Stocks, Bonds & Forex Trading
Source: www.forexhound.com

FXYard Ltd , FXYard Ltd - Published 01.29.2009 08:30 GMT

Yesterday's trading was highlighted by the Dollar's rally across the board after the release of the Federal Reserve's statement on Wednesday afternoon during the New York trading session. The greenback jumped against the EUR with the pair plunging below a significant support level of 1.3100. The Dollar also reversed most of its downward momentum against the Pound, closing the day at 1.4155. Against the Japanese Yen, the Dollar rose from 89.22 to end the day at 89.68.

The Dollar began the day in the red as traders feared the Fed may take up more unconventional methods of battling the U.S. economy's downturn. It was suspected that the Fed would buy long-term Treasury bonds in order to help lower U.S mortgage rates. There were also rumors in the market that the Fed would undertake efforts to prevent deflation from occurring. Traders have a negative view of these tactics as a rise in inflation would significantly hurt the Dollar's purchasing power.

Other traders have also taken the view that the Fed has been very aggressive in tackling the economic crisis in the U.S. The Federal Reserve was out in front of its European and British counterparts, slashing interest rates and aggressively adding bad banking assets to its balance sheet to support the U.S. banking industry. This has helped to create positive momentum for the Dollar.

Today's trading of the USD will focus on two pieces of fundamental data. Due to be released today is the core durable goods orders and new unemployment claims. Both indicators are expected to show sharp declines. This may hurt the Dollar in the short term, perhaps sending the EUR/USD higher to the 1.3200 mark by day's end.


* EUR
Interest Rate Speculation Provides a Temporary Boost to the EUR
The EUR experienced high volatility in the wake of a speech by European Central Bank (ECB) President Jean-Claude Trichet. During a speech at the World Economic Forum (WEF) in Davos Switzerland, Trichet hinted that the ECB may hold interest rates steady for their upcoming policy meeting scheduled for Feb 5th.

The ECB has repeatedly reduced European interest rates in light of the economic recession in the Euro-Zone economy. Currently the Minimum Bid Rate stands at a record low 2.00%. Market analysts have forecast a rate cut of 0.50% during the ECB's next meeting. ECB board members must now balance the ability to ease monetary policy to fight the economic downturn in the Euro-Zone, while avoiding cutting rates too much too quickly. Policy-makers fear that a sharp drop in interest rates could lead to future inflationary pressures.

A report released today by the International Monetary Fund (IMF) was an updated economic forecast for the Euro-Zone economy. The IMF slashed its growth rate projection from a decline of 0.50% to a much larger contraction of 2.00%.

The Euro-Zone economy appears to be deteriorating faster then previously thought. But policy-makers may be sending mixed signals to the market. The ECB has not kept up with the Bank of England or the Federal Reserve in its mission to stem the tide of the economic downturn. Perhaps more aggressive moves are needed by the ECB. Then we may see some appreciation in the EUR.

* JPY
Strengthening USD Puts Downward Pressure on the Yen
The USD/JPY was driven higher today on the Fed's comments and an increase in risk appetite. Fueling the appreciation of the Dollar was a rise in the Dow Jones Industrial Average. When U.S. equity markets rise, this pair tends to rise as well. Also fueling an increased risk appetite was the passage of Barack Obama's economic bailout plan by the U.S. House of Representatives. These factors helped to rally the USD/JPY to end the day at 89.68. The pair now stands at a one-week high.

The Yen is largely seen as a safe haven currency to be used during times of financial distress. As traders grow more comfortable taking on further risk, they will abandon their positions in the Yen for the USD and higher yielding currencies. Risk sentiment appears to be improving as the Federal Reserve and the Obama administration are teaming up to restore confidence and future prospects for a stable economic recovery. This may boost the USD/JPY in the near term and we may see the pair rise to the 91.00 level.

* Oil
Crude Supplies Drop the Price of Oil
The price of Crude Oil dropped yesterday as U.S. Crude Oil Inventories were reported to be almost 2.5 times higher than forecasted. This helped to lower the price of Oil to end the day down at $41.51, though the drop in price was less significant than yesterday's plunge.

The rising inventories are an example of what is occurring in the market for Crude Oil. There is currently a glut of supply with wavering demand. Oil refineries have not cut production enough to arrive at equilibrium with demand. These market forces will settle once a return of confidence is seen in the global economy. Traders may look for further easing of the price of Crude Oil as the $40 mark could be in sight once again.

Technical News
* EUR/USD
After witnessing a significant drop yesterday, this pair appears to have found a short-term equilibrium. The oscillators on all charts are indicating a lack of direction for this pair with the only useful information being given by the weekly chart's Momentum oscillator which shows that the downward movement may continue. Waiting for a clearer signal might be the right strategy today.

* GBP/USD
It appears that the price is currently floating in the over-sold territory on the hourly chart's RSI indicating an upward correction may occur in the very near future. The price of this pair is also located near the lower border of the hourly chart's Bollinger Bands, which lends support to the notion of an imminent upward correction. Going long with tight stops might be the right choice today.

* USD/JPY
The Slow Stochastic on the 4-hour chart is showing a bearish cross has just occurred and is pushing the pair further down. The weekly chart's Momentum oscillator also indicates a continuation of the downward movement. On the contrary, the hourly chart's Slow Stochastic may be forming a bullish cross in the near future, signaling the downward movement may witness an upward correction within a short time frame. Going long with tight stops might be a good strategy for the short-term today.

* USD/CHF
The price of this pair appears to be floating in the over-bought territory on the 4-hour chart's RSI indicating a downward correction may be imminent. A bearish cross forming on the 4-hour chart's Slow Stochastic supports this notion. Going short might be the right choice today.

The Wild Card
* Gold
The price of this commodity appears to be hovering near the over-sold territory on the hourly and 4-hour charts' RSI, signaling an upward correction may occur soon. The imminent bullish cross on the 4-hour chart's Slow Stochastic adds weight to this notion, while the weekly chart's Momentum oscillator also shows sharp upward pressure. As this commodity continues to surge upwards,
forex traders have the potential to join the upswings by entering early at great prices and capturing their profits.

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Stocks, Bonds & Forex Trading
Source: www.businessweek.com

January 29, 2009, 12:01AM EST

With returns on Treasuries remaining low, investors are beginning to discover the fat yield spreads to be found in corporate junk bonds

By David Bogoslaw

With yields on longer-dated Treasury securities on the rise since the start of 2009, there's been some debate about how the Federal Reserve should proceed if it wants to keep interest rates capped in order to free up more credit to individuals and small businesses. On Jan. 28, the Federal Open Market Committee, the central bank's policy-making arm, voted to maintain the target range for the Fed funds rate at zero to 0.25% and said it wouldn't purchase Treasuries at this time.

