source: www.msnbc.msn.com

By Will Andrews

updated 11:00 p.m. ET Nov. 25, 2008

U.S. stocks closed mixed Tuesday as profit taking pressured the market following two strong sessions. Technology issues underperformed the broader market. But bonds surged after the Federal Reserve announced a $600 billion program to buy mortgage-related debt and a $200 billion facility to support consumer debt securities.

Wall Street also digested a better than expected read on U.S. consumer confidence in November, a record year-over-year decline in a key gauge of U.S. home prices in September, and an about as-expected report on U.S. third-quarter gross domestic product.

On Tuesday, the Dow Jones industrial average finished higher by 36.08 points at 8,479.47. The broad S&P 500 index added 5.58 points to 857.39. The tech-heavy Nasdaq composite index shed 7.29 points to 1,464.73.

On the New York Stock Exchange, 21 stocks were higher in price for every 10 that advanced. The ratio on the Nasdaq was 15-12 positive.

The U.S. dollar index slid after an earlier rise. Gold futures edged higher. Oil futures fell.

Stock markets in Europe closed higher, with major indexes rising 0.44% in London, 1.18% in Paris, and 0.13% in Frankfurt. Markets in Asia finished mixed, with Tokyo stocks rising 5.22%, while Hong Kong fell 3.38% and Shanghai was lower by fell 0.44%.

The Federal Reserve stepped up its efforts to support strained credit markets through new programs aimed at boosting consumer credit and the market for mortgage-backed securities, according to a Dow Jones report. Under the Term Asset-Backed Securities Loan Facility, or TALF, the Fed will extend up to $200 billion in non-recourse loans to holders of asset-backed securities backed by consumer and small business loans. The Treasury Department will extend $20 billion in funds under the Troubled Asset Relief Program to support the initiative. "The TALF is designed to increase credit availability and support economic activity by facilitating renewed issuance of consumer and small business ABS at more normal interest rate spreads," the Fed said. The Fed also said it will purchase up to $100 billion in GSE debt through a series of competitive auctions starting next week. It will also purchase up to $500 billion in mortgage-backed securities backed by GSEs, with the goal of starting that program by the end of the year.

JPMorgan Chase (JPM) said it planned to sell three-year debt under a U.S. Federal Deposit Insurance Corp. guarantee program, denominated in euros and in sterling and both in benchmark size. The notes will come under the FDIC's new Temporary Liquidity Guarantee Program. JPMorgan is managing the triple-A rated deal itself, an official at the bank said. Goldman Sachs (GS) on Monday became the first bank to take advantage of the program, and Morgan Stanley (MS) also announced a guaranteed debt issue on Tuesday.

In economic news Tuesday, preliminary U.S. third-quarter gross domestic product GDP was revised lower to a -0.5% growth rate, from -0.3% previously, as expected. Real consumption spending was knocked down to a -3.7% pace, from -3.1%, with a downward revision to durable goods spending. Fixed investment was unrevised at a -5.6% pace, though residential construction spending was revised up to -17.6% from -19.1%; both equipment and software, and spending on structures were revised down.

Real net exports contributed positively to GDP growth but at a slower 1.07% pace [revised from 1.13% previously], though inventories contributed more at a 0.89% rate from 0.56% previously. Government spending also added less to Q3 growth than initially reported, posting a 5.4% pace from 5.8% previously. The GDP chain price index was steady at 4.2%, while the core rate slowed to 2.6% from 2.9%.

The U.S. S&P/Case-Shiller home price index fell 1.85% in September to 161.56 from a revised 164.60 in August [164.57 previously] for the 20-city composite. All 20 cities in the index posted declines, paced by San Francisco, Phoenix, Las Vegas, and Miami. On a year-over-year basis, home prices are down 17.44% from -16.6% previously reported.

U.S. consumer confidence improved to 44.9 in November, above the record low of 38.8 in October and the 39 expected by markets. However, it is well below the 95.2 reading seen a year ago. Expectations rose to 46.7 from 35.7. However, present situations slipped to 42.2 from 43.5 on continued job fears, with those saying jobs are "hard to get" is 37.2, up from 36.6% in the prior month. The 12-month inflation index fell to 5.9% from 6.8%.

"The data are a bit better than expected, [but] job concerns still weigh on household moods to reflect soft spending ahead," says S&P senior economist Beth Ann Bovino.

The International Council of Shopping Centers and Goldman Sachs weekly sales index fell 0.9% in the week ended Nov. 22 after rising 0.3% the week before. Sales declined 0.8% on a year on year basis after falling 0.1% the week before.

Reuters reports the World Bank forecast the Chinese economy will grow next year at 7.2%, the slowest pace since 1990, as the impact of global financial turmoil intensifies and the real estate sector remains in the doldrums. The World Bank in June had forecast 2009 gross domestic product growth of 9.2%. It already expects growth this year to moderate to 9.4%, the first single-digit pace of expansion since 2002, from a breakneck 11.9% in 2007. Louis Kuijs, the senior economist in the bank's Beijing office, said one silver lining was that inflation had disappeared from the radar as demand softened and raw material prices tumbled. The bank expects consumer prices to rise just 2.0% next year after a 6.5% increase in 2008.

The bank is much gloomier than its sister organization, the International Monetary Fund, which on Monday forecast 8.5% growth for China next year.

In other U.S. markets Tuesday, the 10-year Treasury note was up 1-31/32 to 105-17/32 for a yield of 3.106% and the 30-year bond was up

2-10/32 to 115-04/32 for a yield of 3.657% after the Fed announced plans to purchase as much as $600 billion in mortgage securities. The Fed move prompted investors to hedge against losses in their portfolios, according to Bloomberg dispatch.

Th U.S. dollar index was lower at 85.06.

January West Texas Intermediate crude oil futures were off $3.66 to $50.84 per barrel Tuesday on profit taking from a two-day rally. There is some speculation tomorrow's Dept. of Energy report will show increases in inventories due to a demand slowdown. The American Petroleum Institute reported last week that U.S. fuel demand dropped 5.2% in the first 10 months of the year, the biggest drop since 1981.

