Latest Forum Topics / Straits Times Index | Post Reply |
News Update!
|
|
krisluke
Supreme |
07-May-2011 13:37
|
x 0
x 0 Alert Admin |
China to invest $115 billion in railways this year-Xinhua
BEIJING, May 7 (Reuters) - China will invest 745.5 billion yuan ($114.8 billion) in its railways in 2011, the official news agency Xinhua reported late on Friday, despite media reports that the budget would be cut following the sacking of the country's rail chief in March.
  Xinhua said China plans to lay 30,000 km of new tracks over the next five years, and investment is expected to reach 2.8 trillion yuan, 41.4 percent higher than the 2006-2010 period.   Domestic media reports had suggested China's railway budget would be slashed to around 400 billion yuan this year due to the fallout surrounding the dismissal of railway minister Liu Zhijun in March. [ID:nL3E7FT1UG]   Liu was accused of " serious disciplinary violations" , a phrase that normally denotes corruption, but officials were reported to be concerned about the speed and safety of China's ambitious rail construction plans.   The ministry, which has resisted calls to hive off its spending divisions into independent corporations, is believed to have racked up heavy debts. Local newspapers said in April that it was looking for ways to control spending and was likely to scale back or suspend new railway lines.   China spent 823 billion yuan on its railways in 2010, driven up by a 4 trillion yuan stimulus package aimed at boosting domestic demand following the global financial crisis. ($1 = 6.493 yuan) (Reporting by David Stanway, editing by Miral Fahmy) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
07-May-2011 13:36
|
x 0
x 0 Alert Admin |
Euro hits more than 2-week low on Greece concerns
  * Report Greece considering leaving FX bloc hits euro   * Greece denial of exit report has little impact (Recasts updates prices, adds comment, changes byline)   By Gertrude Chavez-Dreyfuss   NEW YORK, May 6 (Reuters) - The euro fell to its lowest in more than two weeks on Friday and headed for its worst week against the dollar since January after a German news report, later denied, suggested Greece had raised the possibility of leaving the euro zone.   Spiegel Online reported euro zone finance ministers were meeting in Luxembourg on Friday to discuss Greece, including the issue of its possible exit from the currency bloc. Greece, through its finance ministry, later denied it was considering leaving the euro zone.   The Greece headlines though were enough to send investors further unwinding their long positions on the euro, which hit a low of $1.43500, its weakest level since April 20 on electronic trading platform EBS.   " To me, the leak of this story tells me that the Greeks are not happy with the terms they are getting (from the European Union and International Monetary Fund) and are attempting to put pressure on the other parties," said Andy Busch, currency and public policy strategist at BMO Capital Markets in Chicago.   " In a market that already is selling Euros due to the ECB's (European Central Bank's) dovish statement, the (euro) is getting hit hard and isn't likely to find a bottom for some time ... even if there are denials."   In early afternoon New York trading, the euro traded 1.2 percent lower at $1.43714, further retreating from a 17-month peak of $1.49404 scaled on Wednesday. With weekly losses of 3.2 percent, the euro was on pace for its worst week against the dollar since January.   Some traders, though, said the euro is still likely to gain against the dollar in the medium term, as euro zone interest rates are expected to rise much more quickly than those in the United States.   The euro fell nearly 2 percent on Thursday after the ECB President Jean-Claude Trichet signaled a rate hike was unlikely next month but left the door open for a move in July.   The dollar, meanwhile, also got a boost from data showing U.S. employers added 244,000 jobs last month, well above what economists had expected. That boosted U.S. bond yields and increased the dollar's appeal against the yen. It was last up 0.2 percent at 80.31 yen.   It also offered respite for a market that was trying to digest a recent run of weaker-than-expected U.S. data that some feared pointed to a slowdown in the pace of U.S. growth. |
Useful To Me Not Useful To Me | |
|
|
krisluke
Supreme |
07-May-2011 13:35
|
x 0
x 0 Alert Admin |
Dollar rises 1 pct to session peak vs Swiss franc
NEW YORK, May 6 (Reuters) - The dollar rose 1 percent against the Swiss franc to a session peak on Friday on growing risk aversion in markets after reports of a meeting to be held in Luxembourg to discuss the Greek debt crisis.