From one perspective, the implications of higher Treasury yields for homeowners seeking to refinance adjustable-rate mortgages at affordable fixed rates and other cash-strapped consumers and business owners shouldn't matter much. After all, it was the Fed's announcement that it would buy up to $500 billion in mortgage-backed securities that pushed mortgage rates substantially lower after they failed to drop in concert with falling Treasury rates.

For investors, on the other hand, Treasury yields can't rise fast enough. The prospect of yields staying relatively tame for the foreseeable future has investors already looking for alternative places to place their cash.

Coming Auctions

Ideas as to what's behind the uptick in Treasury yields—and the drop in prices—vary depending on who you speak with. Some fixed-income managers see it as a simple matter of supply and demand, with $70 billion worth of two- and five-year notes to be auctioned this week and an estimated $66 billion in three-, 10-, and 30-year securities to be offered the second week of February, according to The Wall Street Journal.

Others view the bounce in yields over the past month or so as a correction to an overdone rally in Treasury prices in the final weeks of 2008, when investors, spooked by the apparent freefall across a range of asset classes, fled to the relative safety of government debt. "It shows from a reflationary standpoint you're getting some confidence that the Fed and the rest of the federal government will be able to keep us out of a depression," says Jamie Jackson, portfolio manager for fixed income at Riversource Investments (AMP) in Minneapolis.

To David Glocke, a principal and portfolio manager at the Vanguard Group in Valley Forge, Pa., however, all bets on an economic recovery in 2009 and possibly even 2010 are premature.
Frozen Credit Flows

The global recession is serious and won't easily be fixed, despite the growing size of the stimulus package the Obama Administration is throwing at it, says Glocke. He cites the possibility that the unemployment rate will reach 10% as endemic of recessionary conditions that would imply interest rates will stay low for an extended period of time. Much of the government stimulus money already released through TARP hasn't flowed through to individuals and small businesses. People aren't buying cars, and they're having difficulty refinancing their homes despite the drop in mortgage rates, because lending standards have tightened and the current value of their homes in many cases are less than what they owe, he points out.

"The mechanism to allow individuals to contribute to a recovery by taking advantage of lower interest rates is broken," says Glocke.

Although he believes the Fed still has the ability to manage interest rates through direct purchases of agency debentures, mortgage-backed securities, and/or U.S. Treasury securities, the economic recovery will rest more on a fiscal stimulus coming out of Washington than monetary stimulus at this point, Glocke says.

nvestors are selling some of the Treasuries they previously loaded up on and are taking a chance on higher-risk debt instruments—not because the economy looks any better than it did a month ago, but because they now recognize they're being paid to take the extra risk, says Jackson at Riversource. Some high-yield bonds are paying around 18%, not far below the 20% they paid in the fourth quarter, he adds.

The attraction of other assets, such as short-maturity FDIC-backed corporate debt, is that they're priced more cheaply than comparable Treasury bills and offer yields 0.70% to 0.80% higher than Treasuries. There are also municipal bonds with higher yields, whether investors need the tax advantage that comes with them or not, says James Sarni, managing principal at Payden & Rygel in Los Angeles.

"Treasury yields dropped to such low levels [by the end of 2008] that they just didn't make sense anymore, given the supply expected in 2009 and the yield spreads available in other assets that are either implicitly or explicitly backed by the government," says Sarni.
A Roof on Rates

On Jan. 28, the yield on the 30-year Treasury bond topped 3.40%, after falling to a record low of just over 2.5% in December, while the 10-year note yielded 2.67%, vs. a low near 2.0%. This isn't a secular rise in interest rates, "just a bit of a reversal of the precipitous declines we've seen" as investors diversify out of Treasuries, says Sarni. A very weak global economy will keep a ceiling on rates, while any positive economic news could give another 20-basis-point boost to Treasury yields, he predicts.

Another reason for the substitution of higher-yielding corporate debt for Treasuries is less obvious: demand from nontraditional debt investors, including mutual fund managers who think the risk/reward on bonds of certain companies at this time is better than on the corresponding stock, according to Robert Kowit, senior portfolio manager in the Global Fixed Income Group at Federated Investors (FII).

This is particularly true for mutual funds that track major indexes, such as the S&P 500, and need to maintain some exposure to such key companies as General Electric (GE) or Johnson & Johnson (JNJ) that the indexes hold. "If you have to have exposure to a corporate name at this stage and you're trying to minimize your risk because you think there's going to be a lot of volatility, you might choose to own short- to medium-term bonds instead of equities," he says.
Stocks Can Hardly Compete

The yield spreads of speculative-grade corporate debt over Treasuries have gotten so wide that the absolute yields are well into the double-digit range. If you buy a 10-year bond with a 15% yield to maturity, you're getting a 15% return per year. The stock price of the same company would have to appreciate 15% annually to provide the same return, and very few stocks can do that for 10 years, says Kowit. These fund managers believe the market has already done a pretty good job of pricing the risk of additional corporate bankruptcy filings into the investment-grade and high-yield corporate bond markets, he adds.

And if a massive rally materializes in the stock market, there's nothing preventing portfolio managers from selling the bonds and buying the stock, Kowit says.

The Bloomberg terminals that many money managers and traders use feature a new function called Equity Volatility & Credit Risk, which lists all the companies in whatever global index you select and calculates the relative value of each company's bonds vs. its equity.

"If Bloomberg has taken the time and effort to put together a calculator like that, it's a pretty safe bet that people are viewing things in those terms," says Kowit.
Coupon Yields Are Safer

Companies are more concerned about maintaining their credit ratings and are likely to favor bond investors by cutting dividends to equity investors, he says. Investors also understand that in the event of bankruptcy, they're more likely to lose their equity investment before their debt investment. "It's a very simplistic way of playing the capital structure and investing in a corporate entity," he says.

As for how much the spreads between high-yield corporate bonds and Treasuries are likely to shrink, most of the narrowing will probably be due to declining yields on high-yield debt as investor demand grows, says Riversource's Jackson. He expects the premium on high-yield bonds to pull back to the more normal 5% to 10% range within two to three years. Given the likelihood of a fair number of corporate bankruptcies this year, investors drawn to mutual funds that are focused on high-yield bonds need to be careful when choosing a portfolio manager, he says.

As long as you're comfortable with the risks, corporate bonds could wind up to be a good place to put your money until the economy recovers.

Bogoslaw is a reporter for BusinessWeek's Investing channel.

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Stocks, Bonds & Forex Trading
Source: www.latimes.com

The Dow gains 200 points on speculation that the administration may set up a 'bad bank' to acquire soured assets and on the Fed's statement that it expects to keep interest rates low 'for some time.'

