By Howard Mustoe
Aug. 5 (Bloomberg) -- Free markets must not be ``pilloried'' for the recent economic problems faced across the globe, said Alan Greenspan, former chairman of the U.S. Federal Reserve.
Writing in the Financial Times, Greenspan said it is the nature of people to ``sway from fear to euphoria and back,'' and that regulation had never solved a crisis in history.
He described the economic slowdown as ``a once or twice a century event deeply rooted in fears of insolvency of major financial institutions.''
The crunch was not stabilized with a quick cash injection from central banks, but when ``sovereign credits were exchanged for private bank credit,'' according to Greenspan, who cited the examples of Northern Rock Plc and Bear Stearns Cos.
Fears of insolvency have not yet been fully put aside, and there may be more banks and financial institutions that end up being bailed out by governments, he said.
The insolvency crisis will only finally finish when home prices in the U.S. start to stabilize and make clearer the level of equity in homes, according to the former central banker.
The losers in this round of market turmoil have been the most regulated institutions, the banks, when it was assumed the ``weak links'' of private and hedge funds would fail, Greenspan said.
To contact the reporter on this story: Howard Mustoe in London at hmustoe@bloomberg.net
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Tuesday, August 5, 2008
Brazil, Chile, Mexico: Latin America Bond, Currency Preview
By Jamie McGee
Aug. 5 (Bloomberg) -- The following events and economic reports may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from a previous session.
Brazil: Inflation, as measured by the Foundation Economics Research Institute, slowed to 0.5 percent in July from 0.96 percent in June, according to the median estimate of 16 economists in a Bloomberg survey.
The institute is scheduled to release the data at 4 a.m. New York time.
The real fell 0.1 percent to 1.5619 per dollar.
The yield on the country's zero-coupon bonds due January 2010 rose 3 basis points, 0.03 percentage point, to 14.81 percent, according to Banco Votorantim SA.
Chile: Consumer prices rose 9 percent in the 12 months through July, compared with a 9.5 percent increase in the year through June, according to the median estimate of 12 economists in a Bloomberg survey.
The economy grew 3.1 percent in June from a year earlier, compared with a 2.1 percent increase in May, according to the median estimate of 15 economists in a Bloomberg survey.
The National Institute of Statistics is scheduled to release the consumer price data at 8 a.m. New York time, and the central bank will release the output data at 8:30 a.m. New York time.
The peso weakened 1 percent to 510.70 per dollar from 505.5.
The yield for a basket of five-year peso bonds in inflation- linked currency units fell 5 basis points to 2.89 percent, according to Bloomberg composite prices.
Mexico: The consumer confidence index likely fell to 89.9 percent in July from a six-year low of 90.7 percent in June, according to the median estimate of 10 economists in a Bloomberg survey.
The national statistics agency is scheduled to release the data at 3:30 p a.m. New York time.
The peso rose 0.8 percent to 9.8581 per dollar.
The yield on Mexico's benchmark 10 percent bonds due December 2024 fell 14 basis points to 8.87 percent, according to Banco Santander SA.
To contact the reporter on this story: Jamie McGee in New York at jmcgee8@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- The following events and economic reports may influence trading in Latin American local bonds and currencies today. Bond yields and exchange rates are from a previous session.
Brazil: Inflation, as measured by the Foundation Economics Research Institute, slowed to 0.5 percent in July from 0.96 percent in June, according to the median estimate of 16 economists in a Bloomberg survey.
The institute is scheduled to release the data at 4 a.m. New York time.
The real fell 0.1 percent to 1.5619 per dollar.
The yield on the country's zero-coupon bonds due January 2010 rose 3 basis points, 0.03 percentage point, to 14.81 percent, according to Banco Votorantim SA.
Chile: Consumer prices rose 9 percent in the 12 months through July, compared with a 9.5 percent increase in the year through June, according to the median estimate of 12 economists in a Bloomberg survey.
The economy grew 3.1 percent in June from a year earlier, compared with a 2.1 percent increase in May, according to the median estimate of 15 economists in a Bloomberg survey.
The National Institute of Statistics is scheduled to release the consumer price data at 8 a.m. New York time, and the central bank will release the output data at 8:30 a.m. New York time.
The peso weakened 1 percent to 510.70 per dollar from 505.5.
The yield for a basket of five-year peso bonds in inflation- linked currency units fell 5 basis points to 2.89 percent, according to Bloomberg composite prices.
Mexico: The consumer confidence index likely fell to 89.9 percent in July from a six-year low of 90.7 percent in June, according to the median estimate of 10 economists in a Bloomberg survey.
The national statistics agency is scheduled to release the data at 3:30 p a.m. New York time.
The peso rose 0.8 percent to 9.8581 per dollar.
The yield on Mexico's benchmark 10 percent bonds due December 2024 fell 14 basis points to 8.87 percent, according to Banco Santander SA.
To contact the reporter on this story: Jamie McGee in New York at jmcgee8@bloomberg.net
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Dollar Advances Against Euro on Fed Rate Outlook, Oil Decline
By Kosuke Goto and Stanley White
Enlarge Image/Details
Aug. 5 (Bloomberg) -- The dollar rose toward a six-week high against the euro before a Federal Reserve meeting today at which policy makers may leave interest rates on hold and highlight concern about inflation.
The U.S. currency also climbed to a six-week high versus the British pound after crude oil fell to a 13-week low, adding to optimism lower fuel prices will help sustain growth in the world's biggest economy. Australia's dollar fell to a three- month low after the nation's central bank signaled it may cut borrowing costs.
``The Fed cannot be dovish on inflation risks,'' said Yuji Saito, head of foreign-exchange sales in Tokyo at Societe Generale SA, France's second-largest bank by market value. ``The dollar is also getting a boost from falling oil prices, easing concern over U.S. consumption.''
The dollar rose to $1.5542 per euro as of 7:54 a.m. in London from $1.5576 yesterday in New York. It touched $1.5515 on Aug. 1, the strongest level since June 24. It was at 108.07 yen, from 108.27 yen yesterday. The dollar strengthened to $1.9566 against the British pound, the highest since June 18, from $1.9623 yesterday. The euro fell to 167.85 yen from 168.64 yen.
The U.S. currency may rise to 108.60 yen today, Saito said.
The Australian dollar weakened to 92.15 U.S. cents, the lowest since April 14, after the Reserve Bank of Australia Board said there is ``scope to move towards a less restrictive stance of monetary policy,'' after keeping interest rates unchanged at a 12-year high of 7.25 percent.
Indonesian Rupiah
Indonesia's rupiah traded near the strongest level since March after the central bank raised interest rates today for the fourth time in as many months to combat inflation. The rupiah traded at 9,084 per dollar, from 9,087 yesterday. It reached 9,078 on Aug. 1, the highest since March 10, after gaining 1.4 percent last month.
The dollar advanced against the euro after the U.S. Commerce Department yesterday reported consumer inflation accelerated to 0.8 percent in June, the fastest pace since September 2005.
The greenback also gained as crude oil fell below $120 a barrel for the first time since May. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations. A reading of 1 would mean they moved in lockstep.
Commodity Currencies
The yen advanced against 15 of the 16 most-traded currencies tracked by Bloomberg today as concern global economic growth will slow prompted investors to pare holdings of higher- yielding assets funded by borrowing in Japan. The yen rose the most versus the New Zealand, Australian and Canadian dollars after the Reuters/Jefferies CRB Index of 19 commodities had its biggest one-day decline since March.
The yen gained 0.8 percent to 78.30 per New Zealand dollar, 0.8 percent versus Canada's currency to 103.60, and traded at 99.49 against Australia's dollar from 100.63. The three countries' dollars are known as commodity currencies because the nations export raw materials.
``There is concern the world economy is going to be bad,'' said Toru Umemoto, chief currency strategist in Tokyo at Barclays Capital Inc., a unit of Britain's third-biggest bank. ``The yen is being buoyed by risk aversion.''
The euro weakened on speculation a slowing economy will deter the European Central Bank from raising interest rates.
Retail Sales
Retail sales in the 15 countries that share the euro fell 1.3 percent in June from a year earlier, reversing a 0.3 percent gain in May, according to a Bloomberg News survey. The European Union's statistics office will release the data at 11 a.m. in Luxembourg today.
The ECB will leave its benchmark rate on hold at 4.25 percent when it announces a decision on Aug. 7, a separate survey showed. The ECB raised rates by a quarter of a percentage point on July 3 to curb the fastest inflation in 16 years.
``The euro is in an adjustment phase and is likely to head lower,'' said Takuma Kurosawa, global markets treasurer in Tokyo at HSBC Bank, a unit of Europe's biggest lender. ``The euro won't rise even if the ECB raises rates again. The euro-zone economy is weakening and the central bank will have to acknowledge that.''
Europe's single currency may fall to $1.54 this week, Kurosawa said.
The Fed will keep its target rate for overnight loans between banks at 2 percent today, according to the median forecast of economists in a Bloomberg survey. The decision will be announced at 2:15 p.m. in Washington.
Price Stability
Fed Chairman Ben S. Bernanke last month abandoned his earlier assessment that risks to growth ``diminished,'' saying the U.S. faces threats to price stability and economic expansion.
Futures on the Chicago Board of Trade showed a 32 percent chance yesterday the Fed will raise its 2 percent target rate for overnight lending between banks by at least a quarter point at the Federal Open Market Committee meeting on Sept. 16, compared with 38 percent a week earlier. The contracts showed a 65 percent chance the Fed will increase the rate by December, almost the same odds as a week earlier.
``The FOMC statement is going to sound a little bit'' dovish, Ashraf Laidi, chief currency analyst at CMC Markets in New York, said in an interview with Bloomberg Television. ``They are going to continue to say they are preoccupied with inflation, but acknowledging the decline in energy prices, so that may sound a little bit dovish,'' pushing down the dollar below 108 yen, he said.
To contact the reporters on this story: Kosuke Goto in Tokyo at kgoto2@bloomberg.net; Stanley White in Tokyo at swhite28@bloomberg.net.
Read more...
Enlarge Image/Details
Aug. 5 (Bloomberg) -- The dollar rose toward a six-week high against the euro before a Federal Reserve meeting today at which policy makers may leave interest rates on hold and highlight concern about inflation.
The U.S. currency also climbed to a six-week high versus the British pound after crude oil fell to a 13-week low, adding to optimism lower fuel prices will help sustain growth in the world's biggest economy. Australia's dollar fell to a three- month low after the nation's central bank signaled it may cut borrowing costs.
``The Fed cannot be dovish on inflation risks,'' said Yuji Saito, head of foreign-exchange sales in Tokyo at Societe Generale SA, France's second-largest bank by market value. ``The dollar is also getting a boost from falling oil prices, easing concern over U.S. consumption.''
The dollar rose to $1.5542 per euro as of 7:54 a.m. in London from $1.5576 yesterday in New York. It touched $1.5515 on Aug. 1, the strongest level since June 24. It was at 108.07 yen, from 108.27 yen yesterday. The dollar strengthened to $1.9566 against the British pound, the highest since June 18, from $1.9623 yesterday. The euro fell to 167.85 yen from 168.64 yen.
The U.S. currency may rise to 108.60 yen today, Saito said.
The Australian dollar weakened to 92.15 U.S. cents, the lowest since April 14, after the Reserve Bank of Australia Board said there is ``scope to move towards a less restrictive stance of monetary policy,'' after keeping interest rates unchanged at a 12-year high of 7.25 percent.
Indonesian Rupiah
Indonesia's rupiah traded near the strongest level since March after the central bank raised interest rates today for the fourth time in as many months to combat inflation. The rupiah traded at 9,084 per dollar, from 9,087 yesterday. It reached 9,078 on Aug. 1, the highest since March 10, after gaining 1.4 percent last month.
The dollar advanced against the euro after the U.S. Commerce Department yesterday reported consumer inflation accelerated to 0.8 percent in June, the fastest pace since September 2005.
The greenback also gained as crude oil fell below $120 a barrel for the first time since May. The euro-dollar exchange rate and oil have had a correlation of 0.9 in the past year, according to Bloomberg calculations. A reading of 1 would mean they moved in lockstep.
Commodity Currencies
The yen advanced against 15 of the 16 most-traded currencies tracked by Bloomberg today as concern global economic growth will slow prompted investors to pare holdings of higher- yielding assets funded by borrowing in Japan. The yen rose the most versus the New Zealand, Australian and Canadian dollars after the Reuters/Jefferies CRB Index of 19 commodities had its biggest one-day decline since March.
The yen gained 0.8 percent to 78.30 per New Zealand dollar, 0.8 percent versus Canada's currency to 103.60, and traded at 99.49 against Australia's dollar from 100.63. The three countries' dollars are known as commodity currencies because the nations export raw materials.
``There is concern the world economy is going to be bad,'' said Toru Umemoto, chief currency strategist in Tokyo at Barclays Capital Inc., a unit of Britain's third-biggest bank. ``The yen is being buoyed by risk aversion.''
The euro weakened on speculation a slowing economy will deter the European Central Bank from raising interest rates.
Retail Sales
Retail sales in the 15 countries that share the euro fell 1.3 percent in June from a year earlier, reversing a 0.3 percent gain in May, according to a Bloomberg News survey. The European Union's statistics office will release the data at 11 a.m. in Luxembourg today.
The ECB will leave its benchmark rate on hold at 4.25 percent when it announces a decision on Aug. 7, a separate survey showed. The ECB raised rates by a quarter of a percentage point on July 3 to curb the fastest inflation in 16 years.
``The euro is in an adjustment phase and is likely to head lower,'' said Takuma Kurosawa, global markets treasurer in Tokyo at HSBC Bank, a unit of Europe's biggest lender. ``The euro won't rise even if the ECB raises rates again. The euro-zone economy is weakening and the central bank will have to acknowledge that.''
Europe's single currency may fall to $1.54 this week, Kurosawa said.
The Fed will keep its target rate for overnight loans between banks at 2 percent today, according to the median forecast of economists in a Bloomberg survey. The decision will be announced at 2:15 p.m. in Washington.
Price Stability
Fed Chairman Ben S. Bernanke last month abandoned his earlier assessment that risks to growth ``diminished,'' saying the U.S. faces threats to price stability and economic expansion.
Futures on the Chicago Board of Trade showed a 32 percent chance yesterday the Fed will raise its 2 percent target rate for overnight lending between banks by at least a quarter point at the Federal Open Market Committee meeting on Sept. 16, compared with 38 percent a week earlier. The contracts showed a 65 percent chance the Fed will increase the rate by December, almost the same odds as a week earlier.
``The FOMC statement is going to sound a little bit'' dovish, Ashraf Laidi, chief currency analyst at CMC Markets in New York, said in an interview with Bloomberg Television. ``They are going to continue to say they are preoccupied with inflation, but acknowledging the decline in energy prices, so that may sound a little bit dovish,'' pushing down the dollar below 108 yen, he said.
To contact the reporters on this story: Kosuke Goto in Tokyo at kgoto2@bloomberg.net; Stanley White in Tokyo at swhite28@bloomberg.net.
Read more...
Australian Dollar Falls as RBA Signals May Cut Interest Rate
By Ron Harui
Aug. 5 (Bloomberg) -- The Australian dollar fell to the lowest in more than three months after central bank Governor Glenn Stevens said inflation may slow, allowing a ``less restrictive stance'' on interest rates.
The currency declined for a sixth day as the Reserve Bank of Australia left borrowing costs on hold at 7.25 percent, with futures contracts showing policy makers will reduce rates in the next 12 months as the economy cools. Australia's dollar, known as the Aussie, also weakened as prices dropped for commodity exports.
``The statement is clearly a sign they're getting close to a rate cut, but it's not so dovish as to give the market further fuel for a very near-term cut,'' said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. ``The weakness in commodities is not helpful. People are definitely in the mood to sell the Aussie.''
The Australian dollar dropped to 92.34 U.S. cents, the lowest since April 16, before trading at 92.45 cents at 3 p.m. in Sydney from 92.79 cents before the RBA's decision and 93.37 cents late in Asia yesterday.
The Aussie has lost more than 6 percent since touching a 25- year high of 98.49 cents on July 16, as signs emerged that the nation's 17-year economic expansion is faltering. The Bureau of Statistics may say on Aug. 7 that employment growth slowed to 5,000 extra jobs in July from 29,800 in June, according to a Bloomberg News survey of economists.
Commodities, Bonds
The RBA's rate decision today was expected by all 24 economists surveyed by Bloomberg. Investors are betting the central bank will cut its benchmark rate by 0.83 percentage point in the next 12 months, up from 0.65 percentage point yesterday, according to a Credit Suisse Group index based on interest-rate swaps.