December gold futures were lower at $818.10 per ounce Tuesday on profit taking from a two-day rally. The market could see some volatility as traders and funds adjust portfolios at the end of the month, says S&P MarketScope.

Among Tuesday's stocks in the news, Hewlett-Packard (HPQ) posted fourth-quarter non-GAAP EPS of $1.03, vs. 86 cents one year earlier, on a 19% revenue rise. EPS was in line with HP's preannouncement. Based on current exchange rates, the copmpany now expects an unfavorable year-over-year currency impact on revenue of about 5 percentage points in the fiorst quarter and roughly 6-7 percentage points for fiscal 2009. It sees first-quarter revenue of about $32 billion-$32.5 billion, with non-GAAP EPS of 93 cents-95 cents, and fiscal 2009 revenue of $127.5 billion-$130.0 billion, with non-GAAP EPS of $3.88-$4.03.

The board of mining giant BHP Billiton (BHP) said it no longer believes that completion of the company's unsolicited all-stock offer to acquire Rio Tinto (RTP) would be in the best interests of BHP shareholders.

Vimpel Communications (VIP) posted third-quarter earnings per American Depositary Share of 27 cents, vs. 45 cents one year earlier, despite a 45% revenue rise. The company notes net income was negatively affected by currency exchange rate fluctuations, resulting in a $341 million net forex loss as 82% of its debt was denominated in US dollars. Vimpel said that while its operations have not yet been affected by the financial turmoil, it clearly understands it will not be immune to it going forward.

Analog Devices (ADI) reported fourth-quarter EPS from continuing operations of 49 cetns, vs. 30 cents one year earlier, on a 6% revenue rise. However, the company said order rates slowed in late September, and backlog declined significantly from the prior quarter, which limits ADI's short-term visibility. The company currently expects first-quarter revenue to decline sequentially by about 20%; it sees EPS from continuing operations of 22 cents-23 cents, excluding charges.

Inter Parfums (IPAR) cut its 87 cents 2008 EPS view to about 81 cents on revenue of about $445 million [down from its previous view of $460 million], citing the recent sustained strength of the U.S. dollar against the euro. The company believes 2009 will continue to be challenging with the likelihood of a prolonged global recession. It says its initial guidance for 2009 in absolute dollars calls for net sales of about $405 million and EPS of 85 cents.
Copyright © 2008 The McGraw-Hill Companies Inc. All rights reserved.

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source: www.reuters.com

Tue Nov 25, 2008 5:16am EST

By Natsuko Waki

LONDON (Reuters) - European stocks fell more than 1 percent on Tuesday and the low-yielding yen rose broadly as euphoria surrounding the U.S. rescue of Citigroup gave way to concerns about sharply deteriorating major economies. Washington's announcement late on Sunday to shoulder most losses on about $306 billion of Citi's risky assets and inject new capital boosted world stocks by 6.6 percent on Monday.

However, investors were quick to take profits on stocks as well as oil, worrying that more banks might be forced to seek government help and that the rescue plan was unlikely to change the fact that the world economy is slowing fast.

News that top global miner BHP Billiton walked away from its hostile offer for rival Rio Tinto and major insurer AXA cut its 2008 underlying profit outlook reminded investors of a tough environment facing corporates.

Furthermore, the World Bank said China's growth -- once seen as the engine of the world economy -- could slow to 7.5 percent in 2009, its slowest pace of expansion since 1990, due to the intensifying impact of global financial turmoil.

"Given the scale of the rally in risk assets (on Monday) investors are reassessing the situation and are less willing to chase the rally higher," BTM-UFJ currency economist Lee Hardman said.

"The underlying conditions are not conducive for further gains...in risk assets, with below-trend growth across the globe and financial markets in a severe state of distress."

The FTSEurofirst 300 index of leading European shares fell 1.6 percent, after rallying nearly 9 percent on Monday -- its second biggest one-day percentage rise on record.

Shares in Rio Tinto fell 38 percent, with the basic resource shares falling nearly 9 percent. AXA shares fell 13.5 percent.

A 3 percent rise in Asian stocks helped MSCI world equity index post a 0.4 percent gain. Emerging stocks rose 2.2 percent.

U.S. crude oil fell 3.5 percent to $52.46 a barrel after rising more than 9 percent on Monday.

The December bund futures rose 25 ticks as European shares slipped. The low-yielding yen rose more than 1 percent to 95.81 per dollar while the dollar rose 0.5 percent against a basket of major currencies.

U.S. data due later includes a preliminary reading for third-quarter growth. The U.S. economy is expected to have contracted 0.5 percent in the three months ending September.

Interest rate futures are fully pricing in the Federal Reserve to cut interest rates by half a point to 0.5 percent in December.

"Although we expect the Fed to lower its Fed fund target rate to zero in January next year, the market has not fully priced in the Fed's zero interest rate policy," JP Morgan said in a note to clients. "Therefore, any negative surprises from the U.S. releases should heighten speculation for more aggressive Fed cuts."

(Additional reporting by Jessica Mortimer; Editing by Victoria Main)

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source: www.bloomberg.com

By Chris Fournier

Nov. 24 (Bloomberg) -- Canada’s currency strengthened for a second day after global stocks gained, buoyed by a bailout of Citigroup Inc. and speculation that governments will move to stimulate faltering economies.

“The stock market obviously likes the Citibank bailout,” said Aaron Fennell, a Toronto-based futures and currency broker at MF Global Canada Co., a unit of MF Global Ltd., the world’s largest broker of exchange-traded futures and options. “The stock market is up, which gives the impression that the U.S. economy is a bit stronger and boosts the Canadian dollar.”

The Canadian dollar appreciated as much as 3.5 percent to C$1.2244 per U.S. dollar, from C$1.2668 on Nov. 21 when it gained 2.3 percent. It traded at C$1.2344 at 4:05 p.m. in Toronto. One Canadian dollar buys 81 U.S. cents.

The loonie, as Canada’s dollar is known because of the aquatic bird on the one-dollar coin, will strengthen to around C$1.15 in the coming weeks, Fennell said.

