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Jun 24, 2013

Asian Markets, Latest News at the time; June 24, 2013.


Asia stocks mostly gain, but Shanghai down further Most of the major Asian stock markets rebound after concerns about a liquidity squeeze in China spark a global selloff the previous day, but Shanghai shares extend losses on worries about the impact from high money-market rates.

Shanghai stocks extend losses; Hong Kong rises HONG KONG (MarketWatch) -- Mainland Chinese stocks fell further Tuesday amid concerns over the impact from a liquidity squeeze in the interbank money markets, with banks extending their sharp recent losses. The Shanghai Composite fell 1% to 1,944.01, a day after it plunged 5.3%, triggering a selloff in global equity markets. Shares of China Minsheng Banking Corp. dropped 5.4% on top of Monday's 10% tumble, with Industrial Bank Co. losing 3.5% and China Everbright Bank Co. shrinking 2.2%. Meanwhile, stocks in Hong Kong rebounded after a five-day losing streak, with the Hang Seng Index rising 0.5% to 19,921.63, but shy of the 20,000-point level, while the Hang Seng China Enterprises Index climbed 0.4%. Gains were led by stocks beaten down recently, with conglomerate Wharf Holdings Ltd. s[: WARFY] rising 3% and New World Development Co. rising 3.3%. 9:47 p.m. Today
Australia stocks down as China worries hover LOS ANGELES (MarketWatch) - Australian stocks fell Tuesday, with losses taking hold after a sharp drop in the previous session spurred by worries about a credit crunch in China, the nation's largest trading partner. The S&P/ASX 200 was down 0.2% at 4,661.60, though banking stocks held to small gains. Australia & New Zealand Banking Group shares picked up 0.5% and Commonwealth Bank of Australia was higher by 0.5%. Concerns about economic growth in China weighed on mining stocks, with Rio Tinto Ltd. down 1.6% and BHP Billiton Ltd. off 1.2%. But shares of iron-ore producer Fortescue Metals Group Ltd. notched a 1.7% rise, reaching for their first advance in four sessions. The S&P/ASX 200 benchmark now stands about 0.2% higher for the year, nearly giving up its gain for 2013. 8:42 p.m. Today

Exit From the Bond Market Is Turning Into a Stampede: NYT I Alert FGC BOLSA - FGC FINANCIAL MARKETS; June 24,2013.


Compiled: June 24, 2013

Exit From the Bond Market Is Turning Into a Stampede
The sell-off prompted some calming words from a Fed official about its support for the economy — and by extension, the bond market. 

Statement of FTC Chairwoman Edith Ramirez on the U.S. Supreme Court's Decision in Polypore International, Inc. v. FTC: FTC Chairwoman Edith Ramirez Statements; June 24, 2013

FTC Banner

Federal Trade Commission Chairwoman Edith Ramirez issued the following statement regarding today's decision by the U.S. Supreme Court in Polypore International, Inc. v. FTC.  In the decision, the Court declined to consider a July 2012 U.S. Court of Appeals ruling that found Polypore’s acquisition of rival battery component maker Microporous was anticompetitive and ordered its divestiture. 

“Today’s U.S. Supreme Court ruling represents a victory for competition and consumers,” Ramirez said. “Not only does it affirm that Polypore’s 2008 acquisition of Microporous was anticompetitive, but by requiring the sale of Microporous it ensures that consumers will benefit from the competition between these rival firms.”

The Court’s decision to deny Polypore’s petition for certiorari in this case stems from a 2012 ruling by the U.S. Court of Appeals for the Eleventh Circuit, which upheld the FTC’s November 2010 Decision and Order against Polypore.  The Commission ruled that Polypore, a North Carolina-based maker of battery components, had illegally acquired Microporous Products, L.P., a rival component manufacturer.  The FTC found that the acquisition violated the antitrust laws by reducing competition in three of four North American markets for flooded lead-acid battery separators.  In March 2010, an administrative law judge at the Commission ruled in favor of the staff, leading to Polypore’s appeal to the full FTC and eventually the U.S. Court of Appeals.
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CNBC Latest Evening News; June 24, 2013.


The New York Times Afternoon Update; June 24, 2013: Justices Send Affirmative Action Case to Lower Court.


Justices Send Affirmative Action Case to Lower Court

The 7-to-1 ruling was both modest and significant, and its recalibration of how courts review the programs is likely to give rise to a wave of challenges to college admissions decisions.