The Aussie also weakened as the Reuters/Jeffries CRB Index of 19 commodities fell 3.4 percent and the UBS Constant Maturity Index of 26 raw materials slid 3.2 percent, the biggest declines since March 19. Prices of gold and crude oil, Australia's third- and fourth most-valuable raw material exports, contributed to the losses. Exports of commodities contribute 17 percent to the Australian economy.
Australian government bonds rose after the RBA's decision. The yield on the benchmark 10-year note fell 6 basis points, or 0.06 percentage point, to 6.04 percent, according to data compiled by Bloomberg.
To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- The Australian dollar fell to the lowest in more than three months after central bank Governor Glenn Stevens said inflation may slow, allowing a ``less restrictive stance'' on interest rates.
The currency declined for a sixth day as the Reserve Bank of Australia left borrowing costs on hold at 7.25 percent, with futures contracts showing policy makers will reduce rates in the next 12 months as the economy cools. Australia's dollar, known as the Aussie, also weakened as prices dropped for commodity exports.
``The statement is clearly a sign they're getting close to a rate cut, but it's not so dovish as to give the market further fuel for a very near-term cut,'' said Sean Callow, a senior currency strategist at Westpac Banking Corp. in Sydney. ``The weakness in commodities is not helpful. People are definitely in the mood to sell the Aussie.''
The Australian dollar dropped to 92.34 U.S. cents, the lowest since April 16, before trading at 92.45 cents at 3 p.m. in Sydney from 92.79 cents before the RBA's decision and 93.37 cents late in Asia yesterday.
The Aussie has lost more than 6 percent since touching a 25- year high of 98.49 cents on July 16, as signs emerged that the nation's 17-year economic expansion is faltering. The Bureau of Statistics may say on Aug. 7 that employment growth slowed to 5,000 extra jobs in July from 29,800 in June, according to a Bloomberg News survey of economists.
Commodities, Bonds
The RBA's rate decision today was expected by all 24 economists surveyed by Bloomberg. Investors are betting the central bank will cut its benchmark rate by 0.83 percentage point in the next 12 months, up from 0.65 percentage point yesterday, according to a Credit Suisse Group index based on interest-rate swaps.
The Aussie also weakened as the Reuters/Jeffries CRB Index of 19 commodities fell 3.4 percent and the UBS Constant Maturity Index of 26 raw materials slid 3.2 percent, the biggest declines since March 19. Prices of gold and crude oil, Australia's third- and fourth most-valuable raw material exports, contributed to the losses. Exports of commodities contribute 17 percent to the Australian economy.
Australian government bonds rose after the RBA's decision. The yield on the benchmark 10-year note fell 6 basis points, or 0.06 percentage point, to 6.04 percent, according to data compiled by Bloomberg.
To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net
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Palm Oil Drops to Nine-Month Low Amid Global Commodities Slump
By Claire Leow
Aug. 5 (Bloomberg) -- Palm oil in Malaysia dropped as much as 4.8 percent to the lowest in more than nine months, mirroring a worldwide commodities sell-off, on concern that demand for the vegetable oil may decline amid slowing global growth.
Palm and soybean oils traded in China, the largest market for cooking oils, both dropped by the day's limit of 5 percent. The two are substitutes and often follow crude oil because they can be used to produce biofuels. Crude oil closed at $121.41 a barrel yesterday, the lowest in three months.
``Soybean prices will be the main determinant of palm oil prices,'' Luke Chandler, an analyst at Rabobank International in Sydney, said today in a report.
Palm oil in Malaysia, the global benchmark, dropped as low as 2,750 ringgit ($841) a metric ton, the lowest since Oct. 26. The most-active contract traded at 2,772 ringgit at 11:34 a.m.
Prices were pulled lower by a slump in the commodities complex. Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities to its biggest one-day drop since March. Copper futures in Shanghai today fell to the lowest in more than six months.
Soybeans traded on the Chicago Board of Trade have lost as much as 9.5 percent in four days to $12.72 a pound at 10:47 a.m. Singapore time in electronic after hours trading. Soybean oil has declined 8.8 percent in past three days to 54.28 cents a pound.
Vegetable oils traded on China's Dalian Commodity Exchange fell by the daily 5 percent limit. Soybean oil dropped 468 yuan to 8,916 yuan ($1,301) a ton, the first time since Nov. 6 it has traded below 9,000 yuan. Palm oil dropped 410 yuan to 7,814 yuan, the lowest since it started trading last October.
To contact the reporters for this story: Claire Leow in Singapore at cleow@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- Palm oil in Malaysia dropped as much as 4.8 percent to the lowest in more than nine months, mirroring a worldwide commodities sell-off, on concern that demand for the vegetable oil may decline amid slowing global growth.
Palm and soybean oils traded in China, the largest market for cooking oils, both dropped by the day's limit of 5 percent. The two are substitutes and often follow crude oil because they can be used to produce biofuels. Crude oil closed at $121.41 a barrel yesterday, the lowest in three months.
``Soybean prices will be the main determinant of palm oil prices,'' Luke Chandler, an analyst at Rabobank International in Sydney, said today in a report.
Palm oil in Malaysia, the global benchmark, dropped as low as 2,750 ringgit ($841) a metric ton, the lowest since Oct. 26. The most-active contract traded at 2,772 ringgit at 11:34 a.m.
Prices were pulled lower by a slump in the commodities complex. Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities to its biggest one-day drop since March. Copper futures in Shanghai today fell to the lowest in more than six months.
Soybeans traded on the Chicago Board of Trade have lost as much as 9.5 percent in four days to $12.72 a pound at 10:47 a.m. Singapore time in electronic after hours trading. Soybean oil has declined 8.8 percent in past three days to 54.28 cents a pound.
Vegetable oils traded on China's Dalian Commodity Exchange fell by the daily 5 percent limit. Soybean oil dropped 468 yuan to 8,916 yuan ($1,301) a ton, the first time since Nov. 6 it has traded below 9,000 yuan. Palm oil dropped 410 yuan to 7,814 yuan, the lowest since it started trading last October.
To contact the reporters for this story: Claire Leow in Singapore at cleow@bloomberg.net
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Sino Says Bullion May Reach $1,000 by Year's End
By Rebecca Keenan
Aug. 5 (Bloomberg) -- Sino Gold Mining Ltd., owner of China's second-largest bullion mine, said the metal may reach $1,000 an ounce by the end of the year because of supply constraints.
``That's why we closed out our hedges,'' Chief Executive Officer Jake Klein told reporters at Kalgoorlie, Western Australia. The Sydney-based company sold A$204 million ($189 million) in shares last quarter to close its forward sales contracts to take advantage of rising bullion prices. ``I'd be very surprised if you didn't see $1,000 by the end of the year.''
Klein plans to add four mines in China to boost total annual output to more than half a million ounces. Gold prices jumped 33 percent in the past year as investors sought an inflation hedge and protection from declining equities and a falling dollar.
``It is the normal inflation, capital market volatility and geopolitical instability'' that's also helping gold rise, he said. New mines weren't starting up fast enough to meet demand, and gold may eventually reach $1,200 an ounce, he said, without giving a timeframe.
Sino Gold fell as much as 40 cents, or 8 percent, to A$4.60 and was at A$4.67 at 1:51 p.m. Sydney time on the Australian stock exchange. The company produced 35,412 ounces in the three months ended June 30, from 9,840 ounces a year earlier.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- Sino Gold Mining Ltd., owner of China's second-largest bullion mine, said the metal may reach $1,000 an ounce by the end of the year because of supply constraints.
``That's why we closed out our hedges,'' Chief Executive Officer Jake Klein told reporters at Kalgoorlie, Western Australia. The Sydney-based company sold A$204 million ($189 million) in shares last quarter to close its forward sales contracts to take advantage of rising bullion prices. ``I'd be very surprised if you didn't see $1,000 by the end of the year.''
Klein plans to add four mines in China to boost total annual output to more than half a million ounces. Gold prices jumped 33 percent in the past year as investors sought an inflation hedge and protection from declining equities and a falling dollar.
``It is the normal inflation, capital market volatility and geopolitical instability'' that's also helping gold rise, he said. New mines weren't starting up fast enough to meet demand, and gold may eventually reach $1,200 an ounce, he said, without giving a timeframe.
Sino Gold fell as much as 40 cents, or 8 percent, to A$4.60 and was at A$4.67 at 1:51 p.m. Sydney time on the Australian stock exchange. The company produced 35,412 ounces in the three months ended June 30, from 9,840 ounces a year earlier.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
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Kepong Leads Slump by Palm Oil Makers as Prices Drop
By Angus Whitley
Aug. 5 (Bloomberg) -- Kuala Lumpur Kepong Bhd. led a slump by palm oil producers on Southeast Asian stock exchanges amid a global decline in crude oil and commodity prices.
Kepong, Malaysia's third-biggest producer, lost 6.8 percent to 12.3 ringgit at 12:29 p.m. in Kuala Lumpur trading, set for the lowest close in almost a year. In Jakarta, PT Astra Agro Lestari, Indonesia's largest agricultural company, dropped 3.6 percent to 20,300 rupiah.
A worsening outlook for global economic growth and prospects for increased supply sent crude, soybeans and gasoline tumbling from records last month. Shares of palm oil makers such as IOI Corp., reaping record profits from surging prices of the edible oil, may not recover until crude rallies, some analysts said.
``It's a temporary correction,'' said Kaladher Govindan, research head at TA Securities Holdings Bhd., who says investors should buy plantation stocks. ``Crude will rebound in another month or two. A rebound could correlate positively to palm oil.''
Palm oil, mostly used in cooking, dropped in Malaysia to 2,750 ringgit ($841) a metric ton, the lowest in more than nine months. Palm oil often tracks crude oil because it can be used to produce biofuels. Crude oil closed at $121.41 a barrel yesterday, the lowest in three months.
Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities yesterday to its biggest one-day decline since March.
`Pulling Out'
``There are many funds pulling out of commodities,'' Yusuf Ade Winoto, a Jakarta-based analyst at DBS Vickers Securities Indonesia, said. ``The effect of the global economic slowdown'' may hurt demand, he said.
Service industries in the U.S. probably shrank in July for a second straight month, signaling the slowdown in growth broadened, economists said before a report this week. Asian nations including Malaysia rely on U.S. demand for exports to power their economies.
Sime Darby Bhd., the world's largest publicly traded oil palm grower, today fell 4.5 percent to 7.45 ringgit on the Kuala Lumpur stock exchange. The shares are headed for the biggest one-day decline since March and the lowest level since they started trading in November 2007. IOI, Malaysia's second-biggest palm oil producer, lost 7.3 percent to 5.1 ringgit, set for a 12-month low.
In Singapore, Wilmar International Ltd., China's biggest vegetable-oil supplier, declined as much as 5 percent, dropping for a third straight day. Golden Agri-Resources Ltd., a unit of Indonesia's largest oil-palm grower, Sinar Mas Group, slumped as much as 12 percent.
To contact the reporter on this story: Angus Whitley in Kuala Lumpur at awhitley1@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- Kuala Lumpur Kepong Bhd. led a slump by palm oil producers on Southeast Asian stock exchanges amid a global decline in crude oil and commodity prices.
Kepong, Malaysia's third-biggest producer, lost 6.8 percent to 12.3 ringgit at 12:29 p.m. in Kuala Lumpur trading, set for the lowest close in almost a year. In Jakarta, PT Astra Agro Lestari, Indonesia's largest agricultural company, dropped 3.6 percent to 20,300 rupiah.
A worsening outlook for global economic growth and prospects for increased supply sent crude, soybeans and gasoline tumbling from records last month. Shares of palm oil makers such as IOI Corp., reaping record profits from surging prices of the edible oil, may not recover until crude rallies, some analysts said.
``It's a temporary correction,'' said Kaladher Govindan, research head at TA Securities Holdings Bhd., who says investors should buy plantation stocks. ``Crude will rebound in another month or two. A rebound could correlate positively to palm oil.''
Palm oil, mostly used in cooking, dropped in Malaysia to 2,750 ringgit ($841) a metric ton, the lowest in more than nine months. Palm oil often tracks crude oil because it can be used to produce biofuels. Crude oil closed at $121.41 a barrel yesterday, the lowest in three months.
Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities yesterday to its biggest one-day decline since March.
`Pulling Out'
``There are many funds pulling out of commodities,'' Yusuf Ade Winoto, a Jakarta-based analyst at DBS Vickers Securities Indonesia, said. ``The effect of the global economic slowdown'' may hurt demand, he said.
Service industries in the U.S. probably shrank in July for a second straight month, signaling the slowdown in growth broadened, economists said before a report this week. Asian nations including Malaysia rely on U.S. demand for exports to power their economies.
Sime Darby Bhd., the world's largest publicly traded oil palm grower, today fell 4.5 percent to 7.45 ringgit on the Kuala Lumpur stock exchange. The shares are headed for the biggest one-day decline since March and the lowest level since they started trading in November 2007. IOI, Malaysia's second-biggest palm oil producer, lost 7.3 percent to 5.1 ringgit, set for a 12-month low.
In Singapore, Wilmar International Ltd., China's biggest vegetable-oil supplier, declined as much as 5 percent, dropping for a third straight day. Golden Agri-Resources Ltd., a unit of Indonesia's largest oil-palm grower, Sinar Mas Group, slumped as much as 12 percent.
To contact the reporter on this story: Angus Whitley in Kuala Lumpur at awhitley1@bloomberg.net
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Technical Analysis for Crosses
Daily Forex Technicals | Written by Crown Forex | Aug 05 08 06:55 GMT |
EUR/JPY
The Euro dropped back against the Yen as well after the pair breached the 38.2% correctional level at 168.07 and continued moving towards the downside, the pair seems to be targeting the 167.60 level which could offer good demand for the pair and might be able to push it back to the upside since the pair is trading within an oversold area on intraday basis, and as long as the 167.30 level remains intact the pair will remain trading within the medium term upside trend.
Support: 167.90, 167.60, 167.30, 167.07, 166.81
Resistance: 168.11, 168.36, 168.59, 168.93, 169.14
GBP/JPY
The Pound continued its downside wave against the Yen as the pair extended its correctional wave beyond the 38.2% level and is now trading around the 50% level at 211.91, if this level was not able to stop the pair's downside correction, the pair will continue dropping to reach the 61.8% level at 210.99 which offers strong demand for the pair, and only rising above the 213.39 would reverse the short term downside channel, however the pair remains positive over the medium term as long as the 210.39 remains intact.
Support: 211.54, 210.99, 210.39, 209.91, 209.39
Resistance: 211.91, 212.40, 212.85, 213.39, 213.87
EUR/GBP
The Euro managed to break through the 0.7904 level against the Pound which represented the resistance for the short term downside channel and also managed to rise above the 100 days Moving Average at 0.7916 which took the pair back into positive ground once again, however on intraday basis the pair needs a correction since it's now being traded within an overbought area and that calls for a slight correction if the pair would continue its upside wave, the level at 0.7916 should offer good demand for the pair, while the next target is set to be at the 0.7959 level and breaching this level would open the way for higher levels.
Support: 0.7928, 0.7916, 0.7904, 0.7892, 0.7877
Resistance: 0.7943, 0.7959, 0.7973, 0.7990, 0.8004
Crown Forex
disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.
Read more...
EUR/JPY
The Euro dropped back against the Yen as well after the pair breached the 38.2% correctional level at 168.07 and continued moving towards the downside, the pair seems to be targeting the 167.60 level which could offer good demand for the pair and might be able to push it back to the upside since the pair is trading within an oversold area on intraday basis, and as long as the 167.30 level remains intact the pair will remain trading within the medium term upside trend.
Support: 167.90, 167.60, 167.30, 167.07, 166.81
Resistance: 168.11, 168.36, 168.59, 168.93, 169.14
GBP/JPY
The Pound continued its downside wave against the Yen as the pair extended its correctional wave beyond the 38.2% level and is now trading around the 50% level at 211.91, if this level was not able to stop the pair's downside correction, the pair will continue dropping to reach the 61.8% level at 210.99 which offers strong demand for the pair, and only rising above the 213.39 would reverse the short term downside channel, however the pair remains positive over the medium term as long as the 210.39 remains intact.
Support: 211.54, 210.99, 210.39, 209.91, 209.39
Resistance: 211.91, 212.40, 212.85, 213.39, 213.87
EUR/GBP
The Euro managed to break through the 0.7904 level against the Pound which represented the resistance for the short term downside channel and also managed to rise above the 100 days Moving Average at 0.7916 which took the pair back into positive ground once again, however on intraday basis the pair needs a correction since it's now being traded within an overbought area and that calls for a slight correction if the pair would continue its upside wave, the level at 0.7916 should offer good demand for the pair, while the next target is set to be at the 0.7959 level and breaching this level would open the way for higher levels.
Support: 0.7928, 0.7916, 0.7904, 0.7892, 0.7877
Resistance: 0.7943, 0.7959, 0.7973, 0.7990, 0.8004
Crown Forex
disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.
Read more...
