By Lenka Ponikelska
July 16 (Bloomberg) -- The following is a list of companies whose shares may have unusual price changes in U.K. markets today. Stock symbols are in parentheses and prices are from the last market close.
The benchmark FTSE 100 Index fell 128.5, or 2.42 percent, to 5,171.9. The FTSE All-Share Index declined 62.98, or 2.4 percent, to 2,619.04. Ireland's ISEQ Index retreated 144.49, or 3.21 percent, to 4,354.62.
U.K. Companies:
BlueBay Asset Management Plc (BBAY LN): The London-based manager of fixed-income funds that sold shares in 2006 is issuing a trading statement. The stock retreated 4.75 pence, or 2.4 percent, to 190.25.
British Energy Group Plc (BGY LN): The company appointed Gleacher Shacklock LLP as an independent financial adviser on a takeover bid from Electricite de France SA, the Daily Telegraph said, citing unidentified people familiar with the matter. The stock rose 9.5 pence, or 1.3 percent, to 715.5.
BTG Plc (BGC LN): The maker of the experimental varicose vein treatment Varisolve is issuing a trading statement. The stock added 6.5 pence, or 4 percent, to 168.75.
Cable & Wireless Plc (CW/ LN): The company is deciding whether to transfer about 1 billion pounds ($2 billion) of risks associated with its pension plan, the Times of London reported, without saying where it obtained the information. The shares fell 2.7 pence, or 1.8 percent, to 151.
Hochschild Mining Plc (HOC LN): Peru's second-largest silver producer is releasing a trading statement. The shares declined 19.5 pence, or 6.3 percent, to 289.5.
J.D. Wetherspoon Plc (JDW LN): The owner of almost 700 pubs is releasing a trading statement. The shares declined 1.25 pence, or 0.7 percent, to 174.75.
Land Securities Group Plc (LAND LN): The U.K.'s largest real-estate investment trust is releasing a trading statement. The stock fell 47 pence, or 3.9 percent, to 1,154.
Luminar Group Holdings Plc (LMR LN): The U.K.'s biggest nightclub owner is issuing a trading statement. The shares fell 8 pence, or 4 percent, to 192.
Playtech Ltd. (PTEC LN): The U.K. developer of gambling software for PartyGaming Plc and Paddy Power Plc is issuing a trading statement. The stock retreated 14.5 pence, or 2.8 percent, to 495.
Rio Tinto Group (RIO LN): The world's third-largest mining company is issuing a trading statement. The shares fell 237 pence, or 4.3 percent, to 5,220.
Wolseley Plc (WOS LN): The world's biggest distributor of plumbing and heating equipment is releasing a trading statement results. The shares declined 10 pence, or 3.33 percent, to 290.25.
To contact the reporter on this story: Lenka Ponikelska in London lponikelska1@bloomberg.net
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Wednesday, July 16, 2008
Bijou Brigitte, Continental, Volkswagen: German Equity Preview
By Nadja Brandt
July 16 (Bloomberg) -- The following companies may have unusual price changes in Germany. Stock symbols are in parentheses, and share prices are from the previous close.
The X-DAX Index rose 0.5 percent to 6,092.50. The measure, derived from trading in DAX Index futures, provides an estimate of Germany's benchmark index. The DAX fell 1.9 percent to 6,081.70.
Bayerische Motoren Werke AG (BMW GY): The ACEA European Automobile Manufacturers Association plans to release June car sales figures. BMW, the world's biggest luxury-car maker, fell 51 cents, or 1.8 percent, to 27.71 euros.
Daimler AG (DAI GY) declined 1.16 euros, or 3.1 percent, to 36.38 euros. Porsche AG (POR3 GY) dropped 2.83 euros, or 3.3 percent, to 84.32 euros. Volkswagen AG (VOW GY) increased 3.98 euros, or 2.3 percent, to 174.23 euros.
Bijou Brigitte Modische Accessories AG (BIJ GY): The discount jewelry retailer plans to hold its annual shareholders' meeting. The shares decreased 4.98 euros, or 6.3 percent, to 74.20 euros.
Continental AG (CON GY): Europe's second-biggest tire company may continue to be active after receiving an 11.2 billion euro ($17.9 billion) takeover approach from ball-bearing maker Schaeffler Group that would create the world's No. 1 car-parts supplier. The shares climbed 7.62 euros, or 12 percent, to 73.42 euros.
Medigene AG (MDG GY): The biotechnology company that stopped a clinical trial last week after a patient died plans to hold its annual shareholders' meeting. The shares rose 18 cents, or 3.7 percent, to 4.99 euros.
To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net
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July 16 (Bloomberg) -- The following companies may have unusual price changes in Germany. Stock symbols are in parentheses, and share prices are from the previous close.
The X-DAX Index rose 0.5 percent to 6,092.50. The measure, derived from trading in DAX Index futures, provides an estimate of Germany's benchmark index. The DAX fell 1.9 percent to 6,081.70.
Bayerische Motoren Werke AG (BMW GY): The ACEA European Automobile Manufacturers Association plans to release June car sales figures. BMW, the world's biggest luxury-car maker, fell 51 cents, or 1.8 percent, to 27.71 euros.
Daimler AG (DAI GY) declined 1.16 euros, or 3.1 percent, to 36.38 euros. Porsche AG (POR3 GY) dropped 2.83 euros, or 3.3 percent, to 84.32 euros. Volkswagen AG (VOW GY) increased 3.98 euros, or 2.3 percent, to 174.23 euros.
Bijou Brigitte Modische Accessories AG (BIJ GY): The discount jewelry retailer plans to hold its annual shareholders' meeting. The shares decreased 4.98 euros, or 6.3 percent, to 74.20 euros.
Continental AG (CON GY): Europe's second-biggest tire company may continue to be active after receiving an 11.2 billion euro ($17.9 billion) takeover approach from ball-bearing maker Schaeffler Group that would create the world's No. 1 car-parts supplier. The shares climbed 7.62 euros, or 12 percent, to 73.42 euros.
Medigene AG (MDG GY): The biotechnology company that stopped a clinical trial last week after a patient died plans to hold its annual shareholders' meeting. The shares rose 18 cents, or 3.7 percent, to 4.99 euros.
To contact the reporter on this story: Nadja Brandt in Los Angeles at nbrandt@bloomberg.net
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Alstom, Credit Agricole, Lafuma, Octo: French Stocks Preview
By Heather Smith
July 16 (Bloomberg) -- The following is a list of companies whose stocks may have unusual changes in Paris. Symbols are in parentheses after company names and prices are from the last close.
France's CAC 40 Index retreated 81.38, or 2 percent, to 4,061.15 in Paris, its lowest level since 2005. The SBF 120 Index slid 2.1 percent.
Air Liquide SA (AI FP): The world's largest maker of industrial gases bought Pure Helium to expand in the Middle East and said it plans to invest $1 billion in the Persian Gulf region over the next five years. The shares rose 6 cents to 81.22 euros.
Alstom SA (ALO FP): The world's third-largest power-plant builder reports first-quarter sales before the market opens in Paris. The company may say revenue rose 13 percent to 4.57 billion euros, according to the median of seven analyst estimates, on a record backlog of power and train orders. The shares gained 3 cents to 66.10 euros.
Auplata SA (ALAUP FP): The gold mining company said first- half revenue dropped 47 percent to 4.2 million euros, as output fell to 226 kilograms from 502 kilograms a year earlier. The company plans to save 4 million euros a year by cutting jobs. The shares added 28 cents, or 8.7 percent, to 3.39 euros.
Credit Agricole SA (ACA FP): France's third-biggest bank by market value said its board backs Chief Executive Officer Georges Pauget, following record losses tied to U.S. subprime mortgages. The shares fell 46 cents, or 3.9 percent, to 11.40 euros.
Dane-Elec Memory SA (DAN FP): The distributor of computer memory devices said second-quarter revenue fell 32 percent to 36.2 million euros. The company said it expects to meet its announced full-year targets. The shares dropped 1 cent, or 1.3 percent, to 77 cents.
Guyenne & Gascogne SA (GG FP): The owner of Carrefour franchise supermarkets in southwest France said first-half revenue rose 5.5 percent to 268.8 million euros. The company said it faces ``hesitant consumption'' and a ``highly competitive environment.'' The shares rose 1.75 euros, or 2.4 percent, to 74.80 euros.
Lafuma SA (LAF FP): The owner of the Millet mountaineering clothing brand reported nine-month revenue of 170.3 million euros, unchanged from year-earlier levels. The company said it expects to report a ``small increase'' in full-year sales. The shares fell 1.34 euros, or 4.7 percent, to 27.16 euros.
Oberthur Technologies (OCS FP): Europe's third-largest maker of smartcards won a contract to supply electronic passports to the Philippines. It didn't give financial details. The shares declined 13 cents, or 3 percent, to 4.15 euros.
Octo Technology SA (ALOCT FP): The computer consulting services provider said first-half revenue rose 32 percent to 6.46 million euros. The shares dropped 49 cents, or 11 percent, to 4.01 euros.
To contact the reporter on this story: Heather Smith in Paris at hsmith26@bloomberg.net.
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July 16 (Bloomberg) -- The following is a list of companies whose stocks may have unusual changes in Paris. Symbols are in parentheses after company names and prices are from the last close.
France's CAC 40 Index retreated 81.38, or 2 percent, to 4,061.15 in Paris, its lowest level since 2005. The SBF 120 Index slid 2.1 percent.
Air Liquide SA (AI FP): The world's largest maker of industrial gases bought Pure Helium to expand in the Middle East and said it plans to invest $1 billion in the Persian Gulf region over the next five years. The shares rose 6 cents to 81.22 euros.
Alstom SA (ALO FP): The world's third-largest power-plant builder reports first-quarter sales before the market opens in Paris. The company may say revenue rose 13 percent to 4.57 billion euros, according to the median of seven analyst estimates, on a record backlog of power and train orders. The shares gained 3 cents to 66.10 euros.
Auplata SA (ALAUP FP): The gold mining company said first- half revenue dropped 47 percent to 4.2 million euros, as output fell to 226 kilograms from 502 kilograms a year earlier. The company plans to save 4 million euros a year by cutting jobs. The shares added 28 cents, or 8.7 percent, to 3.39 euros.
Credit Agricole SA (ACA FP): France's third-biggest bank by market value said its board backs Chief Executive Officer Georges Pauget, following record losses tied to U.S. subprime mortgages. The shares fell 46 cents, or 3.9 percent, to 11.40 euros.
Dane-Elec Memory SA (DAN FP): The distributor of computer memory devices said second-quarter revenue fell 32 percent to 36.2 million euros. The company said it expects to meet its announced full-year targets. The shares dropped 1 cent, or 1.3 percent, to 77 cents.
Guyenne & Gascogne SA (GG FP): The owner of Carrefour franchise supermarkets in southwest France said first-half revenue rose 5.5 percent to 268.8 million euros. The company said it faces ``hesitant consumption'' and a ``highly competitive environment.'' The shares rose 1.75 euros, or 2.4 percent, to 74.80 euros.
Lafuma SA (LAF FP): The owner of the Millet mountaineering clothing brand reported nine-month revenue of 170.3 million euros, unchanged from year-earlier levels. The company said it expects to report a ``small increase'' in full-year sales. The shares fell 1.34 euros, or 4.7 percent, to 27.16 euros.
Oberthur Technologies (OCS FP): Europe's third-largest maker of smartcards won a contract to supply electronic passports to the Philippines. It didn't give financial details. The shares declined 13 cents, or 3 percent, to 4.15 euros.
Octo Technology SA (ALOCT FP): The computer consulting services provider said first-half revenue rose 32 percent to 6.46 million euros. The shares dropped 49 cents, or 11 percent, to 4.01 euros.
To contact the reporter on this story: Heather Smith in Paris at hsmith26@bloomberg.net.
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Most Asian Stocks Advance, Led by Woolworths; Cnooc Declines
By Chen Shiyin and Patrick Rial
July 16 (Bloomberg) -- Most Asian stocks rose, led by suppliers of consumer staples, after Woolworths Ltd., Australia's biggest retailer, said its fourth-quarter sales increased.
Woolworths jumped the most in four months in Sydney. China Southern Airlines Ltd. led gains among transportation companies after oil yesterday fell more than $6 a barrel. Cnooc Ltd., China's largest offshore oil producer, and Mitsubishi Corp., Japan's No. 1 trading company, declined.
``There are bargains to be found in companies that aren't swayed so easily by things like the exchange rate, commodity prices and the direction of the economy,'' said Kenji Tomida, who oversees $16 billion as chief fund manager at T&D Asset Management Co. in Tokyo. ``The drop in oil is either a boon or bane depending on your line of business.''
