Clearly someone has a LOT of money on their hands.
Harbin Pharmaceuticals Group's Sixth Pharmaceutical Plant published these photos of the plant on their website, which we found via chinaSMACK. Harbin is a state-owned enterprise.
The incredible opulence of the plant -- which is being compared to Versailles -- would seem to scream BUBBLE.
Ponder that while you check out the picture of Harbin's Pharmaceutical's palace plant.
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News Update!
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krisluke
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12-Sep-2011 22:13
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Oil remains confined within the main descending broadening wedge formation (colored in black) and below the 50 & 200 moving averages, suggesting that the overall downside bias remains valid. Within the recent couple of weeks the commodity formed an upside biased consolidation illustrated on chart by a rising wedge formation (colored in red). The wedge formation suggests that the overall downtrend may continue and this will be confirmed by breaching the patterns' support level near 84.50-84.00 area, however 83.00 has proven pivotal, therefore, we will confirm the bearishness for the rest of the week with a breach of 83.00. The trading range for the week is among the major support at 75.00 and the major resistance at 91.00. The short-term trend is to the downside with steady daily closing below 100.00 targeting 65.00 Support: 85.50, 84.50, 83.00, 81.20, 80.00 Resistance: 87.50, 89.00, 90.00, 91.00, 92.00 Recommendation Based on the charts and explanations above we recommend selling oil around 86.50 targeting 84.50 and 83.00. Stop loss with four-hour closing above 87.50 |
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krisluke
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12-Sep-2011 22:12
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Gold Prices fell to a low of $1832 per ounce just before Monday lunchtime in London - 1.3% down from Friday's close - as the US Dollar showed strength in the face of falling stock and commodity markets. The Euro fell to a seven-month low of $1.35 in early trade, while US, UK and German government bonds all gained. " The US Dollar's gains are probably more to do with renewed concerns over the possibility that Greece may default on its debt than with increased confidence in the US economy itself," said a Gold Bullion dealer here in London this morning. Silver Prices meantime fell to $40.86 per ounce - 1.3% down on last week's close. Yields on Greek government bonds continued to set new highs on Monday morning. The benchmark 10-Year yield breached 22%, while two year bonds were trading above 64%. Greece needs " about €2 billion and a bit," to cover its budget shortfall for 2011, Greek finance minister Evangelos Venizelos told reporters on Sunday. If it does not receive the next installment of its ongoing 2010 bailout, however, Greece will only have enough cash to last until mid-October, according to deputy finance minister Filippos Sachinidis. German magazine Der Spiegel reported on Saturday that the German finance ministry is preparing for a possible Greek default - as well as Greece potentially leaving the Euro. " Support for [Greece] appears to be shaking. The market is starting to think the worst could happen," says Katsunori Kitakura, chief dealer at Chuo Mitsui Trust and Banking. " [The] chances of some sort of default have increased," agrees one bond trader quoted by news agency Reuters. " Capital preservation is the main consideration right now," observes Fredrik Nerbrand, London-based head of global asset allocation at HSBC Holdings. " Owning risk is not really top of my agenda." Despite the apparent growing likelihood of a Greek default, " no European or American bank has, to my knowledge, marked the sovereign debt to market," warns Richard Bove, analyst at Rochdale Securities. " At some point, a 2008-style run on the debt of these institutions could cause a collapse [in the banking sector]." Three years ago this week Lehman Brothers filed for bankruptcy, while insurers American International Group (AIG) had to be bailed out. Gold Prices " should benefit from the scaling back of risk appetite on what appear to be rising fears of a Greek default, contagion to the rest of the periphery, and the impact on banks," reckons Edel Tully, precious metals strategist at UBS. European bank stocks were among the biggest stock market fallers this morning. Deutsche Bank, Germany's largest bank, fell 8.4%, while Commerzbank was down 8.2% and insurance company Allianz lost 5.7%. The DAX as a whole fell 3.5%. Elsewhere in Frankfurt, Juergen Stark, Germany's representative on the European Central Bank's governing council, unexpectedly resigned on Friday. Stark cited personal reasons for his departure - though it was widely reported that he was unhappy with the ECB's policy of buying distressed Eurozone government debt. " The debt crisis could be slowly chipping away at the ECB's anti-inflation credibility and Stark's shock resignation...could prove to be the biggest