By Edward Krudy NEW YORK (Reuters) - U.S. stocks index futures fell on Friday on expectations China would raise interest rates, hitting commodity prices and sending the local stock market into a tailspin. * China stocks fell 5.2 percent on Friday for their biggest percentage loss in over a year, while global commodities tumbled on speculation the central bank is about to raise interest rates to tackle inflation. For details, see * "The macro today is the thing that is going to rule," said Kim Caughey, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh. "China in the past year, whenever they've raised interest rates, it has hit the market." * Resource-related stocks were likely to take the brunt of selling as crude oil CLc1 dropped almost $2 a barrel to near $86, while copper CMCU3 fell around 2 percent. In early trading, Exxon Mobil Corp XOM.N fell 1 percent, while Freeport-McMoRan Copper & Gold Inc FCX.N was off 2.3 percent. * S&P...
U.S. Stock Index Futures Signal Lower Open
* Futures for the Dow Jones industrial average DJc1 , the S&P 500 SPc1 and the Nasdaq 100 NDc1 fell 0.8 to 1.2 percent, pointing to a sharply weaker start for equities on Wall Street on Friday. * Thomson Reuters/University of Michigan Surveys of Consumers release at 1455 GMT preliminary November consumer sentiment index. Economists in a Reuters survey expect a reading of 69.0 compared with 67.7 in the final October report. * Companies announcing results on Friday include Agilent Technologies A.N , D.R. Horton DHI.N and JCPenney JCP.N . * G20 leaders drew a veil over their economic policy disputes on Friday, agreeing to tackle tensions that have raised the spectre of currency wars and giving the nod to countries that have seen huge capital inflows to impose controls. * At 1530 GMT, ECRI releases its weekly index of economic activity for Nov. 5. In the prior week the index read 123.2. * The chief executive of Wal-Mart Stores Inc's WMT.N Asia operations said...
US Online Report Business News
NEW YORK (Reuters) - Without a boost from Washington policymakers or data showing budding strength in the economy, Wall Street's rally may be running out of fuel as the S&P 500 eases off its 2010 high. DETROIT/NEW YORK (Reuters) - China's SAIC Motor Corp Ltd <600104.SS> has reached an agreement in principle to take a stake in General Motors Co <GM.N> if Chinese regulators approve a deal to deepen an existing alliance between the two automakers, three people familiar with the matter said. DUBLIN/BERLIN (Reuters) - Ireland did not rule out the possibility that it may have to turn to Europe for help in dealing with its debt crisis on Sunday but said that no application had been made for assistance yet. MELBOURNE (Reuters) - Top global miner BHP Billiton <BHP.AX> on Monday scrapped its $39 billion bid for Canada's Potash Corp <POT.TO>, the world's biggest deal this year, and bowed to calls from investors to return cash with a $4.2 billion share...
Alibaba Reports $55 Million profit
Alibaba.com Ltd. which is the largest e-commerce company in China, reported a record net profit during the quarter of July to September, as the company realized a revenue from value-added services buffered slowing subscriber growth. Further, the company warned of easing growth as China's exports may cool during the coming period. On the other hand, the company released its an income statement, where the net profit surged 55%m to 366 million yuan (55 million American dollar) during the third quarter, compared with a previous profit 236 million yuan a year earlier. The company noted that its paying members rose 29.7% year-on-year, and they rose 5.3% quarter-on-quarter during the third three months ended Sept. 30, to 750,937 member.
Weekahead – the View From Reuters Asia News Editors
SINGAPORE, Nov 14 (Reuters) - Following is the view from Reuters Asia editors on the news that is likely to matter most this week: ASIA MARKETS OUTLOOK Whether it is just an opportunity to correct recent market patterns or something more deeply bearish, investors have decided that a period of avoiding risk is in order. As a result, the combination of the Group of 20 nations being unable to solve their disagreements over global imbalances and resurfacing fears about the euro zone periphery's ability to manage its debt could mean the coming week will be volatile. A lot may depend on whether European Union officials do anything to ease pressure on Ireland's finances. Markets swung around on Friday on rumours of a bailout, later denied, so the EU finance ministers meetings on Tuesday and Wednesday should get even more attention than usual. But even beyond that, the risk rally that began in May and took off in earnest in late August when...