The MSCI Asia-Pacific Index was little changed at 130.06 at 1:15 p.m. Tokyo time, with five stocks advancing for every four that declined. The benchmark has lost 18 percent this year on signs the global economy is slowing. Federal Reserve Chairman Ben S. Bernanke said yesterday risks to growth and inflation have risen in the U.S.
Japan's Nikkei 225 Stock Average added 0.1 percent to 12,762.95, erasing an earlier loss of 0.7 percent. Australia's S&P/ASX 200 Index gained 1.1 percent. China's CSI 300 Index slumped 3.4 percent, the region's biggest drop.
To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Patrick Rial in Tokyo at prial@bloomberg.net
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Most Japanese Stocks Fall, Led by Mitsubishi on Oil Drop
By Patrick Rial
July 16 (Bloomberg) -- Most Japanese stocks fell for a fourth day, led by commodities producers, after oil posted its biggest decline in four months yesterday amid signs higher prices and slowing growth are curbing demand.
Mitsubishi Corp., Japan's largest trading company, sank the most in two weeks, while oil explorer Inpex Holdings Inc. fell to the lowest in two months. Japan Airlines Corp., which forecast a 23 percent jump in fuel costs this year, and Nippon Paper Group Inc. led gains among airlines and papermakers on speculation their costs will be reduced by declining fuel prices.
``The drop in oil is either a boon or bane depending on your line of business,'' said Kenji Tomida, who oversees $16 billion as chief fund manager at T&D Asset Management Co. in Tokyo. ``Oil has been bid up beyond levels supported by global demand and a correction is natural.''
The Nikkei 225 Stock Average dropped 6.28, or 0.1 percent, to 12,748.28 as of 1:03 p.m. in Tokyo after gaining as much as 0.5 percent. The broader Topix index slumped 2.65, or 0.2 percent, to 1,250.47. About three stocks dropped for every two that gained on the benchmark.
Japan's Topix has lost 15 percent this year amid slowing global growth and financial market uncertainty. Still, the nation's benchmark has outperformed Asia's 10 largest markets.
Crude oil fell 4.4 percent to $138.74 yesterday, its steepest percentage decline since March 19. U.S. gasoline demand decreased 5.2 percent last week, a 12th-straight drop that signaled record pump prices are changing driving habits, a MasterCard Inc. report showed.
Airlines, Chipmakers
Oil also tumbled after Federal Reserve Chairman Ben S. Bernanke said there are ``significant downside risks to the outlook for growth,'' abandoning language from an April statement that said risks to economic growth have diminished.
Mitsubishi, which generated 60 percent of its profit from commodities last year, dropped 3.4 percent to 3,160 yen, the most since July 3. Inpex, Japan's biggest oil explorer, lost 4.8 percent to 1.18 million yen, the lowest since May 2.
Japan Airlines, Asia's biggest carrier, gained 1.4 percent to 213 yen, and rival All Nippon Airways Co. added 1.6 percent to 390 yen. Nippon Paper Group Inc. jumped 3.3 percent to 281,000 yen, its best performance in two months.
Elpida Memory Inc., Japan's largest memory chipmaker, added 3.2 percent to 3,200 yen. Advantest Corp., the world's biggest maker of equipment used to test computer memory chips, rose 2 percent to 2,260 yen.
Intel Corp., the world's biggest chipmaker, reported a 25 percent increase in second-quarter profit and gave a sales forecast that topped analysts' estimates after demand grew worldwide for personal-computer processors.
U.S. Demand
Toyota Motor Corp., the world's largest automaker by value, dropped 0.4 percent to 4,660 yen after Japan's public broadcaster NHK said the company will cut its global sales target this year by 3.6 percent as rising gasoline prices and a weaker U.S. economy curb demand for its vehicles.
Denso Corp. slid 1.9 percent to 3,190 yen. The nation's largest auto parts maker may lower its sales forecast by up to 2 percent as car demand weakens, Chief Executive Nobuaki Katoh said yesterday.
Fishing companies jumped after a one-day strike yesterday by the nation's 250,000 fishermen who called for government aid to cope with rising fuel prices
Nippon Suisan Kaisha Ltd., the nation's biggest fishery by market value, rose 2.5 percent to 488 yen. Rival Maruha Nichiro Holdings Inc. gained 1.9 percent to 165 yen. The Topix Fishery, Agriculture & Forestry Index, which includes the companies among its five members, is the only gainer this year among 33 industry groups on the Topix.
Nikkei futures expiring in September were unchanged at 12,750 in Osaka and lost 0.2 percent to 12,760 in Singapore.
To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.
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Seek Stock Havens Amid China's Slump, Says BNP Fund Venture
By Zhang Shidong and Chua Kong Ho
July 16 (Bloomberg) -- China's resource and consumer-related stocks offer investment havens amid a slowing economy and rising household prices, said BNP Paribas SA's Chinese fund-management venture.
Yunnan Yuntianhua Co. and Qinghai Salt Lake Potash Co. were among the top holdings of Xu Shuang, a fund manager at Shanghai- based SYWG BNP Paribas Asset Management Co., according to her fund's quarterly portfolio report for the period ended March 31.
``We have been overweight on resource and consumer-related stocks this year,'' Xu said in an interview yesterday.
Chinese stocks have declined on speculation a glut of shares emerging from lock-ups following a reform program will overwhelm demand, and measures by the government to combat the fastest inflation in more than a decade will erode profit. The economy probably slowed for a fourth-straight quarter as exports cooled, according to a Bloomberg News survey of economists.
The CSI 300 Index, which tracks shares traded in Shanghai and Shenzhen, has tumbled 51 percent since its peak in October, the worst performance among the world's 20 biggest equity markets. The benchmark index is valued at 21 times reported earnings, near the lowest in two years, according to Bloomberg data.
Valuations have fallen to levels where investment opportunities are emerging, said Xu, 29. She held more resource and consumer-related stocks than are represented by the benchmark and cut the proportion of financial shares in the SYWG BNP Paribas Shengli Selected Securities Investment Fund. The 1.8 billion-yuan ($264 million) fund has lost 29 percent this year, compared with a 44 percent slump in the CSI 300 Index.
Top Holdings
Yuntianhua, a fertilizer producer based in China's southern Yunnan province, gained 26 percent this year before trading was suspended on March 21 pending a business revamp.
Qinghai Salt Lake, a maker of potassium chloride products, added 13 percent before a trading halt that started on June 25. Its shares could benefit if the government relaxes control over fertilizer prices, said Xu.
``There are still gaps between domestic and international prices for energy and other items,'' she said. ``The increase in refined-oil prices indicates the government may allow prices of other items to rise.''
China raised gasoline prices by 17 percent and diesel prices by 18 percent last month to counter the rising cost of crude oil for domestic refiners. Crude oil reached a record $147.27 a barrel on July 11.
Set up in 2004, SYWG BNP Paribas now has five open-end funds under management with 20 billion yuan in total assets, according to its Web site. The asset management unit of BNP Paribas has a one-third stake in the venture and Shenyin & Wanguo Securities Co. owns the remainder.
To contact the reporters on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net; Chua Kong Ho in Shanghai at Kchua6@bloomberg.net
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July 16 (Bloomberg) -- China's resource and consumer-related stocks offer investment havens amid a slowing economy and rising household prices, said BNP Paribas SA's Chinese fund-management venture.
Yunnan Yuntianhua Co. and Qinghai Salt Lake Potash Co. were among the top holdings of Xu Shuang, a fund manager at Shanghai- based SYWG BNP Paribas Asset Management Co., according to her fund's quarterly portfolio report for the period ended March 31.
``We have been overweight on resource and consumer-related stocks this year,'' Xu said in an interview yesterday.
Chinese stocks have declined on speculation a glut of shares emerging from lock-ups following a reform program will overwhelm demand, and measures by the government to combat the fastest inflation in more than a decade will erode profit. The economy probably slowed for a fourth-straight quarter as exports cooled, according to a Bloomberg News survey of economists.
The CSI 300 Index, which tracks shares traded in Shanghai and Shenzhen, has tumbled 51 percent since its peak in October, the worst performance among the world's 20 biggest equity markets. The benchmark index is valued at 21 times reported earnings, near the lowest in two years, according to Bloomberg data.
Valuations have fallen to levels where investment opportunities are emerging, said Xu, 29. She held more resource and consumer-related stocks than are represented by the benchmark and cut the proportion of financial shares in the SYWG BNP Paribas Shengli Selected Securities Investment Fund. The 1.8 billion-yuan ($264 million) fund has lost 29 percent this year, compared with a 44 percent slump in the CSI 300 Index.
Top Holdings
Yuntianhua, a fertilizer producer based in China's southern Yunnan province, gained 26 percent this year before trading was suspended on March 21 pending a business revamp.
Qinghai Salt Lake, a maker of potassium chloride products, added 13 percent before a trading halt that started on June 25. Its shares could benefit if the government relaxes control over fertilizer prices, said Xu.
``There are still gaps between domestic and international prices for energy and other items,'' she said. ``The increase in refined-oil prices indicates the government may allow prices of other items to rise.''
China raised gasoline prices by 17 percent and diesel prices by 18 percent last month to counter the rising cost of crude oil for domestic refiners. Crude oil reached a record $147.27 a barrel on July 11.
Set up in 2004, SYWG BNP Paribas now has five open-end funds under management with 20 billion yuan in total assets, according to its Web site. The asset management unit of BNP Paribas has a one-third stake in the venture and Shenyin & Wanguo Securities Co. owns the remainder.
To contact the reporters on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net; Chua Kong Ho in Shanghai at Kchua6@bloomberg.net
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China's Stocks Fall for a Second Day; Financials Lead Decline
By Chua Kong Ho
July 16 (Bloomberg) -- China's stocks fell for a second day after state media said domestic output expanded at a slower pace in the first six months and the head of the U.S. central bank warned of increased risks to the world's largest economy.
China Merchants Bank Co. led financial shares lower. China Petroleum & Chemical Corp., the country's largest refiner, and Air China Ltd. rose after crude oil retreated by more than $6 a barrel yesterday.
``There's a wall of worry to get over,'' said Adam Tejpaul, Hong Kong-based head of Asia investments at JPMorgan Private Bank, which oversees about $400 billion. ``There's no reason to believe what's happening in the U.S. won't happen here in Asia.''
The CSI 300 Index, which tracks shares traded in Shanghai and Shenzhen, fell 95.88, or 3.4 percent, to 2,757.10 at the 11:30 a.m. local-time break, capping a two-day, 7.4 percent decline. A measure of financial stocks accounting for 43 percent of today's drop. Only 11 of the benchmark index's 300 constituents rose.
China's economic growth slowed in the first six months of this year, state-run Xinhua News Agency reported yesterday, citing Zhang Ping, head of the National Development and Reform Commission. Federal Reserve Chairman Ben S. Bernanke yesterday said the risks of an economic slowdown in the U.S. are increasing.
Merchants Bank declined 4.5 percent to 21.90 yuan. Shanghai Pudong Development Bank Co., whose shareholders include Citigroup Inc., slumped 5.3 percent to 20.67 yuan.
Consumer Prices
Expansion of the world's fourth-largest economy slowed to 10.6 percent in the first quarter from a year earlier, after a pace of 11.9 percent in 2007, the fastest in 13 years. The government is scheduled to release second-quarter consumer prices and growth statistics tomorrow.
``Banks have a close correlation to economic growth,'' said Xu Shuang, a fund manager at Shanghai-based SYWG BNP Paribas Asset Management Co., which manages $2.9 billion. ``Their earnings may have peaked in the first half.''
China Petroleum, also known as Sinopec, gained 0.9 percent to 10.30 yuan on speculation cheaper oil will reduce losses at its refinery business. China Southern Airlines Co., Asia's biggest carrier by passenger numbers, added 0.5 percent to 7.75 yuan.
Crude oil fell $6.44 a barrel, or 4.4 percent, to $138.74 a barrel yesterday due to concern a slower U.S. economy will curtail demand.
The Shanghai Composite Index, a measure of stocks on the larger of the nation's two exchanges, fell 2.4 percent to 2,713.07. The Shenzhen Composite Index dropped 3.4 percent.
The following shares also rose or fell in China. Stock symbols are in parentheses after company names:
Power producers: Huaneng Power International Inc. (600011 CH), a unit of China's largest power producer, fell 0.29 yuan, or 4.2 percent, to 6.65. The company said it may post a loss in the first half of this year because record coal prices raised costs.
Huadian Power International Corp. (600027 CH), a unit of the country's fourth-biggest electricity producer, slid 0.20 yuan, or 4.2 percent, to 4.56. The company also said it will post first- half losses due to rising coal costs.
Shenzhen Zhongjin Lingnan Nonfemet Co. (000060 CH), a mining company, dropped 0.87 yuan, or 5.9 percent, to 13.86 after abandoning a bid for Australia's Herald Resources Ltd.
