KARACHI: Karachi Stock Exchange (KSE) market capitalization this week recorded a fall by over Rs6 billion.KSE released data stated that the total market capitalization this week valued at Rs2820 billion, while the KSE-100 index listed companies’ aggregate value dwindled by Rs5 billion stood at Rs2490 billion as against Rs2495 billion last week.Sunday, November 30, 2008
KSE market capitalization down by over Rs6 billion
KARACHI: Karachi Stock Exchange (KSE) market capitalization this week recorded a fall by over Rs6 billion.KSE released data stated that the total market capitalization this week valued at Rs2820 billion, while the KSE-100 index listed companies’ aggregate value dwindled by Rs5 billion stood at Rs2490 billion as against Rs2495 billion last week.
Friday, November 28, 2008
CCP decides to issue show cause notice to KSE
KARACHI: The Competition Commission of Pakistan (CCP) has decided to issue a show cause notice to Karachi Stocks Market over imposing a price floor. Speaking to Geo News here on Friday, CCP Chairman Khalid Mirza said KSE’s decision to impose a floor in the market is unjustified. “One section of the investors was adversely affected over floor , he said, adding that Stock Market would be asked to clarify its position in this regard.
Tuesday, November 25, 2008
KSE witnesses dull session
KARACHI: Trade activities remained dull at the Karachi Stock Exchange (KSE) and volume hit lower than 100,000 shares on Tuesday.Investors mostly stayed away, due to which trade volume reached only 44,600 shares.The KSE 100-index today closed without any change at 9,187 points.However, investors showed some interest in the shares of Pak Commercial Leasing. Analysts say that trade activities would remain limited till the opening of market floor.Sunday, November 23, 2008
KSE inches up 3 points
KARACHI: The Trade volume partially improved at the Karachi Stock Exchange (KSE) as the benchmark KSE-100 index closed at 9,187 points this week.Activity this week at the local bourse remained thin and the turnover even plunged to 9,600 shares.
Investors were seen taking interest in the telecom sector.
The investors mostly remained sidelined due to delay in the launch of the support fund.
Analysts believed that until a support fund comes forward trading activity would remain lean.
Saturday, November 22, 2008
No progress in friends’ meeting, KSE clings onto previous level
Staff ReportKARACHI: The Karachi stock market continued to remain motionless on Tuesday, as the meeting of ‘Friends of Pakistan’ on Monday was inconclusive and there was no change in Moody’s negative views for Pakistan’s credit rating, which forced investors to adopt a wait-and-see policy, analysts said.The day was marked by the lowest ever volume of 19,660 shares, which is a record in the history of the stock market. The Karachi Stock Exchange (KSE) 100-share index remained unchanged at 9,184.09 points. The KSE 30 index and KMI 30 index also remained at 9,981.93 points and 10,003.99 points respectively. The market turnover went down 77.45 percent and traded 19,660 shares as compared to 87,200 shares traded in the previous session. The overall market capitalisation fell 0.03 percent and closed at Rs 2.826 trillion compared to Rs 2.827 trillion traded in the previous session. Out of seven companies, two closed in positive zone, three in negative while two remained unchanged. Like previous sessions, futures market continued to remain static as no activity was witnessed during the session. Analyst at Aziz Fida Hussein and Co said local bourses might soon witness a louder version of the ongoing silent protest as depicted by the turnover, which marginally managed to register five digit numbers, and it took 180 minutes after the opening bell for the first trade to take place. With no more commitments in the pipeline, friends have, as expected, opted for a more of consolatory attitude, delay in materialisation of any form of support is the way it looks it would be, thereby leaving no excuse for further extension of the freezing regime. Connecting unfreezing with the availability of the government fund is no longer a valid excuse, as the local bourses are no more the darling children of the government therefore expecting anything out of the way seems unrealistic as the authorities do not look keen in developing local equity markets for getting higher privatisation and the GDR proceeds rather they have shown comfort in using conventional tools, as displayed by recent step of going to the IMF.Analyst at Shahzad Chamdia Securities said investors remained concerned over delay in the market’s bailout plan of Rs 50 billion, despite various commitments from adviser to PM on finance.Southern Electric was the volume leader in the share market with 0.90 million shares as it closed at Rs 3.62 after opening at Rs 3.61 making a financial gain of one paisa. Gharibwal Cement traded 0.60 million shares as it closed at Rs 16.38 after opening at Rs 16.66 losing 28 paisas. Habib –ADM traded 0.30 million shares as it closed at Rs 9.69 after opening at Rs 9.99 losing 30 paisas. Mohammad Farooq traded 0.05 million shares as it closed at Rs 2.00 after opening at Rs 2.01 losing one paisa. Haydery Const traded 0.05 million shares as it closed at Rs 1.05 after opening at Rs 1.03 losing two paisas.
Prices higher on Taipei futures market
Prices on Taipei's stock futures market were higher Friday, with the Taiwan Stock Exchange Capitalization Weighted Index for December advancing 219 points to end at 4,121, with 125,163 contract transactions.
TAIEX Index futures for January gained 196 points to finish at 4,063, with 532 contracts traded, while March futures increased 200 points to close at 4,028, with 64 contracts changing hands.
June futures advanced 201 points to close at 4,015, with 54 contract transactions, while September futures rose 187 points to finish at 3,834, with 30 contract transactions.
Taiwan International Mercantile Exchange reference levels for TAIEX Index futures trading were set Friday at 3,902 for December, 3,867 for January, 3,828 for March, 3,814 for June and 3,647 for September.
The Taiwan stock exchange's benchmark TAIEX index gained 81.17 points to finish at 4,171.1, on turnover of NT$51.85 billion (US$1.55 billion).
Electronics (TE) and financial (TF) futures, which are sub-index futures based on Taiwan Stock Exchange-listed electronics shares and financial stocks, were mostly higher, with TE futures for December and March both surging by the maximum allowable 7 percent.
December TE futures rose 9.95 points to close at 152.35, with 6,211 contracts traded, while January TE futures increased 9.8 points to finish at 150.7, with 98 contract transactions.
March TE futures gained 9.65 points to finish at 147.75, with four contract transactions, while September TE futures rose 1.9 points to end at 132, with four contract transactions. No transactions were recorded for June.
December TF futures gained eight points to finish at 463, with 4,609 contracts changing hands, while January TF futures increased 0.4 points to finish at 456.4, with 71 contracts traded.
March TF futures lost 13 points to end at 447, with two contracts traded, while June TF futures declined 17 points to close at 442, with one contract traded. No transactions were recorded for September.
TAIEX Index futures for January gained 196 points to finish at 4,063, with 532 contracts traded, while March futures increased 200 points to close at 4,028, with 64 contracts changing hands.
June futures advanced 201 points to close at 4,015, with 54 contract transactions, while September futures rose 187 points to finish at 3,834, with 30 contract transactions.
Taiwan International Mercantile Exchange reference levels for TAIEX Index futures trading were set Friday at 3,902 for December, 3,867 for January, 3,828 for March, 3,814 for June and 3,647 for September.
The Taiwan stock exchange's benchmark TAIEX index gained 81.17 points to finish at 4,171.1, on turnover of NT$51.85 billion (US$1.55 billion).
Electronics (TE) and financial (TF) futures, which are sub-index futures based on Taiwan Stock Exchange-listed electronics shares and financial stocks, were mostly higher, with TE futures for December and March both surging by the maximum allowable 7 percent.
December TE futures rose 9.95 points to close at 152.35, with 6,211 contracts traded, while January TE futures increased 9.8 points to finish at 150.7, with 98 contract transactions.
March TE futures gained 9.65 points to finish at 147.75, with four contract transactions, while September TE futures rose 1.9 points to end at 132, with four contract transactions. No transactions were recorded for June.
December TF futures gained eight points to finish at 463, with 4,609 contracts changing hands, while January TF futures increased 0.4 points to finish at 456.4, with 71 contracts traded.
March TF futures lost 13 points to end at 447, with two contracts traded, while June TF futures declined 17 points to close at 442, with one contract traded. No transactions were recorded for September.
Stock markets tread water while investors question direction
TORONTO - Stock markets struggled to keep their head above water throughout the early afternoon as investors questioned if it was time to pick up the pieces or continue to drive markets lower.
The S&P/TSX composite index was essentially flat, up 10.18 points to 7,733.31, after gaining as much as 321 points earlier in the session.
The gold index was the major gainer, up 22 per cent, as the December bullion contract increased $51.80 to US$800.50. Barrick Gold Corp. (TSX:ABX) was ahead $7.10 to $33.83.
The mining index rose 12.6 per cent. Energy stocks were also higher, up 2.5 per cent as the December crude contract rose 44 cents to US$49.86 per barrel.
Bank and insurance stocks crumbled 5.1 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.
Since the end of last week, TD's shares have fallen 26 per cent from $53.57.
The beaten-down Canadian dollar - which plunged 2.52 cents Thursday - was at 77.61 cents US, up 0.30 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.
Wall Street stocks also face a volatile session with the Dow Jones industrial average rose 41.89 points to 7,594. The Nasdaq composite was behind one point at 1,315 and the S&P 500 moved up 4.14 to 757.
The market is digesting a Wall Street Journal report that Citigroup Inc. is considering selling all or part of itself following a plunge in its stock price - 26 per cent on Thursday alone.
HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 41 per cent to $3.10 and Lundin rose 11 per cent to $1.12.
In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares fell 35 cents to $16.19.
Catalyst Paper Corp. (TSX:CTL) fell four cents to 26 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead 54 cents to $54.53 on the day the company debuts the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.
The decrease in selling pressure on Friday was somewhat expected with key markets sliding drastically in recent sessions.
On Thursday, Toronto's main index dropped nine per cent or more than 750 points at its lowest level since October 2003, and down 49 per cent from its June peak of 15,073.
The S&P/TSX composite index was essentially flat, up 10.18 points to 7,733.31, after gaining as much as 321 points earlier in the session.
The gold index was the major gainer, up 22 per cent, as the December bullion contract increased $51.80 to US$800.50. Barrick Gold Corp. (TSX:ABX) was ahead $7.10 to $33.83.
The mining index rose 12.6 per cent. Energy stocks were also higher, up 2.5 per cent as the December crude contract rose 44 cents to US$49.86 per barrel.
Bank and insurance stocks crumbled 5.1 per cent as TD Bank (TSX:TD) shares continued to decline, down a further eight per cent to $40.13. The bank disclosed Thursday a $350 million in quarterly credit trading losses.
Since the end of last week, TD's shares have fallen 26 per cent from $53.57.
The beaten-down Canadian dollar - which plunged 2.52 cents Thursday - was at 77.61 cents US, up 0.30 of a cent after Statistics Canada reported the headline inflation rate eased last month to 2.6 per cent, from 3.4 per cent in September.
Wall Street stocks also face a volatile session with the Dow Jones industrial average rose 41.89 points to 7,594. The Nasdaq composite was behind one point at 1,315 and the S&P 500 moved up 4.14 to 757.
The market is digesting a Wall Street Journal report that Citigroup Inc. is considering selling all or part of itself following a plunge in its stock price - 26 per cent on Thursday alone.
HudBay Minerals Inc. (TSX:HBM) and Lundin Mining Corp. (TSX:LUN) plan to merge in an all-stock deal worth $814 million, based on current market prices. HudBay shares were down 41 per cent to $3.10 and Lundin rose 11 per cent to $1.12.
In earnings, Sears Canada Inc. (TSX:SCC) reported a third-quarter profit of $68.9 million as same-store sales increased 0.9 per cent from the comparable period a year ago despite a tough retail environment. Its shares fell 35 cents to $16.19.
Catalyst Paper Corp. (TSX:CTL) fell four cents to 26 cents after the company announced a tentative four-year contract agreement with the Communications, Energy and Paperworkers Union of Canada at its B.C. pulp and paper operations.