  The dollar rose as high as 0.8797 Swiss francs, according to Reuters data and was last at 0.8792 francs, up 1.1 percent.   German Finance Minister Wolfgang Schaeuble and his deputy Joerg Asmussen are in Luxembourg attending a meeting on Greece, a coalition source told Reuters on Friday. (Reporting by Nick Olivari Editing by James Dalgleish) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
07-May-2011 13:33
|
x 0
x 0 Alert Admin |
Euro posts worst week since January prospects dim
  * Report Greece considering leaving FX bloc hits euro   * Greece denial of euro zone exit has little impact   * Commodities, high-yielders in clearing-out process   * U.S. jobs report boosts dollar/yen (Updates prices, adds comment)   By Gertrude Chavez-Dreyfuss   NEW YORK, May 6 (Reuters) - The euro on Friday headed for its worst week against the dollar since January and further losses were seen as likely, as sovereign debt concerns reappeared after a German news report, later denied, suggested Greece had raised the possibility of leaving the euro zone.   Spiegel Online reported euro zone finance ministers were meeting in Luxembourg on Friday to discuss Greece, including the issue of its possible exit from the currency bloc. Greece, through its Finance Ministry, later denied it was considering leaving the euro zone.   The Greece headlines, however, were enough to send investors further unwinding long positions on the euro, which hit a low of $1.43150 -- its weakest level since April 19 on electronic trading platform EBS.   Market participants said the pullback in the euro was a natural correction in a currency that, at one point, had surged more than 10 percent so far this year.   " What's happening today also reflects the fact that markets are increasingly unwilling to hold long euro positions into the weekend," said Vassili Serebriakov, senior currency strategist, at Wells Fargo in New York.   " It really depends on how much substance there is behind the press reports (on Greece), but from a technical perspective, the drop below $1.45 is fairly significant. It's probably too early to say that the euro is back on a declining path, but a test of $1.50 is now off the table for the moment," he said.   In late afternoon New York trading, the euro traded lower at $1.43480, down 1.3 percent on the day, further retreating from a 17-month peak fo $1.49404 scaled on Wednesday. With losses for the week of 3.3 percent, the euro was on pace for its worst week against the dollar since January.   But some traders said the euro is still likely to gain against the dollar in the medium term, as euro zone rates are expected to rise more quickly than those in the United States.   Speculators said as much as they boosted short dollar bets to their highest in two months and increased long euro positions to their highest since July 2007, according to data from the Commodity Futures Trading Commission.   The euro fell nearly 2 percent on Thursday after ECB President Jean-Claude Trichet signaled a rate hike was unlikely next month, but left the door open for a move in July.   The dollar, meanwhile, also got a boost from data on Friday showing U.S. employers added 244,000 jobs last month, well above what economists had expected. That boosted U.S. bond yields and increased the dollar's appeal against the yen. It was last up 0.5 percent at 80.54 yen.   It also offered respite for a market that was trying to digest a recent run of weaker-than-expected U.S. data that some feared pointed to a slowdown in the pace of U.S. growth.   Concerns the world economy could also lose steam spurred a massive run for the exit on Thursday, sending oil into freefall and hurting high-yielding currencies such as the Australian dollar that are sensitive to commodity prices and the global growth outlook.   Thursday's commodity rout spurred traders to unwind trades financed with cheaply borrowed dollars and the greenback had its best day against major rivals since October.   Those moves were partly reversed on Friday, though oil dipped back under $100 a barrel and was down 2 percent after the Der Spiegel online report on Greece. It fell 10 percent on Thursday.   Meanwhile, the Australian dollar recouped losses to trade more than 1.2 percent higher at US$1.0703, although it was still some distance away from a near three-decade peak above US$1.10 hit early this week.   " It's a natural clearing-out process after being overbought," said Adrian Lee, president and chief investment officer, at Lee Overlay Partners, referring to Thursday's sell-off in commodities and high-yielding currencies.   " But commodities and high-yielders will be back. In fact, those long positions could be put back on next week. There's definitely pressure for these assets to appreciate because the global economy is definitely improving," Lee said in New York.   Lee Overlay has assets under management of $8.5 billion. |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
07-May-2011 13:32
|
x 0
x 0 Alert Admin |
Obama pays tribute to unit in bin Laden raid
U.S. President Barack Obama gives a challenge coin to Brigadier General Jeffrey Colt as he arrives to speak to troops at Fort Campbell in Kentucky
  FORT CAMPBELL, Kentucky (Reuters) - President Barack Obama, basking in U.S. public approval for the killing of Osama bin Laden, flew to a military base in Kentucky on Friday to thank special forces who carried out the deadly raid and led a rally filled with cheering troops.   With his poll numbers up and even Republican critics congratulating him for the bin Laden operation, Obama paid tribute to the elite military team in a secrecy-shrouded meeting at Fort Campbell five days after announcing the al Qaeda leader was dead.   Commandos who conducted the assault on bin Laden's compound in Pakistan gave Obama first-hand accounts of what happened, and he awarded them the highest presidential honour a military unit can receive, a U.S. official said.   " It was a chance for me to say on behalf of all Americans and people around the world: Job well done," Obama told a jubilant audience of soldiers just returned from tours of duty in Afghanistan.   Obama said " justice for Osama bin Laden" showed his Afghanistan war strategy was working and he repeated his pledge to start withdrawing troops from the country this summer.   Obama's visit, just a day after attending a sombre wreath-laying ceremony at the Ground Zero site of the September 11, 2001, attacks in New York, came as questions grew about initial U.S. details of the airborne assault on bin Laden's hide-out.   U.S. acknowledgment that bin Laden was unarmed when shot in the head -- as well as the sea burial of his body, a rare practice in Islam -- has drawn criticism in the Muslim world and Europe, where some warn of a backlash against the West.   But most Americans regard the secretive special operations unit that killed bin Laden -- the mastermind of the September 11 hijack-plane attacks on the United States -- as national heroes, and Obama came to thank some of them personally.   Soldiers gathered in a giant aircraft hangar festooned with American flags and a band belting out rock 'n' roll tunes. A huge " Job well done!" banner hung from the wall.   The strike team for the bin Laden operation included SEAL commandos who underwent weeks of intensive training for the nighttime assault on bin Laden's high-walled compound in Abbottabad, Pakistan.   