Stocks on the move Real-Time Equity news
U.S. stock market report 0930 ET 19March2009-Markets open higher on strength in oil ------------------------------------------------------------------------------
Major U.S. indexes opened higher on Thursday, lifted as a surge in the price of crude oil lifted energy shares and optimism was lifted by the Federal Reserve's plan to lower borrowing costs.
The Dow Jones industrial average rose 0.6 percent to 7,534.92 while the S&P 500 gained 0.9 percent to 801.79 and the Nasdaq was up 1 percent to 1,506.22.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0910 ET 19March2009-Barclays upgrades Beckman Coulter to overweight ------------------------------------------------------------------------------
Barclays Capital on Thursday upgraded Beckman Coulter to overweight from equal weight, saying the company's revenue model was stable and that a recently-announced acquisition was strategically sound.
The acquisition of Olympus Corp "should increase recurring revenue, allow continued growth and share gains in immunoassay, strengthen the company outside the U.S. and increase margins," the firm wrote.
Shares of the maker of biomedical testing instrument systems closed Wednesday at $46.70.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0900 ET 19March2009-Sony Reader taps Google's public domain books ------------------------------------------------------------------------------
Sony Corp is making available public domain books from Google Inc to users of Sony Reader, its electronic book reader, it said late Wednesday. More than half a million classic titles will be free to users of the Reader, it said, lifting the number of available titles in Sony's eBook Store to more than 600,000.
The Kindle, Amazon's digital book reading product, has access to about 245,000 titles, as well as newspapers, magazines and blogs.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0854 ET 19March2009-JPMorgan upgrades Alcoa to overweight ------------------------------------------------------------------------------
JPMorgan on Thursday ungraded Alcoa Inc to overweight from neutral, saying the aluminum company was "effectively a call option on an economic recovery in 2010." It raised its price target on the stock to $12 from $8.
"With the equity offering out of the way and the dividend finally cut, we believe the two biggest potential shores to drop for the stock are not in the share price and the company has bought itself a year's worth of liquidity insurance to make it comfortably through 2009," the firm wrote.
Shares of Alcoa, a Dow component, rose 5.8 percent to $5.80 in premarket trade while peer company Century Aluminum soared 15.2 percent to $1.90 before the bell.
Africa
Standard Bank on `Lookout' for Acquisitions, Chief Executive Maree Says Standard Bank Group Ltd., Africa’s largest bank, is “on the lookout” for acquisitions to expand on the continent and emerging markets.
Shell Investigating Reports of Damage After Attack on Nigerian Pipeline Royal Dutch Shell Plc’s Nigerian unit said it’s looking into reports of an attack that damaged a pipeline it operates in the country’s southern oil region.
South African Stocks Gain, Led Higher by AngloGold and Anglo American South Africa's benchmark stock index, the FTSE/JSE Africa All Share Index, rose 1.62 percent at 9:05 a.m.
Nigeria Selects 15 International Energy Companies to Develop Gas Projects Nigeria selected 15 international energy companies as potential investors in projects to develop the nation’s natural-gas reserves, Petroleum Minister of State Odein Ajumogobia said today.
Investec Says Financial Market Turmoil Opens `Interesting Opportunities' Investec said the global recession and falling stock markets will present the company with “interesting opportunities” to strengthen its presence in South Africa, Australia and Britain using its “sound balance sheet.”
Russia, Nigeria Sign Nuclear Energy Accord Allowing For Uranium Mining Russia and Nigeria signed an accord on nuclear energy, allowing the countries to work together on mining uranium, building and testing atomic power plants and sharing knowledge.
South African Rand Weakens 0.1% to 9.6459 Versus Dollar in Early Trading South Africa's rand fell 0.1 percent against the U.S. currency.
Guinness Nigeria Rated `Buy' at RenCap as Beer Consumption to Catch Up Guinness Nigeria Plc and Nigerian Breweries Plc were rated “buy” at Renaissance Capital in new coverage on speculation beer consumption in Africa’s most populous nation will catch up with other emerging markets.
Asia
Asian Stocks Rise on Federal Reserve Bond Plan; Commonwealth, Zijin Gain Asian stocks rose for the fifth day, the longest winning streak since the start of the year, after the Federal Reserve said it will buy $1 trillion of bonds, stoking optimism that lower borrowing costs will end the first global recession since World War II.
Coke's Failed Bid Shows China Joins U.S., EU Enforcers as Deal Gatekeeper China’s rejection of Coca-Cola Co.’s $2.3 billion bid for China Huiyuan Juice Group Ltd. may bode ill for Pfizer Inc. and Merck & Co. as the country takes on deal-blocking power like the U.S. and European Union have.
Goldman Sachs Leads $1.2 Billion Bid for Universal Studios Japan Operator A Goldman Sachs Group Inc.-led group offered 111.2 billion yen ($1.2 billion) to take over USJ Co., the operator of the Universal Studios Japan theme park that’s losing customers as the economy contracts.
China Mobile Posts Slowest Profit Growth in Four Years on Rural Expansion China Mobile Ltd., the world’s biggest wireless carrier, posted the slowest growth in profit in more than four years after the company boosted spending on networks in rural areas.