China Wins 100 Orders for First Jetliner
By Alison Leung and Tim Hepher ZHUHAI, China, Nov 16 (Reuters) - China announced a 100-plane order for its first commercial jetliner, a first step in its ambitions to challenge Airbus EAD.PA and Boeing BA.N for a slice of a global market worth $1.7 trillion. State-owned COMAC, or Commercial Aircraft Corp of China, unveiled the orders at the country's largest air show on Tuesday, ending a dearth of orders in the two years since it launched designs for the 150-seat C919. As air travel expands with a billion Chinese predicted to be flying for business and leisure early next decade, China wants to reduce its reliance on foreign planes and foster a domestic industry worthy of a country capable of putting a man in space. COMAC said the orders came from four Chinese airlines, which was no surprise given government encouragement for the project, but also the leasing arm of General Electric GE.N , which will supply the C919 engines together with France's Safran..
Five World Markets Themes Next Week
LONDON (Reuters) - Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them. 1/ LET'S CALL IT A YEAR Six weeks to go to year-end and there are already signs that liquidity in stressed parts of financial markets is drying up. Whether this is due to markets starting to seize up for certain assets, such as some peripheral euro zone sovereign debt, or a desire among banks and speculators to book any profits early, the result is likely to be increased volatility in the weeks ahead. Bid/offer yield spreads on Irish government bonds have widened, reflecting a lack of willing buyers other than the European Central Bank and thus feeding into record wide sovereign spreads over euro zone benchmarks. The risk is that flows will be increasingly dictated by these liquidity considerations rather than fundamental factors and moves could be exacerbated by the banks' year-end book-balancing. 2/ SELF-FULFILLING PROPHECIES Sovereign...
Finnish Finance Minister Says “Obvious”; Ireland Needs Support
BRUSSELS (Reuters) - Finnish Finance Minister Jyrki Katainen said on Wednesday it was "quite obvious" that Ireland would need outside financial help, but an official review of the country's financial health would be concluded in "a few days or weeks." EU finance ministers agreed on Tuesday that a joint IMF, ECB, European Commission mission would go to Ireland this week to assess the health of its state finances and banks, after mounting turmoil in Irish debt markets. "For me personally, it is difficult to believe that Ireland wouldn't need any outside financial help. The purpose of the mission is to find the right ways to restructure the financial sector and make it healthier than it is at the moment," Katainen said. "I think that it's quite obvious that some outside help is needed but we haven't decided anything concerning this yet... I think the process will be quite quick and after a few days or weeks we will know more." Katainen said the mission...
Nikkei Edges Lower After Hitting 5-Mth High on Yen
By Aiko Hayashi and Chikafumi Hodo TOKYO, Nov 16 (Reuters) - Japan's Nikkei ended slightly lower on Tuesday, losing steam after touching a five-month intraday high as profit-taking set in amid worries over the outlook for corporate profits and the impact of tighter credit in China. The Nikkei, a laggard compared to other major stock markets this year, has been on an upward trend since the start of the month, helped by the Federal Reserve's quantitative easing that has brought expectations of increased liquidity for global shares. The benchmark now faces resistance at its 200-day moving average, around 9,923. Market participants say foreign investors have been active buyers of Japanese shares since last week, especially after the dollar reclaimed some ground against the yen. Selling of Japanese government bonds has also benefited the domestic stock market, with JGB yields climbing on the growing view that a Fed-inspired bull run in U.S. Treasuries was over. "Foreign institutions, such as pension funds, have been allocating part of their...
U.S. Oil Dips on Dollar Rise, Gasoline Reversal
By Robert Gibbons NEW YORK (Reuters) - U.S. oil prices shed early gains to end slightly lower on Monday, weighed down by extended gains in the dollar on higher Treasury yields and a slide in gasoline on speculation about a major refinery restart. The late losses amid tepid trading volume and mixed economic data deepened oil's 3.3 percent dive on Friday, when anxiety over a possible Chinese interest rate rise triggered the biggest commodities rout in a year and a half, pulling oil off a 25-month high. U.S. crude for December delivery
Asia Asset Bubble Monitor-Credit Booming, But Perps Show Limits
y Prakash Chakravarti and David Lau HONG KONG, Nov 17 (Reuters) - Asia's booming credit markets are not yet bubbling over, with investors drawing a line at exotic perpetual bonds, though some equity valuations in red-hot Southeast Asian bourses appear stretched. Asia ex-Japan, with its favourable economic fundamentals and stable balance sheets, has been a magnet for foreign capital, one whose attraction have been made all the more powerful by expectations that money will stay cheap in advanced economies for a long time. A growing number of emerging economies in Asia and elsewhere in the world have been imposing or considering capital controls to keep the influx of speculative money from feeding potentially destabilising bubbles and complicating policymaking even further. Visiting bankers from the West have been struck by the boldness of Asia's nouveau riche, who last month bought three bottles of 141-year-old Chateau Lafite Rothschild wine at Sotheby's in Hong Kong for $232,692 each, nearly triple the highest estimate. It's no surprise then that...