'NIGHT STALKERS'   The sprawling Kentucky base is home to the U.S. Army's 160th Special Operations Aviation Regiment, a unit nicknamed the " Night Stalkers" and whose helicopter pilots were reported to have flown the mission.   Obama's meeting with special forces operatives was held privately to protect the secretive nature of their work.   Secrecy was so tight that journalists travelling with Obama were removed from his motorcade and not even allowed to see the exterior of the special operations centre where the meeting took place.   Obama is already reaping dividends from bin Laden's death, with most recent polls showing his job approval rating jumping above 50 percent since the raid.   But the boost could be short-lived as voters focus again on the struggling economy, lingering unemployment and high gasoline prices -- top public concerns considered crucial to Obama's re-election chances next year.   The killing of bin Laden will make it easier for Obama, however, to fend off criticism he is weak on national security, charges that Republicans have deployed effectively against Democrats for decades.   Although Obama has cautioned against triumphalism over bin Laden's death, even his political opponents seem willing to let him savour it.   " This has been an extraordinary week for our nation," he told the troops. " The terrorist leader who struck our nation on September 11 will never threaten our nation again." But he warned that " this continues to be a very tough fight."   White House spokesman Jay Carney insisted earlier that Obama was not " gloating" about bin Laden's demise and was mindful the war against al Qaeda was far from over.   Al Qaeda confirmed on Friday that bin Laden was dead and vowed to mount more attacks on the West.   Obama's visit was also a chance to try to rally support for the war effort in Afghanistan while reassuring Americans about his commitment to his long-standing pledge to start withdrawing U.S. troops from Afghanistan in July.   With the demise of the man who came to symbolize Islamist militancy, Obama is already facing pressure from some lawmakers to speed up the U.S. exit from an unpopular war 10 years after Washington helped topple Afghanistan's Taliban for sheltering bin Laden and al Qaeda after the September 11 attacks.   But U.S. officials have insisted that while seriously weakened by the loss of bin Laden, al Qaeda remains a dangerous force and it is time to step up efforts to crush it. |
Useful To Me Not Useful To Me | |
|
|
krisluke
Supreme |
07-May-2011 13:31
|
x 0
x 0 Alert Admin |
Oil falls again, gutted in record weekly drop
* Biggest weekly drop for crude in dollar terms
  * US private jobs grew in April at fastest pace in 5 years   * Euro hits more than 2-week low on Greece concerns (Adds quote in paragraph 4, CFTC data in paragraph 16)   By Matthew Robinson   NEW YORK, May 6 (Reuters) - Oil fell on Friday to cap a frenzied trading week that sliced prices by a record of more than $16 a barrel on demand worries and a move by investors to slash commodities exposures.   Oil bounced up early, then began to erase gains as the dollar rose. Crude turned negative late, extending Thursday's shock-inducing collapse, when Brent fell by as much as $12, a record, in a furious, high-volume session that saw wave after wave of selling as key technical levels were broken.   Selling pressure on oil and other commodities came on several fronts throughout the week. Investors weighed factors from the death of Osama bin Laden to the impact of higher fuel and commodity costs on consumer nation economies to the monetary policy in major economies.   Cascading sell stops created a " domino effect" , said Tom Bentz, director of BNP Paribas Commodity Futures in New York. " It became a vacuum of less people trying to buy and more people trying to sell."   Brent crude fell $1.67 to settle at $109.13 a barrel in heavy trade, with volumes twice the 30-day moving average. The contract tumbled $16.76 a barrel for the week, marking the largest weekly decline ever in dollar terms.   U.S. crude futures settled down $2.62 at $97.18 a barrel, after trading as high as $102.38 following supportive U.S. jobs data. Volumes were 70 percent over the 30-day moving average. U.S. crude ended down $16.75 for the week, the biggest weekly drop since the contract began trading in 1983.   LOOSE MONEY, SHAKY DEMAND   Oil received early support from U.S. Labor Department data showing private employers added jobs in April at the fastest pace in five years. But then the rising dollar again dragged prices down.   The euro fell to its lowest in more than two weeks and headed for its biggest weekly decline against the dollar since January. The move followed a German news report, later denied, suggested Greece had raised the possibility of leaving the euro zone.   " Payrolls were bullish initially, but the oil market is worried about demand growth," said Bill O'Grady, chief investment strategist at Confluence Investment Management in St. Louis.   " If Greece were to leave, which is not easy to do, the European banking system would be in great trouble, damaging the economy and oil demand."   Concerns about the end of the second U.S. quantitative easing program in June also weighed on prices. The program, in which the Federal Reserve purchased U.S. Treasury debt, flooded markets with cash and helped drive up crude prices,   Investors were watching moves by other big oil consumers. India's central bank raised interest rates by more than expected on Tuesday, and expectations No. 2 oil consumer China could take similar action hit crude on Wednesday.   FURTHER TO FALL?   Thursday's sell-off saw U.S. oil futures set a record high for open interest, which analysts said could suggest even more downside pressure is mounting on crude.   " It suggests that the investors are reversing course and that the new shorts were big enough to offset the longs and also would suggest there's more downside to go," said O'Grady.   Oil volatility measured by the Chicago Board Options Exchange's index initially cooled a day after the biggest one-day rise since it began in 2009. But the index closed only slightly lower at 41 percent. It was trading at around 30 percent just a week ago.   As oil fell this week, money managers cut their net long position in crude. Data from the U.S. Commodity Futures Trading Commission showed the speculator group reduced its net-long U.S. crude futures and options positions by 7,294 to 293,823 for the week to May 3.   Oil prices had rocketed to levels not seen since a record spike in 2008, driven by supply disruptions in Libya and loose U.S. monetary policy. Brent hit a high of $127 a barrel and U.S. crude surged over $114.   Goldman Sachs, which in April predicted a major correction in oil prices, on Friday said oil could surpass its recent highs by 2012 as global oil supplies keep tightening.   " It is important to emphasize that even as oil prices are pulling back from their recent highs, we expect them to return to or surpass the recent highs by next year," Goldman Sachs analysts said in a research note.   " We continue to believe that the oil supply-demand fundamentals will tighten further over the course of this year, and likely reach critically tight levels by early next year should Libyan oil supplies remain off the market." (Reporting by Gene Ramos, Robert Gibbons, Matthew Robinson in New York Jessica Donati-Bourne in London and Francis Kan in Singapore Editing by David Gregorio and Dale Hudson) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