Sinotrans Air Transportation Development Co. (600270 CH), a Chinese air freight company, jumped 0.19 yuan, or 2.2 percent, to 8.78, after saying first-half profit may have doubled on gains from a stake sale of a subsidiary.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at Kchua6@bloomberg.net
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July 16 (Bloomberg) -- China's stocks fell for a second day after state media said domestic output expanded at a slower pace in the first six months and the head of the U.S. central bank warned of increased risks to the world's largest economy.
China Merchants Bank Co. led financial shares lower. China Petroleum & Chemical Corp., the country's largest refiner, and Air China Ltd. rose after crude oil retreated by more than $6 a barrel yesterday.
``There's a wall of worry to get over,'' said Adam Tejpaul, Hong Kong-based head of Asia investments at JPMorgan Private Bank, which oversees about $400 billion. ``There's no reason to believe what's happening in the U.S. won't happen here in Asia.''
The CSI 300 Index, which tracks shares traded in Shanghai and Shenzhen, fell 95.88, or 3.4 percent, to 2,757.10 at the 11:30 a.m. local-time break, capping a two-day, 7.4 percent decline. A measure of financial stocks accounting for 43 percent of today's drop. Only 11 of the benchmark index's 300 constituents rose.
China's economic growth slowed in the first six months of this year, state-run Xinhua News Agency reported yesterday, citing Zhang Ping, head of the National Development and Reform Commission. Federal Reserve Chairman Ben S. Bernanke yesterday said the risks of an economic slowdown in the U.S. are increasing.
Merchants Bank declined 4.5 percent to 21.90 yuan. Shanghai Pudong Development Bank Co., whose shareholders include Citigroup Inc., slumped 5.3 percent to 20.67 yuan.
Consumer Prices
Expansion of the world's fourth-largest economy slowed to 10.6 percent in the first quarter from a year earlier, after a pace of 11.9 percent in 2007, the fastest in 13 years. The government is scheduled to release second-quarter consumer prices and growth statistics tomorrow.
``Banks have a close correlation to economic growth,'' said Xu Shuang, a fund manager at Shanghai-based SYWG BNP Paribas Asset Management Co., which manages $2.9 billion. ``Their earnings may have peaked in the first half.''
China Petroleum, also known as Sinopec, gained 0.9 percent to 10.30 yuan on speculation cheaper oil will reduce losses at its refinery business. China Southern Airlines Co., Asia's biggest carrier by passenger numbers, added 0.5 percent to 7.75 yuan.
Crude oil fell $6.44 a barrel, or 4.4 percent, to $138.74 a barrel yesterday due to concern a slower U.S. economy will curtail demand.
The Shanghai Composite Index, a measure of stocks on the larger of the nation's two exchanges, fell 2.4 percent to 2,713.07. The Shenzhen Composite Index dropped 3.4 percent.
The following shares also rose or fell in China. Stock symbols are in parentheses after company names:
Power producers: Huaneng Power International Inc. (600011 CH), a unit of China's largest power producer, fell 0.29 yuan, or 4.2 percent, to 6.65. The company said it may post a loss in the first half of this year because record coal prices raised costs.
Huadian Power International Corp. (600027 CH), a unit of the country's fourth-biggest electricity producer, slid 0.20 yuan, or 4.2 percent, to 4.56. The company also said it will post first- half losses due to rising coal costs.
Shenzhen Zhongjin Lingnan Nonfemet Co. (000060 CH), a mining company, dropped 0.87 yuan, or 5.9 percent, to 13.86 after abandoning a bid for Australia's Herald Resources Ltd.
Sinotrans Air Transportation Development Co. (600270 CH), a Chinese air freight company, jumped 0.19 yuan, or 2.2 percent, to 8.78, after saying first-half profit may have doubled on gains from a stake sale of a subsidiary.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at Kchua6@bloomberg.net
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US Dollar Hits Record Lows: What Could Stop The Bleeding?
| Daily Forex Fundamentals | Written by DailyFX | Jul 16 08 01:35 GMT | | |
US Dollar Hits Record Lows: What Could Stop the Bleeding? The US dollar hit a record low against the Euro as risk aversion continues to seep through the global markets. Stock markets have sold off around the world on the fear that another financial market crisis could be right around the corner. Despite the Federal Reserve and US Treasury's attempts to assuage the markets, traders are skeptical about whether the proposals they have offered and the measures that they have taken thus far are enough. The primary theme across the markets is a reduction of risk. The sharp intraday reversal in oil prices was due entirely to one bank taking risk off the table as most commodity market bets have been to the long side. The CBOE's Volatility Index (VIX) also continues to climb, confirming that traders are nervous. In his testimony on the economy and monetary policy, Bernanke grew more concerned about growth but remained critical of inflationary pressures. He expects growth in the second half of the year to be 'appreciably below trend' as weakness continues to hit various sectors of the US economy. Retail sales last month was much weaker than the market expected, with spending rising by only 0.1 percent. Stripping out gasoline receipts, retail sales actually dropped 0.5 percent. Discretionary spending has been seriously hurt by higher gasoline prices and a weak labor market, forcing consumers to cut back on purchases of cars, electronics, furniture and even food. However underscoring the Fed's difficulties continues to be strong inflationary pressures. Last month, producer prices grew by the fastest pace on an annualized basis since 1981. The troubles in the financial sector have extended beyond Fannie Mae and Freddie Mac - the bigger fear right now is a repeat of IndyMac and Bear Stearns. Given current market conditions, forget about a rate hike this year. It is time for Bernanke to shift his focus from inflation back to supporting the financial markets and growth. What could stop the bleeding in the US dollar? A big surprise from the US government. At the end of the day, the Bush Administration will come up with something. It is clear that the government's priority is to return stability to the financial markets. President Bush said this morning that the government has the power to expedite a recovery. Bernanke added that additional stimulus must be timely, albeit temporary. What the Administration needs to do is to restore confidence in the US financial markets and banking sector. Viable long term solutions include nationalization of the GSEs, give debt holders a haircut on rates, or a managed bailout in which stockholders, creditors, taxpayers jointly share the bill (these proposals are from Nouriel Roubini's RGE Monitor). Meanwhile expect more potentially market moving US data tomorrow including consumer prices, industrial production, and the minutes from the last Fed meeting. Euro Hits Record Highs as German Investor Confidence Falls to a Record Low It is ironic that the euro soared to a record high even though German investor confidence hit a record low. The German ZEW survey, of analyst sentiment has been skewed towards pessimism for months, but the combination of the recent rate hike, surging inflationary pressures and weaker domestic and global growth sent confidence tumbling. Eurozone growth should weaken further in the coming weeks, especially with the Euro climbing to a new record high. The ECB has been mute about intervention but if oil prices continue to fall, they will probably start entertaining the notion. However for the time being, it is the US dollar that is driving the currency pair. Eurozone consumer prices are due for release tomorrow and Switzerland will be releasing their retail sales report. The market expects consumer spending to rise, which could lift the Swiss Franc for no other reason than the fact that the country could be doing comparably better than many other G10 nations. British Pound Hits 3 Month High on Record CPI The British pound strengthened against the US dollar and Euro as consumer prices hit a record high. Producers are passing on their highest costs to consumers because the rise in prices is not just limited to food and energy. This was much stronger than the market expected and well above the Bank of England's 2 percent target. The annualized pace of CPI growth has now hit 3.8 percent. The BoE has already warned that inflation could rise above 4 percent. Meeting this prediction will not be enough to force the BoE to raise rates. House price growth remains near a 30 year low while retail sales took another dive in the month of June. UK labor market data is due for release tomorrow which could determine whether the British pound will hold onto its impressive gains. Australian Dollar Hits New 25 Year Highs, Bank of Canada Leaves Rates Unchanged The Australian, New Zealand and Canadian dollars continue to gain strength on bullish economic reports and US dollar weakness. The Bank of Canada left interest rates unchanged at 3 percent, which was right in line the market's expectations but the BoC grew slightly more concerned about inflationary pressures. However like the BoJ, the BoC will not be altering interest rates anytime soon because US economic weakness and the ongoing turbulence in the global financial markets are keeping their hands tied. The New Zealand dollar was one of the market's best performing currencies thanks to a sharp rise in consumer prices. CPI grew by the fastest pace in 18 years. Japanese Yen Crosses: All Under Water The volatility in US stocks has weighed on all of the Japanese Yen crosses. The Bank of Japan left interest rates unchanged at 0.50 percent, which was right in line with the market's expectations, but they cut their economic forecast and raised their inflation projections. This had no impact on the Yen crosses however, which traded primarily on the wild swings in US equities.
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Forex Exchange Morning Report
| Daily Forex Fundamentals | Written by Westpac Institutional Bank | Jul 16 08 01:12 GMT | | |||||||||||||||||||||||||||||||||||||||||||||||||||||
News And ViewsThe overnight session was a very whippy one with rumours and event risks driving equities, commodities and hence currencies in either direction through the day. In terms of order of events the main drivers were - soft German data early (driving a stronger USD), rumours Saudi will break its USD peg (driving the USD lower), an announcement by GM it is going to suspend its dividend (driving equities lower), Fed Chairman Bernanke's testimony (headlines dovish but detail more balanced), sharp declines in gold and oil driven by rumours a hedge fund was liquidating a large oil position, then an announcement that Iran will meet the EU Foreign Minister on Saturday. All up this saw the New Zealand dollar higher during the London morning, posting a high of 0.7763, before giving back ground to around 0.7715. The Australian dollar largely tracked USD direction, posting a new post float high of 0.9851 but then retreating to the 0.9775 area as oil and gold fell in NY trade. USD/JPY was sharply lower early on the softer USD and softer equities, the pair reaching a low of 104.16 before grinding back to 104.85 as DJIA climbed off the canvas. EUR/USD posted a new lifetime high of 1.6040 (up 1 cent vs late Welly trade) following the rumour Saudi would break their USD peg, but the pair later gave it all back and more (to below 1.59) as oil prices slumped from over $146/bbl to the mid-$138 region. The key point from Fed chairman Ben Bernanke in his testimony, presenting the Fed's Semiannual Monetary Policy Report to Congress, was that 'The possibility of higher energy prices, tighter credit conditions, and a still-deeper contraction in housing markets all represent significant downside risks to the outlook for growth.' This effectively supercedes the June 25 FOMC statement, which said that 'although downside risks to growth remain, they appear to have diminished somewhat'. That is a strong signal that there is no near-term intention to begin retightening monetary policy. US PPI up 1.8% in June, with gasoline prices up another 9% (as in May), and food rising 1.5%. The core rate was subdued at 0.2%, which suggests that there is no additional pressure on underlying consumer price inflation from the factory sector, despite surging commodity prices. Auto prices bounced 2.2% but that was offset by a further 1.8% fall in light truck prices. US retail sales up 0.1% in June. Retail sales lost some momentum in June, suggesting the impact of the tax rebate cheques might be fading. The core measure rose just 0.2%, following gains averaging about 1% in the first two months of Q2. In other US news: very weak but steady consumer confidence in July, consistent with last week's preliminary UoM consumer sentiment report for July; May business inventories posted a weak 0.3% gain constrained by a 0.2% fall in retail stocks; the NY Fed factory index was less weak in July at -5, and there were encouraging orders and shipments signals, although the jobs reading was very weak and price pressures intensified. The ZEW survey of 320 or so German analysts and economists fell to a new record low at -63.9 in July, adding weight to our view that the European Central Bank won't by tightening monetary policy again this year. UK CPI jumped 0.5 ppts to 3.8% yr, on its way to 4+% later this year, as now widely expected by us, the Bank of England and markets. The core rate also ticked a little higher to 1.6%, but remains well below the 2% target for the headline rate. The Bank of Canada left rates on hold at 3.0%. The statement maintained the neutral bias of the June statement, citing 'significant upside and downside risks to the Bank's base-case projection'. OutlookWe continue to like NZD/USD lower multi week especially on a TWI basis. However, yesterday's stronger than expected CPI release should hold off further rate cut expectations for now, hence the NZD is likely to range trade ahead of next week's RBNZ meeting. Events Today
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Japan's May Tertiary Industry Index: Summary (Table)
By Shizuka Muragishi
July 16 (Bloomberg) -- Following is a summary of the tertiary industry index from the Ministry of Economy, Trade and Industry in Tokyo.
===============================================================================
May April March Feb. Jan. Dec. Nov.