Top Democrat Signals Deal on Bush-Era Tax Cuts
By Richard Cowan and Kim Dixon WASHINGTON (Reuters) - The top Democrat in the Senate said on Tuesday he was willing to consider a temporary tax cut extension for all income levels, a step that could pave the way for a possible deal with Republicans on Bush-era tax cuts. "This is something we will take a look at," Senate Majority Leader Harry Reid told reporters, referring to a plan to extend all the cuts for two or three years. Many leading Democrats like Reid previously opposed continuing tax cuts for the wealthiest, while they want a permanent extension of existing tax cuts for those individuals making $200,000 or less annually. Reid and his fellow Democrats will hold a second day of closed meetings on Wednesday to talk about upcoming legislation. While agreeing to look at extending all current tax cuts, Reid said he personally opposed the idea. "For people to say that these upper-income tax cuts affect most small business is simply not true. My...
Best Buy Says Holiday Shoppers May Buy at Last Minute
By Alex Dobuzinskis HUNTINGTON BEACH, Calif. Reuters - Consumers might delay this year's holiday shopping until the last minute because of the sluggish economy, the head of consumer electronics retailer Best Buy Co Inc <BBY.N> said. Brian Dunn, the chief executive officer of Best Buy, also said he expects strong sales for e-readers, smartphones, tablet computers such as the Apple Inc <AAPL.O> iPad, and gaming products like Microsoft Corp's <MSFT.O> Kinect and Sony Corp's <6758.T> Playstation Move. "I think it's (holiday spending) going to be exciting, but I think it will be late this year," Dunn told Reuters on the sidelines of an Intel Corp <INTC.O> investor event. He said the slow economy was still affecting consumers. "I think people will sort of take a just-in-time approach to it," he said on Tuesday. Best Buy will offer free shipping this holiday season, he said, following the lead of Wal-Mart Stores Inc <WMT.N>. "I think they got the jump on us by a little bit, but you know..
Stocks End Flat
By Leah Schnurr NEW YORK (Reuters) - Investors were unable to recoup recent losses in the market on Wednesday, suggesting the struggles recently experienced by stocks are far from over. A late-day selloff did not inspire confidence. Volume was light and early buying faded, as financials led the market downward. The S&P 500 is down nearly 4 percent since November 5 after rallying nearly 13 percent in September and October. "I think the market is in a deterioration trend. It's worrisome at this point, considering that we had a selloff yesterday with pretty big volume and poor advance-decline numbers," said Frank Gretz, market analyst and technician at the Shields & Co brokerage in New York. "The market is certainly vulnerable, and I think it is in fact headed for a correction." Financials sagged after the Federal Reserve said it will evaluate the ability of 19 large financial institutions to withstand losses in "adverse" economic scenarios. The announcement accompanied guidance on potential dividend increases, first reported on...
Obama Honors Buffett, Bush Senior, Germany’s Merkel
By Alister Bull WASHINGTON (Reuters) - President Barack Obama on Wednesday named billionaire Warren Buffett a winner of the 2010 Medal of Freedom, along with former President George H.W. Bush and German Chancellor Angela Merkel. "These outstanding honorees come from a broad range of backgrounds and they've excelled in a broad range of fields, but all of them have lived extraordinary lives that have inspired us," Obama said in a statement. The president picked a total of 15 people for the 2010 award, the highest U.S. civilian honor, which will be presented at a White House ceremony early next year. In addition to Bush, other politicians named by Obama were civil rights champion Congressman John Lewis and Merkel, the first woman and first East German to serve as Chancellor of a unified Germany. The honor to Bush, the 41st U.S. president and a Republican, could be seen as a bipartisan gesture by Democrat Obama. Writer Maya Angelou, cellist Yo-Yo Ma, and murdered aid worker Doctor Tom...
GM Pulls Off Biggest U.S. IPO Ever
By Clare Baldwin and Soyoung Kim NEW YORK (Reuters) - General Motors Co <GM.UL> pulled off the biggest initial public offering in U.S. history on Wednesday, raising $20.1 billion after pricing shares at the top of the proposed range in response to huge investor demand. Including an option that would allow underwriters to sell more shares, expected to be exercised in coming days, GM looks set to raise $23.1 billion, making it the biggest initial public offering ever. "What was that statement that used to float around? What's good for GM is good for America? Well, I think in this case, what's good for GM is good for the American taxpayer," said Adrian Cronje, chief investment officer at Atlanta-based wealth management firm Balentine LLC. The strong response to the stock sale reflects a groundswell of investor confidence that GM is moving beyond its unpopular, taxpayer-funded bankruptcy in June 2009 with sharply lower costs and higher profit potential. The government's stake in GM will drop to...