07-May-2011 13:29
|
x 0
x 0 Alert Admin |
Silver bounces from 12 pct fall, gold up ahead of US
Gold bullion on a chart
  SINGAPORE (Reuters) - Silver rebounded on Friday from its biggest one-day dollar fall since 1980, and gold also recovered as cheaper prices lured in Asian investors keeping a wary eye on U.S. employment data due later in the day.   Buyers are taking advantage of a fall in spot gold of more than $100 from a record high in just four days and spot silver that has shed 30 percent from a record of $49.51 hit on April 28.   Spot silver slumped by 12 percent on Thursday after another margin hike by the CME Group on its COMEX silver futures increased the cost of the trading the metal, dragging gold down 3 percent and triggering a brutal sell-off that sent commodities from oil to copper sharply lower.   " Prices have dropped so much over the past few days and bargain hunters are in," said Ong Yi Ling, an analyst at Phillip Futures, adding that the weak outlook for U.S. employment data helped add to the lure of gold.   Spot silver gained nearly 1 percent to $35 an ounce by 0616 GMT, snapping a five-day losing streak. It is still on track for a 27-percent weekly loss, its biggest since the early 1980s.   The 100-day moving average at $34.39 would lend some support, traders said.   COMEX silver fell more than 5 percent to $34.27 in early trade, before regaining some ground to $35.05. It was poised to lose 28 percent over the week in its sharpest fall since March 1980, when an attempt by Texas oil tycoons the Hunt brothers to corner the silver market fell apart.   A worse-than-expected non-farm payrolls figure, after data on Thursday showing U.S. payroll growth eased in April, could further fuel the commodities sell-off by deepening fears that the world's largest economy is not out of woods yet.   Gold though could benefit from its status as a safe haven.   " Gold is a better bet than silver or oil, as losses would be capped by its safe-haven status," said Ong of Phillip Futures.   The reaction of the dollar to non-farm payrolls is also critical. The greenback was down slightly on Friday, after rising 1.5 percent the previous day, it's biggest gain in over six months.   Investors rushing to exit the market trimmed their positions in the iShares Silver Trust, the world's biggest silver-backed exchange-traded fund, by more than 1 percent after a 5 percent decline the previous day. Holdings stood at 10,268.92 tonne by May 5, the lowest since early November.   Spot gold rose by more than 1 percent to $1,486.96 an ounce, headed for a 5-percent drop from a week earlier, its worst week since March 2009.   COMEX gold edged up 0.4 percent to $1,487.20 an ounce.   " From a fundamental point of view, people are really starting to question where the U.S. economic recovery is and whether asset prices should be at such high levels," said Jonathan Barratt, managing director of Commodity Broking Services in Sydney.   " When we roll off the stimulus in June, what next? Is the U.S. economy going to fall flat or behave itself?"   Precious metals prices 0616 GMT |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
07-May-2011 13:28
|
x 0
x 0 Alert Admin |
Jobs report helps Wall St salvage sour week
NYSE
  * Industrials take lead after Thursday's commodities rout   * VIX posts largest weekly percent gain in almost a year   * Indexes up: Dow 0.43 pct, S& P 0.38 pct, Nasdaq 0.46 pct (Updates to close)   By Rodrigo Campos   NEW YORK, May 6 (Reuters) - An unexpectedly strong report on U.S. payrolls helped equities bounce back on Friday from four days of losses, tempering worries that stocks could suffer the sharp declines seen this week in commodities.   Stocks held strong gains for most of the session but ended the week down more than 1 percent. Speculation that Greece might leave the euro zone late on Friday caused stocks to trim gains and gave investors something to worry about as the strength of the market's rally comes into question.   However, the S& P held above key support levels, indicating the week's retreat could set the stage for further gains in contrast to the tumultuous declines in silver and oil markets.   " The stock market is trying to stand on its own feet," said Nick Kalivas, senior equity index analyst at MF Global in Chicago. " Corporate news has been pretty strong, and stocks look like they're more attractively valued than commodities."   A massive selloff in materials and oil on Thursday forced investors out of high-risk assets. The iShares Silver Trust suffered its worst week of outflows ever after heavy losses in the metal.   Stocks biggest boost came from the strong U.S. April payrolls report, according to Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds Management in Menomonee Falls, Wisconsin. The data showed an increase of 244,000 jobs, the most in 11 months..   But stocks came off highs after German magazine Spiegel carried a report, later denied, that Greece had raised the possibility of leaving the euro zone..   " People's memory of the Greek crisis last year caused liquidation that is spilling over from currency and commodity markets into the stock market," said Kalivas.   The three major stock indexes were up more than 1 percent through most of the session. Despite Friday's gains, the S& P posted its largest weekly percentage drop since mid-March.   The industrial sector of the S& P 500, which could benefit from a slide in commodity prices, was the session's best performer with a 0.77 percent advance.   Fluor Corp, the largest publicly traded U.S. engineering company, was the top percentage gainer on the S& P 500 after it posted a small increase in quarterly profit that beat analysts' estimates. Its shares jumped 7.9 percent to $70.87.   The Dow Jones industrial average gained 54.64 points, or 0.43 percent, to 12,638.81. The Standard & Poor's 500 added 5.10 points, or 0.38 percent, to 1,340.20. The Nasdaq Composite rose 12.84 points, or 0.46 percent, to 2,827.56.   For the week the Dow lost 1.3 percent, the S& P fell 1.7 percent and the Nasdaq Composite dropped 1.6 percent.   The S& P 500 held above important technical levels with the week's low just below 1,330 and Friday's close above 1,340.   " On a weekly basis this 1,330 area is a very good support for stocks," MF Global's Kalivas said.   " If you were to work below that, it would question the breakout we saw last week. We're in a battle zone here and next week is going to decide the fate" of the market, he said.   Still, the CBOE volatility index . rose 1.1 percent to 18.40, its highest closing level since March 28. The gauge rose 24.7 percent this week, its biggest weekly percentage gain in almost a year. A rise in the VIX means investors will pay more for protection against their equities exposure.   Friday marked the one-year anniversary of Wall Street's " flash crash" when nearly $1 billion was wiped off U.S. stocks in a matter of minutes before the market bounced back. The crash diminished many investors' confidence in the market.   On Friday about 8.24 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below last year's estimated daily average of 8.47 billion but still above the year's daily average so far.   Advancing stocks outnumbered declining ones on the NYSE by a ratio of 2 to 1, while on the Nasdaq, about three stocks rose for every two that fell. (Reporting by Rodrigo Campos Editing by Kenneth Barry) |