Research in Motion (TSX:RIM) shares were ahead 54 cents to $54.53 on the day the company debuts the BlackBerry Storm touch-screen mobile device in North America - a product intended to steal market share from Apple Inc.'s iPhone.
The decrease in selling pressure on Friday was somewhat expected with key markets sliding drastically in recent sessions.
On Thursday, Toronto's main index dropped nine per cent or more than 750 points at its lowest level since October 2003, and down 49 per cent from its June peak of 15,073.
Toronto Stock Exchange Revised Listing Fee Schedule
21/11/08
TMX Group Inc. (TSX: X) yesterday announced a revised listing fee schedule for Toronto Stock Exchange (TSX). The new fee schedule will apply starting January 1, 2009.
TSX expects most of its individual listed issuers to experience a reduction in sustaining fees in 2009, due to lower market capitalization. Overall, this reduction will be partially offset by an estimated $3M to $4M aggregate increase in sustaining fees, as a result of the introduction of the new schedule. The estimated increase in sustaining fees is based on market capitalization as of November 4, 2008. Listing fees at all major exchanges were reviewed to ensure TSX fees remain competitive with those marketplaces.
The amendments to the listing fee schedule include changes to the base and maximum sustaining fees for corporate issuers (variable fee rates remain unchanged); the fees payable for corporate reorganizations, which include income trust conversions; and the maximum fees payable for security-based compensation arrangements (minimum fees and the variable fee rates remain unchanged). Original listing and additional listing fees (other than for security-based compensation arrangements) remain unchanged.
TMX Group Inc. (TSX: X) yesterday announced a revised listing fee schedule for Toronto Stock Exchange (TSX). The new fee schedule will apply starting January 1, 2009.
TSX expects most of its individual listed issuers to experience a reduction in sustaining fees in 2009, due to lower market capitalization. Overall, this reduction will be partially offset by an estimated $3M to $4M aggregate increase in sustaining fees, as a result of the introduction of the new schedule. The estimated increase in sustaining fees is based on market capitalization as of November 4, 2008. Listing fees at all major exchanges were reviewed to ensure TSX fees remain competitive with those marketplaces.
The amendments to the listing fee schedule include changes to the base and maximum sustaining fees for corporate issuers (variable fee rates remain unchanged); the fees payable for corporate reorganizations, which include income trust conversions; and the maximum fees payable for security-based compensation arrangements (minimum fees and the variable fee rates remain unchanged). Original listing and additional listing fees (other than for security-based compensation arrangements) remain unchanged.
Idearc delisted from New York Stock Exchange
03:59 PM CST on Friday, November 21, 2008
By ANDREW D. SMITH / The Dallas Morning Newsasmith@dallasnews.com
Shares of the Yellow Pages publisher Idearc Inc. began trading over-the-counter Friday, one day after the Grapevine-based company was delisted from the New York Stock Exchange.
The company, which was spun off from Verizon Communications in late 2006, has struggled to make the transition from print to Web. Although Idearc remains profitable, its sales have steadily fallen in recent quarters.
The company's stock has fallen, too, from the $25 mark a year ago to 8 cents at the close of trading Friday. This very low valuation caused the delisting.
By ANDREW D. SMITH / The Dallas Morning Newsasmith@dallasnews.com
Shares of the Yellow Pages publisher Idearc Inc. began trading over-the-counter Friday, one day after the Grapevine-based company was delisted from the New York Stock Exchange.
The company, which was spun off from Verizon Communications in late 2006, has struggled to make the transition from print to Web. Although Idearc remains profitable, its sales have steadily fallen in recent quarters.
The company's stock has fallen, too, from the $25 mark a year ago to 8 cents at the close of trading Friday. This very low valuation caused the delisting.
Friday, November 21, 2008
SBP issues over Rs23 bln T-Bills
Friday, November 21, 2008 KARACHI: The State Bank of Pakistan (SBP) Friday mopped up Rs23.70 billion at 6.4 per cent interest for one day by issuing treasury bills.The SBP performed the open market operation to absorb excess liquidity from the banking system.European, Asian markets rebound despite US losses
Friday, November 21, 2008 LONDON: European and Asian stock markets rebounded Friday as expectations of a recovery on Wall Street prompted investors to scoop up battered financial and energy shares.The FTSE 100 index of leading British shares was up 42.78 points, or 1.1 percent, at 3,917.77, while Germany's DAX was 46.59 points, or 1.1 percent, higher at 4,266.79. The CAC-40 in France was up 34.62 points, or 1.2 percent, at 3,015.04.The modest bounceback in Europe came after Asian markets recouped early losses in the wake of the sell-off on Wall Street to end up in positive territory. Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,763.81.Worries about the future of both the U.S. car industry and Citigroup Inc., as well as the fall in the price of oil to three-year lows below $50 a barrel fueled the selling on Wall Street Thursday. The Dow Jones index of leading U.S. shares suffered its worst two-day percentage decline — 10.6 percent — since October 1987's stock market crash, while the broader Standard & Poor's 500 index slumped to its lowest level in 11 years.However, U.S. stock index futures were sharply higher as investors look to buy up heavily beaten stocks. Dow futures were up 303 points, or 4 percent, at 7,787 while S&P futures were up 31.9 points, or 4.3 percent, at 780.2."The only saving grace is that the cherry pickers may now come in and start buying up some keenly priced stock," said Matt Buckland, a dealer at CMC Markets.Financial stocks in Europe, such as BNP Paribas SA, HSBC PLC and UBS AG, have led the way in Europe Friday, though heavyweight energy stocks in London, like BP PLC and Royal Dutch Shell have recovered strongly as oil prices pushed back up above $50 a barrel.With a dearth of economic news on Friday, stock markets in Europe and the U.S. will be keeping a close eye at developments at Citigroup, which saw its shares tumble Thursday to their lowest level in more than 15 years, below $5 a share, despite a Saudi prince's decision to boost his stake in the bank.Prince Alwaleed bin Talal, a longtime investor in Citigroup, said he plans to increase his stake in the bank to 5 percent from less than 4 percent. He also expressed "his full and complete support" of the bank's management — including Vikram Pandit, who has been CEO for less than a year.Citigroup is widely considered the most vulnerable among the major U.S. banks, failing to turn a profit in the past four quarters when rivals such as JPMorgan Chase & Co. and Bank of America Corp. managed to do so."Today will likely be another fluid day with rumors driving the market," said Hans Redeker, an analyst at BNP Paribas.Earlier in Asia, South Korea's Kospi surged 5.8 percent and Australia's market closed up 1.9 percent after initially falling more than 3 percent. But mainland China's Shanghai Composite index slipped 0.7 percent and markets in the Philippines and Indonesia also sank.Financial, real estate and technology stocks led the recovery in Asia, particularly in Hong Kong, where HSBC Holdings PCL jumped 4.5 percent, China Construction Bank Corp. rose 6.7 percent and Standard Chartered Bank increased 4.5 percent."There's a little bit of strength coming back into beaten-down stocks," said Andrew Yates, vice president of foreign institutional sales at Asia Plus Securities in Bangkok. "But the volumes are not great so it's difficult to call a bottom particularly with the macro picture being so weak."Oil prices, which have fallen to a third of their July peak, edged up in London trading. Light, sweet oil for January delivery rose 85 cents to $50.27 a barrel on the New York Mercantile Exchange after earlier falling as low as $48.25, the lowest since May 2005.In currencies, the dollar rose 1.8 percent to 95.29 yen while the euro was up 1.3 percent at $1.2597.European, Asian markets rebound despite US losses
Friday, November 21, 2008 LONDON: European and Asian stock markets rebounded Friday as expectations of a recovery on Wall Street prompted investors to scoop up battered financial and energy shares.The FTSE 100 index of leading British shares was up 42.78 points, or 1.1 percent, at 3,917.77, while Germany's DAX was 46.59 points, or 1.1 percent, higher at 4,266.79. The CAC-40 in France was up 34.62 points, or 1.2 percent, at 3,015.04.The modest bounceback in Europe came after Asian markets recouped early losses in the wake of the sell-off on Wall Street to end up in positive territory. Japan's Nikkei 225 stock average rose 207.75, or 2.7 percent, to 7,910.79, and Hong Kong's Hang Seng index jumped 360.64 points, or 2.9 percent, to 12,763.81.Worries about the future of both the U.S. car industry and Citigroup Inc., as well as the fall in the price of oil to three-year lows below $50 a barrel fueled the selling on Wall Street Thursday. The Dow Jones index of leading U.S. shares suffered its worst two-day percentage decline — 10.6 percent — since October 1987's stock market crash, while the broader Standard & Poor's 500 index slumped to its lowest level in 11 years.However, U.S. stock index futures were sharply higher as investors look to buy up heavily beaten stocks. Dow futures were up 303 points, or 4 percent, at 7,787 while S&P futures were up 31.9 points, or 4.3 percent, at 780.2."The only saving grace is that the cherry pickers may now come in and start buying up some keenly priced stock," said Matt Buckland, a dealer at CMC Markets.Financial stocks in Europe, such as BNP Paribas SA, HSBC PLC and UBS AG, have led the way in Europe Friday, though heavyweight energy stocks in London, like BP PLC and Royal Dutch Shell have recovered strongly as oil prices pushed back up above $50 a barrel.With a dearth of economic news on Friday, stock markets in Europe and the U.S. will be keeping a close eye at developments at Citigroup, which saw its shares tumble Thursday to their lowest level in more than 15 years, below $5 a share, despite a Saudi prince's decision to boost his stake in the bank.Prince Alwaleed bin Talal, a longtime investor in Citigroup, said he plans to increase his stake in the bank to 5 percent from less than 4 percent. He also expressed "his full and complete support" of the bank's management — including Vikram Pandit, who has been CEO for less than a year.Citigroup is widely considered the most vulnerable among the major U.S. banks, failing to turn a profit in the past four quarters when rivals such as JPMorgan Chase & Co. and Bank of America Corp. managed to do so."Today will likely be another fluid day with rumors driving the market," said Hans Redeker, an analyst at BNP Paribas.Earlier in Asia, South Korea's Kospi surged 5.8 percent and Australia's market closed up 1.9 percent after initially falling more than 3 percent. But mainland China's Shanghai Composite index slipped 0.7 percent and markets in the Philippines and Indonesia also sank.Financial, real estate and technology stocks led the recovery in Asia, particularly in Hong Kong, where HSBC Holdings PCL jumped 4.5 percent, China Construction Bank Corp. rose 6.7 percent and Standard Chartered Bank increased 4.5 percent."There's a little bit of strength coming back into beaten-down stocks," said Andrew Yates, vice president of foreign institutional sales at Asia Plus Securities in Bangkok. "But the volumes are not great so it's difficult to call a bottom particularly with the macro picture being so weak."Oil prices, which have fallen to a third of their July peak, edged up in London trading. Light, sweet oil for January delivery rose 85 cents to $50.27 a barrel on the New York Mercantile Exchange after earlier falling as low as $48.25, the lowest since May 2005.In currencies, the dollar rose 1.8 percent to 95.29 yen while the euro was up 1.3 percent at $1.2597.Gas prices sink below $2
For the first time in more than three-and-a-half years, the average price of gasoline fell below $2 a gallon, according to a national survey released Friday.
The nationwide average price dropped to $1.989 a gallon, down from $2.02 on Thursday, according to motorist group AAA, which bases its information on credit card swipes from up to 100,000 service stations.
This is the first time that gas has dipped below $2 a gallon since March 9, 2005, when the nationwide average was $1.9932, according to Ben Brockwell, director of data and pricing services for Oil Price Information Services.
OPIS tracks fuel prices in conjunction with AAA and Wright Express, an information provider for the commercial and government vehicle fleet industries.
Inexpensive gasoline stands in stark contrast to this summer's record high prices, which sparked a plunge in sales of pickups and sport utility vehicles, became a headline issue in the presidential campaign and provoked widespread public outrage.