Air France-KLM Raise Earning Forecast
Air France – KLM Group raised its earnings forecast for this year on new routes that witnessed higher demand from consumers. The company’s announcement helped push the share higher where the company’s targeting an operating profit of $408 million for the 12 months ending March 31, 2011. Four new routes will be open to each Asian, African and Middle Eastern destination by 2014, accordingly, raising the capacity for those regions by 6.5 percent. CEO Pierre-Henri Gourgeon said that “The main purpose of our development in China is to have a good part of their huge potential for air transport.” The company’s share rose by 5.10 percent in trading, adding €0.68 to trade at €13.90 a share.
More Shoppers at Malls on Black Friday Weekend
By Jon Lentz NEW YORK (Reuters) - As many as 138 million U.S. shoppers could be hunting for Black Friday bargains during the three days after Thanksgiving, according to a retail trade group survey released on Thursday. Nearly 60 million Americans plan to hit the stores, while an additional 78 million might join the crowds of shoppers, the National Retail Federation said. The total number of possible shoppers is 4 million more than forecast last year, when the NRF forecast 134 million Americans would be out shopping over the three-day weekend. The group does a follow-up survey to ascertain how many of those consumers actually did shop over the weekend, but it includes shoppers on Thanksgiving day. Black Friday, which falls on November 26, is a key date for retailers, representing the traditional post-Thanksgiving kickoff to the holiday shopping season. Retailers from Macy's Inc to Best Buy Co Inc try to lure shoppers through "door-buster" deals offering low prices on coveted gifts and the deals continue...
US Online Report Business News
NEW YORK (Reuters) - Expectations about Black Friday, when Americans traditionally get serious about holiday shopping, could sway stocks next week if it looks like the economy will get a pop from consumer spending. FRANKFURT (Reuters) - Federal Reserve Chairman Ben Bernanke hit back on Friday at critics of the U.S. central bank's bond-buying program and issued a thinly veiled attack on China's policy of keeping its currency on a leash. NEW YORK (Reuters) - Wells Fargo & Co <WFC.N> will pay Citigroup Inc <C.N> $100 million to settle multiple lawsuits over the contentious 2008 purchase of Wachovia Corp, closing another chapter in the receding financial crisis. LISBON/DUBLIN (Reuters) - French President Nicolas Sarkozy said on Saturday he expected Ireland to raise its corporate tax rate but added that an increase would not be a condition for any bailout. NEW YORK (Reuters) - Semiconductor shares rallied on Friday as robust revenue from Marvell Technologies buoyed the sector, but the market ended flat for the...
US Online Report Business News
NEW YORK (Reuters) - Expectations about Black Friday, when Americans traditionally get serious about holiday shopping, could sway stocks next week if it looks like the economy will get a pop from consumer spending. FRANKFURT (Reuters) - Federal Reserve Chairman Ben Bernanke hit back on Friday at critics of the U.S. central bank's bond-buying program and issued a thinly veiled attack on China's policy of keeping its currency on a leash. NEW YORK (Reuters) - Wells Fargo & Co <WFC.N> will pay Citigroup Inc <C.N> $100 million to settle multiple lawsuits over the contentious 2008 purchase of Wachovia Corp, closing another chapter in the receding financial crisis. LISBON/DUBLIN (Reuters) - French President Nicolas Sarkozy said on Saturday he expected Ireland to raise its corporate tax rate but added that an increase would not be a condition for any bailout. NEW YORK (Reuters) - Semiconductor shares rallied on Friday as robust revenue from Marvell Technologies buoyed the sector, but the market ended flat for the...
Irish Cabinet Meets on Fiscal Plan, Support Crumbles
By Jodie Ginsberg DUBLIN (Reuters) - The Irish cabinet meets on Sunday to rubberstamp a four-year program of spending cuts and tax measures that is expected to be published early next week and then be followed swiftly by an international financial bailout. Support for the Irish government has collapsed over its handling of the country's economic and financial crisis and is now at a record low: "You have lied, You have let us down. For Ireland's sake, go now" demanded the Sunday Independent newspaper under a front page picture of the cabinet. Public anger, already high at the prospect of looming job and welfare cuts, has reached boiling point after it became clear the government would need outside help. Officials from the International Monetary Fund and European Commission are in Dublin to thrash out an aid package to help the country cope with its struggling banks, whose huge liabilities have sent Irish borrowing costs soaring. That package is expected to be agreed next week once...
