By Janice Kew
Aug. 4 (Bloomberg) -- South Africa's rand weakened against the U.S. dollar.
The rand traded at 7.2443 per dollar as of 7:40 a.m. in Johannesburg, from 7.2200 on Aug. 1.
The currency was the best performer in the world against the dollar and euro in July and last week had its biggest weekly gain in more than five years on speculation accelerating inflation will prompt the central bank to lift interest rates.
Consumer-price growth quickened to 11.6 percent in June, Statistics South Africa said July 30. Producer-price inflation accelerated to 16.8 percent from 16.4 percent in May, the government agency said Aug. 1.
Rising interest rates boost the rand by stoking demand for the currency in the so-called carry trade, in which investors borrow currencies with lower returns such as the Japanese yen or Swiss franc to buy higher-yielding ones elsewhere, earning the spread between the two.
South Africa's currency has gained 11 percent against the dollar since June 12, when the Reserve Bank raised its benchmark rate a half-point to 12 percent to curb inflation. It has offered the best carry-trade return against the U.S. currency, euro and yen over that time, according to data compiled by Bloomberg.
South Africa's main interest rate is 1,150 basis points above that of Japan and 925 basis points higher than in Switzerland. The central bank next meets to discuss interest rates on Aug. 14.
To contact the reporter on this story: Janice Kew in Johannesburg at jkew1@bloomberg.net
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Monday, August 4, 2008
Australian, N.Z. Dollars Rise as Charts Signal Losses Excessive
By Ron Harui
Aug. 4 (Bloomberg) -- The Australian dollar rose from a three-month low and the New Zealand dollar climbed from near its lowest in 10 months after technical charts signaled their more than 2 percent losses of the past week were excessive.
Australia's dollar snapped a four-day losing streak as the currency's 14-day stochastic oscillator, a technical indicator which measures momentum, declined to 6.89, according to data compiled by Bloomberg. New Zealand's dollar also strengthened as its 14-day stochastic oscillator touched 7.95. A level below 20 suggests a currency may have weakened too quickly and is poised to rebound.
``The Aussie and the kiwi are looking oversold on the charts,'' said Lee Wai Tuck, a foreign-exchange strategist at Forecast Pte based in Singapore, referring to the two currencies by their nicknames. ``We could see some buying of both currencies today.''
The Australian dollar advanced to 93.19 U.S. cents as of 3:29 p.m. in Sydney from 92.93 cents late in New York on Aug. 1. It earlier reached 92.86 cents, matching a three-month low touched Aug. 1. The currency gained to 100.44 yen from 100.07 yen. Trading volumes may be lower than normal today because of a bank holiday in New South Wales, Australia's most populous state.
The New Zealand dollar strengthened to 72.86 U.S. cents from 72.73 cents late in New York on Aug. 1, when it reached 72.47 cents, the weakest since Sept. 19. The currency rose to 78.53 yen from 78.32 yen.
Australia's currency fell earlier on speculation policy makers meeting to review interest rates tomorrow will signal they are moving toward cutting borrowing costs to spur growth. New Zealand's currency had declined after a government report showed wages rose less than economists forecast, adding to evidence the economy stalled in the first half of 2008.
`Soft' Data
``There's a combination of soft economic data out of Australia as well as expectations that there will be interest- rate cuts,'' said Paul Koopmans, corporate risk manager in Melbourne at Custom House, a foreign-exchange broker.
Australian house prices fell in the second quarter for the first time in almost three years, the Bureau of Statistics said today. A separate government report on Aug. 7 may show job growth slowed to 5,000 in July from 29,800 in June, according to a Bloomberg News survey of economists.
``Talk of rate cuts will cost the Aussie dearly,'' Peter Pontikis, a treasury strategist at Suncorp-Metway Ltd. in Brisbane, Australia, wrote in a note to clients. ``The pressure is on the Australian dollar to fall to earth and back to more reasonable support at just below 90 U.S. cents.''
The Reserve Bank of Australia will keep its benchmark rate at 7.25 percent tomorrow, according to all 24 economists surveyed by Bloomberg. Investors expect the RBA will cut borrowing costs by 68 basis points in the next year, compared with 29 basis points a week earlier, according to a Credit Suisse Group index based on trading in interest-rate swaps.
Benchmark rates of 7.25 percent in Australia and 8 percent in New Zealand compare with 2 percent in the U.S. and 0.5 percent in Japan, which has made the two South Pacific currencies popular targets for international investors.
To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net.
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Aug. 4 (Bloomberg) -- The Australian dollar rose from a three-month low and the New Zealand dollar climbed from near its lowest in 10 months after technical charts signaled their more than 2 percent losses of the past week were excessive.
Australia's dollar snapped a four-day losing streak as the currency's 14-day stochastic oscillator, a technical indicator which measures momentum, declined to 6.89, according to data compiled by Bloomberg. New Zealand's dollar also strengthened as its 14-day stochastic oscillator touched 7.95. A level below 20 suggests a currency may have weakened too quickly and is poised to rebound.
``The Aussie and the kiwi are looking oversold on the charts,'' said Lee Wai Tuck, a foreign-exchange strategist at Forecast Pte based in Singapore, referring to the two currencies by their nicknames. ``We could see some buying of both currencies today.''
The Australian dollar advanced to 93.19 U.S. cents as of 3:29 p.m. in Sydney from 92.93 cents late in New York on Aug. 1. It earlier reached 92.86 cents, matching a three-month low touched Aug. 1. The currency gained to 100.44 yen from 100.07 yen. Trading volumes may be lower than normal today because of a bank holiday in New South Wales, Australia's most populous state.
The New Zealand dollar strengthened to 72.86 U.S. cents from 72.73 cents late in New York on Aug. 1, when it reached 72.47 cents, the weakest since Sept. 19. The currency rose to 78.53 yen from 78.32 yen.
Australia's currency fell earlier on speculation policy makers meeting to review interest rates tomorrow will signal they are moving toward cutting borrowing costs to spur growth. New Zealand's currency had declined after a government report showed wages rose less than economists forecast, adding to evidence the economy stalled in the first half of 2008.
`Soft' Data
``There's a combination of soft economic data out of Australia as well as expectations that there will be interest- rate cuts,'' said Paul Koopmans, corporate risk manager in Melbourne at Custom House, a foreign-exchange broker.
Australian house prices fell in the second quarter for the first time in almost three years, the Bureau of Statistics said today. A separate government report on Aug. 7 may show job growth slowed to 5,000 in July from 29,800 in June, according to a Bloomberg News survey of economists.
``Talk of rate cuts will cost the Aussie dearly,'' Peter Pontikis, a treasury strategist at Suncorp-Metway Ltd. in Brisbane, Australia, wrote in a note to clients. ``The pressure is on the Australian dollar to fall to earth and back to more reasonable support at just below 90 U.S. cents.''
The Reserve Bank of Australia will keep its benchmark rate at 7.25 percent tomorrow, according to all 24 economists surveyed by Bloomberg. Investors expect the RBA will cut borrowing costs by 68 basis points in the next year, compared with 29 basis points a week earlier, according to a Credit Suisse Group index based on trading in interest-rate swaps.
Benchmark rates of 7.25 percent in Australia and 8 percent in New Zealand compare with 2 percent in the U.S. and 0.5 percent in Japan, which has made the two South Pacific currencies popular targets for international investors.
To contact the reporter on this story: Ron Harui in Singapore at rharui@bloomberg.net.
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HSBC to Negotiate Lower Price for Korea Exchange Bank
By Bomi Lim and Patricia Kuo
Aug. 4 (Bloomberg) -- HSBC Holdings Plc is in talks to cut the price for Korea Exchange Bank after Asian financial stocks tumbled 18 percent since the $6 billion purchase was announced in September, two people familiar with the matter said.
HSBC, Europe's largest bank, yesterday said it is still negotiating to buy Lone Star Funds' 51 percent stake in Korea Exchange Bank, after a second deadline for completing the deal expired July 31. The people, who declined to be identified because discussions are ongoing, didn't say by how much HSBC is seeking to reduce the price. Korea Exchange Bank fell the most in almost three weeks in Seoul trading.
The MSCI Asia Pacific Financials Index has slumped in the past year as the U.S. mortgage market collapse triggered a credit contraction and rising oil prices stoked concerns about a global economic slowdown. South Korean regulators have withheld approval for the deal until a legal dispute concerning Lone Star's 2003 purchase of Korea Exchange Bank is resolved.
``It would be natural for HSBC to try to renegotiate the price given the market conditions,'' said Shim Kyu Sun, an analyst at CJ Investment & Securities Co. who has a ``hold'' rating on Korea Exchange. ``As much as HSBC is determined to buy KEB, it's also true that the current price is too high.''
Korea Exchange Bank fell 3.1 percent to 12,650 won at 12:20 p.m. in Seoul, the most since July 16 and underperforming the 1.7 percent decline in an index tracking 54 financial stocks on the country's main bourse. The bank has a price-to-book ratio of 1.2, compared with 1.53 for HSBC.
`Being Patient'
The stock has fallen 13 percent since Sept. 3, 2007, when HSBC offered to buy Korea Exchange Bank for 18,045 won per share. HSBC later adjusted the price to 17,725 won a share to reflect the Korean bank's dividend payment earlier this year.
HSBC in April extended the first deadline by three months to buy control of Korea Exchange Bank, which would give it more than 7.7 million customers and 345 branches in Asia's fourth-largest economy.
HSBC hasn't terminated the agreement, the bank said yesterday in a statement to the Hong Kong Stock Exchange. ``We don't lose anything by being patient to get the deal done,'' HSBC's London-based spokesman Patrick McGuinness, said yesterday in a telephone interview.
``The stock price can go up and down, but the overall value of Korea Exchange Bank has increased over the years,'' Lee Sung Sik, a spokesman at the Seoul-based bank, said in an interview, declining to comment on negotiations between HSBC and Lone Star.
Falling Profits
Michael Breen, president of Insight Communications Consultants, which represents Lone Star in Seoul, said he had no immediate comment. Yoo Jae Hoon, a spokesman at the Financial Services Commission, wasn't immediately available.
HSBC may report its sharpest decline in profit since 2001 when it announces earnings today. First-half net income probably dropped 33 percent to $7.34 billion from a year earlier as costs for bad U.S. loans increased, according to analysts surveyed by Bloomberg. The company may say it added $9.7 billion to loan-loss reserves during the first six months of the year, after setting aside $27.8 billion over 2006 and 2007.
Korea Exchange Bank last week said second-quarter profit fell 11 percent from a year earlier as higher funding costs crimped margins from lending.
South Korea's Financial Services Commission said July 25 it will begin reviewing HSBC's application, which was first submitted in December, adding a final go-ahead would still depend on how the legal matters were resolved.
New Application
``The fact that HSBC has not exercised its right to terminate is a demonstration of HSBC's commitment to Korea and to our confidence in the Korean government,'' said Simon Cooper, chief executive officer of HSBC's South Korean unit, through a spokeswoman. The company will submit a revised application to regulators ``as soon as practicable,'' he said.
Lone Star and its South Korea country head Paul Yoo were cleared in June by the Seoul High Court of price manipulation charges, overturning a lower court ruling after Yoo spent more than four months in prison. Prosecutors have appealed to the Supreme Court. Calls to Lone Star were not answered.
In a related case, regulators also allege Lone Star's 2003 acquisition of the Seoul-based bank was engineered at an artificially low price through a political conspiracy.
Lone Star has already recouped about 75 percent of its $2 billion investment in Korea Exchange through stake sales and dividend payments.
To contact the reporter on this story: Bomi Lim in Seoul at blim30@bloomberg.net To contact the reporter for this story: Patricia Kuo in Hong Kong at pkuo2@bloomberg.net.
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Asian Currencies: Peso, Won Lead Declines on Oil, Stock Sales
By David Yong and Karl Lester M. Yap
Aug. 4 (Bloomberg) -- The Philippine peso fell, pacing declines among regional currencies, on speculation fund outflows will undermine the central bank's balance of payments target.
The peso dropped for a third day after the Philippine Star newspaper said the nation's balance of payments surplus may be not meet the central bank's estimate of $2.5 billion, citing people at the Monetary Board it didn't identify. South Korea's won declined on concern higher oil prices will prompt refiners to buy more dollars.
``A decreasing BOP surplus will add pressure to the currency,'' said Antonio Espedido, treasurer at China Banking Corp. in Manila. ``The only thing that could mitigate it is if remittances will hold up,'' he said, referring to the funds sent home by Filipinos working overseas.
