Ticker
stringclasses 10
values | Title
stringlengths 11
166
| Content
stringlengths 60
32.8k
| Date
stringlengths 8
10
|
|---|---|---|---|
GS | For Wall Street The World Cup Is A High Stakes Investment Game | By If Wall Street investment is like a high stakes game is the converse true That is the question behind a quadrennial Goldman Sachs NYSE GS exercise that analyzes the World Cup as if it were an investment opportunity
When the four week tournament kicks off in Brazil on June 12 hundreds of millions of avid fans will follow it obsessively
And just as players are always looking for an edge bettors including the Wall Street variety will also be searching for that little extra insight that they can use to their advantage
So which team is likely to pay dividends
Every four years Goldman Sachs experts analyze vast amounts of historical data and statistics to make predictions about the World Cup then use the data to poll thousands of clients and create a dream team
We could only wish for this level of dedication from our team around the world to their regular tasks the authors of this year s analysis wrote in the introduction
Using data going back to 1960 and analyzing factors such as team rankings number of goals scored and where the tournament was held they predict that Brazil will win the final match Key factors the team s record and its home field advantage
But they took their predictions beyond the field and into the market
There is no doubt that the World Cup captures huge attention and with it generates a massive amount of passion But does it have any impact on stock markets the analysts asked
The Goldman Sachs report The World Cup and Economics 2014 posits that a World Cup victory boosts a country s market for months after the event while the runner up experiences a slump
There is a clear pattern of outperformance by the winning team in the weeks after the World Cup final the authors wrote citing an average advantage of 3 5 percent over global equity markets
For example just a month after Brazil s win in 1994 when the World Cup was played in the U S the Brazilian market outperformed the MSCI World Index by 21 percent jumping to 38 percent three months later Meanwhile seven out of nine runners up saw their stock markets underperform following the World Cup falling on average of 5 6 percent over three months
Some analysts aren t so optimistic Dario Perkins of Lombard Street Research warned that it s not just the soccer fans who will be biting their nails next month
For many the soccer World Cup is a time of anxiousness and suffering followed by chaotic collapse England fans have come to expect this but the pain doesn t always stop there he wrote in a note
The first World Cup in 1930 coincided with the start of the Great Depression In 1990 the U S was in recession Four years later global bond markets were in turmoil and in 1998 Russia defaulted on its debt and the world s biggest hedge fund collapsed
The coincidences got me thinking What could go wrong this time Perkins wrote citing the downfall of Japan s Abenomics a currency war between the U S and EU and unknown fallout from the Ukraine Russia crisis as possibilities
Like the England soccer team s defense the global financial system might be more fragile than we like to believe he added
Betting on the correlation between stock prices and sports events probably isn t the best financial strategy But it isn t completely without merit
A World Cup Win can boost the population s mood which can have a small effect on markets In 2010 Germany s strong run had analysts predicting an uptick in consumer demand and boost to the economy
It is plausible that sporting success can provide a temporary boost to stock markets said Julian Jessop chief global economist at Capital Economics citing rising consumer confidence as one of the major factors But the bump shouldn t last long
Whether there is any lasting boost to actual activity and profits is debatable and the potential uplift to equity prices is small and could easily be offset by other factors he said
Indeed the 3 5 percent boost Goldman Sachs analysts saw isn t enough to be statistically significant according to sports economics expert Victor Matheson a professor at the College of the Holy Cross in Worcester Massachusetts
It looks like that s just an artifact of pure luck There is certainly no good economic or statistical evidence that winning the World Cup does a whole lot for your economy he said
If you look at any sort of event over time and average things out about half the time the stock market will be up and half the time it ll be down he added
Of course specific industries do well during these events Brazil has spent 13 billion on infrastructure which is a boon for construction companies for example Hotels in host cities are also likely to see a major benefit
But hosting the event is a double edged sword
I wouldn t be putting all my money into the Brazilian stock market right now Matheson said adding that it might be an especially risky move considering the debt they ll have to pay after hosting the 2014 World Cup and 2016 Olympics
The only thing you can predict is that it s going to be a real headache for Brazil to pay back all their debts he said
The country has spent 3 6 billion building stadiums alone more than the money spent in the past two World Cups put together as work on other infrastructure projects such as airports roads and other projects stagnate amid bureaucratic problems according to The Wall Street Journal
You can probably make more money betting on Goldman s sports predictions than in the Brazilian markets Matheson said | 5/28/2014 |
GS | Goldman Sachs Misses Out On Big Alibaba Payoff | By Goldman Sachs NYSE GS will not benefit when Alibaba sells its stocks to the public even though the Wall Street bank was one of its first investors the New York Times reported on Wednesday night
The company sold its stake in Alibaba in 2004 and earned 22 million which was nearly seven times its original investment but it is also one of the banks underwriting the company s initial public offer or IPO which is expected to be the biggest public offer by a company ever
Though Goldman Sachs definitely benefited from selling its stake in the company in 2004 it stood to make much more if it had waited another decade Instead of making nearly seven times over their investment Alibaba s value exploded and Goldman Sachs could have made 30 times their original deal
Goldman Sachs denied comment to the New York Times
Though Goldman Sachs doesn t stand to benefit by Alibaba going public there are two other companies that could rake in millions
In January 2000 Japanese technology group SoftBank along with its founder Masayoshi Son invested 20 million in Alibaba For a time the two dominant shareholders in the company were SoftBank and Goldman but since Goldman sold its shares in 2004 SoftBank now holds a 34 percent stake the Times reported citing a company filing
GGV Capital a Silicon Valley venture capital firm eventually invested 7 8 million into the company with principal founder Hany Nada being quoted by the Times as saying their company made 30 times its original investment which leaves them with an average return of 200 million
The list of lead underwriters according to the Times are Credit Suisse Deutsche Bank Goldman Sachs JPMorgan Chase Morgan Stanley and Citigroup And according to the Guardian Credit Suisse could make more than 100 million from the IPO which is expected to raise more than 20 billion
Follow me on Twitter mariamzzarella | 6/12/2014 |
GS | Ex Goldman Director Gupta Loses Bid To Aviod Prison | By Former Goldman Sachs Group NYSE GS director Rajat Gupta has failed to persuade the U S Supreme Court to delay the June 17 start of his two year prison term while he pursues an appeal of his insider trading conviction
Gupta also a former global managing director of the consulting firm McKinsey Co had asked the country s highest court for permission to stay free during his appeal after the 2nd U S Circuit Court of Appeals in Manhattan on May 30 denied him the same request
Justice Ruth Bader Ginsburg who handles emergency applications from the 2nd Circuit on Wednesday denied Gupta s request to stay out of prison
The full 2nd Circuit has yet to decide whether to rehear Gupta s appeal of his conviction which a three judge panel of that court upheld on March 25
Gary Naftalis a partner at Kramer Levin Naftalis Frankel who represented Gupta declined to comment Seth Waxman a WilmerHale partner and former U S solicitor general is also among Gupta s lawyers
Gupta 65 is the highest ranking corporate official to be convicted in the government s multi year probe of insider trading in the hedge fund industry
A Manhattan federal jury in June 2012 convicted him of passing tips about Goldman including news about its results and a 5 billion investment from Warren Buffett to his friend Raj Rajaratnam founder of the Galleon Group hedge fund firm
In appealing his conviction Gupta is challenging the use of wiretap evidence and the jury instructions
Gupta s lawyers have said the appeal is likely to result in a reversal of the conviction and a new trial The trial judge Jed Rakoff has agreed to recommend that Gupta be assigned to a medium security prison in Otisville New York about 70 miles 113 km northwest of New York City
Rajaratnam is serving an 11 year prison term after his 2011 insider trading conviction in a case also built with wiretap evidence He is appealing his conviction to the Supreme Court | 6/12/2014 |
GS | Ex Goldman Director Goes To Prison Still Owes 13 9M Fine | By Former Goldman Sachs Group NYSE GS director Rajat Gupta on Tuesday began serving his two year prison term for insider trading and lost his challenge to a 13 9 million civil penalty and permanent ban from acting as a public company officer
Gupta 65 reported to FMC Devens a medical facility and satellite camp in Ayer Massachusetts about 40 miles 64 km northwest of Boston a spokesman for the Federal Bureau of Prisons said
The former global managing director of the McKinsey Co consulting firm began his term as the 2nd U S Circuit Court of Appeals separately rejected his claim that the fine and officer ban imposed in a separate U S Securities and Exchange Commision civil case was excessive
A three judge panel of that court concluded that U S District Judge Jed Rakoff who oversaw the criminal and civil cases acted within his discretion in imposing that punishment