Black Friday Focus of Investors
By Caroline Valetkevitch NEW YORK (Reuters) - Expectations about Black Friday, when Americans traditionally get serious about holiday shopping, could sway stocks next week if it looks like the economy will get a pop from consumer spending. The outcome of talks to shape a bailout for Ireland could also move stocks, analysts said, but they cautioned that other highly indebted euro zone countries could still be a source of worry. Even though light volume will define trade during the holiday-shortened week of Thanksgiving Day on Thursday, investors will watch to see if retail sales appear strong enough to give the market a Santa Claus rally. The lighter-than-average volume expected next week could lead to exaggerated moves in the market after a week of sharp losses and advances. Further gains would resume an uptrend that began at the end of the summer, with the Standard & Poor's 500 index up 14 percent since August 31. The market was little changed this week and suffered losses the...
Toyota to Invest $700 Million for R&D in China
Toyota Motor Corp., which is the largest carmaker in Japan, while it's the world's largest automobile maker by sales and production, reported that the company will invest about 700 million American dollars in its first fully-fledged Research and Development base (R&D) in China, because the company intends to expand its production in China. Moreover, the Research and Development base will begin operations with the starting of the 2nd quarter of 2011, where R&D staff members are going to survey the Chinese auto markets. On the other hand, Toyota increased its full year earnings forecast, after the company's sales in Asia region and global car sales recovered, boosted the company to raise its first-half plan.
Euro Zone Finance Minsters in Conf. Call on Ireland at 1700 GMT
BRUSSELS, Nov 21 (Reuters) - Euro zone finance ministers will discuss Ireland's appliction for European Union financial help at a conference call on Sunday at 1700 GMT, but no concrete amounts will be discussed yet, a euro zone source said. Ireland's finance minister Brian Lenihan said earlier on Sunday he would recommend to the government at a cabinet meeting this afternoon to formally apply for support from the EU. The euro zone source said an Irish application "was on its way" and it would be discussed first by euro zone finance ministers in a conference call and then by all EU finance ministers at another call at 1800 GMT. "No amounts will be discussed today. The ministers will issue a statement tonight," the source said.
Five World Markets Themes in Coming Week
LONDON (Reuters) - Following are five big themes likely to dominate thinking of investors and traders in the coming week and the Reuters stories related to them. 1/ BRINKMANSHIP Peripheral euro zone issuers remain vulnerable to a further sell-off as Ireland keeps financial markets guessing over whether and when it will seal an aid deal with the European Union and IMF. While some sort of assistance is widely expected, the crisis is unlikely to be over. Fellow weakling Portugal is already bearing the brunt of fallout from Ireland's problems and its borrowing costs have jumped in recent weeks with some bond market vigilantes seeing it as the euro zone's next weakest link. Among pointers to the next phase of the crisis, Ireland holds a by-election, which some of Dublin's critics partly blame for its game of brinkmanship with the European Union, on Thursday, Nov. 25, and the Portuguese government is scheduled to pass the 2011 budget the following day. 2/ ECB EXIT QUANDARY The...
HSBC Wants Bigger Slice of China’s Interbank Bonds
By Clare Jim and Kelvin Soh HONG KONG (Reuters) - HSBC 0005.HK HSBA.L hopes to gain a bigger quota on China's interbank bond market to match growing demand for yuan transactions after completing its first few transactions there, an executive said. The bank's China unit also began trading in local credit default swaps (CDS) after this new derivative market emerged this month, David Liao, HSBC (China)'s head of China global markets said in an interview. "As trade volumes grow, we hope to get a corresponding increase in our quota so that deposits coming from yuan trade settlements can access a wider spectrum of investment channels," Liao said. "If there is an approval for a bigger quota (given to banks), that will assist the deployment of liquidity in Hong Kong and the overall offshore market." HSBC's Hong Kong unit is one of three foreign banks allowed to transact on the domestic interbond market, together with arch-rival Standard Chartered STAN.L 2888.HK and Industrial and Commercial Bank's 1398.HK 601398.SS...