Useful To Me Not Useful To Me | |
|
|
krisluke
Supreme |
06-May-2011 23:55
|
x 0
x 0 Alert Admin |
Silver Manipulation Flattens CommoditiesSilver Manipulation Flattens Commodities Last week, silver margins were increased by the CME twice by 20%, today they raised them again to 30% flattening commodity prices and forcing traders to exit and take their losses. A number of commodities houses have demanded additional margins far above and beyond the CME increase driving investors, traders and holders out of the market. Apart from USA employment data, there seems to be no justification in the fall in commodity prices, the world economy is sound as earnings week showed. USA firms are not hiring as many people as the Government would like however, the same Government has made the cost of hiring new USA employees prohibitive when compared to global wage rates. The USA worker is no longer set apart from the World’s billions of workers and the Government will need to do more to encourage small to mid size businesses to stay in the USA, rather than attempting to artificially bring down commodity prices. Spot gold was bid at $1,481.39 a troy ounce at 1136 GMT from $1,471.70 late in New York on Thursday when it saw $1,462.40 an ounce, its lowest since April 14. It is down about $100 since a record high of $1,575.79 hit on May 2.Spot platinum was at $1,787.49 an ounce from $1,758.95 on Thursday and palladium was at $713.97 from $707.08 an ounce. Spot silver earlier touched $33.49, the lowest since February 28. Prices of the industrial precious metal plunged 12 percent on Thursday, its biggest one-day decline since October 2008. It was last bid at $33.83 from $34.67 on Thursday. |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:54
|
x 0
x 0 Alert Admin |
Jean-Claude Trichet on Commodity PricesECB’s Trichet, believes the fall in Commodity prices is “Good News” The fall in commodity prices is good news and will help consolidate the economic recovery, European Central Bank President Jean-Claude Trichet said Friday. Still “caution” and “prudence” remain warranted, the president said in an interview. Trichet’s comments come a day after his remarks helped drive down the Euro and drive up the USD, causing a selloff in assets linked to commodities. In the bank’s monthly press conference Mr.Trichet directly cited recent statements from leading US officials, which underscored the US’s commitment to a Strong USD. Mr. Trichet said he shared their belief that a Strong USD was good both for the US and the Global economy. He did avoided the word “vigilance” in reference to inflationary risks, saying instead that the central bank “will continue to monitor very closely all developments with respect to upside risks to price stability.” Savvy observers see this to mean that the ECB will wait until July before raising its main refinancing rate. The bank increased its Key rate on April 7 by 25 basis points to 1.25%. It was the bank’s 1st rise in nearly 3 yrs and its first change in the Key rate since May 2009. |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:53
|
x 0
x 0 Alert Admin |
Asia Hedge FundsCash is no longer king and the value of the USD is being eroded which means everyone must rethink their investment strategy and adjust their portfolio holdings. While many think that if they live in the USA and earn in USD nothing will change, I can assure you that those days are over, growing world wide demand for food, energy, goods and services has an impact at all retail outlets in the USA. Every investor, institutional or individual must now balance their portfolio based on currency exposure. The IMF’s John Lipsky has warned that “the average public debt ratio of advanced countries will exceed 100 percent of their GDP for the first time since the war” by the end of this year, and that this debt is unsustainable, risking a new fiscal crisis for some. The massive sovereign debt problems of the US and Eurozone also clearly run the risk of sharply increasing future inflation as their currency wars export inflationary pressure around the world. This will result in real investment losses in long-term fixed interest bonds (as well as in cash), since debt that cannot be repaid from taxes will need to be printed by means of ever larger rounds of quantitative easing (money printing) measures. All this simply implies an accelerating erosion of the value and purchasing power of money. Investors can protect themselves from rising inflationary risks by investing in or gaining exposure to real scarcity, traditional safe haven assets like gold, as well as other commodities, I would include things like agricultural land and soft commodities as well. Dividend stocks will become the next big thing as the Fed intends to hold rates low for an extended period. Your dividend portfolio should be comprised of businesses that are generating a good mix of revenue in a number of currencies, it should include foreign companies, ADR’s and ETf’s. These need to be well researched and have a strong history of dividend payments. That dividend portfolio should be 50% foreign non USD derived income at least, it should feature Food, Commodities, Soft Commodities, Agriculture, Energy and companies in that vertical. Exposure to these asset classes, as part of a diversified portfolio, can generally provide better inflation- protection than a portfolio mostly comprising bonds or cash. Heffcap offers such a balancing and review service for clients that qualify as institutional or accredited investors. Heffcap Private Funds management integrates sound investment principles with our own algorithm to insure Trading Algorithms identify which securities have strong or weak shareholder bases in which the value opinion of the manager is shared by the existing investor base. Shayne Heffernan oversees the management of funds for institutions and high net worth individuals. Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services. |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:37
|
x 0
x 0 Alert Admin |
Al Qaeda vows to avenge Osama bin Laden's death
Supporters of Jamiat-e-ulema-e-Islam are seen near an image of al-Qaeda leader Osama bin Laden during an anti-U.S. rally on the outskirts of Quetta
