16.0% | -15.3% |
| 14:00 | USD | Consumer Confidence (JUL) | 50 | 50.4 |
| 21:00 | USD | ABC Consumer Confidence (JUL 27) | -- | -41 |
| 23:50 | JPY | Industrial Production (MoM) (JUN P) | -1.6% | 2.8% |
| 23:50 | JPY | Industrial Production (YoY) (JUN P) | 0.6% | 1.1% |
Wednesday, Jul 30, 2008
| GMT | Ccy | Events | Consensus | Previous |
|---|---|---|---|---|
| -- | AUD | HIA New Home Sales (MoM) (JUN) | -- | -5.0% |
| -- | EUR | German Retail Sales (MoM) (JUN) | -0.5% | 1.3% |
| -- | EUR | German Retail Sales (YoY) (JUN) | -0.7% | 0.7% |
| 1:30 | AUD | Building Approvals (MoM) (JUN) | 1.0% | -6.5% |
| 1:30 | AUD | Building Approvals (YoY) (JUN) | -4.1% | 0.2% |
| 3:00 | NZD | Money Supply M3 (YoY) (JUN) | -- | 4.9% |
| 4:00 | JPY | Vehicle Production (YoY) (JUN) | -- | 6.8% |
| 8:00 | EUR | Italian Producer Price Index (MoM) (JUN) | 0.9% | 1.5% |
| 8:00 | EUR | Italian Producer Price Index (YoY) (JUN) | 8.2% | 7.5% |
| 8:00 | EUR | Bloomberg Italian Retail Purchasing Manager Index (JUL) | -- | 36.3 |
| 8:00 | EUR | Bloomberg French Retail Purchasing Manager Index (JUL) | 49 | 48.7 |
| 8:00 | EUR | Bloomberg German Retail Purchasing Manager Index (JUL) | -- | 44.9 |
| 8:00 | EUR | Bloomberg Euro-Zone Retail Purchasing Manager Index (JUL) | -- | 44.0 |
| 9:00 | EUR | Euro-Zone Economic Confidence (JUL) | 93 | 94.9 |
| 9:00 | EUR | Euro-Zone Industrial Confidence (JUL) | -7 | -5 |
| 9:00 | EUR | Euro-Zone Services Confidence (JUL) | 8 | 9 |
| 9:00 | EUR | Euro-Zone Business Climate Indicator (JUL) | -0.02 | 0.14 |
| 9:00 | EUR | Euro-Zone Consumer Confidence (JUL) | -18 | -17 |
| 9:30 | CHF | KOF Swiss Leading Indicator (JUL) | 0.95 | 1.01 |
| 11:00 | USD | MBA Mortgage Applications (JUL 25) | -- | -6.2% |
| 12:15 | USD | ADP Employment Change (JUL) | -53K | -79K |
| 12:30 | CAD | Industrial Product Price (MoM) (JUN) | 1.0% | 0.6% |
| 12:30 | CAD | Raw Materials Price Index (MoM) (JUN) | 3.0% | 3.1% |
| 23:01 | GBP | GfK Consumer Confidence Survey (JUL) | -37 | -34 |
| 23:50 | JPY | Foreign Buying Japan Stocks (Yen) (JUL 25) | -- | 333.5B |
| 23:50 | JPY | Foreign Buying Japan Bonds (Yen) (JUL 25) | -- | -297.2B |
| 23:50 | JPY | Japan Buying Foreign Stocks (Yen) (JUL 25) | -- | 71.1B |
| 23:50 | JPY | Japan Buying Foreign Bonds (Yen) (JUL 25) | -- | 172.3B |
| 1:30 | JPY | Labor Cash Earnings (YoY) (JUN) | 0.6% | 0.2% |
| 1:30 | AUD | Private Sector Credit (MoM) (JUN) | 0.6% | 0.6% |
| 1:30 | AUD | Private Sector Credit (YoY) (JUN) | 12.1% | 13.4% |
| 1:30 | AUD | Trade Balance (Australian dollars) (JUN) | -100M | -965M |
| 1:30 | AUD | Exports (Australian dollars) (MoM) (JUN) | -- | -- |
| 1:30 | AUD | Imports (Australian dollars) (MoM) (JUN) | -- | -- |
| 1:30 | AUD | Retail Sales (JUN) | 0.0% | 0.7% |
| 1:30 | AUD | Retail Sales Ex Inflation (QoQ) (2Q) | -0.1% | -0.1% |
| 3:00 | NZD | NBNZ Business Confidence (JUL) | -38.7 |
Thursday, Jul 31, 2008
| GMT | Ccy | Events | Consensus | Previous |
|---|---|---|---|---|
| 5:00 | JPY | Housing Starts (YoY) (JUN) | -17.8% | -6.5% |
| 5:00 | JPY | Annualized Housing Starts (JUN) | 1.110M | 1.072M |
| 5:00 | JPY | Construction Orders (YoY) (JUN) | -- | -25.2% |
| 5:45 | CHF | Consumer Price Index (MoM) (JUL) | -0.4% | 0.2% |
| 5:45 | CHF | Consumer Price Index (YoY) (JUL) | 3.0% | 2.9% |