US Online Report Business News
SINGAPORE (Reuters) - The dollar rose broadly, U.S. Treasuries gained and European and Asian shares and U.S. stock futures fell on Tuesday after a major exchange of artillery fire on the Korean peninsula. SAN FRANCISCO (Reuters) - Hewlett-Packard Co <HPQ.N> raised fiscal 2011 results forecasts and a solid debut by new CEO Leo Apotheker calmed investors nervous about his vision, sending the technology company's shares up 3 percent. PHILADELPHIA/NEW YORK (Reuters) - U.S. fashion retailer J Crew Group Inc <JCG.N> is close to an agreement to be acquired for $43.50 a share, or roughly $2.8 billion, by TPG Capital and Leonard Green & Partners, sources familiar with the deal said. SAN FRANCISCO (Reuters) - Wal-Mart Stores Inc <WMT.N> said it will match rivals' prices on Black Friday and Amazon.com <AMZN.O> said a new price-comparison app for the iPhone would highlight its own holiday deals, raising the stakes as the year's most important shopping season begins. OAKLAND, California (Reuters) - Oracle Corp's chief, Larry Ellison,...
Officials Begin Work on Irish Bailout Details
y Jodie Ginsberg DUBLIN (Reuters) - European and IMF officials will start thrashing out the details of a three-year bailout package for Ireland on Monday while the government puts the finishing touches to a 15 billion euro ($20.5 billion) austerity plan. The EU and the IMF agreed on Sunday to help bail out Ireland with loans -- expected to total 80 to 90 billion euros -- to tackle its banking and budget crisis. Officials hope the move will stabilize financial markets that have been selling Irish debt and prevent them losing confidence in other euro zone members, notably Portugal and Spain. Ireland's government, facing public anger over its handling of the crisis, announced plans last month for a package of cuts and tax increases aimed at bringing down a record budget deficit. But its borrowing costs continued to soar, making a bailout almost inevitable. A four-year fiscal austerity package is expected to contain plans for a new property tax, as well as cuts to benefits...
Lagarde: Private Sector Can Join Crisis Mechanism
PARIS, Nov 23 (Reuters) - Private sector participation in a European crisis resolution mechanism could take various forms, such as collective action clauses for bondholders or commitments by banks to roll over investments in countries at risk, France's economy minister said. "The mechanism of crisis resolution is under consideration," Christine Lagarde told parliament on Tuesday, in response to a question about what form how the private sector could participate in the mechanism due to take effect from 2013. "This participation of the private sector could take a series of different and varied forms, principally collective action clauses or notably the commitment of banks to keep their investment in countries at risk."
HP Raises 2011 Outlook
By Gabriel Madway SAN FRANCISCO (Reuters) - Hewlett-Packard Co <HPQ.N> raised fiscal 2011 results forecasts and a solid debut by new CEO Leo Apotheker calmed investors nervous about his vision, sending the technology company's shares up 3 percent. Strong commercial computer, server and storage sales spurred better-than-expected quarterly results for HP, easing fears that the No. 1 technology company by sales was distracted by internal turmoil. Former chief Mark Hurd departed in August after accusations of sexual harassment. HP, the world's No. 1 PC maker, shrugged off the government spending cuts that have plagued Cisco Systems Inc. <CSCO.O>. Apotheker, who took over November 1, reassured Wall Street by sounding a predictably confident note on HP's prospects. "He was solid. He did exactly what he needed to do," said Gleacher & Co analyst Brian Marshall. "Coupled with the strong financial performance, it made for a good quarter." Apotheker joked he may have set a world record for travel the past few weeks as he jetted around the...
Look to Sell South Korea and Favour Southeast Asia
By Krishna Kumar SYDNEY, Nov 24 (Reuters) - Investors have quickly come around to see the sell-off in South Korean markets after the North's attack as a buying opportunity, but beware of profit-taking in Asian markets heading into year-end. Fears of aggressive Chinese monetary tightening, Ireland's need for a debt bailout and the uncertainty around the Federal Reserve's second round of quantitative easing had already morphed into a sharp round of risk reduction. While Asian stocks and currencies have proved remarkably resilient, the latest confrontation on the Korean peninsula may be just the catalyst for an unwind of profitable positions. Asia ex-Japan markets have enjoyed stellar gains for the year, and prudent investors may start locking in profits if they have not done so already. Of course investors who still wish to embrace the Asian growth story can also consider shifting from the Korean markets to Southeast Asia and India -- and South Korea provides no shortage of reasons for doing so. Conflict in Korea on...
FBI Raids Send Warning to Hedge Funds
By Grant McCool NEW YORK (Reuters) - FBI raids on hedge funds were a sign that prosecutors feared evidence in a widening insider trading probe could be destroyed, but the dramatic daytime searches may also have been intended to shake up the secretive hedge fund world, legal experts said. Investigators most likely swooped down on the funds Monday in Connecticut and Massachusetts because they had a major concern that subpoenas for information would not be properly obeyed, lawyers and investigators said. The raids served another purpose: warning the broader financial industry that a serious prosecution effort was underway. "I think there is a desire to send a message to people who are not currently the target of criminal investigations that there is a cost to engaging in this type of potentially criminal behavior," said Ross Gaffney, a former FBI agent in Miami who is now a principal in the forensic consulting firm Gaffney Gallagher Philip. Gerald Lefcourt, past president of the National Association of Criminal...