India Inflation Cools to Slowest in Two Decades, Giving Room for Rate Cuts India’s inflation slowed to a two- decade low, providing room for the central bank to cut interest rates to protect the economy from the global recession.
Diageo May Gain From Defeat of Australia Pre-Mix Drink Tax, Citigroup Says Diageo Plc, the world’s biggest liquor maker, Fortune Brands Inc. and Coca-Cola Amatil Ltd. may benefit from the Australian Senate’s decision to reject increased taxes on pre-mixed spirit drinks, Citigroup Inc. said.
Asian Pensions Dump Shares for Bonds as Philippine Premiums Fund Stimulus Pension funds and life insurers that manage more than $80 billion in Asia are shifting from stocks into government bonds, betting shares in the region will extend declines after a record drop last year.
Asian Currencies Rally, Led by Korean Won, Taiwan Dollar on Fed Bond Plan Asian currencies rose, led by South Korea’s won and India’s rupee, on speculation $1 trillion of bond purchases planned by the U.S. Federal Reserve will ease a global recession and revive demand for emerging-market assets.
Australia & New Zealand
Australia Has More Scope Than Most to Respond to Global Crisis, RBA Says Australia, facing its first recession in two decades, has more scope to cut interest rates and boost spending than other countries, said central bank Assistant Governor Malcolm Edey.
Asian Pensions Dump Shares for Bonds as Philippine Premiums Fund Stimulus Pension funds and life insurers that manage more than $80 billion in Asia are shifting from stocks into government bonds, betting shares in the region will extend declines after a record drop last year.
Telstra Sued by Australia Regulator for Allegedly Thwarting Competition Australia’s antitrust regulator said it will seek penalties and injunctions against Telstra Corp., the nation’s largest phone company, accusing it of uncompetitive practices in denying rivals access to its network.
Australian Dollar Touches One-Month High on Fed's Plan to Buy Treasuries The Australian dollar fell from the strongest in a month and its bonds rose as investors speculated the central bank will lower interest rates because of the slowing global economy.
OZ Minerals Says Australian Regulator May Rule on Minmetals Bid This Month OZ Minerals Ltd., the debt-laden company that agreed to a A$2.6 billion ($1.8 billion) takeover by China Minmetals Group, said an Australian regulator may rule on the offer by the end of the month.
Bennelong SGI to Start a Second Hedge Fund to Invest in Global Equities Bennelong Funds Management, an Australian fund manager with A$400 million ($271 million), will start a second hedge fund to ride through the financial crisis as it seeks to more than double funds under management.
Diageo May Gain From Defeat of Australia Pre-Mix Drink Tax, Citigroup Says Diageo Plc, the world’s biggest liquor maker, Fortune Brands Inc. and Coca-Cola Amatil Ltd. may benefit from the Australian Senate’s decision to reject increased taxes on pre-mixed spirit drinks, Citigroup Inc. said.
Emissions Trading Too Risky for New Zealand's Companies, Todd Energy Says New Zealand corporate balance sheets are under strain and should not be exposed to the risk of carrying volatile carbon derivatives to meet climate-change targets, Todd Energy Ltd. told lawmakers today.
Canada
Canadian Stocks Rise a Seventh Day as Insurers Advance on Fed's Debt Plan Canadian stocks extended their rally to a seventh day, led by insurers and materials producers, after the Federal Reserve said it would buy $1 trillion in bonds to shore up the financial system.
Canada's Harper Sees No Economic Rebound Until U.S. Repairs Banking System Canadian Prime Minister Stephen Harper reiterated the country won’t emerge from its recession until the U.S. repairs its financial system.
Toronto-Dominion to Give Shareholders `Say on Pay' Vote for Executives Toronto-Dominion Bank, Canada’s second-largest lender by assets, said it will give shareholders a “say on pay” for executive compensation.
Canadian Wholesale Sales Fall to Lowest Since 2006 on Slumping Auto Orders Canadian wholesale sales fell to the lowest in more than two years on slumping automobile orders for export to the U.S. and for the domestic market.
Canada Dollar Jumps as U.S. Currency Sinks on Fed Treasuries Purchase Plan Canada’s dollar climbed to the highest in three weeks after the Federal Reserve said it will purchase $300 billion of Treasuries, fueling concern the central bank is debasing the world’s reserve currency.
Manulife Downgraded by Moody's After Fourth-Quarter Loss, Equity Declines John Hancock Life Insurance Co. was among units of Manulife Financial Corp. that were downgraded by Moody’s Investors Service due to plunging stock markets.
Magna Says Union Workers Reject Agreement to Keep New York Factory Open Magna International Inc., North America’s largest auto-parts maker, said union workers at a New York transmission plant rejected another agreement that might have kept the 1,400-employee factory open.
Libya Will Exercise Preemption Right to Buy Verenex Over China National Libya will exercise its right to buy Verenex Energy Inc., trumping a proposed C$499 million ($393 million) takeover of the Canadian explorer by China National Petroleum Corp.
China
China Mobile Posts Slowest Profit Growth in Four Years on Rural Expansion China Mobile Ltd., the world’s biggest wireless carrier, posted the slowest growth in profit in more than four years after the company boosted spending on networks in rural areas.