Shanghai Copper Plunges to Six-Month Low on Demand Speculation
By Glenys Sim
Aug. 5 (Bloomberg) -- Copper futures in Shanghai plunged to the lowest in more than six months as global stockpiles rose to a five-month high, raising speculation demand may be slowing.
Copper inventories monitored by the London Metal Exchange climbed for a 16th day to 146,200 metric tons yesterday, the highest since Feb. 27. Stockpiles have risen 19 percent in the past month.
``The sharp decline seen in the metals complex, in the absence of any notable strengthening of the dollar, speaks of a market that is increasingly concerned about the outlook for global growth,'' Darren Gibbs, chief economist at Deutsche Bank AG in Auckland, wrote in a report today.
October-delivery copper lost as much as 1,670 yuan, or 2.7 percent, to 59,350 yuan ($8,660) a metric ton on the Shanghai Futures Exchange, the lowest for a most-active contract since January 28. This is also the biggest intra-day drop since April 14. The contract traded at 59,660 yuan at 10:50 a.m. Singapore time, falling below 60,000 yuan for the first time since June 13.
Copper for delivery in three months rose 0.9 percent to $7,670 a ton on the London Metal Exchange at the same time, after falling to a six-month low yesterday.
Prices were also pulled lower by a slump in the commodities complex. Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities to its biggest one-day drop since March. Crude oil dropped below $120 a barrel for the first time since May 6 yesterday.
``Commodity prices now seem to be in the process of reverting to levels that are less growth-inhibiting for the major industrial economies,'' wrote Gibbs.
Among other LME-traded metals, aluminum rose 0.3 percent to $2,890 a ton, zinc was up 0.7 percent at $1,780, and lead added 0.8 percent to $2,010. Nickel and tin had not traded as of 10:55 a.m. in Singapore.
To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- Copper futures in Shanghai plunged to the lowest in more than six months as global stockpiles rose to a five-month high, raising speculation demand may be slowing.
Copper inventories monitored by the London Metal Exchange climbed for a 16th day to 146,200 metric tons yesterday, the highest since Feb. 27. Stockpiles have risen 19 percent in the past month.
``The sharp decline seen in the metals complex, in the absence of any notable strengthening of the dollar, speaks of a market that is increasingly concerned about the outlook for global growth,'' Darren Gibbs, chief economist at Deutsche Bank AG in Auckland, wrote in a report today.
October-delivery copper lost as much as 1,670 yuan, or 2.7 percent, to 59,350 yuan ($8,660) a metric ton on the Shanghai Futures Exchange, the lowest for a most-active contract since January 28. This is also the biggest intra-day drop since April 14. The contract traded at 59,660 yuan at 10:50 a.m. Singapore time, falling below 60,000 yuan for the first time since June 13.
Copper for delivery in three months rose 0.9 percent to $7,670 a ton on the London Metal Exchange at the same time, after falling to a six-month low yesterday.
Prices were also pulled lower by a slump in the commodities complex. Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities to its biggest one-day drop since March. Crude oil dropped below $120 a barrel for the first time since May 6 yesterday.
``Commodity prices now seem to be in the process of reverting to levels that are less growth-inhibiting for the major industrial economies,'' wrote Gibbs.
Among other LME-traded metals, aluminum rose 0.3 percent to $2,890 a ton, zinc was up 0.7 percent at $1,780, and lead added 0.8 percent to $2,010. Nickel and tin had not traded as of 10:55 a.m. in Singapore.
To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net
Read more...
Crude Oil Falls Below $120 as Storm May Miss U.S. Gulf Fields
By Nesa Subrahmaniyan
Aug. 5 (Bloomberg) -- Crude oil fell below $120 a barrel in New York as meteorologists forecast Tropical Storm Edouard will miss most offshore production facilities in the U.S. Gulf Coast while approaching Texas.
Oil dropped 3 percent yesterday as Edouard's wind speed eased concern that offshore and platforms would be damaged by the storm. The Reuters/Jefferies CRB Index of 19 commodities had its biggest one-day decline yesterday since March.
``The impact from Edouard seems very limited though storms can be unpredictable,'' said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney. ``The sentiment towards oil has become bearish because of weak demand.''
Crude oil for September delivery fell as much as $1.50, or 1.2 percent, to $119.91 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $120 at 2:46 p.m. Singapore time. Yesterday, crude oil dropped $3.69 to settle at $121.41 a barrel in New York, the lowest close since May 5.
Tropical storm Edouard had maximum sustained winds of about 60 miles (97 kilometers) per hour at 10 p.m. Houston time, from 45 miles an hour earlier, the National Hurricane Center in Miami said in an advisory on its Web site. The system was 160 miles east-southeast of Galveston, Texas, and moving west-northwest at about 8 miles an hour. It may reach near-hurricane strength as it nears land, the center said.
When Hurricanes Katrina and Rita, both Category 5 storms, devastated New Orleans and the U.S. Gulf's oil output and refineries in August, and September 2005, they had wind speeds of more than 155 miles an hour. The Gulf accounts for about a fifth of U.S. oil production.
Minimum Disruptions
Oil had reached a record $147.27 a barrel on July 11 because of a weaker dollar and concern supply from Nigeria and the Middle East may be disrupted.
The commander of Iran's Islamic Revolutionary Guards Corps, Brigadier General Mohammad-Ali Ja'fari, announced new anti-ship weapons test yesterday on state-run news services. He also reiterated a warning that Iran could respond to any attack by closing the Strait of Hormuz, through which a quarter of the world's oil is exported.
``Geopolitical issues have been around in the oil markets for many years now and every now and then they flare up but it's something the market is getting used to,'' Commonwealth Bank's Moore said.
The Louisiana oil port, the biggest U.S. crude import terminal, is ``continuing to make pipeline deliveries,'' said Barb Hestermann, a spokeswoman. ``We don't anticipate being shut down very long. As soon as sea conditions improve, we will start off-loading.''
U.S. Inventories
U.S. producers have idled less than 1 percent of oil output and 7.2 percent of natural gas production in the Gulf of Mexico because of Tropical Storm Edouard, the U.S. Minerals Management Service said.
Edouard may pass close to Exxon Mobil Corp.'s Baytown oil refinery as well as BP Plc's Texas City plant.
``Edouard follows the ideally bullish path, but is only a tropical storm, giving no direction.'' Societe Generale's London-based head of oil research Mike Wittner said in a weekly report titled Oil Drivers yesterday. ``U.S. demand won't recover soon. Chinese demand keeps growing, but at a slower pace.''
Gasoline stockpiles probably fell 1.75 million barrels from 213.6 million barrels the week before, according to the median of responses by eight analysts before an Energy Department report this week. Seven analysts predicted a decrease, and one said there was a gain.
Inventories of crude oil increased 250,000 barrels in the week ended Aug. 1 from 295.2 million, the survey showed. U.S. inventories have fallen in nine of the past 11 weekly government supply reports.
Brent crude oil for September settlement fell as much as $1.48, or 1.2 percent, to $119.20 a barrel on London's ICE Futures Europe exchange, and was at $119.26 at 2:47 p.m. Singapore time.
To contact the reporter on this story: Nesa Subrahmaniyan in Singapore at nesas@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- Crude oil fell below $120 a barrel in New York as meteorologists forecast Tropical Storm Edouard will miss most offshore production facilities in the U.S. Gulf Coast while approaching Texas.
Oil dropped 3 percent yesterday as Edouard's wind speed eased concern that offshore and platforms would be damaged by the storm. The Reuters/Jefferies CRB Index of 19 commodities had its biggest one-day decline yesterday since March.
``The impact from Edouard seems very limited though storms can be unpredictable,'' said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney. ``The sentiment towards oil has become bearish because of weak demand.''
Crude oil for September delivery fell as much as $1.50, or 1.2 percent, to $119.91 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $120 at 2:46 p.m. Singapore time. Yesterday, crude oil dropped $3.69 to settle at $121.41 a barrel in New York, the lowest close since May 5.
Tropical storm Edouard had maximum sustained winds of about 60 miles (97 kilometers) per hour at 10 p.m. Houston time, from 45 miles an hour earlier, the National Hurricane Center in Miami said in an advisory on its Web site. The system was 160 miles east-southeast of Galveston, Texas, and moving west-northwest at about 8 miles an hour. It may reach near-hurricane strength as it nears land, the center said.
When Hurricanes Katrina and Rita, both Category 5 storms, devastated New Orleans and the U.S. Gulf's oil output and refineries in August, and September 2005, they had wind speeds of more than 155 miles an hour. The Gulf accounts for about a fifth of U.S. oil production.
Minimum Disruptions
Oil had reached a record $147.27 a barrel on July 11 because of a weaker dollar and concern supply from Nigeria and the Middle East may be disrupted.
The commander of Iran's Islamic Revolutionary Guards Corps, Brigadier General Mohammad-Ali Ja'fari, announced new anti-ship weapons test yesterday on state-run news services. He also reiterated a warning that Iran could respond to any attack by closing the Strait of Hormuz, through which a quarter of the world's oil is exported.
``Geopolitical issues have been around in the oil markets for many years now and every now and then they flare up but it's something the market is getting used to,'' Commonwealth Bank's Moore said.
The Louisiana oil port, the biggest U.S. crude import terminal, is ``continuing to make pipeline deliveries,'' said Barb Hestermann, a spokeswoman. ``We don't anticipate being shut down very long. As soon as sea conditions improve, we will start off-loading.''
U.S. Inventories
U.S. producers have idled less than 1 percent of oil output and 7.2 percent of natural gas production in the Gulf of Mexico because of Tropical Storm Edouard, the U.S. Minerals Management Service said.
Edouard may pass close to Exxon Mobil Corp.'s Baytown oil refinery as well as BP Plc's Texas City plant.
``Edouard follows the ideally bullish path, but is only a tropical storm, giving no direction.'' Societe Generale's London-based head of oil research Mike Wittner said in a weekly report titled Oil Drivers yesterday. ``U.S. demand won't recover soon. Chinese demand keeps growing, but at a slower pace.''
Gasoline stockpiles probably fell 1.75 million barrels from 213.6 million barrels the week before, according to the median of responses by eight analysts before an Energy Department report this week. Seven analysts predicted a decrease, and one said there was a gain.
Inventories of crude oil increased 250,000 barrels in the week ended Aug. 1 from 295.2 million, the survey showed. U.S. inventories have fallen in nine of the past 11 weekly government supply reports.
Brent crude oil for September settlement fell as much as $1.48, or 1.2 percent, to $119.20 a barrel on London's ICE Futures Europe exchange, and was at $119.26 at 2:47 p.m. Singapore time.
To contact the reporter on this story: Nesa Subrahmaniyan in Singapore at nesas@bloomberg.net
Read more...
Asian Currencies: Malaysian Ringgit Declines, Peso Advances
By Aaron Pan and David Yong
Aug. 5 (Bloomberg) -- Malaysia's ringgit fell for a third day on speculation the Federal Reserve will cite inflationary risks and keep interest rates unchanged today, boosting demand for the U.S. currency. The Philippine peso advanced.
The dollar traded near a seven-week high against the yen and one-month high against the euro after crude oil prices fell to the lowest in 13 weeks. Seven of the 10 most-active Asian currencies outside Japan, including Thailand's baht and Singapore's dollar, weakened today.
``There's renewed demand for dollars'' before the Fed decision, said Yahya Mohd Nor, head of currency trading at Affin Bank Bhd. in Kuala Lumpur. ``The market perceives there's going to be less intervention'' by the local central bank to support the ringgit, he said.
The ringgit traded at 3.2708 against the dollar as of 11:23 a.m. in Kuala Lumpur from 3.2678 yesterday, according to data compiled by Bloomberg. It earlier fell as much as 0.2 percent to 3.2733. The currency may trade between 3.2750 and 3.2805 this week, Yahya said.
The Malaysian currency headed for its longest losing streak in more than two weeks on concern policy makers may let it weaken to help exporters after the trade ministry said overseas shipments slowed in June.
Singapore's dollar fell 0.2 percent to S$1.3744 against the U.S. currency, Thailand's baht lost 0.2 percent to 33.61 and Taiwan's dollar declined 0.2 percent to NT$30.712. Vietnam's dong advanced 0.3 percent to 16,695.
Bank Indonesia
Indonesia's rupiah traded near its strongest level since March against the dollar on speculation the central bank will today increase the benchmark interest rate for the fourth time in as many months to combat inflation.
Bank Indonesia Governor Boediono said last week the central bank ``will use all instruments to fight inflation,'' which accelerated to a 22-month high of 11.9 percent in July. Higher interest rates help boost returns on rupiah-denominated assets, drawing global funds.
``I'm still very bullish on the rupiah and I expect them to remain hawkish on their policy stance, even after today's meeting,'' said Craig Chan, a currency strategist at Lehman Brothers Holdings Inc. in Singapore.
The rupiah traded unchanged at 9,087, according to data compiled by Bloomberg. The currency reached 9,078 on Aug. 1, the strongest since March 10, after gaining 1.4 percent in July.
`Room to Strengthen'
The currency has risen an estimated 4.3 percent on a trade- weighted basis since May when the central bank raised interest rates for the first time this year, Chan said. ``There is still room to strengthen further,'' he added, citing a target of 9,050 to the dollar without giving a timeframe.
Bank Indonesia will raise its benchmark overnight interest rate to 9 percent, from 8.75 percent, at a monetary policy meeting today, according to all but one of 22 economists surveyed by Bloomberg News. The rate was 8 percent at the end of April.
The Philippine peso gained against the dollar by the most in almost a week on speculation lower oil prices will help ease inflation.
The peso ended three days of losses as crude oil fell almost 1 percent to $120.26 a barrel in after-hours electronic trading on the New York Mercantile Exchange after dropping 3 percent yesterday.
``A tapering off of inflationary pressures will favor the local currency and fund flows,'' said Lito Biacora, vice president for treasury at Bank of the Philippine Islands in Manila. Inflation may still climb but the ``degree of increase may not be as much if oil stabilizes at $120 a barrel.''
The local currency rose 0.6 percent to 44.155 per dollar, according to Tullett Prebon Plc.
Preemptive Steps
Philippine inflation last month accelerated to the fastest in more than 16 years. Consumer prices rose 12.2 percent from a year earlier, the government said today.
South Korea's won was little changed after Vice Finance Minister Kim Dong Soo said the government will take ``preemptive steps'' to prevent price gains, spurring speculation of intervention.
The won halted a two-day loss after Kim said a consumer- price report last week ``showed the impact of higher oil prices is bigger and more serious than initially expected.'' Kim spoke today ahead of a meeting with government officials, central bankers and consumer group representatives in Gwacheon.
``Market players are increasingly mindful of what the government is worried about,'' said Roh Sang Chil, a currency dealer with Kookmin Bank in Seoul. ``Still, demand for the dollar is high due to foreign stock sales and importer deals.''
The currency traded at 1,017.65 against the dollar, compared with 1,017.40 yesterday, according to Seoul Money Brokerage Services Ltd.
Record oil and food costs pushed up annual consumer prices by 5.9 percent in July, the biggest gain since November 1998, according to a government report on Aug. 1. Central banks intervene in currency markets by arranging sales and purchase of foreign exchange.
To contact the reporters on this story: Aaron Pan in Hong Kong at apan8@bloomberg.net; David Yong in Singapore at dyong@bloomberg.net.
Read more...
Aug. 5 (Bloomberg) -- Malaysia's ringgit fell for a third day on speculation the Federal Reserve will cite inflationary risks and keep interest rates unchanged today, boosting demand for the U.S. currency. The Philippine peso advanced.
The dollar traded near a seven-week high against the yen and one-month high against the euro after crude oil prices fell to the lowest in 13 weeks. Seven of the 10 most-active Asian currencies outside Japan, including Thailand's baht and Singapore's dollar, weakened today.
``There's renewed demand for dollars'' before the Fed decision, said Yahya Mohd Nor, head of currency trading at Affin Bank Bhd. in Kuala Lumpur. ``The market perceives there's going to be less intervention'' by the local central bank to support the ringgit, he said.
The ringgit traded at 3.2708 against the dollar as of 11:23 a.m. in Kuala Lumpur from 3.2678 yesterday, according to data compiled by Bloomberg. It earlier fell as much as 0.2 percent to 3.2733. The currency may trade between 3.2750 and 3.2805 this week, Yahya said.
The Malaysian currency headed for its longest losing streak in more than two weeks on concern policy makers may let it weaken to help exporters after the trade ministry said overseas shipments slowed in June.
Singapore's dollar fell 0.2 percent to S$1.3744 against the U.S. currency, Thailand's baht lost 0.2 percent to 33.61 and Taiwan's dollar declined 0.2 percent to NT$30.712. Vietnam's dong advanced 0.3 percent to 16,695.