By Walter Hamilton
January 29, 2009

Reporting from New York -- White-hot worries about the country's banks have cooled noticeably as expectations have grown that the Obama administration will create a "bad bank" to clean all the toxic debt off the financial sector's balance sheets.

Speculation about such a plan, raising hope that financial institutions could eventually emerge from the welter of bad loans that have weighed them down, caused share prices of banking companies to surge, pushing the overall "The message of the markets has been that there may be light at the end of this tunnel," said Hugh Johnson, head of Johnson Illington Advisors in Albany, N.Y.

Shares of Citigroup Inc. gained 19%, while Bank of America Corp. surged 14%, JPMorgan Chase Inc. climbed 10% and money manager State Street Corp. ballooned 31%.

Despite getting capital infusions in the tens of billions of dollars from the federal government since last fall, banks still have been viewed with concern, in large part because of home loans and mortgage-backed securities -- assets that have generated fresh losses each quarter as the housing downturn has accelerated.

Freeing banks of those assets was the idea behind the government's original bailout plan, known as the Troubled Asset Relief Program. But it was abandoned in part because of questions over how much the government would pay. Underpaying could leave banks with insufficient capital, whereas overpaying would reward them at the expense of U.S. taxpayers.

Anticipation of a bad-bank plan also eased fears that the government would move to take more drastic action to nationalize the industry, which has rattled investors all month.

"There's just a little bit more of a level of confidence that the government is doing something without saying, 'We're going to call the shots from here on out,' " said Joe Cusick, senior market analyst at Chicago-based brokerage OptionsXpress.

The rally trumped a continuing string of disappointing bank earnings reports -- the latest coming Wednesday from Wells Fargo & Co.

Wells Fargo shares swelled 31% even though the San Francisco company reported a net loss of $2.6 billion. The bank also wrote down by $37.2 billion a portfolio of risky loans inherited from Wachovia Corp., which Wells bought during the quarter.

Investors, however, were comforted that Wells Fargo maintained its 34-cent quarterly dividend, which some had feared would be cut after similar moves at other companies.

Some experts, citing the troubled state of the economy, expressed skepticism that the bank-stock rally could continue.

"The fact that we have to bring out TARP 2 tells you we have real serious problems with the banks," said Bill King, chief market strategist at M. Ramsey King Securities in Burr Ridge, Ill.

The Dow rose 200.72 points to 8,375.45. The S&P 500 gained 28.38 points to 874.09.

The Nasdaq composite index advanced 53.44 points, or 3.6%, to 1,558.34 as technology stocks rose strongly. Apple climbed 4%, Google increased 5% and Yahoo jumped 8%.

In addition, Sun Microsystems surged 22%, BlackBerry maker Research in Motion gained 5% and Lam Research jumped 6.5%.

Overseas, key stock indexes advanced 2.4% in Britain, 4.5% in Germany, 4.1% in France and 0.6% in Japan.

In the U.S., stock investors took solace in a pledge by the Federal Reserve to keep interest rates low "for some time" and to consider a range of economic remedies.

But yields on Treasury bonds rose sharply after the Fed, at the conclusion of a two-day meeting of its policymaking committee, failed to promise a program to buy longer-term Treasuries, something the central bank has said it was considering.

An index of 24 bank stocks shot up 14%. The broad Standard & Poor's 500 index climbed 3.4%, while the Dow Jones industrial average gained more than 200 points, or 2.5%. Stocks in Europe also rallied on optimism about the financial sector.

"The message of the markets has been that there may be light at the end of this tunnel," said Hugh Johnson, head of Johnson Illington Advisors in Albany, N.Y.

Shares of Citigroup Inc. gained 19%, while Bank of America Corp. surged 14%, JPMorgan Chase Inc. climbed 10% and money manager State Street Corp. ballooned 31%.

Despite getting capital infusions in the tens of billions of dollars from the federal government since last fall, banks still have been viewed with concern, in large part because of home loans and mortgage-backed securities -- assets that have generated fresh losses each quarter as the housing downturn has accelerated.

Freeing banks of those assets was the idea behind the government's original bailout plan, known as the Troubled Asset Relief Program. But it was abandoned in part because of questions over how much the government would pay. Underpaying could leave banks with insufficient capital, whereas overpaying would reward them at the expense of U.S. taxpayers.

Anticipation of a bad-bank plan also eased fears that the government would move to take more drastic action to nationalize the industry, which has rattled investors all month.

"There's just a little bit more of a level of confidence that the government is doing something without saying, 'We're going to call the shots from here on out,' " said Joe Cusick, senior market analyst at Chicago-based brokerage OptionsXpress.

The rally trumped a continuing string of disappointing bank earnings reports -- the latest coming Wednesday from Wells Fargo & Co.

Wells Fargo shares swelled 31% even though the San Francisco company reported a net loss of $2.6 billion. The bank also wrote down by $37.2 billion a portfolio of risky loans inherited from Wachovia Corp., which Wells bought during the quarter.

Investors, however, were comforted that Wells Fargo maintained its 34-cent quarterly dividend, which some had feared would be cut after similar moves at other companies.

Some experts, citing the troubled state of the economy, expressed skepticism that the bank-stock rally could continue.

"The fact that we have to bring out TARP 2 tells you we have real serious problems with the banks," said Bill King, chief market strategist at M. Ramsey King Securities in Burr Ridge, Ill.

The Dow rose 200.72 points to 8,375.45. The S&P 500 gained 28.38 points to 874.09.

The Nasdaq composite index advanced 53.44 points, or 3.6%, to 1,558.34 as technology Stocks rose strongly. Apple climbed 4%, Google increased 5% and Yahoo jumped 8%.

In addition, Sun Microsystems surged 22%, BlackBerry maker Research in Motion gained 5% and Lam Research jumped 6.5%.

Overseas, key stock indexes advanced 2.4% in Britain, 4.5% in Germany, 4.1% in France and 0.6% in Japan.

In the U.S., stock investors took solace in a pledge by the Federal Reserve to keep interest rates low "for some time" and to consider a range of economic remedies.

But yields on Treasury bonds rose sharply after the Fed, at the conclusion of a two-day meeting of its policymaking committee, failed to promise a program to buy longer-term Treasuries, something the central bank has said it was considering.

The yield on the 30-year Treasury bond jumped to 3.42% from 3.24% on Tuesday. The yield on the 10-year T-note climbed to 2.65% from 2.52%.

walter.hamilton@latimes.com

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Stocks, Bonds & Forex Trading
Source: uk.reuters.com

Wed Jan 28, 2009 6:15am GMT

By Rika Otsuka

TOKYO, Jan 28 (Reuters) - The dollar edged up against the yen on Wednesday as an improved appetite for risk prompted investors to dump the safe-haven Japanese currency, while the dollar dipped versus the euro as players awaited the outcome of a Federal Reserve meeting.