Huiyuan Plunges by Record 53% After Coca-Cola's $2.3 Billion Bid Blocked China Huiyuan Juice Group Ltd. plunged by a record 53 percent in Hong Kong trading after Chinese regulators blocked Coca-Cola Co.’s $2.3 billion takeover bid for the country’s biggest domestic juicemaker.
Emerging Markets Spared Worst First Quarter on China Growth, Chile Copper Just about the only equities gaining in the worst start to a year for the global stock market since 1990 are emerging economies, from Shanghai to Santiago and Tunis to Taipei.
China Rural Subsidies Spur GM's Sales More Than $13.4 Billion U.S. Bailout General Motors Corp. can thank U.S. taxpayers for $13.4 billion in loans that have kept it running. The carmaker can also thank China’s government, which is kicking in subsidies of as much as $1,170 to help it sell vans.
Cheung Kong Infrastructure Profit Falls 7.3% on China Contribution, Forex Cheung Kong Infrastructure Holdings Ltd., the roads and utility company controlled by Hong Kong billionaire Li Ka-shing, said 2008 profit fell 7.3 percent on weaker contributions from China and currency fluctuations.
BASF Seeks Acquisitions in Asia-Pacific of Construction Chemical Producers BASF AG, the world’s biggest chemical producer, is seeking acquisitions of construction chemicals companies in Asia Pacific to tap a growing market.
Cnooc Parent Plans to Reduce Its Spending on `Non-Core' Business, Wu Says China National Offshore Oil Corp., the nation’s third-largest oil producer, will cut spending on “non-core” businesses as falling crude prices reduce cash flow and profit, said the company’s chief financial officer.
Hong Kong's Bank Stocks Decline; Developers Rise on Outlook for Low Rates Hong Kong’s financial stocks fell as HSBC Holdings Plc led banks lower the day before share rights trade following the U.K.’s largest ever offering.
Eastern Europe
Estonia's Euro Plans May be Too Ambitious, EU Commissioner to Tell Ansip European Union Monetary Affairs Commissioner Joaquin Almunia may argue today that Estonian Prime Minister Andrus Ansip’s plan to join the euro by July 2010 is too ambitious, according to an internal EU document.
Russia Says Banks Must Help Companies Pay Foreign Debt, Not Rely on State Russian companies need to work with domestic banks to solve their foreign debt problems and not rely on government bailouts, First Deputy Prime Minister Igor Shuvalov said.
Emerging Markets Spared Worst-Ever Global Start on China, Chile Expansion Just about the only equities gaining in the worst start to a year for the global stock market since 1990 are emerging economies, from Shanghai to Santiago and Tunis to Taipei.
Russian Government May Buy Indian Phone Stake From Billionaire Yevtushenko Russia’s government may buy a stake in billionaire Vladimir Yevtushenkov’s Indian mobile-phone unit to help his holding company AFK Sistema pay off debt.
European Union to Stand by Stimulus Plans in Face of Deepening Recession European Union leaders are likely to decline to pump more money into the stricken economy at a two-day summit starting today, bucking evidence of a deepening worldwide recession.
ArcelorMittal Considers Halting Work at 2 Coal Mines in Siberia on Crisis ArcelorMittal said it’s considering halting operations at two coal mines in Siberia until market conditions improve.
Polish Zloty Slides Versus Euro as Economy Ministry Cuts Growth Forecast The Polish zloty fell against the euro, leading emerging-market currencies lower, as Deputy Economy Minister Adam Szejnfeld signaled the economic slowdown in the country may be worsening.
Russia's Ruble Jumps to Two-Month High Against Dollar, Climbs Versus Euro Russia’s ruble climbed to its strongest level in almost two months versus the dollar and strengthened against the euro.
Europe
Stocks Rise Globally; MSCI World Posts Longest Streak of Gains Since 2006 Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II.
BAA Is Given Longer to Sell Off London Airports, Gets a Choice in Scotland BAA Ltd., the world’s biggest airport operator, was given two years to sell its Gatwick and Stansted hubs in London and a third terminal in Scotland, extending a timetable proposed by regulators in December.
Prudential Says Tucker to Quit as CEO; Finance Chief Thiam to Replace Him Prudential Plc said Chief Executive Officer Mark Tucker will step down as the U.K.’s second-largest insurer posted operating profit that beat analyst forecasts.
EU Leaders Will Stand by Stimulus Measures in Face of Deepening Recession European Union leaders are likely to decline to pump more money into the stricken economy at a two-day summit starting today, bucking evidence of a deepening worldwide recession.
Iceland Lowers Key Interest Rate to 17% as Slump Eases Inflation Pressure Iceland’s central bank cut the benchmark interest rate by 1 percentage point after the severest recession since World War II and a slump in consumer demand eased pressure on prices.
Russian Government May Buy Indian Phone Stake From Billionaire Yevtushenko Russia’s government may buy a stake in billionaire Vladimir Yevtushenkov’s Indian mobile-phone unit to help his holding company AFK Sistema pay off debt.
U.K., U.S. Should Follow Japan Lead in Buying Subordinated Debt, Reid Says U.S. and U.K. governments should follow Japan’s lead and buy subordinated bonds sold by banks, according to Jim Reid, head of fundamental credit strategy at Deutsche Bank AG.