Bank Indonesia
Indonesia's rupiah traded near its strongest level since March against the dollar on speculation the central bank will today increase the benchmark interest rate for the fourth time in as many months to combat inflation.
Bank Indonesia Governor Boediono said last week the central bank ``will use all instruments to fight inflation,'' which accelerated to a 22-month high of 11.9 percent in July. Higher interest rates help boost returns on rupiah-denominated assets, drawing global funds.
``I'm still very bullish on the rupiah and I expect them to remain hawkish on their policy stance, even after today's meeting,'' said Craig Chan, a currency strategist at Lehman Brothers Holdings Inc. in Singapore.
The rupiah traded unchanged at 9,087, according to data compiled by Bloomberg. The currency reached 9,078 on Aug. 1, the strongest since March 10, after gaining 1.4 percent in July.
`Room to Strengthen'
The currency has risen an estimated 4.3 percent on a trade- weighted basis since May when the central bank raised interest rates for the first time this year, Chan said. ``There is still room to strengthen further,'' he added, citing a target of 9,050 to the dollar without giving a timeframe.
Bank Indonesia will raise its benchmark overnight interest rate to 9 percent, from 8.75 percent, at a monetary policy meeting today, according to all but one of 22 economists surveyed by Bloomberg News. The rate was 8 percent at the end of April.
The Philippine peso gained against the dollar by the most in almost a week on speculation lower oil prices will help ease inflation.
The peso ended three days of losses as crude oil fell almost 1 percent to $120.26 a barrel in after-hours electronic trading on the New York Mercantile Exchange after dropping 3 percent yesterday.
``A tapering off of inflationary pressures will favor the local currency and fund flows,'' said Lito Biacora, vice president for treasury at Bank of the Philippine Islands in Manila. Inflation may still climb but the ``degree of increase may not be as much if oil stabilizes at $120 a barrel.''
The local currency rose 0.6 percent to 44.155 per dollar, according to Tullett Prebon Plc.
Preemptive Steps
Philippine inflation last month accelerated to the fastest in more than 16 years. Consumer prices rose 12.2 percent from a year earlier, the government said today.
South Korea's won was little changed after Vice Finance Minister Kim Dong Soo said the government will take ``preemptive steps'' to prevent price gains, spurring speculation of intervention.
The won halted a two-day loss after Kim said a consumer- price report last week ``showed the impact of higher oil prices is bigger and more serious than initially expected.'' Kim spoke today ahead of a meeting with government officials, central bankers and consumer group representatives in Gwacheon.
``Market players are increasingly mindful of what the government is worried about,'' said Roh Sang Chil, a currency dealer with Kookmin Bank in Seoul. ``Still, demand for the dollar is high due to foreign stock sales and importer deals.''
The currency traded at 1,017.65 against the dollar, compared with 1,017.40 yesterday, according to Seoul Money Brokerage Services Ltd.
Record oil and food costs pushed up annual consumer prices by 5.9 percent in July, the biggest gain since November 1998, according to a government report on Aug. 1. Central banks intervene in currency markets by arranging sales and purchase of foreign exchange.
To contact the reporters on this story: Aaron Pan in Hong Kong at apan8@bloomberg.net; David Yong in Singapore at dyong@bloomberg.net.
Read more...
HudBay Minerals, Mullen Group: Canadian Equity Market Preview
By John Kipphoff
Aug. 5 (Bloomberg) -- The following companies may have unusual price changes in Canadian trading on Aug. 5. Stock symbols are in parentheses, and share prices are from the previous close in Toronto.
The Standard & Poor's/TSX Composite Index fell 0.7 percent to 13,592.91. Canadian financial markets are closed on Aug. 4 for the province of Ontario's Civic Day holiday.
HudBay Minerals Inc. (HBM CN): The zinc mining company was raised to ``buy'' from ``hold'' by Canaccord Adams analyst Gary Lampard in Toronto. The shares rose 1 percent to C$9.99.
Mullen Group Income Fund (MTL-U CN) was raised to ``outperform'' from ``market perform'' by analyst Jason Granger at BMO Capital Markets in Toronto. The shares rose 5.1 percent to C$20.50.
To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.
Read more...
Aug. 5 (Bloomberg) -- The following companies may have unusual price changes in Canadian trading on Aug. 5. Stock symbols are in parentheses, and share prices are from the previous close in Toronto.
The Standard & Poor's/TSX Composite Index fell 0.7 percent to 13,592.91. Canadian financial markets are closed on Aug. 4 for the province of Ontario's Civic Day holiday.
HudBay Minerals Inc. (HBM CN): The zinc mining company was raised to ``buy'' from ``hold'' by Canaccord Adams analyst Gary Lampard in Toronto. The shares rose 1 percent to C$9.99.
Mullen Group Income Fund (MTL-U CN) was raised to ``outperform'' from ``market perform'' by analyst Jason Granger at BMO Capital Markets in Toronto. The shares rose 5.1 percent to C$20.50.
To contact the reporter on this story: John Kipphoff in Montreal at jkipphoff@bloomberg.net.
Read more...
Asia-Pacific Market Recap: Fixed Income Mixed, Equities Lower
Market Updates | Written by CEP News | Aug 05 08 06:19 GMT |
(CEP News) - Asia-Pacific fixed income markets are mixed and equities closed lower with yields on Australian 10-year bonds down 7.2 bps to 6.03% and Japanese 10-year government bonds up 3.6 bps to 1.54%.
Sydney's S&P ASX 200 closed down 67.30 points to 4820.398.
The Japanese Nikkei closed down 18.52 points to 12914.66 and the Hang Seng down 502.89 points to 22012.03.
Yields on three-year Australian bonds were down 15.7 bps to 6.81 and the Australian 90-day March 09 contract was up 28.0 ticks to 93.15.
The Euroyen March 09 contract was up 1.5 ticks to 99.15.
The Australian dollar was down 0.73 cents to 0.9221 against the USD and down 0.40 cents to 0.9594 against the Canadian dollar.
Against the yen, the U.S. dollar was down 0.18 points to 108.09 and the Canadian dollar was down 0.56 points to 103.89.
The euro was down 0.40 cents to 1.5541 USD.
All data taken at 2:16 a.m. EDT.
Generated by CEP Newswires
CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca
The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News.
A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer.
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(CEP News) - Asia-Pacific fixed income markets are mixed and equities closed lower with yields on Australian 10-year bonds down 7.2 bps to 6.03% and Japanese 10-year government bonds up 3.6 bps to 1.54%.
Sydney's S&P ASX 200 closed down 67.30 points to 4820.398.
The Japanese Nikkei closed down 18.52 points to 12914.66 and the Hang Seng down 502.89 points to 22012.03.
Yields on three-year Australian bonds were down 15.7 bps to 6.81 and the Australian 90-day March 09 contract was up 28.0 ticks to 93.15.
The Euroyen March 09 contract was up 1.5 ticks to 99.15.
The Australian dollar was down 0.73 cents to 0.9221 against the USD and down 0.40 cents to 0.9594 against the Canadian dollar.
Against the yen, the U.S. dollar was down 0.18 points to 108.09 and the Canadian dollar was down 0.56 points to 103.89.
The euro was down 0.40 cents to 1.5541 USD.
All data taken at 2:16 a.m. EDT.
Generated by CEP Newswires
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Commodity Shares in Bear Market as Oil, Copper Slide
By Eric Martin
More Photos/Details
Aug. 5 (Bloomberg) -- Global energy and raw-materials stocks fell into bear markets after plunging oil, gold, copper and wheat prices spurred sell-offs in last year's best-performing industries.
A gauge of energy producers in the MSCI World Index slipped 0.3 percent as of 12:23 p.m. in Hong Kong, bringing its decline from a May record to 21 percent. A measure of mining, farm and chemical companies dropped 1.2 percent, extending its retreat from an all-time high to 22 percent. A bear market is commonly defined as a slump of 20 percent or more.
Refiners such as Nippon Oil Corp. and Valero Energy Corp. led the reversal in energy shares as higher oil costs eroded profits. Slumping sales of houses, cars and airplanes sent copper and aluminum producers BHP Billiton Ltd. and Alcoa Inc. lower. Raw-material prices have fallen as a global economic slowdown threatens to cut demand.
``Commodities prices have hit a choking point,'' said Nader Naeimi, a Sydney-based senior investment strategist at AMP Capital Investors, which manages about $108 billion. ``With further evidence of slowing growth there'll be ongoing pressure on mining and resources stocks.''
MSCI's global energy index gained 28 percent last year while the materials gauged climbed 31 percent as demand from the fastest-growing economies for fuel and building materials outstripped supply.
S&P 500 Energy
Commodity and energy producers have now joined banks, telephone and computer makers, industrial companies and a group of retailers and automakers among MSCI industries in bear markets. Only utilities, household product producers and drugmakers have avoided a 20 percent slump.
Oil and gas companies in the Standard & Poor's 500 Index also entered a bear market yesterday, becoming the sixth of 10 industries in the benchmark index for American equities to do so. U.S. raw-materials producers have lost 18.5 percent.
Manufacturing in China, the world's biggest metals buyer and the fastest-growing of the 20 largest economies, contracted in July for the first time since at least 2005, according to China's Purchasing Managers' Index. The Reuters/Jefferies CRB index of 19 commodities plunged 10 percent last month, the most in 28 years. Drops in cocoa, natural gas and sugar yesterday sent the benchmark to its biggest one-day decline since March.
``The perception that the global economy is slowing is damping demand for commodities,'' said Park Sehick, a fund manager at Hanwha Investment Trust Management Co. in Seoul, which holds $1 billion in equities. Commodity prices ``will keep on falling from here,'' he said.
Nippon Oil
Energy stocks retreated after a doubling in crude from a year earlier helped send the 117-constituent MSCI World/Energy Index to a record on May 21. Hess Corp., the fifth-biggest U.S. oil company, and U.K. explorer Tullow Oil Plc helped lead the advance.
Nippon Oil, the biggest Japanese refiner, has since retreated 21 percent, while Valero, the largest in the U.S., dropped 37 percent as the companies were unable to compensate for crude's rise with higher gasoline and heating and jet fuel prices. The so-called crack spread, or hypothetical profit margin for processing three barrels of crude oil into two barrels of gasoline and one of heating oil, fell 41 percent. Crude fell 18 percent, or more than $25 a barrel, since reaching an intraday record of $147.27 on July 11.
Exxon Mobil Corp., the largest U.S. energy company, dropped 18 percent to $76.60. BP Plc, Europe's second-largest oil company, retreated 20 percent to 518 pence.
BHP Billiton
SBM Offshore NV, the world's largest producer of floating oil-production platforms, had the steepest decline in the energy benchmark since May 21. Shares of the Schiedam, Netherlands-based company dropped 47 percent to 13.90 euros after the company said earnings may decline in 2008 because of high project costs.
MSCI's index of 166 raw-materials producers reached a record on May 19, as gold, copper and wheat rallied to all-time highs.
BHP, the world's largest mining company, dropped 27 percent to A$36 in Sydney since the index peaked. Rio Tinto Group, the world's second-largest iron ore producer, declined 28 percent to A$111.50. Alcoa, the world's third-largest aluminum producer, lost 30 percent to $31.04.
Freeport-McMoRan Copper & Gold Inc. led a retreat in metals producers yesterday, with copper dropping to a six-month low, as rising inventories on the London Metal Exchange and a slowing global economy signaled weaker demand. Freeport, the world's second-largest producer, slid the most in seven years, dropping 12 percent to $80.35. The Phoenix-based miner has lost more than a third of its value since May.
Gold dropped 10 percent from a March 18 record.
``We've seen gold, copper, agricultural and oil prices decline,'' said Walter ``Bucky'' Hellwig, who helps oversee $30 billion at Morgan Asset Management in Birmingham, Alabama. ``The stocks trade with the commodities, and while it's not always a very tight connection, there is a connection.''
To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net.
Read more...
More Photos/Details
Aug. 5 (Bloomberg) -- Global energy and raw-materials stocks fell into bear markets after plunging oil, gold, copper and wheat prices spurred sell-offs in last year's best-performing industries.
A gauge of energy producers in the MSCI World Index slipped 0.3 percent as of 12:23 p.m. in Hong Kong, bringing its decline from a May record to 21 percent. A measure of mining, farm and chemical companies dropped 1.2 percent, extending its retreat from an all-time high to 22 percent. A bear market is commonly defined as a slump of 20 percent or more.
Refiners such as Nippon Oil Corp. and Valero Energy Corp. led the reversal in energy shares as higher oil costs eroded profits. Slumping sales of houses, cars and airplanes sent copper and aluminum producers BHP Billiton Ltd. and Alcoa Inc. lower. Raw-material prices have fallen as a global economic slowdown threatens to cut demand.
``Commodities prices have hit a choking point,'' said Nader Naeimi, a Sydney-based senior investment strategist at AMP Capital Investors, which manages about $108 billion. ``With further evidence of slowing growth there'll be ongoing pressure on mining and resources stocks.''
MSCI's global energy index gained 28 percent last year while the materials gauged climbed 31 percent as demand from the fastest-growing economies for fuel and building materials outstripped supply.
S&P 500 Energy
Commodity and energy producers have now joined banks, telephone and computer makers, industrial companies and a group of retailers and automakers among MSCI industries in bear markets. Only utilities, household product producers and drugmakers have avoided a 20 percent slump.
Oil and gas companies in the Standard & Poor's 500 Index also entered a bear market yesterday, becoming the sixth of 10 industries in the benchmark index for American equities to do so. U.S. raw-materials producers have lost 18.5 percent.
Manufacturing in China, the world's biggest metals buyer and the fastest-growing of the 20 largest economies, contracted in July for the first time since at least 2005, according to China's Purchasing Managers' Index. The Reuters/Jefferies CRB index of 19 commodities plunged 10 percent last month, the most in 28 years. Drops in cocoa, natural gas and sugar yesterday sent the benchmark to its biggest one-day decline since March.
``The perception that the global economy is slowing is damping demand for commodities,'' said Park Sehick, a fund manager at Hanwha Investment Trust Management Co. in Seoul, which holds $1 billion in equities. Commodity prices ``will keep on falling from here,'' he said.
Nippon Oil
Energy stocks retreated after a doubling in crude from a year earlier helped send the 117-constituent MSCI World/Energy Index to a record on May 21. Hess Corp., the fifth-biggest U.S. oil company, and U.K. explorer Tullow Oil Plc helped lead the advance.
Nippon Oil, the biggest Japanese refiner, has since retreated 21 percent, while Valero, the largest in the U.S., dropped 37 percent as the companies were unable to compensate for crude's rise with higher gasoline and heating and jet fuel prices. The so-called crack spread, or hypothetical profit margin for processing three barrels of crude oil into two barrels of gasoline and one of heating oil, fell 41 percent. Crude fell 18 percent, or more than $25 a barrel, since reaching an intraday record of $147.27 on July 11.
Exxon Mobil Corp., the largest U.S. energy company, dropped 18 percent to $76.60. BP Plc, Europe's second-largest oil company, retreated 20 percent to 518 pence.
BHP Billiton
SBM Offshore NV, the world's largest producer of floating oil-production platforms, had the steepest decline in the energy benchmark since May 21. Shares of the Schiedam, Netherlands-based company dropped 47 percent to 13.90 euros after the company said earnings may decline in 2008 because of high project costs.
MSCI's index of 166 raw-materials producers reached a record on May 19, as gold, copper and wheat rallied to all-time highs.
BHP, the world's largest mining company, dropped 27 percent to A$36 in Sydney since the index peaked. Rio Tinto Group, the world's second-largest iron ore producer, declined 28 percent to A$111.50. Alcoa, the world's third-largest aluminum producer, lost 30 percent to $31.04.
Freeport-McMoRan Copper & Gold Inc. led a retreat in metals producers yesterday, with copper dropping to a six-month low, as rising inventories on the London Metal Exchange and a slowing global economy signaled weaker demand. Freeport, the world's second-largest producer, slid the most in seven years, dropping 12 percent to $80.35. The Phoenix-based miner has lost more than a third of its value since May.
Gold dropped 10 percent from a March 18 record.
``We've seen gold, copper, agricultural and oil prices decline,'' said Walter ``Bucky'' Hellwig, who helps oversee $30 billion at Morgan Asset Management in Birmingham, Alabama. ``The stocks trade with the commodities, and while it's not always a very tight connection, there is a connection.''
To contact the reporter on this story: Eric Martin in New York at emartin21@bloomberg.net.
Read more...
Gold Slumps to Near Six-Week Low as Weak Oil Cuts Hedge Demand
By Glenys Sim
Aug. 5 (Bloomberg) -- Gold fell to the lowest in nearly six weeks in Asia as a decline in energy costs reduced demand for a hedge against accelerating consumer prices.
Bullion was also dragged lower by a sell-off in industrial metals and other commodities amid concern that demand will fall as global growth slows. Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities to its biggest one-day decline since March.