The Fed concludes a two-day policy meeting later in the day and could unveil new steps aimed at easing the credit crunch.

With the benchmark interest rate already near zero, the market is looking for any new policy measures, such as purchasing long-dated Treasuries.

"If the Fed makes comments on purchasing Treasuries, it would soothe concerns that overseas investors may start picking up fewer U.S. bonds," said Hideki Hayashi, chief economist at Shinko Securities

Japanese and Chinese investors have been big buyers of U.S. government bonds and any shift in their investment stance on Treasuries could affect the dollar.

The dollar rose 0.3 percent from late U.S. trading on Tuesday to 89.16 yen .

The euro rose 0.6 percent to $1.3256 a day after it climbed on a surprise rise in Germany's Ifo economic research institute's corporate sentiment data.

Against the yen, the single European currency climbed 0.9 percent to 118.18 yen , having rebounded from a seven-year low of 112.08 yen hit on trading platform EBS last week.

There was little currency reaction to the outcome of bilateral telephone talks between Japanese Finance Minister Shoichi Nakagawa and U.S. Treasury Secretary Timothy Geithner.

Nakagawa and Geithner agreed the two nations needed to work closely to overcome troubles in the global economy, a senior Japanese finance ministry official said, adding they did not touch on currency rate issues in their talks. [ID:nT146587]

RISK APPETITE

The yen fell broadly, with higher-yielding currencies supported as the Nikkei share average erased early losses to turn positive in the afternoon .N225, and U.S. S&P 500 stock futures climbed around 2 percent SPc1.

Sterling was up 1.2 percent at 127.30 yen . The pound sank to a record low of 118.80 yen last week.

"Right now, market players are not thinking so much about selling the dollar based on the fact that the United States is not doing well," said a trader for a Japanese brokerage house.

"Instead, people are mulling over whether or not we are in an environment conducive to taking risks."

U.S. stock futures are likely getting a lift from hopes for further economic measures, such as the idea of the U.S. government creating a "bad bank", he said.

Senate Banking Committee Chairman Chris Dodd said on Tuesday he was aware the Obama administration was discussing the idea of setting up a "bad bank" to clean toxic assets from struggling financial companies. [ID:nWBT010501] [ID:nN27468019]

Another potentially positive factor for the dollar was the launch on Wednesday of a new Nomura Asset Management mutual fund investing in high-yielding U.S. corporate bonds. Industry sources said Nomura Asset's "Nomura U.S. High-Yield Bond Investment Trust" fund was likely to draw more than 100 billion yen ($1.12 billion) from Japanese retail investors. [ID:nT108623]

Earlier, the Australian dollar dipped after data showed on Wednesday that Australia's consumer prices fell by the most in a decade in the fourth quarter, justifying talk of another aggressive interest rate cut next week. [ID:nSYD263733]

But the Australian dollar later rebounded and rose 0.9 percent on the day to $0.6675 . (Additional reporting by Masayuki Kitano; Editing by Brent Kininmont)

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Stocks, Bonds & Forex Trading
Source: money.cnn.com

By Catherine Clifford, CNNMoney.com staff writer
Last Updated: January 27, 2009: 3:41 PM ET

NEW YORK (CNNMoney.com) -- Treasurys rallied Tuesday after a record 2-year note auction attracted more bidders than available notes.

Bonds were also boosted by hopes that the Federal Reserve will offer more details Wednesday about the possibility that it may step in and buy its own debt, which would provide a surge of demand.

The central bank began its two-day policy-making meeting Tuesday. With interest rates in a range of 0% to 0.25%, there's not much room to go lower. But investors will be keen to hear what the Fed says.

"They are positioning themselves to keep rates low for a longer period of time," said Ross Junge, senior vice president of portfolio management at Aviva Investors North America. But it's the possibility that the central bank may outline plans for buying debt that was helping prop up Treasury prices, he added.

Stimulus and auctions: As the national economy struggles in recession, the Obama administration is working to push through a $825 billion financial rescue package.

Spending programs and financial rescue packages will require the government to auction off historic amounts of debt in order to fund the programs. The Treasury was scheduled to auction $135 billion worth of debt this week, on top of the $120 billion worth of debt brought to market last week. The federal deficit already exceeds $1 trillion.

On Tuesday the government auctioned a record $40 billion worth of 2-year notes with a bid-to-cover ratio of 2.69, meaning there was over $100 billion worth of bidders for $40 billion of debt.

The government also auctioned $32 billion worth of 28-day bills Tuesday.

On Monday the government auctioned $29 billion worth of 13-week bills, $28 billion worth of 26-week bills, and $8 billion worth of 20-year TIPS (Treasury Inflation-Protected Securities).

And on Thursday the Treasury is scheduled to sell a record $30 billion worth of 5-year notes.

Debt prices: Treasurys reached record highs at the end of 2008 as spooked investors looked for a safe haven. But the influx of supply had pushed prices sharply lower of late. Tuesday's bounce was partly due to investors finding value in those lower levels.

The 10-year Treasury rallied 1-3/32 to 110-19/32, and its yield fell to 2.53% from 2.64% late Monday. Bond prices and yields move in opposite direction.

The 30-year longbond surged 3-4/32 to 123-29/32, and its yield dipped to 3.23% from 3.38%. The 2-year note edged higher 2/32 to 100-4/32, and its yield fell to 0.81% from 0.84%.

The yield on the 3-month note rose to 0.14% from 0.10% Monday. The 3-month bill has been used as a gauge of confidence in the marketplace because investors tend to shuffle funds in and out of the bill as they asses risk in other places.

Lending rates: The 3-month Libor rate held steady at 1.18%, according to Bloomberg.com. The overnight lending rate, meanwhile, ticked lower to 0.22% from 0.23% Monday.

Libor, the London Interbank Offered Rate, is a daily average of rates 16 different banks charge each other to lend money in London, and it is used to calculate adjustable-rate mortgages. More than $350 billion in assets are tied to Libor.

Two credit market gauges were mixed, showing a modest rise in confidence but less cash availability.

The so-called "TED" spread, a measure of banks' willingness to lend, narrowed to 1.04 percentage points from 1.08 percentage point Monday. The bigger the TED spread, the less willing investors are to take risks. The rate surged as the credit crisis gripped the economy, but has since fallen off as central banks around the world have lowered interest rates and pumped the economy with liquidity.