Seth Waxman a lawyer for Gupta did not immediately respond to a request for comment SEC spokesman John Nester declined immediate comment
A jury convicted Gupta in June 2012 of passing confidential information he learned from Goldman board meetings including a crucial investment from Warren Buffett to Raj Rajaratnam the onetime billionaire founder of the Galleon Group hedge fund
Gupta is appealing his conviction U S Supreme Court Justice Ruth Bader Ginsburg who hears emergency appeals from the 2nd Circuit last week denied his request to stay free on bail while he appeals
Rajaratnam is serving an 11 year prison sentence and is also being housed at Devens The Supreme Court on Monday refused to hear his appeal of his conviction
Rengan Rajaratnam a former Galleon portfolio manager went on trial on Tuesday in New York on charges that he engaged in insider trading with his older brother
In his criminal case Gupta was also ordered to make 6 million in restitution to Goldman and pay a 5 million fine
Rakoff imposed the officer ban in the civil case despite finding at the criminal sentencing that Gupta was unlikely to commit future crimes
Waxman had argued to the 2nd Circuit that Rakoff s positions were inconsistent but the appeals court said the standard in a criminal context was different from that in a civil case
The case is SEC v Gupta 2nd U S Circuit Court of Appeals No 13 3062 | 6/17/2014 |
GS | Wall Street s Biggest Banks Questioned In High Frequency Trading Investigation | By Some of the world s biggest banks are in the crosshairs of New York Attorney General Eric Schneiderman as part of his probe into high frequency trading the controversial practice in which traders get an edge over other investors by buying and selling shares in milliseconds
Barclays LONDON BARC and Credit Suisse SIX CSGN are among the banks that have been subpoenaed by Schneiderman sources tell International Business Times
The information sought by Schneiderman from the banks focuses on their dark pools which are off exchange platforms that let traders buy and sell stock anonymously under the radar of the rest of the market Such dark pools which are now responsible for about 12 percent to 15 percent of all trades in the U S have aroused the concerns of regulators because sophisticated players like high frequency traders are able to exploit the system
Barclays LX and Credit Suisse s Crossfinder are the two biggest dark pools by trading volume
The controversy surrounding high frequency trading and dark pools was highlighted in Michael Lewis best selling book Flash Boys which looked at dark pools operated by Credit Suisse Crossfinder Goldman Sachs NYSE GS Sigma X and Merrill Lynch MLXN Lewis described how high frequency traders are able to pay for a special connection to the dark pools find another trader s order go to a public exchange like the NYSE or Nasdaq buy it at a lower price and then quickly sell it to the buyer in the dark pool at a higher price
In recent months some institutional funds have stopped trading in some of the biggest dark pools because they feel that they re being burned by high frequency traders who catch on to their trading strategies several former bank executives tell IBTimes If I m being screwed why am I in this pool says one executive What is the advantage of being in the dark pool than in the public exchanges
High frequency traders defend the practice by arguing that it has proven beneficial to the market by making trading cheaper and easier
As part of his investigation Schneiderman is planning to subpoena exchanges and alternative trading platforms about their relationships with high frequency trading firms reports Reuters The New York Stock Exchange and BATS have already been cooperating with the attorney general sources told Reuters Two weeks ago at least six high frequency trading firms were sent subpoenas
High frequency trading is also being probed by the Securities and Exchange Commission the Commodity Futures Trading Commission and the FBI
Spokesmen for Barclays and Credit Suisse declined comment to IBTimes Spokespersons for Goldman Sachs Merrill Lynch and Morgan Stanley declined comment when asked whether they had received letters requesting information from Schneiderman as part of the probe A spokesman for Schneiderman also declined comment | 5/5/2014 |
GS | Citigroup Another 1 13 Billion Mortgage Hit | By Citigroup Inc NYSE C said on Monday that it would pay 1 13 billion in cash to settle claims regarding legacy mortgage securities and other instruments and will take a charge of another 100 million for other expenses in the first quarter of the financial year news reports said
The New York based bank signed a pact with 18 institutional investors and 68 bank sponsored trusts to resolve legacy securities issues with investors who had asked the bank to buy back billions in residential mortgage backed securities The trusts had issued a total of 59 4 billion in home mortgage securities between 2005 and 2008 The institutional investors have asked the trusts to accept the offer which will expire June 30
This settlement resolves a significant legacy issue from the financial crisis and we are pleased to put it behind us the company said in a statement
The latest settlement is among a series of similar deals seen in the U S banking industry which continues to struggle to find a way out of the housing mortgage bubble which led to the financial crisis in 2008 Citi s settlement offer is subject to approval by the trustees and the court but if it does come through it will release the bank from being forced to buy back the mortgages it sold to the trusts The agreement does not apply to mortgage loans sold through private label securitization trusts which are routed through its consumer mortgage business in CitiMortgage Inc
Last year Citi agreed to pay bondholders 730 million to resolve claims that the bank did not reveal its exposure to toxic mortgage assets worth billions of dollars prior to the financial crisis
Banks like Goldman Sachs NYSE GS and JPMorgan Chase NYSE JPM have also been accused of selling toxic securities in the years that led to the financial crisis and the banks have agreed to settlements worth billions of dollars to address the charges brought against them
In February Citi was told by a court to pay 110 million to homeowners who were forced to pay higher property premiums by the bank The bank had also agreed to refund 8 percent each of premiums paid for insurance against natural disasters such as floods and hurricanes even though the bank or its affiliates received no commissions on the transactions
Citi s shares were down 1 19 percent at close on Monday | 4/8/2014 |
GS | Commodities Could See Fall Out From Emerging Markets Unrest | By Emerging market unease from countries with high deficits in early 2014 could have knock on impacts on natural resource markets according to Goldman Sachs Group Inc NYSE GS research
Gold platinum copper iron and soybean markets could all be rattled by unease within vulnerable countries which the investment bank defined as those with problems managing trade deficits
From this lens vulnerable nations include Argentina Brazil India Indonesia Turkey and South Africa Goldman Sachs commodities analysts said in a note from Wednesday
Commodities most exposed include gold on the demand side and copper iron ore soybeans and platinum on the supply side they wrote This reinforces our existing bearish forecasts on these markets
The note reinforces the globalized nature of natural resource prices and trading India is a key source of gold demand and imports heavily South Africa produces most of the world s platinum and hosts a community of investors keenly interested in the metal Brazil is close to overtaking the U S as the world s top soybean producer
Weaker currencies and slower growth in these countries among other vulnerable groups could hurt demand and impact supplies Those five disparate commodities were the most highly levered to vulnerable emerging markets on a quantitative Goldman analysis
Commodities Exposure Among Emerging Markets In Early 2014 Goldman Sachs Research Note Feb 12 2014 Goldman Sachs Research
Oil is expected to remain insulated from emerging market turmoil for the time being though
We find that the oil market has only a small leverage to this vulnerable EM emerging markets group given its very low price elasticity This along with record low seasonal crude inventories at the end of 2013 is likely a key reason why oil has been so unresponsive to the recent EM turmoil wrote the analysts
Luckily many resilient emerging markets consume commodities in good measure which could help rebalance global oversupplies
Investors worldwide have been spooked lately by political and economic moves in Argentina and Turkey as global equity markets faltered weeks after coming off an encouraging 2013 | 2/13/2014 |
GS | Gold Wins Strongest Returns In 2014 So Far Goldman Sachs | By After a dismal 2013 gold has actually offered the best returns for the year to date among all asset classes in 2014 according to a Goldman Sachs Group Inc NYSE GS chart from Monday
That comes on the heels of a 28 percent decline in gold prices in 2013 its worst year since 1981 Stock markets have been sluggish in early 2014 however pulling out the brakes after a bullish 2013 gave rise to talk of potential market corrections in 2014
Still like many Wall Street analysts the New York based investment bank s metals analysts maintain a dim view of gold prices for the upcoming year Goldman Sachs Jeffrey Currie sees gold averaging 1050 over 2014 down significantly from its current 1318 per ounce
In the research note sent out Sunday Goldman Sachs also discussed global equities It held global macroeconomic conferences in Tokyo and Hong Kong last week and said the majority of the 2000 attendees were most bullish on equities relative to other assets and specifically European equities
In contrast with Asian investors and portfolio managers Goldman Sachs predicts that the Japanese stock market will post the strongest returns in 2014
It became apparent that Europe is viewed as the default option of choice Past experience has led us to expect a bias in favor of local Asian equity markets but the pattern did not occur this year wrote the Goldman Sachs analysts
There is much apprehension over a Chinese economic slowdown and Japan s third arrow of Abenomics reforms which has dampened local sentiment said the analysts