``Lower oil and base metals prices pulled the gold price lower,'' David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney, said today in an e-mail.
Bullion for immediate delivery fell 0.3 percent to $891.90 an ounce at 1:12 p.m. in Singapore, the lowest since June 26. The metal closed below $900 for the first time in nearly six weeks yesterday. Silver for immediate delivery dropped 0.2 percent to $16.90 an ounce at the same time.
``The focus today will mostly be on the outcome of the FOMC meeting,'' Darren Gibbs, chief economist at Deutsche Bank AG in Auckland, said in an e-mailed report today. ``Price action seen in the commodity complex overnight provides reinforcement for those investors looking for the Fed to take a step back towards more neutral language.''
The dollar traded near a seven-week high against the yen and approached a six-week high against the euro before a Federal Reserve decision today when policy makers may leave interest rates on hold. Dollar-denominated gold tends to move in the opposite direction to the U.S. currency.
``Growing pessimism over global growth has not been sufficiently supportive despite the yellow metal's role as a hedge against economic risk, as deteriorating global growth has weakened other currencies against the U.S. dollar while also reducing consumer gold demand,'' Hussein Allidina, analyst at New York-based Morgan Stanley, said yesterday in a report.
Gold for June delivery on the Tokyo Commodity Exchange fell to 3,127 yen a gram ($899 an ounce) at 1:14 p.m. Singapore time.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was down 0.9 percent at $899.90 an ounce in after-hours electronic trading.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- Gold fell to the lowest in nearly six weeks in Asia as a decline in energy costs reduced demand for a hedge against accelerating consumer prices.
Bullion was also dragged lower by a sell-off in industrial metals and other commodities amid concern that demand will fall as global growth slows. Plunging prices for cocoa, natural gas and sugar sent the Reuters/Jefferies CRB Index of 19 commodities to its biggest one-day decline since March.
``Lower oil and base metals prices pulled the gold price lower,'' David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney, said today in an e-mail.
Bullion for immediate delivery fell 0.3 percent to $891.90 an ounce at 1:12 p.m. in Singapore, the lowest since June 26. The metal closed below $900 for the first time in nearly six weeks yesterday. Silver for immediate delivery dropped 0.2 percent to $16.90 an ounce at the same time.
``The focus today will mostly be on the outcome of the FOMC meeting,'' Darren Gibbs, chief economist at Deutsche Bank AG in Auckland, said in an e-mailed report today. ``Price action seen in the commodity complex overnight provides reinforcement for those investors looking for the Fed to take a step back towards more neutral language.''
The dollar traded near a seven-week high against the yen and approached a six-week high against the euro before a Federal Reserve decision today when policy makers may leave interest rates on hold. Dollar-denominated gold tends to move in the opposite direction to the U.S. currency.
``Growing pessimism over global growth has not been sufficiently supportive despite the yellow metal's role as a hedge against economic risk, as deteriorating global growth has weakened other currencies against the U.S. dollar while also reducing consumer gold demand,'' Hussein Allidina, analyst at New York-based Morgan Stanley, said yesterday in a report.
Gold for June delivery on the Tokyo Commodity Exchange fell to 3,127 yen a gram ($899 an ounce) at 1:14 p.m. Singapore time.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was down 0.9 percent at $899.90 an ounce in after-hours electronic trading.
To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net
Read more...
Cemex, Comgas, Edenor, Entel, Petrobras: Latin Equity Preview
By James Attwood and William Freebairn
Aug. 5 (Bloomberg) -- The following stocks may have significant gains or losses in Latin American markets. Symbols are in parentheses after company names, and stock prices are from the last session.
The MSCI index of Latin American shares fell 4 percent to 4,062.22 yesterday. In Brazil, preferred shares are the most commonly traded class of stock.
Argentina
Empresa Distribuidora y Comercializadora Norte SA (EDN AF): Argentina's biggest electricity distributor said its prices rose an average 18 percent after it was granted a rate increase on July 31. Authorities will consider further rate increases in February and August next year and February 2010, the company known as Edenor wrote in a regulatory filing yesterday. Edenor fell 2.6 percent to 1.86 pesos.
Transportadora de Gas del Sur SA (TGSU2 AF): The Buenos Aires-based natural-gas transporter and processor said second- quarter profit increased 3.7 percent. Net income rose to 55.4 million pesos ($18.2 million), or 7 centavos a share, from 53.4 million pesos, or 6.7 pesos, a year earlier, the company wrote in a regulatory filing yesterday. TGS fell 4.7 percent to 2.24 pesos.
Brazil
Cia. de Gas de Sao Paulo (CGAS5 BS): Brazil's biggest natural-gas distributor said yesterday it planned to raise 100 million reais ($64.1 million) in bonds due in 6 years. The company didn't say in the regulatory filing how it will use the proceeds. Comgas fell 1.3 percent to 44.22 reais.
Petroleo Brasileiro SA (PETR4 BS): A union representing oil workers in Brazil's main offshore oil production region decided to cancel a strike scheduled for today after accepting a contract offer from state-controlled Petrobras, Reuters said yesterday, citing a union official. Under the agreement, workers won a half- day of pay for each day they travel back from their 14-day shifts on offshore platforms, Reuters said. Petrobras fell 4.7 percent to 32.89 reais.
Chile
Empresa Nacional de Telecomunicaciones SA (ENTEL CC): Chile's second-biggest wireless company said second-quarter profit rose 8 percent on higher sales and lower financial expenses. Net income increased to 39.3 billion pesos ($76.9 million), or 166 pesos a share, from 36.4 billion pesos, or 154 pesos, a year earlier, the Santiago-based company known as Entel wrote in an e-mailed statement yesterday. That beat the 37.7 billion peso average estimate of five analysts surveyed by Bloomberg. Entel rose 1.5 percent to 6,865.70 pesos.
Mexico
Cemex SAB (CEMEXCP MM): North America's largest cement maker owes $37.3 million in taxes from 2006 and 2007, the Venezuelan tax authority said yesterday in a statement. The Venezuelan government is seeking to nationalize Cemex's Venezuelan unit. Cemex was unchanged at 20.20 pesos.
Grupo Iusacell SAB (CEL* MM): Mexico's third-largest mobile- phone company was reduced to ``neutral'' from ``buy'' by IXE Grupo Financiero. The company will add fewer subscribers than estimated earlier and faces declining prices for mobile calls, analysts including Manuel Jimenez wrote in a research report e- mailed yesterday. Iusacell fell 3.7 percent to 93.44 pesos.
To contact the reporters on this story: William Freebairn in Mexico City wfreebairn@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.
Read more...
Aug. 5 (Bloomberg) -- The following stocks may have significant gains or losses in Latin American markets. Symbols are in parentheses after company names, and stock prices are from the last session.
The MSCI index of Latin American shares fell 4 percent to 4,062.22 yesterday. In Brazil, preferred shares are the most commonly traded class of stock.
Argentina
Empresa Distribuidora y Comercializadora Norte SA (EDN AF): Argentina's biggest electricity distributor said its prices rose an average 18 percent after it was granted a rate increase on July 31. Authorities will consider further rate increases in February and August next year and February 2010, the company known as Edenor wrote in a regulatory filing yesterday. Edenor fell 2.6 percent to 1.86 pesos.
Transportadora de Gas del Sur SA (TGSU2 AF): The Buenos Aires-based natural-gas transporter and processor said second- quarter profit increased 3.7 percent. Net income rose to 55.4 million pesos ($18.2 million), or 7 centavos a share, from 53.4 million pesos, or 6.7 pesos, a year earlier, the company wrote in a regulatory filing yesterday. TGS fell 4.7 percent to 2.24 pesos.
Brazil
Cia. de Gas de Sao Paulo (CGAS5 BS): Brazil's biggest natural-gas distributor said yesterday it planned to raise 100 million reais ($64.1 million) in bonds due in 6 years. The company didn't say in the regulatory filing how it will use the proceeds. Comgas fell 1.3 percent to 44.22 reais.
Petroleo Brasileiro SA (PETR4 BS): A union representing oil workers in Brazil's main offshore oil production region decided to cancel a strike scheduled for today after accepting a contract offer from state-controlled Petrobras, Reuters said yesterday, citing a union official. Under the agreement, workers won a half- day of pay for each day they travel back from their 14-day shifts on offshore platforms, Reuters said. Petrobras fell 4.7 percent to 32.89 reais.
Chile
Empresa Nacional de Telecomunicaciones SA (ENTEL CC): Chile's second-biggest wireless company said second-quarter profit rose 8 percent on higher sales and lower financial expenses. Net income increased to 39.3 billion pesos ($76.9 million), or 166 pesos a share, from 36.4 billion pesos, or 154 pesos, a year earlier, the Santiago-based company known as Entel wrote in an e-mailed statement yesterday. That beat the 37.7 billion peso average estimate of five analysts surveyed by Bloomberg. Entel rose 1.5 percent to 6,865.70 pesos.
Mexico
Cemex SAB (CEMEXCP MM): North America's largest cement maker owes $37.3 million in taxes from 2006 and 2007, the Venezuelan tax authority said yesterday in a statement. The Venezuelan government is seeking to nationalize Cemex's Venezuelan unit. Cemex was unchanged at 20.20 pesos.
Grupo Iusacell SAB (CEL* MM): Mexico's third-largest mobile- phone company was reduced to ``neutral'' from ``buy'' by IXE Grupo Financiero. The company will add fewer subscribers than estimated earlier and faces declining prices for mobile calls, analysts including Manuel Jimenez wrote in a research report e- mailed yesterday. Iusacell fell 3.7 percent to 93.44 pesos.
To contact the reporters on this story: William Freebairn in Mexico City wfreebairn@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.
Read more...
European Stock-Index Futures Advance; Societe Generale May Rise
By Sarah Jones
Aug. 5 (Bloomberg) -- European stock-index futures advanced after Societe Generale SA reported earnings that beat analysts' estimates and oil prices retreated to a three-month low.
Societe Generale, France's second-largest bank, may gain. Air France-KLM Group will probably be active after Europe's largest airline reaffirmed its fiscal-year profit forecast on better-than-expected quarterly earnings. Swiss Reinsurance Co. might move after posting a 53 percent drop in profit. BP Plc may follow oil prices lower.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 18, or 0.6 percent, to 3,316 at 7:40 a.m. in London. The U.K.'s FTSE 100 Index might fall 13, according to CMC Markets.
``We are eyeing a mixed start'' in Europe, said Paul Webb, chief dealer at CMC Markets in London. ``With oil and the financial sector squarely in focus, there's certainly the potential for a choppy day.''
U.S. stocks fell for a third day yesterday as global energy and raw-materials stocks fell into bear markets, sparked by plunging commodity prices. Asian stocks dropped today.
Crude oil yesterday declined more than $3 to settle at $121.41 a barrel in New York, the lowest close since May 5. Copper tumbled to the lowest in more than six months in Shanghai as global stockpiles increased. Gold also tumbled to the lowest in almost six weeks.
Europe's Stoxx 600 has slumped 24 percent in 2008 as banks' credit losses and asset writedowns topped $480 billion worldwide and crude oil surged, prompting analysts to reduce earnings estimates.
Societe Generale
Societe Generale today reported a 63 percent decline in second-quarter profit to 644 million euros ($1 billion) after writedowns linked to the subprime contagion led to a loss at the investment-banking unit.
Earnings still exceeded the 550 million-euro median estimate of 13 analysts surveyed by Bloomberg.
Air France, Europe's largest airline, today said first- quarter profit totaled 168 million euros, beating analysts' estimates of 152 million euros.
Chief Executive Officer Jean-Cyril Spinetta reaffirmed his forecast of May that fiscal-year earnings before interest and taxes will drop 30 percent.
Profits at Stoxx 600 companies may drop 2.5 percent on average in 2008, according to projections tracked by Bloomberg. That's down from a forecast for 11 percent growth in January.
Swiss Re might be active after the world's second-largest reinsurer said profit dropped 53 percent to 564 million francs ($536.48 million) after 362 million Swiss francs of writedowns on credit-default swaps. That missed the 773 million-franc median estimate of 11 analysts surveyed by Bloomberg News.
Barclays
Barclays Plc may also move after the U.K.'s third-biggest bank agreed to sell its U.K. life insurance unit to Swiss Re for 753 million pounds ($1.5 billion) as it seeks to fund expansion in fast-growing overseas markets.
American depositary receipts of BP, Europe's second-biggest oil company, ended 1.1 percent below the close in London yesterday. Total SA, Europe's third-largest energy company, declined 1.2 percent from the Paris close.
Crude oil for September delivery fell as much as $1.41, or 1.2 percent, to $120 a barrel today in electronic trading on the New York Mercantile Exchange.
Adidas AG may rise after the world's second-largest sporting-goods maker reported a 12 percent increase in second- quarter profit to 116 million euros, beating analysts' estimates. The company also raised its forecasts for annual profit margins.
Carlsberg
Carlsberg A/S may advance. The Nordic region's largest brewer said second-quarter profit rose 36 percent to 1.42 billion kroner ($296 million) after April's joint takeover of competitor Scottish & Newcastle Plc with Heineken NV. That beat the 1.28 billion-krona median estimate of eight analysts surveyed by Bloomberg.
Diageo Plc, the world's largest liquor maker, may be active after the Wall Street Journal said in an opinion piece InBev NV, the beer maker that bought Anheuser-Busch Cos. for $52 billion, may consider acquiring distillers, including Diageo.
Legal & General Group Plc may also move after the U.K.'s third-biggest insurer posted a loss in the first half of 14 million pounds as stock-market declines wiped out investment returns. Operating profit still beat analysts' estimates and the company raised its interim dividend 7.5 percent to 2.01 pence.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
Read more...
Aug. 5 (Bloomberg) -- European stock-index futures advanced after Societe Generale SA reported earnings that beat analysts' estimates and oil prices retreated to a three-month low.
Societe Generale, France's second-largest bank, may gain. Air France-KLM Group will probably be active after Europe's largest airline reaffirmed its fiscal-year profit forecast on better-than-expected quarterly earnings. Swiss Reinsurance Co. might move after posting a 53 percent drop in profit. BP Plc may follow oil prices lower.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, added 18, or 0.6 percent, to 3,316 at 7:40 a.m. in London. The U.K.'s FTSE 100 Index might fall 13, according to CMC Markets.
``We are eyeing a mixed start'' in Europe, said Paul Webb, chief dealer at CMC Markets in London. ``With oil and the financial sector squarely in focus, there's certainly the potential for a choppy day.''
U.S. stocks fell for a third day yesterday as global energy and raw-materials stocks fell into bear markets, sparked by plunging commodity prices. Asian stocks dropped today.
Crude oil yesterday declined more than $3 to settle at $121.41 a barrel in New York, the lowest close since May 5. Copper tumbled to the lowest in more than six months in Shanghai as global stockpiles increased. Gold also tumbled to the lowest in almost six weeks.
Europe's Stoxx 600 has slumped 24 percent in 2008 as banks' credit losses and asset writedowns topped $480 billion worldwide and crude oil surged, prompting analysts to reduce earnings estimates.
Societe Generale
Societe Generale today reported a 63 percent decline in second-quarter profit to 644 million euros ($1 billion) after writedowns linked to the subprime contagion led to a loss at the investment-banking unit.
Earnings still exceeded the 550 million-euro median estimate of 13 analysts surveyed by Bloomberg.
Air France, Europe's largest airline, today said first- quarter profit totaled 168 million euros, beating analysts' estimates of 152 million euros.
Chief Executive Officer Jean-Cyril Spinetta reaffirmed his forecast of May that fiscal-year earnings before interest and taxes will drop 30 percent.
Profits at Stoxx 600 companies may drop 2.5 percent on average in 2008, according to projections tracked by Bloomberg. That's down from a forecast for 11 percent growth in January.
Swiss Re might be active after the world's second-largest reinsurer said profit dropped 53 percent to 564 million francs ($536.48 million) after 362 million Swiss francs of writedowns on credit-default swaps. That missed the 773 million-franc median estimate of 11 analysts surveyed by Bloomberg News.
Barclays
Barclays Plc may also move after the U.K.'s third-biggest bank agreed to sell its U.K. life insurance unit to Swiss Re for 753 million pounds ($1.5 billion) as it seeks to fund expansion in fast-growing overseas markets.
American depositary receipts of BP, Europe's second-biggest oil company, ended 1.1 percent below the close in London yesterday. Total SA, Europe's third-largest energy company, declined 1.2 percent from the Paris close.
Crude oil for September delivery fell as much as $1.41, or 1.2 percent, to $120 a barrel today in electronic trading on the New York Mercantile Exchange.
Adidas AG may rise after the world's second-largest sporting-goods maker reported a 12 percent increase in second- quarter profit to 116 million euros, beating analysts' estimates. The company also raised its forecasts for annual profit margins.