The peso dropped 0.6 percent to 44.470 per dollar as of 12:33 p.m. in Manila, according to Tullett Prebon Plc. It earlier touched 44.478, the lowest since July 24. The won fell 0.1 percent to 1,015.80, adding to its 8 percent loss this year, according to Seoul Money Brokerage Services Ltd.
The peso slumped as foreign investors sold more local stocks than they bought everyday in July except four. Most Asian currencies weakened today, including the Taiwan dollar and the Indonesian rupiah, as crude oil costs increased.
Korea's won traded near the weakest in a month on speculation refiners are buying more dollars to pay for imports and global funds sold local stocks. A Bank of Korea report today showed the nation's foreign-exchange reserves declined for a fourth month in July.
Crude Costs
``There's a steady demand for the dollar as usual in spite of caution against intervention from the authorities,'' said Sam Hong, a currency trader at Shinhan Bank in Seoul. ``The drop in reserves shows their diminishing capability to intervene.''
The Philippines, South Korea and Taiwan import almost all of the oil they consume. Crude oil for September delivery rose for a second day to $126. 31 a barrel as a storm threatened U.S. output in the Gulf of Mexico.
China's yuan slid for a fourth day, the longest losing stretch since July 2007, on concern the government will tighten capital controls to help temper currency gains that are hurting exports. Speculative capital betting on faster gains in the yuan has driven a 6.7 percent advance in the currency this year, almost equal the pace in all of 2007.
`Hot Money' Crackdown
``The crackdown on hot money will definitely affect the yuan's exchange rate,'' said Lu Zhengwei, an economist at Industrial Bank Co. in Shanghai. ``Since the government started stricter rules to control fake foreign-trade transactions, there has been less exporters' demand for the yuan.''
China is revising its currency management regulation to better control capital flows, the government said in a statement on its Web site on Aug. 1.
The yuan traded at 6.8465 per dollar in Shanghai versus 6.8425 on Aug. 1, according to the China Foreign Exchange Trade System. The currency's 0.3 percent gain in July was its smallest monthly advance since March 2007.
Elsewhere, Malaysia's ringgit declined 0.1 percent to 3.2660, Taiwan's dollar dropped 0.2 percent to NT$30.7 and the Singapore dollar was little changed at S$1.3695. Vietnam's dong traded at 16,747.5 versus 16,750 on Aug. 1 while Indonesia's rupiah slipped 0.1 percent to 9,102.
To contact the reporters on this story: David Yong in Singapore at dyong@bloomberg.net; Karl Lester M. Yap in Manila at kyap5@bloomberg.net.
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Aug. 4 (Bloomberg) -- The Philippine peso fell, pacing declines among regional currencies, on speculation fund outflows will undermine the central bank's balance of payments target.
The peso dropped for a third day after the Philippine Star newspaper said the nation's balance of payments surplus may be not meet the central bank's estimate of $2.5 billion, citing people at the Monetary Board it didn't identify. South Korea's won declined on concern higher oil prices will prompt refiners to buy more dollars.
``A decreasing BOP surplus will add pressure to the currency,'' said Antonio Espedido, treasurer at China Banking Corp. in Manila. ``The only thing that could mitigate it is if remittances will hold up,'' he said, referring to the funds sent home by Filipinos working overseas.
The peso dropped 0.6 percent to 44.470 per dollar as of 12:33 p.m. in Manila, according to Tullett Prebon Plc. It earlier touched 44.478, the lowest since July 24. The won fell 0.1 percent to 1,015.80, adding to its 8 percent loss this year, according to Seoul Money Brokerage Services Ltd.
The peso slumped as foreign investors sold more local stocks than they bought everyday in July except four. Most Asian currencies weakened today, including the Taiwan dollar and the Indonesian rupiah, as crude oil costs increased.
Korea's won traded near the weakest in a month on speculation refiners are buying more dollars to pay for imports and global funds sold local stocks. A Bank of Korea report today showed the nation's foreign-exchange reserves declined for a fourth month in July.
Crude Costs
``There's a steady demand for the dollar as usual in spite of caution against intervention from the authorities,'' said Sam Hong, a currency trader at Shinhan Bank in Seoul. ``The drop in reserves shows their diminishing capability to intervene.''
The Philippines, South Korea and Taiwan import almost all of the oil they consume. Crude oil for September delivery rose for a second day to $126. 31 a barrel as a storm threatened U.S. output in the Gulf of Mexico.
China's yuan slid for a fourth day, the longest losing stretch since July 2007, on concern the government will tighten capital controls to help temper currency gains that are hurting exports. Speculative capital betting on faster gains in the yuan has driven a 6.7 percent advance in the currency this year, almost equal the pace in all of 2007.
`Hot Money' Crackdown
``The crackdown on hot money will definitely affect the yuan's exchange rate,'' said Lu Zhengwei, an economist at Industrial Bank Co. in Shanghai. ``Since the government started stricter rules to control fake foreign-trade transactions, there has been less exporters' demand for the yuan.''
China is revising its currency management regulation to better control capital flows, the government said in a statement on its Web site on Aug. 1.
The yuan traded at 6.8465 per dollar in Shanghai versus 6.8425 on Aug. 1, according to the China Foreign Exchange Trade System. The currency's 0.3 percent gain in July was its smallest monthly advance since March 2007.
Elsewhere, Malaysia's ringgit declined 0.1 percent to 3.2660, Taiwan's dollar dropped 0.2 percent to NT$30.7 and the Singapore dollar was little changed at S$1.3695. Vietnam's dong traded at 16,747.5 versus 16,750 on Aug. 1 while Indonesia's rupiah slipped 0.1 percent to 9,102.
To contact the reporters on this story: David Yong in Singapore at dyong@bloomberg.net; Karl Lester M. Yap in Manila at kyap5@bloomberg.net.
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Loonie Loses Currency Wings as Canada Hurt by U.S.
By Liz Capo McCormick
Aug. 4 (Bloomberg) -- Currency traders are beginning to realize that for all its riches in oil, copper and lumber, Canada's economy may not be so different than the U.S. after all.
While Canadians celebrated last year as the country's dollar reached parity with its U.S. counterpart for the first time since 1976, traders now predict the currency will fall as much as 17 percent through 2009.
After soaring 17 percent in 2007, the loonie, as the currency is known because of the aquatic bird on the one-dollar coin, is down 2.8 percent in 2008 amid a shrinking economy and an 13 percent drop in oil prices the past month. It's one of five of the 16 most-widely traded currencies to drop against the U.S. greenback, joining the New Zealand dollar, South Korean won, South African rand and British pound.
``The way energy prices and certain commodities have boomed, many thought we would weather the downturn better,'' said Steve Butler, director of foreign-exchange trading in Toronto at Scotia Capital Inc., a unit of Canada's third-largest bank. ``You've got a pessimistic look at the economy by the market. It's forced a lot of people to rethink that view.''
Canada's economy shrank 0.1 percent in May, as the extraction of natural gas slowed and car production dropped, Statistics Canada said last week in Ottawa. Economists surveyed by Bloomberg predicted a 0.2 percent expansion, according to the median of 24 estimates.
Forecast Cut
The Bank of Canada cut its 2008 growth forecast on July 15 to 1 percent from 1.4 percent. That's even less than the U.S., where the economy is likely to expand 1.5 percent, according to the median estimate of 81 analysts in a separate poll.
Canada's currency traded at C$1.0271 per U.S. dollar as of 1:43 p.m. in Tokyo, depreciating 11.8 percent since it reached 90.58 Canadian cents on Nov. 7, the strongest since 1950.
The loonie will slide to C$1.05 by the end of December, and to C$1.09 by the start of 2010, according to the median estimate of 31 strategists surveyed by Bloomberg. New York-based Lehman Brothers Holdings Inc. is the biggest bear, predicting the currency will weaken to C$1.15 this year and C$1.20 in 2009. Paris-based BNP Paribas, the most accurate foreign-exchange forecaster in a 2007 Bloomberg survey, predicts C$1.12 this year.
``The Canadian dollar is extremely overvalued at these levels,'' said Momtchil Pojarliev, head of currencies at London- based Hermes Pension Management Ltd, which has about $70 billion under management. ``Oil prices have come down quite a lot from their peak but the Canadian dollar still hasn't moved at all. The currency should also weaken due to the weaker economic data.''
Export Driven
Commodities such as gold and crude oil account for 54 percent of Canada's exports. As the price of crude oil soared 57 percent in 2007 to $95.83 a barrel, Canada's economy expanded 2.54 percent, compared with 2 percent in the U.S.
And though oil surged 53 percent this year to a record of $147.27 a barrel on July 11, it has since slid to $126.22 on speculation high prices will cut demand for fuel in the U.S., the world's largest energy consumer. U.S. motorists drove less for a seventh consecutive month in May, pointing toward the first annual drop in road travel since 1980, the Federal Highway Administration said in a report last week.
``From a technical and fundamental perspective, we are looking for the Canadian dollar to weaken,'' said George Davis, chief technical analyst in Toronto at RBC Capital Markets, a unit of the Royal Bank of Canada, the country's biggest bank. `Continued contraction in global growth, would be negative for the Canadian dollar.''
Buy Orders
If the currency weakens past C$1.0343, a so-called level of resistance where strategists say orders to buy the loonie may be clustered based on past trading patterns, then it may depreciate to about C$1.0460, Davis said.
The downturn in the Canadian economy is already largely priced into the currency, said Bettina Mueller, a fund manager at Deutsche Bank AG's DWS Investments unit in Frankfurt, which manages $398 billion.
``Commodities are still a positive story, as the strategic direction is upward,'' Mueller said. ``The Canadian dollar is underpinned from this point of view.''
Canada's fixed-income securities are losing their interest- rate advantage over the U.S., further weighing on the currency.
Three-month deposit rates in Canada exceed those in the U.S. by 0.55 percentage point, compared with 0.91 percent in the first quarter. By year-end, the gap will shrink to 0.09 percentage point, according to the median estimate of 47 strategists surveyed by Bloomberg News.
Story `Over'
``Canada's own sluggish domestic fundamentals suggest their interest-rate cycle will lag'' behind an increase in U.S. rates, said Peter Pontikis, a treasury strategist at Brisbane, Australia-based Suncorp-Metway Ltd., the country's third-largest general insurer. ``Like many good stories, as the Canadian dollar had been, it is over. We are targeting a retracement back to more comfortable levels at C$1.14 per U.S. dollar, if not higher into end 2008.''
Interest-rate futures show traders no longer expect the Bank of Canada will raise borrowing costs this year.
Policy makers kept the overnight lending rate at 3 percent on July 15 for a second straight meeting, after lowering it four times from 4.5 percent at the beginning of December. Futures on the Chicago Board of Trade show speculators assign a 30 percent chance that the Federal Reserve will raise its target rate, which has been unchanged at 2 percent since April 30, in September.
Interest rates ``will take a back seat to another catalyst: the end of the oil rally,'' said Kathy Lien, chief strategist at currency dealer DailyFX.com in New York. ``The exchange rate will push higher as the rally in oil prices reverses'' with the Canadian dollar weakening, she said.
To contact the reporter on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net.
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ArcelorMittal to Construct $600 Million Steel Plant in Mexico
By Simon Casey
Aug. 4 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it plans to invest $600 million building a new mill in Mexico.
The mill will produce 1 million metric tons a year of steel billet and have a bar rolling capacity of 500,000 tons, Luxembourg-based ArcelorMittal said today in a statement distributed by Business Wire.
Arcelor Mittal also agreed to acquire the Koppers' Monessen coke plant in Pennsylvania from Koppers Inc. for $160 million, ArcelorMittal said in a separate statement.
To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net
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Aug. 4 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it plans to invest $600 million building a new mill in Mexico.
The mill will produce 1 million metric tons a year of steel billet and have a bar rolling capacity of 500,000 tons, Luxembourg-based ArcelorMittal said today in a statement distributed by Business Wire.
Arcelor Mittal also agreed to acquire the Koppers' Monessen coke plant in Pennsylvania from Koppers Inc. for $160 million, ArcelorMittal said in a separate statement.
To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net
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ArcelorMittal to Construct $600 Million Steel Plant in Mexico
By Simon Casey
Aug. 4 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it plans to invest $600 million building a new mill in Mexico.
The mill will produce 1 million metric tons a year of steel billet and have a bar rolling capacity of 500,000 tons, Luxembourg-based ArcelorMittal said today in a statement distributed by Business Wire.