Most clients subscribed to our view that the current high valuation of the S P 500 will result in only modest returns for the index in 2014 By process of elimination clients believe European equities have the best near term return possibilities
Asia based equity investors also have a dimmer view of potential gains in the S P 500 for 2014 relative to their American counterparts according to the note
American home bias exists Many US based investors with whom we have met recently expect the S P 500 will climb to 2000 2200 by the end of this year 10 to 20 No investor we met at the macro conference expressed such a positive view of the US stock market read the note
Goldman Sachs forecasted that Japan would post the best total return in 2014 at 23 percent followed by Asian markets excluding Japan 16 percent and Europe 12 percent with U S equities in last place at a projected 6 percent return | 2/17/2014 |
GS | Goldman s Million Dollar Investment In Women Public Image | By Goldman Sachs Group Inc NYSE GS is set to launch a 600 million fund to help women entrepreneurs in developing countries It s an effort to aid thousands of business owners and of course help the bank s reputation which hasn t been easy
Twitter hoax GSElevator aside last month for example Goldman sponsored a Women Engineers Code WECode event But some attendees weren t impressed that their corporate gifts came in the form of Goldman branded nail files and cosmetic mirrors
But on Wednesday the bank announced a 50 million donation to its 10 000 Women initiative which launched in conjunction with the World Bank five years ago
The project is designed to help grow local economies and bring about greater shared prosperity by providing 10 000 underserved women entrepreneurs with a business and management education access to mentors and networks and links to capital
Initially 100 million was given from the bank to the Goldman Sachs Foundation to spend on business and management training for women in more than 40 countries
Participants had an average of five years of business experience across 15 sectors including education hospitality textiles and others Their businesses had annual sales between 12 000 and 2 million when the program started according to a report from the company
There was a view that we wanted to have our philanthropy align with our business and our business is economic growth said Joe Snodgrass chief operating office of the Office of Corporate Engagement at Goldman Sachs to Devex com discussing the initiative Interventions like this are needed to help better distribute the social benefits of economic growth
Indeed women currently make up roughly 40 percent of the total world labor force but half still aren t working
There is ample evidence that when women are able to develop their full labor market potential there can be significant macroeconomic gains reads a September report from the International Monetary Fund
The International Monetary Fund data also showed that an increase in female workers in certain countries could boost economies anywhere from 10 to 30 percent
But besides helping economies the Goldman initiative is also good for Goldman
The Financial Times reported on Wednesday that the bank spent 241 million on charitable activities in 2012 making it the nation s fourth largest And the resulting public image is more valuable than it seems
The culture of the firm is what protected this firm in the crisis said Lloyd Blankfein Goldman s CEO to the FT We were the firm that in many ways was the most under pressure for the longest period and we came out of it the most stable How does that happen | 3/6/2014 |
GS | UBS Reviews Precious Metals In Response To Regulators | By Swiss banking giant UBS AG VTX UBSN disclosed in its annual report on Friday that it is reviewing its precious metals business as global regulators step up their examination of currency and commodity benchmarks
Precious metals is a niche market though it s part of what UBS considers value added for its wealth management clients said Vontobel Holding AG analyst Andreas Venditti to Bloomberg
The bank s precious metals business is organized under its foreign exchange and investment banking arms according to UBS 2013 annual report They offer trading investing and hedging to clients across gold silver platinum and palladium
Our presence in physical and non physical precious metals markets has endured for almost a century reads the report Bank balance sheets showed that UBS held 8 5 billion Swiss francs 9 7 billion in trade portfolio assets made of precious metals and other physical commodities at the end of 2013 That s a fraction of its trading portfolio of 106 billion Swiss francs
A number of authorities also are reportedly investigating potential manipulation of precious metals prices reads the report UBS has taken and will take appropriate action with respect to certain personnel as a result of its ongoing review
Regulators including Germany s BaFin and the UK s Financial Conduct Authority have been investigating the London gold price fix a global benchmark for gold prices set twice daily in a call with banks Those banks include Barclays PLC LON BARC HSBC Holdings PLC LON HSBA and Societe Generale SA EPA GLE
Precious metals trading is a relatively minor business for many banks UBS Goldman Sachs Group Inc NYSE GS Credit Suisse Group AG VTX CSGN and JPMorgan Chase Co NYSE JPM each made less than 200 million in annual precious metals trading revenue according to data from Tricumen Ltd
Separately Hong Kong s Monetary Authority said last week that UBS traders attempted to rig Hong Kong s interbank lending rate the HIBOR and asked UBS to punish against relevant employees
The foreign exchange rate investigations and commodity and currency investigations are seen as interlinked by global regulators as revelations about the former sparked interest in the latter | 3/17/2014 |
GS | Why JPMorgan Is Selling Commodities Business | By Banking powerhouse JPMorgan Chase Co NYSE JPM has agreed to sell its commodities business to giant Swiss commodities house Mercuria Energy Group Ltd reports the Wall Street Journal
JPMorgan the biggest U S bank by assets initially valued its commodities unit at 3 3 billion back in October 2013 when it first warmed to a potential sale Terms of the deal with Mercuria aren t yet public though the deal could be done by summer according to sources cited by the Journal
Swiss traders and Mercuria executives Marco Dunand and Daniel Jaeggi have rapidly built Mercuria into a closely held commodities empire which saw over 100 billion in revenue last year reported Bloomberg earlier It has come to compete with the biggest independent commodity traders like Glencore Xstrata PLC LON GLEN as a result
This gives them a strong opportunity for growth and puts them close to the top players in the league Oliver Wyman partner Roland Rechtsteiner told Bloomberg earlier this month of the potential acquisition
JPMorgan s commodities unit has made 750 million in yearly operating profits before compensation is factored in according to Bloomberg
Many Wall Street banks have sold or exited their commodities business as of late Morgan Stanley NYSE MS sold its oil storage and trading unit to Russia s Rosneft NK OAO MCX ROSN in late 2013 Deutsche Bank AG FRA DBK a major bank player in commodities announced in December that it d quit almost all of its commodity businesses Goldman Sachs Group Inc NYSE GS Royal Bank of Scotland Group PLC LON RBS and UBS AG VTX UBSN have all wound down their commodities work or signaled they plan to
That trend comes as the Federal Reserve considers tighter regulation on commodities trading at banks
Physical commodities activities can pose unique risks to financial holding companies said the Fed s director of banking supervision and regulation Michael Gibson before a U S Senate subcommittee in January
Fed regulation could include caps on assets or revenue related to commodities higher capital requirements or simple bans on holdings of certain physical commodities Our review of the commodity related activities of our supervised firms is ongoing said Gibson then
Revenues for the ten largest investment bank commodity businesses fell to 4 5 billion in 2013 from 14 billion in 2008 according to London analytics company Coalition | 3/19/2014 |
GS | U S Stocks Plunge Ahead Of Bernanke s Testimony Before JEC | U S Stocks edged down by opening Tuesday s trading session as European leaders long struggle to cool Europe s debt woes failed to lure outraging markets ahead of the Fed s Chairman Ben Bernanke s testimony before the U S Congress Joint Economic Commission
Now American Airlines Corp gained 13 89 percent after several analysts said company is not likely to be filed for bankruptcy after being upgraded to market outperform from market perform by Rodman Renshaw
On the other hand McDermott International plunged 6 59 percent after being downgraded at goldman Sachs Group Inc while SodaStream International rose 2 54 percent after being upgraded at Deutsche Bank AG
Moreover Yahoo Inc added 3 51 percent following news about a possible takeover from Alibaba Group Holding
The Dollar index which measures the performance of the U S dollar against a basket of currencies including the Euro the Pound and the Yen steadied from today s opening level of 79 57 to currently trade at 79 60 recording its highest level at 79 82 and its lowest at 79 40
Gold prices dropped to reach 1643 38 since the opening level of 1666 92 Oil declined to reach 7600 after opening at 76 32 per barrel
As for stocks the most sectors that shed points the most leading the decline in the DJIA were the Industrials Oil Gas and Consumer Services shares respectively while in the S P 500 index most dropping sectors were the Oil Gas Financials and Industrials shares respectively
The Dow Jones Industrial Average traded lower by 184 36 points or 1 73 percent at 09 51 New York time reaching 10470 94 levels while the S P 500 index traded at 1081 13 as it dropped by 18 10 points or 1 65 percent meanwhile the NASDAQ Composite index declined 22 89 points or 0 98 to trade at 2312 94 levels | 10/4/2011 |