The nationwide average price of unleaded hit its all-time high of $4.114 a gallon on July 17, 2008 - or more than double the current price.
"This summer, we thought [gas for $2 a gallon] was impossible, and now we have crossed the threshold," said Brockwell. "It's an important psychological barrier."
Of course, lower gas prices will help drivers, but Americans are suffering from a troubled economy marked by mounting job losses and rising unemployment
The nationwide average price dropped to $1.989 a gallon, down from $2.02 on Thursday, according to motorist group AAA, which bases its information on credit card swipes from up to 100,000 service stations.
This is the first time that gas has dipped below $2 a gallon since March 9, 2005, when the nationwide average was $1.9932, according to Ben Brockwell, director of data and pricing services for Oil Price Information Services.
OPIS tracks fuel prices in conjunction with AAA and Wright Express, an information provider for the commercial and government vehicle fleet industries.
Inexpensive gasoline stands in stark contrast to this summer's record high prices, which sparked a plunge in sales of pickups and sport utility vehicles, became a headline issue in the presidential campaign and provoked widespread public outrage.
The nationwide average price of unleaded hit its all-time high of $4.114 a gallon on July 17, 2008 - or more than double the current price.
"This summer, we thought [gas for $2 a gallon] was impossible, and now we have crossed the threshold," said Brockwell. "It's an important psychological barrier."
Of course, lower gas prices will help drivers, but Americans are suffering from a troubled economy marked by mounting job losses and rising unemployment
ASIA MARKETS: Regional Stocks Extend String Of Losses
Asian markets fell sharply Friday on worries about the impact of deteriorating global economic conditions, with South Korean shares sliding for a ninth straight session and Australia, Taiwan and Hong Kong extending losses into a fifth consecutive trading day.
In Japan, the Nikkei slid as well, with Inpex Holdings Inc. declining as crude-oil prices dropped below $50 a barrel. Exporters such as Honda Motor Co. also lost ground after U.S. stocks dived overnight, and on an appreciation in the yen against the U.S. dollar as investors rolled back risky carry trades.
"The worrying thing is that the declines aren't slowing down, they're speeding up," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong. "We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money.".
China's Shanghai Composite sank 4% to 1,905.01 on reports that mainland unemployment was likely to worsen in the wake of the global economic crisis.
The decline came after Yin Weimin, the minister of human resources and social security, reportedly said the global slowdown had a deep impact on exporters and labor-intensive industries. "Our judgment is that in the first quarter of next year, there will be even greater difficulties," Yin said, according to a Wall Street Journal report.
South Korea's Kospi slipped 0.9% to 940.08, after losing 17.7% in the previous eight sessions.
In Tokyo, the Nikkei 225 Average dropped as low as 7,406.18 in the morning session before narrowing losses in the afternoon. The benchmark recently was down 1.4% at 7,599.11 while the broader Topix fell 1.7% to 769.47.
Australia's S&P/ASX 200 lost 2.7% to 3,261.70 and New Zealand's NZX 50 index gave up 2.6% to 2,576.92.
Singapore's Straits Times index slid 2% to 1,581.93, while Taiwan's Taiex gave up 1.6% to 4,024.65.
Regional detail
Shares declined across the board in Shanghai, with China Eastern Airlines Corp. (CEA) shedding 9.2%, Baoshan Iron & Steel Co. shrinking 5.1% and China Life Insurance Co. (LFC) dropping 3.9%.
Construction and financial companies ranked among the big losers in Seoul on worries about economic growth, with Daewoo Engineering & Construction Co. losing 6% and GS Engineering & Construction Corp. (GSNGF) slumping 8.4%. Shares of KB Financial Group (KB) plunged 7.3%.
Among Japanese exporters, Honda Motor Co. (HMC) shrank 2.5% and Nintendo Co. ( NTDOY) lost 3%.
The drop in Honda shares, also for a fourth straight session, came after The Wall Street Journal reported the Japanese automaker planned to reduce output in North America by another 18,000 units by the end of March 31, in response to lower sales. Including cuts announced earlier, the company will have reduced production by 50,000 units since August.
In currency trading, the U.S. dollar bought 94.26 yen, compared with 95.01 yen late Thursday.
Energy-related stocks also were hurt after December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The December contract expired overnight. January futures, which closed at $49.42 a barrel Thursday on the Nymex, slipped as much as 82 cents to $48.60 a barrel in electronic trading.
In Tokyo, Inpex Holdings fell 2.4% and commodities trader Marubeni Corp. ( MARUY) slid 2.5%. In Sydney trading, Woodside Petroleum (WOPEY) stock gave up 7.6%, while BHP Billiton (BHP) lost 3.1% for its eighth loss in nine sessions.
In Hong Kong, Cnooc (CEO) lost 5.2% while PetroChina Co. (PTR) gave up 3.3%.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.
In Japan, the Nikkei slid as well, with Inpex Holdings Inc. declining as crude-oil prices dropped below $50 a barrel. Exporters such as Honda Motor Co. also lost ground after U.S. stocks dived overnight, and on an appreciation in the yen against the U.S. dollar as investors rolled back risky carry trades.
"The worrying thing is that the declines aren't slowing down, they're speeding up," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong. "We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money.".
China's Shanghai Composite sank 4% to 1,905.01 on reports that mainland unemployment was likely to worsen in the wake of the global economic crisis.
The decline came after Yin Weimin, the minister of human resources and social security, reportedly said the global slowdown had a deep impact on exporters and labor-intensive industries. "Our judgment is that in the first quarter of next year, there will be even greater difficulties," Yin said, according to a Wall Street Journal report.
South Korea's Kospi slipped 0.9% to 940.08, after losing 17.7% in the previous eight sessions.
In Tokyo, the Nikkei 225 Average dropped as low as 7,406.18 in the morning session before narrowing losses in the afternoon. The benchmark recently was down 1.4% at 7,599.11 while the broader Topix fell 1.7% to 769.47.
Australia's S&P/ASX 200 lost 2.7% to 3,261.70 and New Zealand's NZX 50 index gave up 2.6% to 2,576.92.
Singapore's Straits Times index slid 2% to 1,581.93, while Taiwan's Taiex gave up 1.6% to 4,024.65.
Regional detail
Shares declined across the board in Shanghai, with China Eastern Airlines Corp. (CEA) shedding 9.2%, Baoshan Iron & Steel Co. shrinking 5.1% and China Life Insurance Co. (LFC) dropping 3.9%.
Construction and financial companies ranked among the big losers in Seoul on worries about economic growth, with Daewoo Engineering & Construction Co. losing 6% and GS Engineering & Construction Corp. (GSNGF) slumping 8.4%. Shares of KB Financial Group (KB) plunged 7.3%.
Among Japanese exporters, Honda Motor Co. (HMC) shrank 2.5% and Nintendo Co. ( NTDOY) lost 3%.
The drop in Honda shares, also for a fourth straight session, came after The Wall Street Journal reported the Japanese automaker planned to reduce output in North America by another 18,000 units by the end of March 31, in response to lower sales. Including cuts announced earlier, the company will have reduced production by 50,000 units since August.
In currency trading, the U.S. dollar bought 94.26 yen, compared with 95.01 yen late Thursday.
Energy-related stocks also were hurt after December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The December contract expired overnight. January futures, which closed at $49.42 a barrel Thursday on the Nymex, slipped as much as 82 cents to $48.60 a barrel in electronic trading.
In Tokyo, Inpex Holdings fell 2.4% and commodities trader Marubeni Corp. ( MARUY) slid 2.5%. In Sydney trading, Woodside Petroleum (WOPEY) stock gave up 7.6%, while BHP Billiton (BHP) lost 3.1% for its eighth loss in nine sessions.
In Hong Kong, Cnooc (CEO) lost 5.2% while PetroChina Co. (PTR) gave up 3.3%.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.
Most Asian markets rebounded strongly in afternoon trading Friday, with financials such as Mizuho Financial Group and HSBC Holdings leading the bounce after a string of recent declines.
The recovery came in the wake of a Wall Street Journal report that Citigroup was weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright.
Hong Kong's Hang Seng Index dropped as low as 11,814.81 before bouncing sharply to end the morning session at 12,851.78, 4.5% higher.
South Korea's Kospi, which dropped during the previous eight sessions, jumped 3.2% to 978.72.
In Tokyo, the Nikkei rebounded as well and was recently up 0.9% at 7,770.50, while the broader Topix index climbed 0.3% to 784.83.
Australia's S&P/ASX 200 rose 1.7% to 3,408.60 and New Zealand's NZX 50 index gave up 2.5% to 2,578.10.
Singapore's Straits Times index gained 0.9% to 1,628.23, while Taiwan's Taiex rose 1.8% to 4,164.01.
China's Shanghai Composite, which sank more than 4% at one point during the session on reports that mainland unemployment was likely to worsen in the wake of the global economic crisis, was recently down 0.9% to 1,966.92.
"We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong.
Regional detail
Banks led the regionwide gains, with HSBC Holdings (HBC) gaining 4.5% and China Construction Bank soaring 6.7%, reversing early declines.
In Tokyo, Mizuho Financial Group (MFG) bounced 10.1%, while Commonwealth Bank of Australia bounced 4.4% in Sydney.
In currency trading, the U.S. dollar bought 94.55 yen, compared with 95.01 yen late Thursday.
Overnight on the New York Mercantile Exchange, December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The contract expired overnight. January crude-oil futures, which closed at $49.42 a barrel on the Nymex, slipped as much as 82 cents to $ 48.60 a barrel in electronic trading.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.
The recovery came in the wake of a Wall Street Journal report that Citigroup was weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright.
Hong Kong's Hang Seng Index dropped as low as 11,814.81 before bouncing sharply to end the morning session at 12,851.78, 4.5% higher.
South Korea's Kospi, which dropped during the previous eight sessions, jumped 3.2% to 978.72.
In Tokyo, the Nikkei rebounded as well and was recently up 0.9% at 7,770.50, while the broader Topix index climbed 0.3% to 784.83.
Australia's S&P/ASX 200 rose 1.7% to 3,408.60 and New Zealand's NZX 50 index gave up 2.5% to 2,578.10.
Singapore's Straits Times index gained 0.9% to 1,628.23, while Taiwan's Taiex rose 1.8% to 4,164.01.
China's Shanghai Composite, which sank more than 4% at one point during the session on reports that mainland unemployment was likely to worsen in the wake of the global economic crisis, was recently down 0.9% to 1,966.92.
"We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong.
Regional detail
Banks led the regionwide gains, with HSBC Holdings (HBC) gaining 4.5% and China Construction Bank soaring 6.7%, reversing early declines.
In Tokyo, Mizuho Financial Group (MFG) bounced 10.1%, while Commonwealth Bank of Australia bounced 4.4% in Sydney.
In currency trading, the U.S. dollar bought 94.55 yen, compared with 95.01 yen late Thursday.
Overnight on the New York Mercantile Exchange, December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The contract expired overnight. January crude-oil futures, which closed at $49.42 a barrel on the Nymex, slipped as much as 82 cents to $ 48.60 a barrel in electronic trading.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.
EUROPE MARKETS: Shares Gain In Europe After Report Citi May Be Sold
Stocks in Europe edged higher in early trading on Friday, with a report that Citigroup may be sold helping shares on the Continent to look past the pummeling taken on Wall Street in the prior session.
On Thursday, the S&P 500 fell to levels not seen since the spring of 1997 as U.S. stocks were crushed again.
But with a report that Citigroup may sell itself, U.S. stock futures surged, with futures on the Dow Jones Industrial Average up 304 points.
The Dow Jones Stoxx 600 rose 0.6% to 187.82, led by the miners and insurers that fell sharply on Thursday.