  DUBAI (Reuters) - Al Qaeda promised retribution to the United States and its allies, including Pakistan, to avenge the death of its leader Osama bin Laden, the militant group said in a statement on Friday.   Calling bin Laden a martyr, the Islamist militant group promised to soon release an audio recording made by its leader a week before he died. The statement on Friday was the first by the group confirming bin Laden's death, five days after U.S. President Barack Obama announced that they had found and shot him in a U.S. raid in Pakistan.   " Oh glory, glory. Sheikh Osama did not build an organisation that will die with his death and leave with his exit," using the honorific sheikh, or " leader."   " Congratulations to the Islamic umma (community) for the martyrdom of its son Osama."   Osama and his militant group al Qaeda (meaning " the base" in Arabic), became the United States' most wanted target nearly a decade ago when their followers hijacked jetliners and slammed them into the World Trade Center towers and the Pentagon, killing thousands.   Bin Laden, the wealthy son of a construction magnate in Saudi Arabia, founded al Qaeda in the 1980s when fighting in Afghanistan. After the September 11 attacks and being pursued by the United States, the group became less centralised, and regional wings, most notably in Yemen, have operated more independently.   In the statement, al Qaeda vowed not to deviate from the path of armed struggle and said bin Laden's blood " is more precious to us and to every Muslim than to be wasted in vain."   Early on Monday, a small team of U.S. commandos assaulted a compound in the Pakistani town of Abbottabad near the capital Islamabad, shooting bin Laden him in the head and then later burying his body at sea.   " It will remain, should God Almighty allow, a curse that hunts the Americans and their collaborators and chase them outside and inside their country," the militant network said.   " We call upon the Muslim people of Pakistan, on whose land Sheikh Osama was killed, to rise up and revolt to cleanse this shame that has been attached to them by a clique of traitors and thieves ... and in general to cleanse their country from the filth of the Americans who spread corruption in it."   SEA BURIAL   After bin Laden's death, U.S. officials said they performed Islamic religious rites and eased his body into the sea, a measure taken by many as a sign that they did not want to bury him in a place that could become a martyr's shrine.   Al Qaeda urged the United States to treat the bodies of Osama bin Laden and those killed with him in the raid with care, and to return their bodies.   " We warn the Americans not to harm the corpse of the sheikh or expose it to any indecent treatment or to harm any members of his family, living or dead, and to deliver the corpses to their families," it said.   Washington said bin Laden's body was treated with respect, and he was reported to have been washed and covered in a white shroud in burial preparations that lasted nearly an hour. Muslim tradition holds, however, that a dead body must be buried in the ground.   " Any harm done will open the doors of evil upon you doubly, and you will not have anyone but yourselves to blame."   (Additional reporting by Yara Bayoumy, editing by Reed Stevenson) |
Useful To Me Not Useful To Me | |
|
|
warrenbegger
Elite |
06-May-2011 23:34
Yells: "Anyhow Buy Anyhow Die ^_^" |
x 0
x 0 Alert Admin |
Krisluke! U dont need to sleep ah? LOL!!! I Love U :) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:33
|
x 0
x 0 Alert Admin |
Singapore ruling party faces tough election but should prevail
By Raju Gopalakrishnan
  SINGAPORE (Reuters) - Singapore votes this weekend in its most hotly contested election ever as the ruling People's Action Party (PAP) faces challenges on the very policies that have brought spectacular growth and made the city-state a premier global financial hub.   There seems little doubt that the PAP will retain power in Saturday's election, which has led financial markets to largely ignore the vote.   But the party's huge 82-2 majority in parliament may be cut back as the opposition benefits from irritation over the spin-offs of the success story: sharper income disparities and an unwelcome influx of foreigners.   Opinion polls are not published in Singapore but an online poll conducted by Australian group UMR Research indicates that the PAP's share of the vote may fall to 61 percent from about 67 percent in 2006.   " Sometimes it's just a case of the lesser of two evils," said Marcus Yong, a 24-year-old advertising executive, as the election campaign wound down on Thursday. " I think I will vote for the PAP."   " The opposition's aimless bashing is getting stale they should be focussing on what they can offer rather than what the PAP did wrong," he said.   Boosted by hundreds of thousands of voters born after the PAP took power in newly independent Singapore in 1965, the opposition has drawn large crowds and is contesting 82 of 87 seats in parliament, the highest number ever.   Its rallies have been remarkable for the strident criticism of the government.   Singapore has been accused by New York-based Human Rights Watch and other groups of restricting freedom of expression and using defamation lawsuits to cripple the opposition, but so far in this campaign there has been no evidence of a government clamp down.   Most of the opposition's criticism has focussed on bread and butter issues and a perception that the government was not listening.   Singapore's economy has grown rapidly in recent years, including a 14.5 percent surge in GDP in 2010, but incomes of its citizens have not kept pace. According to the Department of Statistics, the bottom 10 percent of Singaporean households had an average monthly income of S$1,400 (689 pounds) last year, versus S$23,684 for the top 10 percent.   Government policies are focussed on attracting foreign wealth and making the city an easy place to live, and well as invest, in, which has drawn the ire of locals.   Foreigners now make up 36 percent of Singapore's population of 5.1 million, up from around 20 percent of 4 million people a decade earlier. This, critics say, has led to competition for jobs and housing, the dilution of Singapore's national identity, as well as crowded roads, buses and trains.   APOLOGY   Prime Minister Lee Hsien Loong has apologised for mistakes the government may have committed and said issues such as housing prices, the cost of living and income inequality will be closely monitored.   Such an apology from the powerful PAP would have been unheard of in previous years, but some cynics have called it a show of humility designed to win back votes.   " They (the opposition) have a very different vision of how to achieve the best for Singapore," said Paul Tambyah, a speaker at an opposition rally on Thursday night.   " It is not a top down, " we know better" approach but it is all about you. Two weeks of campaigning have made the government finally listen to the people - make unprecedented apologies, take notice of the issues. Think what five years could do."   Despite the rhetoric, the election has drawn little interest in financial markets or among overseas investors because the PAP is unlikely to lose substantial support, analysts say.   " There's no question about the outcome of this election," said Hans Goetti, regional chief investment officer for Swiss fund manager Finaport.   " I think the question will be how many seats the opposition gets and how many votes overall. I think if the opposition wins a few seats, actually it would be a good thing for the overall debate in Singapore.   " It would be nice to see a real debate going on policy issues, and I think the stronger opposition will help that."   (Additional reporting by Kevin Lim and Walter Sim Editing by Miral Fahmy) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:31
|
x 0
x 0 Alert Admin |
Euro gains vs US dlr, erasing post-payroll losses
NEW YORK, May 6 (Reuters) - The euro rose against the dollar on Friday, erasing losses sparked by an unexpectedly strong U.S jobs report.