Arcelor Mittal also agreed to acquire the Koppers' Monessen coke plant in Pennsylvania from Koppers Inc. for $160 million, ArcelorMittal said in a separate statement.
To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net
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Aug. 4 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it plans to invest $600 million building a new mill in Mexico.
The mill will produce 1 million metric tons a year of steel billet and have a bar rolling capacity of 500,000 tons, Luxembourg-based ArcelorMittal said today in a statement distributed by Business Wire.
Arcelor Mittal also agreed to acquire the Koppers' Monessen coke plant in Pennsylvania from Koppers Inc. for $160 million, ArcelorMittal said in a separate statement.
To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net
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ArcelorMittal to Construct $600 Million Steel Plant in Mexico
By Simon Casey
Aug. 4 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it plans to invest $600 million building a new mill in Mexico.
The mill will produce 1 million metric tons a year of steel billet and have a bar rolling capacity of 500,000 tons, Luxembourg-based ArcelorMittal said today in a statement distributed by Business Wire.
Arcelor Mittal also agreed to acquire the Koppers' Monessen coke plant in Pennsylvania from Koppers Inc. for $160 million, ArcelorMittal said in a separate statement.
To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net
Read more...
Aug. 4 (Bloomberg) -- ArcelorMittal, the world's largest steelmaker, said it plans to invest $600 million building a new mill in Mexico.
The mill will produce 1 million metric tons a year of steel billet and have a bar rolling capacity of 500,000 tons, Luxembourg-based ArcelorMittal said today in a statement distributed by Business Wire.
Arcelor Mittal also agreed to acquire the Koppers' Monessen coke plant in Pennsylvania from Koppers Inc. for $160 million, ArcelorMittal said in a separate statement.
To contact the reporter on this story: Simon Casey in London at scasey4@bloomberg.net
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OZ Minerals Says Chinese May Be Interested in Company
By Rebecca Keenan
Aug. 4 (Bloomberg) -- OZ Minerals Ltd., the world's second- largest zinc mining company, said Chinese companies may be interested in investing in the company following the recent decline in its share price.
``We'd have to be juicy for them,'' Peter Lester, executive general manager of business development of the Melbourne-based company said today at a media conference in Kalgoorlie, Western Australia. Still, ``no-one has rung us and said do you want to learn Mandarin yet,'' he said.
China is snapping up mining assets in Australia to secure supplies of raw materials to help offset a seven-year gain in metal prices. There will be further Chinese investment into Australia, Oz Minerals' Lester said.
``They cannot afford not to put their foot on assets,'' he said. OZ Minerals, created by Oxiana Ltd.'s acquisition of Zinifex Ltd., produces zinc, copper, gold and nickel from mines in Australia and Laos. Buying Zinifex, boosted OZ Mineral's zinc output fivefold and increased lead and silver output.
OZ Minerals' shares fell as much as 6.5 cents, or 3.4 percent to A$1.85 and was at A$1.88 at 1:25 p.m. Sydney time on the Australian stock exchange. The stock has declined 12 percent since the merged company was formed on July 23.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
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Aug. 4 (Bloomberg) -- OZ Minerals Ltd., the world's second- largest zinc mining company, said Chinese companies may be interested in investing in the company following the recent decline in its share price.
``We'd have to be juicy for them,'' Peter Lester, executive general manager of business development of the Melbourne-based company said today at a media conference in Kalgoorlie, Western Australia. Still, ``no-one has rung us and said do you want to learn Mandarin yet,'' he said.
China is snapping up mining assets in Australia to secure supplies of raw materials to help offset a seven-year gain in metal prices. There will be further Chinese investment into Australia, Oz Minerals' Lester said.
``They cannot afford not to put their foot on assets,'' he said. OZ Minerals, created by Oxiana Ltd.'s acquisition of Zinifex Ltd., produces zinc, copper, gold and nickel from mines in Australia and Laos. Buying Zinifex, boosted OZ Mineral's zinc output fivefold and increased lead and silver output.
OZ Minerals' shares fell as much as 6.5 cents, or 3.4 percent to A$1.85 and was at A$1.88 at 1:25 p.m. Sydney time on the Australian stock exchange. The stock has declined 12 percent since the merged company was formed on July 23.
To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net
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Platinum Futures in Tokyo Tumble by Limit on Car Demand Concern
By Aya Takada
Aug. 4 (Bloomberg) -- Platinum futures in Tokyo plunged by the daily trading limit to the lowest in more than six months on concern slowing car sales may cut demand for the metal used in auto-emission control devices.
Prices fell by 5.1 percent to the lowest since Jan. 31. U.S. auto sales tumbled 13 percent in July as General Motors Corp., Ford Motor Co. and Toyota Motor Corp. posted declines on lower demand for fuel-thirsty trucks. Demand from the car industry represented 60 percent of global platinum consumption last year, according to U.K. refiner Johnson Matthey Plc.
``A sharp drop in U.S. car sales heightened concern that demand for platinum from the auto industry may shrink, prompting investors to cut holdings of platinum futures,'' Kazuhiko Saito, strategist at Interes Capital Management Co. in Tokyo, said today by phone.
Platinum for June delivery was down the 300 yen limit at 5,567 yen a gram ($1,610 an ounce) on the Tokyo Commodity Exchange at the 11 a.m. local time break. The most-active contract lost 25 percent from a record high of 7,427 yen March 6.
Platinum for immediate delivery fell 0.7 percent to $1,645 an ounce at 12:07 p.m. Tokyo time. Palladium for immediate delivery dropped 1.4 percent to $363.75 an ounce.
Demand for platinum in car catalysts rose 8.2 percent to 4.23 million ounces in 2007, according to the Web site of Johnson Matthey. If demand from the car industry contracts this year, it would be the first drop since 1999, the Web site said.
Car Sales
Sales of cars and light trucks fell 29 percent in July at Chrysler LLC, 26 percent at GM, 15 percent at Ford, 12 percent at Toyota and 1.6 percent at Honda Motor Co., the companies said Aug. 1. Nissan Motor Co. was the only major automaker with a gain, reporting an 8.5 percent increase from a year earlier.
GM, Ford and Chrysler rely more on trucks than Asia-based competitors such as Honda and Nissan, and have led a nine-month industry sales slide. Automakers have been unable to meet demand for fuel-efficient cars as $4-a-gallon gasoline and a 1.9 percent second-quarter economic growth rate pinched consumers.
A shift in consumer demand to fuel-efficient compact cars is negative for platinum demand, as a smaller car uses less platinum in emission-control devices, Saito said.
``Platinum use in a compact car is only one-third or one- fourth of the volume of the metal used for trucks,'' he added.
The U.S. industry's annualized selling rate for July was 12.6 million vehicles, the lowest since April 1992, according to Autodata. Full-year sales in 2007 were 16.1 million.
Deutsche Bank said July 23 that full-year auto sales may fall to 14 million this year, the lowest in 15 years. First-half U.S. sales tumbled 10 percent to 7.41 million.
Platinum for immediate delivery tumbled 15 percent in July because of slumping car sales. The metal reached a record $2,301.50 in March, partly because of output cuts in South Africa. Still, in May the country's metal output, excluding gold, rose at a 2.6 percent annual pace, according to Statistics South Africa.
To contact the reporter on this story: Aya Takada in Tokyo atakada2@bloomberg.net
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Aug. 4 (Bloomberg) -- Platinum futures in Tokyo plunged by the daily trading limit to the lowest in more than six months on concern slowing car sales may cut demand for the metal used in auto-emission control devices.
Prices fell by 5.1 percent to the lowest since Jan. 31. U.S. auto sales tumbled 13 percent in July as General Motors Corp., Ford Motor Co. and Toyota Motor Corp. posted declines on lower demand for fuel-thirsty trucks. Demand from the car industry represented 60 percent of global platinum consumption last year, according to U.K. refiner Johnson Matthey Plc.
``A sharp drop in U.S. car sales heightened concern that demand for platinum from the auto industry may shrink, prompting investors to cut holdings of platinum futures,'' Kazuhiko Saito, strategist at Interes Capital Management Co. in Tokyo, said today by phone.
Platinum for June delivery was down the 300 yen limit at 5,567 yen a gram ($1,610 an ounce) on the Tokyo Commodity Exchange at the 11 a.m. local time break. The most-active contract lost 25 percent from a record high of 7,427 yen March 6.
Platinum for immediate delivery fell 0.7 percent to $1,645 an ounce at 12:07 p.m. Tokyo time. Palladium for immediate delivery dropped 1.4 percent to $363.75 an ounce.
Demand for platinum in car catalysts rose 8.2 percent to 4.23 million ounces in 2007, according to the Web site of Johnson Matthey. If demand from the car industry contracts this year, it would be the first drop since 1999, the Web site said.
Car Sales
Sales of cars and light trucks fell 29 percent in July at Chrysler LLC, 26 percent at GM, 15 percent at Ford, 12 percent at Toyota and 1.6 percent at Honda Motor Co., the companies said Aug. 1. Nissan Motor Co. was the only major automaker with a gain, reporting an 8.5 percent increase from a year earlier.
GM, Ford and Chrysler rely more on trucks than Asia-based competitors such as Honda and Nissan, and have led a nine-month industry sales slide. Automakers have been unable to meet demand for fuel-efficient cars as $4-a-gallon gasoline and a 1.9 percent second-quarter economic growth rate pinched consumers.
A shift in consumer demand to fuel-efficient compact cars is negative for platinum demand, as a smaller car uses less platinum in emission-control devices, Saito said.
``Platinum use in a compact car is only one-third or one- fourth of the volume of the metal used for trucks,'' he added.
The U.S. industry's annualized selling rate for July was 12.6 million vehicles, the lowest since April 1992, according to Autodata. Full-year sales in 2007 were 16.1 million.
Deutsche Bank said July 23 that full-year auto sales may fall to 14 million this year, the lowest in 15 years. First-half U.S. sales tumbled 10 percent to 7.41 million.
Platinum for immediate delivery tumbled 15 percent in July because of slumping car sales. The metal reached a record $2,301.50 in March, partly because of output cuts in South Africa. Still, in May the country's metal output, excluding gold, rose at a 2.6 percent annual pace, according to Statistics South Africa.
To contact the reporter on this story: Aya Takada in Tokyo atakada2@bloomberg.net
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Oil Rises as Storm Threatens U.S. Output, Iran Misses Deadline
By Nesa Subrahmaniyan
Aug. 4 (Bloomberg) -- Crude oil rose for a second day as a storm threatened U.S. output in the Gulf of Mexico, and Israeli and U.S. officials sought additional sanctions against Iran.
Tropical Storm Edouard may strengthen to a hurricane while heading west toward Texas, the National Hurricane Center said. Oil rose from an 11-week low last week as Iran, accused of developing nuclear weapons, ignored a deadline in its dispute with the United Nations over its uranium research.
``It's that time of the year, and U.S. Gulf production could be in the path of the storm,'' said Victor Shum, senior principal at Purvin & Gertz Inc. in Singapore. ``Concern about Iran is coming to the fore and supply risks would provide a high floor for prices.''
Crude oil for September delivery rose as much as $1.25, or 1 percent, to $126.35 a barrel in electronic trading on the New York Mercantile Exchange and traded at $126.10 at 1:49 p.m. in Singapore.
Hurricanes Katrina and Rita, both Category 5 storms with wind speeds of more than 155 miles an hour, devastated New Orleans and the U.S. Gulf's oil output and refineries in August, and September 2005, roiling oil and natural-gas markets.
``We can't rule out the possibility that it will strengthen to a Category 1 hurricane,'' Rebecca Waddington, a meteorologist with the Miami-based center, said in an interview. Edouard was lying about 80 miles (125 kilometers) south-southeast of the Mississippi River mouth at 10 p.m. New Orleans time yesterday.
Edouard, with maximum wind speeds of 50 miles an hour, is likely to strengthen as it moves west parallel to the Louisiana coast before making land on the upper Texas coast Aug. 5, the Miami-based hurricane center said. There is a 24 percent chance it will strengthen to a hurricane before striking land.
`Almost Too Late'
``It's really almost too late to evacuate many of the offshore platforms,'' said Andy Lipow, president of Lipow Oil Associates LLC in Houston.
New York oil futures have slipped more than $21 a barrel, or 14 percent, from the record $147.27 on July 11 as U.S. gasoline demand slowed, and a firming of the dollar reduced the attraction of commodities as an investment.
The storm hasn't yet affected operations at the Louisiana Offshore Oil Port, spokeswoman Barb Hestermann said after it became a tropical depression.