The U.K. FTSE 100 rose 0.4% to 3,888.77, the French CAC 40 added 0.7% to 3, 002.56 and the German DAX 30 added 0.4% to 4,236.47.
Strategists at Goldman Sachs said earnings estimates have been revised downward for 70% of the companies in the Stoxx 600.
"Equity markets continue to face a steady stream of bad corporate and macroeconomic news. What is worse, the market still sells off on such news, suggesting that it is not all in the price," they said.
"We would wait until the market stops falling on bad news before we turn positive."
Of stocks in the spotlight, Barclays (BCS) rose 3.3% as one of its top shareholders, Legal & General, said it would support the 7 billion pound ($10.4 billion) fund-raising plan because of the "exceptional circumstances" that a failure to raise the money could bring. But it said in the future it will "vote against capital raisings that disregard preemption rights."
Legal & General , which has been erratic through the week, rose 4.5%.
Sacyr-Vallehermoso shot up 16.7% after a report that a Libyan investment fund may want to buy Sacyr's 20% stake in Repsol (REP).
Meanwhile, Lukoil also is said to be in talks to buy Repsol stakes both from Sacyr and from Criteria .
Repsol and Criteria shares were both halted by the Spanish securities regulator.
SolarWorld rose 8.4%, recovering some of the losses from its heavily criticized attempt to buy four plants from the Opel unit of General Motors.
On Thursday, the S&P 500 fell to levels not seen since the spring of 1997 as U.S. stocks were crushed again.
But with a report that Citigroup may sell itself, U.S. stock futures surged, with futures on the Dow Jones Industrial Average up 304 points.
The Dow Jones Stoxx 600 rose 0.6% to 187.82, led by the miners and insurers that fell sharply on Thursday.
The U.K. FTSE 100 rose 0.4% to 3,888.77, the French CAC 40 added 0.7% to 3, 002.56 and the German DAX 30 added 0.4% to 4,236.47.
Strategists at Goldman Sachs said earnings estimates have been revised downward for 70% of the companies in the Stoxx 600.
"Equity markets continue to face a steady stream of bad corporate and macroeconomic news. What is worse, the market still sells off on such news, suggesting that it is not all in the price," they said.
"We would wait until the market stops falling on bad news before we turn positive."
Of stocks in the spotlight, Barclays (BCS) rose 3.3% as one of its top shareholders, Legal & General, said it would support the 7 billion pound ($10.4 billion) fund-raising plan because of the "exceptional circumstances" that a failure to raise the money could bring. But it said in the future it will "vote against capital raisings that disregard preemption rights."
Legal & General , which has been erratic through the week, rose 4.5%.
Sacyr-Vallehermoso shot up 16.7% after a report that a Libyan investment fund may want to buy Sacyr's 20% stake in Repsol (REP).
Meanwhile, Lukoil also is said to be in talks to buy Repsol stakes both from Sacyr and from Criteria .
Repsol and Criteria shares were both halted by the Spanish securities regulator.
SolarWorld rose 8.4%, recovering some of the losses from its heavily criticized attempt to buy four plants from the Opel unit of General Motors.
ASIA MARKETS: Stocks In Asia Erase Early Losses To End Higher
Most Asian markets sprang from sharp intraday losses to end higher Friday, with trader speculation that China may cut interest rates further and that the U.S. may announce stops auto industry over the weekend contributing to the bounce.
Financials such as Mizuho Financial Group and HSBC Holdings led the advance after a string of declines recently.
The gains came in the wake of a Wall Street Journal report that Citigroup was weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright.
Linus Yip, strategist at First Shanghai Securities, said expectation of a rate cut by the Chinese central bank over the weekend helped lift China-related shares in Hong Kong, where the market declined during the previous four sessions, but not on the mainland, as the Shanghai market had come off its lows and was undergoing a consolidation.
Hong Kong's Hang Seng Index dropped as low as 11,814.81 during the session, before bouncing to end the day 2.9% up at 12,659.20.
China's Shanghai Composite, which slumped as much as 4.6% at one point on reports that the mainland's unemployment was likely to worsen in the wake of the global economic crisis, briefly ventured into positive territory in the afternoon, before slipping back into the red to end at 1,983.76, a decline of 0.7%.
"We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong.
In an interview with the CNBC news channel separately, Marc Faber, editor and publisher of the Gloom, Boom and Doom report said weakening consumer demand in the U.S. would hurt exporters such as China the most.
"I'd be very careful about the Chinese economy. I think the Chinese economy isn't growing at 8% at the present time. Most likely it's already in contraction," he said.
In Tokyo, the Nikkei 225 rebounded as well, ending 2.7% higher at 7,910.79, while the broader Topix index climbed 2.6% to 802.69. The Bank of Japan as expected held interest rates at 0.3%.
South Korea's Kospi, which dropped during the previous eight sessions, jumped 5.8% to end at 802.69.
Taiwan's Taiex rose 2% to 4,171.10, while in afternoon trading, India's Sensex rose 3.5% to 8,748.97 and Singapore's Straits Times index gained 3% to 1,662.10.
Australia's S&P/ASX 200 rose 1.9% to 3,416.50 and New Zealand's NZX 50 index gave up 2.5% to 2,578.10.
Speculation of U.S. auto industry rescue
Traders said rumors that the U.S. may announce measures to rescue the auto industry also swirled the markets, contributing to the market's rebound in the afternoon.
"I think investors are watching [developments in] the U.S. car market. Any rescue package from the government should help the markets rebound," said Patrick Shum, strategist at Karl Thomson Securities.
Banks led the regionwide gains, with market heavyweight HSBC Holdings (HBC) gaining 1.9% and China Construction Bank soaring 6.1%, reversing early declines.
In Tokyo, Mizuho Financial Group (MFG) surged 13.9%, while Commonwealth Bank of Australia bounced 5.6% in Sydney, while KB Financial Group (KB), which at one point slumped more than 13%, ended 1.8% up in Seoul.
Some energy-related shares broadly declined after crude-oil prices plunged overnight. Woodside Petroleum (WOPEY) dropped 5.4% in Sydney and Cnooc (CEO) lost 2.5% in Hong Kong, while PetroChina Co. (PTR) slipped 0.5% in Shanghai.
Overnight on the New York Mercantile Exchange, December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The contract expired overnight.
January crude-oil futures, which closed at $49.42 a barrel on the Nymex, rose 75 cents to $50.17 a barrel in electronic trading, after dropping as low as $ 48.25 earlier in the day.
In currency trading, the U.S. dollar bought 95.13 yen, compared with 95.01 yen late Thursday.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.
Financials such as Mizuho Financial Group and HSBC Holdings led the advance after a string of declines recently.
The gains came in the wake of a Wall Street Journal report that Citigroup was weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright.
Linus Yip, strategist at First Shanghai Securities, said expectation of a rate cut by the Chinese central bank over the weekend helped lift China-related shares in Hong Kong, where the market declined during the previous four sessions, but not on the mainland, as the Shanghai market had come off its lows and was undergoing a consolidation.
Hong Kong's Hang Seng Index dropped as low as 11,814.81 during the session, before bouncing to end the day 2.9% up at 12,659.20.
China's Shanghai Composite, which slumped as much as 4.6% at one point on reports that the mainland's unemployment was likely to worsen in the wake of the global economic crisis, briefly ventured into positive territory in the afternoon, before slipping back into the red to end at 1,983.76, a decline of 0.7%.
"We're looking forward to four quarters of economic data declining at an increasing rate. We're also seeing more layoffs even in the region here ... that is the corporate equivalent of what consumers globally are doing -- look at what they've got and where they can save money," said Benjamin Collett, head of hedge-fund sales trading at Daiwa Securities SMBC in Hong Kong.
In an interview with the CNBC news channel separately, Marc Faber, editor and publisher of the Gloom, Boom and Doom report said weakening consumer demand in the U.S. would hurt exporters such as China the most.
"I'd be very careful about the Chinese economy. I think the Chinese economy isn't growing at 8% at the present time. Most likely it's already in contraction," he said.
In Tokyo, the Nikkei 225 rebounded as well, ending 2.7% higher at 7,910.79, while the broader Topix index climbed 2.6% to 802.69. The Bank of Japan as expected held interest rates at 0.3%.
South Korea's Kospi, which dropped during the previous eight sessions, jumped 5.8% to end at 802.69.
Taiwan's Taiex rose 2% to 4,171.10, while in afternoon trading, India's Sensex rose 3.5% to 8,748.97 and Singapore's Straits Times index gained 3% to 1,662.10.
Australia's S&P/ASX 200 rose 1.9% to 3,416.50 and New Zealand's NZX 50 index gave up 2.5% to 2,578.10.
Speculation of U.S. auto industry rescue
Traders said rumors that the U.S. may announce measures to rescue the auto industry also swirled the markets, contributing to the market's rebound in the afternoon.
"I think investors are watching [developments in] the U.S. car market. Any rescue package from the government should help the markets rebound," said Patrick Shum, strategist at Karl Thomson Securities.
Banks led the regionwide gains, with market heavyweight HSBC Holdings (HBC) gaining 1.9% and China Construction Bank soaring 6.1%, reversing early declines.
In Tokyo, Mizuho Financial Group (MFG) surged 13.9%, while Commonwealth Bank of Australia bounced 5.6% in Sydney, while KB Financial Group (KB), which at one point slumped more than 13%, ended 1.8% up in Seoul.
Some energy-related shares broadly declined after crude-oil prices plunged overnight. Woodside Petroleum (WOPEY) dropped 5.4% in Sydney and Cnooc (CEO) lost 2.5% in Hong Kong, while PetroChina Co. (PTR) slipped 0.5% in Shanghai.
Overnight on the New York Mercantile Exchange, December crude-oil prices dropped below $50 a barrel Thursday on the New York Mercantile Exchange, ending down $4 at $49.62. The contract expired overnight.
January crude-oil futures, which closed at $49.42 a barrel on the Nymex, rose 75 cents to $50.17 a barrel in electronic trading, after dropping as low as $ 48.25 earlier in the day.
In currency trading, the U.S. dollar bought 95.13 yen, compared with 95.01 yen late Thursday.
On Wall Street, the S&P 500 index (SPX) slumped 6.7% to 752.44, a closing level it hasn't seen in more than 11 years. The Dow Jones Industrial Average ( DJI) gave up 5.6% to 7,552.29 and the Nasdaq Composite (RIXF) lost 5.1% to 1, 316.12.
New York Stock Exchange Today Launches NYSE Realtime Stock Prices
The New York Stock Exchange (NYSE), a subsidiary of NYSE Euronext (NYX), today will introduce NYSE Realtime Stock Prices, a new data product that enables Internet and media organizations to buy real-time, last-trade market data from the NYSE and provide it broadly and free of charge to the public. Google and CNBC are the first organizations to make the product available to the public, effective today.
“NYSE Realtime Stock Prices will provide investors with free, immediate and easily accessible information, without requiring them to complete any administrative forms or contracts. We are excited to partner with Google and CNBC, two great names in the information space, to offer this useful data to the public,” said Ronald Jordan, Executive Vice President, Market Data.
"Providing real-time market data on Google Finance is an important step towards helping investors make more informed and timely investment decisions," said Marissa Mayer, Vice President of Search Products and User Experience. "Access to real-time financial information has traditionally been limited to investors with brokerage accounts and other users via subscription fees. We are pleased to be making this information freely available to all of our users on Google Finance, Google.com and other Google search properties."
"This service will enable any CNBC viewer or user the ability to make better investing decisions, no matter what platform they use or where they are in the world," said Scott Drake, Vice President, CNBC Digital.
The NYSE first proposed the idea for NYSE Realtime Stock Prices in January 2007, with an innovative approach: information providers disseminating the data do not have to count and report the number of users to the Exchange, nor contract with each user. Instead, the providers purchase the data from the NYSE for a flat monthly fee. The Securities and Exchange Commission last week approved NYSE Realtime Stock Prices for a four-month pilot period.