Weight 2008 2008 2008 2008 2008 2007 2007
===============================================================================
-----------Percent Change From Month Ago--------
[bn:WBTKR=JNTIAMOM:IND] Tertiary industry [] 100.0% -0.2% 1.9% 0.0% -1.6% 0.4% -0.5% 0.1%
3-mo. annualized n/a 1.0% -3.7% -4.2% -2.8% -0.8% -0.5% -0.7%
3-month change n/a 0.2% -0.9% -1.1% -0.7% -0.2% -0.1% -0.2%
-------------------------------------------------------------------------------
Wholesale and retail 25.8% 1.0% 1.5% 0.4% -1.0% 0.8% -0.5% -0.2%
Services 20.3% -2.3% 0.3% 3.5% -4.0% 0.6% -0.3% 1.0%
Information, comm. 9.1% -3.5% 9.7% -3.9% -1.3% 0.3% -0.4% -0.5%
Finance, insurance 8.9% 0.6% 1.3% 0.6% -3.3% 1.7% -3.2% -0.9%
Medical, health care 8.3% 0.0% 0.6% 0.8% 1.0% -1.3% -0.2% 0.3%
Transport 8.1% 0.3% 2.0% -1.3% 0.2% -1.1% 0.1% -0.5%
Real estate 6.7% -0.7% 0.9% 3.6% -4.8% 1.4% 0.8% -1.3%
===============================================================================
May April March Feb. Jan. Dec. Nov.
Weight 2008 2008 2008 2008 2008 2007 2007
===============================================================================
-----------Percent Change From Month Ago--------
Eating, accommodation 5.5% 1.0% -1.0% 1.6% -1.7% -0.6% 0.8% 1.6%
Electricity, gas 4.6% 1.7% 0.7% -7.2% 4.9% 0.2% -0.3% 0.2%
Compound services 1.5% 2.4% -1.7% 6.8% -11.2% 14.1% -6.0% 0.9%
Learning support 1.2% 1.1% -4.3% 6.6% -1.4% -1.7% 2.0% -0.3%
----------Percent Change From Year Ago----------
Tertiary Industry 100.0% -0.2% 0.7% -0.5% 1.7% 1.0% -0.1% 1.7%
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Wholesale and retail 25.8% 1.4% 2.0% 0.6% 3.2% 2.2% 0.3% 2.5%
Services 20.3% -1.3% 0.2% 0.3% -0.7% -0.1% 0.2% 1.1%
Information, comm. 9.1% 1.2% 2.7% 0.2% 3.5% 1.7% 0.4% 2.4%
Finance, insurance 8.9% -5.3% -3.2% -7.2% -4.3% -0.8% -3.4% 1.7%
Medical, health care 8.3% 1.7% 3.5% 0.8% 3.5% 0.3% -0.2% 3.2%
Transport 8.1% -0.2% 1.0% -2.3% 2.8% -0.1% -0.3% 1.0%
Real estate 6.7% 0.6% 0.4% 0.3% -0.2% 0.9% 0.0% -0.7%
Eating, accommodation 5.5% 0.6% -2.0% 1.4% 2.4% 0.6% 3.2% 2.0%
Electricity, gas 4.6% 1.4% -0.8% -0.7% 12.4% 4.6% 1.6% 3.5%
===============================================================================
May April March Feb. Jan. Dec. Nov.
Weight 2008 2008 2008 2008 2008 2007 2007
===============================================================================
----------Percent Change From Year Ago----------
Compound services 1.5% 2.4% 2.2% -1.7% 0.8% 9.1% -2.6% 0.9%
Learning support 1.2% -9.3% -1.4% -5.9% -7.5% -9.5% -12.1% -14.2%
===============================================================================
NOTE: Monthly percent changes are seasonally adjusted. Yearly are not. Tertiary index measures activity in retail, communications and other service industries.
SOURCE: Ministry of Economy, Trade and Industry
To contact the reporter on this story: Shizuka Muragishi in Tokyo at smuragishi@bloomberg.net
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Australian Leading Index's Annual Growth Slows to 2.1% in May
By Jacob Greber
July 16 (Bloomberg) -- Annual growth of an Australian index of leading indicators slowed in May, adding to signs borrowing costs at a 12-year high and surging gasoline prices are cooling the nation's 17-year economic expansion.
The annualized growth rate of the leading economic index slowed to 2.1 percent from 2.6 percent in April, Westpac Banking Corp. and the Melbourne Institute said in Sydney today. The leading index was little changed at 255.6 in May.
Today's report underlines central bank Governor Glenn Steven's view that four interest rate increases since August last year are restraining the economy and will slow inflation. Households and companies have pared back spending amid record gasoline costs and tumbling stock markets.
``Spending growth in the Australian economy will slow substantially through 2008 and 2009,'' said Bill Evans, chief economist at Westpac in Sydney.
Westpac's leading index tracks eight gauges of economic activity, such as company profits and productivity, to give an indication of how the economy will perform over the next three to nine months.
The Reserve Bank's current policy settings are ``exerting the appropriate degree of restraint,'' members of the bank's board said in minutes of their July 1 meeting, released in Sydney yesterday.
Stevens raised the benchmark rate to 7.25 percent in March, the fourth increase in seven months, to cool the fastest inflation in almost 17 years.
Rate Relief
Today's report ``is broadly consistent with the Reserve Bank of Australia's own forecasts and indicates that it will not need to further raise interest rates in this cycle,'' Westpac's Evans said.
Over the past six months, the growth rate of the leading index has dropped to 2.1 percent from 6.5 percent, Evans said today. ``That's the sharpest six-month fall in the growth rate since February 2001,'' when the government introduced a consumption tax, known as the goods and services tax.
Westpac's coincident index, a measure of the current state of the economy, rose 0.2 percent in May. The annual growth rate of the coincident index slowed to 3 percent from 3.2 percent.
To contact the reporter for this story: Jacob Greber in Sydney at jgreber@bloomberg.net
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July 16 (Bloomberg) -- Annual growth of an Australian index of leading indicators slowed in May, adding to signs borrowing costs at a 12-year high and surging gasoline prices are cooling the nation's 17-year economic expansion.
The annualized growth rate of the leading economic index slowed to 2.1 percent from 2.6 percent in April, Westpac Banking Corp. and the Melbourne Institute said in Sydney today. The leading index was little changed at 255.6 in May.
Today's report underlines central bank Governor Glenn Steven's view that four interest rate increases since August last year are restraining the economy and will slow inflation. Households and companies have pared back spending amid record gasoline costs and tumbling stock markets.
``Spending growth in the Australian economy will slow substantially through 2008 and 2009,'' said Bill Evans, chief economist at Westpac in Sydney.
Westpac's leading index tracks eight gauges of economic activity, such as company profits and productivity, to give an indication of how the economy will perform over the next three to nine months.
The Reserve Bank's current policy settings are ``exerting the appropriate degree of restraint,'' members of the bank's board said in minutes of their July 1 meeting, released in Sydney yesterday.
Stevens raised the benchmark rate to 7.25 percent in March, the fourth increase in seven months, to cool the fastest inflation in almost 17 years.
Rate Relief
Today's report ``is broadly consistent with the Reserve Bank of Australia's own forecasts and indicates that it will not need to further raise interest rates in this cycle,'' Westpac's Evans said.
Over the past six months, the growth rate of the leading index has dropped to 2.1 percent from 6.5 percent, Evans said today. ``That's the sharpest six-month fall in the growth rate since February 2001,'' when the government introduced a consumption tax, known as the goods and services tax.
Westpac's coincident index, a measure of the current state of the economy, rose 0.2 percent in May. The annual growth rate of the coincident index slowed to 3 percent from 3.2 percent.
To contact the reporter for this story: Jacob Greber in Sydney at jgreber@bloomberg.net
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Fewer New Zealanders Borrowing as Food, Fuel, Credit Costs Rise
By Tracy Withers
July 16 (Bloomberg) -- Fewer New Zealand consumers applied for loans in the first half of the year amid rising fuel, food and credit costs, according to a report from the nation's biggest credit-checking company.
Applications for personal loans fell 16 percent in the six months ended June 30 from a year earlier, Veda Advantage Ltd. said in a statement e-mailed to Bloomberg News. Hire purchase applications fell 9.5 percent and consumer credit enquiries declined 10 percent, the Sydney-based company said.
Fewer consumers are borrowing to buy homes, cars and household appliances, adding to signs the economy was in recession in the first half of 2008. Second-quarter consumer confidence fell to a 17-year low as gasoline prices jumped 27 percent from a year earlier.
``Households are having to contend with steep rises in living costs, which has led to a decline in purchases of big- ticket goods that typically require hire purchases and personal loans,'' said Veda's New Zealand director John Roberts.
First-half home loan applications slumped 21 percent from a year earlier, Veda said. Applications fell 10 percent in June from May.
``Things look quite bleak for the property market,'' said Roberts. ``The reality is that things are likely to get worse before they get better.''
Sales of New Zealand houses slumped for a fourth straight month in June to a 16-year low, according to the Real Estate Institute. Prices are falling and buyers are staying out of the market, realtors say.
About 7 percent more consumers are defaulting on loans, hire purchases or bills for telephone and Internet services, Roberts said.
New Zealand's economy contracted 0.3 percent in the first quarter. At least eight of 13 economists surveyed by Bloomberg News expect it also shrank in the three months ended June 30, putting New Zealand in its first recession since 1998.
To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net.
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July 16 (Bloomberg) -- Fewer New Zealand consumers applied for loans in the first half of the year amid rising fuel, food and credit costs, according to a report from the nation's biggest credit-checking company.
Applications for personal loans fell 16 percent in the six months ended June 30 from a year earlier, Veda Advantage Ltd. said in a statement e-mailed to Bloomberg News. Hire purchase applications fell 9.5 percent and consumer credit enquiries declined 10 percent, the Sydney-based company said.
Fewer consumers are borrowing to buy homes, cars and household appliances, adding to signs the economy was in recession in the first half of 2008. Second-quarter consumer confidence fell to a 17-year low as gasoline prices jumped 27 percent from a year earlier.
``Households are having to contend with steep rises in living costs, which has led to a decline in purchases of big- ticket goods that typically require hire purchases and personal loans,'' said Veda's New Zealand director John Roberts.
First-half home loan applications slumped 21 percent from a year earlier, Veda said. Applications fell 10 percent in June from May.
``Things look quite bleak for the property market,'' said Roberts. ``The reality is that things are likely to get worse before they get better.''
Sales of New Zealand houses slumped for a fourth straight month in June to a 16-year low, according to the Real Estate Institute. Prices are falling and buyers are staying out of the market, realtors say.
About 7 percent more consumers are defaulting on loans, hire purchases or bills for telephone and Internet services, Roberts said.
New Zealand's economy contracted 0.3 percent in the first quarter. At least eight of 13 economists surveyed by Bloomberg News expect it also shrank in the three months ended June 30, putting New Zealand in its first recession since 1998.
To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net.
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Dropouts Gates, Jobs, Dell Unworthy to Get U.K. Brainiac Visa
By Robert Hutton
July 16 (Bloomberg) -- Gordon Brown says he wants the brightest people in the world to come live in Britain. Unless they are Bill Gates, Steve Jobs and Michael Dell, all of whom would be excluded under the government's new immigration rules.
The founders of Microsoft Corp., Apple Inc. and Dell Inc. are ineligible for the top tier of the U.K. visa system, the one aimed at attracting highly skilled people, because they lack college degrees. The rules, which didn't require Parliament's approval, are under attack by lawyers and lawmakers who say the country risks excluding the kinds of people it needs.
``It's a dumbing-down,'' said Sophie Barrett-Brown, head of the Immigration Law Practitioners Association. ``If you're a 20- something American with a bachelor's degree and you earn 26,000 pounds ($52,000) a year, you're a high-skilled migrant. You can come in, but Bill Gates can't.''
Britain is trying to reduce the inflow of immigrants after the arrival of more than 500,000 a year for the past five years. The record numbers since the Labour government took office 11 years ago have put a strain on schools, police and hospitals.
This year and next, the government is replacing a labyrinth of 80 separate categories under which immigrants could apply for a visa with a five-tier, points-based system. It gives credit for education and previous wages, though not for accomplishment in life or potential. It is the biggest change to the immigration system since the 1960s.
Entrepreneurs and Degrees
``Everyone wants degrees, but many entrepreneurs don't have degrees,'' said Keith Vaz, a Labour lawmaker who heads Parliament's Home Affairs Committee, which oversees domestic policy. He pointed out that U.K. entrepreneur Richard Branson quit school at age 16 to start a magazine and now is worth 3.1 billion pounds, controlling London-based Virgin Group Ltd.'s aircraft, phones, Internet and train network.
Tier 1, which opened in February, is aimed at doctors, academics, computer experts and bankers. Later this year, Tier 2 and Tier 5 will begin, covering employees with job offers and temporary workers. Tier 4 for students begins in 2009, and Tier 3, for low skilled workers, after that.
Brown, 57, says he has reason to clamp down. The number of immigrant work permits has risen fourfold since Labour took office, to 145,100 in 2006 from 58,200 in 1996. Unions say foreigners are replacing British workers in the job market, and families are feeling more competition for places in schools.