GS | European stocks turn higher but gains limited DAX up 0 42 | Investing com European stock markets turned moderately higher on Monday but gains were limited as investors were jittery after ratings agency Standard Poor s downgraded nine euro zone countries on Friday including France During European afternoon trade the EURO STOXX 50 rose 0 23 France s CAC 40 edged up 0 07 while Germany s DAX 30 climbed 0 42 Sentiment was hit after S P cut ratings on Italy Spain Cyprus and Portugal by two notches and downgraded Malta Slovakia and Slovenia by one level Germany kept its triple A rating The ratings agency also said it would decide shortly whether to do the same for the euro zone s bailout fund the European Financial Stability Facility Earlier Monday a top official of the International Monetary Fund warned against a downward spiral of collapsing confidence if no further action is taken to tackle the euro zone s financial woes Financial stocks were mixed as France s Societe Generale advanced 0 37 while BNP Paribas tumbled 1 26 and German lender Deutsche Bank declined 0 55 Meanwhile Carnival Plc plunged 16 01 the biggest slide since 2008 after its cruise liner capsized off the Italian coast on January 13 injuring about 60 people The ship carrying more than 4 000 passengers and crew hit submerged rocks in the Tyrrhenian Sea Elsewhere Fiat and Daimler led a rally in carmakers with shares jumping 3 02 and 2 83 after Goldman Sachs Group recommended the industry Daimler was also added to Goldman s conviction buy list In London FTSE 100 eased up 0 01 after data showed that house price inflation declined 0 8 in January after a 2 7 fall the previous month Financial stocks were mixed as shares in the Royal Bank of Scotland jumped 1 08 and HSBC Holdings edged 0 02 higher while Lloyds Banking and Barclays dropped 1 83 and 1 18 Meanwhile mining giants Bhp Billiton and Rio Tinto turned higher with shares adding 0 82 and 0 02 while copper producers Xstrata was down 0 07 Elsewhere Rockhopper Exploration Plc surged 9 92 its biggest rally in a month after the Sunday Times reported that Cairn Energy Plc has held talks with the U K company that discovered oil near the Falkland Islands off Argentina Also Monday European Central Bank President Mario Draghi was to testify before the European Parliament s Economic and Monetary Affairs Committee while markets in the U S were to remain closed for a national holiday | 1/16/2012 |
GS | U S futures steady ahead of employment data Dow Jones down 0 04 | Investing com U S stock futures pointed to a steady open on Friday ahead of the release of highly anticipated U S employment data while comments by Federal Reserve officials dampened market sentiment Ahead of the open the Dow Jones Industrial Average futures pointed to a 0 04 dip S P 500 futures signaled a 0 03 gain while the Nasdaq 100 futures indicated a 0 10 rise Markets were jittery after the minutes of the Fed s December policy meeting showed that officials began debating an end to bond buying as early as this year even while preparing to boost stimulus to a new record In addition the minutes revealed concerns over a balance sheet that may grow to more than USD4 trillion while potentially distorting financial markets and providing less support to growth Investors also remained cautious over the longer term outlook in the U S with negotiations on raising the debt ceiling still to come in February Tech stocks were expected to be active as New York State s USD150 billion public pension fund reportedly sued Qualcomm with hopes of forcing the chipmaker to reveal its political spending Shares in Qualcomm dropped 0 40 in pre market trade The financial sector was also likely to be in focus as Citigroup climbed 0 51 in early trading after as Goldman Sachs Inc added the lender to its conviction buy list Elsewhere Coinstar tumbled 3 29 in after hour trade after saying CEO Paul Davis will retire on March 31 The owner of the Redbox movie rental kiosks added that Chief Financial Officer J Scott Di Valerio will take over In Internet related stocks Google was slated to move as the Federal Trade Commission closed its investigation against the company for antitrust violations Thursday The FTC investigated Google for nearly two years for various business practices primarily concerning how the company displays search results Across the Atlantic European stock markets were lower The EURO STOXX 50 fell 0 29 France s CAC 40 dropped 0 45 Germany s DAX slipped 0 25 while Britain s FTSE 100 edged 0 11 lower During the Asian trading session Hong Kong s Hang Seng Index slipped 0 29 while Japan s Nikkei 225 Index surged 2 82 Later in the day the U S was to produce official data on nonfarm payrolls and the overall unemployment rate In addition the Institute of Supply Management was to release a report on service sector activity | 1/4/2013 |
GS | US STOCKS Futures gain 1 percent with global indexes | July new home sales data on tap seen flat with June
Omnicare offers to buy PharMerica both stocks rally
Investors await this week s Bernanke speech in Wyoming
Futures up Dow 149 pts S P 13 6 pts Nasdaq 27 5 pts
For up to the minute market news see STXNEWS US
Adds analyst comment updates prices
By Ryan Vlastelica
NEW YORK Aug 23 Reuters U S stock index futures rose
sharply on Tuesday tracking global equities that gained after
gauges of Chinese and euro zone economic activity came in less
gloomy than feared
Futures pointed to gains of more than 1 percent a repeat
of Monday s futures trade though that rally fizzled and Wall
Street closed only modestly higher a sign of continued market
volatility and investors reluctance to buy
While reads on China s factory sector and German business
activity pointed to slowing growth the slowdown wasn t as
harsh as some had feared For details see ID nL4E7JN0JB
ID nL9E7I401I
Investors also continue to look ahead to comments from
Federal Reserve Chairman Ben Bernanke at an annual central bank
conference in Jackson Hole Wyoming on Friday
We re going to be range bound until Friday which is
indicative of the manic state of investor psychology right
now said James Dailey portfolio manager of TEAM Asset
Strategy Fund in Harrisburg Pennsylvania There are swinging
degrees of hope and despair with no news flow until we get some
direction from a catalyst
Some have speculated Bernanke could unveil fresh measures
to revive the struggling economy though he is most likely to
outline gradual measures which would disappoint those looking
for something as dramatic as a fresh round of economic
stimulus
If there s no announcement we could undercut the lows we
saw earlier this month Dailey said though he added that the
intensity of recent selling has been extraordinary and won t
be sustainable
S P 500 futures rose 13 6 points and were above fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures added 149
points and Nasdaq 100 futures rose 27 5 points
July U S new home sales scheduled for release at 10 00
a m 1400 GMT will give new insight into the state of the
fragile housing sector Sales are forecast at about 310 000
homes roughly flat with June
Banks will continue to be in focus after UBS AG
said it plans to slash around 3 500 jobs in a
cost cutting measure U S listed shares of the lender rose 3 7
percent to 13 68 in premarket trading ID nL5E7JN076
Goldman Sachs Group Chief Executive Lloyd Blankfein
hired Reid Weingarten a high profile Washington defense
attorney a government source familiar with the matter said
late on Monday Investigations of Goldman and its role in the
2007 2009 financial crisis continue ID nN1E77L1G9
H J Heinz Co reported first quarter earnings that
fell from the prior year though revenue was higher
ID nN1E77M03T
Omnicare Inc offered to buy smaller rival
PharMerica Corp for 441 million in cash sending
PharMerica shares up 37 5 percent in premarket Omnicare rose
3 5 percent ID nL4E7JN2KZ
European stocks were up 1 4 percent led by a rebound in
cyclical shares such as industrials and miners but volumes
were thin as investors remained wary of another false start
after last week s rebound from a 20 percent nosedive quickly
disappeared
U S stocks ended slightly higher on Monday after four
weeks of losses as investors hesitated to take big risks
without a catalyst for buying
Editing by Padraic Cassidy | 8/23/2011 |
GS | U S futures point to higher open Dow futures up 0 69 | Investing com U S stock futures indicated a higher open on Tuesday after Chinese manufacturing data boosted risk appetite while speculation over fresh stimulus measures to support the U S economy also buoyed sentiment Ahead of the open the Dow Jones Industrial Average futures pointed to an increase of 0 69 the S P 500 futures climbed 0 79 while the Nasdaq 100 futures gained 0 76 Concerns over a slowdown in global growth eased earlier after a preliminary reading of China s August purchasing managers index edged up to 49 8 in August from a final reading of 49 3 the previous month A number below 50 indicates contraction in the sector but the report lifted market sentiment following speculation that the reading could have been much weaker Sentiment was underpinned after a separate report showed that Germany s manufacturing PMI remained unchanged at 52 0 in August beating forecasts for a decline to 50 8 Meanwhile speculation continued that Federal Reserve Chairman Ben Bernanke may indicate that further monetary easing could be necessary when he speaks at an economic symposium in Jackson Hole Wyoming later in the week In earnings news shares in food company H J Heinz dropped 0 85 in premarket trade after the company reported a larger than expected decline in first quarter profits due to weaker sales in North America as rising commodity prices hit demand Elsewhere shares of Goldman Sachs Group fell 0 5 in premarket trade following media reports that Chief Executive Lloyd Blankfein had hired high profile Washington defense attorney Reid Weingarten after the Senate referred a report on the bank s securitization activities to the U S Justice Department Across the Atlantic European stock markets were higher as shares in the financial and energy sectors led gains The EURO STOXX 50 gained 0 51 France s CAC 40 surged 0 83 Germany s DAX added 0 39 while Britain s FTSE 100 rose 0 40 During the Asian trading session Hong Kong s Hang Seng Index rallied 1 99 while Japan s Nikkei 225 Index advanced 1 22 Later Tuesday the U S was to release official data on new home sales | 8/23/2011 |
GS | US STOCKS Futures point to higher open on payroll report | Employment jumps jobless rate falls to two year low
Break above 1 330 on S P may trigger more buying
NYSE Euronext gains on rival bid from Nasdaq ICE