“NYSE Realtime Stock Prices will provide investors with free, immediate and easily accessible information, without requiring them to complete any administrative forms or contracts. We are excited to partner with Google and CNBC, two great names in the information space, to offer this useful data to the public,” said Ronald Jordan, Executive Vice President, Market Data.
"Providing real-time market data on Google Finance is an important step towards helping investors make more informed and timely investment decisions," said Marissa Mayer, Vice President of Search Products and User Experience. "Access to real-time financial information has traditionally been limited to investors with brokerage accounts and other users via subscription fees. We are pleased to be making this information freely available to all of our users on Google Finance, Google.com and other Google search properties."
"This service will enable any CNBC viewer or user the ability to make better investing decisions, no matter what platform they use or where they are in the world," said Scott Drake, Vice President, CNBC Digital.
The NYSE first proposed the idea for NYSE Realtime Stock Prices in January 2007, with an innovative approach: information providers disseminating the data do not have to count and report the number of users to the Exchange, nor contract with each user. Instead, the providers purchase the data from the NYSE for a flat monthly fee. The Securities and Exchange Commission last week approved NYSE Realtime Stock Prices for a four-month pilot period.
Thursday, November 20, 2008
Rolls-Royce appoints John Neill as a Non-Executive director
14 November 2008
Rolls-Royce today announced the appointment of John Neill CBE as a non-executive director.
Announcing the appointment, the Chairman of Rolls-Royce, Simon Robertson said: "I am delighted to welcome John Neill as a non-executive director of Rolls-Royce. He brings with him a wealth of experience in component manufacturing, supply-chain management and logistics which will all be extremely valuable to our Company."
John Neill is the Chief Executive of the Unipart Group of Companies. He is a member of the Council and Board of Business in the Community and is a Non-Executive Director of Charter PLC.
Rolls-Royce today announced the appointment of John Neill CBE as a non-executive director.
Announcing the appointment, the Chairman of Rolls-Royce, Simon Robertson said: "I am delighted to welcome John Neill as a non-executive director of Rolls-Royce. He brings with him a wealth of experience in component manufacturing, supply-chain management and logistics which will all be extremely valuable to our Company."
John Neill is the Chief Executive of the Unipart Group of Companies. He is a member of the Council and Board of Business in the Community and is a Non-Executive Director of Charter PLC.
Rolls-Royce power increases efficiency for SPE in Belgium
18 November 2008
SPE, the second largest electrical utility in the Belgium, has commissioned its Rolls-Royce Trent 60 powered electrical generating plant at the Ham power station in the centre of Ghent. The simple cycle plant, which is the most powerful and fuel-efficient of its type in the world, is also environmentally friendly due to the high efficiency of the Rolls-Royce engines.
Charles Athanasia, Vice President of Power Generation for the Rolls-Royce energy business said, “This represents a significant achievement for Rolls-Royce. The Trent 60 delivers performance levels to SPE that are not available from any other aero derivative gas turbine. Our experience, together with our technology, will enable SPE to run its plant at peak efficiency."
The Rolls-Royce gas turbines have made a significant improvement to the plant’s environmental impact and were a key factor in the decision to replace the diesel engines used at the station for the past 40 years. Two Trent 60 aero derivative gas turbines will provide over 100MW of power during times of peak demand at the Meuse River site, where a power station has been sited for over 80 years.
The noise level of the new plant is now even lower than the ambient noise level on the streets of Ghent. Vibrations from the plant when the diesel engines were running have almost completely disappeared. This environmental improvement was one of the main drivers for the project, given its city centre location.
Following on from this successful installation in Ghent, SPE and Rolls-Royce have joined forces to build another Trent 60 power station on an existing SPE site at Angleur near Liège.
Rolls-Royce has now installed eleven Trent gas turbine generating sets at power station sites in Europe with an additional 12 units on order.
The Trent 60 gas turbine, derived from the Rolls-Royce Trent aero engine for the Boeing 777, is currently the most powerful aero derivative gas turbine available in the world with a power output up to 64MW.
SPE, the second largest electrical utility in the Belgium, has commissioned its Rolls-Royce Trent 60 powered electrical generating plant at the Ham power station in the centre of Ghent. The simple cycle plant, which is the most powerful and fuel-efficient of its type in the world, is also environmentally friendly due to the high efficiency of the Rolls-Royce engines.
Charles Athanasia, Vice President of Power Generation for the Rolls-Royce energy business said, “This represents a significant achievement for Rolls-Royce. The Trent 60 delivers performance levels to SPE that are not available from any other aero derivative gas turbine. Our experience, together with our technology, will enable SPE to run its plant at peak efficiency."
The Rolls-Royce gas turbines have made a significant improvement to the plant’s environmental impact and were a key factor in the decision to replace the diesel engines used at the station for the past 40 years. Two Trent 60 aero derivative gas turbines will provide over 100MW of power during times of peak demand at the Meuse River site, where a power station has been sited for over 80 years.
The noise level of the new plant is now even lower than the ambient noise level on the streets of Ghent. Vibrations from the plant when the diesel engines were running have almost completely disappeared. This environmental improvement was one of the main drivers for the project, given its city centre location.
Following on from this successful installation in Ghent, SPE and Rolls-Royce have joined forces to build another Trent 60 power station on an existing SPE site at Angleur near Liège.
Rolls-Royce has now installed eleven Trent gas turbine generating sets at power station sites in Europe with an additional 12 units on order.
The Trent 60 gas turbine, derived from the Rolls-Royce Trent aero engine for the Boeing 777, is currently the most powerful aero derivative gas turbine available in the world with a power output up to 64MW.
Rolls-Royce nets CorporateCare® contracts with NetJets Middle East
18 November 2008
Rolls-Royce, the world leader in engines for the business jet market, today announced NetJets Middle East, owned and operated by National Air Service, has signed six Rolls-Royce powered aircraft to CorporateCare®, the industry’s most comprehensive engine maintenance and management programme.
The aircraft are three Tay 611-8-powered Gulfstream GIVs and three Gulfstream G450s powered by Tay 611-8C engines.
Jamal Kashkari, Director of Maintenance - NetJets Middle East said: “The utilisation of the CorporateCare® programme will increase the reliability of our aircraft.”
Stephen Friedrich, Vice President - Aftermarket Business, Corporate & Regional Engines, Rolls-Royce, said: “We are delighted to extend our partnership with NetJets Middle East. The combination of Rolls-Royce product and service solutions delivers NetJets Middle East enhanced operations, increased efficiency and superior product performance.”
CorporateCare is one of the most successful service solutions in the Rolls-Royce suite of aftermarket offerings for civil aerospace, delivering record contract numbers in each of the last four years. Strong demand continues with more than 55 per cent of BR710 operators, 50 per cent of Tay 611-8C operators and 80 per cent of AE 3007 operators now enrolled in CorporateCare.
With CorporateCare, customers benefit from improved asset value, predictable engine maintenance costs, reduced acquisition costs and minimized administrative burdens. Basic coverage extends to scheduled and unscheduled shop visit expenses; all parts expenses (LRUs through line item parts) incurred during line maintenance; engine removal and reinstallation; and lease engine expenses. All applicable Service Bulletins, mandatory or recommended, are included as standard, both in the overhaul shop and during line maintenance, in accordance with Rolls-Royce Engine Management Programmes.
CorporateCare supports Rolls-Royce’s entire line of corporate aircraft engines: BR725, BR710, RB282, AE 3007, Tay and Viper.
Notes to Editors:
NetJets Middle East is a division of National Air Services and is headquartered in Jeddah, Saudi Arabia. All flights are operated by NAS. The NetJets Middle East fractional aircraft ownership programme is affiliated with NetJets Inc. and is operated under the principles of the NetJets U.S. programme created in 1986 by NetJets Inc. Chairman and CEO Richard Santulli.
Rolls-Royce has a growing presence in the Middle East, where it is playing an important role in the development of the region across all the Group’s sectors - civil aerospace, defence aerospace, marine and energy.
Rolls-Royce forecasts the size of the global corporate aircraft market opportunity at 79,000 engines worth US$110 billion over the next 20 years. Much of this demand is anticipated to come from the Middle East where the company expects a substantial increase in the region’s 220 aircraft fleet, 30 per cent of which is Rolls-Royce powered.
Rolls-Royce powers 15 different in-service business jet types in a fleet of 2,100 aircraft. Over one third of this fleet is covered by a long-term maintenance agreement with Rolls-Royce.
The company’s services activity continues to expand and is valued highly by customers worldwide. Service agreements broaden the opportunity to increase aftermarket revenues, which in turn provide considerable visibility of earnings into the future.
Rolls-Royce has a long history of offering programmes that provide service support of the operator’s engines in return for a fixed payment per hour flown. Its trademarked “Power by the Hour” programme has been in existence against the Viper engine, installed in the Raytheon (HS) 125 corporate jet, for well over 30 years. The company has also managed Fleet Hour Contracts with several customers since the inception of the RB211 engine in the early 1970s. Today, Rolls-Royce has taken its service to new levels with its CorporateCare®, TotalCare™ and On-Wing Care service centre support programmes.
Further details on CorporateCare® are available at www.rolls-royce.com or contact Steve Friedrich, Vice President – Aftermarket Business, at +1(703) 621-2715.
Rolls-Royce, the world leader in engines for the business jet market, today announced NetJets Middle East, owned and operated by National Air Service, has signed six Rolls-Royce powered aircraft to CorporateCare®, the industry’s most comprehensive engine maintenance and management programme.
The aircraft are three Tay 611-8-powered Gulfstream GIVs and three Gulfstream G450s powered by Tay 611-8C engines.
Jamal Kashkari, Director of Maintenance - NetJets Middle East said: “The utilisation of the CorporateCare® programme will increase the reliability of our aircraft.”
Stephen Friedrich, Vice President - Aftermarket Business, Corporate & Regional Engines, Rolls-Royce, said: “We are delighted to extend our partnership with NetJets Middle East. The combination of Rolls-Royce product and service solutions delivers NetJets Middle East enhanced operations, increased efficiency and superior product performance.”
CorporateCare is one of the most successful service solutions in the Rolls-Royce suite of aftermarket offerings for civil aerospace, delivering record contract numbers in each of the last four years. Strong demand continues with more than 55 per cent of BR710 operators, 50 per cent of Tay 611-8C operators and 80 per cent of AE 3007 operators now enrolled in CorporateCare.
With CorporateCare, customers benefit from improved asset value, predictable engine maintenance costs, reduced acquisition costs and minimized administrative burdens. Basic coverage extends to scheduled and unscheduled shop visit expenses; all parts expenses (LRUs through line item parts) incurred during line maintenance; engine removal and reinstallation; and lease engine expenses. All applicable Service Bulletins, mandatory or recommended, are included as standard, both in the overhaul shop and during line maintenance, in accordance with Rolls-Royce Engine Management Programmes.
CorporateCare supports Rolls-Royce’s entire line of corporate aircraft engines: BR725, BR710, RB282, AE 3007, Tay and Viper.
Notes to Editors:
NetJets Middle East is a division of National Air Services and is headquartered in Jeddah, Saudi Arabia. All flights are operated by NAS. The NetJets Middle East fractional aircraft ownership programme is affiliated with NetJets Inc. and is operated under the principles of the NetJets U.S. programme created in 1986 by NetJets Inc. Chairman and CEO Richard Santulli.
Rolls-Royce has a growing presence in the Middle East, where it is playing an important role in the development of the region across all the Group’s sectors - civil aerospace, defence aerospace, marine and energy.
Rolls-Royce forecasts the size of the global corporate aircraft market opportunity at 79,000 engines worth US$110 billion over the next 20 years. Much of this demand is anticipated to come from the Middle East where the company expects a substantial increase in the region’s 220 aircraft fleet, 30 per cent of which is Rolls-Royce powered.