``Unskilled workers coming from countries outside the European Union who are not needed by our economy will not be welcome,'' Brown told a panel of lawmakers on July 3. ``The points system deals with exactly the problem.''
Tier 1 Rules
Britain's immigrants already are among the most educated entering industrial nations. In 2007, more than 38 percent had university degrees, compared with 27 percent in France, 26 percent in the U.S. and 17 percent in Germany, according to the Paris-based Organization for Economic Cooperation and Development.
Under the new rules, applicants for Tier 1 ``highly skilled'' visas must have a college degree, no matter what else they've done. They also must show past earnings and speak and write English to the standard of a C-grade at the GCSE exams that British 16-year-olds take. More than a third of pupils in the U.K. failed to reach that standard in 2007.
Bill Gates dropped out of Harvard in his junior year to build Microsoft, now based in Redmond, Washington. Steve Jobs dropped out of Reed College, in Portland, Oregon, after one semester, and founded Apple, in Cupertino, California, at the age of 21. Michael Dell dropped out of the University of Texas in Austin to found the computer manufacturer that bears his name in neighboring Round Rock.
Successful Dropouts
A Home Office spokesman, asked about the case of college dropouts, pointed to the country's investor and entrepreneur visas. People coming in as entrepreneurs must put at least 200,000 pounds into a British business and aren't allowed to take another job. Those arriving as investors must maintain at least 1 million pounds in U.K. stocks and bonds.
The Confederation of British Industry has raised concerns about other parts of the new system, especially Tier 2 for migrants with job offers. Those measures require employers to monitor migrant staff, reporting unexplained absences from work and even a change in their mobile phone numbers.
``It's very nit-picky,'' said Neil Carberry, CBI's head of pensions and employment, arguing that the restrictions are aimed at a nonexistent problem. ``Tier 1 and 2 isn't where people abscond.''
Vaz's committee, drawing members from each of the three main political parties, this month began an investigation into complaints that the new system will hurt businesses.
``It was introduced without proper consultation of the very communities that were going to be affected,'' Vaz said. ``They're just worried about numbers. The problem is with illegal immigration. The way they're dealing with it is trying to stop legal immigration.''
To contact the reporter on this story: Robert Hutton in London at rhutton1@bloomberg.net
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July 16 (Bloomberg) -- Gordon Brown says he wants the brightest people in the world to come live in Britain. Unless they are Bill Gates, Steve Jobs and Michael Dell, all of whom would be excluded under the government's new immigration rules.
The founders of Microsoft Corp., Apple Inc. and Dell Inc. are ineligible for the top tier of the U.K. visa system, the one aimed at attracting highly skilled people, because they lack college degrees. The rules, which didn't require Parliament's approval, are under attack by lawyers and lawmakers who say the country risks excluding the kinds of people it needs.
``It's a dumbing-down,'' said Sophie Barrett-Brown, head of the Immigration Law Practitioners Association. ``If you're a 20- something American with a bachelor's degree and you earn 26,000 pounds ($52,000) a year, you're a high-skilled migrant. You can come in, but Bill Gates can't.''
Britain is trying to reduce the inflow of immigrants after the arrival of more than 500,000 a year for the past five years. The record numbers since the Labour government took office 11 years ago have put a strain on schools, police and hospitals.
This year and next, the government is replacing a labyrinth of 80 separate categories under which immigrants could apply for a visa with a five-tier, points-based system. It gives credit for education and previous wages, though not for accomplishment in life or potential. It is the biggest change to the immigration system since the 1960s.
Entrepreneurs and Degrees
``Everyone wants degrees, but many entrepreneurs don't have degrees,'' said Keith Vaz, a Labour lawmaker who heads Parliament's Home Affairs Committee, which oversees domestic policy. He pointed out that U.K. entrepreneur Richard Branson quit school at age 16 to start a magazine and now is worth 3.1 billion pounds, controlling London-based Virgin Group Ltd.'s aircraft, phones, Internet and train network.
Tier 1, which opened in February, is aimed at doctors, academics, computer experts and bankers. Later this year, Tier 2 and Tier 5 will begin, covering employees with job offers and temporary workers. Tier 4 for students begins in 2009, and Tier 3, for low skilled workers, after that.
Brown, 57, says he has reason to clamp down. The number of immigrant work permits has risen fourfold since Labour took office, to 145,100 in 2006 from 58,200 in 1996. Unions say foreigners are replacing British workers in the job market, and families are feeling more competition for places in schools.
``Unskilled workers coming from countries outside the European Union who are not needed by our economy will not be welcome,'' Brown told a panel of lawmakers on July 3. ``The points system deals with exactly the problem.''
Tier 1 Rules
Britain's immigrants already are among the most educated entering industrial nations. In 2007, more than 38 percent had university degrees, compared with 27 percent in France, 26 percent in the U.S. and 17 percent in Germany, according to the Paris-based Organization for Economic Cooperation and Development.
Under the new rules, applicants for Tier 1 ``highly skilled'' visas must have a college degree, no matter what else they've done. They also must show past earnings and speak and write English to the standard of a C-grade at the GCSE exams that British 16-year-olds take. More than a third of pupils in the U.K. failed to reach that standard in 2007.
Bill Gates dropped out of Harvard in his junior year to build Microsoft, now based in Redmond, Washington. Steve Jobs dropped out of Reed College, in Portland, Oregon, after one semester, and founded Apple, in Cupertino, California, at the age of 21. Michael Dell dropped out of the University of Texas in Austin to found the computer manufacturer that bears his name in neighboring Round Rock.
Successful Dropouts
A Home Office spokesman, asked about the case of college dropouts, pointed to the country's investor and entrepreneur visas. People coming in as entrepreneurs must put at least 200,000 pounds into a British business and aren't allowed to take another job. Those arriving as investors must maintain at least 1 million pounds in U.K. stocks and bonds.
The Confederation of British Industry has raised concerns about other parts of the new system, especially Tier 2 for migrants with job offers. Those measures require employers to monitor migrant staff, reporting unexplained absences from work and even a change in their mobile phone numbers.
``It's very nit-picky,'' said Neil Carberry, CBI's head of pensions and employment, arguing that the restrictions are aimed at a nonexistent problem. ``Tier 1 and 2 isn't where people abscond.''
Vaz's committee, drawing members from each of the three main political parties, this month began an investigation into complaints that the new system will hurt businesses.
``It was introduced without proper consultation of the very communities that were going to be affected,'' Vaz said. ``They're just worried about numbers. The problem is with illegal immigration. The way they're dealing with it is trying to stop legal immigration.''
To contact the reporter on this story: Robert Hutton in London at rhutton1@bloomberg.net
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South Korean Store Sales Increase for a Sixth Month
By Seyoon Kim
July 16 (Bloomberg) -- South Korea's department store sales rose for a sixth straight month in June on purchases of women's clothing, luxury goods and food.
Sales at the nation's three biggest chains climbed 11.2 percent from a year earlier, following May's 11.3 percent gain, the Ministry of Knowledge Economy said in Gwacheon today.
Lotte Shopping Co. and smaller retailers offered bigger bargains in June to attract customers, who are contending with record debt levels and soaring living costs. Sales at discount stores fell for the first time in four months, the report also showed, an indication that rising prices have constrained spending by lower-income earners.
``Department store sales rose mainly because of more promotional events but it's hard to say consumption is solid,'' said Kim Jae Eun, an economist at Hana Daetoo Securities Co. in Seoul. ``Rising oil prices are costing consumers more and crimping confidence.''
South Korean policy makers have stepped up their focus on reining in inflation after surging prices sent confidence among households tumbling to a seven-year low.
A jump in oil and food costs stoked the biggest increase in consumer prices in a decade in June and prompted the government to cut its 2008 economic-growth forecast to 4.7 percent from 6 percent.
Shares, Currency
The Kospi stock index rose 1.3 percent to 1,529.50 at 9:33 a.m. in Seoul from a 15-month low yesterday. The nation's currency gained 0.2 percent to 1,006.20 against the U.S. dollar.
South Korea's benchmark stock index has dropped 19 percent in 2008 on concern rising prices are damping domestic demand just as slowing global growth curbs exports. Shares in Lotte Shopping, the nation's largest department store operator, have fallen 28 percent this year, and those in Hyundai Department Store Co., the second biggest, have slumped 34 percent.
Sales at discount stores dropped 1.9 percent last month from a year earlier as spending on clothing slumped, today's report showed.
In contrast, spending on luxury goods at department stores gained 37.1 percent in June and sales of women's suits climbed 7.7 percent. Food sales through department stores rose 12.6 percent from a year earlier.
To contact the reporter on this story: Seyoon Kim in Seoul at skim7@bloomberg.net
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Japan Service Demand Falls as Consumers Pare Spending
By Toru Fujioka
July 16 (Bloomberg) -- Japan's demand for services fell in May as increases in prices for food and energy outstripped wage growth, forcing consumers to cut back.
The tertiary index, a gauge of money households and businesses spend on phone calls, power and transportation, decreased 0.2 percent from April, the Trade Ministry said today in Tokyo. The median estimate of 36 economists surveyed by Bloomberg News was for a 0.2 percent gain.
Personal spending, which accounts for more than half of the economy, is weakening as a stalling job market and surging inflation discourage consumers. Households are the most pessimistic they've been in at least 26 years, a report last week showed.
``Demand for services is weakening against the backdrop of stalled wage growth and rising costs,'' said Mamoru Yamazaki, chief Japan economist at RBS Securities in Tokyo. ``There's a higher chance that consumer spending will start to decline.''
Prices of frequently purchased goods from milk to eggs climbed 2.4 percent in May, 10 times more than the pace of wage growth in the month. The ratio of job vacancies per applicant is the lowest since February 2005.
Aeon Co., Japan's largest supermarket operator, said its net income dropped by 20 percent in the three months ended in May because of weak clothing sales.
`Unnecessary Spending'
``We can see that consumers are trying to cut unnecessary spending because of a tougher labor environment and sluggish wage growth,'' said Kyohei Morita, chief economist at Barclays Capital in Tokyo. ``Demand for services will remain weak as households become increasingly conservative about spending and rising prices reduce their real income.''
Corporate demand was also a drag on the index as higher prices crimped profits and left firms with less to spend. Civil engineering and architectural services fell in May, according to Katsuya Shimura, a spokesman at the trade ministry.
Gasoline price at a record 181.5 a liter ($6.54 a gallon) may also be affecting households' travel plans. JTB Corp., a travel agency, said summer travel will probably fall at the fastest pace in 15 years this season.
Some 25 percent of people planning trips are still undecided on their destination, an ``unusually'' high proportion because higher energy prices are limiting their options, according to Yasoji Kato, a spokesman at JTB.
To contact the reporter on this story: Toru Fujioka in Tokyo at tfujioka1@bloomberg.net
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July 16 (Bloomberg) -- Japan's demand for services fell in May as increases in prices for food and energy outstripped wage growth, forcing consumers to cut back.
The tertiary index, a gauge of money households and businesses spend on phone calls, power and transportation, decreased 0.2 percent from April, the Trade Ministry said today in Tokyo. The median estimate of 36 economists surveyed by Bloomberg News was for a 0.2 percent gain.
Personal spending, which accounts for more than half of the economy, is weakening as a stalling job market and surging inflation discourage consumers. Households are the most pessimistic they've been in at least 26 years, a report last week showed.
``Demand for services is weakening against the backdrop of stalled wage growth and rising costs,'' said Mamoru Yamazaki, chief Japan economist at RBS Securities in Tokyo. ``There's a higher chance that consumer spending will start to decline.''
Prices of frequently purchased goods from milk to eggs climbed 2.4 percent in May, 10 times more than the pace of wage growth in the month. The ratio of job vacancies per applicant is the lowest since February 2005.
Aeon Co., Japan's largest supermarket operator, said its net income dropped by 20 percent in the three months ended in May because of weak clothing sales.
`Unnecessary Spending'
``We can see that consumers are trying to cut unnecessary spending because of a tougher labor environment and sluggish wage growth,'' said Kyohei Morita, chief economist at Barclays Capital in Tokyo. ``Demand for services will remain weak as households become increasingly conservative about spending and rising prices reduce their real income.''
Corporate demand was also a drag on the index as higher prices crimped profits and left firms with less to spend. Civil engineering and architectural services fell in May, according to Katsuya Shimura, a spokesman at the trade ministry.
Gasoline price at a record 181.5 a liter ($6.54 a gallon) may also be affecting households' travel plans. JTB Corp., a travel agency, said summer travel will probably fall at the fastest pace in 15 years this season.
Some 25 percent of people planning trips are still undecided on their destination, an ``unusually'' high proportion because higher energy prices are limiting their options, according to Yasoji Kato, a spokesman at JTB.