Futures up Dow 66 pts S P 8 5 pts Nasdaq 15 25 pts
Updates with payroll data
By Ryan Vlastelica
NEW YORK April 1 Reuters U S stock index futures
pointed to a higher open on Friday as employment notched a
second straight month of solid gains while the unemployment
rate fell to a two year low
Non farm payrolls rose by 216 000 jobs last month more
than expected and the largest increase since May the Labor
Department said January and February employment figures were
revised to show 7 000 more jobs than previously reported The
unemployment rate fell to 8 8 percent from 8 9 percent in
February
The data is very consistent with the view that the
recovery is gaining some momentum said Hugh Johnson chief
investment officer of Hugh Johnson Advisors LLC in Albany New
York It s hard to argue with the case that we have further to
go in this bull market economic recovery cycle
On the first day of the new quarter futures added to
earlier gains on the jobs data which shows the U S economy
continued to gain strength and support a stock market advance
despite turmoil in the Middle East and North Africa and the
crises in earthquake ravaged Japan
Investors will watch to see if the S P 500 index can
convincingly break through 1 330 after several unsuccessful
attempts in the past month Technical momentum may kick in if
it does lifting stocks further
NYSE Euronext rallied in premarket trading after Nasdaq OMX
Group Inc and IntercontinentalExchange Inc unveiled a bid to
buy the rival exchanges operator topping an earlier offer from
Deutsche Boerse AG
NYSE surged 10 percent to 38 73 while ICE shares were
down 1 7 percent to 121 50 and Nasdaq OMX was off 1 3 percent
at 25 50
S P 500 futures rose 8 5 points and were above fair value
a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures added 66 points
and Nasdaq 100 futures rose 15 25 points
Other data scheduled for Friday includes the Institute for
Supply Management report for March manufacturing due at 10 a m
1400 GMT The release will follow upbeat Chinese factory data
that eased concerns about monetary tightening
The S P 500 ended the first quarter on Thursday with a gain
of 5 4 percent
The World Trade Organization said late Thursday that Boeing
Co received at least 5 3 billion in illegal U S subsidies
Goldman Sachs Group Inc borrowed five times from the U S
Federal Reserve s discount window since the start of the
financial crisis despite a senior executive s testimony that
the bank used it only once
U S stocks ended the first quarter with the barest of
moves on Thursday
Additional reporting by Chuck Mikolajczak Editing by Kenneth
Barry | 4/1/2011 |
GS | US STOCKS Futures flat before jobless claims retail data | Costco s sales beat forecasts shares rise
Bed Bath Beyond soars after earnings outlook
Futures Dow up 10 pts S P up 0 7 pt Nasdaq off 1 pt
For up to the minute market news see STXNEWS US
Updates prices adds comment byline
By Rodrigo Campos
NEW YORK April 7 Reuters U S stock index futures were
little changed on Thursday before data on the labor market and
same store sales which could offer clues about the outlook for
U S consumer spending
The S P 500 closed Wednesday above a key technical level
and its ability to hold above 1 333 58 will be tested The
level is double the cycle low hit in March 2009 and is near a
recent 2 1 2 year high of about 1 344 which could bring
technical resistance
The Labor Department releases first time claims for jobless
benefits for the week ended April 2 at 8 30 a m 1230 GMT
Economists in a Reuters survey forecast a total of 385 000 new
filings compared with 388 000 in the previous week
Retailers shares will be in focus as major companies
release same store sales data while a shopping center group
will report on chain store sales for March versus a year ago
Among the first sales numbers on Thursday Costco Wholesale
Corp beat expectations with a 13 percent rise in March
same store sales compared with a forecast for 7 4 percent Its
shares gained 1 4 percent in premarket trade ID nLDE7360HJ
The jobless claims numbers are extremely interesting
said Kim Caughey Forrest senior equity research analyst at
Fort Pitt Capital Group in Pittsburgh
She said jobs and sales data can draw a picture about
future spending Everyone is concerned about how consumers are
reacting to the rising price of gasoline
S P 500 futures rose 0 7 point and were slightly
below fair value a formula that evaluates pricing by taking
into account interest rates dividends and time to expiration
of the contract Dow Jones industrial average futures
rose 10 points and Nasdaq 100 futures dipped 1 point
Average weekly volume has so far been the lowest of the
year raising questions about stocks recent rebound
Light volume is a little concerning I d like to see a
little more conviction in buyers Forrest said But if
anything it also shows a lack of people s willingness to
sell
Bed Bath and Beyond Inc shares jumped 10 percent
in premarket trade a day after it forecast earnings growth for
the current year that would beat Wall Street estimates
following a holiday season that saw U S shoppers spend more on
home goods For details see ID nN06160714
Goldman Sachs Group is seeking to buy the 55 percent
of its Australian and New Zealand joint venture that it does
not already own the company said on Thursday ID nL3E7F63F1
The European Central Bank announced it was raising its main
refinancing rate by 25 basis points to 1 25 percent as
expected ID nFLA7FE7M8
Portugal s financial sector can expect some relief after
the caretaker government decided to seek financial aid
following months of what many economists said was a refusal to
acknowledge economic reality ID nLDE7352EI
On Wednesday the Dow Jones industrial average rose
32 85 points or 0 27 percent to close at 12 426 75 The
Standard Poor s 500 Index gained 2 91 points or 0 22
percent to 1 335 54 The Nasdaq Composite Index
advanced 8 63 points or 0 31 percent to 2 799 82
Reporting by Rodrigo Campos Editing by Kenneth Barry | 4/7/2011 |
GS | US STOCKS Futures dip on China inflation worries data eyed | Producer price index jobless claims data on tap
China March inflation accelerates to 5 4 pct media
Futures dip S P 7 pts Dow 49 pts Nasdaq 16 50 pts
NEW YORK April 14 Reuters U S stock index futures
fell on Thursday as investors awaited data to assess the impact
of rising commodity prices amid growing concerns over Chinese
inflation
Risk appetite retreated on fears of monetary tightening
in China after a media report suggested the country s inflation
figures will be higher than expected in March
Some caution was also expected before corporate results
with the spotlight likely to be on the possible impact of
rising raw material costs on margins and the effect of supply
chain disruptions arising from the earthquake in Japan
Google is scheduled to release results after markets
close on Thursday with analysts expecting to see a 25 percent
year on year increase in net revenue to 6 32 billion and
earnings per share of 8 10 up from 6 76 a year earlier
Investors will be closely eyeing the producer price index
figures for March due at 8 30 a m 1230 GMT Year on year
producer prices are forecast to rise to 6 2 percent from 5 6
percent
Other data include weekly jobless claims numbers at 8 30
a m Economists in a Reuters survey expect jobless claims fell
to 380 000 from 382 000 last week
Commodities trader Glencore outlined its initial public
offering of up to 12 billion including plans for a May debut
that will boost its firepower for acquisitions and make paper
millionaires of its partners
U S regulators are probing whether some major banks
colluded to manipulate a global benchmark interest rate before
and during the financial crisis the Wall Street Journal
reported citing people familiar with the situation
In a frenzy to protect its interests at the start of the
credit crisis Goldman Sachs Group Inc sold mortgage linked
derivatives to clients at inflated prices and misrepresented
the nature of the deals according to documents released by a
Senate subcommittee
In other company news Italian car maker Fiat wants to
hike its stake in Chrysler to 46 percent by June as soon as
the U S group manages to repay 7 billion of government debt
an Italian daily said
Suppliers to Apple Inc have begun production of white
iPhones after a delay of almost 10 months pointing to a launch
date of within a month two people familiar with the situation
said on Thursday
S P 500 futures fell 7 points and were below fair value
a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures fell 49 points
and Nasdaq 100 futures lost 16 50 points
U S stocks finished mostly flat in a choppy session on
Wednesday as investors bet on strong technology earnings even
as JPMorgan Chase s numbers weighed on other market sectors
Reporting by Angela Moon Editing by Kenneth Barry | 4/14/2011 |
GS | US STOCKS Futures fall on inflation worries data in focus | Producer price index jobless claims data on tap
China March inflation accelerates to 5 4 pct media
Futures dip S P 6 2 pts Dow 48 pts Nasdaq 15 50 pts
For up to the minute market news see STXNEWS US
Adds byline quote
By Angela Moon
NEW YORK April 14 Reuters U S stock index futures
fell on Thursday before U S data that could shed light on the
impact of rising commodity prices and as concerns grew over
Chinese inflation
Risk appetite retreated on fears of a tighter money policy
in China after a media report suggested the country s inflation
figures will be higher than expected in March For details see
ID nL3E7FE0EO
In addition investors will be closely eyeing U S producer
price index figures for March due at 8 30 a m 1230 GMT
Producer prices are forecast to rise to 6 2 percent from 5 6
percent a year ago
Investors were also cautious before corporate results
because of the effect of supply chain disruptions arising from
the earthquakes in Japan
It s the cautious guidance from companies due to concerns
about inflation and Japan that are going to weigh on
investors said Peter Cardillo chief market economist at
Avalon Partners in New York
I see the market trading within the 3 4 percent range from
the upper end to the lower end in this earnings season I don t
see it as a catalyst to move the market much higher
Google is scheduled to release results after
markets close on Thursday with analysts expecting to see a 25
percent year on year increase in net revenue to 6 32 billion
and earnings per share of 8 10 up from 6 76 a year earlier
