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Feb 27, 2011

MarketWatch: Markets - Stocks back in rally mode



Stocks back in rally mode

EUROPEAN MARKETS
Stocks snap losing streak
Bourses rise, paced by Paris, as oil consolidates below $100 a barrel, though turmoil in Libya continues to weigh on sentiment.
FTSE rallies as market reopens, Lloyds drops

ASIAN MARKETS
Japanese auto makers may be poised for see rebound
The sector has fallen hard this week in the wake of soaring oil prices, but a sharper focus on fuel efficiency may buoy sentiment going forward.
Japan to cut use of China rare earths

Asia stocks advance
Most stocks rise as investors snap up beaten-down shares after a retreat in crude-oil prices.
Indian stocks boosted by growth projections

Financial And Forex Info New | The Australian Business Briefing: Dividend warning on Seven merger













  
Dividend warning on Seven merger
Kerry Stokes Damon Kitney SEVEN Group chief executive Peter Gammell has warned that dividend growth at the new Seven West Media group will inevitably slow.
 
Dollar gains as risk-appetite returns
dollar THE Australian dollar was higher today as market tension eased over the political crisis in oil-rich Libya.
 
HK tycoon bids to control British power
Li Ka-shing HONG Kong tycoon Li Ka-shing could well control half of Britain's electricity network if the country's competition regulator is appeased.
 
Feisty Mullin the best bet for Star City
Larry Mullin Nabila Ahmed LARRY Mullin claims the rare distinction of being one of the few executives in Donald Trump's $6 billion property empire who stood up to him.
 
Macquarie expands operations in the US
mac Scott Murdoch THE head of Macquarie's growing US operations, Tim Bishop, is keen not to be known as the Australian banker with the accent.
 
Carbon price to boost imports: O'Malley
Paul O'Malley Matt Chambers BLUESCOPE Steel chief Paul O'Malley says a carbon price will reduce  the competitiveness of Australian manufacturers.
 
$300m Downer raising tipped
Downer EDI Tracy Lee and Nabila Ahmed ENGINEERING contractor Downer EDI is expected to launch a capital raising for up to $300 million today.
 
Luscombe stands by target
Woolworths Blair Speedy WOOLWORTHS chief Michael Luscombe rejects suggestions the company has entered a new period of lower growth.
 
Financial Markets
Dollar gains as risk-appetite returns
dollar THE Australian dollar was higher today as market tension eased over the political crisis in oil-rich Libya.
 
Dividend warning on Seven merger
Nasdaq looking for a partner
 
Financial Markets Coverage
 
Mining & Energy
Vale claims it outperforms BHP and Rio
Aus Bus Pix Pilbara rail mining Rio Tinto Diana Kinch MINING giant Vale expects "a very, very good year" in 2011, following its record 2010 results that it claimed were better than BHP and Rio.
 
Gold slips as Saudis ease concerns
Oil climbs as Libya stays in focus
 
More Mining & Energy Coverage
 

Financial And Forex Info News: The Australian Capital Circle: Carbon rhetoric ramps up as parliament returns.




Capital Circle Newsletter
Carbon rhetoric ramps up as parliament returns
 
The carbon tax debate will light up federal parliament this week - and for months to come.

The PM's day, per the press office: Julia Gillard will attend the launch of the Holden Cruze at the Holden factory in Elizabeth, South Australia today at around 830am. She will then fly back to Canberra for Question Time and a week of politics sure to be dominated by her proposed carbon tax.
Tony Abbott has blitzed morning radio today, appearing on Triple MMM in Melbourne and then on 2UE with Jason Morrison. He will then attend the parliamentary prayer breakfast and then continue his campaign against "Julia Gillard's monster new tax''.
On Q&A tonight: Malcolm Turnbull, Bill Shorten, Samah Hadid, Piers Akerman and Gretel Killeen.
***Sign up to Capital Circle -- news from the beltway to your inbox***
Top of the parliamentary agenda today is Julia Gillard's plans for a carbon tax. As Siobhain Ryan reports, Julia Gillard faces months of opposition and lobby group attacks as her government works on details of its carbon strategy, with its effects on petrol prices yesterday sparking a public row over her closed-door negotiations with the Greens and independents.
Spanner in the works: the rural independent MP Tony Windsor has threatened to torpedo plans to put a price on carbon unless the Greens stop making ''unilateral'' statements about the details of the proposed scheme, including an insistence that petrol prices rise. (more from Phillip Coorey)
Environmentalists and economists are pushing the government to pass on to motorists the full cost of their greenhouse pollution and to compensate for cost-of-living increases through the tax and welfare system instead of at the bowser. (more from Siobhain Ryan and Andrew Trounson)
The Australian splashes with a report from Read more...