To contact the reporter on this story: Toru Fujioka in Tokyo at tfujioka1@bloomberg.net
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Australian Dollar Near 25-Year High; N.Z. Dollar Little Changed
By Ron Harui and Candice Zachariahs
July 16 (Bloomberg) -- The Australian dollar traded near a 25-year high and the New Zealand dollar was close to its strongest in six weeks on speculation the nations will maintain their interest-rate advantage over the U.S.
Australia's currency may advance for a fifth day and New Zealand's may gain for a sixth as Federal Reserve Chairman Ben S. Bernanke said there are ``significant downside risks'' to U.S. economic growth, adding to signs the Fed may delay raising interest rates. The yield difference between 10-year Australian and U.S. bonds widened 4 basis points to 2.52 percentage points.
``There's little prospect of the Reserve Bank of Australia cutting rates any time soon so that's keeping yields attractive,'' said Tony Morriss, a senior currency strategist at Australia & New Zealand Banking Group Ltd. in Sydney.
Australia's currency rose to 98.49 U.S. cents, the highest since January 1983, before trading at 98.09 cents as of 11:27 a.m. in Sydney from 98.27 cents late in Asia yesterday. The currency, known as the Aussie, bought 102.82 yen from 102.88 yen.
The New Zealand dollar traded at 77.22 U.S. cents from 77.23 cents in Asia yesterday. It earlier reached 77.60 cents, the strongest since June 5. The currency, known as the kiwi, bought 80.95 yen from 80.85 yen.
The Aussie is the third-best performer among the 16 most- traded currencies in the past five days as futures traders reduced bets the Fed will increase borrowing costs this year, while Reserve Bank of Australia Governor Glenn Stevens may indicate in a speech at 1:05 p.m. in Sydney that he plans to keep rates at a 12-year high.
Fed's Bernanke
Benchmark interest rates of 7.25 percent in Australia and 8.25 percent in New Zealand compare with 2 percent in the U.S. and 0.5 percent in Japan, making them popular destinations for international investors seeking higher returns.
Bernanke told the Senate Banking Committee yesterday that economic growth and inflation risks are both increasing. His shift reflects renewed turmoil in markets that forced the Treasury and Fed to mount a rescue of mortgage companies Fannie Mae and Freddie Mac this week.
Fed funds futures on the Chicago Board of Trade show a 7 percent chance that the Fed will increase the 2 percent target lending rate at its Aug. 5 meeting, compared with 77 percent odds a month ago.
The New Zealand dollar may extend its 2 percent gain in the past five days as accelerating inflation prompted traders to pare bets the central bank will lower interest rates this month.
The consumer price index rose 1.6 percent in the second quarter, Statistics New Zealand said in Wellington yesterday. That's the fastest pace in 18 years. The median estimate of 12 economists surveyed by Bloomberg News was for 1.4 percent.
`July Less Likely'
``There are still expectations for rate cuts in New Zealand,'' said Nick Bennenbroek, head of currency strategy at Wells Fargo Bank in New York. ``But the kind of numbers we got makes some of the most aggressive expectations of a rate cut in July less likely.''
Traders see a 48 percent chance the Reserve Bank of New Zealand will cut its benchmark rate by a quarter-percentage point at its next meeting on July 24, compared with 50 percent odds yesterday, according to a Credit Suisse Group index based on interest-rate swaps.
The yield on the 10-year Australian government bond rose 3 basis points to 6.34 percent, while the two-year yield fell 3 basis points to 6.58 percent. A basis point is equivalent to 0.01 percentage point.
New Zealand's government debt was little changed. The yield on the 10-year note was 6.03 percent, and the three-year bond yield was 6.09 percent. Yields move inversely to prices.
To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net; Candice Zachariahs in New York at czachariahs1@bloomberg.net.
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India Rupee to Fall on Current-Account Gap, Brown Brothers Says
By Anoop Agrawal
July 16 (Bloomberg) -- India's rupee is likely to weaken 1.8 percent against the dollar by the end of the year as costlier fuel and food imports cause the current-account deficit to widen, according to Brown Brothers Harriman & Co.
The rupee slumped 7.5 percent in the past three months, the second-worst performance among the 10 most-traded currencies in Asia excluding Japan, and touched a 15-month low of 43.4750 per dollar on July 1, according to data compiled by Bloomberg. It closed at 43.235 yesterday in Mumbai and Win Thin, senior currency strategist at Brown Brothers Harriman, forecasts the rupee will be 43.5 by Sept. 30 and 44 by Dec. 31.
``The current-account position is weak and still vulnerable because of the high commodity prices,'' New York-based Thin said in an interview. ``The present level of the deficit is enough to keep the currency under pressure in the rest of the year.''
India's current-account deficit, which includes trade and investment flows, widened to a record $17.4 billion in the financial year ended March 31, from $9.8 billion in the previous 12 months, as the cost of crude oil jumped 54 percent. Since then the price of crude in New York has surged a further 37 percent to $138.88 a barrel, boosting the fuel bill of a nation that imports about three-quarters of the oil it consumes.
Thin predicts the current-account deficit will widen to as much as 4 percent of India's gross domestic product this year. The value of the goods and services produced in India reached $1.07 trillion in the last financial year.
To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.
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July 16 (Bloomberg) -- India's rupee is likely to weaken 1.8 percent against the dollar by the end of the year as costlier fuel and food imports cause the current-account deficit to widen, according to Brown Brothers Harriman & Co.
The rupee slumped 7.5 percent in the past three months, the second-worst performance among the 10 most-traded currencies in Asia excluding Japan, and touched a 15-month low of 43.4750 per dollar on July 1, according to data compiled by Bloomberg. It closed at 43.235 yesterday in Mumbai and Win Thin, senior currency strategist at Brown Brothers Harriman, forecasts the rupee will be 43.5 by Sept. 30 and 44 by Dec. 31.
``The current-account position is weak and still vulnerable because of the high commodity prices,'' New York-based Thin said in an interview. ``The present level of the deficit is enough to keep the currency under pressure in the rest of the year.''
India's current-account deficit, which includes trade and investment flows, widened to a record $17.4 billion in the financial year ended March 31, from $9.8 billion in the previous 12 months, as the cost of crude oil jumped 54 percent. Since then the price of crude in New York has surged a further 37 percent to $138.88 a barrel, boosting the fuel bill of a nation that imports about three-quarters of the oil it consumes.
Thin predicts the current-account deficit will widen to as much as 4 percent of India's gross domestic product this year. The value of the goods and services produced in India reached $1.07 trillion in the last financial year.
To contact the reporter on this story: Anoop Agrawal in Mumbai at aagrawal8@bloomberg.net.
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Dollar Trades Near Record Low as U.S. Banks May Report Losses
By Stanley White and Kosuke Goto
July 16 (Bloomberg) -- The dollar traded near a record low against the euro on speculation U.S. banks will report further losses this week, eroding confidence in the financial system of the world's largest economy.
The U.S. currency was also near a six-week low versus the yen before quarterly earnings from Wells Fargo & Co., Merrill Lynch & Co., JPMorgan Chase and Citigroup Inc. that may show banks are losing more money after the U.S. subprime mortgage collapse. Federal Reserve Chairman Ben S. Bernanke yesterday abandoned his view that economic risks had diminished as regulators announced plans of a rescue for Freddie Mac and Fannie Mae, the two largest buyers of U.S. mortgages.
``Dollar selling will continue for some time,'' said Tsutomu Soma, a bond and currency dealer at Okasan Securities Co. in Tokyo. ``Bank earnings will likely highlight that the U.S. financial system isn't stable. A protracted downturn in U.S. economic growth is all but unavoidable.''
The dollar traded at $1.5910 per euro at 10:11 a.m. in Tokyo, after touching $1.6038 yesterday, the weakest since the 15-nation currency's 1999 debut. The dollar bought 104.80 yen, after reaching 104.16 yesterday, the lowest since June 3. Japan's currency traded at 166.74 per euro from 166.65. The dollar may fall to $1.5920 per euro and 104.40 yen today, Soma forecast.
The Australian dollar bought 98.06 U.S. cents, near a 25- year high of 98.49 cents, on speculation Reserve Bank of Australia Governor Glenn Stevens will indicate in a speech today he plans to keep interest rates at a 12-year high of 7.25 percent.
Bank Earnings
Wells Fargo, the second-biggest U.S. mortgage lender, reports quarterly earnings later today. JPMorgan Chase and Merrill announce results tomorrow, while Citigroup, the biggest U.S. bank, publishes its on July 18.
Global banks and securities firms have reported losses of about $400 billion due to rising defaults on mortgages for U.S. homeowners with poor credit, according to Bloomberg data.
In testimony before the Senate Banking Committee yesterday, Bernanke abandoned his June assessment that the threat of an economic downturn has diminished, telling lawmakers that growth and inflation risks are increasing. Treasury Secretary Henry Paulson told the panel that the government would buy shares in Fannie and Freddie ``only if necessary.'' Bernanke speaks again before the House Financial Services Committee at 10 a.m. in Washington today.
More Bearish
``Bernanke has become a bit more bearish on the U.S. economy than before,'' said Yuji Kameoka, a senior economist and currency analyst in Tokyo at Daiwa Institute of Research, a unit of Japan's second-largest brokerage. ``This reduces expectations for a Fed rate increases this year and is currently weighing on the dollar.''
The U.S. currency may move between 104 yen and 106 yen, and $1.58 and $1.60 a euro this week, he said.
Federal funds futures on the Chicago Board of Trade show a 5 percent chance that the Fed will increase the 2 percent target lending rate at its Aug. 5 meeting, compared with 77 percent odds a month ago.
Dollar Index
The Dollar Index, which tracks the greenback against the currencies of six U.S. trading partners, fell for a sixth day, dropping 0.2 percent to 71.73.
The U.S. currency has given up most of the gains made versus the euro since July 3, when European Central Bank President Jean-Claude Trichet said he had ``no bias'' on future interest-rate moves. The dollar strengthened 0.6 percent to $1.5706 per euro that week. It has since slumped 1.2 percent on concern that losses at Fannie Mae and Freddie Mac will deepen.
U.S. consumer prices probably rose at an annual rate of 4.5 percent in June, the most since September 2005, according to the median forecast of 35 economists surveyed by Bloomberg News. The Labor Department's report is due at 8:30 a.m. New York time.
``Consumer price data aren't likely to support the dollar,'' Masafumi Yamamoto, head of foreign exchange strategy for Japan at Royal Bank of Scotland Plc in Tokyo and a former Bank of Japan currency trader, wrote in a research note today. ``It will serve as a reminder that the U.S. faces stagflationary risks, making it difficult to conduct monetary policy.''
To contact the reporters on this story: Stanley White in Tokyo at swhite28@bloomberg.net Kosuke Goto in Tokyo at kgoto2@bloomberg.net
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Samsung Life, Kyobo Shun U.S., European Debt for Korea Bonds
By Kim Kyoungwha
July 16 (Bloomberg) -- South Korean life insurers are shunning U.S. and European corporate bonds because of a rising risk of default and plowing money into domestic debt.
Samsung Life Insurance Co., Korea's biggest insurer, is diverting $500 million into 10-year government bonds, said Koo Sung Hoon, head of investments at the company. Kyobo Life Insurance Co., the third-largest, is reconsidering plans to invest the equivalent of $1 billion overseas and may put the money to work at home instead, said Cho Ok Rae, chief of international investments.
``Risks are increasing so we are now rebalancing our fixed- income portfolios, which means we are selling corporate bonds we hold in the U.S. and Europe,'' Koo said this month in an interview in Seoul. ``Corporate default risk will rise.''
The cost of protecting U.S. and European corporate bonds increased in the past two months on concern credit losses at banks will widen, slowing global economic growth. Financial firms worldwide have accumulated about $416 billion in writedowns and losses as the U.S. housing slump deepens. Samsung Life sold all of its U.S. regional bank debt last year, said Koo.
South Korean debt returned 1.9 percent this year, according to an index compiled by HSBC Holdings Plc. U.S. corporate bonds delivered a loss of 1.4 percent, Merrill Lynch & Co.'s Corporate and High Yield Master index shows.
``There's a long, long way to go for the U.S.,'' said Koo. ``Credit ratings are being downgraded and it's very risky for debt holders.''
Credit Risk
Samsung holds $14 billion of foreign assets, mainly corporate debt with credit ratings of A+ on average, according to Koo. That's the fifth-highest investment grade at Standard & Poor's. More than 60 percent of new investment was in domestic 10-year government bonds, he said.
Credit-default swaps on the Markit CDX North America Investment Grade Index of 125 companies increased 2 basis points to 142.5 yesterday, according to broker Phoenix Partners Group in New York. Contracts on the Markit iTraxx Europe index of 125 companies with investment-grade ratings rose 1.5 basis points to 103.75, according to JPMorgan Chase & Co. prices.