If It’s Thanksgiving, You Must Be Shopping
By Brad Dorfman CHICAGO (Reuters) - Forget the turkey and the football -- if it's Thanksgiving, why aren't you shopping? U.S. retailers trying to squeeze every extra cent out of shoppers are opening for Thanksgiving on Thursday, trying to get a jump on the holiday shopping season. Among the retailers that will open on Thursday are Wal-Mart Stores Inc's U.S. discount stores, 850 of Gap Inc's Old Navy stores, as well as some of its Gap and Banana Republic stores; and Sears Holdings Corp's namesake department stores, and Kmart discount stores. For retailers, opening the stores amount to extra sales at the start of what is expected to be the best holiday shopping season since 2007 -- before falling home prices, tight credit and soaring unemployment forced consumers to cut spending. The holiday season is essential for many retailers, who depend on it for a big part of their profits for the year. But people shopping on Thursday will still only be a fraction of...
US Online Report Business News
NEW YORK (Reuters) - Wall Street rallied as stock investors put aside worries about swirling global problems on Wednesday, turning to improvement in the labor market and signs consumers are ready to open their wallets ahead of the biggest shopping day of the year. NEW YORK (Reuters) - An executive of a California research firm was arrested on Wednesday on securities fraud and conspiracy charges after U.S. prosecutors accused him of arranging for inside information to be leaked to hedge funds, the latest development in an investigation of the industry. CHICAGO (Reuters) - Boeing Co <BA.N> said on Wednesday foreign debris likely caused the fire on a 787 Dreamliner that brought test flights to a standstill, but has not yet determined how long finding and fixing the problem will add to the plane's testing and manufacturing schedule. WASHINGTON (Reuters) - New U.S. claims for jobless benefits hit their lowest level in more than two years last week while consumer spending rose for a...
Q+A-What Next in the Confrontation on the Korean Peninsula?
By Jeremy Laurence SEOUL, Nov 24 (Reuters) - China on Wednesday came under heavy pressure to tame its ally North Korea after the reclusive state attacked South Korea, with the United States trying to cool tension in the economically powerful region. Tuesday's artillery attack on a South Korean island killed two soldiers, sent scores of civilians fleeing and sparked a sell off in stock futures and the won in offshore trading. Futures for stocks and bonds have since recovered. WHAT WILL HAPPEN NEXT? Tuesday's barrage was the heaviest bombardment on the South since the Korean War ended in 1953. Tensions are running high in the region. But it is extremely unlikely that this marks the start of an escalating conflict that could lead to a major military confrontation between the two Koreas. For decades, North Korea has followed a strategy of trying to wring concessions from the international community through periodic provocations, carefully calibrated to raise geopolitical tensions without sparking full scale war. Provocations over the...
Weber Remarks on Stability Fund
European Central Bank council member, German Central Bank president and a possible candidate to replace ECB president Juan Claude Trichet stated that the European Stability Fund of $1.0 trillion may need to be increased in order to restore investor’s confidence in European bonds and markets. “Seven hundred and fifty billion should be enough to assure the markets,” Weber said, adding that “If not, it will have to be increased.” Spain and Portugal is seizing investors’ focus after Ireland acquired a €85.0 billion bailout from EU. With the focus on Spain, which the economy is almost as twice the size of Portugal, Greece and Ireland combined, raised speculations that the bailout fund isn’t large enough to rescue the deficit burdened countries in the European continent.
Eur/dlr set for deeper correction
LONDON, Nov 9 (Reuters) - Following is a selection of comments from analysts on important technical developments in the foreign exchange market. * EURO/DOLLAR: "Spike warns of more downside. With a high of $1.4283 the market has met all but the ideal target (1.44ish) of the bull triangle. The low weekly close, back into the triangle, is a clear warning that the August rise now has run its course and that a more profound correction/longer period of congestion/turnaround is at hand. Bearish divergences are also expected to help the pair lower. Support at $1.3734." * DOLLAR INDEX: "More upside seen near term. Falling short of the triangle target, holding the 2008 support line and creating a bullish, however not yet confirmed, divergence all makes us stand ready for more profit taking/stop loss buying near term. If RSI climbs above its recent reaction peak the bull divergence will be confirmed hence more upside potential to be released". * EURO/YEN: "Sellers responded ahead of the...