ID nN13279394
S P 500 futures fell 6 2 points and were below fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures fell 48
points and Nasdaq 100 futures lost 15 50 points
In a frenzy to protect itself at the start of the credit
crisis Goldman Sachs Group Inc sold mortgage linked
derivatives to clients at inflated prices and misrepresented
the nature of the deals documents released by a Senate
subcommittee said ID nN13302596 Goldman Sachs shares fell
1 2 percent to 158 20 in premarket trade
Other U S government data includes weekly jobless claims
at 8 30 a m Economists in a Reuters survey expect claims fell
to 380 000 from 382 000 last week
Commodities trader Glencore outlined its initial public
offering of up to 12 billion including plans for a May debut
that will boost its firepower for acquisitions and make paper
millionaires of its partners ID nL3E7FE03M
U S regulators are probing whether some major banks
colluded to manipulate a global benchmark interest rate before
and during the financial crisis the Wall Street Journal
reported citing people familiar with the situation
ID nL3E7FE0AK
Italian car maker Fiat wants to hike its stake in
Chrysler to 46 percent by June an Italian daily said
ID nLDE73D05D
Suppliers to Apple Inc have begun production of
white iPhones after a delay of almost 10 months two people
familiar with the situation said on Thursday ID nL3E7FE09A
Reporting by Angela Moon Editing by Kenneth Barry | 4/14/2011 |
GS | US STOCKS Market set to open lower after disappointing data | Core producer prices rise slightly faster than expected
Jobless claims unexpectedly rise last week
China March inflation accelerates to 5 4 pct media
Futures down S P 8 4 pts Dow 52 pts Nasdaq 12 50 pts
Updates with producer price jobless claims data updates
futures
By Angela Moon
NEW YORK April 14 Reuters Wall Street stocks were set
for a lower open on Thursday as worries about higher inflation
and signs of job market weakness kept investors cautious
The S P index futures added to losses after data showed an
unexpected rise in weekly jobless benefits claims to back above
the key 400 000 level
Separately the government said U S core producer prices
rose slightly faster than expected in March pointing to
increased inflation pressures
Risk appetite retreated on fears of a tighter money policy
in China after a media report suggested inflation figures there
will be higher than expected in March
The initial focus today will be more on earnings and the
worldwide growth and inflation issues but this number jobless
claims could add some negative bias and create additional
selling pressure said Brian Lazorishak portfolio manager at
Chase Investment Counsel in Charlottesville Virginia
Investors worried corporate earnings could be hurt by
supply chain disruptions arising from the earthquakes in
Japan
It s the cautious guidance from companies due to concerns
about inflation and Japan that are going to weigh on
investors said Peter Cardillo chief market economist at
Avalon Partners in New York
I see the market trading within the 3 4 percent range from
the upper end to the lower end in this earnings season I don t
see it as a catalyst to move the market much higher
Google is scheduled to release results after markets close
on Thursday with analysts expecting to see a 25 percent
year on year increase in net revenue to 6 32 billion and
earnings per share of 8 10 up from 6 76 a year earlier
S P 500 futures fell 8 4 points and were below fair value
a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures fell 52 points
and Nasdaq 100 futures lost 12 50 points
In a frenzy to protect itself at the start of the credit
crisis Goldman Sachs Group Inc sold mortgage linked
derivatives to clients at inflated prices and misrepresented
the nature of the deals documents released by a Senate
subcommittee said Goldman Sachs shares fell 1 6 percent to
157 60 in premarket trade
Commodities trader Glencore outlined its initial public
offering of up to 12 billion including plans for a May debut
that will boost its firepower for acquisitions and make paper
millionaires of its partners
Shares of Supervalu Inc the third biggest supermarket
chain by sales rose 13 percent to 10 24 in solid volume in
premarket trade after results
U S regulators are probing whether major banks colluded to
manipulate a global benchmark interest rate before and during
the financial crisis the Wall Street Journal reported citing
people familiar with the situation
Suppliers to Apple Inc have begun production of white
iPhones after a delay of almost 10 months two people familiar
with the situation said on Thursday
Reporting by Angela Moon additional reporting by Ryan
Vlastelica Editing by Kenneth Barry | 4/14/2011 |
GS | Nikkei crawls to 3 wk closing high banks JAL fall | Nikkei claws to highest close since Sept 25
JAL tumbles on growing concern about future
Bank shares down on profit taking policy uncertainty
By Elaine Lies
TOKYO Oct 16 Reuters Japan s Nikkei stock average clawed
up 0 2 percent on Friday to a three week closing high as gains in
retailers and drug firms narrowly offset losses in banks and
Japan Airlines which tumbled for a second day straight
Cash strapped JAL fell over 11 percent taking its losses
this week to some 26 percent with concerns about the size and
content of a rescue package also contributing to pressure on
banking shares
Sources told Reuters earlier this week that JAL has asked its
creditors for a total of 600 billion yen in financial aid as part
of a restructuring plan including debt forgiveness and
debt for equity swaps
There s increasing concern about the future of the company
and whether it s heading for a GM style bankruptcy or not said
Mitsushige Akino chief fund manager at Ichiyoshi Investment
Management
Tech shares slid in afternoon trade on profit taking pushing
the Nikkei briefly into negative territory though some in the
market said the benchmark was showing surprising resilience
I think expectations of good results for Japanese companies
have enabled the Nikkei to do unexpectedly well this week
considering all the things that it has faced including the yen s
strength that we saw earlier this week said Tomomi Yamashita a
fund manager at Shinkin Asset Management
But of course this means that once results are out we could
see selling on a lack of fresh incentives and also perhaps
disappointment if hopes are not fulfilled
Others attributed the market s strength to a sense that the
gradual improvement in global share markets would inevitably buoy
Tokyo which is not rising as fast as other markets
The pace of economic recovery seems to be better than
expected as shown by strong U S tech earnings and global stock
markets are trending upwards said Nagayuki Yamagishi a
strategist at Mitsubishi UFJ Securities
But by late afternoon the market had largely run out of
energy with investors reluctant to buy ahead of the weekend and
amid concerns about whether Wall Street would hang onto the gains
that took the Dow over 10 000 this week for the first time in a
year
The benchmark Nikkei edged up 18 91 points to 10 257 56 its
highest close since Sept 25 The broader Topix which is less
tech heavy fell 0 4 percent to 900 95
JAL WOES
JAL was the biggest drag on the Nikkei 225 losing 11 4
percent to 101 yen Japan s transport minister said the draft
plan for JAL s restructuring was progressing smoothly and again
pledged government support
In addition to worries about JAL banks also succumbed to
profit taking after results from Goldman Sachs Group and
Citigroup Inc failed to match the high standards set by JPMorgan
Chase Co and worries about a loan moratorium proposed by
Banking Minister Shizuka Kamei
Fitch Ratings commented that concerns may emerge over the
soundness of Japanese banking institutions if debt relief
programmes are put in place noting that it was concerned about
the ultimate impact on banks asset quality and profitability
Top lender Mitsubishi UFJ Financial Group lost 3 1 percent to
470 yen No 3 bank Sumitomo Mitsui Financial Group fell 1 9
percent to 3 190 yen and Mizuho Financial Group Japan s
second largest bank lost 1 2 percent to 172 yen All were off
earlier lows
Tech shares slid on profit taking after gains last week with
Tokyo Electron Ltd losing 3 3 percent to 5 610 yen and Advantest
a maker of chip testing devices down 1 4 percent to 2 465 yen
But a broad array of defensive shares such as retailers and
drug firms gained ground with Fast Retailing operator of the
casual clothing chain Uniqlo climbing 5 5 percent to 15 320 yen
Sony Corp gained as well rising 1 9 percent to 2 650 yen
with market players attributing its gain to a ratings hike by
Citigroup
Trade was thin with 2 billion shares changing hands on the
Tokyo exchange s first section compared to last week s daily
average of 2 1 billion
Declining shares outnumbered advancing ones by 933 to 607
Reporting by Elaine Lies Editing by Joseph Radford | 10/16/2009 |
GS | Obama aide big Wall Street bonuses offensive | Disconnect between Wall Street Main Street a focus
White House urges firms to get behind regulatory reform
Variety of steps on economy under consideration
Obama to discuss deficit at length in State of the Union
By Caren Bohan
WASHINGTON Oct 18 Reuters A top White House aide
lashed out on Sunday at Wall Street firms that are handing out
huge bonuses while the rest of the economy struggles and small
businesses cannot create jobs because of a lack of credit
Highlighting a disconnect between Wall Street and Main
Street that has caught the attention of the Obama
administration Goldman Sachs Group Inc s was on a pace to hand
out more than 20 billion in bonuses which could make this
year a record
Compensation is also soaring at several other big firms
which are raking in higher trading revenues amid a recovery in
the stock market that lifted the Dow Jones industrial average
above 10 000 last week
But the economy remains weak elsewhere and the U S
unemployment rate now at 9 8 percent is widely forecast to
climb above 10 percent
The bonuses are offensive David Axelrod a senior
adviser to President Barack Obama said on the ABC News
program This Week
The most offensive thing is we haven t seen the kind of
increase in lending that we should Axelrod said There
are a lot of small businesses credit worthy businesses around
this country who still can t get the capital they need to grow
which is important for our economy
Axelrod and other U S officials emphasized on television