Credit-default swaps are financial instruments used to speculate on a company's ability to repay debt. They pay the buyer face value in exchange for the underlying securities or the cash equivalent should a borrower fail to adhere to debt agreements. A rise indicates deterioration in the perception of credit quality. A basis point on a credit-default swap contract protecting $10 million of debt from default for five years is equivalent to $1,000 a year.
Diverting Funds
Korean bonds are ``more stable and safer'' than overseas debt even after inflation drove yields to near the highest since 2002, Kyobo's Cho said in an interview yesterday in Seoul.
``We are diverting some of more than 1 trillion won ($1 billion) allocated for overseas investments into the local market,'' Cho said. ``The entire amount may go to local bonds should the second half outlook for overseas markets stay grim.''
The yield on the South Korea's 5.5 percent 10-year note due in September 2017 climbed as high as 6.19 percent this month, before falling to 6.10 percent yesterday. Inflation accelerated to an annual rate of 5.5 percent in June, the fastest in a decade.
Korea Life Insurance Co., the nation's second-largest insurer, intends to ``gradually'' increase funds invested abroad, Kim Yong Hoan, head of global investments, said in an interview in Seoul on July 11.
`Tap Opportunities'
``We are continuing to tap opportunities in overseas markets through hedge funds'' to achieve an annual return of 7 percent, said Kim, whose company has 50 trillion won in assets and 2 trillion won overseas. It will raise money going into hedge funds by $500 million, he said.
Samsung intends to buy $40 million in global distressed assets, including asset-backed securities, over the next five years, said Koo. It favors local debt for most of its new investments.
``We are bearish'' on U.S. and European bonds, he said. ``Even though the liquidity issue is almost over in the financial sector, the impact on consumption and employment will leave the U.S. economy with much slower growth.''
To contact the reporter on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net
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Most Asian Stocks Rise; Chipmakers Advance After Intel Sales
By Chen Shiyin
July 16 (Bloomberg) -- Asian stocks rose, led by chipmakers, after Intel Corp. forecast sales that topped analysts' estimates.
Samsung Electronics Co., Asia's largest chipmaker, climbed the most in two weeks in Seoul and Hynix Semiconductor Inc. advanced for the first time this week.
The MSCI Asia-Pacific Index was little changed at 130.02 at 9:27 a.m. Tokyo time, with about three stocks rising for each that declined. The benchmark, which dropped to its lowest since November 2006 yesterday, has lost 18 percent this year.
Japan's Nikkei 225 Stock Average gained 0.3 percent to 12,796.01. Benchmark indexes also rose in Australia and South Korea.
U.S. stocks dropped yesterday, sending the Standard & Poor's 500 Index to the lowest since 2005, after a drop in crude-oil prices dragged down energy shares and investors lost confidence in the government's plan to rescue Fannie Mae and Freddie Mac.
More than $11 trillion has been wiped off the value of global equities this year as about $415 billion in credit-related losses prolong the global economy's slump and rising commodity prices stoke inflation.
To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net
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Australia Stocks: BHP, Herald, Rio, Seven, Woodside, Woolworths
By Shani Raja
July 16 (Bloomberg) -- The S&P/ASX 200 Index rose 13 points, or 0.3 percent, to 4,828.70 at 10:25 a.m. in Sydney. The broader All Ordinaries Index advanced 6 points, or 0.1 percent, to 4,916.10.
Mining shares: BHP Billiton Ltd. (BHP AU), the world's largest mining company, declined 67 cents, or 1.7 percent to A$38.69, the lowest since April 4. Rio Tinto Group (RIO AU), the world's third-largest mining company, slipped A$2.55, or 2.1 percent, to A$119.45, the lowest since March 26.
A measure of six metals traded on the London Metal Exchange fell 2 percent. Zinc declined 8.2 percent and copper 1.6 percent. Separately, strategists at Merrill Lynch & Co. and Morgan Stanley said investors should sell commodities stocks because a slowing global economy will cut demand for raw materials such as copper, nickel and corn.
Gold producers: Newcrest Mining Ltd. (NCM AU) rose 56 cents, or 1.7 percent, to A$33.39. Gold rose, extending a rally to the highest price since March, as slumping equities and the sliding dollar sparked demand for the precious metal as an alternative investment. St. Barbara Ltd. (SBM AU) rose 2 cents, or 5 percent, to 32 cents, the index's fourth-biggest gainer.
Oil companies: Woodside Petroleum Ltd. (WPL AU), Australia's second-largest oil and gas producer, lost A$1.37, or 2.2 percent, to A$60.06, the most since July 8. Santos Ltd. (STO AU) dropped 42 cents, or 2.2 percent, to A$18.50.
Crude tumbled more than $6 a barrel in New York amid concern a slower U.S. economy will curtail demand.
Herald Resources Ltd. (HER AU) fell 8 cents, or 2.8 percent, to A$2.83, the most since May 27. Shenzhen Zhongjin Lingnan Nonfemet Co. and PT Aneka Tambang abandoned their A$553 million ($541 million) bid for Herald, allowing PT Bumi Resources, Indonesia's biggest coal producer, to take control of the mineral explorer.
Seven Network Ltd. (SEV AU) rose 22 cents, or 2.7 percent, to A$7.74, the most since July 9. Seven will make more than A$20 million from its television coverage of the Beijing Olympic Games, the Australian Financial Review said, citing industry sources it didn't name.
Virgin Blue Holdings Ltd. (VBA AU), Australia's second- biggest airline, rose for a third day, soaring 8 cents, or 13 percent, to 66 cents, the most in more than three years. Toll Holdings Ltd. said July 14 it plans to spin off its stake in Virgin Blue, exiting a business inherited in its 2006 acquisition of Patrick Corp. Richard Branson's Virgin Group Ltd., which started the carrier, will keep its 25.5 percent stake, making it the airline's biggest holder.
Woolworths Ltd. (WOW AU), Australia's biggest retailer, gained 93 cents, or 4 percent, to A$24.39, the most since March 25. The company said sales rose to A$11.4 billion in the three months ended June 29, from A$9.8 billion a year earlier.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
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July 16 (Bloomberg) -- The S&P/ASX 200 Index rose 13 points, or 0.3 percent, to 4,828.70 at 10:25 a.m. in Sydney. The broader All Ordinaries Index advanced 6 points, or 0.1 percent, to 4,916.10.
Mining shares: BHP Billiton Ltd. (BHP AU), the world's largest mining company, declined 67 cents, or 1.7 percent to A$38.69, the lowest since April 4. Rio Tinto Group (RIO AU), the world's third-largest mining company, slipped A$2.55, or 2.1 percent, to A$119.45, the lowest since March 26.
A measure of six metals traded on the London Metal Exchange fell 2 percent. Zinc declined 8.2 percent and copper 1.6 percent. Separately, strategists at Merrill Lynch & Co. and Morgan Stanley said investors should sell commodities stocks because a slowing global economy will cut demand for raw materials such as copper, nickel and corn.
Gold producers: Newcrest Mining Ltd. (NCM AU) rose 56 cents, or 1.7 percent, to A$33.39. Gold rose, extending a rally to the highest price since March, as slumping equities and the sliding dollar sparked demand for the precious metal as an alternative investment. St. Barbara Ltd. (SBM AU) rose 2 cents, or 5 percent, to 32 cents, the index's fourth-biggest gainer.
Oil companies: Woodside Petroleum Ltd. (WPL AU), Australia's second-largest oil and gas producer, lost A$1.37, or 2.2 percent, to A$60.06, the most since July 8. Santos Ltd. (STO AU) dropped 42 cents, or 2.2 percent, to A$18.50.
Crude tumbled more than $6 a barrel in New York amid concern a slower U.S. economy will curtail demand.
Herald Resources Ltd. (HER AU) fell 8 cents, or 2.8 percent, to A$2.83, the most since May 27. Shenzhen Zhongjin Lingnan Nonfemet Co. and PT Aneka Tambang abandoned their A$553 million ($541 million) bid for Herald, allowing PT Bumi Resources, Indonesia's biggest coal producer, to take control of the mineral explorer.
Seven Network Ltd. (SEV AU) rose 22 cents, or 2.7 percent, to A$7.74, the most since July 9. Seven will make more than A$20 million from its television coverage of the Beijing Olympic Games, the Australian Financial Review said, citing industry sources it didn't name.
Virgin Blue Holdings Ltd. (VBA AU), Australia's second- biggest airline, rose for a third day, soaring 8 cents, or 13 percent, to 66 cents, the most in more than three years. Toll Holdings Ltd. said July 14 it plans to spin off its stake in Virgin Blue, exiting a business inherited in its 2006 acquisition of Patrick Corp. Richard Branson's Virgin Group Ltd., which started the carrier, will keep its 25.5 percent stake, making it the airline's biggest holder.
Woolworths Ltd. (WOW AU), Australia's biggest retailer, gained 93 cents, or 4 percent, to A$24.39, the most since March 25. The company said sales rose to A$11.4 billion in the three months ended June 29, from A$9.8 billion a year earlier.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
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Japan's Transport Shares Gain as Oil Tumbles; Mitsubishi Drops
By Patrick Rial
July 16 (Bloomberg) -- Japanese transportation shares advanced after oil posted its biggest decline in four months amid signs higher prices are curbing demand. Mitsubishi Corp. led commodities producers lower.
Japan Airlines Corp., which forecast a 23 percent surge in fuel costs this year, rose for the first time in four days. Mitsubishi Corp., Japan's largest trading company, sank the most in a week.
The Nikkei 225 Stock Average was little changed at 12,750.07 as of 9:13 a.m. in Tokyo. The broader Topix index slipped 1.19, or 0.1 percent, to 1,251.93.
Nikkei futures expiring in September added 0.1 percent to 12,770 in Osaka and lost 0.2 percent to 12,760 in Singapore.
To contact the reporter for this story: Patrick Rial in Tokyo at prial@bloomberg.net.
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China's Stocks Fall Most in 2 Weeks, Led by Ping An Insurance
By Chua Kong Ho
July 15 (Bloomberg) -- China's stocks fell the most in two weeks, led by Ping An Insurance (Group) Co. on concern that global credit-market losses will curb growth and dent profits.
Ping An, China's second-biggest insurer, and Shanghai Pudong Development Bank Co., part-owned by Citigroup Inc., led declines. Poly Real Estate Group Co. was among developers that plunged the maximum 10 percent. The U.S. government's plan to provide central bank money to rescue Fannie Mae and Freddie Mac, which buy or finance almost half of the $12 trillion of U.S. mortgages, failed to stem a plunge in financial stocks.
``Freddie and Fannie are basically quasi-sovereigns and many Asian governments and banks hold their debt,'' said Leslie Phang, the Singapore-based head of investments at the private- clients unit of Schroders Plc, which oversees about $260 billion globally. ``Nobody expected them to blow up and it's shaken the foundations.''
The CSI 300 Index, which tracks stocks on both the Shanghai and Shenzhen exchanges, lost 122.90, of 4.1 percent, to 2,852.98 at the 3 p.m. local time close, the most since June 27. All 10 industry groups declined, with financial shares contributing the most to the retreat. Stocks also slipped on speculation that China's economy slowed for a fourth-straight quarter.
Unlimited Stakes
Fannie Mae and Freddie Mac lost about half of their market value last week on concern about their ability to refinance debt. U.S. Treasury Secretary Henry Paulson has asked Congress for authority to buy unlimited stakes in the two companies and to provide loans to them.
Taiwan's Cathay Financial Holding Co. said it held more than $6 billion in debt issued by the two U.S. companies and the Nikkei reported the three-largest Japanese banks held $44 billion. U.S. financial stocks slumped yesterday after initially rallying on the Treasury Department's bailout plan.
Ping An lost 6 percent to 40.61 yuan, while rival China Life Insurance Co. also dropped 6 percent to 23.81 yuan. Shanghai Pudong declined 7.1 percent to 21.83 yuan.
Industrial & Commercial Bank of China Ltd., the country's largest, retreated 3.4 percent to 4.88 yuan. China Construction Bank Corp. declined 4.1 percent, while Bank of China Ltd. slid 3.1 percent.
Poly Real Estate Group, China's second-largest developer by market value, slumped to 15.12. COFCO Property (Group) Co. slid the maximum 10 percent to 11.22 yuan, as did Gemdale Corp., to 8.98 yuan.
China's Economy
China's economy grew 10.3 percent in the second quarter from a year earlier, according to the median estimate in a Bloomberg News survey of economists, after expanding 10.6 percent in the prior three months. The official announcement is due on July 17 in Beijing.