Carlsberg
Carlsberg A/S may advance. The Nordic region's largest brewer said second-quarter profit rose 36 percent to 1.42 billion kroner ($296 million) after April's joint takeover of competitor Scottish & Newcastle Plc with Heineken NV. That beat the 1.28 billion-krona median estimate of eight analysts surveyed by Bloomberg.
Diageo Plc, the world's largest liquor maker, may be active after the Wall Street Journal said in an opinion piece InBev NV, the beer maker that bought Anheuser-Busch Cos. for $52 billion, may consider acquiring distillers, including Diageo.
Legal & General Group Plc may also move after the U.K.'s third-biggest insurer posted a loss in the first half of 14 million pounds as stock-market declines wiped out investment returns. Operating profit still beat analysts' estimates and the company raised its interim dividend 7.5 percent to 2.01 pence.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
Read more...
EURUSD, AUDUSD, EURCHF Daily Outlook
Daily Forex Technicals | Written by E-Forex | Aug 05 08 06:47 GMT |
EURUSD
The Euro failed to break the 1.5635 resistance on yesterday and declined, forming an intraday triple top at 1.5525. More important support is eyed into the 1.5465 zone and a test seem possible during the upcoming sessions. On the upside, minor resistance emerges at 1.5580 followed by 1.5635 then 1.5690/00 and 1.5750. Both intraday and daily studies are bearish. Current quote is 1.5535 @06:00 GMT
Support levels: 1.5550/55, 1.5520 and 1.5445/65
Resistance levels: 1.5580, 1.5635, 1.5660/70 and 1.5750.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
AUDUSD
Key support at .9285 has been cleared as the downtrend is very strong. Next support is seen at .9205 backed by .9145/50. In case of a pullback, the resistance at .9285 should limit the upside for now. Both intraday and short term studies are bearish. Current quote is .9230 @06:00 GMT
Support levels: .9205, .9145/50 and .9100.
Resistance levels: .9285, .9340 and .9400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
EURCHF
Intraday resistance at 1.6340 is being tested again at the time of this report and a potential break could open 1.6370/80 where key resistance is noticed. Positive momentum of both daily and intraday studies is supportive on a potential break higher into the 1.64 zone. Support is seen at 1.6300/10 and lower at 1.6285 and 1.6250. Current quote is 1.6335 @06:00 GMT
Support levels: 1.6300/10, 1.6285, 1.6240/50, 1.6225 and 1.6160
Resistance levels: 1.6340, 1.6375 and 1.6400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bullish
E-Forex
Legal disclaimer and risk disclosure
Past performance does not guarantee similar performance in the future. Our forecasts do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any foreign exchange transaction. E-Forex.ro accepts no responsibility or liability whatsoever for any expense. We do not warrant or guarantee the accuracy, timelines or completeness to the service or informations you find here.
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EURUSD
The Euro failed to break the 1.5635 resistance on yesterday and declined, forming an intraday triple top at 1.5525. More important support is eyed into the 1.5465 zone and a test seem possible during the upcoming sessions. On the upside, minor resistance emerges at 1.5580 followed by 1.5635 then 1.5690/00 and 1.5750. Both intraday and daily studies are bearish. Current quote is 1.5535 @06:00 GMT
Support levels: 1.5550/55, 1.5520 and 1.5445/65
Resistance levels: 1.5580, 1.5635, 1.5660/70 and 1.5750.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
AUDUSD
Key support at .9285 has been cleared as the downtrend is very strong. Next support is seen at .9205 backed by .9145/50. In case of a pullback, the resistance at .9285 should limit the upside for now. Both intraday and short term studies are bearish. Current quote is .9230 @06:00 GMT
Support levels: .9205, .9145/50 and .9100.
Resistance levels: .9285, .9340 and .9400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
EURCHF
Intraday resistance at 1.6340 is being tested again at the time of this report and a potential break could open 1.6370/80 where key resistance is noticed. Positive momentum of both daily and intraday studies is supportive on a potential break higher into the 1.64 zone. Support is seen at 1.6300/10 and lower at 1.6285 and 1.6250. Current quote is 1.6335 @06:00 GMT
Support levels: 1.6300/10, 1.6285, 1.6240/50, 1.6225 and 1.6160
Resistance levels: 1.6340, 1.6375 and 1.6400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bullish
E-Forex
Legal disclaimer and risk disclosure
Past performance does not guarantee similar performance in the future. Our forecasts do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any foreign exchange transaction. E-Forex.ro accepts no responsibility or liability whatsoever for any expense. We do not warrant or guarantee the accuracy, timelines or completeness to the service or informations you find here.
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EURUSD, AUDUSD, EURCHF Daily Outlook
Daily Forex Technicals | Written by E-Forex | Aug 05 08 06:47 GMT |
EURUSD
The Euro failed to break the 1.5635 resistance on yesterday and declined, forming an intraday triple top at 1.5525. More important support is eyed into the 1.5465 zone and a test seem possible during the upcoming sessions. On the upside, minor resistance emerges at 1.5580 followed by 1.5635 then 1.5690/00 and 1.5750. Both intraday and daily studies are bearish. Current quote is 1.5535 @06:00 GMT
Support levels: 1.5550/55, 1.5520 and 1.5445/65
Resistance levels: 1.5580, 1.5635, 1.5660/70 and 1.5750.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
AUDUSD
Key support at .9285 has been cleared as the downtrend is very strong. Next support is seen at .9205 backed by .9145/50. In case of a pullback, the resistance at .9285 should limit the upside for now. Both intraday and short term studies are bearish. Current quote is .9230 @06:00 GMT
Support levels: .9205, .9145/50 and .9100.
Resistance levels: .9285, .9340 and .9400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
EURCHF
Intraday resistance at 1.6340 is being tested again at the time of this report and a potential break could open 1.6370/80 where key resistance is noticed. Positive momentum of both daily and intraday studies is supportive on a potential break higher into the 1.64 zone. Support is seen at 1.6300/10 and lower at 1.6285 and 1.6250. Current quote is 1.6335 @06:00 GMT
Support levels: 1.6300/10, 1.6285, 1.6240/50, 1.6225 and 1.6160
Resistance levels: 1.6340, 1.6375 and 1.6400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bullish
E-Forex
Legal disclaimer and risk disclosure
Past performance does not guarantee similar performance in the future. Our forecasts do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any foreign exchange transaction. E-Forex.ro accepts no responsibility or liability whatsoever for any expense. We do not warrant or guarantee the accuracy, timelines or completeness to the service or informations you find here.
Read more...
EURUSD
The Euro failed to break the 1.5635 resistance on yesterday and declined, forming an intraday triple top at 1.5525. More important support is eyed into the 1.5465 zone and a test seem possible during the upcoming sessions. On the upside, minor resistance emerges at 1.5580 followed by 1.5635 then 1.5690/00 and 1.5750. Both intraday and daily studies are bearish. Current quote is 1.5535 @06:00 GMT
Support levels: 1.5550/55, 1.5520 and 1.5445/65
Resistance levels: 1.5580, 1.5635, 1.5660/70 and 1.5750.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
AUDUSD
Key support at .9285 has been cleared as the downtrend is very strong. Next support is seen at .9205 backed by .9145/50. In case of a pullback, the resistance at .9285 should limit the upside for now. Both intraday and short term studies are bearish. Current quote is .9230 @06:00 GMT
Support levels: .9205, .9145/50 and .9100.
Resistance levels: .9285, .9340 and .9400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bearish
EURCHF
Intraday resistance at 1.6340 is being tested again at the time of this report and a potential break could open 1.6370/80 where key resistance is noticed. Positive momentum of both daily and intraday studies is supportive on a potential break higher into the 1.64 zone. Support is seen at 1.6300/10 and lower at 1.6285 and 1.6250. Current quote is 1.6335 @06:00 GMT
Support levels: 1.6300/10, 1.6285, 1.6240/50, 1.6225 and 1.6160
Resistance levels: 1.6340, 1.6375 and 1.6400.
Market sentiment: long-term : bullish, mid-term : bullish, short-term : bullish
E-Forex
Legal disclaimer and risk disclosure
Past performance does not guarantee similar performance in the future. Our forecasts do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell any foreign exchange transaction. E-Forex.ro accepts no responsibility or liability whatsoever for any expense. We do not warrant or guarantee the accuracy, timelines or completeness to the service or informations you find here.
Read more...
Adidas, Beiersdorf, Continental, Telekom: German Equity Preview
By Stefanie Haxel and Henrietta Rumberger
Aug. 5 (Bloomberg) -- The following companies may have unusual price changes in German trading. Stock symbols are in parentheses, and share prices are from the previous close.
DAX futures expiring in September gained 28, or 0.4 percent, to 6,401 as of 8:17 a.m. in Frankfurt. Germany's benchmark DAX index fell 0.7 percent to 6,349.81.
Adidas AG (ADS GY): The world's second-largest sporting- goods maker said second-quarter profit rose 12 percent to 116 million euros ($180 million) after June's European soccer championship and this month's Olympic Games spurred sales in emerging markets. Adidas shares fell 88 cents, or 2.2 percent, to 38.37 euros.
Adva AG Optical Networking (ADV GY): The maker of networking equipment for customers including Deutsche Telekom AG said net income fell from 287,000 euros in the second quarter of 2007 to a loss of 2.69 million euros for the same period in 2008. The loss was less than in a statement on June 30. Adva shares declined 2 cents, or 1.2 percent, to 1.66 euros.
Analytik Jena AG (AJA GY): The maker of scientific measuring equipment said third-quarter profit rose more than fourfold to 136,000 euros on demand for technical instruments. The shares increased 17 cents, or 2.5 percent, to 6.97 euros.
Bayer AG (BAY GY): Germany's largest drugmaker sued Novartis AG's Sandoz unit to prevent it from selling a copy of the Yaz birth-control pill in the U.S. Bayer shares slipped 28 cents, or 0.5 percent, to 54.62 euros.
Beiersdorf AG (BEI GY): The maker of Nivea skin creams said second-quarter profit rose 58 percent to 147 million euros from a year earlier, when the company incurred costs to shut warehouses. The shares were unchanged at 41.18 euros.
Continental AG (CON GY): The German tire and auto-parts maker is in talks with a ``handful'' of potential buyers to fend off an unsolicited takeover bid from Schaeffler Group, Reuters reported, citing unidentified people familiar with the matter. The shares dropped 70 cents, or 1 percent, to 71.95 euros.
Deutsche Telekom AG (DTE GY): Europe's largest phone company was ordered by a German court to hand over depositions of former chief executive officers Ron Sommer and Kai-Uwe Ricke taken in a U.S. lawsuit. Telekom shares added 5 cents, or 0.4 percent, to 11.04 euros.
HeidelbergCement AG (HEI GY): Germany's biggest cement maker owned by German billionaire Adolf Merckle said second- quarter profit dropped 66 percent to 409.9 million euros, hurt by higher raw-material costs. The shares declined 50 cents, or 0.7 percent, to 72.90 euros.
Heidelberger Druckmaschinen AG (HDD GY): The world's largest maker of printing machines posted its first quarterly loss in three years as higher raw-material costs squeezed margins and customers in the U.S. delayed purchases. The net loss through June was 39.3 million euros compared with a profit of 8.1 million euros a year earlier, the company said today. Sales dropped 11 percent to 656.9 million euros. The shares fell 33 cents, or 2.8 percent, to 11.50 euros.
Infineon Technologies AG (IFX GY): Germany's largest maker of semiconductors was rated ``buy'' in new coverage at Deutsche Bank AG, which cited the company's cost-cutting program and improving margins of the wireless business.
``We see margins and profitability recover over the next 12 months,'' Kai Korschelt, a London-based analyst at Deutsche Bank, wrote in a report dated Aug. 4. He set his price estimate for the company's shares at 7 euros. The stock climbed 22.5 cents, or 4.7 percent, to 5.02 euros.
KUKA AG (IWK GY): The company that makes bodies for Chrysler Corp.'s Jeep Wrangler said second-quarter profit fell 89 percent to 8.9 million euros following a one-time gain from the sale of a unit booked in the 2007 period. The shares slid 6 cents, or 0.4 percent, to 15 euros.
Siemens AG (SIE GY): Europe's largest engineering company will get 10 billion euros of orders from China by 2010. The shares dropped 62 cents, or 0.8 percent, to 76.46 euros.
Singulus Technologies AG (SNG GY): The maker of machines that replicate compact discs reported a second-quarter loss of3.2 million euros, compared with a profit of about 100,000 euros a year earlier. The shares rose 16 cents, or 2.7 percent, to 6.14 euros.
Technotrans AG (TTR GY): The supplier of components to the print industry reported a 45 percent drop in first-half profit to 2.6 million euros and lowered its full-year sales forecast. The stock gained 20 cents, or 1.7 percent, to 11.70 euros.
To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net; Henrietta Rumberger in Frankfurt at hrumberger@bloomberg.net.
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Aug. 5 (Bloomberg) -- The following companies may have unusual price changes in German trading. Stock symbols are in parentheses, and share prices are from the previous close.
DAX futures expiring in September gained 28, or 0.4 percent, to 6,401 as of 8:17 a.m. in Frankfurt. Germany's benchmark DAX index fell 0.7 percent to 6,349.81.
Adidas AG (ADS GY): The world's second-largest sporting- goods maker said second-quarter profit rose 12 percent to 116 million euros ($180 million) after June's European soccer championship and this month's Olympic Games spurred sales in emerging markets. Adidas shares fell 88 cents, or 2.2 percent, to 38.37 euros.
Adva AG Optical Networking (ADV GY): The maker of networking equipment for customers including Deutsche Telekom AG said net income fell from 287,000 euros in the second quarter of 2007 to a loss of 2.69 million euros for the same period in 2008. The loss was less than in a statement on June 30. Adva shares declined 2 cents, or 1.2 percent, to 1.66 euros.
Analytik Jena AG (AJA GY): The maker of scientific measuring equipment said third-quarter profit rose more than fourfold to 136,000 euros on demand for technical instruments. The shares increased 17 cents, or 2.5 percent, to 6.97 euros.
Bayer AG (BAY GY): Germany's largest drugmaker sued Novartis AG's Sandoz unit to prevent it from selling a copy of the Yaz birth-control pill in the U.S. Bayer shares slipped 28 cents, or 0.5 percent, to 54.62 euros.
Beiersdorf AG (BEI GY): The maker of Nivea skin creams said second-quarter profit rose 58 percent to 147 million euros from a year earlier, when the company incurred costs to shut warehouses. The shares were unchanged at 41.18 euros.
Continental AG (CON GY): The German tire and auto-parts maker is in talks with a ``handful'' of potential buyers to fend off an unsolicited takeover bid from Schaeffler Group, Reuters reported, citing unidentified people familiar with the matter. The shares dropped 70 cents, or 1 percent, to 71.95 euros.
Deutsche Telekom AG (DTE GY): Europe's largest phone company was ordered by a German court to hand over depositions of former chief executive officers Ron Sommer and Kai-Uwe Ricke taken in a U.S. lawsuit. Telekom shares added 5 cents, or 0.4 percent, to 11.04 euros.
HeidelbergCement AG (HEI GY): Germany's biggest cement maker owned by German billionaire Adolf Merckle said second- quarter profit dropped 66 percent to 409.9 million euros, hurt by higher raw-material costs. The shares declined 50 cents, or 0.7 percent, to 72.90 euros.
Heidelberger Druckmaschinen AG (HDD GY): The world's largest maker of printing machines posted its first quarterly loss in three years as higher raw-material costs squeezed margins and customers in the U.S. delayed purchases. The net loss through June was 39.3 million euros compared with a profit of 8.1 million euros a year earlier, the company said today. Sales dropped 11 percent to 656.9 million euros. The shares fell 33 cents, or 2.8 percent, to 11.50 euros.
Infineon Technologies AG (IFX GY): Germany's largest maker of semiconductors was rated ``buy'' in new coverage at Deutsche Bank AG, which cited the company's cost-cutting program and improving margins of the wireless business.
``We see margins and profitability recover over the next 12 months,'' Kai Korschelt, a London-based analyst at Deutsche Bank, wrote in a report dated Aug. 4. He set his price estimate for the company's shares at 7 euros. The stock climbed 22.5 cents, or 4.7 percent, to 5.02 euros.
KUKA AG (IWK GY): The company that makes bodies for Chrysler Corp.'s Jeep Wrangler said second-quarter profit fell 89 percent to 8.9 million euros following a one-time gain from the sale of a unit booked in the 2007 period. The shares slid 6 cents, or 0.4 percent, to 15 euros.
Siemens AG (SIE GY): Europe's largest engineering company will get 10 billion euros of orders from China by 2010. The shares dropped 62 cents, or 0.8 percent, to 76.46 euros.