The LOOP, as it is known, is the biggest U.S. crude-oil import terminal, with the capacity to receive 1 million barrels a day, or about 11 percent of U.S. imports.
``We're just kind of keeping an eye on it,'' Hestermann said. ``We don't feel like we need to take action.''
Iran's Deadline
New York crude futures gained 0.8 percent on Aug. 1 on speculation the odds of a military strike against nuclear research facilities in Iran, the world's fourth-largest oil producer, were increasing.
Iran didn't respond by an Aug. 2 deadline to an offer from the U.S., Russia, China, France, the U.K. and Germany of economic and diplomatic incentives in exchange for the suspension of its uranium-enrichment program.
Iranian president Mahmoud Ahmadinejad said his nation is ``serious'' in nuclear talks after an informal deadline for it to reply to an incentives offer in exchange for halting uranium enrichment passed.
Iran said last week it has already replied to the proposal put forth by the U.S., Russia, China, France, the U.K. and Germany and dismissed the deadline.
Extra sanctions are needed, Tzipi Livni, Israel's foreign minister, said yesterday on CNN's ``Late Edition'' program.
``Those wildcat factors'' are holding up prices today, Gavin Wendt, senior resources analyst at Fat Prophets Funds Management in Sydney, said in a Bloomberg Television interview. ``Prices should be a lot stronger than they were a week ago,'' given the risks from the storm and Iran, he said.
CFTC Data
Brent crude oil for September settlement climbed as much as $1.12, or 0.9 percent, to $125.30 a barrel on London's ICE Futures Europe exchange, and traded at $125.18 at 1:42 p.m. in Singapore.
Hedge fund managers and other large speculators last week reduced their bets on falling prices, according to Commodity Futures Trading Commission data.
Net-short positions, the difference between orders to buy and sell the commodity, fell to 660 contracts at July 29, 82 percent less than a week earlier.
While the U.S. economy may be heading toward recession, demand in India and China remains strong and global production is straining to keep up, Fat Prophets' Wendt said. He expects oil to reach $175 a barrel before the end of the year.
To contact the reporters on this story: Nesa Subrahmaniyan in Singapore at nesas@bloomberg.net.
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Bradesco, Coca-Cola Femsa, Ecopetrol: Latin Equity Preview
By Paulo Winterstein and James Attwood
Aug. 4 (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 2.5 percent to 4,229.30 yesterday. In Brazil, preferred shares are the most commonly traded class of stock.
Brazil
Banco Bradesco SA (BBDC4 BS): Brazil's biggest non- government bank by assets reports earnings today before markets open. Second-quarter net income may have fallen to 2.1 billion reais ($1.3 billion) from 2.3 billion reais a year earlier, according to the average estimate of three analysts surveyed by Bloomberg. Bradesco fell 2.5 percent to 32.33 reais.
Marcopolo SA (POMO4 BS): Latin America's biggest maker of bus parts and chassis reported ``weak'' second-quarter operating results on higher costs and a stronger currency, Itau Corretora analyst Renata Faber wrote on Aug. 1. She also reiterated her ``hold'' rating on the stock. Caxias do Sul, Brazil-based Marcopolo fell 4.4 percent to 6.07 reais.
Colombia
Ecopetrol SA (ECOPETL CB): Colombia's state-run oil company said first-half profit more than doubled on record oil prices, rising production and an increase in exports. Net income rose to 5.65 trillion pesos ($3.11 billion) from 2.04 trillion pesos a year earlier, Bogota-based Ecopetrol said Aug. 1 in a statement, which didn't include per-share data. Ecopetrol rose 0.4 percent to 2,570 pesos.
Textiles Fabricato Tejicondor SA (FABRI CB): The textile company had its share price estimate cut to 30 pesos from 44 pesos by brokerage Bolsa y Renta, according to a research note distributed Aug. 1, which cited ``weak'' second-quarter earnings. Fabricato rallied 6.3 percent to 28.6 pesos.
Mexico
Coca-Cola Femsa SAB (KOFL MM): Microsoft Corp. founder Bill Gates's private investment fund raised its stake in Coca-Cola Femsa SAB, the largest Coke bottler in Latin America, to 20 percent from 14.6 percent in April. The fund holds 54.2 million shares, according to an Aug. 1 U.S. regulatory filing. Coca-Cola Femsa fell 0.5 percent to 57.01 pesos.
To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.
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Aug. 4 (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 2.5 percent to 4,229.30 yesterday. In Brazil, preferred shares are the most commonly traded class of stock.
Brazil
Banco Bradesco SA (BBDC4 BS): Brazil's biggest non- government bank by assets reports earnings today before markets open. Second-quarter net income may have fallen to 2.1 billion reais ($1.3 billion) from 2.3 billion reais a year earlier, according to the average estimate of three analysts surveyed by Bloomberg. Bradesco fell 2.5 percent to 32.33 reais.
Marcopolo SA (POMO4 BS): Latin America's biggest maker of bus parts and chassis reported ``weak'' second-quarter operating results on higher costs and a stronger currency, Itau Corretora analyst Renata Faber wrote on Aug. 1. She also reiterated her ``hold'' rating on the stock. Caxias do Sul, Brazil-based Marcopolo fell 4.4 percent to 6.07 reais.
Colombia
Ecopetrol SA (ECOPETL CB): Colombia's state-run oil company said first-half profit more than doubled on record oil prices, rising production and an increase in exports. Net income rose to 5.65 trillion pesos ($3.11 billion) from 2.04 trillion pesos a year earlier, Bogota-based Ecopetrol said Aug. 1 in a statement, which didn't include per-share data. Ecopetrol rose 0.4 percent to 2,570 pesos.
Textiles Fabricato Tejicondor SA (FABRI CB): The textile company had its share price estimate cut to 30 pesos from 44 pesos by brokerage Bolsa y Renta, according to a research note distributed Aug. 1, which cited ``weak'' second-quarter earnings. Fabricato rallied 6.3 percent to 28.6 pesos.
Mexico
Coca-Cola Femsa SAB (KOFL MM): Microsoft Corp. founder Bill Gates's private investment fund raised its stake in Coca-Cola Femsa SAB, the largest Coke bottler in Latin America, to 20 percent from 14.6 percent in April. The fund holds 54.2 million shares, according to an Aug. 1 U.S. regulatory filing. Coca-Cola Femsa fell 0.5 percent to 57.01 pesos.
To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.
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HSBC, Imperial, 888, Intertek, Sage: U.K., Irish Equity Preview
By Andrew Shepherd and Sarah Thompson
Aug. 4 (Bloomberg) -- The following is a list of companies whose shares may have unusual price changes in U.K. and Irish markets today. Stock symbols are in parentheses and prices are from the last market close.
The benchmark FTSE 100 Index fell 57.2, or 1.06 percent, to 5,354.70. The FTSE All-Share Index fell 0.95 percent and Ireland's ISEQ Index decreased 6.45 percent.
U.K. Companies:
888 Holdings Plc (888 LN): The second-largest U.K. online gambling company said second-quarter sales rose 33 percent. 888 shares rose 5.8 pence, or 3.4 percent, to 153.75 pence.
British Energy Group Plc (BGY LN) Centrica Plc may revive a 22.5 billion-pound ($45 billion) all-stock merger plan with British Energy, the Sunday Telegraph reported. The share price dropped 30 pence, or 4 percent, to 700 pence.
Fidessa Group Plc (FDSA LN): The financial software developer said results would be at the ``upper'' end of analysts' estimates. Fidessa advanced 17.5 pence, or 2 percent, to 886 pence a share.
HSBC Holdings Plc (HSBA LN): HSBC is in talks to cut the price for Korea Exchange Bank after Asian financial stocks tumbled 18 percent since the $6 billion purchase was announced in September, two people familiar with the matter said. HSBC slipped 2 pence, or 0.24 percent, to 837 pence a share.
Imperial Energy Corp. (IEC LN): The U.K. oil and natural- gas explorer developing deposits in Russia said it has received another approach in relation to a possible cash offer. The shares rose 34 pence, or 3.3 percent, to 1074 pence.
Intertek Group Plc (ITRK LN): The world's largest tester of consumer goods said first-half profit gained 17 percent on rising demand from toy, oil and mineral clients. Intertek shares fell 4 pence, or 0.39 percent, to 1,009 pence.
Morgan Sindall Plc (MGNS LN): The U.K.'s biggest supplier of office interiors said first-half profit rose 22 percent, buoyed by acquisitions at its construction unit. The stock added 16 pence, or 2.9 percent, to 560.
Royal Bank of Scotland (RBS LN): RBS will probably report a pretax loss of between one billion pounds ($1.97 billion) and 1.7 billion pounds for the first half of the year, the Sunday Times cited unidentified analysts as saying. Such a loss would be the biggest in U.K. banking history, five times higher than that of Barclays Plc during the 1992 recession, the newspaper said. The shares advanced 3.5 pence, or 1.65 percent, to 215.25 pence.
Sage Group Plc (SGE LN): The U.K.'s largest software maker said nine-month results were consistent with the company's forecasts. Sage shares advanced 2 pence, or 1 percent, to 198 pence a share.
SDL Plc (SDL LN): The U.K. provider of translation software posted first-half net income of 6.59 million pounds, up from 5.01 million pounds.
Separately, Investec Securities cut its recommendation to ``hold'' from ``buy.'' SDL shares rose 1.8 pence, or 0.5 percent, to 375 pence.
Senior Plc (SNR LN): The U.K. maker of air ducts for Boeing Co. and Airbus SAS planes said first-half profit rose 59 percent after higher demand at its automotive and industrial units. The shares lost 1.5 pence, or 1.4 percent, to 103.5.
Ultra Electronics Holdings Plc (ULE LN): The world's largest supplier of submarine detection buoys reported first- half net income of 17.52 million pounds, up from 17.16 million pounds. The shares rose 7 pence, or 0.5 percent, to 1314 pence.
To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.
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Aug. 4 (Bloomberg) -- The following is a list of companies whose shares may have unusual price changes in U.K. and Irish markets today. Stock symbols are in parentheses and prices are from the last market close.
The benchmark FTSE 100 Index fell 57.2, or 1.06 percent, to 5,354.70. The FTSE All-Share Index fell 0.95 percent and Ireland's ISEQ Index decreased 6.45 percent.
U.K. Companies:
888 Holdings Plc (888 LN): The second-largest U.K. online gambling company said second-quarter sales rose 33 percent. 888 shares rose 5.8 pence, or 3.4 percent, to 153.75 pence.
British Energy Group Plc (BGY LN) Centrica Plc may revive a 22.5 billion-pound ($45 billion) all-stock merger plan with British Energy, the Sunday Telegraph reported. The share price dropped 30 pence, or 4 percent, to 700 pence.
Fidessa Group Plc (FDSA LN): The financial software developer said results would be at the ``upper'' end of analysts' estimates. Fidessa advanced 17.5 pence, or 2 percent, to 886 pence a share.
HSBC Holdings Plc (HSBA LN): HSBC is in talks to cut the price for Korea Exchange Bank after Asian financial stocks tumbled 18 percent since the $6 billion purchase was announced in September, two people familiar with the matter said. HSBC slipped 2 pence, or 0.24 percent, to 837 pence a share.
Imperial Energy Corp. (IEC LN): The U.K. oil and natural- gas explorer developing deposits in Russia said it has received another approach in relation to a possible cash offer. The shares rose 34 pence, or 3.3 percent, to 1074 pence.
Intertek Group Plc (ITRK LN): The world's largest tester of consumer goods said first-half profit gained 17 percent on rising demand from toy, oil and mineral clients. Intertek shares fell 4 pence, or 0.39 percent, to 1,009 pence.
Morgan Sindall Plc (MGNS LN): The U.K.'s biggest supplier of office interiors said first-half profit rose 22 percent, buoyed by acquisitions at its construction unit. The stock added 16 pence, or 2.9 percent, to 560.
Royal Bank of Scotland (RBS LN): RBS will probably report a pretax loss of between one billion pounds ($1.97 billion) and 1.7 billion pounds for the first half of the year, the Sunday Times cited unidentified analysts as saying. Such a loss would be the biggest in U.K. banking history, five times higher than that of Barclays Plc during the 1992 recession, the newspaper said. The shares advanced 3.5 pence, or 1.65 percent, to 215.25 pence.
Sage Group Plc (SGE LN): The U.K.'s largest software maker said nine-month results were consistent with the company's forecasts. Sage shares advanced 2 pence, or 1 percent, to 198 pence a share.