Another market indicator, the Libor-OIS spread, ticked up to 0.95 percentage points from 0.94 percentage point, late Monday. The Libor-OIS spread measures how much cash is available for lending between banks, and is used for determining lending rates. The bigger the spread, the less cash is available for lending.

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Stocks, Bonds & Forex Trading
Source: www.bloomberg.com

By Yasuhiko Seki and Theresa Barraclough

Jan. 28 (Bloomberg) -- Japanese five-year bonds fell for a third day, reversing earlier gains, as stocks rebounded and reduced demand for government debt.

Five-year bond yields also climbed to a one-week high on speculation the U.S. will create an institution to remove toxic assets from banks’ balance sheets, helping ease the global credit crisis. Demand for shorter-dated notes waned on speculation primary dealers tried to push up yields to secure a higher coupon at tomorrow’s 2 trillion yen ($22.4 billion) auction of two-year government notes.

Bonds reversed gains on “rising stocks, which reflected positive expectations about the U.S. bank plan,” said Yoshiaki Hattori, a derivatives manager in Tokyo at Aozora Bank Ltd.

The yield on the 0.7 percent bond due December 2013 rose one basis point to 0.72 percent as of 4:10 p.m. in Tokyo at Japan Bond Trading Co., the nation’s largest interdealer debt broker. The price fell 0.047 yen to 99.905 yen. Yields reached 0.660 percent on Jan. 23, the lowest level since September 2005. A basis point is 0.01 percentage point.

Japan’s bonds often move in the opposite direction to stocks. Benchmark 10-year yields had a correlation of 0.79 with the Nikkei 225 in the past two weeks, according to data compiled by Bloomberg. A value of 1 means the two moved in lockstep.

The yield on the benchmark 10-year bond fell half a basis point to 1.255 percent. Ten-year bond futures for March delivery rose 0.02 to 139.03 at the Tokyo Stock Exchange and the Nikkei 225 Stock Average advanced 0.6 percent.

Toxic Assets

The Federal Deposit Insurance Corp. may manage the so- called “bad bank” that the Obama administration is likely to set up as it tries to end the credit crisis, two people familiar with the matter said yesterday.

Japan’s benchmark bonds have handed investors a loss of 0.3 percent in the past week through yesterday, according to indexes compiled by Merrill Lynch & Co.

The decline in bonds was limited before a government report this week that economists say will show manufacturers slashed production at a record pace last month. Japan’s economy probably shrank 2.85 percent in the three months ended Dec. 31, according to a Bloomberg survey of economists.

Industrial output may have slumped 8.9 percent in December, the sharpest decline in 55 years, economists predict the Trade Ministry will say on Jan. 30. The drop would exceed the record 8.5 percent decline the previous month.

‘Bullish on Bonds’

“The 10-year yield above 1.25 percent is buying-territory for investors,” said Keiko Onogi, a debt strategist in Tokyo at Daiwa Securities SMBC Co., one of the 24 primary dealers that are required to bid at government debt sales. “In the long-run, people will remain bullish on bonds and bearish on the economy. Bonds are still the safest option.”

Two-year yields climbed half a basis point to 0.4 percent today, the highest since Dec. 26. Pre-auction trading suggests the Ministry of Finance will set a 0.4 percent coupon on the new debt, down from 0.5 percent at the previous auction in December.

The Dec. 18 sale drew bids for 2.4 times the amount on offer, compared with a so-called bid-to-cover ratio of 2.80 at the November sale. Last year’s average was 3.04 times.

To contact the reporter on this story: Yasuhiko Seki in Tokyo at Yseki5@bloomberg.net; Theresa Barraclough in Tokyo at tbarraclough@bloomberg.net.
Last Updated: January 28, 2009 02:30 EST

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Stocks, Bonds & Forex Trading
Source: www.reuters.com

* Euro, sterling extends gains vs yen

* Risk appetite improves as shares rise

* Japan govt says to provide public funds to firms

By Masayuki Kitano

TOKYO, Jan 27 (Reuters) - The yen fell against the euro and sterling on Tuesday as Tokyo shares rose and after the Japanese government said it would offer public funds to companies whose capital is seriously hurt by the financial crisis.

The yen had fallen on Monday after British bank Barclays said it would report a 2008 pretax profit and U.S. data showed a rise in home sales, giving a boost to investors' risk appetite.

The yen extended its losses against the euro and sterling on Tuesday after the Japanese government said it would provide public funds to firms facing difficulty in fund-raising due to market turmoil.

The yen often take its cue from perceived swings in investors' risk appetite, and has tended to fall against higher-yielding currencies when such risk tolerance increases.

But market players said the latest fall in the yen may have been exacerbated by position unwinding and played down the impact of the government's offer of public funds for firms.

"It's hard to say whether market players will start taking risks and sell the yen because of this," said Tohru Sasaki, chief foreign exchange strategist for JPMorgan Chase Bank in Tokyo.

"The yen had already been sold ahead of time and stocks had risen, so it's hard to tell just how much of this move stemmed from the news and how much of it was stop-loss position unwinding," Sasaki said.

The euro was up 0.9 percent at 118.47 yen on trading platform EBS, having climbed to 118.91 yen earlier.

The euro has rebounded against the yen after hitting a seven-year low of 112.08 yen last week.

Sterling climbed 1 percent to 125.68 , having rebounded from last week's record low of 118.80 yen.

Amid the yen's broad weakness on Tuesday, the dollar rose 0.5 percent to 89.53 yen .

Sterling also rose against the dollar, climbing 0.3 percent to $1.4037 and pulling away from a 23-year low of $1.3500 hit late last week after data showed that Britain's economy shrank at its fastest pace since 1980.

The yen could fall further against sterling and the euro in the near term, especially if global stock markets rise and point to further improvement in investors' risk appetite, traders said.

But the euro and sterling were unlikely to see a sustained rally at this point, despite the previous day's rally, they said.

"What took place was probably a temporary unwinding of positions that were tilted toward selling European currencies," said Yuji Matsuura, joint general manager for Aozora Bank's forex & derivatives trading group.

One key for the euro later on Tuesday will be Germany's Ifo monthly business climate index, traders said.

Against the dollar, the euro rose 0.3 percent to $1.3234 .

A Reuters poll of economists shows that German corporate sentiment likely deteriorated in January to the lowest levels since German reunification in 1990, due to weakening demand and production cuts.

The U.S. Senate's decision on Monday to back Timothy Geithner to be Treasury secretary was in line with market expectations and had a limited impact on currencies, said a trader for a major Japanese bank. (Editing by Michael Watson)

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Stocks, Bonds & Forex Trading
Source: www.bloomberg.com

By Yasuhiko Seki

Jan. 27 (Bloomberg) -- Japan’s 30-year bonds declined for a fifth day, driving the yield to a three-week high, as stock gains sapped demand for the relative security of government debt.