“Short-term trends have turned abruptly against the U.S. dollar and in favor of the Canadian dollar,” Shaun Osborne, chief currency strategist at TD Securities Inc. in Toronto, wrote in a note to clients. Osborne predicts “ongoing corrective pressure” will drive the Canadian dollar back to the C$1.20 to C$1.22 “corrective retracement targets.”

Europe’s Dow Jones Stoxx 600 Index climbed 8.4 percent. London’s FTSE 100 Index added 9.8 percent, the most on record. The Standard & Poor’s 500 Index gained 6 percent. Crude oil for January delivery rose $4.68, or 9.4 percent, to $54.61 a barrel. Crude accounts for about a tenth of Canada’s exports.

Citigroup, which has $2 trillion of assets and operations in more than 100 countries, received $306 billion of U.S. government guarantees.

‘Positive Developments’

“Positive developments at Citibank were the main catalyst for stocks to rally today,” said Adam Cole, global head of foreign-exchange strategy at the Royal Bank of Canada in London. Speculation “remains rife” that an economic stimulus plan will be in place by the time President-elect Barack Obama takes office on Jan. 20, Cole added.

Senator Charles Schumer, Democrat from New York, said yesterday on ABC’s “This Week” program that the stimulus package will be between $500 billion and $700 billion.

Stimulate the Economy

Canadian Prime Minister Stephen Harper said yesterday that if necessary the country would run a “short-term” deficit to stimulate the economy. Finance Minister Jim Flaherty said he will cut taxes to boost economic growth as the world’s eighth-largest economy heads for a possible recession.

Statistics Canada will release retail sales data tomorrow at 8:30 a.m. in Ottawa.

The yield on the two-year government bond rose as much as five basis points, or 0.05 percentage point, to 1.86 percent. It last traded at 1.83 percent. The price of the 2.75 percent security due in December 2010 fell 3 cents to C$101.84.

The 10-year note’s yield increased 3 basis points to 3.50 percent. The price of the 4.25 percent security maturing in June 2018 declined 23 cents to C$106.07.

The decline in bond prices “is occurring globally,” said Derek Holt, an economist at Scotia Capital Inc. in Toronto. “Weekend chatter about fiscal stimulus is at the heart of it.”

The U.S. government is prepared to provide more than $7.76 trillion on behalf of American taxpayers, according to data tabulated by Bloomberg News.

The 10-year bond yielded 167 basis points more than the two- year security. The so-called yield curve reached 184 basis points on Nov. 6, the steepest since May 2004.

The yield advantage of Canadian government bonds compared with similar-maturity 10-year U.S. Treasury notes was 15 basis points. The U.S. security yielded 39 basis points more than its Canadian counterpart on June 25, the most this year.

Canadian government bonds have returned 6.3 percent in 2008, according to Merrill Lynch & Co. index statistics. U.S. Treasuries have returned 9.1 percent this year.

To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
Last Updated: November 24, 2008 16:07 EST

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source: www.coloradoan.com

James L. Watt, CPA/PFS, • November 23, 2008

With stock prices volatile and in retreat, many investors are turning to U.S. government securities for safety, predictability and liquidity.

Treasuries have tax advantages, are in demand by investors worldwide and are the most liquid of all capital investments. Trading in U.S. Treasury securities is a 24/7 activity.

Individuals but not companies can buy Treasury securities directly from the government at auction using Treasury Direct or in the secondary market through a broker. If buying at Treasury Direct, the buyer receives the average price at which big investors purchased the security.

U.S. Treasury securities are obligations of and are guaranteed for both principal and interest by the U.S. government.

Bills, notes and bonds are the principal government securities. Treasury bills, or T-bills, are issued in 4-, 13-, 26-, and 52-week maturities and are bought/sold at a discount from face value.

The difference between the face value and the purchase price is the discount. T-bill discounts are expressed at an annualized rate or yield. The yield is the bond equivalent yield an investor would use to compare treasuries with other securities of comparable maturities.

As this column is written, the T-bill maturing Oct. 22 is quoted at 1.16 bid and 1.15 ask. The seller is willing to sell at a 1.15 percent annual yield and the buyer is willing to buy at a 1.16 percent annual yield. The yield on the ask price is 1.176 percent. You might think the small difference is not meaningful. It isn't to you and me, but it is if the investment is $100 million or more.

Treasury notes are issued with maturities of more than one year but less than 10 years. Notes are commonly issued with maturities of 2, 3, 5 and 10 years. Treasury bonds have maturities of 10 years to 30 years. Note and bond interest is paid at six-month intervals. The 30-year bond, or long bond, is a favorite of retirement plans and insurance companies.

Long bonds (also bills and notes) can be purchased at issue or in the secondary market, and maturities can be matched with expected obligations of the purchaser.

Parents might purchase bonds with maturities coinciding with the enrollment of their children in college. A retiree might ladder a series of treasury issues with one maturing each year during an expected retirement life.

Treasury notes and bonds are actively traded. Bid and ask prices are quoted per $100 of the security's face value. The number following the decimal is 32nd of a dollar. The bid is the price the buyer is willing to buy at, and the ask is the price the seller is willing to sell at. As this column is written, the 3 1/8 percent T-note maturing in November 2009 is bid at 101.31, or $101.96875. The asked price is 102, or $102. The annual yield on the ask price is 1.20 percent.

Other common Treasury securities include inflation-indexed securities, or TIPS; stripes; and U.S. savings bonds.

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source: www.bloomberg.com

By Elizabeth Stanton

Nov. 22 (Bloomberg) -- U.S. stocks dropped for a third week on signs of a deepening recession and growing concern about the fate of Citigroup Inc. and the nation's automakers.

The Standard & Poor's 500 Index rallied from an 11-year low yesterday after President-elect Barack Obama picked New York Federal Reserve Bank chief Timothy Geithner as Treasury secretary. Citigroup, the largest U.S. bank by assets, plunged 60 percent this week on concern more customers will default as the economy worsens. General Motors Corp., the biggest U.S. automaker, touched the lowest since the 1930s as Congress delayed action on a bailout for the industry. Treasuries gained, pushing yields to record lows, as investors sought safer assets.