Singulus Technologies AG (SNG GY): The maker of machines that replicate compact discs reported a second-quarter loss of3.2 million euros, compared with a profit of about 100,000 euros a year earlier. The shares rose 16 cents, or 2.7 percent, to 6.14 euros.
Technotrans AG (TTR GY): The supplier of components to the print industry reported a 45 percent drop in first-half profit to 2.6 million euros and lowered its full-year sales forecast. The stock gained 20 cents, or 1.7 percent, to 11.70 euros.
To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net; Henrietta Rumberger in Frankfurt at hrumberger@bloomberg.net.
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Air France-KLM, CIC, Societe Generale: French Stocks Preview
By Helene Fouquet and Adria Cimino
Aug. 5 (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.
August futures on France's CAC 40 Index added 10.50 to 4,298 at 8:11 a.m. in Paris.
The CAC 40 retreated 33.71, or 0.8 percent, to 4,280.63 yesterday. The SBF 120 Index also dropped 0.8 percent to 3090.90.
Air France-KLM Group (AF FP): Europe's biggest airline said first-quarter profit fell 59 percent to 168 million euros ($260 million) as fuel prices increased and asset sales boosted year- earlier earnings. That surpassed analysts' estimates. The shares fell 1 cent to 16.26 euros.
Alcatel-Lucent (ALU FP): The world's biggest telecommunications equipment supplier was rebuffed when it tried to name former BT Group Plc chief executive Ben Verwaayen to run the company in place of Chairman Serge Tchuruk and Chief Executive Officer Patricia Russo, who resigned last month, the Wall Street Journal reported, citing people familiar with the situation. The stock was unchanged at 3.89 euros.
Axa SA (CS FP): Axa Asia Pacific Holdings Ltd., a unit of Europe's second-biggest insurer, rose the most in more than five months in Sydney trading after earnings excluding investments gained 11 percent on increased sales in Hong Kong. The stock lost 13 cents, or 0.7 percent, to 18.685 euros.
Groupe CIC (CC FP): The investment-banking unit of Credit Mutuel said first-half net income plunged to 105 million euros from 704 million euros a year earlier after the market value of its investments fell. The shares added 1.50 euros, or 1.2 percent, to 130 euros.
Fonciere Massena SCA (SOCM FP): The real-estate investment trust run by Credit Mutuel Group bought offices near Nantes in France for 9 million euros. The property will be leased to Credit Mutuel. The shares fell 35 cents, or 3.2 percent, to 10.70 euros.
GFI Informatique SA (GFI FP): The computer-services company reported a 16 percent rise in second-quarter sales to 191.3 million euros and said it was ``confident'' of meeting full-year targets. The shares rose 11 cents, or 2.9 percent, to 3.95 euros.
Le Noble Age SA (LNA FP): The retirement-home operator said second-quarter revenue rose 45 percent to 33.4 million euros and confirmed its full-year targets. The shares rose 23 cents, or 1.6 percent, to 15 euros.
Groupe Open SA (OPN FP): The computer services company owns more than 98 percent of consulting company Teamlog SA, the French stock market regulator said in a legal notice. The shares added 32 cents, or 3.4 percent, to 9.64 euros.
Societe Generale SA (GLE FP): France's second-biggest bank by market value reported a 63 percent decline in second-quarter profit to 644 million euros after writedowns linked to the subprime contagion led to a loss at the investment-banking unit. The shares declined 54 cents, or 0.9 percent, to 59.50 euros.
To contact the reporter on this story: Helene Fouquet in Paris at Hfouquet1@bloomberg.net.
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Aug. 5 (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.
August futures on France's CAC 40 Index added 10.50 to 4,298 at 8:11 a.m. in Paris.
The CAC 40 retreated 33.71, or 0.8 percent, to 4,280.63 yesterday. The SBF 120 Index also dropped 0.8 percent to 3090.90.
Air France-KLM Group (AF FP): Europe's biggest airline said first-quarter profit fell 59 percent to 168 million euros ($260 million) as fuel prices increased and asset sales boosted year- earlier earnings. That surpassed analysts' estimates. The shares fell 1 cent to 16.26 euros.
Alcatel-Lucent (ALU FP): The world's biggest telecommunications equipment supplier was rebuffed when it tried to name former BT Group Plc chief executive Ben Verwaayen to run the company in place of Chairman Serge Tchuruk and Chief Executive Officer Patricia Russo, who resigned last month, the Wall Street Journal reported, citing people familiar with the situation. The stock was unchanged at 3.89 euros.
Axa SA (CS FP): Axa Asia Pacific Holdings Ltd., a unit of Europe's second-biggest insurer, rose the most in more than five months in Sydney trading after earnings excluding investments gained 11 percent on increased sales in Hong Kong. The stock lost 13 cents, or 0.7 percent, to 18.685 euros.
Groupe CIC (CC FP): The investment-banking unit of Credit Mutuel said first-half net income plunged to 105 million euros from 704 million euros a year earlier after the market value of its investments fell. The shares added 1.50 euros, or 1.2 percent, to 130 euros.
Fonciere Massena SCA (SOCM FP): The real-estate investment trust run by Credit Mutuel Group bought offices near Nantes in France for 9 million euros. The property will be leased to Credit Mutuel. The shares fell 35 cents, or 3.2 percent, to 10.70 euros.
GFI Informatique SA (GFI FP): The computer-services company reported a 16 percent rise in second-quarter sales to 191.3 million euros and said it was ``confident'' of meeting full-year targets. The shares rose 11 cents, or 2.9 percent, to 3.95 euros.
Le Noble Age SA (LNA FP): The retirement-home operator said second-quarter revenue rose 45 percent to 33.4 million euros and confirmed its full-year targets. The shares rose 23 cents, or 1.6 percent, to 15 euros.
Groupe Open SA (OPN FP): The computer services company owns more than 98 percent of consulting company Teamlog SA, the French stock market regulator said in a legal notice. The shares added 32 cents, or 3.4 percent, to 9.64 euros.
Societe Generale SA (GLE FP): France's second-biggest bank by market value reported a 63 percent decline in second-quarter profit to 644 million euros after writedowns linked to the subprime contagion led to a loss at the investment-banking unit. The shares declined 54 cents, or 0.9 percent, to 59.50 euros.
To contact the reporter on this story: Helene Fouquet in Paris at Hfouquet1@bloomberg.net.
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Australia's S&P/ASX Index Declines, Led by BHP on Metals Prices
By Shani Raja
Aug. 5 (Bloomberg) -- Australia's benchmark S&P/ASX 200 Index fell, led by BHP Billiton Ltd. as metal prices tumbled and oil declined to a three-month low.
The index lost 67.30 points, or 1.4 percent, to 4,820.40 at the close of trading in Sydney, the lowest since July 15. The index rebounded from a 2 1/2 year low as Westpac Banking Corp. led a rally in lenders after Australia's central bank left its benchmark interest rate at a 12-year high and signaled it may cut borrowing costs as slowing economic growth cools inflation.
The benchmark's top 10 losers were all resources companies, while a measure of materials stocks on the index fell 6.5 percent, the worst performer among 10 industry groups.
``Commodities prices have hit a choking point,'' said Nader Naeimi, a Sydney-based senior investment strategist at AMP Capital investors, which manages about $108 billion. ``With further evidence of slowing growth there'll be ongoing pressure on mining and resources stocks.''
Global energy and raw-materials stocks fell into bear markets yesterday on plunging prices for commodities from oil and gold to copper and wheat, on concern global economic growth may slow, hurting demand.
BHP, the world's largest mining company, slumped 6.6 percent to A$35.82, the lowest since the end of March. Rio Tinto Group, the third biggest, fell 6.2 percent to A$110.79, the biggest drop in more than a month and lowest price since Jan. 24.
Perilya Ltd., a zinc producer, declined 10 percent, the lowest since 2003, while Minara Resources Ltd., Australia's second-largest nickel producer, dropped to its lowest in almost five years.
Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, declined A$2.80, or 5.2 percent, to A$51.20, the biggest drop in almost two weeks, after crude oil fell in New York. Tropical Storm Edouard will miss most offshore oil facilities as it approaches the coast of Texas.
The following companies were among the biggest winners and losers on the Australian stock exchange.
ABC Learning Centres Ltd. (ABS AU), the world's biggest publicly traded owner of child-care centers, rose 2.5 cents, or 3.7 percent, to 71 cents, the most since July 28. The company said it finished restructuring its board, including the appointment of Paul Binstead, an ex-investment banker, and former Toll Holdings Ltd. director Frank Ford as non-executive directors from September.
Asciano Ltd. (AIO AU), the Australian port and rail operator, climbed 21 cents, or 4.4 percent, to A$5.04, the highest since February. Asciano may be worth 76 percent more than buyout firm TPG Capital's A$2.9 billion ($2.7 billion) hostile cash offer based on recent takeover offers, Citigroup Inc. said.
Axa Asia Pacific Holdings Ltd. (AXA AU), a unit of Europe's second-biggest insurer, rose 31 cents, or 7.2 percent, to A$4.60, the most since Feb. 19 and the benchmark's third-biggest gainer, after earnings excluding investments gained 11 percent on increased sales in Hong Kong.
Incitec Pivot Ltd. (IPL AU) slumped A$9.03, or 5.7 percent, to A$150.80, the biggest drop since July 24. Australia's largest fertilizer maker will ask shareholders to approve a 20-for-1 share split to deter hostile bids.
Indophil Resources NL (IRN AU) added 3 cents, or 1.9 percent, to A$1.34, the steepest advance since July 10. Stanhill Resources Pty, battling Xstrata Plc for control of Australian copper explorer Indophil, may raise its A$540 million ($502 million) offer, Stanhill said in a statement.
Seven Network Ltd. (SEV AU), the television broadcaster controlled by billionaire Kerry Stokes, gained 25 cents, or 3.1 percent, to A$8.39, the highest since June 11. Australia's most watched television broadcaster will buy back more than 19 percent of its stock in a move that may strengthen the control of billionaire Stokes.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
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Aug. 5 (Bloomberg) -- Australia's benchmark S&P/ASX 200 Index fell, led by BHP Billiton Ltd. as metal prices tumbled and oil declined to a three-month low.
The index lost 67.30 points, or 1.4 percent, to 4,820.40 at the close of trading in Sydney, the lowest since July 15. The index rebounded from a 2 1/2 year low as Westpac Banking Corp. led a rally in lenders after Australia's central bank left its benchmark interest rate at a 12-year high and signaled it may cut borrowing costs as slowing economic growth cools inflation.
The benchmark's top 10 losers were all resources companies, while a measure of materials stocks on the index fell 6.5 percent, the worst performer among 10 industry groups.
``Commodities prices have hit a choking point,'' said Nader Naeimi, a Sydney-based senior investment strategist at AMP Capital investors, which manages about $108 billion. ``With further evidence of slowing growth there'll be ongoing pressure on mining and resources stocks.''
Global energy and raw-materials stocks fell into bear markets yesterday on plunging prices for commodities from oil and gold to copper and wheat, on concern global economic growth may slow, hurting demand.
BHP, the world's largest mining company, slumped 6.6 percent to A$35.82, the lowest since the end of March. Rio Tinto Group, the third biggest, fell 6.2 percent to A$110.79, the biggest drop in more than a month and lowest price since Jan. 24.
Perilya Ltd., a zinc producer, declined 10 percent, the lowest since 2003, while Minara Resources Ltd., Australia's second-largest nickel producer, dropped to its lowest in almost five years.
Woodside Petroleum Ltd., Australia's second-largest oil and gas producer, declined A$2.80, or 5.2 percent, to A$51.20, the biggest drop in almost two weeks, after crude oil fell in New York. Tropical Storm Edouard will miss most offshore oil facilities as it approaches the coast of Texas.
The following companies were among the biggest winners and losers on the Australian stock exchange.
ABC Learning Centres Ltd. (ABS AU), the world's biggest publicly traded owner of child-care centers, rose 2.5 cents, or 3.7 percent, to 71 cents, the most since July 28. The company said it finished restructuring its board, including the appointment of Paul Binstead, an ex-investment banker, and former Toll Holdings Ltd. director Frank Ford as non-executive directors from September.
Asciano Ltd. (AIO AU), the Australian port and rail operator, climbed 21 cents, or 4.4 percent, to A$5.04, the highest since February. Asciano may be worth 76 percent more than buyout firm TPG Capital's A$2.9 billion ($2.7 billion) hostile cash offer based on recent takeover offers, Citigroup Inc. said.
Axa Asia Pacific Holdings Ltd. (AXA AU), a unit of Europe's second-biggest insurer, rose 31 cents, or 7.2 percent, to A$4.60, the most since Feb. 19 and the benchmark's third-biggest gainer, after earnings excluding investments gained 11 percent on increased sales in Hong Kong.
Incitec Pivot Ltd. (IPL AU) slumped A$9.03, or 5.7 percent, to A$150.80, the biggest drop since July 24. Australia's largest fertilizer maker will ask shareholders to approve a 20-for-1 share split to deter hostile bids.
Indophil Resources NL (IRN AU) added 3 cents, or 1.9 percent, to A$1.34, the steepest advance since July 10. Stanhill Resources Pty, battling Xstrata Plc for control of Australian copper explorer Indophil, may raise its A$540 million ($502 million) offer, Stanhill said in a statement.
Seven Network Ltd. (SEV AU), the television broadcaster controlled by billionaire Kerry Stokes, gained 25 cents, or 3.1 percent, to A$8.39, the highest since June 11. Australia's most watched television broadcaster will buy back more than 19 percent of its stock in a move that may strengthen the control of billionaire Stokes.
To contact the reporter on this story: Shani Raja in Sydney at sraja4@bloomberg.net.
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Most Japan Stocks Fall, Led by Commodity Producers on Oil Drop
By Masaki Kondo and Patrick Rial
Aug. 5 (Bloomberg) -- Most Japanese stocks fell, led by commodities producers after oil sank to a three-month low, denting their earnings prospects. Paper and tire makers surged.
Inpex Holdings Inc., Japan's largest oil explorer, sank to the lowest in six months, while Nippon Paper Group Inc. led its peers to a seven-month high as concerns eased that fuel costs will eat into profit. Seafood processor Nippon Suisan Kaisha Ltd. plunged the most on record after reporting a loss.
``The drop in crude isn't reflective of a global slowdown, but rather a reaction to the extreme prices we were seeing,'' said Koji Nakatsuka, a Tokyo-based fund manager at RCM Capital Management LLC, which manages $18.7 billion globally.
The Nikkei 225 Stock Average swung between gains and losses nine times and closed down 18.52, or 0.1 percent, to 12,914.66 in Tokyo. The broader Topix index dipped 0.54, or less than 0.1 percent, to 1,247.71. Seventeen of 33 industry groups on the Topix fell.
Crude oil yesterday dropped 3 percent to the lowest close since May 5, as Tropical Storm Edouard will avoid most offshore production facilities in the U.S. Gulf Coast as it approaches Texas.
Nikkei futures expiring in September slipped 0.4 percent to 12,900 in Osaka and lost 0.3 percent to 12,905 in Singapore.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net;
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Aug. 5 (Bloomberg) -- Most Japanese stocks fell, led by commodities producers after oil sank to a three-month low, denting their earnings prospects. Paper and tire makers surged.
Inpex Holdings Inc., Japan's largest oil explorer, sank to the lowest in six months, while Nippon Paper Group Inc. led its peers to a seven-month high as concerns eased that fuel costs will eat into profit. Seafood processor Nippon Suisan Kaisha Ltd. plunged the most on record after reporting a loss.
``The drop in crude isn't reflective of a global slowdown, but rather a reaction to the extreme prices we were seeing,'' said Koji Nakatsuka, a Tokyo-based fund manager at RCM Capital Management LLC, which manages $18.7 billion globally.
The Nikkei 225 Stock Average swung between gains and losses nine times and closed down 18.52, or 0.1 percent, to 12,914.66 in Tokyo. The broader Topix index dipped 0.54, or less than 0.1 percent, to 1,247.71. Seventeen of 33 industry groups on the Topix fell.
Crude oil yesterday dropped 3 percent to the lowest close since May 5, as Tropical Storm Edouard will avoid most offshore production facilities in the U.S. Gulf Coast as it approaches Texas.
Nikkei futures expiring in September slipped 0.4 percent to 12,900 in Osaka and lost 0.3 percent to 12,905 in Singapore.
To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net;
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Asian Stocks Fall for a Third Day; BHP Declines on Oil, Metals
By Chen Shiyin and Shani Raja
Aug. 5 (Bloomberg) -- Asian stocks fell for a third day, led by commodity producers and financial companies, after raw- material prices slumped and HSBC Holdings Plc warned that profit growth from emerging markets will slow.