Rolls-Royce powers 15 different in-service business jet types in a fleet of 2,100 aircraft. Over one third of this fleet is covered by a long-term maintenance agreement with Rolls-Royce.
The company’s services activity continues to expand and is valued highly by customers worldwide. Service agreements broaden the opportunity to increase aftermarket revenues, which in turn provide considerable visibility of earnings into the future.
Rolls-Royce has a long history of offering programmes that provide service support of the operator’s engines in return for a fixed payment per hour flown. Its trademarked “Power by the Hour” programme has been in existence against the Viper engine, installed in the Raytheon (HS) 125 corporate jet, for well over 30 years. The company has also managed Fleet Hour Contracts with several customers since the inception of the RB211 engine in the early 1970s. Today, Rolls-Royce has taken its service to new levels with its CorporateCare®, TotalCare™ and On-Wing Care service centre support programmes.
Further details on CorporateCare® are available at www.rolls-royce.com or contact Steve Friedrich, Vice President – Aftermarket Business, at +1(703) 621-2715.
REG-Rolls-Royce Grp Plc: ROLLS-ROYCE CONSULTS WITH EMPLOYEES ON FUTURE EMPLOYMENT
20 November 2008Rolls-Royce consults with employees on future employmentRolls-Royce announced today that it is consulting employee representativesabout a proposed reduction of 140 jobs at its Assembly and Test facility inDerby, UK, which forms part of the Group's Civil Aerospace business.Today's announcement represents the first stage in a more general programmeaimed at matching the Group's capacity more closely with the expected load inits facilities. The Group currently employs around 39,000 people globally, ofwhom around 60 per cent work in the UK.Rolls-Royce has been reviewing the possible impact of current economicuncertainties, delays on individual programmes, such as the Airbus A380 and theBoeing 787, and the benefits of the Group's continuing focus on efficiency.While it is too early to be specific about the precise implications for thenumber and location of job reductions, the Group's current assessment is thatin 2009 it will be necessary to implement job reductions across the varioussectors and functions of around 1,500 to 2,000 on a worldwide basis, includingthe reduction announced today.These proposals have no effect on the Group's 2008 financial guidance and thecosts in 2009 are expected to be balanced by the savings achieved in the courseof the year, as is the case in 2008.These reductions account for around four per cent of the total workforce andwill have an effect globally. As the precise scale and location of thereductions become clear, Rolls-Royce will enter into detailed consultations inthe relevant locations. It is possible that in some areas there will be littleor no impact.To put these proposed reductions into context, Rolls-Royce announced in Januarythat it would continue its focus on efficiency by reducing by 2,300 during 2008the number of staff working in overhead functions, a programme that is nowlargely complete. To minimise compulsory redundancies, the Group reduced itstemporary workforce and, where possible, relied on voluntary severance, naturalattrition and avoided recruitment. It has continued to recruit to supportgrowth in key areas of the business and, importantly, maintained its commitmentto apprentice and graduate recruitment. Rolls-Royce will adopt a similarapproach in 2009 so as to mitigate, as far as possible, the impact of theproposed reductions.Sir John Rose, Chief Executive, said: "We are determined to maintain our focuson cost reduction and competitiveness as the world economy enters a challengingperiod. It is too early to determine the precise effects of the global economicdownturn and programme delays. However, we wanted to give all our employees anearly indication of the likely scale of the job reductions we expect in 2009."Note to Editors 1. Rolls-Royce, a world-leading provider of power systems and services for use on land, at sea and in the air, has over the last ten years established a strong position in fast growing global markets - civil aerospace, defence aerospace, marine and energy. 2. At the end of September 2008 Rolls-Royce employed around 39,000 people in 50 countries. Around 22,100 are employed in the UK, 8,250 in North America, 6,900 in the rest of Europe, 780 in Asia, about 480 in the rest of the world and a further 550 on a range of international assignments. 3. Annual underlying sales were £7.8 billion in 2007. New product development is carried out on a global basis with 50 per cent of new programmes developed outside the UK. Overall 55 per cent of the Group's 2007 annual sales came from services revenues and less than 20 per cent came from Original Equipment sales to the civil sector. The firm and announced order book at 30 June 2008 was £53.5 billion, an increase of 17 per cent from December 2007. 4. The Group has businesses headquartered in a wide range of countries including the UK, US, Canada, Germany, Scandinavia and China. This global presence allows the Group to access long-term international growth opportunities with its technology, presence, partnerships and people. 5. Rolls-Royce invests in core technologies, products, people and capabilities with the objective of broadening and strengthening the product portfolio, improving efficiency and enhancing the environmental performance of its products. Capital investments made by the Group over the last five years exceeded £1.3 billion. Sales per employee have improved by more than seven per cent compound over the last ten years.
Stocks try to stabilize
NEW YORK (CNNMoney.com) -- Stocks cut losses Thursday morning, turning mixed, as stocks bounced after touching key levels not seen in nearly six years.
The Dow Jones industrial average (INDU) lost 0.3% over 90 minutes into the session, hampered by a plunge in GM and Citigroup.
The Standard & Poor's 500 (SPX) index lost 1% and the Nasdaq composite (COMP) gained 0.4%.
Stocks slumped through the morning after a report showed the highest level of weekly unemployment claims in 16 years, underscoring the depth of the recession.
But the major gauges managed to cut losses and briefly turn higher after the S&P 500 dropped to the lowest level since Oct. 10, 2002. That date is considered important on a technical basis for all three major gauges, as it marked the bottom of the last bear market.
Worries about the fate of the automakers sent stocks plunging Wednesday, with all three major gauges ending at the lowest levels since 2003. Stocks extended the selloff Thursday morning.
Markets worldwide declined. Asian stocks tumbled, with the Japanese Nikkei losing 6.9%. In afternoon trading, London's FTSE 100 was off 4.4% and the German DAX was down 4.4%.
The Dow Jones industrial average (INDU) lost 0.3% over 90 minutes into the session, hampered by a plunge in GM and Citigroup.
The Standard & Poor's 500 (SPX) index lost 1% and the Nasdaq composite (COMP) gained 0.4%.
Stocks slumped through the morning after a report showed the highest level of weekly unemployment claims in 16 years, underscoring the depth of the recession.
But the major gauges managed to cut losses and briefly turn higher after the S&P 500 dropped to the lowest level since Oct. 10, 2002. That date is considered important on a technical basis for all three major gauges, as it marked the bottom of the last bear market.
Worries about the fate of the automakers sent stocks plunging Wednesday, with all three major gauges ending at the lowest levels since 2003. Stocks extended the selloff Thursday morning.
Markets worldwide declined. Asian stocks tumbled, with the Japanese Nikkei losing 6.9%. In afternoon trading, London's FTSE 100 was off 4.4% and the German DAX was down 4.4%.
Uganda stock exchange expands
By Will Ross BBC, Kampala
As the bell struck on Thursday morning trading began at the Uganda Securities Exchange - basically a small office in central Kampala.
This time there is an extra company listed - Bank of Baroda Uganda.
It means more work for the half a dozen brokers in their bright red jackets buying and selling shares on behalf of the investors.
When you look at the stock exchanges which have been around for 300 years, this is exactly the way they started Simon Rutega, Ugandan Securities Exchange Trading takes place two mornings a week. And no, this is not the hive of activity you will find in other markets in capital cities around the world.
At the end of 20 minutes of trading, nine deals had been made and over 86,000 shares traded.
And on the first day on the exchange the new Bank of Baroda shares had risen in value by 16%.
Good news for those who had bought shares in the bank.
The Ugandan Stock Exchange in Kampala was set up two years ago and the signing of the Bank of Baroda takes the total number of companies listed to just five, making it one of the smallest in Africa.
Oil price goes below $50 a barrel
Oil prices have fallen below $50 a barrel for the first time since May 2005 amid fears of a recession and expectations that demand will drop.
US light sweet crude fell to $49.75, while London-traded Brent crude fell to to $48.90 a barrel.
The price of oil is around two-thirds cheaper than in July, when it hit a record above $147 a barrel.
Members of oil cartel Opec are to meet on November 29, after opting to cut output by 1.5 million barrels per day.
"The lack of any positive news on the demand front as well as continued global economic turmoil continues to result in a dearth of bullish news," said Jonathan Kornafel, Asia director of Hudson Capital Energy.
US light sweet crude fell to $49.75, while London-traded Brent crude fell to to $48.90 a barrel.
The price of oil is around two-thirds cheaper than in July, when it hit a record above $147 a barrel.
Members of oil cartel Opec are to meet on November 29, after opting to cut output by 1.5 million barrels per day.
"The lack of any positive news on the demand front as well as continued global economic turmoil continues to result in a dearth of bullish news," said Jonathan Kornafel, Asia director of Hudson Capital Energy.
Recession fears hit stock markets
World shares have fallen amid concerns that the world economy will enter a protracted downturn.The US Dow Jones index Industrial Average fell 2.3% in early trade while the wider S&P 500 Index shed 3%.
London's FTSE 100, the Paris-based Cac and Frankfurt's Dax were all down more than 3% in afternoon trade. Earlier, Asian shares had fallen sharply.
Concerns over a sharp slowdown in US factory activity added to worries about the strength of the economy.
No business in KSE initial two hours of trading today
KARACHI: Karachi Stock Exchange (KSE) in its initial two hours of trading session witnessed no business on Tuesday, as investors preferred to stay out of the trading arena.KSE income has plunged down to an alarmingly low level, as the volume trading persistently kept plummeting, while on Tuesday in the initial two hours of the trading session, it saw no business activity at all, as the investors preferred waiting on the sidelines. KSE members told that the bourse used to earn a daily income of Rs.7.5 million from the Exchange log, which has dropped down to less than Rs. 40000 per day due to tumbling volume of trade. KSE Managing Director, Adnan Afridi told Geo News that the officers of the Exchange were voluntarily relinquishing their privileges in the wake of the dwindling income.
Ghee mils owners’ profit rises to Rs25 per kg
Updated at: 1810 PST, Tuesday, November 18, 2008 KARACHI: Amid decline in palm oil price in International market, ghee mills owners are earning a profit of Rs25 per kilogramme.Mill owners said on Tuesday that no promise was made to the government regarding the reduction of ghee price in open market and that it cannot reduce prices by force.The government said it would conduct a probe into mill owners’ profiteering.Members of Pakistan Banaspati Manufacturers Association (PBMA) told Geo News that the association promised the government to provide ghee at cheaper rates (Rs 95 per kg) only at Utility Stores.Meanwhile, secretary industries and production, Shahab Khawaja said that the PBMA had pledged to reduce prices of ghee, however, he said the association had sought more time because bookings had been made at previous rates.
Oil falls as economic crisis weighs
Updated at: 0125 PST, Wednesday, November 19, 2008 LONDON: Oil prices fell on Tuesday as part of a wider market downturn due to concerns about global economic weakness.Uncertainty about the fate of talks over aid for General Motors Corp and other U.S. automobile makers fueled worries that helped send U.S. stocks lower. nN18272083U.S. crude traded down 23 cents to $54.72 a barrel by 13:53 p.m. EST (1853 GMT), after dropping as low as $54.13, the lowest level since January 2007.London Brent crude traded down 23 cents at $52.08 a barrel."Crude oil futures moved down with Wall Street. Market fundamentals are very tenuous," said Andy Lebow, broker at MF Global."The oil market is in a major downtrend and moving down with equities confirms there is a lack of confidence in what brought prices up earlier."Oil prices have dropped from record highs above $147 a barrel in July as the mounting economic crisis has clipped fuel demand in big consumer nations such as the United States.The steep drop in prices has prompted some members of the Organization of Petroleum Exporting Countries to call for more production cuts, after the cartel agreed to remove about 2 million barrels per day from world markets since September.Traditional price hawk Iran has sought another 1 million to 1.5 million bpd in cuts and has called for talks with non-OPEC members on supply curbs.