Hermes Profit Beats Estimates; Chief Vows Store Expansion Will Continue Hermes International SCA reported profit that beat analysts’ estimates, raised its dividend and vowed to keep opening stores as demand for the French luxury label’s Birkin and Kelly handbags resists the recession.
France
Hermes Profit Beats Estimates; Chief Vows Store Expansion Will Continue Hermes International SCA reported profit that beat analysts’ estimates, raised its dividend and vowed to keep opening stores as demand for the French luxury label’s Birkin and Kelly handbags resists the recession.
Airbus's A380 Sales Pitch Frays as Emirates, Lufthansa Delay Taking Planes Airbus SAS spent a decade saying the A380, the world’s largest passenger plane, would stand up to a recession because it’s cheaper to run than most other jetliners. The argument is starting to fray.
French Stocks Advance: Societe Generale, Axa, Hermes, Ipsos Lead the Gains France’s benchmark CAC 40 Index climbed for the first time in three days, adding 22.52, or 0.8 percent, to 2,782.86 as of 9:45 a.m. in Paris. The SBF-120 Index advanced 0.9 percent to 2,010.79.
Dassault Aviation 2008 Profit Falls; Dividend Is Halved Because of Crisis Dassault Aviation SA, maker of the Falcon corporate jet and Rafale fighter, said 2008 profit declined 2.4 percent and cut its dividend almost in half because of the global recession and financial crisis.
Gemalto Full-Year Net $205 Million; Confirms 2009 Operating Profit Target Gemalto NV said that 2008 net income increased to 153 million euros from 89 million euros in 2007.
French Refinery Strikes Reduce Output, Distribution, Says Union Official French refineries, utilities and ports suffered disruption today as workers went on strike to protest the government’s response to rising unemployment.
European Union to Clarify Rules on State Subsides for High-Speed Internet Neelie Kroes, the European Union’s competition commissioner, said she plans to clarify rules on how EU governments can subsidize new high-speed Internet networks.
Stocks Rise Worldwide; MSCI World Posts Longest Streak of Gains Since 2006 Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II.
Germany
DAX Index Gains for Second Day, Led by Deutsche Bank, SAP; Adidas Declines German stocks gained amid optimism the Federal Reserve’s plan to buy $300 billion in government debt may bring down borrowing costs and help end the recession.
ThyssenKrupp Drops After Forecasting Loss on Lower Demand, Falling Prices ThyssenKrupp AG, Germany’s largest steelmaker, dropped the most in seven weeks in Frankfurt trading after forecasting a second-quarter loss because of lower demand, falling prices and further writedowns on inventories.
Stocks Rise Globally; MSCI World Posts Longest Streak of Gains Since 2006 Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II.
Krones Drops After Orders Slumped, Company Says Can't Rule Out 2009 Loss Krones AG, the maker of bottling and packaging equipment that said it may post a loss this year, fell to a two-month low in Frankfurt trading.
EU Leaders Will Stand by Stimulus Measures in Face of Deepening Recession European Union leaders are likely to decline to pump more money into the stricken economy at a two-day summit starting today, bucking evidence of a deepening worldwide recession.
European 10-Year Government Bonds Soar as Fed Commits to Buying Treasuries European government bonds surged, pushing yields down by the most since at least 1999, after the Federal Reserve said yesterday it will buy as much as $300 billion of Treasuries, increasing pressure on the European Central Bank to follow suit.
Airbus's A380 Sales Pitch Frays as Emirates, Lufthansa Delay Taking Plane Airbus SAS spent a decade saying the A380, the world’s largest passenger plane, would stand up to a recession because it’s cheaper to run than most other jetliners. The argument is starting to fray.
Success Smells Like Madagascan Vanilla as Flavor Developers Buck Recession The smell of success in this recession is Madagascan vanilla.
India & Pakistan
India Inflation Slows to 2-Decade Low; Providing Scope for Rate Reduction India’s inflation slowed to a two- decade low, providing room for the central bank to cut interest rates to protect the economy from the global recession.
Pakistan Fines Stock Exchanges for Imposing Share-Trading Curbs Last Year Pakistan fined its three stock exchanges for imposing trading curbs last year, the first action by the regulator against the bourses after the restriction.
Russian Government May Buy Indian Phone Stake From Billionaire Yevtushenko Russia’s government may buy a stake in billionaire Vladimir Yevtushenkov’s Indian mobile-phone unit to help his holding company AFK Sistema pay off debt.
India Ends Soybean Oil Import Tax, May Boost Cooking Oil Purchases Abroad India, the world’s biggest buyer of vegetable oils after China, scrapped a 20 percent tax on imports of crude soybean oil to the bring duties on the commodity on par with palm oil, its main substitute.
Citigroup to Retain 12% Stake in India's Housing Development, Mistry Says Citigroup Inc. doesn’t plan to sell its stake in India’s Housing Development Finance Corp., said Keki Mistry, managing director of the South Asian nation’s biggest mortgage lender.
Maharashtra State Sugar Production Declines 34% on Planting, Dry Weather Sugar output in India’s Maharashtra state, the country’s largest producer, declined 34 percent this year after farmers reduced the area planted to the crop and dry weather lowered yield.
Bonds Advance After Government Reports Slowest Inflation in Two Decades India’s 10-year bonds rose for a second day after the government reported the slowest inflation in at least two decades.