| 7:55 | EUR | German ILO Unemployment Change (JUL) | -20K | -38K |
| 6:00 | EUR | German ILO Unemployment Rate (JUN) | 7.4% | 7.4% |
| 8:00 | EUR | Italian Large Company Employment n.s.a. (YoY) (MAY) | -- | 0.0% |
| 9:00 | EUR | Italian Consumer Price Index (NIC incl. tobacco) (MoM) (JUL P) | 0.4% | 0.4% |
| 9:00 | EUR | Italian Consumer Price Index (NIC incl. tobacco) (YoY) (JUL P) | 4.0% | 3.8% |
| 9:00 | EUR | Italian Consumer Price Index - EU Harmonized (MoM) (JUL P) | -0.3% | 0.5% |
| 9:00 | EUR | Italian Consumer Price Index - EU Harmonized (YoY) (JUL P) | 4.2% | 4.0% |
| 9:00 | EUR | Euro-Zone Consumer Price Index Estimate (YoY) (JUL) | 4.1% | 4.0% |
| 9:00 | EUR | Euro-Zone Unemployment Rate (JUN) | 7.2% | 7.2% |
| 12:30 | CAD | Gross Domestic Product (MoM) (MAY) | 0.2% | 0.4% |
| 12:30 | USD | Gross Domestic Product (QoQ) (Annualized) (2Q A) | 2.0% | 1.0% |
| 12:30 | USD | Gross Domestic Product Price Index (2Q A) | 2.7% | 2.7% |
| 12:30 | USD | Personal Consumption (2Q A) | 1.4% | 1.1% |
| 12:30 | USD | Core Personal Consumption Expenditure (QoQ) (2Q A) | 2.0% | 2.3% |
| 12:30 | USD | Employment Cost Index (2Q) | 0.7% | 0.7% |
| 12:30 | USD | Initial Jobless Claims (JUL 26) | 390K | 406K |
| 12:30 | USD | Continuing Claims (JUL 19) | -- | 3107K |
| 13:45 | USD | Chicago Purchasing Manager (JUL) | 49.0 | 49.6 |
| 14:00 | USD | NAPM-Milwaukee (JUL) | 45 | 39 |
| 23:30 | AUD | AiG Performance of Manufacturing Index (JUL) | -- | 47 |
| 23:50 | JPY | Loans & Discounts Corp (YoY) (JUN) | -- | 1.0% |
Friday, Aug 1, 2008
| GMT | Ccy | Events | Consensus | Previous |
|---|---|---|---|---|
| 0:30 | AUD | TD Securities Inflation (MoM) (JUL) | -- | 0.5% |
| 0:30 | AUD | TD Securities Inflation (YoY) (JUL) | -- | 4.8% |
| 4:00 | USD | Domestic Vehicle Sales (JUL) | -- | -- |
| 4:00 | USD | Total Vehicle Sales (JUL) | -- | -- |
| 5:00 | JPY | Vehicle Sales (YoY) (JUL) | -- | -3.6% |
| 6:30 | AUD | RBA Commodity Index SDR (YoY) (JUL) | -- | 38.2% |
| 7:45 | EUR | Italian Purchasing Manager Index Manufacturing (JUL) | 46 | 46.9 |
| 7:50 | EUR | French Purchasing Manager Index Manufacturing (JUL F) | 47.3 | 47.3 |
| 7:55 | EUR | German Purchasing Manager Index Manufacturing (JUL F) | 50.9 | 50.9 |
| 8:00 | EUR | Euro-Zone Purchasing Manager Index Manufacturing (JUL F) | 47.5 | 47.5 |
| 8:30 | GBP | Purchasing Manager Index Manufacturing (JUL) | 45.5 | 45.8 |
| 12:30 | USD | Change in Nonfarm Payrolls (JUL) | -75k | -62k |
| 12:30 | USD | Unemployment Rate (JUL) | 5.6% | 5.5% |
| 12:30 | USD | Change in Manufacturing Payrolls (JUL) | -40K | -33K |
| 12:30 | USD | Average Hourly Earnings (MoM) (JUL) | 0.3% | 0.3% |
| 12:30 | USD | Average Hourly Earnings (YoY) (JUL) | 3.3% | 3.4% |
| 12:30 | USD | Average Weekly Hours (JUL) | 33.7 | 33.7 |
| 13:00 | USD | RPX Composite 28-Day Index (MAY) | -- | 234.41 |
| 13:00 | USD | RPX Composite 28-Day (YoY) (MAY) | -- | -14.67% |
| 14:00 | USD | ISM Manufacturing (JUL) | 49.2 | 50.2 |
| 14:00 | USD | ISM Prices Paid (JUL) | 88.0 | 91.5 |
| 14:00 | USD | Construction Spending (MoM) (JUN) | -0.3% | -0.4% |
| 16:00 | EUR | Italian New Car Registrations (YoY) (JUL) | -- | -19.5% |
| 17:00 | EUR | Italian Budget Balance (JUL) | -- | 15.8B |