BHP Billiton Ltd., the world's largest mining company and Australia's No. 1 oil producer, dropped as copper plunged to the lowest level in six months and crude traded near $120 a barrel. China Steel Corp. fell in Taipei after the Commercial Times reported that demand will decline in China. HSBC, Europe's largest bank by market value, retreated the most in three weeks after reporting the steepest earnings decline since 2001.
``Commodities prices have hit a choking point,'' said Nader Naeimi, a Sydney-based senior investment strategist at AMP Capital investors, which manages about $108 billion. ``With further evidence of slowing growth there'll be ongoing pressure on mining and resources stocks.''
The MSCI Asia-Pacific Index slipped 0.8 percent to 127.45 as of 1:25 p.m. in Tokyo, poised for the lowest close since September 2006. Measures tracking energy and mining companies had the biggest declines among the 10 industry groups in the benchmark index, which lost 2.9 percent the previous two days. China's CSI 300 Index fell 0.7 percent as trading slumped to a 19-month low yesterday.
Japan's Nikkei 225 Stock Average advanced 0.2 percent to 12,955.68, led by Canon Inc., the world's No. 1 digital-camera maker, and Toyota Motor Corp. on speculation lower energy costs will bolster consumer spending. Indexes retreated elsewhere in the region, except for the Philippines and India.
U.S. Stocks
U.S. stocks retreated yesterday, sending the Standard & Poor's 500 Index to its third straight day of losses. Consumer inflation rose 0.8 percent in June, the most since September 2005, and eroded consumers' buying power, the Commerce Department said. S&P 500 index futures rose 0.1 percent today.
HSBC's net income for the six months ended June 30 plunged 29 percent from a year earlier to $7.7 billion, the company said yesterday amid record U.S. subprime mortgage defaults. The outlook is ``highly challenging,'' Chairman Stephen Green said. The shares lost 2 percent to HK$126.80 in Hong Kong, set for the biggest drop since July 15.
BHP dropped 6.1 percent to A$36, on course for its largest decline since July 3 and the lowest close since March 31. Rio Tinto Group, the world's third-largest mining company, fell 5.5 percent to A$111.60. Jiangxi Copper Co., China's No. 2 producer of the metal, dropped 5 percent to HK$12.96 in Hong Kong.
Copper
Copper tumbled as much as 4.3 percent in New York to the lowest since Feb. 8, after inventories monitored by the London Metal Exchange reached a six-month high. Prices of aluminum, nickel and platinum also slipped.
China Steel plunged by the daily limit of 7 percent to NT$39.35 in Taipei, pacing a decline among Asian steelmakers. Demand for steel in China will probably drop this year because of increasing supply as well as a slowdown in the property market, Taipei-based Commercial Times said today, quoting a report from the China Iron and Steel Association.
JFE Holdings Inc., Japan's second-largest steelmaker, dropped 5.5 percent to 4,470 yen. BlueScope Steel Ltd., Australia's biggest, tumbled 6.3 percent to A$9.85.
`Keep Falling'
``The perception that the global economy is slowing is damping demand for commodities, sending prices down,'' said Park Sehick, a fund manager at Hanwha Investment Trust Management Co. in Seoul, which manages the equivalent of $1 billion in equities. ``Commodity prices haven't come down enough yet and will keep on falling.''
A gauge of 166 mining, farm and chemical companies on the MSCI World Index lost 3.3 percent yesterday, bringing the measure into a bear market. A gauge of 117 energy producers fell 3.1 percent, extending its retreat from a May record to 20 percent.
The MSCI Asia-Pacific Materials Index dropped 3.9 percent today, the biggest decline among the wider regional index's industry groups. It has slumped 31 percent since rising to a record high on Oct. 11.
Asian energy stocks fell 2.9 percent. Inpex Holdings Inc., Japan's largest oil explorer, tumbled 4 percent to 985,000 yen. Santos Ltd., Australia's third-biggest oil explorer, sank 5.7 percent to A$16.83. Cnooc Ltd., China's largest offshore oil explorer, slipped 5 percent to HK$10.94 in Hong Kong.
Crude oil for September delivery dropped 3 percent yesterday to $121.41, the lowest close since May 5. Futures fell 0.9 percent to $120.34 at 12:10 p.m. Tokyo time, 18 percent below the record high of $147.27 on July 11.
Bridgestone
Bridgestone Corp., the world's largest tiremaker, added 3.7 percent to 1,718 yen on expectations that falling oil prices will reduce the cost of synthetic rubber and other oil-based materials.
Canon, which gets three-quarters of its sales from outside Japan, gained 2.1 percent to 4,900 yen. Toyota rose 1.6 percent to 4,530 yen. The world's second-largest automaker generates about a third of its revenue from North America. Japanese exporters also gained as the U.S. dollar traded near a seven- month high against the yen, increasing the value of overseas sales.
Property stocks declined in China and Singapore. China Vanke Co., the country's largest publicly traded homebuilder, dropped 5 percent to 8.05 yuan after saying first-half profit growth slowed. Keppel Land Ltd., Singapore's No. 3 developer, retreated 4.1 percent to S$4.43, the lowest since September 2006, after UBS AG downgraded the shares, citing a more ``cautious outlook'' in Singapore, China and Vietnam.
Credit Saison Co. surged after the Nikkei newspaper reported that the company was in merger talks with Orix Corp. Credit Saison jumped 11 percent to 2,325 yen, the second-largest advance on MSCI's Asian index and the biggest gain since March 2001. Orix Corp. advanced 2.5 percent to 15,060 yen.
To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net
Read more...
Aug. 5 (Bloomberg) -- Asian stocks fell for a third day, led by commodity producers and financial companies, after raw- material prices slumped and HSBC Holdings Plc warned that profit growth from emerging markets will slow.
BHP Billiton Ltd., the world's largest mining company and Australia's No. 1 oil producer, dropped as copper plunged to the lowest level in six months and crude traded near $120 a barrel. China Steel Corp. fell in Taipei after the Commercial Times reported that demand will decline in China. HSBC, Europe's largest bank by market value, retreated the most in three weeks after reporting the steepest earnings decline since 2001.
``Commodities prices have hit a choking point,'' said Nader Naeimi, a Sydney-based senior investment strategist at AMP Capital investors, which manages about $108 billion. ``With further evidence of slowing growth there'll be ongoing pressure on mining and resources stocks.''
The MSCI Asia-Pacific Index slipped 0.8 percent to 127.45 as of 1:25 p.m. in Tokyo, poised for the lowest close since September 2006. Measures tracking energy and mining companies had the biggest declines among the 10 industry groups in the benchmark index, which lost 2.9 percent the previous two days. China's CSI 300 Index fell 0.7 percent as trading slumped to a 19-month low yesterday.
Japan's Nikkei 225 Stock Average advanced 0.2 percent to 12,955.68, led by Canon Inc., the world's No. 1 digital-camera maker, and Toyota Motor Corp. on speculation lower energy costs will bolster consumer spending. Indexes retreated elsewhere in the region, except for the Philippines and India.
U.S. Stocks
U.S. stocks retreated yesterday, sending the Standard & Poor's 500 Index to its third straight day of losses. Consumer inflation rose 0.8 percent in June, the most since September 2005, and eroded consumers' buying power, the Commerce Department said. S&P 500 index futures rose 0.1 percent today.
HSBC's net income for the six months ended June 30 plunged 29 percent from a year earlier to $7.7 billion, the company said yesterday amid record U.S. subprime mortgage defaults. The outlook is ``highly challenging,'' Chairman Stephen Green said. The shares lost 2 percent to HK$126.80 in Hong Kong, set for the biggest drop since July 15.
BHP dropped 6.1 percent to A$36, on course for its largest decline since July 3 and the lowest close since March 31. Rio Tinto Group, the world's third-largest mining company, fell 5.5 percent to A$111.60. Jiangxi Copper Co., China's No. 2 producer of the metal, dropped 5 percent to HK$12.96 in Hong Kong.
Copper
Copper tumbled as much as 4.3 percent in New York to the lowest since Feb. 8, after inventories monitored by the London Metal Exchange reached a six-month high. Prices of aluminum, nickel and platinum also slipped.
China Steel plunged by the daily limit of 7 percent to NT$39.35 in Taipei, pacing a decline among Asian steelmakers. Demand for steel in China will probably drop this year because of increasing supply as well as a slowdown in the property market, Taipei-based Commercial Times said today, quoting a report from the China Iron and Steel Association.
JFE Holdings Inc., Japan's second-largest steelmaker, dropped 5.5 percent to 4,470 yen. BlueScope Steel Ltd., Australia's biggest, tumbled 6.3 percent to A$9.85.
`Keep Falling'
``The perception that the global economy is slowing is damping demand for commodities, sending prices down,'' said Park Sehick, a fund manager at Hanwha Investment Trust Management Co. in Seoul, which manages the equivalent of $1 billion in equities. ``Commodity prices haven't come down enough yet and will keep on falling.''
A gauge of 166 mining, farm and chemical companies on the MSCI World Index lost 3.3 percent yesterday, bringing the measure into a bear market. A gauge of 117 energy producers fell 3.1 percent, extending its retreat from a May record to 20 percent.
The MSCI Asia-Pacific Materials Index dropped 3.9 percent today, the biggest decline among the wider regional index's industry groups. It has slumped 31 percent since rising to a record high on Oct. 11.
Asian energy stocks fell 2.9 percent. Inpex Holdings Inc., Japan's largest oil explorer, tumbled 4 percent to 985,000 yen. Santos Ltd., Australia's third-biggest oil explorer, sank 5.7 percent to A$16.83. Cnooc Ltd., China's largest offshore oil explorer, slipped 5 percent to HK$10.94 in Hong Kong.
Crude oil for September delivery dropped 3 percent yesterday to $121.41, the lowest close since May 5. Futures fell 0.9 percent to $120.34 at 12:10 p.m. Tokyo time, 18 percent below the record high of $147.27 on July 11.
Bridgestone
Bridgestone Corp., the world's largest tiremaker, added 3.7 percent to 1,718 yen on expectations that falling oil prices will reduce the cost of synthetic rubber and other oil-based materials.
Canon, which gets three-quarters of its sales from outside Japan, gained 2.1 percent to 4,900 yen. Toyota rose 1.6 percent to 4,530 yen. The world's second-largest automaker generates about a third of its revenue from North America. Japanese exporters also gained as the U.S. dollar traded near a seven- month high against the yen, increasing the value of overseas sales.
Property stocks declined in China and Singapore. China Vanke Co., the country's largest publicly traded homebuilder, dropped 5 percent to 8.05 yuan after saying first-half profit growth slowed. Keppel Land Ltd., Singapore's No. 3 developer, retreated 4.1 percent to S$4.43, the lowest since September 2006, after UBS AG downgraded the shares, citing a more ``cautious outlook'' in Singapore, China and Vietnam.
Credit Saison Co. surged after the Nikkei newspaper reported that the company was in merger talks with Orix Corp. Credit Saison jumped 11 percent to 2,325 yen, the second-largest advance on MSCI's Asian index and the biggest gain since March 2001. Orix Corp. advanced 2.5 percent to 15,060 yen.
To contact the reporter for this story: Chen Shiyin in Singapore at schen37@bloomberg.net; Shani Raja in Sydney at sraja4@bloomberg.net
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China Stocks Fall to 3-Week Low; Vanke Drops on Home Forecast
By Chua Kong Ho
Aug. 5 (Bloomberg) -- China's stocks fell to a three-week low, led by property developers and brokerages, after China Vanke Co. reduced its forecast for new homes and the value of securities transactions slumped to a 19-month low.
Vanke, the nation's largest real-estate developer, slumped to a 15-month low. Citic Securities Co., the nation's largest brokerage, declined on speculation income from trading commissions will slow. Shanghai Pudong Development Bank advanced after the Shanghai Securities News reported the central bank agreed to raise a limit on how much commercial banks can lend.
``We're somewhat cautious on the property sector as the physical market is weak,'' said James Liu, deputy chief investment officer at APS Asset Management in Shanghai, which oversees about $1 billion. ``Many people have taken a cautious stance and are watching on the sidelines.''
The CSI 300 Index, which tracks local-currency stocks traded in Shanghai and Shenzhen, lost 28.55, or 1 percent, to 2,744.60 at 1:11 p.m. local time. The gauge is set for its lowest close since July 17. About three stocks fell for each that advanced.
The benchmark index has slumped 49 percent in local currency terms this year, the second-biggest decline among 88 global indexes tracked by Bloomberg, on concern government measures to tackle inflation will erode profit and a supply of new shares will overwhelm demand.
Property Slump
Vanke declined 5.4 percent to 8.01 yuan, the second-biggest drag on the CSI 300. The stock was headed for its lowest close since April 30, 2007. The Shenzhen-based developer reduced its forecast for new-home completion to 5.86 million square meters from 6.89 million square meters, according to a company statement. Goldman, Sachs & Co. cut its price estimate by 6.9 percent.
Poly Real Estate Group, China's second-largest developer by market value, fell 5.4 percent to 14.77 yuan. Gemdale Corp., a Shenzhen-based real-estate builder, slid 3.7 percent to 7.88 yuan.
Citic Securities, the nation's largest brokerage by assets, fell 0.9 percent to 22.20 yuan. Northeast Securities Co., based in China's Liaoning province, lost 1.8 percent to 21.65 yuan. Hong Yuan Securities Co., based in Beijing, dropped 0.9 percent to 15.38 yuan.
The value of transactions on the Shanghai and Shenzhen exchanges fell to 58.5 billion yuan yesterday, the lowest since Dec. 14, 2006, according to figures from the bourses.
Pudong Bank, the Chinese partner of Citigroup Inc., gained 1.6 percent to 23.65 yuan. Bank of Beijing Co. added 1.6 percent to 12.70 yuan.
China's central bank has agreed to increase loan quotas of commercial banks by as much as 10 percent to help ease financing difficulties faced by small and medium-sized companies, the Shanghai Securities News reported, citing people it did not identify.
The Shanghai Composite Index, which measures stocks traded on the larger of the nation's two exchanges, fell 0.5 percent to 2,727.82. The Shenzhen Composite Index dropped 1.3 percent.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net
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Aug. 5 (Bloomberg) -- China's stocks fell to a three-week low, led by property developers and brokerages, after China Vanke Co. reduced its forecast for new homes and the value of securities transactions slumped to a 19-month low.
Vanke, the nation's largest real-estate developer, slumped to a 15-month low. Citic Securities Co., the nation's largest brokerage, declined on speculation income from trading commissions will slow. Shanghai Pudong Development Bank advanced after the Shanghai Securities News reported the central bank agreed to raise a limit on how much commercial banks can lend.
``We're somewhat cautious on the property sector as the physical market is weak,'' said James Liu, deputy chief investment officer at APS Asset Management in Shanghai, which oversees about $1 billion. ``Many people have taken a cautious stance and are watching on the sidelines.''
The CSI 300 Index, which tracks local-currency stocks traded in Shanghai and Shenzhen, lost 28.55, or 1 percent, to 2,744.60 at 1:11 p.m. local time. The gauge is set for its lowest close since July 17. About three stocks fell for each that advanced.
The benchmark index has slumped 49 percent in local currency terms this year, the second-biggest decline among 88 global indexes tracked by Bloomberg, on concern government measures to tackle inflation will erode profit and a supply of new shares will overwhelm demand.
Property Slump
Vanke declined 5.4 percent to 8.01 yuan, the second-biggest drag on the CSI 300. The stock was headed for its lowest close since April 30, 2007. The Shenzhen-based developer reduced its forecast for new-home completion to 5.86 million square meters from 6.89 million square meters, according to a company statement. Goldman, Sachs & Co. cut its price estimate by 6.9 percent.
Poly Real Estate Group, China's second-largest developer by market value, fell 5.4 percent to 14.77 yuan. Gemdale Corp., a Shenzhen-based real-estate builder, slid 3.7 percent to 7.88 yuan.
Citic Securities, the nation's largest brokerage by assets, fell 0.9 percent to 22.20 yuan. Northeast Securities Co., based in China's Liaoning province, lost 1.8 percent to 21.65 yuan. Hong Yuan Securities Co., based in Beijing, dropped 0.9 percent to 15.38 yuan.
The value of transactions on the Shanghai and Shenzhen exchanges fell to 58.5 billion yuan yesterday, the lowest since Dec. 14, 2006, according to figures from the bourses.
Pudong Bank, the Chinese partner of Citigroup Inc., gained 1.6 percent to 23.65 yuan. Bank of Beijing Co. added 1.6 percent to 12.70 yuan.
China's central bank has agreed to increase loan quotas of commercial banks by as much as 10 percent to help ease financing difficulties faced by small and medium-sized companies, the Shanghai Securities News reported, citing people it did not identify.
The Shanghai Composite Index, which measures stocks traded on the larger of the nation's two exchanges, fell 0.5 percent to 2,727.82. The Shenzhen Composite Index dropped 1.3 percent.
To contact the reporter responsible for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net
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