chip yet," says Steve Barrow, currency analyst at Standard Bank. Here in the UK, the Independent Commission on Banking - which was appointed to examine possible changes to UK banking regulation - published its report on Monday. The report recommends the creation of a " ring-fence" around retail banks - those that take deposits from individuals - that would prohibit them from engaging in activities as trading derivatives and underwriting share issues. Over in New York, the number of noncommercial - so-called speculative - long positions held by Gold Futures and options traders on New York's Comex rose 3.6% in the week ended 6 September - while the number of speculative short positions grew 1.9% - according to data from the Commodities Futures Trading Commission. " After four weeks of successive falls in speculative longs, the past week’s increase points to a market that is perhaps turning more bullish on gold," says Standard Bank commodities strategist Marc Ground. " In addition, with speculative shorts still below last year's average...gold looks less vulnerable than it did three weeks ago." |
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krisluke
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12-Sep-2011 22:10
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European crisis spurs flight to safety
* Europe's fiscal woes fuel safety bid for dollar, debt * Euro slides on Greece fears, hits 10-year low vs yen * Oil drops more than $2 on debt, growth worries * European shares hit 2-year low on euro zone crisis (Adds opening of U.S. markets, changes byline, dateline previous LONDON) By Herbert Lash NEW YORK, Sept 12 (Reuters) - Fears of a Greek default and credit contagion ripped through markets on Monday, tumbling European shares to their lowest in more than two years and the euro to a seven-month low against the U.S. dollar. Concerns that Moody's Investors Service could downgrade the credit-worthiness of French banks and the lack of a solution to Greece's debt problem undermined investor confidence and the appetite for risk. For details see: [ID:nS1E78B08A] Safe-haven buying briefly pushed yields on benchmark U.S. Treasury 10-year notes to lows last seen at least six decades ago and 10-year Bund yields fell to 1.73 percent. The euro later rebounded from its low to trade up almost 0.8 percent at $1.3673 to the dollar. Shares of French banks Societe Generale < SOGN.PA> , Credit Agricole < CAGR.PA> and BNP Paribas < BNPP.PA> slumped about 10 percent amid expectations of an imminent downgrade, due largely to their exposure to Greek bonds. [ID:nL5E7KC1TV] Adding to the gloom was the failure of a weekend meeting of finance ministers from the Group of Seven industrialized nations to generate fresh proposals for boosting global growth. [ID:nN1E78728T] [ID:nL5E7KC0KE] " There was hope there would be something more resolute out of the G7 meeting over the weekend," said Ian King, head of international equities at Legal & General, which has 356 billion pounds ($566 billion) under management. The pan-European FTSEurofirst 300 < .FTEU3> index of top shares fell 3.2 percent, after earlier slumping to 883.04, its lowest since July 2009. The index has lost more than 20 percent in 2011. MSCI's all-country world equity index < .MIWD00000PUS> fell 1.5 percent. On Wall Street the Dow Jones industrial average < .DJI> was down 16.87 points, or 0.15 percent, to 10,975.26. The Standard & Poor's 500 Index < .SPX> shed 0.06 points, or 0.01 percent, to 1,154.17. The Nasdaq Composite Index < .IXIC> gained 12.13 points, or 0.49 percent, to 2,480.12. Global central bankers meeting in Basel, Switzerland said economic growth is slowing but there is no sign of a worldwide recession and they had no plans for concerted action. [ID:nL5E7KC1XY] Brent crude oil < LCOc1> fell as much as $1.60 per barrel to a low of $110.17. U.S. crude < CLc1> slid 72 cents to a low of $86.52. " There are fears about the slowing economy, fears about the debt, fears about default and we are not having coordinated multilateral actions being taken we are having the opposite," said analyst Robin Bhar of Credit Agricole. U.S. government debt prices were lower. The benchmark 10-year U.S. Treasury note < US10YT=RR> was down 5/32 in price to yield 1.93 percent. Against the yen, the euro fell to 103.90 yen < EURJPY=> , its lowest in 10 years, according to Reuters data. The dollar was down against a basket of major currencies, with the U.S. Dollar Index < .DXY> off 0.10 percent at 77.118. Against the Japanese yen, the dollar < JPY=> was down 0.48 percent at 77.18 as the Japanese currency benefitted from safe-haven buying. Spot gold prices < XAU=> fell $25.21 to $1,832.10 an ounce. (Reporting by Angela Moon and Emily Flitter in New York Marius Zaharia, Anirban Nag, Christopher Johnson and Brian Gorman in London Writing by Herbert Lash Editing by Chizu Nomiyama) |
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krisluke
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12-Sep-2011 21:56