Sterling outpaces creaking euro, lags firm dollar
By Neal Armstrong LONDON, Nov 9 (Reuters) - Sterling rallied to its highest in nearly six weeks versus a struggling euro on Tuesday as peripheral debt concerns in the euro zone dogged the single currency, pushing the pair towards key technical support. The euro's losses deepened as worries about a political impasse in Dublin ahead of a key budget vote saw 10-year Irish bond yields IE10YT=TWEB shoot above 8 percent on Monday -- much higher than the cost of borrowing from the European Union's emergency fund. Euro/sterling EURGBP=D4 dropped below 86 pence on Tuesday, slipping to a near six-week low of 85.90. Technical analysts said the close below the 38.2 percent retracement of the August to October rally at 86.36 pence on Monday was a bearish sign, with the 200-day moving average AT 85.72 seen as support. "The euro is under pressure on peripheral debt concerns but I think it will be difficult to break 85.50," said Jeremy Stretch, head of currency strategy at CIBC. "Better...
Optimism brought losses for the Japanese yen
Global FX Brief Nov 16: Ireland RBA Statement And Inflation Concerns Dominate...
Bias to safety fx though specific rankings today have as much to do with specific news items. Strongest: CAD, USD, GBP, in that order, weakest JPY, AUD, EUR in that order. Key fx events thus far: higher UK CPI boosts GBP, higher US bond yields and EU worries bolster USD, weigh on GBP. RBA statement suggests rates to stay steady into 2011 weigh on the AUD. US PPI, TIC are key events coming later. US Dollar Daily Outlook: Up vs. all except slightly lower vs. the CAD, aided by better than expected retail figures (consumer spending is about 70% of GDP) and rising US bond rates that imply rising short term USD rates sooner than expected. The USD is giving up some of its gains vs. the EUR, GBP, and CHF thus far today. Euro Daily Outlook: Down vs. all but the JPY, AUD on assorted concerns about Ireland, Greece, and Portugal. Rising US bond yields also strengthen the USD and thus weaken... British Pound Live Rates
Update Time: 18 Nov 2010 15:01GMT INTRA-DAY USD/JPY OUTLOOK - +83.45+ Despite early rebound fm 83.10 to 83.36 in European morning session due to cross-selling in yen, as dlr's intra-day broad-based decline has pushed price lower, suggesting further sideways trading wud continue b4 prospect of another rise to 83.45. Hold long, stop at breakeven n only below 83.00/03 sup wud risk weakness twd 82.85. Rate: +83.45+ Strategy: +Target met+ Position: Long at 83.15 Objective: 83.45 Stop-Loss: Resistance: 83.60 / 83.99 / 84.26 Support: 83.03 / 82.85 / 82.71 ******************** Update Time: 18 Nov 2010 11:39GMT INTRA-DAY EUR/USD OUTLOOK - +1.3655+ Euro has ratcheted higher after early pullback fm European morning high of 1.3657 to 1.3614, near term upside bias is retained but abv said res needed to extend this week's corrective rise fm 1.3446 to 1.3670 shud is likely to hold on 1st testing. Trade fm long side, stop at breakeven n only below 1.3600 signals top is possibly made, 1.3566. Rate: +1.3655+ Strategy: +Target met+ Position: Long at 1.3615 Objective: 1.3655 Stop-Loss: Resistance: 1.3657/1.3670/1.3710 Support: 1.3612/1.3576/1.3546 ******************* Update Time: 18 Nov 2010 11:40GMT INTRA-DAY EUR/JPY OUTLOOK - +113.65+ As
Euro Targets $1.3360 Then $1.3080
LONDON, Nov 17 (Reuters) - Following is a selection of comments from analysts on important technical developments in the foreign exchange market. CMC MARKETS * EURO/DOLLAR: "The weakness in the single currency accelerated yesterday hitting our target of $1.3500 as the euro looks to be heading towards the $1.3360 level, which would be 38.2 percent retracement of the up move from the June lows at $1.1880 to the highs at $1.4280. Having broken and closed below the 50 day moving average at $1.3640 the emphasis shifts even more firmly to the downside. Pullbacks should now be limited to this resistance at $1.3640 as and behind that at the $1.3800 pullback line resistance. A break of $1.3360 would then target $1.3080 which is the 50 percent retracement level of the same earlier up move." * DOLLAR/YEN: "While the US dollar continues to remain above the 50 day moving average at 82.70 yen, the risk remains for a larger move towards the 84.20 level. The...
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