Citic Securities Co., the nation's biggest brokerage, dropped 5.9 percent to 23.03 yuan, after its competitor Guoyuan Securities Co. joined Hong Yuan Securities Co. in posting a plunge in first-half profit. Beijing-based Guoyuan slumped 6.5 percent to 16.53 yuan.
The benchmark CSI 300 Index has slumped 51 percent from its Oct. 16 record. The value of securities transactions in June was 62 percent lower compared to a year earlier. A measure of financial stocks contributed to more than half of the index's decline today.
The Shanghai Composite Index, a measure of shares traded in the city, lost 3.4 percent to 2,779.45. The Shenzhen Composite Index dropped 3.2 percent.
The following shares also rose or fell in China. Stock symbols are in parentheses after company names.
Chongqing Iron & Steel Co. (601005 CH), a steelmaker, gained 3.3 percent to 5.59 yuan, after saying first-half profit will rise more than 60 percent.
Shandong Gold Mining Co. (600547 CH), the third-largest Chinese bullion producer, added 2 percent to 65.59 yuan. First- half profit probably jumped more than fivefold because of higher output and lower costs, it said.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at Kchua6@bloomberg.net
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July 15 (Bloomberg) -- China's stocks fell the most in two weeks, led by Ping An Insurance (Group) Co. on concern that global credit-market losses will curb growth and dent profits.
Ping An, China's second-biggest insurer, and Shanghai Pudong Development Bank Co., part-owned by Citigroup Inc., led declines. Poly Real Estate Group Co. was among developers that plunged the maximum 10 percent. The U.S. government's plan to provide central bank money to rescue Fannie Mae and Freddie Mac, which buy or finance almost half of the $12 trillion of U.S. mortgages, failed to stem a plunge in financial stocks.
``Freddie and Fannie are basically quasi-sovereigns and many Asian governments and banks hold their debt,'' said Leslie Phang, the Singapore-based head of investments at the private- clients unit of Schroders Plc, which oversees about $260 billion globally. ``Nobody expected them to blow up and it's shaken the foundations.''
The CSI 300 Index, which tracks stocks on both the Shanghai and Shenzhen exchanges, lost 122.90, of 4.1 percent, to 2,852.98 at the 3 p.m. local time close, the most since June 27. All 10 industry groups declined, with financial shares contributing the most to the retreat. Stocks also slipped on speculation that China's economy slowed for a fourth-straight quarter.
Unlimited Stakes
Fannie Mae and Freddie Mac lost about half of their market value last week on concern about their ability to refinance debt. U.S. Treasury Secretary Henry Paulson has asked Congress for authority to buy unlimited stakes in the two companies and to provide loans to them.
Taiwan's Cathay Financial Holding Co. said it held more than $6 billion in debt issued by the two U.S. companies and the Nikkei reported the three-largest Japanese banks held $44 billion. U.S. financial stocks slumped yesterday after initially rallying on the Treasury Department's bailout plan.
Ping An lost 6 percent to 40.61 yuan, while rival China Life Insurance Co. also dropped 6 percent to 23.81 yuan. Shanghai Pudong declined 7.1 percent to 21.83 yuan.
Industrial & Commercial Bank of China Ltd., the country's largest, retreated 3.4 percent to 4.88 yuan. China Construction Bank Corp. declined 4.1 percent, while Bank of China Ltd. slid 3.1 percent.
Poly Real Estate Group, China's second-largest developer by market value, slumped to 15.12. COFCO Property (Group) Co. slid the maximum 10 percent to 11.22 yuan, as did Gemdale Corp., to 8.98 yuan.
China's Economy
China's economy grew 10.3 percent in the second quarter from a year earlier, according to the median estimate in a Bloomberg News survey of economists, after expanding 10.6 percent in the prior three months. The official announcement is due on July 17 in Beijing.
Citic Securities Co., the nation's biggest brokerage, dropped 5.9 percent to 23.03 yuan, after its competitor Guoyuan Securities Co. joined Hong Yuan Securities Co. in posting a plunge in first-half profit. Beijing-based Guoyuan slumped 6.5 percent to 16.53 yuan.
The benchmark CSI 300 Index has slumped 51 percent from its Oct. 16 record. The value of securities transactions in June was 62 percent lower compared to a year earlier. A measure of financial stocks contributed to more than half of the index's decline today.
The Shanghai Composite Index, a measure of shares traded in the city, lost 3.4 percent to 2,779.45. The Shenzhen Composite Index dropped 3.2 percent.
The following shares also rose or fell in China. Stock symbols are in parentheses after company names.
Chongqing Iron & Steel Co. (601005 CH), a steelmaker, gained 3.3 percent to 5.59 yuan, after saying first-half profit will rise more than 60 percent.
Shandong Gold Mining Co. (600547 CH), the third-largest Chinese bullion producer, added 2 percent to 65.59 yuan. First- half profit probably jumped more than fivefold because of higher output and lower costs, it said.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at Kchua6@bloomberg.net
Read more...
Fed boss warns of growth 'risks'
(BBC News)The boss of the US Federal Reserve Ben Bernanke has warned that there are still "downside risks" to growth in the world's largest economy.
He also said that the "upside risks" to inflation had intensified recently.
Separately, President Bush said the economy was "remarkably resilient", but urged Congress to pass legislation to help homeowners as soon as possible.
He defended plans to help mortgage firms Fannie Mae and Freddie Mac but denied they were being bailed out.
'Special case'
Plans to offer the mortgage institutions Fannie Mae and Freddie Mac access to fresh credit, if called upon, were necessary to stabilise the mortgage market and boost confidence, President Bush said.
However, he stressed that the two firms should remain shareholder owned.
Government moves to support Fannie Mae and Freddie Mac - which between them guarantee nearly half of US mortgage debt - came after concerns about their exposure to rising mortgage foreclosures saw their share prices collapse.
The government's response showed it was prepared to take tough decisions, President Bush said, adding that he hoped the action would "calm nerves" among the public and financial markets about the state of the economy.
Despite the problems faced by mortgage lenders and Wall Street institutions, he said that the country's banking system was "basically sound".
"We felt a special need to step up to provide, if needed, temporary assistance," he said of the support for the two mortgage institutions.
"It is really important for people to have confidence in the mortgage market and for there to be stability in the mortgage market," he added.
'Tough times'
While acknowledging the economy was facing "tough times", President Bush said long-term prospects were still good and shrugged off talk of a possible recession.
"I know there is a lot of nervousness but the economy is growing, productivity is high and trade is up."
However, his comments failed to allay market jitters with the Dow Jones index of leading shares closing below the 11,000 mark for the first time in two years.
Testifying before Congress, Mr Bernanke said the economy faced "numerous difficulties" but expressed hope that the slump in house building could begin to "level out" by the end of the year.
President Bush and Fed boss Mr Bernanke's comments come as problems in the US housing market weigh on the wider economy, slowing consumer spending and boosting recession fears.
Figures published on Tuesday showed a sharp rise in wholesale price inflation, due to the rising cost of oil, as well as growing pressure on household budgets.
Retail spending rose a weaker-than-expected 0.1% last month, showing that higher living costs and declining confidence have made consumers much more cautious.
With consumer spending accounting for nearly two-thirds of overall economic output, this suggests growth in the US economy could be minimal in the second half of 2008, analysts said.
Balancing act
Earlier this month, the Fed left its main interest rate unchanged at 2%, as it tries to strike a balance between helping avoid a recession and containing rising prices.
The US is not alone in dealing with these twin economic problems, and the UK is wrestling with slower growth and quickening inflation.
Analysts have said that accelerating consumer price growth may mean they are unable to cut interest rates to stoke up growth.
"The Fed's having a difficult time, as are most other central banks, as to what the next move should be," said Dustin Reid of ABN Amro.
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He also said that the "upside risks" to inflation had intensified recently.
Separately, President Bush said the economy was "remarkably resilient", but urged Congress to pass legislation to help homeowners as soon as possible.
He defended plans to help mortgage firms Fannie Mae and Freddie Mac but denied they were being bailed out.
'Special case'
Plans to offer the mortgage institutions Fannie Mae and Freddie Mac access to fresh credit, if called upon, were necessary to stabilise the mortgage market and boost confidence, President Bush said.
However, he stressed that the two firms should remain shareholder owned.
Government moves to support Fannie Mae and Freddie Mac - which between them guarantee nearly half of US mortgage debt - came after concerns about their exposure to rising mortgage foreclosures saw their share prices collapse.
The government's response showed it was prepared to take tough decisions, President Bush said, adding that he hoped the action would "calm nerves" among the public and financial markets about the state of the economy.
Despite the problems faced by mortgage lenders and Wall Street institutions, he said that the country's banking system was "basically sound".
"We felt a special need to step up to provide, if needed, temporary assistance," he said of the support for the two mortgage institutions.
"It is really important for people to have confidence in the mortgage market and for there to be stability in the mortgage market," he added.
'Tough times'
While acknowledging the economy was facing "tough times", President Bush said long-term prospects were still good and shrugged off talk of a possible recession.
"I know there is a lot of nervousness but the economy is growing, productivity is high and trade is up."
However, his comments failed to allay market jitters with the Dow Jones index of leading shares closing below the 11,000 mark for the first time in two years.
Testifying before Congress, Mr Bernanke said the economy faced "numerous difficulties" but expressed hope that the slump in house building could begin to "level out" by the end of the year.
President Bush and Fed boss Mr Bernanke's comments come as problems in the US housing market weigh on the wider economy, slowing consumer spending and boosting recession fears.
Figures published on Tuesday showed a sharp rise in wholesale price inflation, due to the rising cost of oil, as well as growing pressure on household budgets.
Retail spending rose a weaker-than-expected 0.1% last month, showing that higher living costs and declining confidence have made consumers much more cautious.
With consumer spending accounting for nearly two-thirds of overall economic output, this suggests growth in the US economy could be minimal in the second half of 2008, analysts said.
Balancing act
Earlier this month, the Fed left its main interest rate unchanged at 2%, as it tries to strike a balance between helping avoid a recession and containing rising prices.
The US is not alone in dealing with these twin economic problems, and the UK is wrestling with slower growth and quickening inflation.
Analysts have said that accelerating consumer price growth may mean they are unable to cut interest rates to stoke up growth.
"The Fed's having a difficult time, as are most other central banks, as to what the next move should be," said Dustin Reid of ABN Amro.
Read more...
Economic Calendar Eco Data 7/16/08
| GMT | Ccy | Events | Actual | Consensus | Previous | Revised |
|---|---|---|---|---|---|---|
| 23:50 | JPY | Japan Tertiary industry index May | 0.00% | 1.80% | | |
| 00:30 | AUD | Australia Westpac leading economic indexMay | N/A | 0.40% | | |
| 06:00 | JPY | Japan Machine tools orders Y/Y Jun | N/A | -2.70% | | |
| 06:00 | EUR | Germany CPI final M/M Jun | 0.30% | 0.30% | | |
| 06:00 | EUR | Germany CPI final Y/Y Jun | 3.30% | 3.30% | | |
| 06:00 | EUR | Germany HICP final M/M Jun | 0.40% | 0.60% | | |
| 06:00 | EUR | Germany HICP final Y/Y Jun | 3.40% | 3.70% | | |
| 08:30 | GBP | U.K. Avg. earnings 3m Y/Y May | 3.70% | 3.80% | | |
| 08:30 | GBP | U.K. ILO unemployment rate May | 5.30% | 5.30% | | |
| 08:30 | GBP | U.K. Claimant count Jul | 10.0K | 9.0K | | |
| 09:00 | EUR | Eurozone HICP final M/M Jun | 0.40% | 0.60% | | |
| 09:00 | EUR | Eurozone HICP final Y/Y Jun | 4.00% | 3.70% | | |
| 12:30 | USD | U.S. CPI M/M Jun | 0.70% | 0.60% | | |
| 12:30 | USD | U.S. CPI Y/Y Jun | 4.50% | 4.20% | | |
| 12:30 | USD | U.S. CPI core M/M Jun | 0.20% | 0.20% | | |
| 12:30 | USD | U.S. CPI core Y/Y Jun | 2.30% | 2.30% | | |
| 12:30 | USD | U.S. Real earnings Jun | -0.30% | -0.40% | | |
| 13:00 | USD | U.S. Foreign treasury buys May | N/A | 80.28B | | |
| 13:00 | USD | U.S. Net LT TIC flows May | 85.0B | 115.1B | | |
| 13:15 | USD | U.S. Capacity utilisation Jun | 79.30% | 79.40% | | |
| 13:15 | USD | U.S. Industrial prod'n M/M Jun | 0.00% | -0.20% | | |
| 14:00 | USD | Bernanke Gives Semiannual Monetary Policy Testimony at House | | |||
| 17:00 | USD | U.S. NAHB housing mrkt index Jul | 18 | 18 | | |
| 18:00 | USD | FOMC Meeting Minutes |
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