``When you see the annihilation of Wall Street, when you see the auto industry on the verge of bankruptcy, and when you see Citigroup that supposedly was a sound company driven to its knees with the price of its stock, it strikes a chord of fear in people's hearts,'' said Bruce McCain, the Cleveland-based chief investment strategist at Key Private Bank, which manages about $30 billion.

The S&P 500 fell 8.4 percent to 800.03. Its close at 752.44 on Nov. 20 was the lowest since April 1997. The Dow Jones Industrial Average slid 450.89 points, or 5.3 percent, to 8,046.42. The Russell 2000 Index of small-company stocks retreated 11 percent to 406.54.

`Very Deep Recession'

The S&P 500 extended its 2008 retreat to 46 percent, which would be the worst annual drop since 1931. Concern the recession is worsening was spurred after jobless claims approached the highest level since 1982, prices paid to U.S. producers plunged by the most on record and the Federal Reserve said manufacturing in the Philadelphia area shrank at the fastest pace in 18 years.

``The stock market is coming around to start agreeing with the bond market, and basically saying we're headed for a very, very deep recession, possibly a depression,'' said Robert Arnott, the founder of Pasadena, California-based Research Affiliates LLC, which manages $30 billion.

Financial companies in the S&P 500 plunged 24 percent as a group for the biggest drop in at least 19 years. Citigroup lost half its value in three days, ending the week at $3.77, after it said it will wind down seven off-the-books investment funds after failing to salvage them. The so-called structured investment vehicles, which Citigroup invented in 1988, emerged 15 months ago as one of the first casualties of rising default rates on subprime mortgages.

Insurers Plunge

The stock extended its declines yesterday after Chief Executive Officer Vikram Pandit told employees he doesn't plan to break up the company. Once the biggest U.S. bank by market value, Citigroup has now slipped to No. 5 behind Minneapolis- based U.S. Bancorp.

Hartford Financial Services Group Inc. and Lincoln National Corp. led insurers in the S&P 500 to a 19 percent drop on concern falling stock and corporate bond prices are producing investment losses that will force them to raise capital. Hartford sank 61 percent to $4.95. Lincoln National tumbled 56 percent to 6.36.

GM fell to as low as $1.70, a price it hasn't close below since before 1940, according to Global Financial Data in Los Angeles. The shares rallied yesterday to end the week higher by 1.6 percent to $3.06.

The chief executive officers of GM, Ford Motor Co. and Chrysler LLC met with Congress to seek $25 billion in aid they said is necessary to keep them in business. Democratic leaders blocked immediate action on loans and ordered the companies to make a case for the aid next month.

Oil Below $50

A gauge of energy shares in the S&P 500 slumped 4.3 percent, the most in six weeks. Crude oil plunged to $48.25 a barrel yesterday, the lowest since May 2005, before settling at $49.93, down 12 percent for the week.

Hess Corp., the fifth-biggest U.S. oil producer, lost 19 percent to $44.87. Chevron Corp., the second-largest, fell 3 percent to $70.49. Schlumberger Ltd., the world's biggest oilfield-services provider, declined 7.7 percent to $45.

Hewlett-Packard Co. rose the most in the Dow average, gaining 14 percent to $34.64. The biggest maker of personal computers reported fourth-quarter profit that beat analysts' estimates and forecast growth in 2009.

Dell Inc., the second-biggest PC maker, retreated 15 percent to $9.30. The company's third-quarter sales trailed analysts' projections by more than $1 billion, while earnings fell 5.1 percent.

Profit Declines

In aggregate, earnings fell 19 percent for the 475 companies in the S&P 500 that reported third-quarter results through Nov. 19, according to data compiled by Bloomberg. Companies scheduled to report next week include Campbell Soup Co., Deere & Co. and Tiffany & Co.

As Treasuries rose, the dividend yield on the S&P 500 exceeded the benchmark 10-year note's yield for the first time since 1958. The 10-year yield declined to 3.20 percent from 3.74 percent, and touched 2.99 percent, the lowest since the government began regular issuance of the securities.

A measure of the cost of using options to insure against declines in the S&P 500 gained 9.6 percent this week and rose to a record 80.86 on Nov. 20. The VIX, as the Chicago Board Options Exchange Volatility Index is known, fell yesterday to 72.67 as stocks climbed on Obama's pick of Geithner as head of the Treasury.

Geithner helped lead U.S. efforts to combat the deepest financial crisis in seven decades, helping oversee the decisions to take over American International Group Inc., rescue Bear Stearns Cos. and allow Lehman Brothers Holdings Inc. to fail. The S&P 500 rallied in the last hour of trading yesterday after reports of his appointment, closing higher by 6.3 percent.

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net

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SOURCE http://biz.thestar.com.my

PETALING JAYA, MALAYSIA: Foreign currency deposits or accounts in the country have increased after the exchange rates of several currencies dropped about 30% or more against the ringgit over the last few months, according to senior banking officials.

More liberal forex regulations had also boosted foreign currency deposits, they said.

“First, foreign currencies offer a way to protect their (local customers) cash holdings against fluctuations.

“This is especially when they have frequent or upcoming needs for foreign currencies,” Standard Chartered Bank Malaysia Bhd head of wealth management, Choong Wai Hong, told StarBiz.

Some of the needs include travelling, personal or children’s education, remittances, overseas investments or large purchases.

According to HSBC Bank Malaysia Bhd personal financial services general manager, Lim Eng Seong, the currencies that were sought after included the US dollar, pound sterling, Australian dollar and the euro.

“One of the main reasons that these currencies are in demand is for education purposes as these countries are favourite destinations for overseas studies,” Lim added.

According to production manager Kesavan Keecha, the declining value of the Australian dollar has been encouraging as he has to pay for his son’s education fees in Australia.

“The Australian dollar has fallen a lot since a year ago when my son started his studies there,” he said, adding that the exchange rate of the ringgit against the Australian dollar was 3.1 a year ago compared with 2.3 currently.

Another pull factor was the higher interest rates offered by some banks for foreign currency deposits, Choong said.