talk shows that they were considering a variety of options to
boost the economy and rekindle job growth
But they also said they wanted to be mindful of the budget
deficit
WHITE HOUSE PRODS WALL STREET ON REFORM
White House aides pushed Obama s proposals for a broad
rewriting of financial regulations aimed at preventing a repeat
of Wall Street s worst crisis since the Great Depression
The Obama administration has become increasingly vocal
about what it sees as efforts by the financial industry to
water down or block the reforms
Axelrod and White House chief of staff Rahm Emanuel said
Wall Street which was saved from the brink of collapse by a
700 billion bailout from the U S government had a duty to
get behind the financial reforms
Emanuel told CNN s State of the Union that many firms
were now enjoying normalcy but they re now back trying to
fight consumer offices and the type of protections that will
prevent another type of situation where the economy is taken
over the cliff by the actions taken on Wall Street and the
financial market
Emanuel also said it was frustrating to the American
people that financial firms are doling out big bonuses while
incomes of other people are stagnating or falling
A bill approved by the House of Representatives would
impose new limits on executive pay but the Senate has not yet
acted on the issue
For firms that still owe the government money under the
bailout program Treasury s pay czar Kenneth Feinberg has
leeway to crack down on compensation packages
But Axelrod said the administration is seeking to use
moral suasion with some firms Those such as Goldman Sachs
that have already paid the government back are not subject to
the Treasury s oversight of compensation
Obama has faced criticism over the financial bailout
program and his 787 billion stimulus plan enacted earlier this
year The financial bailout program was begun by the Bush
administration in September 2008 and continued under Obama
Republicans have labeled the stimulus package wasteful and
say the high jobless rate is evidence it has not worked
Obama administration officials say the stimulus plan helped
save the economy from disaster
They say they are still considering whether to propose
additional steps to give the economy a jolt but they have been
reluctant to use the label stimulus to describe the possible
further measures
Asked on NBC s Face the Nation if a second stimulus was
under discussion White House adviser Valerie Jarrett said that
Obama was willing to look at all possibilities But she said
the original stimulus bill needed to be given time to work
Axelrod said the administration was determined to prevent
the economy from cascading backward into a recession But he
also said Obama was paying close attention to the U S budget
deficit which hit a record 1 4 trillion in the just ended
2009 fiscal year
He said that Obama would address the issue of the deficit
at some length in his State of the Union address to
Congress in January
Editing by Jackie Frank | 10/18/2009 |
GS | Goldman Sachs says dark pools help investors | Says dark pools have benefitted trading in general
Says increased competition reduced trading costs
Oct 27 Reuters Anonymous trading venues known as dark
pools are a technological evolution that have benefitted both
institutional and retail trading by bringing down transaction
costs Goldman Sachs Group Inc said in a memo to the U S
Securities and Exchange Commission
Last week the SEC voted unanimously for ways to make the
dark pools more transparent such as revealing the electronic
trading messages that are sent to a limited group of market
participants
In a report submitted to the SEC on Oct 22 Goldman said
the investing community especially retail has benefitted
from the evolving market structure and industry competition
The Goldman report posted on the SEC website summarized a
meeting held on Sept 24 between its executives and the
commission staff to discuss issues involving market structure
including short selling and dark pools
In the report Goldman stated five common myths regarding
dark pool trading and supplied arguments in an effort to dispel
those myths
Dark pools are trading platforms where buyers and sellers
can anonymously match large blocks of stock keeping details of
the deals and prices concealed to prevent distorting prices in
the broader market
Dark pools the largest of which are run by banks such as
Goldman Sachs and Credit Suisse account for an estimated 10 to
15 percent of overall U S equity volume
Goldman said in the report that increased competition from
dark pools pushes all execution venues to compete for retail
order flow in a superior manner
While market structure evolution has not been without its
challenges they have been accompanied by a secular decline in
both implicit and explicit trading costs benefiting primarily
retail investors Goldman said in the report
Reporting by Sakthi Prasad in Bangalore Editing by Jon
Loades Carter | 10/27/2009 |
GS | Nomura logs quarterly profit on retail demand | TOKYO Oct 28 Reuters Nomura Holdings Inc Japan s
largest brokerage reported a second straight quarterly profit on
Wednesday thanks to robust sales of investment trusts and gains
from trading commission
Nomura earned a 28 3 billion yen 310 million net profit
for July September compared with a 72 9 billion yen loss a year
earlier
Three analysts polled by Thomson Reuters I B E S had given an
average profit estimate of a 6 2 billion yen profit
Nomura which bought Lehman Brothers Asian European and
Middle East operations last year benefited from demand for
investment trusts from retail investors who sought higher returns
from foreign shares
Nomura s global peers including Goldman Sachs Group Inc and
JPMorgan Chase Co have also benefited from strong trading
revenue
Nomura shares are down 12 percent so far this year
underperforming Tokyo s brokerage sector subindex which lost 3 6
percent
1 92 09 Yen
Reporting by Junko Fujita Editing by Muralikumar Anantharaman | 10/28/2009 |
GS | UPDATE 3 Nomura tops fcasts with biggest profit in 9 quarters | July Sept net profit 27 7 bln yen vs 6 2 bln consensus
Boosted by 1 6 bln trading gain investment trusts
To pay 4 yen shr dividend first payout in 3 quarters
Shares close up 0 3 pct before result down 12 pct in
2009
Recasts to lead on net profit that strips out contributions
from companies in which it has minority stakes
By Junko Fujita
TOKYO Oct 28 Reuters Nomura Holdings Inc Japan s
largest brokerage reported its biggest profit in nine
quarters beating market expectations on strong sales of
mutual funds and 1 6 billion in trading gains
The solid results which prompted the broker to pay its
first dividend in three quarters show that Nomura is beginning
to profit from its purchase of the European and Asian
operations of failed investment bank Lehman Brothers last year
But Nomura s improving fortunes also mirrored strong
earnings at rivals such as Goldman Sachs Group Inc and JPMorgan
Chase Co which also bounced back with global financial
markets and could prove fleeting some analysts said
This time the acquisition of Lehman had a positive
impact said Ehsan Syed director at Fitch Ratings in Tokyo
But it is not clear how the acquisition will contribute to
Nomura s future earnings as brokerage earnings are vulnerable
to changes in the market environment and are difficult to
forecast
Nomura posted a 27 7 billion yen 303 million net profit
for July September compared with a 72 9 billion yen loss a
year earlier marking its largest quarterly profit since the
April June quarter of 2007
The result beat the average estimate of 6 2 billion yen
profit in a survey of three analysts by Thomson Reuters
I B E S
Nomura benefited from solid demand for mutual funds from
retail investors encouraged by an uptick in equity markets and
booked a 148 5 billion yen gain from its trading operations a
sharp swing from a 21 billion yen loss a year earlier
From this result we can see the unification of Lehman and
Nomura has started to work Nomura Chief Financial Officer
Masafumi Nakada told a news conference
Nomura Chief Executive Kenichi Watanabe had said in a
speech on Tuesday that the broker was now rebuilding its U S
operation after it shrank the business there following heavy
losses in the residential mortgage backed securities arena
The U S expansion was part of the reason why Nomura
increased its capital this month by selling about 4 7 billion
shares Watanabe said
Nomura is capitalising on the retreat of some Wall Street
firms and boosting its fixed income operations in the United
States It hired two senior bankers from Barclays and Citigroup
Inc as co heads to cement the business in the Americas
Prior to the announcement shares of Nomura rose 0 3
percent to 643 yen down 12 percent since the start of 2009
Tokyo s brokerage sector subindex fell 0 1 percent on
Wednesday down 4 percent so far this year
Nomura said it would pay a 4 yen per share dividend after
forgoing a payout for the previous two quarters
Editing by Nathan Layne and Jean Yoon | 10/28/2009 |
GS | FOREX Dollar hits 14 mth lows rebounds on Goldman | Dollar index erases losses up 0 1 pct at 75 643
Goldman Sachs results help dollar reclaim some losses
Dollar hit 14 month low vs forex basket
Dovish U S FOMC minutes weigh on dollar
By Catherine Bosley
LONDON Oct 15 Reuters The dollar recovered from
14 month lows on Thursday as stocks fell after more U S bank
earnings but the greenback remained pressured on expectations
U S interest rates would remain low
Goldman Sachs Group Inc posted better than expected
quarterly results with third quarter earnings per share of
5 25 versus forecasts of 4 24 nN15288862
But European stocks pared gains as the results were weaker
than some in the market had hoped
Goldman has taken U S stock futures lower and at the
moment provided a little of respite from the plethora of
dollar selling interest said Jeremy Stretch currency
strategist at Rabobank
It s still the case that everything s about stocks and
stocks expectations and risk appetite Goldman s failing to beat
what were very very lofty expectations has taken us back
somewhat in euro dollar in the short term
U S stock index futures fell further after Citigroup
Inc reported a quarterly shareholder loss but the results
did not greatly affect the foreign exchange market
The dollar index which tracks the performance of the
greenback versus a basket of six other major currencies was up