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What To Expect From Tonight's GOP Debate The Republican presidential candidates will face off for the second time in as many weeks, participating in the CNN/Tea Party Express debate in Florida tonight. After a heated and exciting meeting last week that saw the top-tier narrow to just former Massachusetts Gov. Mitt Romney and Texas Gov. Rick Perry, tonight's event is poised to be equally significant.
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krisluke
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12-Sep-2011 21:54
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10 Things You Need To Know This Morning Good morning. Here's what you need to know.
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krisluke
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12-Sep-2011 21:52
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Now Greece Probably WILL Receive $8 Billion In Funding From ECB/EU/IMF Troika ECB President Jean-Claude Trichet just announced that Greece most likely will receive the next round of funding from the European Central Bank, European Union, and International Monetary Fund. Doubts about receiving this funding surfaced because of reports that Greece will not meet its deficit-reducing and privatization goals for the year. New plans for a real estate tax to bridge the gap could have placated inspectors. An investor note from Eurobank EFG said the levy will require property owners to pay around $7-14 per square meter of construction, will last two years, and will be implemented through increases in electricity bills. Trichet's announcement could quiet markets squirming over the possibility of Greek default. That being said, the big task at hand is getting the rest of Europe to approve the completely new bailout agreed to in July. This positive affirmation from the troika implies that Greece's economic reforms have been adequate, and it could help Greece's case a little bit among its neighbors. |
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krisluke
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12-Sep-2011 21:49
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GREECE: Here's What's Happening Right Now If you're just waking up, or perhaps just tuning into the Greek story, here's a quick refresher of what's going on right now... The bottom line is that Greece is about to run out of money. Officials told Reuters today that it can only last until October without receiving its next bailout. Will it get that bailout? Right now the market is answering that question with a resounding " no." The easiest way to see that is to look at the yield on short-term Greek debt, which is exploding. What's more, if you look at the headlines out of Germany, you're seeing a lot about preparations for default, and the desire to see an orderly default. It's as if the non-default outcome isn't even being talked about. Still, officially, the plan is for Greece to get bailed out. This weekend Prime Minister George Papandreou gave a speech on economic reforms that certainly sounded like it was coming from the head of a country determined to stay in the Eurozone and avoid default. At the same time, the country's finance minister outlined brand new emergency taxes to make its budget goals. So what's next? Officially, the Troika (inspectors from the EU, IMF, and ECB) are in the process of determining whether Greece is making its promised reforms. If it finds that Greece isn't in compliance, then that's endgame. No aid (probably). If it is in compliance, then theoretically the rest of Europe can go ahead and vote on expansion of the EFSF and aid to Greece, but again, even that's not a sure thing. And in the meantime, European bank stocks are getting killed due to all of the above. UPDATE: It sounds like Greece probably WILL get approval from the Troika for its next bailout tranche. |
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krisluke
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12-Sep-2011 21:48
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There's One Bit Of Actual Good News This Morning... The one bit of actual good news this morning comes from China. It's trade gap in August came in much narrower than expected amid booming demand. Here's Nomura's comment: China's import and export growth both surprised on the upside in August. Because of a surge in imports, the trade surplus narrowed sharply to US$17.7bn from US$31.4bn. The strong rebound in nominal import growth reinforces most other activity data, suggesting that the economy is experiencing only a gentle slowdown. The details suggest that the rebound was not simply due to higher import prices. Indeed, the volume of iron ore imports rose by 32%, y-o-y in August, and import volumes of big-ticket items like cars and airplanes grew by 38% and 43%, respectively. We believe this strong domestic demand will help to support an economic soft landing in the coming months. New loans in August climbed to a higher-than-expected RMB548.5bn from RMB492.6bn in July. August M2 growth slowed to 13.5% from 14.7%. The decline of M2 growth appeared to have been largely driven by lower FX purchases by the PBOC in August, which were due to the narrowed trade surplus.