“Standard Chartered offers 4.5% to 6% in interest yields for currency deposits in pound sterling, Australian and New Zealand dollar, depending on the tenure and currency selected,” he said.

Currency speculation was another factor.

“The flip side is, of course, it also exposes depositors to currency depreciation,” he added.

Lim said the liberalisation of foreign exchange administration rules by Bank Negara in April last year had opened up the market to Malaysians.

“This has led to customers’ interest and boosted foreign currency deposit sign-ups,” Lim said.

For Bank Negara reports click here

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source: www.reuters.com

Wed Nov 19, 2008 4:16pm EST

BUENOS AIRES, Nov 19 (Reuters) - Argentine stocks fell on Wednesday, dragged down by a sell-off on Wall Street and persistent investor worries about a global recession, which also pushed bonds and the peso currency lower.

The MerVal benchmark index slid 2.06 percent to close at 925.35 points, extending losses over the last three sessions to more than 9 percent.

"The ups and downs of the Dow Jones continue to weigh on the MerVal," said Dionisio Corneille, director of Corneille brokerage. "Nobody wants to do anything risky with the markets so volatile."

Stocks in the United States tumbled as uncertainty over a possible rescue plan for the U.S. auto industry fueled concerns a slump in the world's biggest economy is deepening.

In Buenos Aires, Banco Frances (FRA.BA: Quote, Profile, Research, Stock Buzz) fell 6.69 percent to 2.65 pesos. Heavyweights Petrobras (APBR.BA: Quote, Profile, Research, Stock Buzz), Brazil's state-run energy company, slid 5.7 percent to 33 pesos, and Tenaris (TENA.BA: Quote, Profile, Research, Stock Buzz), the world's leading producer of seamless steel tubes for the energy industry, lost 4.55 percent to close at 36.7 pesos.

On the broad market, volume was a muted $19.9 million. Of active issues, 12 advanced, 39 declined and 12 were unchanged.

Argentine bond prices slipped as investors also eyed a Thursday vote in the Argentine Senate over a government plan to take over the country's private pension funds.

The move sent Argentine financial markets tumbling when it was announced last month.

Locally traded government bonds shed 0.7 percent on average, with the dollar-denominated Bonar 2014 falling 2.4 percent.

The peso weakened 0.15 percent to 3.325/3.3275 per dollar in formal interbank trade, and fell by the same amount to 3.37/3.375 per dollar in informal trade between foreign exchange houses, as measured by Reuters. (Reporting by Walter Bianchi; Writing by Kevin Gray; Editing by Leslie Adler)

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source: www.reuters.com

Nov 18, 2008 9:38am

NEW YORK, Nov 18 (Reuters) - Verizon Wireless is expected to sell bonds Tuesday via Banc of America Securities, Barclays, Citigroup and Morgan Stanley, according to IFR, a Thomson Reuters publication.

The two-part deal will be benchmark size, which is typically at least $1 billion. Pricing is expected Tuesday.

Verizon Wireless is rated "A2" by Moody's Investors Service and "A" by Standard & Poor's, or sixth-highest investment grade in the agencies' different scales.

he company, a joint venture between Verizon Communications (VZ.N: Quote, Profile, Research, Stock Buzz) and Vodafone (VOD.L: Quote, Profile, Research, Stock Buzz), has said it planned to issue debt to help finance its planned $28.1 billion acquisition of privately held Alltel Corp. (Reporting by Ciara Linnane; Editing by James Dalgleish)

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source: www.prweb.com

Orlando, FL (PRWEB) November 18, 2008
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To learn more about forex and Forex Justice visit their website at www.forexjustice.com.

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source: www.reuters.com

Tue Nov 18, 2008 6:09am EST

ISTANBUL, Nov 18 (Reuters) - Turkish stocks slumped to their lowest levels in more than three years on Tuesday and the lira continued its decline versus the dollar, as the prospects of a deep global recession intensified, battering markets worldwide.

Turkish stocks .XU100 closed morning trading down 3.2 percent at 23,279 points, their lowest level since early 2005, accentuating Monday's losses when the index closed down 5.42 percent.

Stocks traded in-line however with the MSCI emerging stocks index .MSCIEF, which weakened 3.3 percent.

"Nothing seems to stop the bearish outlook in the near term," said Deniz Can Yucel, head of equity research at Yatirim Finansman Securities.

"The delay of the agreement with the IMF and downgrades by S&P for Turkish banks after the country's outlook was downgraded have put further pressure on the market," he said, adding hedge fund redemptions were also playing a big role in the sell-off.

On Monday Standard & Poor's Ratings Service downgraded its outlooks on seven Turkish banks including Is Bank (ISCTR.IS: Quote, Profile, Research, Stock Buzz) and Garanti Bank (GARAN.IS: Quote, Profile, Research, Stock Buzz) to "negative" from "stable" due to more difficult financing conditions, and likely weaker loan growth and financial performance.

Major Turkish lender Akbank (AKBNK.IS: Quote, Profile, Research, Stock Buzz), whose shares traded down 2.5 percent at 3.9 lira, said on Tuesday it had not made any changes in its growth targets, brushing aside media reports that it had cut staff levels by around 1,000.

Turkish business leaders have been lobbying the government to strike a new deal with the International Monetary Fund to restore investor confidence in the emerging market country after the previous stand-by loan agreement expired in May.

Analysts at Is Bank wrote in a research note equities might find some support as the index neared the 23,500 level.

The lira slipped to 1.6595 against the dollar on the interbank market from Monday's close of 1.6330.

Turkish stocks have now lost 58 percent of their value since the start of 2008 -- and third quarter earnings from Turkish companies have provided little comfort. The lira has lost approximately a third of its value against the dollar this year, and is now trading at levels from early 2006.

The yield on the benchmark June 23, 2010 bond <0#trtsysum=is> rose to 22.59 from 22.08 percent on Monday.