| 17:00 | EUR | Italian Budget Balance (YTD) (JUL) | -- | -23.5B |
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UBS suspends U.S. fixed income head amid probes: report
Sat Jul 26, 2008 3:29pm EDT
CHICAGO (Reuters) - Swiss bank UBS AG has suspended David Shulman, head of its U.S. fixed income unit, amid state and federal probes of sales of auction-rate securities, the Wall Street Journal reported on Saturday, citing people familiar with the matter.
A spokesman for Shulman, who was also UBS's global head of municipal securities, said he was cooperating fully with UBS as it works through the matter, the newspaper reported.
On Thursday, New York State Attorney General Andrew Cuomo sued UBS, accusing it of committing a "multi-billion dollar fraud" by steering clients into auction-rate securities that became impossible to sell once the credit market tightened.
The long-term securities are issued by municipalities, student-loan companies and mutual funds, with interest rates set through weekly or monthly auctions.
The lawsuit said at least seven UBS executives dumped $21 million in auction-rate securities that they held in personal accounts as the credit market began showing signs of trouble, and that the bank continued to sell those securities.
UBS said it conducted an internal probe of alleged sales of personal holdings of auction-rate debt by its executives and found no wrongdoing.
"While UBS does not believe that there was illegal conduct by any employee, we have found cases of poor judgment by certain individuals and are evaluating appropriate disciplinary measures," the bank said last week.
Last week, UBS announced a plan to buy back as much as $3.5 billion in auction-rate securities from customers. Cuomo dismissed that offer as insufficient.
(Editing by John O'Callaghan)
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CHICAGO (Reuters) - Swiss bank UBS AG has suspended David Shulman, head of its U.S. fixed income unit, amid state and federal probes of sales of auction-rate securities, the Wall Street Journal reported on Saturday, citing people familiar with the matter.
A spokesman for Shulman, who was also UBS's global head of municipal securities, said he was cooperating fully with UBS as it works through the matter, the newspaper reported.
On Thursday, New York State Attorney General Andrew Cuomo sued UBS, accusing it of committing a "multi-billion dollar fraud" by steering clients into auction-rate securities that became impossible to sell once the credit market tightened.
The long-term securities are issued by municipalities, student-loan companies and mutual funds, with interest rates set through weekly or monthly auctions.
The lawsuit said at least seven UBS executives dumped $21 million in auction-rate securities that they held in personal accounts as the credit market began showing signs of trouble, and that the bank continued to sell those securities.
UBS said it conducted an internal probe of alleged sales of personal holdings of auction-rate debt by its executives and found no wrongdoing.
"While UBS does not believe that there was illegal conduct by any employee, we have found cases of poor judgment by certain individuals and are evaluating appropriate disciplinary measures," the bank said last week.