Banks lead European stock markets down
LONDON: European stock markets fell Tuesday following Asian losses amid further gloom about the state of the world economy and the banking system's prospects in particular.The FTSE 100 index of leading British shares was down 63.37 points, or 1.5 percent, at 4,069.79, while Germany's DAX was 64.85, or 1.4 percent, lower at 4,492.42. The CAC-40 in France was down 47.79, or 1.5 percent, at 3,134.24.Banks across Europe were particularly badly hit by recession fears after Citigroup announced it would cut thousans of jobs, with Barclays PLC down 6 percent, HBOS PLC another 12 percent, Deutsche Bank AG 5 percent and Commerzbank AG 6 percent."There is huge uncertainty hanging over the markets' head, and banks are really out of favor," said Howard Wheeldon, senior strategist at BGC Partners.The morning losses in Europe follow similar drops in Asia. Tokyo's Nikkei 225 stock average fell 194.17 points, or 2.3 percent to 8,328.41, a day after confirmation Japan, the world's second largest economy, had slipped into a recession. Hong Kong's Hang Seng Index shed 4.5 percent to 13,131.23.The lurch lower in Europe and Asia followed Wall Street, where traders sold heavily on evidence of more economic weakness and Citigroup Inc's announcement Monday that it is to cull 53,000 jobs around the world as it seeks to deal with the impact of the financial crisis.The Dow fell Monday by 223.73 points, or 2.6 percent, to 8,273.58. The Standard & Poor's 500 index fell 22.54, or 2.6 percent, to 850.75. Wall Street futures pointed to a lower open on Tuesday. Dow futures were down 1.1 percent to 8171.Some hopeful signs emerged with the news that inflation in Britain fell in October for the first time in 14 months largely because of cheaper oil prices.Official figures showed that the annual rate of the consumer price index measure of inflation dropped to 4.5 percent in the year to October from 5.2 percent in the year to September. Analysts had expected a more modest decline to 4.7 percent.As a result, the markets are expecting the Bank of England to continue to cut interest rates aggressively over the coming months, with some predicting it to lop off another percentage point of its benchmark rate when it meets again in early December.
Asian stocks slip
TOKYO: Asian stock markets stumbled Wednesday. Japan's Nikkei index lost 0.7 percent while Korea's Kospi shed 1.9 percent and Australia's S&P/ASX 200 declined 0.7 percent.In Europe, the FTSE 100 opened 0.12 percent lower while the Paris CAC-40 edged up 0.05 percent and the Frankfurt DAX firmed 0.15 percent. Chinese share prices, however, surged 6.05 percent as bargain hunters bought up energy stocks following sharp losses the previous day. Hong Kong pumped 600 million US dollars into the forex market to defend the local currency's peg to the greenback. South Korea said its corporate bankruptcies hit a three-year high in October.Oil prices drop close to 50 dollars
Updated at: 1732 PST, Wednesday, November 19, 2008 LONDON: Oil prices dropped on Wednesday, with Brent crude falling close to 50 dollars a barrel, as demand for energy weakens worldwide and as the market awaits data on the health of US crude stockpiles.Brent North Sea crude for delivery in January was down 27 cents at 51.57 dollars a barrel in late morning trade on London's InterContinental Exchange (ICE). Earlier it touched 50.61 dollars.On the New York Mercantile Exchange (NYMEX), light sweet crude for December delivery slipped 29 cents to 54.10 dollars a barrel. It earlier fell to 53.30 dollars, the lowest point since January 2007."Concerns about slow demand from the global economic woes continue to weigh on market sentiment," said Michael Davies, an oil analyst at Sucden brokers in London.Later on Wednesday, the US Department of Energy publishes its latest weekly snapshot of energy inventories in the United States, the world's biggest oil consuming nation."An increase in distillate stocks may have been limited by some increase in heating oil demand due to cooler weather in the US Northeast, the world's largest heating oil market," said Davies."Refinery capacity utilisation is expected near unchanged at 84.6 pecent; last year the figure was at 87 percent," he added.Oil prices have plunged almost two-thirds since striking record highs of above 147 dollars in July as a global economic slowdown dents world energy demand.Prices in London had last week slumped to three-and-a-half-year lows close to 50 dollars, prompting the OPEC exporters' cartel to call an emergency meeting in Cairo to discuss output levels.Crude futures should drop further to 43 or 44 dollars a barrel before rebounding along with the global economy next year, CFC Seymour securities said in a report published on Wednesday."We believe prices will be in decline until evidence emerges that the US is on track to end its recession," CFC Seymour said in Hong Kong.The London-based Centre for Global Energy Studies (CGES) on Tuesday forecast a contraction in global demand for the first time in 25 years amid a severe global economic slowdown.On Monday, the Organization of Petroleum Exporting Countries, which produces 40 percent of the world's oil, said it was ready to intervene on a regular basis to help prop up the prices.
Rupee up against dollar
Updated at: 1821 PST, Wednesday, November 19, 2008 KARACHI: The rupee value edged up by paisas 8 against the dollar, as the greenback closed at Rs79.42 at the interbank on Wednesday.Upon the approval of loans by world financial institutions, the rupee value was seen gaining value.Forex market dealers said the sale of dollars recorded increase as investors opted for off loading their US currency holdings.The boost in dollar supply in the market resulted in strengthening of rupee as the dollar was bought at Rs78 and sold at Rs79.Wednesday, November 19, 2008
IMF Okays: $ 7.6 Bln package for Pakistan
KARACHI: Advisor to the Prime Minister on Finance, Shaukat Tareen on Saturday announced that International Monetary Fund (IMF) has okayed financial package for Pakistan with no condition but adjustment of interest rate to check the high inflation. It is for 23 months or 7 quarters.
The minimum amount is five times of our quota that comes to dollars 7.6 billion.The interest rate on the facility will vary from 3.51 % to 4.51 percent with some changes as per market conditions, the Advisor unveiled during a press conference here at the headquarters of State Bank of Pakistan (SBP).
Governor SBP, Dr Shamshad Akhtar also explained some points there. This facility will also give confidence not only to the markets and our investors, but also to other International Financial Institutions (IFls) and Friends of Pakistan.
Thus we believe that we can see commencement of a steady stream of inflows now on, he said. Defending the Government’s move, Tareen said against the past arrangements done with IMF, the present one would prove successful and very much in the interest of the country as there is no dictation, or IMF designed economic plan behind this financial agreement.
“It is our own program based on our annual budget targets,” he asserted adding that with endorsement of our economic program by IMF, the ‘Friends of Pakistan’ countries and our other trading partners would be satisfied to extend significant financial support to Pakistan. Such indications are already there.”
He said the government now would engage in negotiations with these countries. At the first, he was scheduled to meet with the Finance Minister of Saudi Arabia soon in pursuance of King of Saudi Arabia’s assurance that the Kingdom would extend financial support to Pakistan.
To a query , Advisor to the Prime Minister on Finance, Shaukat Tareen said first tranche from IMF was expected before end of this month. Explaining the background behind entering an arrangement with IMF, he said the Government contacted the multilateral agencies and all our friends and each one of them was appreciative of our program as well as the predicament that we faced in the form of financing gap.
They were all willing to give us a helping hand, but would like us to get the endorsement of our program from the IMF. Moreover, the timing was an issue for us as our foreign exchange reserves were depleting at a regular pace. Tareen said the IMF showed a very positive approach toward us while assessing our program.
In the process they also offered us to access their stand-by facility under exceptional provisions for an amount as much as 5 times of our quota, which meant a fast track processing of request.
They did not give us any conditions different than those already committed by us and explained above. They sat down with our team in Dubai and prepared a detailed quarterly plan based on our own home-grown agenda.
The only area where they counseled us, was to increase the interest rate to curtail the core inflation, though fundamentally correct, was negotiated. Overall they felt that by and large all our targets are reasonable , realistic and achievable provided we show discipline and determination, he said.
He said this financial arrangement will help build confidence not only in the markets and our investors, but also to other IFls and Friends of Pakistan. Thus, we believe that we can see commencement of a steady stream of inflows now on, thereby eliminating the air of unnecessary in the country.
He said the government was pursuing United States and European Union that instead of giving any loan/aid it would be better for Pakistan to provide her access to their markets.
“We are working to sign Free Trade Agreement (FTA) with the US,” he said adding that the US government would also be requested to implement bilateral trade agreement (BTA) at the earliest besides extension of Reconstruction Opportunity Zones (ROZs) to entire NWFP and Balochistan province.
The Advisor to Prime Minister on Finance said Pakistan is facing challenging economic conditions, which are brought about by a combination of global shocks ( prices of oil and fuel more than doubling) in action on the part of economic managers during transition to a democratic government and the on-going financial crisis hitting every part of the world.
The ultimate reflection of what has happened to Pakistan’s economy is the massive loss of reserves which have declined from a height of dollars 16.4 billion in October 2007 to less than dollars 7 billion at present.
Other indicators of economic weakening are the slow-down in growth (5.8% in 2007/08), rising inflation (25%), excessive expansion in monetary assets in recent past (21 % reserves money growth during 2007/08), rising fiscal deficit (7.4% of GDP in 2007/08), depreciating exchange rate (21.8% since March, 08) and massive decline in stock market valuation, which has lost almost half its value.
In the wake of above developments , he said, the country lost the support of some of its development partners as well as the confidence of the market and the rating agencies , which in turn made it impossible for the country to raise resources from the international capital market.
The loss of reserves is the mirror image of stagnant foreign exchange inflows. This had reached a point where country’s balance of payments position was becoming untenable, unless of course immediate resources were made available through our friends.
Defending the annual budget 2008-09 , the Government presented a sound economic program in the Budget 2008-09 , which addressed almost all concerns of our development partners.
He spoke of the salient features of the Budget:
“1. Fiscal Deficit: In the budget we have targeted fiscal deficit to be brought down from 7.4% of GDP to 4.3% of GDP. This target is ambitious but can be achieved with determination.
2. Zero Net Borrowing from State Bank : This is our commitment, which is made by any government for the first time. Also, it is a measure that has been most appreciated by our development partners, as it poses significant challenges to public financial managers.
3. Monetary Growth Slow-down : State Bank in its monetary policy statement of July 2008 had set a target of 14% in broad money (M2) significantly. This will be lower than expected nominal GDP growth this year.
4. Interest rate adjustment to fight core inflation: The rising headline inflation (including both food and energy) has now seeped into core inflation (non-food, non-energy), which has risen nearly to 18.3% by October 2008.
This is most hurting both for people as well as for businesses, as they will begin to lose their competitive advantage. In July 2008, SBP raised the policy discount rate by 100 bps, but continued pressure on core inflation clearly warranted that more action should be taken to bridle the galloping inflation.
It was in this backdrop that SBP raised the policy discount rate by another 200 bps a few days ago. This commitment to fight inflation by targeting positive real interest rate has been an important element of the program that the Central Bank is pursuing.
The Government recognizes and supports the monetary tightening stance of the Central Bank.
5. Exchange Rate Flexibility : Pakistan is supposed to have a flexible exchange rate regime. However, in the period 2004-07, there a deliberate effort to keep the exchange rate artificially around Rs 60 per US dollar.
This was made possible by liberal use of privatization proceeds as well as expensive borrowings from the international capital markets. Thanks to such resources , imports thrived, exports growth lagged and current account deficit galloped.
Now, the Government has changed this policy and presently the exchange rate is reflecting the real value of Pak Rupee vis-a-vis its trading partners , as determined by purchasing power parity by taking into account relative inflation rates among our trading partners.
Continued adherence to this policy is our commitment, which is appreciated and supported by our friends.
6. Tax/GDP Ratio : We have one of the lowest tax/GDP in the region. From less than 9.6% in 2007/08, we have planned to raise it to over 15% over the next 5-7 years. Undoubtedly, this is also lauded, but we need to deliver it to ensure that our fiscal system is sustainable.