Indian Rupee Rises to Three-Week High as Fed Plan Boosts Appeal of Yield India’s rupee climbed to a three- week high on speculation the U.S. Federal Reserve’s plan to buy $1 trillion of bonds will drive interest rates lower, boosting demand for higher-yielding assets.
Italy
Italian Stocks Advance, as Banks Surge; Intesa Sanpaolo, UniCredit, Unipol Italy’s benchmark S&P/MIB Index rose for a second day, adding 396, or 2.7 percent, to 14,869.
Financier Zaleski Seeking Two-Year Extension to Debt Moratorium, Sole Says Financier Romain Zaleski has asked his creditor banks for a two-year extension on a debt moratorium for his Carlo Tassara SpA holding company, daily Il Sole 24 Ore reported, without saying where it got the information.
Stocks Rise Globally; MSCI World Posts Longest Streak of Gains Since 2006 Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II.
Nestle Planning to Sell Italian Motta Ice Cream Brand, Daily MF Reports Nestle SA, the world’s largest food company, is planning to sell its Italian Gelati Motta ice cream unit, MF reported, without saying where it got the information.
European `Real' Rates Lower Than in U.S., Bini Smaghi Writes in Repubblica European Central Bank Executive Board member Lorenzo Bini Smaghi said European interest rates are lower than U.S. rates when making a comparison of real inter- bank lending.
Ponzi Scheme Victims All May Have Missed an Easy Clue: Bogus Accountants The arrest of Bernard Madoff’s accountant highlights the peril posed by bogus auditors at the heart of Ponzi schemes that have bilked investors out of billions of dollars.
Euro Area Must Continue Integration Process, Bini Smaghi Tells Repubblica European Central Bank Executive Board member Lorenzo Bini Smaghi said economic and financial integration in the euro area must be strengthened, according to a letter in La Repubblica today.
Dollar Rally Crumbles as Fed Ramps Up Printing Presses to Revive Economy The rally that pushed the dollar to the highest levels since 2006 is in danger of crumbling as the Federal Reserve starts buying Treasuries and ramps up its purchases of mortgage debt, adding to a flood of greenbacks.
Japan
Japan's Nikkei 225 Slips on Dollar Drop, Paring Weekly Gain; Banks Advance Japan’s Nikkei 225 Stock Average fell for the first time in a week as a dollar sell-off sparked by the U.S. Federal Reserve’s pledge to buy $1 trillion in bonds overshadowed optimism the action will revive credit markets.
Goldman Sachs Leads $1.2 Billion Takeover Bid for Universal Studios Japan A Goldman Sachs Group Inc.-led group offered 111.2 billion yen ($1.2 billion) to take over USJ Co., the operator of the Universal Studios Japan theme park that’s losing customers as the economy contracts.
Japan Buys Carbon Credits From Ukraine to Avoid Exceeding Emissions Limits Japan, seeking to meet a 2012 cap on greenhouse-gas emissions, agreed to purchase carbon dioxide credits from Ukraine in its first such overseas deal.
Hokuriku Electric Seeks to Restart Japanese Reactor Shut After Cover Up Hokuriku Electric Power Co., which supplies more than 2 million customers in Japan, will today ask local officials for permission to restart a reactor shut since 2007 because the utility covered up a safety breach.
Toyota to Cut Hiring in Japan to Lowest in 14 Years as Auto Demand Drops Toyota Motor Corp. will slash recruitment of new graduates in Japan next fiscal year to the lowest level in 14 years after slashing production and forecasting its first loss in almost six decades.
Bank of Japan Says Economy Is Worsening `Significantly,' Keeps Assessment The Bank of Japan said the world’s second-largest economy is worsening “significantly,” maintaining its evaluation for a second month.
Bonds Rise, Complete Weekly Gain, as Central Banks Increase Debt Purchases Japan’s 10-year bonds completed the biggest weekly advance in a month as central banks stepped up public debt purchases to keep down borrowing costs.
Yen Advances to Three-Week High Against Dollar as Yield Difference Narrows The yen rose to a three-week high versus the dollar, after gaining the most since December yesterday, as speculation the U.S. and Europe are committed to keeping down yields boosted the appeal of Japanese assets. Gold posted the biggest jump in more than four months.
Latin America
Chavez Runs Short of Cash for Takeovers, Contractors as Oil Prices Slump Venezuela is holding up payments to contractors, oil services companies and targets of President Hugo Chavez’s nationalization drive, indicating the country is running short of cash after petroleum prices collapsed.
Emerging Markets Spared Worst-Ever Global Start on China, Chile Expansion Just about the only equities gaining in the worst start to a year for the global stock market since 1990 are emerging economies, from Shanghai to Santiago and Tunis to Taipei.
Copper Advances to Four-Month High in London on U.S. Federal Reserve Plan Copper rose to a four-month high in London, leading a rally in industrial metals, on speculation the Federal Reserve’s plan to buy $300 billion of government bonds will revive growth in the world’s largest economy.
Mexico Spares Ford, Tyson as Tariffs Incense U.S. Pear, Potato Producers Mexico spared Ford Motor Co. and Tyson Foods Co. from $2.4 billion in tariffs on U.S. imports that take effect today, deciding instead to target growers of potatoes, cherries and pears.