SDL Plc (SDL LN): The U.K. provider of translation software posted first-half net income of 6.59 million pounds, up from 5.01 million pounds.
Separately, Investec Securities cut its recommendation to ``hold'' from ``buy.'' SDL shares rose 1.8 pence, or 0.5 percent, to 375 pence.
Senior Plc (SNR LN): The U.K. maker of air ducts for Boeing Co. and Airbus SAS planes said first-half profit rose 59 percent after higher demand at its automotive and industrial units. The shares lost 1.5 pence, or 1.4 percent, to 103.5.
Ultra Electronics Holdings Plc (ULE LN): The world's largest supplier of submarine detection buoys reported first- half net income of 17.52 million pounds, up from 17.16 million pounds. The shares rose 7 pence, or 0.5 percent, to 1314 pence.
To contact the reporter on this story: Sarah Thompson in London at sthompson17@bloomberg.net.
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Air Berlin, Daimler, Deutsche Bank, E.ON: German Equity Preview
By Joseph Mapother and Henrietta Rumberger
Aug. 4 (Bloomberg) -- The following companies may have unusual price changes in Germany. Stock symbols are in parentheses. Share prices are from the previous close.
DAX futures expiring in September decreased 10.50, or 0.2 percent, to 6,417 as of 8:12 a.m. in Frankfurt. Germany's benchmark DAX index fell 83.10, or 1.3 percent, to 6,396.46.
Air Berlin Plc (AB1 GY): Europe's third-biggest discount airline's cost-cutting program will help save at least 35 million euros ($55 million) this year, Chief Executive Officer Joachim Hunold said in an interview with the newspaper Welt am Sonntag. The plan has the potential to produce as much as 150 million euros in savings over 12 months and the airline may increase ticket prices this year, he said. The stock rose 3 cents, or 0.9 percent, to 3.46 euros.
A.S. Creation (ACW GY): Germany's biggest wallpaper manufacturer is scheduled to release second-quarter earnings. Profit last quarter gained 30 percent as retail prices rose and the company's tax bill decreased. The stock rose 22 cents, or 0.7 percent, to 33.70 euros.
Colonia Real Estate AG (KBU GY): The property company said Christoph Wittkop will leave his position on the board of management in charge of asset management. The stock lost 16 cents, or 2.2 percent, to 7.05 euros.
Daimler AG (DAI GY): Stock of the world's second-largest maker of luxury cars is being bought by a foreign hedge fund making use of the lower share price to build a large stake, news magazine Focus reported, citing an unidentified supervisory board member at the automaker. Daimler shares dropped 69 cents, or 1.9 percent, to 36.64 euros.
Deutsche Bank AG (DBK GY): Merrill Lynch & Co. cut its 2008 adjusted earnings per share estimate for Germany's largest bank by 50 percent and said it now assumes a 2008 dividend of 3.5 euros, down from 4 euros.
``Having initially weathered the credit turmoil very well, Deutsche is finding the going tougher in 2008,'' Merrill analysts wrote in a research note dated today. ``We forecast a further 1.5 billion of markdowns for the second half on monolines and leveraged buyouts.''
E.ON AG (EOA GY): Germany's largest utility will treble the number of its shares as it implements a 3-for-1 split to lower the price and make the stock more attractive to private investors. Bearer shares will be converted into registered shares. The stock fell 1.15 euros, or 0.9 percent, to 121.30.
Deutsche Lufthansa AG (LHA GY): Europe's second-biggest airline may face strikes by as many as 5,000 pilots, Handelsblatt reported, citing a spokesman for the Vereinigung Cockpit union. The shares declined 6 cents, or 0.4 percent, to 14.71 euros.
Freenet AG (FNT GY): Chief Executive Officer Eckhard Spoerr has the majority he needs to block an effort to topple him at next Friday's annual shareholders meeting, Focus magazine said, without saying where it got the information. Freenet shares retreated 26 cents, or 2.2 percent, to 11.44 euros.
HVB Group (HVM GY): UniCredit SpA's German banking unit is scheduled to report second-quarter results. The bank reported a first-quarter pretax loss of 318 million euros ($495 million). The share price declined 17 cents, or 0.4 percent, to 40.66 euros.
Siemens AG (SIE GY): Europe's largest engineering company has been asked to disclose findings on its internal bribery investigation, Sueddeutsche Zeitung reported. Hellenic Telecommunications Organization SA, known as OTE, has asked a Munich court to force Siemens to disclose the information so that it can assess whether to sue the German company for damages, the newspaper reported. The shares fell 1.68 euros, or 2.1 percent, to 77.08 euros.
Tipp24 AG (TIM GY): The Internet gambling company said second-quarter net income rose fourfold to 1.6 million euros and it will meet full-year forecasts.
To contact the reporter on this story: Joseph Mapother in Frankfurt at jmapother1@bloomberg.net; Henrietta Rumberger in Frankfurt at hrumberger@bloomberg.net.
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Aug. 4 (Bloomberg) -- The following companies may have unusual price changes in Germany. Stock symbols are in parentheses. Share prices are from the previous close.
DAX futures expiring in September decreased 10.50, or 0.2 percent, to 6,417 as of 8:12 a.m. in Frankfurt. Germany's benchmark DAX index fell 83.10, or 1.3 percent, to 6,396.46.
Air Berlin Plc (AB1 GY): Europe's third-biggest discount airline's cost-cutting program will help save at least 35 million euros ($55 million) this year, Chief Executive Officer Joachim Hunold said in an interview with the newspaper Welt am Sonntag. The plan has the potential to produce as much as 150 million euros in savings over 12 months and the airline may increase ticket prices this year, he said. The stock rose 3 cents, or 0.9 percent, to 3.46 euros.
A.S. Creation (ACW GY): Germany's biggest wallpaper manufacturer is scheduled to release second-quarter earnings. Profit last quarter gained 30 percent as retail prices rose and the company's tax bill decreased. The stock rose 22 cents, or 0.7 percent, to 33.70 euros.
Colonia Real Estate AG (KBU GY): The property company said Christoph Wittkop will leave his position on the board of management in charge of asset management. The stock lost 16 cents, or 2.2 percent, to 7.05 euros.
Daimler AG (DAI GY): Stock of the world's second-largest maker of luxury cars is being bought by a foreign hedge fund making use of the lower share price to build a large stake, news magazine Focus reported, citing an unidentified supervisory board member at the automaker. Daimler shares dropped 69 cents, or 1.9 percent, to 36.64 euros.
Deutsche Bank AG (DBK GY): Merrill Lynch & Co. cut its 2008 adjusted earnings per share estimate for Germany's largest bank by 50 percent and said it now assumes a 2008 dividend of 3.5 euros, down from 4 euros.
``Having initially weathered the credit turmoil very well, Deutsche is finding the going tougher in 2008,'' Merrill analysts wrote in a research note dated today. ``We forecast a further 1.5 billion of markdowns for the second half on monolines and leveraged buyouts.''
E.ON AG (EOA GY): Germany's largest utility will treble the number of its shares as it implements a 3-for-1 split to lower the price and make the stock more attractive to private investors. Bearer shares will be converted into registered shares. The stock fell 1.15 euros, or 0.9 percent, to 121.30.
Deutsche Lufthansa AG (LHA GY): Europe's second-biggest airline may face strikes by as many as 5,000 pilots, Handelsblatt reported, citing a spokesman for the Vereinigung Cockpit union. The shares declined 6 cents, or 0.4 percent, to 14.71 euros.
Freenet AG (FNT GY): Chief Executive Officer Eckhard Spoerr has the majority he needs to block an effort to topple him at next Friday's annual shareholders meeting, Focus magazine said, without saying where it got the information. Freenet shares retreated 26 cents, or 2.2 percent, to 11.44 euros.
HVB Group (HVM GY): UniCredit SpA's German banking unit is scheduled to report second-quarter results. The bank reported a first-quarter pretax loss of 318 million euros ($495 million). The share price declined 17 cents, or 0.4 percent, to 40.66 euros.
Siemens AG (SIE GY): Europe's largest engineering company has been asked to disclose findings on its internal bribery investigation, Sueddeutsche Zeitung reported. Hellenic Telecommunications Organization SA, known as OTE, has asked a Munich court to force Siemens to disclose the information so that it can assess whether to sue the German company for damages, the newspaper reported. The shares fell 1.68 euros, or 2.1 percent, to 77.08 euros.
Tipp24 AG (TIM GY): The Internet gambling company said second-quarter net income rose fourfold to 1.6 million euros and it will meet full-year forecasts.
To contact the reporter on this story: Joseph Mapother in Frankfurt at jmapother1@bloomberg.net; Henrietta Rumberger in Frankfurt at hrumberger@bloomberg.net.
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European Stock-Index Futures Decline; BHP, Rio Tinto May Fall
By Sarah Jones
Aug. 4 (Bloomberg) -- European stock-index futures fell, following declines in Asia. BHP Billiton Ltd. and Rio Tinto Group may lead commodity producers lower after copper retreated.
HSBC Holdings Plc may be active as Europe's largest bank reports first-half earnings. Fortis will probably move after the Belgian financial-services firm posted second-quarter profit that beat analysts' estimates. Air Liquide SA might also be active after the chemical maker's earnings topped estimates.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, slipped 7, or 0.2 percent, to 3,319 at 7:40 a.m. in London. The U.K.'s FTSE 100 Index might fall 8, according to BCG Partners.
``We are looking for a fairly flat start in Europe,'' said Manus Cranny, a London-based analyst at MF Global. ``All eyes will be on HSBC. The bank is seen as the bellwether in regards to subprime and the U.S. housing market.''
The Dow Jones Stoxx 600 Index has slumped 23 percent this year as a slowdown in economic growth and $481 billion of asset writedowns and credit losses worldwide prompted analysts to cut earnings estimates.
U.S. stocks last week fell after General Motors Corp.'s earnings disappointed investors and crude oil rallied. Asian stocks declined today, led by automakers after Nissan Motor Co. and Olympus Corp. said their earnings dropped.
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.
BHP, HSBC
BHP, the world's largest mining company, retreated 2.1 percent in Sydney, while Rio Tinto, the world's third-biggest mining company, declined 5.5 percent.
Metal prices fell on Aug. 1, partly on speculation that demand from automakers will drop. Prices were little changed in Asia today.
HSBC may be active. Europe's biggest bank by market value may report today its worst decline in profit since 2001 as costs for bad U.S. loans increased. First-half net income probably dropped 33 percent to $7.34 billion from a year earlier, according to the average estimate of 11 analysts surveyed by Bloomberg.
Fortis, which ousted its chief executive officer last month, said second-quarter profit fell 49 percent to 830 million euros ($1.29 billion) after it added to credit-related writedowns.
That still beat the 692 million-euro median estimate of 12 analysts surveyed by Bloomberg. Fortis wrote down 342 million euros on structured investments, adding to first-quarter markdowns of 380 million euros. The company also took charges related to buying part of ABN Amro Holding NV last year.
Air Liquide
Air Liquide, the world's biggest maker of industrial gases, said first-half profit rose 8.1 percent to 601 million euros on higher demand for hydrogen used to make cleaner gasoline and contracts in Asia.
Analysts estimated 575 million euros according to a Bloomberg survey. Revenue gained 13 percent.
Imperial Energy Corp. might climb after the Sunday Telegraph reported China Petroleum & Chemical Corp. offered to buy the U.K. company. The newspaper did not say where it obtained the information.
Imperial Energy has allowed Sinopec, as China Petroleum is known, to begin due diligence by providing access to data, the Sunday Telegraph said.
Imperial Energy said in a statement today that it has received another approach in relation to a possible cash offer for the company.
British Energy
British Energy Group Plc might be active after the Sunday Telegraph reported Centrica Plc may revive a 22.5 billion-pound ($45 billion) all-stock merger plan with the U.K. utility. The newspaper cited people close to the company.
Calls made to the Centrica press office were not immediately returned. Martin Pearce, a spokesman for British Energy, declined to comment.
Delhaize Group, the Belgian owner of the U.S. Food Lion supermarket chain, said second-quarter profit rose 43 percent to 116.3 million euros after being held back a year earlier by expenses for repurchasing debt.
That topped the 92 million-euro median estimate of five analysts in a Bloomberg survey. Earnings were hurt by 62.5 million euros of costs for a $1.1 billion debt buyback in 2007's second quarter.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
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Aug. 4 (Bloomberg) -- European stock-index futures fell, following declines in Asia. BHP Billiton Ltd. and Rio Tinto Group may lead commodity producers lower after copper retreated.