Justices Agree to Hear Case on President's Recess Appointments

The Supreme Court agreed to decide whether President Obama violated the Constitution last year when he bypassed the Senate in making three recess appointments to the National Labor Relations Board.

U.S. Urges Russia to Hand Over Snowden

Exasperated U.S. officials asked Russia to expel Edward J. Snowden, who is wanted on spying charges, and said relations with China had been dealt a setback.

Hasty Exit Started With Pizza Inside a Hong Kong Hideout

During a meeting last week, Edward J. Snowden became deeply dismayed to learn that he could spend years in prison without a computer.

Offering Snowden Aid, WikiLeaks Gets Back in the Game

WikiLeaks assisted Edward J. Snowden in his escape from Hong Kong and is providing legal assistance, placing the organization back in the global spotlight.

Video: Affirmative Action's Contentious History

Sam Tanenhaus on the history of affirmative action, a program that dates back to the presidency of John F. Kennedy and has stirred debate for decades.

Opinionator | Anxiety

Pregnant, Pill-Free and Panicked

Once I got pregnant I had to abandon the drugs that made me stable enough to want to be become a mother in the first place.

Trading the Bustle of Hotels for Clubby Refinement

Despite sometimes restrictive house rules, overnight guests appreciate the genteel perks of private and university clubs.

Big Law Firm to Cut Lawyers and Some Partner Pay

The surprising move by Weil, Gotshal & Manges, one of the country's most prestigious and profitable law firms, underscores the financial difficulties facing the legal profession.

Rajaratnam Conviction Upheld by Appeals Court

Raj Rajaratnam's lawyers had argued that federal prosecutors had used deceptive methods to obtain permission from a judge to wiretap his cellphone.

Vodafone to Buy Kabel Deutschland for $10.1 Billion

The British telecommunications giant has agreed to buy the German cable operator Kabel Deutschland for 7.7 billion euros, or $10.1 billion.

Neiman Marcus Files to Go Public

Neiman Marcus filed to go public on Monday, more than eight years after agreeing to go private in a sale to the investment firms TPG Capital and Warburg Pincus.

Document nine, bourgeois Mexican migrants and Arabic: The Economist New Selected Articles; June 24, 2013.

A selection of new stories from
Analects: Tilting backwards
Americas view: Too bourgeois to bus tables
Banyan: Hazed and confused
Buttonwood: The long goodbye
Johnson: Too many armies and navies?

Tilting backwards
Whoever wrote it, a new policy paper is making Xi Jinping's government look chillingly retrograde
Americas view:
Too bourgeois to bus tables
A new report on Mexico's growing middle class
Hazed and confused
Singaporeans find it difficult to believe their stinging eyes
The long goodbye
The markets don't like the idea of losing monetary support
Too many armies and navies?
The Arabic language is a many-splendoured thing

Click Here!

U.S. stocks drop sharply; Dow off 140 points: Wall Street at Close Report by MarketWatch; June 24, 2013.

By Wallace Witkowski and Polya Lesova, MarketWatch 

SAN FRANCISCO (MarketWatch) U.S. stocks ended sharply lower on Monday, following a 5.3% tumble in the Shanghai stock market overnight spurred by worries over China’s economy and banking system. 

However, stocks on Wall Street pared some of their losses in the afternoon after Federal Reserve officials tried to downplay talk of tapering the central bank’s bond-buying program. Last week, the S&P 500 fell 2.1% on concerns the Fed will start pulling back monetary stimulus later this year if the economy improves further. Read about seven ways to spot a market top. 

After dropping 248 points during the session, the Dow Jones Industrial Average DJIA -0.94% closed down 139.84 points, or 0.9%, at 14,659.56. 

During the session, the index dropped as low as 14,551.27, and rallied back to within spitting distance of going positive, hitting a session high of 14,795.79. 

Five of the Dow’s 30 components closed higher. 

Bank of America Corp. BAC -3.07% was the biggest decliner on the Dow, with shares down 3.1%, followed by Hewlett-Packard Co. HPQ -2.98% with shares down 3%. 

Boeing Co. BA -2.13%  closed down 2.1% after one of its 787 Dreamliner planes flown by United Airlines UAL -1.93%  had to make an emergency landing Sunday due to a brake problem. 