GE, 3M, Caterpillar May Pay More for Freight as U.S. Bars Mexican Trucks General Electric Co., 3M Co., Caterpillar Inc. and other U.S. companies operating in Mexico will pay higher shipping costs after the U.S. scrapped a trucking program designed to eliminate daylong delays at the border.
Global Airlines 2009 Loss May Exceed Forecast of $2.5 Billion, IATA Says Airlines worldwide may report a larger-than-expected loss this year as the global recession saps demand for air travel, according to the International Air Transport Association.
Mexico's Industrial Production Fell Most Since 1995 as Export Demand Drops Mexico’s industrial production fell the most in almost 14 years in January as the country’s ties to the declining U.S. economy crimps manufacturing and trade.
Argentine Farmer Roadblocks Loom if Lawmakers Won't Debate Export Tariffs Argentine farmers may start blocking the nation’s highways if lawmakers from the ruling Peronist coalition refuse a demand to debate tax cuts tomorrow.
Middle East
Airbus's A380 Sales Pitch Frays as Emirates, Lufthansa Delay Taking Plane Airbus SAS spent a decade saying the A380, the world’s largest passenger plane, would stand up to a recession because it’s cheaper to run than most other jetliners. The argument is starting to fray.
Kuwait's Ratings Placed Under Review for Downgrade at Moody's on Politics Kuwait’s sovereign ratings were placed on review for possible downgrade at Moody’s Investors Service after parliament’s dissolution prevented an economic- stimulus package from being passed by the government.
Persian Gulf Shares Rise on U.S. Plan, Oil; Banks, Property Stocks Climb Persian Gulf shares rose as a U.S. plan to revive growth in the world’s largest economy boosted the price of crude oil, improving prospects for the region’s economy.
U.A.E. Economy May Contract This Year on Credit Crunch, Al-Mansouri Says The United Arab Emirates economy may shrink this year due to the global credit crunch, Minister of Economy Sultan Bin Saeed al-Mansouri said.
Taqa Revises Earnings, Says Fourth-Quarter Profit Fell 64% on Impairment Abu Dhabi National Energy Co., the state-controlled power and oil producer known as Taqa, said fourth-quarter profit declined 64 percent because of the fall in oil and gas prices and an impairment charge.
Emerging Markets Spared Worst First Quarter on China Growth, Chile Copper Just about the only equities gaining in the worst start to a year for the global stock market since 1990 are emerging economies, from Shanghai to Santiago and Tunis to Taipei.
Amlak Finance and Tamweel Liquidation Is Not An Option, Al-Mansouri Says United Arab Emirates economy minister Sultan Bin Saeed al-Mansouri ruled out liquidating the country’s biggest mortgage lenders and backed a merger of the two companies.
U.K. & Ireland
BAA Is Given Longer to Sell Off London Airports, Gets a Choice in Scotland BAA Ltd., the world’s biggest airport operator, was given two years to sell its Gatwick and Stansted hubs in London and a third terminal in Scotland, extending a timetable proposed by regulators in December.
Prudential Says Tucker to Quit as CEO; Finance Chief Thiam to Replace Him Prudential Plc said Chief Executive Officer Mark Tucker will step down as the U.K.’s second-largest insurer posted operating profit that beat analyst forecasts.
U.K. Budget Deficit Swells to 9 Billion Pounds in February as Taxes Slump Britain had a 9 billion-pound ($12.8 billion) budget deficit in February, the biggest for the month in at least 16 years, as the recession slashed tax receipts and the highest unemployment in a decade drove up spending.
Stocks Advance on Federal Reserve Plan; BHP Billiton, Rio Tinto Lead Gains U.K. stocks advanced for the first time in three days, led by mining companies as the Federal Reserve’s plans to buy $300 billion of government bonds boosted commodity prices.
Turner's `Revolution' Means Less Profitable U.K. Banks, Tougher Regulation Britain’s financial regulator promised a “revolution” in its response to the financial crisis. Some economists and regulatory experts say it may be more of a regression.
London Rental Homes Market Worst Regional Performer in U.K., Survey Shows London’s rental home market was the worst regional performer in the U.K. for the three months ended Jan. 31 as a record number of properties were up for lease, the Royal Institution of Chartered Surveyors said.
Stocks Rise Globally; MSCI World Posts Longest Streak of Gains Since 2006 Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II.
Equitable Life Compensation Too Complex to Encourage Claims, Lawmakers Say The British government’s decision to consider compensation for policyholders of the Equitable Life Assurance Society is too complex and may leave many struggling to claim money they have missed out on.
U.S.
`Rambo Fed' Pledges Treasuries, Mortgage-Debt Purchases to Combat Crisis By committing to buy Treasuries and double his purchases of mortgage debt, Federal Reserve Chairman Ben S. Bernanke signaled his determination to avoid a repeat of the Great Depression and his willingness to pump as much cash into the economy as needed to end the current crisis.
Bernanke Puts Ceiling on Treasury Yields in Bid to Reduce Consumer Rates Federal Reserve Chairman Ben S. Bernanke may have brought an end to the worst quarterly start for Treasuries since 1980 by establishing a ceiling on yields with plans to buy $300 billion in government debt.