(Reporting by Alexandra Hudson; editing by Stephen Nisbet)

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Wed Nov 12, 2008 7:44am EST
source: reuters

* Euro/dollar pares early gains, pressured by weak data
* Shaky stocks keep risk aversion high, supporting dlr, yen
* Sterling hits 6-yr low vs dollar after grim BoE forecast
* Pound hits record low vs euro at 82.37 pence
(Adds quotes, updates prices, changes byline)


By Naomi Tajitsu

LONDON, Nov 12 (Reuters) - The euro pared gains against the dollar on Wednesday after data underlined economic weakness, while sterling tumbled after a grim Bank of England forecast fuelled expectations for more UK interest rate cuts.

Sterling hit a six-year low against the dollar and a record trough against the euro after the BoE's quarterly Inflation Report predicted the UK economy will shrink sharply next year and inflation may fall to just below 1 percent [ID:nBOE001620].

A tentative improvement in European share prices offered some support to the euro, but the currency stayed on the back foot after data showed euro zone industrial production fell more than expected by 1.6 percent on month in September [ID:nLC724790].

This bolstered the view that a further fall in European Central Bank rates, now at 3.25 percent, was inevitable [ECB/INT] to counter the effects of a worldwide downturn.

"The production data confirms that the euro zone is in a technical recession. It confirms that more rate cuts are coming from the ECB," said Lena Komileva, G7 market economist at Tullet Prebon in London.

Eonia interest rate futures indicate that markets are pricing in another big rate cut, with ECB rates seen around 2.5 percent by next month.

By 1204 GMT, the euro rose 0.4 percent to $1.2570, but hovered well below a session high of $1.2632. It hit a two-week low of $1.2481 earlier in the day, according to Reuters data.

European stocks traded 0.6 percent higher, paring gains made earlier in the day.

The euro rose 0.3 percent to 122.66 yen but stayed in range after hitting 121.23 yen, its weakest level since late October, on electronic trading platform EBS earlier in the day.

The dollar fell slightly to 97.60 yen .

Analysts said risk aversion would keep higher-yielding currencies like the euro under selling pressure, supporting lower-yielding currencies like the dollar and the yen.

"Given risks to the global economy, investors are holding cash and holding safe-haven which means heading back into Treasuries and the U.S. dollar," said Geoffrey Yu, currency strategist at UBS in London.

STERLING STUNG

Sterling dropped roughly one percent against the dollar to $1.5204 according to Reuters data, its weakest level since 2002, after BoE Governor Mervyn King told reporters that the central bank was prepared to ease monetary policy even more after a stunning 150 basis point cut to 3.25 percent last week.

The UK currency also fell around one percent against the euro, hitting an all-time low of 82.37 pence according to Reuters data, after the BoE's gloomiest forecast in more than a decade.

Against a basket of currencies, sterling <=GBP> hit a 12-year low.

"The overall message of this report is that the UK economy is in recession and likely to stay there for the time being, and that, without further monetary easing, inflation is likely to undershoot the BoE's target," said Daragh Maher, deputy head of currency strategy at Calyon in London.

Sonia interest rate futures indicate that markets have fully priced in another 50 basis point cut by next month.

(Additional reporting by Tamawa Kadoya; Editing by Ruth Pitchford)

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Wed Nov 12, 2008 6:03am EST
source: reuters

LONDON, Nov 12 (Reuters) - Building society Nationwide plans to raise 1.5 billion pounds ($2.3 billion) via a three-year government-backed bond, an official at one of the banks managing the sale said on Wednesday.

Guidance on the bond has been tightened to mid-swaps plus 18 basis points from initial guidance of mid-swaps plus around 20 basis points, the official said.

Nationwide is the fifth UK lender to make use of a government guarantee. Guidance on its deal was the same as a 1.4 billion sterling bond sold by Lloyds TSB (LLOY.L: Quote, Profile, Research, Stock Buzz) on Monday.

Lloyds also raised 2.0 billion euros via a three-year bond at the same spread over mid-swaps.

Order books for the Nationwide deal have reached over 4 billion pounds, said IFR, a Thomson Reuters publication.

Barclays, HSBC, RBS and UBS are joint lead managers on the deal.

(Reporting by Natalie Harrison)

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Jeremy Gaunt, Reuters
Published: Tuesday, November 11, 2008

LONDON - Economic gloom overpowered financial markets again on Tuesday, sending stock and commodity prices sharply lower as ebullience about China's US$600 billion stimulus plan fizzled out.

Wall Street looked set for losses at the open.

Bad news from corporate America - General Motors shares at a 62-year low, Goldman Sachs seen posting a first-ever quarterly loss, and No. 2 U.S. electronics retailer Circuit City's bankruptcy protection filing - overwhelmed any optimism.

The dollar turned slightly higher despite a short-lived bounce for the euro from an improvement in German economic sentiment.

"The support we saw in the early part of yesterday's session off the back of the Chinese economic stimulus plan is looking to have been rather short lived," Matt Buckland, dealer at CMC Markets, wrote in a note.

"Worrying corporate news from the U.S. plus suggestions that the recession will be longer and deeper than previously thought are adding to the downside."

The pan-European FTSEurofirst 300 stock index was down 3%, following a similar loss on Japan's Nikkei average.

Emerging market stocks as measured by MSCI lost around 3.8%, taking that index into negative territory in what would be the sixth month in a row for losses.

The emerging market index has lost nearly 55% of its value so far this year while its developed market counterpart has lost around 42%.

The worries about economic and corporate growth also spread to commodities, which had rallied strongly on Monday because of the Chinese stimulus package.

Oil lost 4.5% to about US$59.50 a barrel. Gold pared 1% to around US$738 an ounce and London copper tumbled 4%.

Demand for commodities - and hence their prices - generally falls when economies slow.

DOLLAR RECOVERS

The dollar and yen were broadly supported on the weak tone in equity prices.

The euro was down 0.2% against the dollar at US$1.2707 erased as the single currency was weighed down by weakness in European share prices.

"There is still the risk aversion factor which is supporting the dollar and yen but it is not quite as much as before, as currencies are settling into ranges," said Daragh Maher, currency strategist at Calyon in London.

The ZEW Institute's index of German economic sentiment came in at -53.5 in November, improving from -63.0 in October. It also beat market expectations for a reading of -62.0.