  Analysts said the jobs data, while encouraging, was not sufficient to meaningfully shift the outlook for U.S. monetary policy.   That helped the euro bounce off a session low of $1.4455 set on Reuters data after the release of the jobs report.   The euro last traded at $1.4558, up 0.1 percent on the day.   " We're still looking at the divergence in interest rate outlooks between the Fed and ECB as the primary driver in market activity over the medium term," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.   " This morning's jobs data was certainly positive and encouraging on many fronts, but it was not strong enough to meaningfully to alter the outlook for Fed policy and so doesn't necessarily provide any long-term support for the U.S. dollar," he said. (Editing by James Dalgleish) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:29
|
x 0
x 0 Alert Admin |
HK shares end lower shippers, airlines offset weak energy plays
HONG KONG, May 6(Reuters) - Hong Kong shares finished lower for an eighth successive session on Friday, posting another weekly loss, with energy shares hobbled by a rout in commodities prices.
  Gains in transport counters, on expectations that lower crude oil prices will help ease the burden of escalating fuel costs, limited losses on the Hang Seng Index to 0.44 percent. The China Enterprises Index ended the day up 0.32 percent.   On the mainland, the Shanghai Composite Index posted a mild loss and appeared to find support at the level from which it bounced back in mid-March towards a 2011-peak in the following month. The index closed down 0.3 percent at 2,863.89.     HIGHLIGHTS:   * Energy issues were the top losers again in Hong Kong, with the sub-index down 1.36 percent on the day. The index's 10.5 percent decline since mid-April is the worst four-week return since the euro zone debt crisis last May.   * Transport stocks surged as the drop in oil prices deepened on hopes that fuel costs, a major input cost for such companies, would ease. Air China Ltd shares jumped 5.8 percent while China Shipping Development Co Ltd rose 6.8 percent.   * Tsingtao Brewery Co Ltd rose 4 percent after a local newspaper reported that it was interested in bidding for the beer operations of Australia's Foster's Group Ltd , which the Chinese brewer later denied. [ID:nL3E7G612Q]     WEEK AHEAD:   Market players are focusing on U.S. payrolls numbers expected later on Friday, where a stronger-than-expected number could prompt investors back into risky assets. [ID:nN05259672]   Next week also sees a slew of monthly economic data from China, including the closely watched inflation data that is expected to show a slight easing. [ID:nL3E7G60AQ] Pan-Asia..... Japan........ S.Korea.... S.E. Asia........... Hong Kong... Taiwan..... Australia/NZ........ India....... China......   OTHER MARKETS: Wall Street.......... Gold......... Currency.. Eurostocks.......... Oil........... JP bonds... ADR Report......... LME metals.. US bonds... Stocks News US.. Stocks News Europe... DIARIES & DATA: IPO diary & data Asia earnings diary U.S. earnings diary European diary Taiwan diary Wall Street Week Ahead Eurostocks Week Ahead World forecasts   TOP NEWS: For top Asian company news, double click on: U.S. company news European company news Forex news Global Economy news Technology news Telecoms news Media news Banking news Politics/General news Asia Macro data A multimedia version of Reuters Top News is available at: http://topnews.session.rservices.com |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:27
|
x 0
x 0 Alert Admin |
Wall Street climbs at open on April payrolls data
The New York Stock Exchange building
  * Number of US jobs created in April tops expectations   * Oil pares early losses   * Indexes up: Dow, S& P 1 pct, Nasdaq 0.9 pct (Updates to open)   By Chuck Mikolajczak   NEW YORK, May 6 (Reuters) - U.S. stocks jumped at the open on Friday, cutting weekly losses on the S& P 500 in half, after an unexpectedly strong payrolls report eased fears about the path of the economic recovery.   U.S. nonfarm payrolls rose by 244,000 in April, the most in 11 months, the Labor Department said on Friday, well above economist' expectations for an increase of 186,000. For details see.   " Surprisingly good, strong number here -- this reminds everyone that we are still on the path of recovery," said Jeff Kleintop, chief market strategist at LPL Financial in Boston.   " This might even put a bid back in commodities which have suffered so tremendously this week on the fear that there is no more need for an inflation hedge."   U.S. crude oil futures, which had slumped on Thursday after a batch of soft economic data during the week, pared early losses and fell 0.4 percent to $99.44 a barrel. ICE Brent futures rose 0.2 percent to $111.01.   Exxon Mobil Corp rose 0.9 percent to $83.39 and Chevron Corp gained 0.7 percent to $103.36. The PHLX Oil service sector index climbed 1.7 percent.   The Dow Jones industrial average gained 127.49 points, or 1.01 percent, to 12,711.66. The Standard & Poor's 500 Index rose 13.43 points, or 1.01 percent, to 1,348.53. The Nasdaq Composite Index climbed 25.82 points, or 0.92 percent, to 2,840.54.   Friday marks the one-year anniversary of the " flash crash" on Wall Street, when the Dow lost nearly 700 points in minutes.   The CBOE volatility index ., dropped 8.8 percent to 16.60 after closing at its highest level on Thursday since March 28.   Gaines were also seen in materials-related stocks, with the S& P Materials index up 2 percent, led by a 3.1 percent rise in mining company Freeport-McMoRan Copper & Gold to $51.33.   The benchmark S& P 500 had fallen 2.1 percent this week, before Friday's advance, culminating in a drop in commodity prices on Thursday as concerns rose over deteriorating demand. (Editing by Padraic Cassidy) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:26
|
x 0
x 0 Alert Admin |
Goldman sees new oil rally after predicting drop
* Says fall sparked by poor macroeconomic, inventories data