Last week, UBS announced a plan to buy back as much as $3.5 billion in auction-rate securities from customers. Cuomo dismissed that offer as insufficient.
(Editing by John O'Callaghan)
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Dollar Mostly Higher on Better-Than-Expected US Data
| Daily Forex Fundamentals | Written by CMS Forex | Jul 26 08 06:05 GMT | | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The dollar was mostly higher Friday following better-than-expected US economic data. US June durable-goods orders unexpectedly rose and a decline in June new-home sales was smaller than forecast, easing concern that the US economic slowdown will worsen. An unexpectedly rise in the Reuters/University of Michigan consumer sentiment index also supported the greenback. The Canadian and Australian dollars fell for a fourth day. The USD/JPY was higher, close to important resistance, as US equity prices advanced. The EUR/JPY was also higher, at important resistance, on increased risk appetite. The European currencies gained. The EUR/USD pared earlier gains on the better-than-expected US economic reports. The pair touched 1.60 in April and July but failed to penetrate this resistance. This could be a double top, indicating lower prices. Fundamentally the US economic weakness is spreading to Europe. Supports at 1.54 and 1.56 are significant. If these are broken, the pair will drop.
Financial and Economic News and CommentsUS & Canada US durable-goods orders unexpectedly rose 0.8% m/m in June to a seasonally adjusted $215.43 billion, the Commerce Department said. Excluding transportation, orders unexpectedly gained 2.0% m/m. Durable-goods orders fell 1.1% y/y, but up 6.2% y/y excluding transportation. A barometer of business equipment spending -- orders for non-defense capital goods excluding aircraft -- increased 1.4% m/m in June following May's 0.1% m/m decline. The barometer increased 3.8% y/y, indicating capital spending has not collapsed despite tight credit conditions. US new-home sales fell 0.6% m/m to an annual rate of 530,000 in June from May's upwardly revised 533,000, the Commerce Department said. The decline, the fifth in six months, was smaller than expected. Sales dropped 33.2% y/y. Sales increased in the Northeast and Midwest but declined in the South and West. At the current sales pace, the supply of unsold new homes fell to 10.0 months in June. Three months ago, the months' supply was at 11.2, the highest since 1981. The inventory of new homes fell to 426,000, down 25.4% from the peak in mid-2006. The median price of new homes sold was $230,900 in June, down 2.0% y/y. The average price of new homes sold was $298,600, down 2.6% y/y.
The Reuters/University of Michigan final index of consumer sentiment unexpectedly rose to 61.2 in July, up from a preliminary reading of 56.6 in early July and from 56.4 in June. The measure averaged 85.6 in 2007. The consumer expectations index increased to 53.5 in July from 49.2 in June. The current conditions index rose to 73.1 from 67.6. The figures showed slight improvement in US consumer confidence.
Europe The UK economy grew 0.2% q/q in Q2 2008, the slowest pace since 2001, as the UK is headed for a recession. The Q2 GDP grew 1.6% y/y, the least since 2005, preliminary data from the Office for National Statistics showed. Asia-Pacific Japan's core consumer-price index, which excludes volatile fresh food prices but includes oil prices, rose 1.9% y/y in June, in line with expectation. Excluding both food and energy, prices increased 0.1% y/y in June. The Tokyo-area core CPI, available a month before nationwide data, rose 1.6% y/y in July, the biggest increase since 1998.