HSBC Holdings Plc may be active as Europe's largest bank reports first-half earnings. Fortis will probably move after the Belgian financial-services firm posted second-quarter profit that beat analysts' estimates. Air Liquide SA might also be active after the chemical maker's earnings topped estimates.
Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, slipped 7, or 0.2 percent, to 3,319 at 7:40 a.m. in London. The U.K.'s FTSE 100 Index might fall 8, according to BCG Partners.
``We are looking for a fairly flat start in Europe,'' said Manus Cranny, a London-based analyst at MF Global. ``All eyes will be on HSBC. The bank is seen as the bellwether in regards to subprime and the U.S. housing market.''
The Dow Jones Stoxx 600 Index has slumped 23 percent this year as a slowdown in economic growth and $481 billion of asset writedowns and credit losses worldwide prompted analysts to cut earnings estimates.
U.S. stocks last week fell after General Motors Corp.'s earnings disappointed investors and crude oil rallied. Asian stocks declined today, led by automakers after Nissan Motor Co. and Olympus Corp. said their earnings dropped.
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.
BHP, HSBC
BHP, the world's largest mining company, retreated 2.1 percent in Sydney, while Rio Tinto, the world's third-biggest mining company, declined 5.5 percent.
Metal prices fell on Aug. 1, partly on speculation that demand from automakers will drop. Prices were little changed in Asia today.
HSBC may be active. Europe's biggest bank by market value may report today its worst decline in profit since 2001 as costs for bad U.S. loans increased. First-half net income probably dropped 33 percent to $7.34 billion from a year earlier, according to the average estimate of 11 analysts surveyed by Bloomberg.
Fortis, which ousted its chief executive officer last month, said second-quarter profit fell 49 percent to 830 million euros ($1.29 billion) after it added to credit-related writedowns.
That still beat the 692 million-euro median estimate of 12 analysts surveyed by Bloomberg. Fortis wrote down 342 million euros on structured investments, adding to first-quarter markdowns of 380 million euros. The company also took charges related to buying part of ABN Amro Holding NV last year.
Air Liquide
Air Liquide, the world's biggest maker of industrial gases, said first-half profit rose 8.1 percent to 601 million euros on higher demand for hydrogen used to make cleaner gasoline and contracts in Asia.
Analysts estimated 575 million euros according to a Bloomberg survey. Revenue gained 13 percent.
Imperial Energy Corp. might climb after the Sunday Telegraph reported China Petroleum & Chemical Corp. offered to buy the U.K. company. The newspaper did not say where it obtained the information.
Imperial Energy has allowed Sinopec, as China Petroleum is known, to begin due diligence by providing access to data, the Sunday Telegraph said.
Imperial Energy said in a statement today that it has received another approach in relation to a possible cash offer for the company.
British Energy
British Energy Group Plc might be active after the Sunday Telegraph reported Centrica Plc may revive a 22.5 billion-pound ($45 billion) all-stock merger plan with the U.K. utility. The newspaper cited people close to the company.
Calls made to the Centrica press office were not immediately returned. Martin Pearce, a spokesman for British Energy, declined to comment.
Delhaize Group, the Belgian owner of the U.S. Food Lion supermarket chain, said second-quarter profit rose 43 percent to 116.3 million euros after being held back a year earlier by expenses for repurchasing debt.
That topped the 92 million-euro median estimate of five analysts in a Bloomberg survey. Earnings were hurt by 62.5 million euros of costs for a $1.1 billion debt buyback in 2007's second quarter.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
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Japan Stocks Fall to 3-Month Low on Nissan Earnings, Car Sales
By Patrick Rial and Toshiro Hasegawa
Aug. 4 (Bloomberg) -- Japan stocks dropped, sending the benchmark Topix index to a more than three-month low, after profit fell at Nissan Motor Co. and Olympus Corp., and U.S. car sales declined to the lowest in more than a decade.
Nissan, Japan's third-largest automaker, sank to a five-year low after net income fell more than analysts expected. Smaller rival Mazda Motor Corp. plunged the most in more than six years after July U.S. sales dropped 13 percent. Olympus, an 89-year-old camera maker, tumbled, while Mitsui & Co., Japan's second-largest trading company, plunged after first-quarter profit declined.
``Corporate earnings aren't providing investors with many reasons to be cheerful, and we also can't say the worst has passed,'' said Yasuhiro Kato, a senior portfolio manager at Tokyo-based DIAM Co., which manages the equivalent of $108 billion. ``Investors are still unloading their cyclical stocks, such as auto and steel, while defensive shares are conversely getting a boost.''
The Nikkei 225 Stock Average slumped 161.41, or 1.2 percent, to 12,933.18 at the close of trading in Tokyo. The broader Topix index fell 24.68, or 1.9 percent, to 1,248.25, a level not seen since April 14. Almost five stocks fell for each that advanced on the Topix.
Nikkei futures expiring in September lost 0.6 percent to 12,950 in Osaka and fell 1 percent to 12,950 in Singapore.
To contact the reporters for this story: Patrick Rial in Tokyo at prial@bloomberg.net; Toshiro Hasegawa in Tokyo at thasegawa6@bloomberg.net.
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Areva, Carrefour, Electricite de France: French Stocks Preview
By Tara Patel
Aug. 4 (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 Aug. 1 close.
The CAC 40 Index retreated 78.02, or 1.8 percent, to 4,314.34 on Aug. 1. The SBF 120 Index also dropped 1.7 percent.
Areva SA (CEI FP): The world's largest manufacturer of nuclear plants signed an agreement with the Central African Republic for uranium production at the country's Bakouma mine. The shares fell 7.20 euros, or 1 percent, to 732.50 euros.
Carrefour SA (CA FP): Europe's largest retailer has hired headhunters to seek a replacement for Chief Executive Officer Jose Luis Duran, citing a European businessman who was approached, the Financial Times reported. A Paris-based spokesman for Carrefour's board, who declined to be further identified, denied that a search firm had been engaged. The shares fell 56 cents, or 1.7 percent, to 32.37 euros.
Electricite de France SA (EDF FP): The world's largest owner of nuclear power stations backed away from a proposed bid for British Energy Group Plc, saying circumstances are not in place for expansion in the U.K.
Centrica may revive a 22.5 billion-pound all-stock merger plan with British Energy, the Sunday Telegraph reported, citing unidentified people close to the company. EDF shares lost 1.75 euros, or 3.1 percent, to 54.20 euros.
Vinci SA (DG FP): The world's biggest builder, Hochtief AG and partners will start work on a $3 billion bridge linking Bahrain and Qatar in January, Gulf Daily News reported, citing Cowi AS design consultant Mogens Hviid. The shares lost 41 cents, 1.1 percent, to 36.09 euros.
To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net
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Aug. 4 (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 Aug. 1 close.
The CAC 40 Index retreated 78.02, or 1.8 percent, to 4,314.34 on Aug. 1. The SBF 120 Index also dropped 1.7 percent.
Areva SA (CEI FP): The world's largest manufacturer of nuclear plants signed an agreement with the Central African Republic for uranium production at the country's Bakouma mine. The shares fell 7.20 euros, or 1 percent, to 732.50 euros.
Carrefour SA (CA FP): Europe's largest retailer has hired headhunters to seek a replacement for Chief Executive Officer Jose Luis Duran, citing a European businessman who was approached, the Financial Times reported. A Paris-based spokesman for Carrefour's board, who declined to be further identified, denied that a search firm had been engaged. The shares fell 56 cents, or 1.7 percent, to 32.37 euros.
Electricite de France SA (EDF FP): The world's largest owner of nuclear power stations backed away from a proposed bid for British Energy Group Plc, saying circumstances are not in place for expansion in the U.K.
Centrica may revive a 22.5 billion-pound all-stock merger plan with British Energy, the Sunday Telegraph reported, citing unidentified people close to the company. EDF shares lost 1.75 euros, or 3.1 percent, to 54.20 euros.
Vinci SA (DG FP): The world's biggest builder, Hochtief AG and partners will start work on a $3 billion bridge linking Bahrain and Qatar in January, Gulf Daily News reported, citing Cowi AS design consultant Mogens Hviid. The shares lost 41 cents, 1.1 percent, to 36.09 euros.
To contact the reporter on this story: Tara Patel in Paris at tpatel2@bloomberg.net
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Sponsor Forex Brokers Mixed US employment Report Does Little For The USD
| Daily Forex Fundamentals | Written by Saxo Bank | Aug 04 08 06:28 GMT | | |
Forex Market Update: Mixed US employment Report Does Little For The USD. This Week Is Central Bank Week As Market Looks For Guidance From The Fed, RBA, ECB And BOERBA set to prepare the market for rate cuts ahead at tonight's cash target announcement? MAJOR HEADLINES - PREVIOUS SESSION
THEMES TO WATCH - UPCOMING SESSIONKey event risks today (all times GMT):
Market Comments The US employment report was a mixed on Friday, with the nonfarm payrolls number a bit less bad than expected (slightly surprising considering the dire weekly initial jobless claims numbers that have been rolling in lately), but still negative and an unemployment rate that continues to grow. Judging from past employment cycles, we would expect the unemployment rate to peak well above 7.00% some time in late 2009. With the employment picture looking this grim and oil prices having eased so heavily in recent weeks, we have a tough time seeing the Fed coming out with its inflation fighting guns a blazing at tomorrow evening's rate announcement and monetary policy statement and would expect another wishy washy statement that tries to sound like the Fed is still serious about an inflation fighting mandate while obviously hoping that it can continue to keep rates unchanged. Looking at the technical side of things, EURUSD needs to break 1.5500 to keep the bearish momentum alive this week, with 1.5285 the next major obstacle to the downside. To the upside, a rise above 1.5700/1.5800 zone would set the USD rally on end for now. Besides the Fed this week, we will also have the RBA tonight (more on that one below) and the ECB and BOE out this week. None of the four is likely to move on interest rates, as the USD is too weak and inflation too high and the growth data for the latest quarter too resilient (but weakness still too evident on the flipside..) for the Fed to budge for now. The ECB will not move interest rates either as it will need to see more data and an even bigger drop in commodity prices before it begins to feel comfortable with relaxing its vigilance. The data is starting to look scary for the EuroZone, however, and it will be very interesting to see how the ECB discusses prospects for the economy this Thursday. The BoE almost never releases a statement and showed a split personality the last time around with a 3-way vote last time around (7 for unchanged, 1 for a HIKE (oh dear!) and 1 for a cut. It seems clear that the UK landing is already unfolding and feels very hard indeed as the BoE stands on the sidelines. As a reminder of how early we are in the ball game for the coming economic downturn in Australia, we note that the House Price Index only fell slightly for Q2 (this was the first drop since 2005) and that the year-on-year comparisons still show healthy growth in prices of around 8%. But if we look elsewhere at housing-related numbers in Australia, we see other signs of a slowdown in the pipeline, including a -8% drop in Building Approvals from last year, a construction industry survey that has fallen off a cliff in recent months. At least one article also reported that Australian private sector debt shows that consumers down under are nearly as overstretched as their UK counterparts, and more so than US consumers. Let's see what the RBA's read on the situation is at this evening's Cash Target announcement. The RBA is widely expected to leave rates unchanged, but Governor Stevens may take the opportunity to begin to prepare the market for interest rate cuts ahead. Our default view is that the great AUD bull market may largely be over with, especially if the commodity price rally continues its steep unwind in the months ahead. As all the major central banks move to a rate-cutting path, the trajectory of interest rate differentials will favor the low yielders over the high yielders. Our biggest question as we enter this week is what on earth is EURCHF doing up here? We feel that the risks to the global economy seem to be mounting every day, and that EURCHF - the classic risk barometer - seems to be have completely lost the plot. A significant fall may be in store soon for this pair if it ever decides to play catchup with reality... Analysis Disclosure & Disclaimer SaxBank A/S shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by SaxBank that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis dnot occur as anticipated. SaxBank utilizes financial information providers and information from such providers may form the basis for an analysis. SaxBank accepts nresponsibility for the accuracy or completeness of any information herein contained. Any recommendations and other comments in SaxBanks analysis derive from objective fundamental macreconomical and company specific calculations, statistical and technical analysis, and subjective general market assessment. If an analysis contains recommendations tbuy or sell a specific financial instrument, such recommendation should be seen as SaxBanks opinion that the specific instrument will respectively outperform the relevant market or underperform compared tthe market. SaxBanks recommendations should statistically correspond tan even distribution between buy and sell recommendations. | |
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FX & Money Markets Daily: CFTC - Speculators Long The USD
| Daily Forex Fundamentals | Written by Jyske Bank | Aug 04 08 06:13 GMT | | |
Today's CommentMajors & Scandies Speculators cut their combined net short dollar position against the eight major currencies (EUR, JPY, GBP, CHF, CAD, AUD, NZD, and MXN) from -14.5 billon to -2.3 billion according to the CFTC Commitments of traders data through July 29. If you remove the speculative positions in MXN and NZD, the speculative investors have actually gone long the USD. Most notably, speculators reversed their net short position in USD versus EUR from -0.8 billion to a net long position of +3.2 billion. Speculators also reversed their net short position in JPY versus USD to a net long position. Overall, speculators closed short positions in USD against virtually all the eight major currencies according to CFTC Commitments of traders. The developments are overall in line with the rebound in the dollar we have seen in the FX market. Data releases from the US have generally been better than expected and data releases from the Eurozone worse than expected. We are currently long USD versus AUD and NZD in two tactical positions. We were quite close to our take profit in the NZDUSD position and decided to conduct a trailing stop by moving the stop closer to the current market price. Hence, our new stop loss will be at 74.00. Today offers relatively few data releases with producer prices from the Eurozone and PCE Index from the US as the most important. The Fed is announcing the future fed funds rate at the FOMC meeting tomorrow and the market will most likely await this and the rate announcement from the ECB Thursday. This means that today will most likely be a relatively quiet day. Emerging Markets Friday started out very quiet with only little movement in EM currencies as markets awaited NFP from the US. The number came out better than expected and this provided immediate support for high yielders TRY and ZAR. Political risks in Turkey were reduced significantly last week as the case against the governing AK Party was dismissed, and focus can now return back to inflation, interest rates, and growth. And very appropriately this week starts off with July CPI from Turkey. Last month the number surprised on the downside and came out at 10.6 % y/y but consensus is that the number will increase again in July to 11.7 %. Following the decline in political risks, consequent TRY appreciation, and the new relatively low level of the oil price, markets now seem to be pricing rates on hold for the rest of the year. At the same time markets agree that inflation is yet to peak later this year, but if July inflation surprises on the upside markets could review their call of rates on hold for the rest of the year and further support for the currency will be seen. We still see room for one more hike of 25 bps. Today's key events
Jyske Core Positions - RecommendationsJyske Markets - FX Research | |
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S. Korea Stocks Drop by Most in 3 Weeks; Shipyards Lead Retreat
By Kyung Bok Cho
Aug. 4 (Bloomberg) -- South Korean stocks fell by the most in three weeks, led by shipbuilders and automakers, on concern a global economic slowdown is hurting earnings.