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krisluke
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12-Sep-2011 21:45
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Obama To Reveal How He's Paying For His Jobs Plan Today President Barack Obama will formally present his $447 billion jobs plan to Congress today, after a speech from the White House encouraging to pass the bill. Obama unveiled his proposal in broad strokes to a Joint Session of Congress on Thursday night, asking them to " pass this bill" . He will speak from the Rose Garden at 10:40 this morning to encourage Congress to pass his plan. Obama promised that the American Jobs Act would include spending cuts or revenue increases to offset the steep price tag — saying he would push to end corporate tax loopholes and raise taxes on the wealthy to pay for his plan to jump-start the economy. These specifics will be outlined in the bill Obama will present to lawmakers this evening. Later in the week, Obama will travel to Ohio and North Carolina to build public support for the plan. In a speech on Friday, Obama encouraged Americans to contact congressional lawmakers and encourage them to back his bill. The House Republican leadership informed Obama in a letter that they do not expect him to make his proposals an " as an all-or-nothing proposition," adding that they will change it to make it " more impactful or effective" as they see fit. Moody's Economist Mark Zandi estimated the bill would create 1.9 million jobs and increase GDP by 2 percent.  Image: AP Photo/Paul Sancya |
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krisluke
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12-Sep-2011 21:43
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OMG! Check Out The Crazy Palace Built By A Chinese State-Owned Enterprise Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK  Image: chinaSMACK |
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krisluke
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12-Sep-2011 21:40
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Wall St opens lower on euro zone debt fears
NEW YORK, Sept 12 (Reuters) - U.S. stocks indexes opened lower on Monday as fears of a credit rating downgrade of French banks and the lack of a solution to Greece's debt problem heightened concerns about the euro zone's debt crisis.
Concerns that the credit crisis in Europe may threaten to spill over into U.S. banks have been pressuring Wall Street for several months, sending shares of major banks to their historical lows in recent weeks. The Dow Jones industrial average was down 116.97 points, or 1.06 percent, at 10,875.16. The Standard & Poor's 500 Index was down 11.59 points, or 1.00 percent, at 1,142.64. The Nasdaq Composite Index was down 21.14 points, or 0.86 percent, at 2,446.85. (Reporting by Ryan Vlastelica Editing by Padraic Cassidy) |
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krisluke
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12-Sep-2011 21:29
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Credit risk in the European banking system has surged to all time high as the market priced in more than 90% chance that Greek debts will default. Investors' fears intensified despite government's denial of imminent default and commitment to austerity measures. The situation has sent other peripheral yield spreads much higher. As far as core economies are concerned, French banks are at risk of being downgraded by Moody's. The sudden resignation of ECB executive member Jürgen Stark did nothing but aggravated the situation. It's believed the departure was due to Stark's disfavor over ECB's unilateral asset buying plan. The slump of stock markets in Asia as a catch-up with US' selloff last Friday has led oil prices lower. Gold also slipped as the US dollar gained grounds, Over the weekend, Greece announced imposition of a new property tax policy on top of existing measures. The new system would mean a levy of 4 euro/sq meter over the next 2 years and is expected to raise around 400B euro. In addition, officials will be subject salary cut by a month. Yet, these measures failed to restore market confidence. The EU/IMF/ECB will return to Athens in coming days to discuss about the new tranche of funding to Greece. The troika