AIG's Liddy Endures 'Worst Job in America' as Congress Assails Insurer American International Group Inc. Chief Executive Officer Edward Liddy finds himself fighting to prevent the insurer from tarnishing his reputation, a fate suffered by his three predecessors.
U.S. Mortgage Rates May Fall to Lowest Since World War II on Fed Purchases U.S. mortgage rates may fall to the lowest since World War II after the Federal Reserve announced plans to buy up to $300 billion of Treasuries and increase purchases of mortgage-backed bonds.
Sun-IBM Merger Could Trigger More Takeovers as Silicon Valley Icons Fade Sun Microsystems Inc. co-founder Scott McNealy, known for deriding the technology of more- established companies, may see his business become part of one of the oldest: International Business Machines Corp.
U.S. Leading Economic Index Probably Dropped for Third Time in Five Months The index of U.S. leading economic indicators probably fell in February for the third time in five months, economists said before a report today, reflecting the worsening conditions that spurred the Federal Reserve to say yesterday it will buy Treasury securities.
Stocks
U.S. Stock-Index Futures Decline; Nike Retreats in Europe on Lower Sales U.S. stock futures fell, indicating the Standard & Poor’s 500 Index will decline from its highest level in more than a month, after Nike Inc. reported the first sales drop in more than seven years.
Nike, Oracle, O'Reilly Automotive, Time Warner Cable: U.S. Equity Preview Shares of the following companies may have unusual fluctuations in U.S. trading. Stock symbols are in parentheses.
Banco Continental, Siderurgica, Telefonos de Mexico: Latin Equity Preview The following companies may have unusual price changes today in Latin American trading. Stock symbols are in parentheses and share prices reflect the previous close.
Stocks Rise Globally; MSCI World Posts Longest Streak of Gains Since 2006 Stocks climbed, sending the MSCI World Index to the longest stretch of gains since 2006, as the Federal Reserve said it will buy $300 billion of government bonds to combat the first global recession since World War II.
U.K. Stocks Advance on Fed Plan; BHP Billtion, Rio Tinto Lead the Gains U.K. stocks advanced for the first time in three days, led by mining companies as the Federal Reserve’s plans to buy $300 billion of government bonds boosted commodity prices.
French Stocks Advance: Societe Generale, Axa, Hermes, Ipsos Lead the Gains France’s benchmark CAC 40 Index climbed for the first time in three days, adding 22.52, or 0.8 percent, to 2,782.86 as of 9:45 a.m. in Paris. The SBF-120 Index advanced 0.9 percent to 2,010.79.
Emerging Markets Spared Worst First Quarter on China Growth, Chile Copper Just about the only equities gaining in the worst start to a year for the global stock market since 1990 are emerging economies, from Shanghai to Santiago and Tunis to Taipei.
Asian Stocks Rise on Federal Reserve Bond Plan; Mitsubishi UFJ, Zijin Gain Asian stocks rose for the fifth day, the longest winning streak since the start of the year, after the Federal Reserve said it will buy $300 billion of Treasuries, stoking optimism that lower borrowing costs will end the first global recession since World War II.
Japan's Nikkei 225 Slips on Dollar Drop, Paring Weekly Gain; Banks Advance Japan’s Nikkei 225 Stock Average fell for the first time in a week as a dollar sell-off sparked by the U.S. Federal Reserve’s pledge to buy $1 trillion in bonds overshadowed optimism the action will revive credit markets.
China's Stocks Post Longest Winning Stretch This Year on Stimulus Outlook China’s stocks rose for a fourth day, driving the benchmark index to its longest winning streak this year, led by commodities producers on optimism the government’s stimulus plan is working.
Taiwan Equity Rebound to Pause as Short Covering Ends, Deutsche Bank Says Taiwan stocks, the world’s third- best performers this year, will probably “take a break” in the second quarter once investors finish covering their short sale positions, Deutsche Bank AG said.
Bonds
Bernanke Puts Ceiling on Treasury Yields in Bid to Reduce Consumer Rate Federal Reserve Chairman Ben S. Bernanke may have brought an end to the worst quarterly start for Treasuries since 1980 by establishing a ceiling on yields with plans to buy $300 billion in government debt.
U.S. 10-Year Treasury Notes Advance Before Fed Announces Debt Sale Amount Treasuries rose, extending the biggest one-day gain in more than four decades, as investors raised bets the Federal Reserve’s plan to spend as much as $300 billion of government debt will keep yields low.
GE Capital to Show Funding, Risks in Today's Five-Hour `Deep-Dive' Meeting General Electric Co.’s meeting to detail the operations, funding and risks of its finance arm will command the attention of investors including William Batcheller, even across its scheduled five-hour run today.
JPMorgan, GE Face Losses on Private-Label Credit Cards as Retailers Vanish JPMorgan Chase & Co. and General Electric Co., two of the biggest sponsors of store-branded credit cards, face a rebellion by customers who may tear up their bills from defunct retail chains.
European 10-Year Government Bonds Soar as Fed Commits to Buying Treasuries European government bonds rose, pushing yields down by the most since at least 1999, after the Federal Reserve said it will buy as much as $300 billion of Treasuries, increasing pressure on the European Central Bank to follow suit.
Corporate Bond Risk Declines in Europe, Credit-Default Swap Prices Show The cost of protecting European corporate bonds from default fell, according to traders of credit-default swaps.