“A bull run in the stock market drove the bond market lower,” said Katsutoshi Inadome, a Tokyo-based strategist at Mitsubishi UFJ Securities, the brokerage unit of Japan’s largest banking group, Mitsubishi UFJ Financial Group Inc.

The yield on the 2.4 percent note due in September 2038 climbed 2.5 basis points to 1.95 percent, the highest since Dec. 19, as of 1:33 p.m. in Tokyo, according to Japan Bond Trading Co., the nation’s largest interdealer debt broker. The price fell 0.512 to 108.452 yen.

Ten-year bond futures for March delivery declined 0.61 to 139.08 on the Tokyo Stock Exchange, the most since Jan. 6.

The yield on the benchmark 10-year bond rose 3 basis points to 1.25 percent. A basis point is 0.01 percentage point.

The Nikkei 225 Stock Average added 4.6 percent.

To contact the reporter on this story: Yasuhiko Seki in Tokyo at Yseki5@bloomberg.net.
Last Updated: January 26, 2009 23:36 EST

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Stocks, Bonds & Forex Trading
Source: money.cnn.com

January 26, 2009: 03:52 PM ET

Treasury prices fell Monday, pushing yields to the highest in weeks, as the government began a slew of debt auctions this week, ranging from short-term bills to $8 billion in 20-year inflation-indexed securities.

Ten-year note yields (UST10Y) rose 4 basis points, or 0.04%, to 2.66%, the highest since Dec. 10. Bond prices move inversely to their yields.

The two-year note (UST2YR) yields were little changed at 0.83%, the highest since Jan. 2.

"We see bond markets under pressure as actual and planned issuances surge," especially as foreign official buyers have less ability to invest in U.S. debt, said analysts at UBS Securities.

The government sold the Treasury Inflation Protected Securities, known as TIPS, to yield 2.500%.

TIPS pay investors a coupon plus the actual rate of inflation as measured by the government's consumer price index.

The most recently issued 20-year TIPS, maturing in April 2028, carry a yield 1.26 percentage points below regular Treasurys maturing around the same time, according to Barclays Capital. That gap implies that investors expect inflation to average around 1.26% over the life of the debt, which Barclays considers too low, making the securities a good buy at these levels.

The TIPS received bids for $1.92 for every dollar available, close to the average in the last four sales of the securities.

Indirect bidders, a class of investors that includes foreign central banks, bought 54% of the sale, also near the average of the last four.

Earlier, the Treasury sold $29 billion in three-month bills at a rate of 0.152% and $28 billion in six-month bills at a rate of 0.350%.

The Treasury Department also will put record amounts of two- and five-year notes up for bid, reducing investors' willingness to buy higher amounts at yields already near the lowest ever.

Home sales, job losses

Treasurys stayed lower after the National Association of Realtors said sales of existing homes rose 6.5% in December to a seasonally adjusted annualized rate of 4.74 million. Economists surveyed by MarketWatch predicted the pace would fall to 4.36 million.

The Conference Board's index of leading indicators rose 0.3% last month, helped by an increase in the supply of money. It fell 0.4% in November.

Treasurys briefly gained support as companies in several industries announced plans to slash jobs.

The widespread job cuts may work against the bond market though, if it leads the government to increase its already mammoth stimulus proposal.

Construction-equipment maker Caterpillar (CAT) said it would cut 20,000 jobs, and Home Depot (HD) said it would cut its workforce by about 7,000 jobs.

Sprint Nextel (US-S) it will eliminate 8,000 jobs in the first three months of 2009.

Longer-term "bonds are off on the continuing realization of stimulus funded by supply" of more debt, said Andrew Brenner, co-head of structured products and emerging markets at MF Global.

Also of concern to bondholders, Timothy Geithner is expected to be confirmed as Treasury Secretary on Monday, opening up the possibility of more details on the Obama Administration's stimulus proposal.

Possibly a threat to bond investors "will be the formal approval of Geithner and his coming forth with more details on the stimulus package, for example homeowners relief, which could add to deficit concerns and, imagine, boost equity market confidence," said David Ader, U.S. government bond strategist at RBS Greenwich Capital.

Also on tap this week is the Federal Reserve's policy meeting. Analysts don't expect any changes to the central banks' target overnight interest rate between banks, already dropped to a range of zero to 0.25% last month.

Policy makers are unlikely to say much different after they meet on Tuesday and Wednesday, having already affirmed they are ready to pull out all the stops to help the economy and stabilize financial markets.

(END) Dow Jones Newswires
01-26-09 1552ET
Copyright (c) 2009 Dow Jones & Company, Inc.

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Stocks, Bonds & Forex Trading
Source: www.bloomberg.com

By Masaki Kondo

Jan. 27 (Bloomberg) -- Japanese stocks jumped the most in six weeks as U.S. economic data and eased concern a recession in the world’s largest economy will deepen.

Toyota Motor Corp. and Honda Motor Co. leapt more than 6 percent after U.S. home sales unexpectedly gained and an aide to President Barack Obama said bailout funds will be directed to consumers. Kawasaki Kisen Kaisha Ltd. surged 9.9 percent after commodity shipping fees rose for a fifth day. Mizuho Financial Group Inc., Japan’s No. 2 listed bank, soared 6.3 percent after Barclays Plc said it won’t need further capital increases, lifting optimism turmoil in global financial markets is subsiding.

“Thanks to once-in-a-century measures from governments worldwide, the global economy will likely be better next year than this year,” said Yoshinori Nagano, a senior strategist at Tokyo-based Daiwa Asset Management Co., which oversees about $96 billion. “Barclay’s announcement was seen as a positive surprise and eased pessimism in the financial sector.”

The Nikkei 225 Stock Average advanced 316.14, or 4.1 percent, to 7,998.28 as of 12:37 p.m. in Tokyo, its first gain in three days. The broader Topix index rose 30.85, or 4 percent, to 799.13, with all of its industry groups climbing. Both gauges jumped the most since Dec. 15.

The Nikkei dived by a record 42 percent last year as Japan, the U.S. and Europe sank into simultaneous recessions, and the gauge has lost another 10 percent this year. Japanese Prime Minister Taro Aso has pledged to lift his country from its first recession since 2001 by spending 10 trillion yen ($112 billion), while Obama has proposed an $825 billion economic package.

The tumble in shares has driven up the average dividend yield on the Nikkei’s members to 2.79 percent as of yesterday, more than twice the returns on 10-year Japanese government bonds.

Unexpected Gains

Toyota, the world’s biggest automaker, jumped 6.5 percent to 2,935 yen, breaking a four-day losing streak, while Honda, which gets about half its sales in North America, added 7.8 percent to 2,095 yen. Nissan Motor Co. climbed 6.5 percent to 294 yen.