The euro hit a record high against sterling of 82.14 pence, according to Reuters data while the pound fell 0.5% against the dollar at US$1.5527.

The Japanese currency was down 0.1% against the dollar at 97.88 yen.

Euro zone government debt was mixed.

Two-year bond yields were flat at 2.396%, with 10-year yields 2 basis points higher at 3.694%.

© Thomson Reuters 2008

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source: Reuters

By Ellis Mnyandu

NEW YORK, Nov 3 (Reuters) - U.S. stocks headed for a flat open on Monday as caution ahead of key economic data offset signs of more thawing in credit markets.

Trading was likely to be light as Americans prepare to head to the polls on Tuesday to choose the next U.S. president, with investors sidelined ahead of the outcome of the elections.

Wal-Mart Stores (WMT.N: Quote, Profile, Research, Stock Buzz), up nearly 2 percent before the bell, is among stocks to watch after a brokerage raised its rating on the retailer.

Shares of Goldman Sachs (GS.N: Quote, Profile, Research, Stock Buzz) slipped 0.5 percent to $92 before the bell after Merrill Lynch forecast the U.S. bank to post a fourth-quarter loss instead of the profit that Merrill had previously forecast.

The costs for bank to borrow dollars from each other again fell, sending three-month rates down for a 17th straight day and boosting hopes that steps to restore confidence in credit markets are paying off.

Free-flowing credit is seen as crucial in helping avert an acute downturn as investors fret about a global recession.

"The fact that interbank rates are really coming down is an indication that we should begin to see the credit markets respond and that's going to be the key," said Peter Cardillo, chief market economist at Avalon Partners in New York.

He added that the market has probably discounted an election victory of Democrat Barack Obama, heading into Tuesday's U.S. presidential election.

"It looks like we will have a Democratic president, so the election and the anticipation of the economic data is probably going to keep the market in a very tight range for most of the session today and tomorrow as we go to the polls."

S&P 500 futures SPc1 shed 2.40 points and were about even with fair value, a formula to evaluate pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 dipped 22 points and Nasdaq 100 NDc1 futures shed 2.00 points.

Monday's economic diary includes the Institute for Supply Management October manufacturing index at 10 a.m. (1400 GMT). Economists in a Reuters survey expect a reading of 41.5 versus 43.5 in September. But the highlight of the week will be Friday's report on October U.S. nonfarm payrolls.

J.P. Morgan Securities raised Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz), a Dow component, to "overweight" from "neutral." Goldman Sachs added Boeing (BA.N: Quote, Profile, Research, Stock Buzz) to a "conviction sell" list, according to theflyonthewall.com.

Obama heads into Tuesday's voting in a comfortable position, with Republican opponent John McCain struggling to overtake his lead in every national opinion poll and to hold off his challenge in about a dozen states won by President George W. Bush in 2004.

Obama leads McCain in six of eight key battleground states, including the big prizes of Florida and Ohio, according to a series of Reuters/Zogby polls released on Monday.

Obama holds a 7-point edge over McCain among likely U.S. voters in a separate Reuters/C-SPAN/Zogby national tracking poll, up 1 percentage point from Sunday. The telephone poll has a margin of error of 2.9 percentage points. [ID:nN03354084].

U.S. stocks ended one of their worst months on record on Friday but signs of further thawing in credit markets sparked a search for bargains. (Editing by James Dalgleish)

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* Dollar, yen ease after stunning Oct as risk aversion cools

* World stocks in positive territory

* Global recession fears persist, further deleveraging seen

* U.S. election eyed

source: Reuters

By Veronica Brown

LONDON, Nov 3 (Reuters) - The euro and high-yielding currencies rose against the dollar on Monday, while the yen retreated broadly as abating risk aversion lifted stocks.

The scale of investors' deleveraging was highlighted in October, when the dollar index .DXY posted its biggest monthly percentage gain in 17 years and the euro suffered its largest monthly fall against the dollar and yen since its 1999 launch.

Concern about the prospect of a global recession was expected to limit gains in riskier assets and offer support to the low-yielding dollar and yen.

"The problem for the market is that all the trades that worked well for the past 5 years went badly very quickly," said Michael Rosborough, senior global FX strategist at Citigroup in London.

"On bounces like this you would expect to see people still liquidating and using them as an opportunity to lighten up on positions," he added.

By 1200 GMT, the euro was up 0.9 percent on the day at $1.2845 and rose 1.6 percent to 127.34 yen .

Sterling rose around 0.7 percent against the dollar to $1.6190 , while the dollar gained 0.7 percent to 99.14 yen . The high-yielding Australian and New Zealand dollars also rose around 1.4 percent versus the U.S. currency.

World stocks, as measured by MSCI's all-country index, rose 0.9 percent on the day .MIWD00000PUS.
Major events this week include the U.S. presidential election on Tuesday [ID:nN02470309], with a win by Democrat Barack Obama generally seen as more favourable for financial markets.

Also, the European Central Bank, the Bank of England and the Reserve Bank of Australia are all expected to lower interest rates to protect their struggling economies from the threat of a looming global recession.

Each of them is expected to cut rates by at least half a percentage point. The U.S. Federal Reserve last week cut its key rate by half a point to 1.0 percent and the Bank of Japan (BoJ) cut its rate to 0.30 percent from 0.50 percent.

Analysts said Britain's central bank could cut rates by more than the half percentage point that is expected.

"The risks are tilted toward an even larger move, as the upside risks to inflation have diminished significantly, according to resident BoE hawk (Tim) Besley," RBC strategists said in a note to clients.

Emerging giants China and India also cut rates last week.

Economic weakness was underscored by a report on euro zone manufacturing activity, which sank in October below record low levels initially estimated.

The Markit Eurozone Purchasing Managers Index for the manufacturing sector fell to 41.1 -- the lowest in the survey's 11-year history -- from September's 45.0. That was below the flash estimate and economists' forecasts of 41.3.

The release marks the fifth consecutive month the PMI index has been below the 50 mark that divides growth from contraction.