aimed to complete the work by the end of September. EU Economic and Monetary Affairs Commissioner Olli Rehn said he welcomed the move but stressed that Greece 'needs to meet the agreed fiscal targets and implement the agreed structural reforms to fulfill the conditionality and ensure funding from its partners'. New source said that Germany has prepared to give up funding Greece. Officials in the coalition government were said to have debates on ways to shore up German banks in case of a Greece default. Philipp Roesle, the German vice chancellor and also the economy minister, raised the possibility of a Greece default by stating the 'worst-case scenario' in Europe is 'an orderly default for Greece'. The default may help re-establish 'the affected state's ability to function, perhaps with a temporary restriction of its sovereign rights'. Elsewhere in the Eurozone, largest banks in France, including BNP Paribas, Societe Generale and Credit Agricole, may be downgraded by Moody's as soon as this week due to their huge holdings in Greek debts. In June, the rating agency placed the banks on review for 'the potential for inconsistency between the impact of a possible Greek default or restructuring and current rating levels'. A result will likely be believed later in the week. All these events are detrimental to the Eurozone's outlook as well as market sentiment. The euro, and risky assets, will likely get dumped in the near-term unless extremely encouraging macroeconomic events occur. |
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krisluke
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12-Sep-2011 21:28
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Oil prices remained under pressure in European session, being dragged down by the vulnerable stock markets due to Greece’s woes. The front-month contract for WTI crude oil fell for the third consecutive day, slipping to 4 day low at 85 at one point, while the equivalent Brent crude contract weakened to as low as 110.42. Dependent on the general market sentiment, oil prices are susceptible to further decline in the near-term. However, futures curve structure suggests that the demand/supply outlook in the market remains tight. The chart below shows that Brent has returned to backwardation (crude for nearby delivery costs more than crude for the future) in recent months. The same situation is experienced by Oman crude in August. Although WTI crude has remained in contango but time-spreads have also strengthened. We are impressed by the fact that time-spreads strengthened during the period of IEA’s release 60 mmb of emergency reserve with the US responsible for half of it. 
According to the latest US inventory report, US SPR has fallen 29.59 mmb in the 7 weeks beginning July 22. During the period, total crude oil and SPR inventory dropped -28.23 mmb, signaling little change in crude inventory despite release of the SPR. The phenomenon indicates that the release of the SPR has been absorbed by the market. That said, tightness in oil fundamentals was probably due to the decline in imports, instead of strength in demand. Note that net imports for crude oil dropped more than -1 mmb over the past few weeks. In Europe, oil supply disruption persists. While Libya’s oil is expected to return to the market in coming months, only about half of the original production will be resumed by the end of 2012 and full production of 1.6M bpd may not be seen 3 years later. Shell's force majeure on Bonny light exports and sanctions on Syria only exacerbated the demand/supply balance. Commitments of Traders:With the exception of natural gas, speculators were bullish on the energy complex in the week ended September 2. Net length for crude oil futures soared to 165 142 contracts. Net lengths for heating oil futures and gasoline futures rose to 15 575 and 53 774 contracts respectively. Net short for natural gas futures increased to 183 017 contracts during the week. Speculators were bullish on the precious metal complex. Net length for gold futures climbed for the first time in 5 weeks, gaining +7 424 to 184 371 contracts. Net length for silver futures also rose to 27 207 contracts. For PGMs, net lengths for platinum and palladium futures increased to 28 008 and 12 637 contracts, respectively, during the week. 