The S&P 500 index SPX -1.21%  finished down 19.34 points, or 1.2%, at 1,573.09, with all of its 10 major sectors in negative terrain. The index posted an intraday low of 1,560.33 and a session high of 1,588.77. Materials and financials posted the biggest losses. 

The Nasdaq Composite index COMP -1.09%  closed down 36.49 points, or 1.1%, at 3,320.76, following an intraday low of 3,294.95 and a session high of 3,344.66. 

Shares of Apple Inc. AAPL -0.08%  fell 2.7% to $402.54 after Jefferies cut its price target to $405 from $420, saying the company may slow iPhone production. 

Decliners outnumbered advancers about 7 to 1 on the New York Stock Exchange and 7 to 2 on the Nasdaq. Composite NYSE volume topped 4.5 billion shares, while composite Nasdaq volume topped 1.9 billion shares by the close. 

Stocks pared intraday losses after Fed officials started making dovish comments Monday.

Minneapolis Fed President Narayana Kocherlakota said the market’s reaction to Fed comments is not yet a concern as long as higher bond yields do not harden over a long period of time. Also, Dallas Fed President Richard Fisher said in a Financial Times interview on Monday that central-bank members fully understood there would be a significant market reaction to last week’s Fed meeting and that big money is organizing itself like “feral hogs” to test the Fed. 

New York Fed President William Dudley said the Fed has fallen short of its inflation and employment objectives. Dudley said that Fed policy, while aggressive by historical standards, is not sufficiently accommodative. Read Dudley’s full speech. 
But, it’s not all about the Fed. Monday’s selloff is a continuation of renewed concerns over global uncertainty in China, Japan, and Brazil, said Dan Greenhaus, chief global strategist at BTIG LLC. 

“Right now, one has to think this has to be a buying opportunity,” Greenhaus said.
In the U.S. government-debt markets, the 10-year Treasury yield 10_YEAR +0.12% , which moves inversely to price, rose 2 basis points to 2.56%, after rising as high as 2.67% earlier in the session.
European stocks tumbled and Shanghai stocks melted down. 

Reuters Enlarge Image
The Shanghai Composite Index slides more than 5% Monday, spooking U.S. markets.
On Monday, the Shanghai Composite Index CN:SHCOMP -5.30%  plunged 5.3% to 1,963.24, its first close below 2,000 since December. The percentage drop was the worst since a 6.7% fall in August 2009. 

In fact, Chinese stocks have already ventured into bear country, noted Andrew Wilkinson, chief economic strategist at Miller Tabak & Co., with levels about 20% off from highs hit in February. 

A cash crunch in China took a toll on bank stocks. Short-term interbank interest rates in Shanghai were off last week’s highs, but still above 6% on Monday. China’s central bank warned that banks need to control liquidity better. 

The moves in China are not out of character with what policy makers there have been indicating lately, said Mark Luschini, chief investment strategist at Janney Montgomery Scott. 

“They are steps to moving toward a more market-based economy, and squashing out shadow-banking activity, which is a potential source of bad loans,” Luschini said. With China and the Fed weighing on U.S. stocks, Luschini sees a little more to go in the correction, but doesn’t expect the pullback to be in the 10% to 20% range. 

Goldman Sachs downgraded its GDP growth forecasts for China to 7.4% and 7.7% for 2013 and 2014, respectively, from 7.8% and 8.4%, previously. Read commentary: China’s alarming credit crunch 
“The recent tightening of the interbank market has sent a strong policy signal that the strong credit growth earlier in the year will likely not continue,” wrote Goldman economist Li Cui in a note. 

In corporate news, shares of Vanguard Health Systems Inc. VHS +67.34%  soared 67% after Tenet Healthcare Corp. THC +4.49%  agreed to acquire the company for $1.63 billion, or $21 in cash per Vanguard share, marking a 70% premium to Vanguard’s Friday close. Shares of Tenet Healthcare rose more than 4%. 

Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski. Polya Lesova is MarketWatch's New York deputy bureau chief. Follow her on Twitter @PolyaLesova.


Stocks End Lower, but Dow Recovers From 250 Point Loss; Vix Above 20: Wall Street at Close Report by CNBC; June 24, 2013.

Stocks closed in the red but well off their session lows Monday, as Treasury prices rose in choppy trading following comments from some Fed policymakers that downplayed worries over the end to the central bank's bond-buying program.