Daewoo Shipbuilding & Marine Engineering Co. plunged the most in a year after order cancellations at shipyards raised concern more clients will fail to make payments. Hyundai Motor Co. slid after sales declined in South Korea and the U.S.
``The shipbuilding industry had been turning down so the news of the cancellation triggered a lot of selling, maybe too much,'' said Kwak Tai Ho, who helps manage the equivalent of $1.5 billion at Kyobo Investment Trust Management Co. in Seoul. ``The high oil prices of late are deflating demand for cars.''
The Kospi lost 31.20, or 2 percent, to 1,542.57 as of 1:28 p.m. in Seoul, heading for its biggest decline since July 15. Transport-related stocks accounted for a third of the decline. More than four stocks fell for each that rose.
The benchmark index has lost 19 percent this year on concern a cooling global economy will damp demand for South Korean exports as domestic inflation accelerated to the fastest pace in almost 10 years. South Korea is expected to enter stagflation in the second half of 2008, the Federation of Korean Industries, which represents the nation's industrial companies, said in July.
Daewoo Shipbuilding, the world's third-largest maker of ships, tumbled 13 percent to 35,700 won, the most since Aug. 16. The company said Aug. 1 that it canceled a 619 billion won ($609 million) order after the client failed to pay. Hyundai Mipo Dockyard Co., which said on the same day it nullified a 197 billion won contract, fell 7.9 percent to 182,000 won, the most since March 10.
`Weak Economy'
Hyundai Heavy Industries Co., the world's biggest shipbuilder, lost 9.3 percent to 279,000 won, the lowest since May 16, 2007. Samsung Heavy Industries Co., the second largest, declined 8.5 percent to 35,250 won, the most since Jan. 30.
Shipping lines also fell on concern financing for vessel purchases will become more difficult amid a global credit contraction. Hanjin Shipping Co., the nation's biggest shipping line, retreated 7.9 percent to 30,400 won, the most since Oct. 22. Hyundai Merchant Marine Co., the second largest, lost 4.1 percent to 39,450 won.
``The order cancellations show a growing number of ship owners are getting pessimistic on the shipping market,'' said Han Byung Hwa, an analyst at Hyundai Securities Co. in Seoul. ``The weak economy is making financing for new shipbuilding harder.''
Hyundai Motor, South Korea's largest automaker, retreated 2,600 won, or 3.7 percent, to 68,100, the most since July 15. The company said on Aug. 1 that July sales in the domestic market dropped 3.6 percent after labor strikes disrupted production. U.S. sales fell 6.5 percent in the same period.
Ssangyong Motor Co., the South Korean unit of China's biggest automaker, declined 140 won, or 4.6 percent, to 2,925.
The following are among the most-active stocks in South Korean markets.
Daewoo Securities Co. (006800 KS), which said on Aug. 1 that fiscal first-quarter net income slumped 63 percent, fell 750 won, or 4.2 percent, to 17,050, the most since July 15. Merrill Lynch & Co. cut its price estimate by 14 percent to 16,800 won, in a report. The company's fundamentals will be ``weak'' in the near term as competition intensifies and capital markets remain volatile, the brokerage said.
Hana Tour Service Inc. (039130 KS), South Korea's biggest travel agency, fell 950 won, or 3.1 percent, to 29,800, the lowest since July 16. Goldman, Sachs & Co. cut its recommendation to ``sell'' from ``neutral,'' in a report. July earnings were ``significantly weaker than expected'' while gains in market share are slowing down, the brokerage said.
Hanjin Heavy Industries & Construction Co. (097230 KS), South Korea's first exporter of ships, dropped 4,700 won, or 11 percent, to 38,150, the most since March 10. BNP Paribas SA cut its price estimate by 19 percent to 70,000 won, in a report, citing a ``more conservative valuation'' of the company's core businesses and its yard in the Philippines.
Hankook Tire Co. (000240 KS), which said on Aug. 1 that second-quarter profit fell 13 percent after oil and rubber prices rose, slipped 400 won, or 2.8 percent, to 14,150. The company will face increased pressure from rising raw-material costs in the third quarter, Good Morning Shinhan Securities Co. said in a report.
Hynix Semiconductor Inc. (000660 KS), the world's second- largest computer-memory maker, lost 550 won, or 2.6 percent, to 20,500, the lowest since Nov. 3, 2005. The likelihood has risen that memory prices will decline in the third or fourth quarters, Lehman Brothers Holdings Inc. said in a report.
Kangwon Land Inc. (035250 KS), which operates the only casino in South Korea open to locals, gained 500 won, or 2.1 percent, to 24,550, the highest since Jan. 9. Mirae Asset Securities Co. raised its price estimate by 15 percent to 31,000 won, in a report. Second-quarter operating results beat estimates, the brokerage said.
Korea Exchange Bank (004940 KS), the Korean lender HSBC Holdings Plc seeks to acquire, lost 350 won, or 2.7 percent, to 12,700, the lowest since July 17. HSBC is trying to negotiate a lower price for the bank from Lone Star Funds, two people familiar with the matter said.
Michael Breen, president of Insight Communications Consultants, which represents Lone Star in Seoul, said he had no immediate comment.
Korea Fine Chemical Co. (025850 KS) dropped 2,400 won, or 3.5 percent, to 66,100, the lowest since April 10. The company said on Aug. 1 that it booked 12.3 billion won in losses from derivatives in the second quarter.
LG Telecom Ltd. (032640 KS), South Korea's smallest mobile- phone operator, gained 250 won, or 3 percent, to 8,730. It was the only one of the nation's wireless-service providers to advance. The company said on Aug. 1 that it signed up a net 20,404 subscribers in July, or 20 percent more than in the previous month.
To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net
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Aug. 4 (Bloomberg) -- South Korean stocks fell by the most in three weeks, led by shipbuilders and automakers, on concern a global economic slowdown is hurting earnings.
Daewoo Shipbuilding & Marine Engineering Co. plunged the most in a year after order cancellations at shipyards raised concern more clients will fail to make payments. Hyundai Motor Co. slid after sales declined in South Korea and the U.S.
``The shipbuilding industry had been turning down so the news of the cancellation triggered a lot of selling, maybe too much,'' said Kwak Tai Ho, who helps manage the equivalent of $1.5 billion at Kyobo Investment Trust Management Co. in Seoul. ``The high oil prices of late are deflating demand for cars.''
The Kospi lost 31.20, or 2 percent, to 1,542.57 as of 1:28 p.m. in Seoul, heading for its biggest decline since July 15. Transport-related stocks accounted for a third of the decline. More than four stocks fell for each that rose.
The benchmark index has lost 19 percent this year on concern a cooling global economy will damp demand for South Korean exports as domestic inflation accelerated to the fastest pace in almost 10 years. South Korea is expected to enter stagflation in the second half of 2008, the Federation of Korean Industries, which represents the nation's industrial companies, said in July.
Daewoo Shipbuilding, the world's third-largest maker of ships, tumbled 13 percent to 35,700 won, the most since Aug. 16. The company said Aug. 1 that it canceled a 619 billion won ($609 million) order after the client failed to pay. Hyundai Mipo Dockyard Co., which said on the same day it nullified a 197 billion won contract, fell 7.9 percent to 182,000 won, the most since March 10.
`Weak Economy'
Hyundai Heavy Industries Co., the world's biggest shipbuilder, lost 9.3 percent to 279,000 won, the lowest since May 16, 2007. Samsung Heavy Industries Co., the second largest, declined 8.5 percent to 35,250 won, the most since Jan. 30.
Shipping lines also fell on concern financing for vessel purchases will become more difficult amid a global credit contraction. Hanjin Shipping Co., the nation's biggest shipping line, retreated 7.9 percent to 30,400 won, the most since Oct. 22. Hyundai Merchant Marine Co., the second largest, lost 4.1 percent to 39,450 won.
``The order cancellations show a growing number of ship owners are getting pessimistic on the shipping market,'' said Han Byung Hwa, an analyst at Hyundai Securities Co. in Seoul. ``The weak economy is making financing for new shipbuilding harder.''
Hyundai Motor, South Korea's largest automaker, retreated 2,600 won, or 3.7 percent, to 68,100, the most since July 15. The company said on Aug. 1 that July sales in the domestic market dropped 3.6 percent after labor strikes disrupted production. U.S. sales fell 6.5 percent in the same period.
Ssangyong Motor Co., the South Korean unit of China's biggest automaker, declined 140 won, or 4.6 percent, to 2,925.
The following are among the most-active stocks in South Korean markets.
Daewoo Securities Co. (006800 KS), which said on Aug. 1 that fiscal first-quarter net income slumped 63 percent, fell 750 won, or 4.2 percent, to 17,050, the most since July 15. Merrill Lynch & Co. cut its price estimate by 14 percent to 16,800 won, in a report. The company's fundamentals will be ``weak'' in the near term as competition intensifies and capital markets remain volatile, the brokerage said.
Hana Tour Service Inc. (039130 KS), South Korea's biggest travel agency, fell 950 won, or 3.1 percent, to 29,800, the lowest since July 16. Goldman, Sachs & Co. cut its recommendation to ``sell'' from ``neutral,'' in a report. July earnings were ``significantly weaker than expected'' while gains in market share are slowing down, the brokerage said.
Hanjin Heavy Industries & Construction Co. (097230 KS), South Korea's first exporter of ships, dropped 4,700 won, or 11 percent, to 38,150, the most since March 10. BNP Paribas SA cut its price estimate by 19 percent to 70,000 won, in a report, citing a ``more conservative valuation'' of the company's core businesses and its yard in the Philippines.
Hankook Tire Co. (000240 KS), which said on Aug. 1 that second-quarter profit fell 13 percent after oil and rubber prices rose, slipped 400 won, or 2.8 percent, to 14,150. The company will face increased pressure from rising raw-material costs in the third quarter, Good Morning Shinhan Securities Co. said in a report.