U.S sales of existing homes climbed 6.5 percent last month, the National Association of Realtors said yesterday, while economists had expected a decline. The Conference Board’s index of leading indicators, which points to the direction of the economy over the next three to six months, also rose against economist projections for a drop.

President Obama’s administration will direct more of the second half of a $700 billion financial rescue plan to open up credit for consumers and businesses and stem home foreclosures, press secretary Robert Gibbs said.

Metals Rally

The U.S. economic data boosted commodities prices, lifting a gauge of six metals by 5.5 percent in London yesterday. In New York, copper futures for March delivery soared as much as 11 percent to the highest level since Dec. 2.

Mitsubishi, Japan’s biggest trading company by value, leapt 7.6 percent to 1,255 yen, and Mitsui & Co., the No. 2, added 7 percent to 948 yen. Sumitomo Metal Mining Co., the nation’s second-largest copper smelter, surged 9.5 percent to 908 yen.

Kawasaki Kisen, Japan’s No. 3 shipping line, advanced 9.9 percent to 378 yen, while Mitsui O.S.K. Lines Ltd., the second biggest, jumped 6.7 percent to 588 yen. Market leader Nippon Yusen K.K. added 6.7 percent to 494 yen. The Baltic Dry Index, a measure of shipping costs for commodities, rose 1.5 percent yesterday, bringing its five-day advance to 15 percent.

Mizuho leapt 6.3 percent to 219 yen, and Mitsubishi UFJ Financial Group Inc., Japan’s top lender, climbed 5.5 percent to 483 yen. Banks contributed the most to the Topix’s gain.

Barclays, based in London, yesterday said its capital is sufficient to get through “these difficult markets.” The bank said in an open letter that its North American units acquired from Lehman Brothers Holdings Inc. are generating “record” revenue.

Nikkei futures expiring in March leapt 5.3 percent to 7,990 in Osaka and rose 5.3 percent to 7,990 in Singapore.

To contact the reporter for this story: Masaki Kondo in Tokyo at mkondo3@bloomberg.net.
Last Updated: January 26, 2009 22:56 EST

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source: uk.reuters.com

Fri Jan 23, 2009 4:55pm GMT

* Dollar touches six-week high against the euro

* Pound falls to 23-year trough against dollar at $1.3502

* UK in recession as economy contracts 1.5 pct (Recasts, updates prices)

By Nick Olivari

NEW YORK, Jan 23 (Reuters) - The dollar climbed to a 23-year high against sterling and six-week high against the euro on Friday as weak UK and euro zone data and worries about the global economy kept investors risk averse.

The pound and euro fell to session lows after data showed the UK economy contracted by 1.5 percent in the fourth quarter, far more than analysts had expected and confirming a recession [ID:nONS004024].

Investors took little encouragement from surveys showing the euro-zone manufacturing and services sectors contracted at a slightly slower pace in January, since they remain deep in recessionary territory [ID:nLAG003193].

The yen jumped on the back of its perceived safe-haven status, hitting record highs against the pound and nearing seven-year highs against the euro.

"The U.S. dollar and Japanese yen are higher against the major and most emerging currencies as they continue to benefit from the weak financial and economic environment," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman in New York, in a research note to clients.

The euro fell 1.2 percent against the dollar to $1.2828, earlier touching a six-week low of $1.2766. The pound tumbled on the day to hit another 23-year low of $1.3502 before recovering to $1.3699, down 1.1 percent on the day.

Sterling has come under severe pressure recently as worries about a very weak economy have combined with concerns about the UK's troubled banking sector and the parlous state of government finances.

The dollar was also supported by comments from U.S. Treasury Secretary nominee Timothy Geithner, who said a strong dollar is in the interest of the United States.

His remarks came on Thursday when he won the Senate Finance Committee's backing to head the U.S. Treasury. [ID:nN22539780]

The yen was mostly higher with the euro down 0.6 percent at 114.69 yen, still near a seven-year low just above 112 yen. The pound also hit a record low against the yen of 118.87 , according to Reuters data.

The dollar was last up 0.6 percent against the yen at 89.30 yen in a volatile session in which the greenback swung between gains and losses.

"We have these moves overnight (in dollar/yen) and then Europe uses us to square up," said John McCarthy, director of foreign exchange trading at ING Capital Markets. "When the dust settles the Dow is down".

Lower U.S. stocks, exemplified by the Dow Jones industrial average, typically indicate risk aversion and make the yen slightly more preferable to the dollar. The Dow industrials .DJI were down 0.9 percent on Friday.

Traders said the yen remained well-bid as a relatively safe currency due to worries about the deepening global recession.

This weighed on riskier and higher-yielding currencies, with the Australian dollar touching its lowest against the U.S. dollar since early December at $0.6420.

Market players were on the lookout for any comments from Japanese authorities about possible currency intervention to stem the yen's rise.

Worries also are growing about the possibility that the Swiss National Bank could intervene to weaken the Swiss currency, which, like the yen, has gained as investors seek safer assets.

Dollar/Swiss franc was up 1.1 percent at 1.1670 francs. (Additional reporting by Jessica Mortimer in London; Editing by Tom Hals)

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source: seattletimes.nwsource.com

By Gail MarksJarvis

Chicago Tribune

What's a better conservative investment, a bond index fund or an actively managed one?

Generally, I believe strongly in bond index funds. The best ones charge little in fees, so they have an advantage over most mutual funds because your money isn't drained away.

Historically, low-cost index funds such as the Vanguard Total Bond Market Index or the Vanguard Total Stock Market Index have left most funds in the dust even though many others hire smart managers to try to do better than indexes.

Still, some investors have reservations about relying exclusively on a bond index fund now because we are in an unusual period.

By definition, index funds don't make day-to-day decisions. The index bond funds simply mimic the full bond market, or a slice of it. They don't try to steer clear of bonds that might weaken and default. They don't look for bonds that might be safer. They simply acquire an array of bonds and stick with them.

In the case of the Vanguard Total Bond Market Index, the riskiest bonds in the market — "high-yield" or "junk" bonds — are not included because they are not part of the Barclays Aggregate Bond Market Index, which the Vanguard fund is mimicking.

The bond fund was in the right place at the right time last year, advancing 5.1 percent, because the index was stuffed with U.S. Treasury bonds and what are essentially government-guaranteed bonds issued by entities such as Freddie Mac and Fannie Mae.

Just 26 percent of the portfolio was in corporate bonds, or the type of bonds investors feared.