  * Goldman says oil may surpass recent highs by 2012   * Barcap, Hermes say correction offers good chance to buy     (Adds Deutsche Bank, Lloyds)   By Dmitry Zhdannikov   LONDON, May 6 (Reuters) - Goldman Sachs, which in April predicted this week's major correction in oil prices, said on Friday that oil could surpass its recent highs by 2012 as global oil supplies continue to tighten.   The Wall Street bank, seen as one of the most influential in commodities business, said it did not rule out a further limited short-term fall in oil prices if macro-economic data, which it said had sparked this week's crash, continued to disappoint.   News of Goldman's mid-term outlook on Friday prompted a $1 a barrel jump in oil prices, helping oil to pare some of its earlier heavy losses.   Oil prices seesawed on Friday, turning positive on better than expected U.S. jobs data, which eased fears about global economic recovery that led to a 10-percent price crash on Thursday.   " It is important to emphasize that even as oil prices are pulling back from their recent highs, we expect them to return to or surpass the recent highs by next year," Goldman Sachs' analysts said in a research note.   " We continue to believe that the oil supply-demand fundamentals will tighten further over the course of this year, and likely reach critically tight levels by early next year should Libyan oil supplies remain off the market," it said.   It said it believed that this week's correction in oil prices, which fell from above $125 per barrel of Brent crude to below $106 on Friday, was sparked by disappointing economic data releases and U.S. oil inventory data.   " The sell-off yesterday (May 5) has likely removed a large portion of the risk premium that we believe has been embedded in oil prices, which could suggest further downside may be limited from here" .   " However, we remain wary of potential further downside should economic data releases in coming days continue to disappoint, with the focus now turning to today's (May 6) non-farm payroll report in the United States" .     GOOD BUYING OPPORTUNITY?   Goldman rocked markets in April by calling a nearly $20 fall in Brent, saying speculators had pushed prices ahead of fundamentals.   Goldman was one of the first banks to predict $100 oil last decade, in 2005 when prices were closer to $50 a barrel, but it stayed bullish for some time after oil peaked at $147 in 2008.   " In terms of timing, Goldman got it (the crash) right this time. Well done," said an oil trader with a major rival bank.   " It (this week's fall) was a move driven by macro funds after U.S. and German data disappointed and (European Central Bank President Jean-Claude) Trichet did not deliver on yet another rate rise," he said.   " With Asian funds having liquidated some of their position today I think we will now see prices stabilising and even if U.S. jobs data is poor this afternoon, I don't think it will turn as horrible as yesterday," he added.   Other major commodity players among banks, Barclays Capital and Deutsche Bank, said on Friday the current levels might be a good buying opportunity.   " While further downside from potential weaker macro releases cannot be ruled out, the general trend from here should be higher, rather than lower, in our view," said Amrita Sen, an oil analyst at Barclays.   She added that worries about tight supplies and unrest in the Middle East will outweigh concerns about U.S. gasoline demand destruction or slower Asian demand due to inflation.   Deutsche Bank commented: " We believe composure will return to commodity markets as underlying fundamentals remain bullish in our view... We believe the collapse in oil prices this week is more a positioning event than a change underlying fundamentals."   Andrew Moorfield, the head of oil division at Lloyds, said he saw oil at around $110 in 2011 and $100-$110 going forward.   " Despite this week, the demand curve for oil remains with an upward trajectory... Globally, this general fall in commodities prices will reduce the drag many were starting to think they were having on economic growth" .   Colin O'Shea, head of commodities at Hermes, who helps manage over $2 billion, also said the correction was a good opportunity for investors to get into the market if they missed out on the previous rally.   " Fundamentally, in the energy space and in crude oil, not a lot has actually changed. We have got diminishing spare capacity, globally demand is picking up, we have got some supply-side issues -- so the factors that caused the price rises right throughout 2010 are still there," he said. (Reporting by Dmitry Zhdannikov, additional reporting by Claire Milhench, editing by Anthony Barker) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
06-May-2011 23:25
|
x 0
x 0 Alert Admin |
Oil rebounds $3 after 10 percent drop
* Crude bounces up a bit from one of biggest daily drops
  * US private jobs grew in April at fastest pace in 5 years   (Recasts, updates prices, market activity)   NEW YORK, May 6 (Reuters) - Oil prices rose on Friday, bouncing up $3 in a slight rebound from a 10 percent crash the previous session.   Thursday's drop was the second biggest on record for Brent, with prices down as much as $12 at one point, and down more than $10 at the close for one of the biggest daily drops ever.   Concerns about weak economic data from the United States and Europe and the impact of high prices on fuel demand knocked $15 off Brent prices in the first four days of the week. By Friday, some traders were sidelined, with others pointing to U.S. employment data as a bullish sign.   " I think it's just a little reaction to the way oversold conditions we got into yesterday, it was quite a bloodbath," Mike Zarembski, senior commodities analyst for optionsXpress in Chicago.   " Traders are still a bit shellshocked from yesterday."   Brent crude traded up $2.96 to $113.76 a barrel at 11.03 a.m. EDT (1503 GMT), rebounding after shedding $5 in the early hours of trade before the U.S. open.   U.S. crude futures gained $2.11 to trade at $101.91 a barrel, after dipping as low as $95.25 a barrel earlier in the session.   Data from the Labor Department showed U.S. private employers added jobs at the fastest pace in five years in April, pointing to underlying strength in the economy, even as the jobless rate rose to 9.0 percent. (Reporting by Gene Ramos, Robert Gibbons, Matthew Robinson in New York Jessica Donati-Bourne in London and Francis Kan in Singapore Editing by David Gregorio) |
Useful To Me Not Useful To Me | |
krisluke
Supreme |
05-May-2011 22:13
|
x 0
x 0 Alert Admin |
while the green back gain muscles against  rival majors, plus US payroll out on this friday... olso singapore election coming  this saturday..... I believe the USD will move up then down thus causing SGD to appreciate its value..... I might be wrong at this point of thinky.   as many think likewise....   |
Useful To Me Not Useful To Me |