Hynix Semiconductor Inc. (000660 KS), the world's second- largest computer-memory maker, lost 550 won, or 2.6 percent, to 20,500, the lowest since Nov. 3, 2005. The likelihood has risen that memory prices will decline in the third or fourth quarters, Lehman Brothers Holdings Inc. said in a report.
Kangwon Land Inc. (035250 KS), which operates the only casino in South Korea open to locals, gained 500 won, or 2.1 percent, to 24,550, the highest since Jan. 9. Mirae Asset Securities Co. raised its price estimate by 15 percent to 31,000 won, in a report. Second-quarter operating results beat estimates, the brokerage said.
Korea Exchange Bank (004940 KS), the Korean lender HSBC Holdings Plc seeks to acquire, lost 350 won, or 2.7 percent, to 12,700, the lowest since July 17. HSBC is trying to negotiate a lower price for the bank from Lone Star Funds, two people familiar with the matter said.
Michael Breen, president of Insight Communications Consultants, which represents Lone Star in Seoul, said he had no immediate comment.
Korea Fine Chemical Co. (025850 KS) dropped 2,400 won, or 3.5 percent, to 66,100, the lowest since April 10. The company said on Aug. 1 that it booked 12.3 billion won in losses from derivatives in the second quarter.
LG Telecom Ltd. (032640 KS), South Korea's smallest mobile- phone operator, gained 250 won, or 3 percent, to 8,730. It was the only one of the nation's wireless-service providers to advance. The company said on Aug. 1 that it signed up a net 20,404 subscribers in July, or 20 percent more than in the previous month.
To contact the reporter for this story: Kyung Bok Cho in Seoul at kcho7@bloomberg.net
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Euro, Yeppy, Caddy - The Inside View
| Daily Forex Technicals | Written by The LFB-Forex.com | Aug 04 08 06:26 GMT | | |
| Eur/Usd: With outright recessions now expected in Ireland, Spain, Portugal and Italy, along with the sharp growth decelerations now occurring in France and Germany, overall GDP for the euro area probably peaked in Q1 and the ECB is going to have a hard time maintaining an inflation bias. We have noticed a lack of hawkish sounds from ECB officials recently and no doubt that (along with the recent depreciation of oil) has helped the dollar's gain. As far as oil is concerned it seems to be trading on the fundamentals now i.e. when the data is weak, price declines--that's very different from what had been occurring over the past year when weaker economic data drove traders to sell stocks and buy oil. It does look that as long as EUR/USD maintains a daily closing price below 1.5311 (support on July 7, and the base from which the euro made its most recent run to 1.60) it's likely to see the Euro test the channel low in the 1.5290 area. Risks-Trichet signals a rate increase at Thursday's press conference. Geo-political tensions with regards to oil. Eur/Jpy: The same basic idea is holding for EUR/JPY as well. Longer-term lines have been drawn from March 20 and May 12, both of which are connected to July 16. Because Friday's closing price has not broken either line, we're waiting to find an entry. As usual, there are 2 ways to trade a break of trend line support--go short on a daily close below the trendline, or wait until a daily close below there has been made and then trade on a test of the old support as the new resistance. Once that's been accomplished, the first objective is the support made at the July 16 low on 165.32.The same set of risks are in play for EUR/JPY as for EUR/USD. Cad/Jpy: The Canadian economy has contracted in three out of the last four months and for the first quarter of 2008. May's contraction (latest data) was attributed to a decline in energy sector, which was dragged lower by decreases in natural gas and crude oil production. With commodities looking to weaken going forward due to the global economic slowdown, it's very possible to see Canadian GDP contract for a second quarter. Of note is the fact that in May, GDP contracted even as the GDP of Canada's biggest trading partner, the U.S., expanded. The bearish rising wedge, complete with a triple top, is a strong technical signal that suggests the CAD/JPY pair is ripe for a fall, but we can be content enough to wait for a close below trendline support before making a short entry. This last uptrend started in March, and there's no reason not to believe we can't see price return to those levels over the next few months. Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources. | |
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Asia-Pacific Market Recap: Bonds Gaining, Equities Lower
| Market Updates | Written by CEP News | Aug 04 08 06:19 GMT | | |
| (CEP News) - Asia-Pacific fixed income markets are gaining and equities closed lower with yields on Australian 10-year bonds down 2.4 bps to 6.10% and Japanese 10-year government bonds down 1.5 bps to 1.51%. Sydney's S&P ASX 200 closed down 16.30 points to 4887.699. The Japanese Nikkei closed down 161.41 points to 12933.18 and the Hang Seng down 202.97 points to 22659.63. Yields on three-year Australian bonds were down 6.1 bps to 6.99 and the Australian 90-day March 09 contract was up 1.0 tick to 92.85. The Euroyen March 09 contract was up 3.5 ticks to 99.14. The Australian dollar was up 0.16 cents to 0.9309 against the USD and up 0.14 cents to 0.9557 against the Canadian dollar. Against the yen, the U.S. dollar was down 0.06 points to 107.64 and the Canadian dollar was down 0.04 points to 104.82. The euro was up 0.20 cents to 1.5583 USD. All data taken at 2:15 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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The Yen Usd/Jpy
| Daily Forex Technicals | Written by The LFB-Forex.com | Aug 04 08 06:22 GMT | | |
| The Dollar Yen is sitting at pivotal times right now. Over the past several months we have seen it form an ascending triangle pattern. We know that these typically break to the upside. The pair is also trading above all of its daily SMAs and they could provide good support if the pair decides to break lower. The 108.50 area proves to be a very hard area for the pair to break above, though not for a lack of trying. A solid break of 108.50 could target the 109.80 area. But this is likely to only come once equities start running in the same direction for a few days. Disclaimer Investment in the currency exchange is highly speculative and should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only. Accordingly we make no warranties or guarantees in respect of the content. The publications herein do not take into account the investment objectives, financial situation or particular needs of any particular person. Investors should obtain individual financial advice based on their own particular circumstances before making an investment decision on the basis of the recommendations in this website. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. All intellectual property rights are the property of Daily FX. Daily FX and its affiliates, will not be held responsible for the reliability or accuracy of the information available on this site. The content herein is provided in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by Daily FX or its affiliates. The reader agrees not to hold Daily FX or any of its affiliates liable for decisions that are based on information from this website. Daily FX highly recommends that before making a decision, the reader collects several opinions related to the decision and verifies facts from at least several independent sources. | |
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Asia Session Recap
| Daily Forex Fundamentals | Written by Forex.com | Aug 04 08 05:45 GMT | | ||||||||||||||||||||||||||||||||||||||||||||||||||
| The Dollar traded mixed today for the start of the week in Asia, but nonetheless held its gains from last week in a painfully slow trading session. The EUR/USD opened the new week a bit higher and as the session progressed the pair made moderate moves to a high just above 1.5590. A quick pullback brought the pair to its current levels, (as of this writing) of right at 1.5580. 1.5553 was the low for the session. In the EUR/JPY, the Yen suffered from retail investor selling as the theme was risk reduction ahead of this weeks' decisions by the Fed, ECB, RBA, and BoE. Obviously as far as rate decisions go, this coming week is jam-packed, and the markets may be subdued in lieu of this. USD/JPY made a move north as again the Yen was victim, the pair was at the 107.50 level mid-session, but took off to levels near 107.80 as the session closed. After being battered all last week the AUD/USD actually bounced back a little for the start of this week. After touching a 0.9285 low, the pair looked rehabbed as it reached highs near 0.9330, but with the carry trades looking shaky and the market expecting dovish commentary from Tuesday's RBA meeting, expect this pair to make some moves. GBP/USD was choppy, but net for the night was down as rumors that a major bank was set to announce a loss that would be second to none. Cable ended the session near its lows at 1.9735. Obviously the main focus of the week will be all of the rate decisions due this week. Although no changes are expected by the Fed, ECB, BoE or RBA, the markets are always very sensitive to these announcements and the tone and language surrounding them Upcoming Economic Data Releases (London Session):
Forex.com DISCLAIMER: The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase of sale of any currency. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions. | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Australia Second Quarter House Price Index: Summary (Table)
By Daniel Petrie
Aug. 4 (Bloomberg) -- Following is a table of Australia's house price index figures for second quarter released by the Australian Bureau of Statistics in Sydney.
==============================================================================
2Q 1Q 4Q 3Q 2Q 1Q 4Q 3Q
2008 2008 2007 2007 2007 2007 2006 2006
==============================================================================
------------------------ QoQ% ------------------------
Weighted Average of
[bn:WBTKR=AUEHQOQ:IND] Eight Capital Cities [] -0.3% 0.4% 4.2% 3.7% 4.2% 1.1% 1.9% 2.5%
[bn:WBTKR=AUEHSYD%:IND] Sydney [] 0.3% -0.9% 2.4% 2.5% 3.8% -0.2% 0.4% 0.1%
[bn:WBTKR=AUEHMEL%:IND] Melbourne [] -0.3% 1.3% 7.5% 5.1% 7.2% 1.7% 2.5% 1.8%
[bn:WBTKR=AUEHBRI%:IND] Brisbane [] 0.6% 2.7% 5.2% 4.8% 6.4% 4.2% 2.6% 1.6%
[bn:WBTKR=AUEHADE%:IND] Adelaide [] 0.4% 2.2% 6.8% 6.1% 6.0% 1.8% 2.7% 0.6%
[bn:WBTKR=AUEHPER%:IND] Perth [] -2.4% -1.3% 1.1% 1.8% -1.9% 0.5% 3.4% 11.1%
[bn:WBTKR=AUEHHOB%:IND] Hobart [] -2.0% -1.8% 4.2% 2.7% 2.0% 2.8% 1.7% 2.0%
[bn:WBTKR=AUEHDAR%:IND] Darwin [] 1.9% -1.5% 3.8% 2.7% 1.1% 3.0% 4.9% 1.3%
[bn:WBTKR=AUEHCAN%:IND] Canberra [] -1.4% 0.5% 3.0% 5.1% 4.4% 1.5% 1.6% 2.8%
==============================================================================
2Q 1Q 4Q 3Q 2Q 1Q 4Q 3Q
2008 2008 2007 2007 2007 2007 2006 2006
==============================================================================
------------------------ YoY% ------------------------
Weighted Average of
Eight Capital Cities 8.2% 13.2% 14.0% 11.4% 10.1% 9.6% 9.7% 10.1%
Sydney 4.4% 8.0% 8.8% 6.7% 4.1% 2.3% 1.4% 1.8%
Melbourne 14.1% 22.6% 23.1% 17.4% 13.7% 9.2% 8.9% 8.3%
Brisbane 14.0% 20.5% 22.2% 19.2% 15.5% 10.9% 7.2% 6.7%
Adelaide 16.2% 22.7% 22.2% 17.6% 11.5% 6.7% 6.2% 5.8%
Perth -0.9% -0.4% 1.4% 3.8% 13.3% 32.1% 41.9% 47.5%
Hobart 3.0% 7.1% 12.1% 9.4% 8.7% 9.9% 9.0% 10.7%
Darwin 7.0% 6.1% 11.0% 12.1% 10.6% 16.6% 18.0% 18.5%
Canberra 7.2% 13.5% 14.7% 13.2% 10.7% 9.1% 8.8% 9.8%
-------------------- Index Levels --------------------
Weighted Average of
Eight Capital Cities 130.2 130.6 130.1 124.8 120.3 115.4 114.1 112.0
Sydney 102.5 102.2 103.1 100.7 98.2 94.6 94.8 94.4
Melbourne 142.7 143.1 141.3 131.5 125.1 116.7 114.8 112.0
Brisbane 146.0 145.1 141.3 134.3 128.1 120.4 115.6 112.7
==============================================================================
2Q 1Q 4Q 3Q 2Q 1Q 4Q 3Q
2008 2008 2007 2007 2007 2007 2006 2006
==============================================================================
-------------------- Index Levels --------------------
Adelaide 147.5 146.9 143.7 134.6 126.9 119.7 117.6 114.5
Perth 190.3 195.0 197.6 195.5 192.1 195.8 194.8 188.4
Hobart 139.4 142.2 144.8 139.0 135.4 132.8 129.2 127.1
Darwin 177.9 174.6 177.3 170.8 166.3 164.5 159.7 152.3
Canberra 127.0 128.8 128.2 124.5 118.5 113.5 111.8 110.0
==============================================================================
Note: Index measures a weighted average of prices for established houses
in the nation's eight capital cities.
Source: Australian Bureau of Statistics
To contact the reporter on this story: Daniel Petrie in Sydney at dpetrie5@bloomberg.net
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