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krisluke
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12-Sep-2011 20:25
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krisluke
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11-Sep-2011 21:14
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The Singapore Civil Defence Force arrived within minutes to put out the blaze. (AFP file photo) A Singapore Civil Defence Force (SCDF) ambulance exploded in an open-air carpark in Geylang Saturday afternoon, burning seven vehicles around it. |
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krisluke
Supreme |
11-Sep-2011 21:10
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Singapore - The Singapore stock exchange could approve the listing of debt-plagued English Premier League champions Manchester United as early as next Thursday a media report said Saturday The club owned by the US-based Glazer family hopes to raise 1 billion dollars by tapping its huge fan base in Asia estimated at more than 190 million supporters to ease its financial burdens Lawyers involved in the listing were preparing the paperwork to get the nod from Singapore Exchange Ltd next week the Straits Times newspaper quoted sources as saying Earlier reports speculated that the club planned to list in Singapore with a two-tier share structure that would minimize the influence of new shareholders and ensure that the Glazer family which is unpopular with many fans retained control The Singapore exchange said it does not comment on any individual company or entity. |
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krisluke
Supreme |
11-Sep-2011 21:07
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Marseille lays bare G7 differences, lack of policy room
* G7 meeting highlights differences between Europe, U.S.
* Statement a list of policy constraints, economist says By Daniel Flynn and Annika Breidthardt MARSEILLE, Sept 10 (Reuters) - Vague pledges and a lack of action by G7 countries underscored differences between Europe and the United States and a lack of room to manoeuvre in the face of the worst loss of confidence since the credit crisis. After weeks of market turbulence, finance ministers and central bankers from the Group of Seven industrialised nations pledged a coordinated response on Friday to the global slowdown, but offered no specific steps and differed in emphasis on Europe's debt crisis. While the United States called on Europe's biggest economies to provide " unequivocal" support to struggling peripheral states to overcome a debt crisis that is crippling the world recovery, euro zone paymaster Germany said the priority was cutting deficits. " There is no sense of direction, which is entirely expected given that there is no agreement on the path for fiscal policy between the U.S. and Europe, and there is no agreement on the path of monetary policy either," said Gilles Moec, senior economist with Deutsche Bank in London. " In a way, it's a communique which is a list of constraints which policymakers are facing," he said of a final statement host country France pushed other reluctant G7 members to produce at the end of talks that overran by nearly two hours. Despite initially saying there was no need for a communique, France changed its tune to send a signal of unity to markets after Wall Street slumped nearly 3 percent on Friday. " The communique was at the insistence of the French but in practice it's meaningless. We can't even agree on the problems so how can we agree on an analysis," said one G7 delegate. Already battered markets were roiled by Friday's resignation of the top German official at the European Central Bank in protest at the bank's bond buying programme, laying bare divisions within the European policymaking sphere just as the G7 illustrated global differences. NO TALK OF COORDINATED STIMULUS The final " terms of reference" , less binding than a formal G7 communique, acknowledged tensions in markets and clear signs of a slowdown in global growth. " We are committed to a strong and coordinated international international response to these challenges," it said, but provided no further specifics beyond urging growth-friendly fiscal adjustments. The statement voiced support for U.S. President Barack Obama's $447 billion jobs plan and for Europe's July 21 decision to beef up the powers of the euro zone's EFSF bailout facility, but papered over cracks in policy differences. Speculation had swirled in some quarters that G7 central bankers might flag a coordinated monetary stimulus involving quantitative easing, but a second G7 delegate said that possibility was not even discussed. " It is not realistic for the market to expect us to put hundreds of billions on the table every time we meet," he said. Geithner told Friday's meeting he was confident the U.S. government would get at least a substantial part of Obama's jobs package through Congress despite Republican resistance, another delegate said. But U.S. officials said most of the meeting was devoted to Europe's debt crisis and the health of its banks. Seeking to allay fears over European bank funding, ECB President Jean-Claude Trichet told the meeting European banks held some $5 trillion in collateral eligible for access to central bank funds. While Japan said it had received G7 blessing for unilateral foreign exchange action, delegates said the issue had not really even been discussed in depth by the meeting, and the statement had simply used the wording of previous statements. (Additional reporting by Giselda Vagnoni Editing by Catherine Bremer/Mike Peacock) |