"This is a pretty amazing snap back, but what we're going to have to get used to for the rest of the summer would be volatility," said Art Hogan, managing director of Lazard Capital Markets.

Treasury prices gained in choppy trading. The benchmark 10-year note yield were just below 2.53 percent after earlier pushing around 2.66 percent.
Name Price Change %Change
DJIA Dow Jones Industrial Average 14659.56  -139.84      -0.94%
S&P 500 S&P 500 Index 1573.09    -19.34      -1.21%
NASDAQ Nasdaq Composite Index 3320.76     -36.49      -1.09%

The Dow Jones Industrial Average pared their losses after being down nearly 250 points at its session low. Bank of America and Hewlett-Packard led the laggards. Last week, the index erased more than 2 percent.

The S&P 500 and the Nasdaq also finished off their lows. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, ended above 20.

Among key S&P sectors, defensive areas such as utilities and consumer staples erased their losses, while materials and financials remained in the red.
Rougher June Ending?
June has proven to be the worst month for the Dow over the past 20 years. David Lutz, Stifel Nicolaus; Jack Ablin, BMO Private Bank; and CNBC's Herb Greenberg, discuss market opportunities now. 
Stocks were sharply lower for most of the session amid worries the Federal Reserve's stimulus measures may be winding down and a possible cash crunch in China. The Shanghai Composite suffered its worst one-day selloff in nearly four years. And Goldman Sachs became the latest bank to downgrade China's growth outlook, saying tighter financial conditions are a downside risk for the world's second largest economy. (Read More: China's Credit Squeeze Deals Fresh Blow to Stocks) "We're currently in a risk off environment that has built up over the recent days," said Michael Sheldon, chief market strategist at RDM Financial Group. "Here in the U.S., it will be important to watch the economic data over the next few months—if the economy can be supported with higher interest rates, investors should return to equities. But if the economy is unable to stand on its own and the Fed still wants to take away the punch bowl, that could spell more difficulty for the equity markets." (Read More: Buy Treasurys, as Bernanke Is All Talk: Bond Pros) The U.S. greenback rallied against a basket of currencies, trading near its highest level in almost three weeks.The dollar index extended its sharp gains from last week's 2 percent rally, its biggest weekly rally since November 2011. "The natural stopping point in the market may be the March and April lows in the 1,535-1,540 area…We could see a bit more downside as the market comes to grips that the end of the Fed stimulus program is in sight," said Sheldon. "Also, the key is to watch the bond market—the rates have increased rapidly and we need to see that settle down." Furthermore, the Bank for International Settlements (BIS) waved a red flag for central banks over the weekend, saying it was time to end ultra-lose monetary policy. BIS—known as the central bank for central banks—said in its annual report that current monetary policy in the U.S., euro zone, U.K. and Japan will not bring about much-needed labor and product market reforms, and is a recipe for failure.
Dallas Fed President Richard Fisher said he advocates a reduction of the central bank's stimulus program but stressed this should be done gradually. "I'm not in favor of going from wild turkey to cold turkey over night," Fisher, a voting member of the Federal Open Market Committee next year, said in a speech. Meanwhile, Minneapolis Fed President Narayana Kocherlakota said markets are wrong to view the Fed as having become more hawkish in its views on the need to tighten monetary policy. No major economic reports are scheduled for release Monday. Meanwhile, Apple briefly dropped below $400 a share for the first time since mid-April after Jefferies cut its price target on the tech giant to $405 a share from $420 and lowered its iPhone sales estimates for the third quarter. Separately, Apple announced that it had changed the way senior executives, including CEO Tim Cook, receive stock awards. On the M&A front, Vodafone agreed to buy Germany's largest cable operator Kabel Deutschland for 7.7 billion euros ($10 billion), trumping an offer from John Malone's Liberty Global. And Tenet Healthcare said it is acquiring Vanguard Health Systems in a deal worth nearly $4.3 billion, including debt, in an effort to expand into new geographies.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: )

Exclusive: TransLink hires companies for emergency repairs to Pattullo Bridge: BIV Today's Business News; June 24, 2013.


Exclusive: TransLink hires companies for emergency repairs to Pattullo Bridge

TransLink has hired two companies on emergency contracts for repairs to the rusting, decaying Pattullo Bridge.Notices of intent were published to


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