As a result, the Vanguard fund topped 89 percent of other bond funds last year. Many active managers did poorly as they tried to buy corporate bonds they thought were cheap. For example, highly respected Loomis Sayles lost 22 percent. The average bond fund fell about 7.4 percent.

Yet Morningstar bond-fund analyst Miriam Sjoblom said that investors going into the future with their focus on 2008 could be sorely disappointed.

Treasurys soared in 2008 and government-guaranteed bonds were popular because investors were scared. But investors have poured so much money into the safe bonds, Sjoblom said, they are considered expensive.

With time, the government may have to pay higher interest rates on bonds. When that happens, the value of the old Treasurys will fall because investors will want to earn higher interest.

At that point — no one can predict when — bond funds holding a lot of Treasurys could lose value.

Sjoblom isn't predicting index funds will become losers. Rather, she suggests the high Treasury exposure could hold the funds back compared with funds with the leeway to pick and choose bonds that they think have better prospects.

She notes that many bond-fund managers are buying corporate bonds.

Among the funds shopping in that area is the FPA New Income Fund, whose managers, Robert Rodriguez and Thomas Atteberry, were named fixed-income managers of the year by Morningstar.

The FPA fund, which gained 4.3 percent last year, is attractive now because Rodriguez and Atteberry shop for bonds with potential but are conservative about their choices.

Copyright © 2009 The Seattle Times Company

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source: www.wallstreetnewsalert.com

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Wall Street Capital Funding.

updated 9:33 a.m. ET Jan. 23, 2009

WESTON, FL - Wall Street News Alert's "stocks to watch" this morning are: WordLogic Corporation (OTCBB: WLGC), Lockheed Martin (NYSE: LMT), Knight Capital Group, Inc. (NASDAQ: NITE) and ITT Educational Services, Inc. (NYSE: ESI).

To receive FREE Mobile Stock Alerts formatted especially for your cell phone, text the word "press" in the subject line to 68494.

WordLogic Corporation (OTCBB: WLGC) should have the attention of investors. Yesterday after the markets closed the company issued a press release announcing that it was recently contacted by analyst David Stewart, who subsequently published The Stewart Report about WordLogic Corporation.

Interested parties can view the report by going to this link: http://www.wallstreetnewsalert.com/HotStocks/WLGC012509/default.aspx.

The stock closed yesterday at Eighty cents a share.

In case you are not familiar with the company: WordLogic Corporation is a technology company that delivers predictive interface solutions for computing devices ranging from small hand-held devices such as PDAs to laptops and tablet PCs to conventional desktop computers. Incorporated in the United States, the company's research, testing and marketing facilities are located in Canada.

Lockheed Martin (NYSE: LMT) up 6.3% on 6.1 million shares traded.

Lockheed Martin is a global security company that employs about 146,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

Knight Capital Group, Inc. (NASDAQ: NITE) up 10.6% on 8.3 million shares traded.

Knight Capital Group, Inc. is a leading financial services firm that provides electronic and voice access to the capital markets across multiple asset classes for buy-side, sell-side and corporate clients.

ITT Educational Services, Inc. (NYSE: ESI) up 10.1% on 5.2 million shares traded.

ITT Technical Institutes offer career-focused, technology-oriented programs of study that have been designed to teach knowledge and skills used in industry.

Market Commentary:

"Prices at the pump fell 1.6 cents overnight to $1.773 nationally, according to AAA, the Oil Price Information Service and Wright Express," stated Sonja Rudd in Wall Street News Alert's daily commentary continued at: http://www.WallStreetNewsAlert.com.

The views expressed in "The Stewart Report" may not necessarily reflect the views of Wall Street Capital Funding or any of its affiliates. Furthermore, Wall Street Capital Funding takes no responsibility for the completeness or accuracy of the report.

The Stewart Reports states, "Information contained herein has been obtained from sources believed to be reliable, but there is no guarantee as to completeness or accuracy. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice. Acting as an investor, and also as a consultant to Wall Street News Alert, a division of Wall Street Capital Funding LLC (WSCF), J. David Stewart purchased 10,000 shares of WLGC in the open market, and will receive $3,000 for his independent research analysis of WordLogic Corp. Affiliates of The Stewart Report may also have additional long positions in these and other securities discussed herein, including warrants and/or options, and may buy or sell same at their own discretion. This Report contains or may contain forward-looking statements within the meaning of the "safe-harbor" provisions of the US Private Securities Litigation Reform Act of 1995. This Report is intended for informational purposes only and does not have regard for or take into consideration the reader's investment objectives, financial situation or suitability for securities mentioned herein. Consult with your financial advisor and perform your own due diligence. Copyright © The Stewart Report 2009."

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Wall Street News Alert is a division of Wall Street Capital Funding LLC (WSCF). WSCF also maintains a contractual, working relationship with Stock Market Alerts LLC and its Wall Street Enews brand. WSCF is not a registered broker/dealer and may not sell, offer to sell or offer to buy any security. WSCF profiles are not a solicitation or recommendation to buy, sell or hold securities. An offer to buy or sell can be made only with accompanying disclosure documents from the company offering or selling securities and only in the states and provinces for which they are approved. The material in this release is intended to be strictly informational. The companies that are discussed in this release have not approved the statements made in this release nor approved the timing of this release. All statements and expressions are the sole opinion of WSCF and are subject to change without notice. Information in this release is derived from a variety of sources including that company's publicly disseminated information, third parties and WSCF research. The accuracy or completeness of the information is not warranted and is only as reliable as the sources from which it was obtained. WSCF disclaims any and all liability as to the completeness or accuracy of the information contained and any omissions of material fact in this release. The release may contain technical inaccuracies or typographical errors. It is strongly recommended that any purchase or sale decision be discussed with a financial adviser, or a broker-dealer, or a member of any financial regulatory bodies. Investment in the securities of the companies discussed in this release is highly speculative and carries a high degree of risk. WSCF is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment if they make a purchase in WSCF profiled stocks.

This profile is not without bias, and is a paid release. WSCF has been compensated for dissemination of company information on behalf of one or more of the companies mentioned in this release. For current services performed for WordLogic Corporation (OTCBB: WLGC), WSCF has been compensated Thirty Thousand dollars by the company. WSCF holds no shares of the stock. WSCF may receive additional compensation for extension of its services. Any additional compensation will be disclosed at such time that WSCF is aware of a client's desire to extend the original services. WSCF may have received shares of a company profiled in this release prior to the dissemination of the information in this release. WSCF may immediately sell some or any shares in a profiled company held by WSCF and may have previously sold shares in a profiled company held by WSCF. WSCF's services for a company may cause the company's stock price to increase, in which event WSCF would make a profit when it sells its stock in a company. In addition, WSCF's selling of a company's stock may have a negative effect on the market price of the stock.

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