FX Strategy Update
Hans Nilsson ©C2004-2005 Globicus International, Inc. and Capital Market Services, L.L.C. Any information in this report is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Capital Market Services, L.L.C. with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. Capital Market Services, L.L.C. accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this report. No part of this report may be reproduced or distributed in any manner without the permission of Capital Market Services, L.L.C. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Strong US Durable Goods Orders Gives Dollar Bulls Further Ammunition this Week, Risk Appetite Returns
| Daily Forex Fundamentals | Written by CMS Forex | Jul 26 08 06:01 GMT | | |
| JPN National Consumer Inflation Continues to Rise on Energy, Toyko CPI Undershoots Forecasts Japan's national consumer price index for June rose 2% compared to last year. It was the fastest pace in 10 years. Inflation excluding food was up 1.9%. Looking at inflation minus both food and energy, prices were up 0.1%. It's easy to see that consumers are paying more for gas and electricity. In a measure of consumer inflation around the Tokyo area, which leads the national survey by one month prices were up 1.6%, lower than expected. CPI excluding food and energy was also lower than forecast. JPN Corporate Service Price Index Rises 1.2% Year over Year in June The prices that Japanese corporations pay for services rose 1.2% in June compared to last year. May's figure was revised up as well. Transportation led the increase, climbing 6.2% even as other services like communications and advertising were down for the year. UK 2nd Quarter GDP Slows to 0.2%, Worst in 7 Years In the UK, GDP growth in the second quarter met expectations of a 0.2% quarterly increase and a 1.6% increase on a year-over-year basis. The quarterly change is the slowest pace in 7 years. The troubles that started with the financial turmoil and a housing correction have now seeped into the banking, construction and manufacturing sectors. GBP/JPY - Pound Pares Yesterday's Looses vs Yen
The Pound-Yen pair fell sharply during yesterday's session and continued falling to start today's global session on the back of weaker global stocks. Risk appetite returned prior to the NY open and the pair surged almost 270 pips from its intra-day low. This put the pair back above the level at which it started the week. Positive results from the US helped spur a rally in US stocks in today's session. US Durable Goods Orders Increase 0.8%, Beating Expectations Orders for durable goods surprised on the upside, increasing 0.8%, a positive piece of news that shows US manufacturers doing better than expected. Orders excluding transportation were up 2%, the highest this year. US New Home Sales Better Than Expected Last 2 Months Sales of new homes were down 0.6% this month, but only because the figures for the month of May were revised up modestly. For June, the annual pace of new home sales was 530K, better than expectations. US UMich Consumer Sentiment Improves to 61.2, Surprises Forecasts The UMich consumer confidence index surprised forecasts and improved to 61.2 for July's revised version. It was at 56.6 in the preliminary release. Both current and future expectations saw an increase though the gains may be a temporary bounce as consumers may have at first overestimated how poor conditions were. EUR/USD - Strong Durable Goods Orders Boosts Dollar in Today's Trading
The Euro-Dollar pair gained overnight on hawkish comments from a member of the ECB Council who said that the bank still had room to raise rates this year. The Euro tested 1.5750, but reversed course after the US orders data. The pair fell to trade near 1.57 by mid afternoon. The week has seen a strong swing in favor of the Dollar. European fundamental data was quite poor, oil prices kept falling and the crisis surrounding Fannie Mae and Freddie Mac seemed to be alleviated by a government bailout. USD/JPY - US Stocks Show Positive Signs, and Risk Appetite Returns
After a very brutal Thursday session on Wall Street, today's positive US fundamental releases helped spur a rally. The Dollar-Yen pair pared its overnight losses and was back at the 108 level which has acted as resistance recently. USD/CAD - Loonie Sinks This Week on Retail Sales, Falling Oil
The US Dollar-Canadian Dollar broke above another level of resistance at 1.0150 today, climbing to test the area near 1.02. That's a 200 pip swing since the pair tested parity on Tuesday. Falling oil prices and a weaker than expected retail sales report on Tuesday have been the main catalysts for the weakness in the Canadian Dollar. USD/ZAR - Return to Carry Trade Boosts Rand in Friday Trading
The US Dollar-South African Rand pair had a topsy-turvy week. The Dollar gained in the middle of the week on an increase in risk aversion, but with today's increase in risk appetite the Rand pared its losses and was trading back near the 7.59 area. South Africa's interest rate is at 12% currently, making it a key destination for carry trade. Next Week's Releases Important releases next week include GDP and non-farm payroll data from the US, a slew of releases from Australia including retail sales and trade balance, and data on consumer inflation from the Euro-zone. Capital Market Services, L.L.C. ©C2004-2005 Globicus International, Inc. and Capital Market Services, L.L.C. Any information in this report is based on data obtained from sources considered to be reliable, but no representations or guarantees are made by Capital Market Services, L.L.C. with regard to the accuracy of the data. The opinions and estimates contained herein constitute our best judgment at this date and time, and are subject to change without notice. Capital Market Services, L.L.C. accepts no responsibility or liability whatsoever for any expense, loss or damages arising out of, or in any way connected with, the use of all or any part of this report. No part of this report may be reproduced or distributed in any manner without the permission of Capital Market Services, L.L.C. | |
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