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krisluke
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11-Sep-2011 21:05
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Japan sees G7 " understanding" on forex action
* Yen issue overshadowed at G7 by worries on euro zone
* G7 delegates showed little resistance to Japan action * Less easy for Japan to get support for joint intervention By Tetsushi Kajimoto MARSEILLE, France, Sept 10 (Reuters) - The yen took a back seat at the Group of Seven finance ministers' meeting, which grappled with Europe's debt crisis and global economic slowdown, but Japan said it met little resistance to further intervention. The G7 economic powers gave a muted reaction to Japan's call to endorse its right to unilateral action against speculators pushing up its currency, but Japanese officials and some analysts said the subdued response suggests the G7 could let Japan intervene in the market again if needed. " We intervened in August and I told the (G7) that we will continue to watch the situation closely and flexibly, and take decisive steps against speculative moves," Finance Minister Jun Azumi told a news conference late on Friday after the G7 talks. " No countries voiced opinions against our explanation. I believe we gained understanding towards our view on currencies." A senior finance ministry official said the G7 had not ruled out the chance of solo intervention by Japan. In the run-up to the meeting, Japanese officials vowed to seek G7 understanding on Tokyo's intentions to counter yen rises that threaten to derail a recovery from the March earthquake which tipped the world's No. 3 economy into recession. " Japan could not ask for more as it just avoided blunt criticism from other countries against its past intervention," said Masafumi Yamamoto, Japan chief forex strategist at Barclays Capital in Tokyo. On Saturday, Azumi told reporters that U.S. Treasury Secretary Timothy Geithner had not voiced opposition in an early morning bilateral meeting. " He was smiling but did not refute. He appears to understand the situation," Azumi said. LITTLE CHANCE OF CONCERTED INTERVENTION Japan has conducted three currency interventions over the past year -- one rare co-ordinated action with the G7 shortly after the March 11 disaster and two solo moves. Yamamoto said further intervention to curb excess volatility may not meet international opposition as long as it was not done frequently or aimed at guiding currency rates towards specific levels as Switzerland did this week by setting an exchange cap on its soaring currency. Japan's economy is now recovering from recession, while Europe and the United States face a slowdown, so Tokyo has been having a hard time convincing its G7 counterparts of the need for intervention. European Central Bank President Jean-Claude Trichet said early last month that currency interventions " have to be made on the basis of a multilateral consensus," signalling displeasure at Japan's solo action on August 4. In Marseille, Japanese officials including Bank of Japan Governor Masaaki Shirakawa blamed the yen's rise on global economic woes that have been amplified by Europe's debt crisis -- the central topic of debate at the G7 talks. " Such an argument may have discouraged Europe from being critical of Japan's intervention. As a result, Japan may have gained a free hand in intervening in the currency market," said Takahide Kiuchi, chief economist at Nomura Securities. Japan faces higher hurdles persuading the G7 of the need for a joint intervention, which is seen as more effective in curbing excess currency moves. On Friday, the G7 issued a statement that said exchange rates should be determined by markets and pledged: " We will consult closely in regard to actions in exchange markets and would cooperate as appropriate." " The G7 is not in a situation where it needs to do something about currencies as it focuses on how to balance public finances while facing slowing economy," said Barclay's Yamamoto. " The foreign exchange market is reflecting debt problems in the West but it is not causing problems. So G7 must be feeling there's no use dealing with currencies to resolve the market situation." (Editing by Catherine Bremer/Mike Peacock) |
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krisluke
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11-Sep-2011 21:04
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Australia shares inch higher, luke-warm on Obama jobs plan
(Adds comment, details)