The U.S. Institute of Supply Management's factory activity index, due out at 1500 GMT, is also expected to show further weakness. Economists expect a reading of 41.5 versus 43.5 in September. (Reporting by Veronica Brown; editing by Swaha Pattanaik

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source: Reuters

NEW DELHI, Nov 3 (Reuters) - India will auction government bonds totalling 100 billion rupees ($2.05 billion) on Nov. 7, the finance ministry said on Monday.

It will sell the 8.24 percent 2018 government bond for 60 billion rupees, and another 8.28 percent 2032 bond worth 40 billion rupees.

Both will be sold through a price-based auction using the multiple price method, it said.

The government also plans to buy back 6.65 percent 2009 government bonds worth 50 billion rupees and another 5.48 percent 2009 government bond worth 50 billion rupees on Nov. 6. Both were issued earlier under the market intervention scheme.

($1=48.7 rupees)

(Reporting by Rajkumar Ray) Keywords: INDIA BOND/AUCTION XX:ams951135..4.0.-1.t.fip.XX.0.SZ.ukbp-xxnfip01a,ukbp-xxnfip01b#XP:ukbp-xxnfip01b ~

(rajkumar.ray@thomsonreuters.com; +91-11-4178-1006; Reuters Messaging: rajkumar.ray.reuters.com@reuters.net)

COPYRIGHT

Copyright Thomson Reuters 2008. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

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BSP used $10B to prop up peso, pay debt

source; business.inquirer.net

The foreign exchange stock of the central bank, Bangko Sentral ng Pilipinas (BSP), stock outside of its official foreign reserves dwindled by $870 million in September following severe global shocks that emanated from Wall Street.

The central bank’s latest report shows foreign exchange locked in foreign currency swaps and not yet booked as part of the country’s gross international reserves (GIR) had fallen to $2.69 billion at end-September—the lowest so far this year—from $3.56 billion a month earlier.

The BSP has been selling US dollars heavily to temper the peso’s sharp depreciation since March. It has been intervening on the foreign exchange market while conserving its GIR. As a result, the foreign exchange swaps have decreased from an all-time high of about $13 billion in January and February.

According to the latest report, the central bank has unlocked about $10 billion from the foreign currency swaps so far this year, to flush US dollars onto the currency spot market or to service some debts.

Currency dealers said that in recent months the central bank provided liquidity to the foreign exchange market whenever the peso fell sharply during intraday trading.

In the past two years, the BSP used foreign exchange swaps as a tool to mop up excess foreign exchange in the financial system. It bought dollars on the open market and swapped them for pesos to prevent excess foreign exchange from pushing inflation up.

In September, about $312 million worth of foreign portfolio investments in Philippine stocks, bonds and bank products flowed out of the country—the worst such outflow so far this year.

It was in mid-September when Wall Street woke up to find two of its venerable investment banks gone—Lehman Brothers filed for bankruptcy and Merrill Lynch was sold to Bank of America. At the same time, the world’s biggest insurance firm, American International Group, teetered on the brink. AIG received an $85-billion lifeline from the Reserve Bank of New York. The turmoil on Wall Street brought global risk aversion to new heights, exerting pressure on local currency, stock and bond markets.

At end-September, the GIR was $36.69 billion, enough for 5.8 months’ worth of imports of goods and payments of services and income. With editing by INQUIRER.net

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Sat, Nov 01, 2008
AFP

NEW DELHI, INDIA - INDIA'S central bank cut its key short-term lending rate on Saturday and took other monetary steps to spur lending and economic growth to counter the impact of the global financial crisis.

The Reserve Bank of India, citing 'unsettled' financial conditions, reduced its key short-term lending rate, the repo, by 50 basis points to ease a credit crunch. The repo is the rate at which it lends funds to commercial banks.

'The central bank is sending the message that it will provide stimulus for India's economy to grow by at least 7.0 to 7.5 per cent' in this financial year to March 20009, said Mr Rupa Rege Nitsure, economist at state-run Bank of Baroda.

As part of a triple-prong move, the bank also cut the amount commercial banks must keep in reserve, easing the cash reserve ratio to 6.5 per cent from 5.5 per cent - pumping billions of dollars into the financial system.

And in another stimulus step, it cut the statutory reserve ratio - the amount banks must hold in government securities - to 24 per cent from 25 per cent to boost liquidity. Banks around the world have been lowering rates to spur growth, with the US Federal Reserve on Wednesday slashing its main policy rate to one percent and neighbouring China also lowering key interest rates.

Expectations swept the stock market Friday that the bank would move soon to boost liquidity after corporate complaints that credit was extremely tight and data showed lower inflation than had been expected. But the timing was uncertain.

The bank said it took the steps 'in view of the ebbing of upside inflation risks and also to address concerns relating to the moderation in the growth momentum' and promised 'swift' further action as appropriate.

The move, announced on a Saturday when financial markets were closed, were the latest in a slew of easing steps by the bank to stabilise domestic markets which have been feeling the heat from the global crisis.

India's stock market has tumbled by 53 per cent from January highs as risk-averse foreign investors have pulled out their funds while the rupee has tumbled by nearly 20 per cent against the dollar this year to record lows.

'Global financial conditions continue to remain uncertain and unsettled, and early signs of a global recession are becoming evident,' the bank said on its web site.

'These developments are being reflected in sharp declines in stock markets across the world and heightened volatility in currency movements.'

The steps came after India's inflation rate earlier in the week fell below 11 per cent for the first time since May to hit to 10.68 per cent. Analysts forecast it will fall to single digits by Nov or Dec as a result of falling global commodity prices and slowing economic growth.

Industry bodies have been clamouring for rate cuts to ease the impact of the financial crunch on companies while the government has become concerned about the slowing of India's previously red-hot growth.

The moves reflected that the bank is 'terribly worried about growth and worried about the disruption' in lending activity and 'lack of access to credit,' said Mr Abheek Barua, chief economist at HDFC Bank.

The central bank has forecast economic growth slowing to between 7.5 and eight per cent while private economists see expansion slipping as low as seven per cent after the economy grew by nine percent last year.

While still strong, seven per cent growth is not enough to pull India's hundreds of millions of poor out deep poverty, economists say.

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