The Telegraph: Banks and Finance


The Telegraph

Business taste for Libyan oil money exposed

Household names such as HSBC, Barclays Capital and Wood Group all working towards, or having business relationships with Libya.
27 Feb 2011

HSBC set to report £12.4bn of profits

HSBC and Standard Chartered will this week report profits totalling £16bn - more than double the amount so far announced by Britain's major banks.
27 Feb 2011

The Atlantic:10 Ways Rising Oil Prices Endanger the U.S. Recovery

 

Generally, more democracy has a positive effect on the global economy. Freer people have the ability to buy, sell, and innovate as they please. But the political unrest in the Middle East is having a negative effect on the markets thus far. What makes those revolutions different? The Middle East is a major source of the world's oil. Political uncertainty in the region leads to oil supply uncertainty. For that reason the recent events in nations like Egypt and Libya have been worrying investors and businesses: if less oil flows out of the region to the rest of the world, fuel prices will rise.
In fact, we're already seeing oil prices hit highs this week not seen in two-and-a-half years. These increases come after oil prices already began to rise moderately throughout much of 2010, as the global economy strengthened. High fuel costs could dampen global economic growth, since firms and consumers would be forced to spend more on energy. This effect could also thwart the recently strengthening U.S. economy. Here are ten ways rising oil prices endanger the recovery:

 

 

Consumer Spending Weakens

The most obvious casualty of rising oil prices is consumer spending. If Americans are forced to pay more for the gasoline they need to get to and from work, the grocery store, and wherever else, then they'll have less money to spend on discretionary items. Without this extra money going to retailers and other firms, the economy won't grow as rapidly. This possibility is of particular concern to the U.S., where around 70% of economic activity is said to result from consumer spending.

First, it's important to note that none of these ten factors are mutually exclusive. Indeed, many are complementary. It's not likely we would see consumer sentiment fall without the residential real estate market taking a hit, for example. That's why prolonged high oil prices are so dangerous -- they could create a domino effect that would poison many different aspects of the U.S. economy.
Of all these factors, a decline in consumer spending is arguably the most significant. As mentioned above, a huge portion of the U.S. economy depends on Americans' willingness to spend. Consequently, spending is intrinsically connected to a number of the factors noted above. The potential harm to spending is hard to overemphasize if oil prices remain elevated or climb further. This morning, Chris Lafakis from Moody's Analytics noted in a CNBC segment:
Oil averaged around $80 [per barrel] in 2010. If it were to average $92 in 2011, that would wipe out a fourth of the $120 billion in payroll tax reduction that we got in the tax compromise in December. If oil were to average $103 in 2011, that would wipe out half of the tax break we got.
He went on to say that a $92 average sounds reasonable. As of Wednesday morning, the Nymex Crude Future priced a barrel of oil at $96.65.
While all of these possibilities are serious, it's not time to panic just yet. The problem with political uncertainty is that you don't know how things will ultimately turn out. If the democracies that rise in the Middle East continue to export oil much like the regimes they replace did before, then oil prices shouldn't increase more rapidly than they would have simply due additional demand from the global recovery.
If oil prices are only temporarily elevated due to unrest, then the U.S. recovery should escape relatively unscathed. But if the revolutions in the Middle East push oil prices much higher permanently, then the economic recovery would have a significant obstacle in its path.

NYT: Morning Business News: Jules Kroll Tries His Hand at Credit Ratings



Alert Name: FGC BOLSA - FGC FINA
February 27, 

BUSINESS DAY


Jules Kroll, known for corporate detective work, wants to shake up a business tarnished by the financial crisis.

USA TODAY: U.S. will be the world's third largest economy, Citi says


"We expect strong growth in the world economy until 2050, with average real GDP growth rates of 4.6% per annum until 2030 and 3.8% per annum between 2030 and 2050," Buiter wrote in a market research.
"As a result, world GDP should rise in real PPP-adjusted terms from $72 trillion in 2010 to $380 trillion dollars in 2050," he wrote.
As the world watches oil prices rise sharply amid unrest in the Middle East, Buiter's analysis of the world's long-term prospects offer some hope that better times are ahead but if he is right power will shift from the West to the East very quickly.
"China should overtake the U.S. to become the largest economy in the world by 2020, then be overtaken by India by 2050," he predicted.
One way bet on emerging markets?
Growth will not be smooth, according to Buiter. "Expect booms and busts. Occasionally, there will be growth disasters, driven by poor policy, conflicts, or natural disasters. When it comes to that, don't believe that 'this time it's different'."
However, there are some easy wins for poor countries with big, young populations, he said.
"Developing Asia and Africa will be the fastest growing regions, in our view, driven by population and income per capita growth, followed in terms of growth by the Middle East, Latin America, Central and Eastern Europe, the CIS, and finally the advanced nations of today," he wrote.
"For poor countries with large young populations, growing fast should be easy: open up, create some form of market economy, invest in human and physical capital, don't be unlucky and don't blow it. Catch-up and convergence should do the rest," Buiter added.
Buiter has constructed a "3G index" to measure economic progress; 3G stands for "Global Growth Generators" and is a weighted average of six growth drivers that the Citigroup economists consider important:
1. A measure of domestic saving/ investment
2. A measure of demographic prospects
3. A measure of health
4. A measure of education
5. A measure of the quality of institutions and policies
6. A measure of trade openness
Using that index the nations to watch over the coming years are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, the Philippines, Sri Lanka and Vietnam.
"They are our 3G countries," Buiter said.
© 2011 CNBC.com