U.S., U.K. Should Follow Japan in Buying Bank Subordinated Debt, Reid Says U.S. and U.K. governments should follow Japan’s lead and buy subordinated bonds sold by banks, according to Jim Reid, head of fundamental credit strategy at Deutsche Bank AG.
Japan Bonds Rise, Post Weekly Gain, as Central Banks Boost Debt Purchases Japan’s 10-year bonds completed the biggest weekly advance in a month as central banks stepped up public debt purchases to keep down borrowing costs.
Asian Pensions Dump Shares for Bonds as Philippine Premiums Fund Stimulus Pension funds and life insurers that manage more than $80 billion in Asia are shifting from stocks into government bonds, betting shares in the region will extend declines after a record drop last year.
Asia Money Rates, Bond Risk Drop as Fed Bond Buying May Ease Credit Crunch Asia-Pacific money market rates fell and the cost of protecting bonds from default dropped on optimism the Federal Reserve’s plan to buy more than $1 trillion of bonds will ease a global credit crunch.
Commodities
Indian Government Announces End to 20% Import Duty on Crude Soybean Oil India, the world’s biggest buyer of vegetable oils after China, scrapped a 20 percent tax on imports of crude soybean oil to the bring duties on the commodity on par with palm oil, its main substitute.
Copper Advances to Four-Month High in London on U.S. Federal Reserve Plan Copper rose to a four-month high in London, leading a rally in industrial metals, on speculation the Federal Reserve’s plan to buy $300 billion of government bonds will revive growth in the world’s largest economy.
Gold Climbs Most in Four Months in New York as Fed Plan May Spur Inflation Gold rose the most in four months in New York after the Federal Reserve said it would buy as much as $1.15 trillion in bonds to lower borrowing costs, reviving concern that inflation will accelerate.
Palm Oil Erases Gains in Malaysia After India Ditches Duty on Soybean Oil Palm oil futures in Malaysia erased earlier gains after India, the second-largest edible oils consumer, removed a 20 percent import levy on soybean oil, boosting the demand outlook for the substitute.
Fed Move Puts `Strong Bid' Under Copper, Steel, Grains, Gartman Reports The Federal Reserve’s decision to buy U.S. government bonds and double purchases of mortgage debt supports commodities, U.S. economist Dennis Gartman said. He commented in his Gartman Letter today.
Corn, Soy, Wheat Jump as Dollar Drop on Fed Plan May Lift Demand Prospects Corn, soybeans and wheat jumped on a higher demand outlook for U.S. crops as the dollar plunged after the U.S. Federal Reserve unexpectedly announced debt purchases.
Currencies
Yen Advances to Three-Week High Against Dollar as Yield Difference Narrows The yen rose to a three-week high versus the dollar, after gaining the most since December yesterday, as speculation the U.S. and Europe are committed to keeping down yields boosted the appeal of Japanese assets. Gold posted the biggest jump in more than four months.
Dollar's Rally Crumbles as Fed Ramps Up Printing Presses to Revive Economy The rally that pushed the dollar to the highest levels since 2006 is in danger of crumbling as the Federal Reserve starts buying Treasuries and ramps up its purchases of mortgage debt, adding to a flood of greenbacks.
Asian Currencies Rally, Led by Korean Won, Taiwan Dollar on Fed Bond Plan Asian currencies rose, led by South Korea’s won and India’s rupee, on speculation $1 trillion of bond purchases planned by the U.S. Federal Reserve will ease a global recession and revive demand for emerging-market assets.
Australian Dollar Touches One-Month High on Fed's Plan Spurs Yield Demand The Australian dollar fell from the strongest in a month and its bonds rose as investors speculated the central bank will lower interest rates because of the slowing global economy.
Taiwan Dollar, Korean Won May Reverse Month of Gains: Technical Analysis The Taiwan dollar and South Korean won may weaken as this month’s gains in the two currencies bring them toward “overbought levels,” State Street Global Markets LLC said.
China's Yuan Posts Highest Close of the Year on Stronger Reference Rate The yuan rose to the strongest level this year after the People’s Bank of China set the reference rate at the highest in more than three months, reinforcing speculation China won’t seek a weaker currency.
Indian Rupee Rises to Three-Week High as Fed Plan Boosts Appeal of Yield India’s rupee climbed to a three- week high on speculation the U.S. Federal Reserve’s plan to buy $1 trillion of bonds will drive interest rates lower, boosting demand for higher-yielding assets.
Pound May Strengthen to Three-Week High Versus Dollar: Technical Analysis The British pound may strengthen to a three-week high of $1.45 against the dollar, BNP Paribas SA said, citing trading patterns.
Singapore's Dollar to Slide 7.5% in Three Months, Goldman's Fung Predicts The Singapore dollar is likely to drop 7.5 percent to S$1.64 versus the greenback over the next three months as a deteriorating economy prompts the central bank to favor a weaker currency, Goldman Sachs Group Inc. said.
Euro to Post Brief Rally to $1.40, Then Drop as ECB Follows Fed, UBS Says The euro may surge to $1.40 for the first time in 11 weeks on the European Central Bank’s reluctance to match the Federal Reserve in buying government debt, before falling toward $1.20 later this year, UBS AG said.