SYDNEY, Sept 9 (Reuters) - Australian shares rose 0.16 percent on Friday, having largely erased early gains as investors took only mild encouragement from President Barack Obama's $447 billion jobs package. Obama unveiled a $447 billion package of tax cuts and new spending to revive a stalled job market but he faces an uphill fight with Republicans to see the plan through. " It's been interesting because the Aussie market was the first market to react to Obama's speech and it reacted positively," said Colin Whitehead, analyst at Fat Phophets. " If we do get Congress putting this through pretty quickly without too much bickering and childish behaviour then that's going to be a step in the right direction," he added. Gains in some index heavyweights, including Australia's big four banks and Telstra , helped tip the market into positive territory, with many investors sidelined. Gold Miner Newcrest closed 0.78 percent higher on the back of strong gold prices. Australia's benchmark S& P/ASX 200 index had gained by as much as 1.0 percent before ending the day just 6.7 points ahead at 4,194.7, according to the latest data. New Zealand's benchmark NZX 50 index rose 0.48 percent to 3,323.93. Wholesaler Metcash closed down 0.71 percent at A$4.19 after the competition regulator said it would appeal a court ruling that cleared Metcash's bid for an Australian supermarket chain from South Africa's Pick n Pay . Austar United Communications slumped on news of the Metcash appeal, down 7 percent as investors worried that the regulator could also take aim at Foxtel's offer for Austar. Foster's Group rose 1.24 percent to A$4.91 as SABMiller looks set to launch its formal takeover for the brewer within days. Australian department store chains Myer and David Jones rose 1.8 percent and 1 percent respectively. |
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Egypt increases security after Israel embassy violence
Egyptian army soldiers stand guard to stave away demonstrators attempting to come close to the Israeli embassy in Cairo
CAIRO (Reuters) - Security vehicles lined up near the Israeli embassy in Egypt on Sunday after violence there forced Israel to evacuate its ambassador and both sides said they wanted a return to normal diplomatic activities. Egypt's army rulers, who took over when Hosni Mubarak was ousted, have struggled to quell public fury against Israel since five Egyptian border guards were killed last month when Israel repelled cross-border raiders. Protesters marched on the embassy in an apartment block on the Nile on Friday, the second major flare-up since the shooting. They stormed the building and clashed with police through the night. Charred police vehicles still lay nearby. The United States criticised the violence and called on Egypt to protect the mission. Washington has given billions of dollars in military and other aid since 1979 when Egypt became the first Arab state to sign a peace treaty with Israel. " The security in front of the embassy has been enhanced," cabinet spokesman Mohamed Higazy told Reuters. " Returning back to normalcy is the objective for both sides." Israel said it was working with Egypt to send Ambassador Yitzhak Levanon back to Cairo soon. Prime Minister Benjamin Netanyahu said in statement said he wanted to ensure necessary security steps were in place for the envoy's return. About 16 trucks full of police and security, three buses of military police, two armoured personnel carriers and other vehicles were parked near the embassy on Sunday. There was no protest on Sunday and traffic passed smoothly through a road junction that a day before had been littered with broken concrete and debris from the clashes. Police had shot in the air and fired teargas to disperse protesters who also tore down a concrete barrier wall that Egypt's authorities erected to protect the embassy building. CRITICISM OF VIOLENCE Egypt said it would try those behind the violence swiftly in emergency state security courts. At least 19 people have been detained in connection with the incident, security sources said. Three people were killed and more than 1,000 injured. Many Egyptians sympathise with the sentiments of those demonstrating against Israel, but activists, politicians and ordinary citizens also criticised the violence. " I don't want him (the ambassador) to come back because Israel doesn't respect anyone, but if they are in our country, then we should be able to protect them," said Mohamed Kamhawy, 28, an engineer working two blocks from the embassy site. Ahmed Amr, 23, another engineer, said: " Tearing down the wall was right. They shouldn't have built it in the first place. But invading the embassy was wrong." Some Egyptians are frustrated that Egypt did not take sterner measures against Israel after the border shooting. At the time, Egypt said it would withdraw its ambassador but did not carry through with the threat. Israel has stopped short of apologising, saying it is still investigating the Egyptian deaths, which occurred during an operation against gunmen who had killed eight Israelis. Israel is finding itself increasingly at odds with formerly sympathetic states in the region. It is embroiled in a feud with Turkey, once the closest of its few Muslim allies, over an Israeli raid last year that killed nine Turks on a flotilla bound for Gaza. Egypt's ties with Israel, though never warm, were a pillar of Mubarak's foreign policy and buttressed his claim to be a regional mediator. Under Mubarak, who was ousted on February 11, displays of hostility to Israel were crushed by force. |
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