7. Social Safety Net : We have a sound and adequately funded SSN program with the pioneer effort reflected in the new Benazir Income Support Program (BISP) which is being launched at a cost of Rs 35 billion.
Additionally , we will provide another amount of similar size to strengthen other existing SSN programs.”
Advisor to Prime Minister on Finance, Shaukat Tareen said the Government would have to take aggressive steps including drastic cut in its non-development expenditure to pursue its policy of zero borrowing from State Bank.
To a question, Tareen said there will be no cut in Pakistan’s defence budget. “No one will be allowed to manage our economic affairs,” he said.
This credit goes to the Government and IMF as well who has provided us free hand to execute our economic plan.
He said the Government wanted to deliver to its people and come up to their expectations. “Wait for six months.
Our actions will speak,” he responded to media. Governor SBP, Dr Shamshad Akhtar explained that the amount of 7.6 billion dollars only meant for strengthening Pakistan’s liquid foreign reserves.
She also defended her earlier steps for tightening monetary policy and said it worked well.
The minimum amount is five times of our quota that comes to dollars 7.6 billion.The interest rate on the facility will vary from 3.51 % to 4.51 percent with some changes as per market conditions, the Advisor unveiled during a press conference here at the headquarters of State Bank of Pakistan (SBP).
Governor SBP, Dr Shamshad Akhtar also explained some points there. This facility will also give confidence not only to the markets and our investors, but also to other International Financial Institutions (IFls) and Friends of Pakistan.
Thus we believe that we can see commencement of a steady stream of inflows now on, he said. Defending the Government’s move, Tareen said against the past arrangements done with IMF, the present one would prove successful and very much in the interest of the country as there is no dictation, or IMF designed economic plan behind this financial agreement.
“It is our own program based on our annual budget targets,” he asserted adding that with endorsement of our economic program by IMF, the ‘Friends of Pakistan’ countries and our other trading partners would be satisfied to extend significant financial support to Pakistan. Such indications are already there.”
He said the government now would engage in negotiations with these countries. At the first, he was scheduled to meet with the Finance Minister of Saudi Arabia soon in pursuance of King of Saudi Arabia’s assurance that the Kingdom would extend financial support to Pakistan.
To a query , Advisor to the Prime Minister on Finance, Shaukat Tareen said first tranche from IMF was expected before end of this month. Explaining the background behind entering an arrangement with IMF, he said the Government contacted the multilateral agencies and all our friends and each one of them was appreciative of our program as well as the predicament that we faced in the form of financing gap.
They were all willing to give us a helping hand, but would like us to get the endorsement of our program from the IMF. Moreover, the timing was an issue for us as our foreign exchange reserves were depleting at a regular pace. Tareen said the IMF showed a very positive approach toward us while assessing our program.
In the process they also offered us to access their stand-by facility under exceptional provisions for an amount as much as 5 times of our quota, which meant a fast track processing of request.
They did not give us any conditions different than those already committed by us and explained above. They sat down with our team in Dubai and prepared a detailed quarterly plan based on our own home-grown agenda.
The only area where they counseled us, was to increase the interest rate to curtail the core inflation, though fundamentally correct, was negotiated. Overall they felt that by and large all our targets are reasonable , realistic and achievable provided we show discipline and determination, he said.
He said this financial arrangement will help build confidence not only in the markets and our investors, but also to other IFls and Friends of Pakistan. Thus, we believe that we can see commencement of a steady stream of inflows now on, thereby eliminating the air of unnecessary in the country.
He said the government was pursuing United States and European Union that instead of giving any loan/aid it would be better for Pakistan to provide her access to their markets.
“We are working to sign Free Trade Agreement (FTA) with the US,” he said adding that the US government would also be requested to implement bilateral trade agreement (BTA) at the earliest besides extension of Reconstruction Opportunity Zones (ROZs) to entire NWFP and Balochistan province.
The Advisor to Prime Minister on Finance said Pakistan is facing challenging economic conditions, which are brought about by a combination of global shocks ( prices of oil and fuel more than doubling) in action on the part of economic managers during transition to a democratic government and the on-going financial crisis hitting every part of the world.
The ultimate reflection of what has happened to Pakistan’s economy is the massive loss of reserves which have declined from a height of dollars 16.4 billion in October 2007 to less than dollars 7 billion at present.
Other indicators of economic weakening are the slow-down in growth (5.8% in 2007/08), rising inflation (25%), excessive expansion in monetary assets in recent past (21 % reserves money growth during 2007/08), rising fiscal deficit (7.4% of GDP in 2007/08), depreciating exchange rate (21.8% since March, 08) and massive decline in stock market valuation, which has lost almost half its value.
In the wake of above developments , he said, the country lost the support of some of its development partners as well as the confidence of the market and the rating agencies , which in turn made it impossible for the country to raise resources from the international capital market.
The loss of reserves is the mirror image of stagnant foreign exchange inflows. This had reached a point where country’s balance of payments position was becoming untenable, unless of course immediate resources were made available through our friends.
Defending the annual budget 2008-09 , the Government presented a sound economic program in the Budget 2008-09 , which addressed almost all concerns of our development partners.
He spoke of the salient features of the Budget:
“1. Fiscal Deficit: In the budget we have targeted fiscal deficit to be brought down from 7.4% of GDP to 4.3% of GDP. This target is ambitious but can be achieved with determination.
2. Zero Net Borrowing from State Bank : This is our commitment, which is made by any government for the first time. Also, it is a measure that has been most appreciated by our development partners, as it poses significant challenges to public financial managers.
3. Monetary Growth Slow-down : State Bank in its monetary policy statement of July 2008 had set a target of 14% in broad money (M2) significantly. This will be lower than expected nominal GDP growth this year.
4. Interest rate adjustment to fight core inflation: The rising headline inflation (including both food and energy) has now seeped into core inflation (non-food, non-energy), which has risen nearly to 18.3% by October 2008.
This is most hurting both for people as well as for businesses, as they will begin to lose their competitive advantage. In July 2008, SBP raised the policy discount rate by 100 bps, but continued pressure on core inflation clearly warranted that more action should be taken to bridle the galloping inflation.
It was in this backdrop that SBP raised the policy discount rate by another 200 bps a few days ago. This commitment to fight inflation by targeting positive real interest rate has been an important element of the program that the Central Bank is pursuing.
The Government recognizes and supports the monetary tightening stance of the Central Bank.
5. Exchange Rate Flexibility : Pakistan is supposed to have a flexible exchange rate regime. However, in the period 2004-07, there a deliberate effort to keep the exchange rate artificially around Rs 60 per US dollar.
This was made possible by liberal use of privatization proceeds as well as expensive borrowings from the international capital markets. Thanks to such resources , imports thrived, exports growth lagged and current account deficit galloped.
Now, the Government has changed this policy and presently the exchange rate is reflecting the real value of Pak Rupee vis-a-vis its trading partners , as determined by purchasing power parity by taking into account relative inflation rates among our trading partners.
Continued adherence to this policy is our commitment, which is appreciated and supported by our friends.
6. Tax/GDP Ratio : We have one of the lowest tax/GDP in the region. From less than 9.6% in 2007/08, we have planned to raise it to over 15% over the next 5-7 years. Undoubtedly, this is also lauded, but we need to deliver it to ensure that our fiscal system is sustainable.
7. Social Safety Net : We have a sound and adequately funded SSN program with the pioneer effort reflected in the new Benazir Income Support Program (BISP) which is being launched at a cost of Rs 35 billion.
Additionally , we will provide another amount of similar size to strengthen other existing SSN programs.”
Advisor to Prime Minister on Finance, Shaukat Tareen said the Government would have to take aggressive steps including drastic cut in its non-development expenditure to pursue its policy of zero borrowing from State Bank.
To a question, Tareen said there will be no cut in Pakistan’s defence budget. “No one will be allowed to manage our economic affairs,” he said.
This credit goes to the Government and IMF as well who has provided us free hand to execute our economic plan.
He said the Government wanted to deliver to its people and come up to their expectations. “Wait for six months.
Our actions will speak,” he responded to media. Governor SBP, Dr Shamshad Akhtar explained that the amount of 7.6 billion dollars only meant for strengthening Pakistan’s liquid foreign reserves.
She also defended her earlier steps for tightening monetary policy and said it worked well.
IMF-franked Pakistan returns to 'Friends'
QUETTA, Pakistan - Pakistan, having reluctantly secured a US$7.6 billion loan package with the International Monetary Fund (IMF), turns this week to the "Friends of Pakistan" group of nations to strengthen the bailout of its deeply embattled economy. The first IMF tranche of $4 billion, designed to remove the prospect of the country defaulting on its overseas debt, will be released this year under terms of a deal reached at the weekend. The tranche is part of the 23-month loan package under standby credit limits at interest rates of between 3.51% and 4.51%, with repayment to be made in five years beginning from 2011.
Tuesday, November 18, 2008
Merger talks
On Wednesday Belgium said that talks to integrate the Brussels stock exchange with its counterparts in Paris and Amsterdam were very advanced. Belgian Finance Minister Didier Reynders said the merger project was only one of several possibilities, including alliances with other European stock markets. A decision on the future of the Brussels stock market, which has been in a bad slump, would be made in the "coming days, coming weeks". Paris, Brussels and Amsterdam are part of an eight-bourse alliance set up in 1998, led by the London Stock Exchange and the Deutsche Boerse and including Milan, Madrid, and Zurich. A merger would be the first cross-border stock exchange consolidation in Europe. Paris Bourse, continental Europe's biggest stock market, also confirmed it was in co-operation talks. Like London, the German stock exchange is also planning to demutualise and convert to a private company.
Flotation possible
LSE shareholders will be allowed to trade the shares on a "matched bargain" basis through brokerage Cazenove & Co, but none will be allowed to own more than 4.9%. Dealing in the shares is expected to start in late April or early May. Demutualisation also raises the question of a flotation. The exchange said further decisions would depend on the views of its new shareholders.Gavin Casey: Keen to maintain influence
The change will also make it easier for the LSE to take part in an expected reshaping of Europe's bourses. A round of mergers is expected to consolidate the large number of national exchanges into a smaller group of main players. "With technology, the actual location isn't quite what it used to be because very few exchanges now have floors, it's mainly done by electronic trading and execution," said Mr Casey. "But obviously as the largest market in Europe we are very keen to maintain the influence of the London market and come up with a very efficient solution."
Stock exchange votes to go public
Members of the London Stock Exchange voted on Wednesday to demutualise the 200-year-old institution. The proposal was approved at an extraordinary general meeting. It could value the exchange of about £300m ($471m). "Today's vote moves the exchange into a new era, providing a structure that will allow it to compete more effectively in the rapidly developing environment in which stock exchanges now operate," said chairman John Kemp-Welch. Technological change and greater competition have revolutionised share dealing worldwide. Now, instead of being owned and run by members, the exchange will be run by a limited company. It will lead to windfalls of £1m for the 298 brokers and other institutions that currently own the exchange, each of which will get 100,000 shares.
New Stock Exchange building opens
A new Stock Exchange building in the City of London has been opened.The site at Paternoster Square, near St Paul's Cathedral, will not have a trading floor but will be used as a centre for meetings and conferences.
Its interior was devised by design firm Gensler with the aim of creating a flexible work space.
At the official opening on Tuesday the Queen switched on "The Source", a commissioned artwork which marks the start and finish of each day's trading.
The artwork will be permanently positioned in the main entrance of the London Stock Exchange's new building at 10 Paternoster Square.
Christopher Gibson-Smith, chairman of the London Stock Exchange, said: "The Queen opened the former Stock Exchange Tower in 1972, and we are delighted that she has returned to open our new headquarters.
"The contrast between the two buildings underlines just how much the London Stock Exchange has changed in the last 30 years."
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