0 12 percent at 75 643 after hitting a session high of 75 765
It had fallen to a 14 month low of 75 211 earlier
EURO HITS 14 MONTH HIGH THEN SLIDES
The euro hit a day s low after European Central Bank
President Jean Claude Trichet repeated the euro was not created
to be a global reserve currency
The euro fell as low as 1 4844 according to Reuters
data down 0 4 percent on the day and retreating from a 14 month
high hit in earlier trade
Sterling pared some gains but was still broadly higher on
the day prompted by short covering after investors had boosted
short sterling positions that helped push the pound to a
five month low earlier this week traders said
Bank of England policymaker Paul Fisher told the Financial
Times he felt more confident the central bank s asset purchase
programme was working ID nLE413216
But analysts said they expected further dollar weakness
after the latest minutes from the U S Federal Reserve Open
Market Committee showed that some policymakers called for
increasing asset purchases ID nWEQ003473
There s obviously very low interest rates in the States and
there s no sign they re going any time soon listening to the
Fed and their minutes last night said Chris Turner head of
foreign exchange strategy at ING in London
Today s very modes correction from new lows is nothing
serious for the dollar bear trend
Simon Derrick of Bank of New York Mellon said reports of
Asian central banks intervening to keep their currencies from
appreciating had not lifted the dollar because the market
anticipated some of the dollars would be converted into euros
Hong Kong s central bank sold HK 1 5 billion 200 million
to keep the Hong Kong dollar within its trading band
ID nHKG105478
The greenback earlier fell to 14 month lows against the
higher yielding Australian dollar and a 15 month trough versus
the New Zealand and Canada dollars
Reserve Bank of Australia chief Glenn Stevens said local
interest rates would need to move towards a more normal setting
as economic recovery took hold reinforcing the view rates would
be hiked for a second consecutive month in November
ID nSYD397384
Additional reporting by Tamawa Desai Editing by Mike
Peacock | 10/15/2009 |
GS | US STOCKS SNAPSHOT Wall St falls at open as financials weigh | NEW YORK Oct 15 Reuters U S stocks opened lower on
Thursday after quarterly results from Goldman Sachs Group and
Citigroup Inc underwhelmed investors after a strong showing
from JPMorgan a day before
The Dow Jones industrial average dropped 32 19 points or
0 32 percent to 9 983 67 The Standard Poor s 500 Index fell
5 07 points or 0 46 percent to 1 086 95 The Nasdaq Composite
Index lost 11 07 points or 0 51 percent to 2 161 16 | 10/15/2009 |
GS | FOREX Dollar off 14 mth lows rebounds on U S data | Dollar index erases losses after hitting 14 month low
Dovish U S Fed FOMC still minutes weigh on dollar
U S data helps bolster dollar
Comments from ECB s Trichet do not help euro
Recasts updates prices adds byline
By Nick Olivari
NEW YORK Oct 15 Reuters The dollar rose against the
yen and euro on Thursday after U S data bolstered expectations
the economy is recovering raising optimism that U S interest
rates will rise sooner rather than later
Higher U S interest rates would increase the
attractiveness of U S assets and heighten demand for the
dollars to buy them
European Central Bank President Jean Claude Trichet
repeating comments that the euro was not created to be a global
reserve currency added to the dollar s allure in the short
term
U S data on claims for jobless benefits was not that far
from forecasts but it was at least moving in the right
direction in terms of lower unemployment Nick Bennenbroek
head of currency strategy at Wells Fargo in New York
The dollar was last up 1 1 percent at 90 36 yen
while the dollar index which measures the dollar against a
basket of six currencies rose 0 1 percent to 75 625
The dollar index reached a session high of 75 765 after
earlier falling to a 14 month low of 75 211
The U S Labor Department reported that initial claims for
jobless benefits fell to 514 000 in the latest week Markets
were expecting claims of 525 000 For more see
ID nOAT002316
The government also released inflation data which showed
that stripping out volatile energy and food prices the Labor
Department s closely watched core measure of consumer inflation
for September which excludes food and energy inched up 0 2
percent from August a touch above market expectations for a
0 1 percent gain ID nN14260181
But dollar trading was not without volatility
Goldman Sachs Group Inc posted better than expected
quarterly results but despite beating published forecasts they
were not enough to beat the loftiest expectations and helped
take away some investor appetite for risk ID nN15288862
TRICHET SPEAKS
The euro hit the day s low after European Central Bank
President Jean Claude Trichet repeated the euro was not created
to be a global reserve currency
The euro fell to 1 4844 according to Reuters data
and was last down 0 3 percent on the day at 1 4873 retreating
from a 14 month high hit in earlier trade
Sterling pared some gains but was still broadly higher on
the day prompted by short covering after investors boosted
short sterling positions that helped push the pound to a
five month low earlier this week traders said Sterling was
last at 1 6233 up 1 6 percent
Bank of England policymaker Paul Fisher told the Financial
Times he felt more confident the central bank s asset purchase
programme was working ID nLE413216
But analysts said they expected further dollar weakness
after the latest minutes from the U S central bank s Federal
Open Market Committee which showed that some policymakers
called for increasing asset purchases ID nWEQ003473
Simon Derrick of Bank of New York Mellon said reports of
Asian central banks intervening to keep their currencies from
appreciating had not lifted the dollar because the market
anticipated some of the dollars would be converted into euros
Hong Kong s central bank sold HK 1 5 billion 200 million
to keep the Hong Kong dollar within its trading band
ID nHKG105478
The greenback earlier fell to 14 month lows against the
higher yielding Australian dollar and a 15 month trough versus
the New Zealand and Canada dollars
Reserve Bank of Australia chief Glenn Stevens said local
interest rates would need to move towards a more normal setting
as economic recovery took hold reinforcing the view rates
would be hiked for a second consecutive month in November
ID nSYD397384
Additional reporting by Wanfeng Zhou in New York and
Catherine Bosley in London Editing by Chizu Nomiyama | 10/15/2009 |
GS | FOREX Dollar gains vs yen as U S data point to recovery | U S economic data mostly helps bolster dollar
Dovish U S FOMC minutes still weigh on dollar
Trichet does not help euro but single currency recovers
Dollar index earlier touches 14 month low
Recasts and updates prices adds details from the
Philadelphia Federal Reserve Bank s latest economic report
By Nick Olivari
NEW YORK Oct 15 Reuters The dollar rose against the
yen on Thursday after U S data bolstered expectations the
economy is recovering raising optimism that U S interest
rates will rise sooner rather than later
Higher U S interest rates would make U S assets more
attractive to investors and increase demand for the dollars to
buy them
The euro swung between gains and losses during the session
buffeted by technical factors and comments from the European
Central Bank
U S data on claims for jobless benefits was not that far
from forecasts but it was at least moving in the right
direction in terms of lower unemployment said Nick
Bennenbroek head of currency strategy at Wells Fargo in New
York
The dollar was last up 1 1 percent at 90 40 yen
The euro was last up 0 1 percent at 1 4941 close to the
14 month high touched earlier in the session at 1 4967
according to Reuters data
It s a thin market that s technically driven and Europe
is closing up said Win Thin senior currency strategist at
Brown Brothers Harriman in reference to the euro s recovery
in the New York session
The euro came back after failing to break below the
1 4840 level which was around Wednesday s low and the
five day moving average Thin said
The euro had hit the day s low after European Central Bank
President Jean Claude Trichet repeated comments that the euro
was not created to be a global reserve currency
The U S Labor Department reported that initial claims
for jobless benefits fell to 514 000 in the latest week
Markets were expecting claims of 525 000
The government also released inflation data which showed
the Labor Department s closely watched core Consumer Price
Index for September which excludes food and energy inched up
slightly more than expected
Offsetting some of that positive sentiment however was a
report from the Federal Reserve Bank of Philadelphia showing
factory activity in the U S Mid Atlantic region grew less
than expected in October
GOLDMAN S EARNINGS
Dollar trading was not without volatility irrespective of
the reports with the dollar index earlier touching a 14 month
low
Goldman Sachs Group Inc posted better than expected
quarterly earnings but despite beating published forecasts
they were not enough to beat the loftiest expectations and
helped take away some investor appetite for risk
Sterling pared some gains but was still broadly higher on
the day prompted by short covering after investors boosted
short sterling positions that helped push the pound to a
five month low earlier this week traders said Sterling was
last at 1 6257 up 1 8 percent trading at its highest since
late September
Bank of England policy maker Paul Fisher told the
Financial Times he felt more confident the central bank s
asset purchase programme was working
But analysts said they expected further dollar weakness a
day after the release of the latest minutes from the U S
central bank s Federal Open Market Committee which showed
that some policy makers called for increasing asset
purchases
Simon Derrick of Bank of New York Mellon said reports of
Asian central banks intervening to keep their currencies from
appreciating had not lifted the dollar because the market
anticipated some of the dollars would be converted into
euros
Hong Kong s central bank sold HK 1 5 billion 200
million to keep the Hong Kong dollar within its trading
band
Earlier the greenback fell to 14 month lows against the
higher yielding Australian dollar and a 15 month trough versus
the New Zealand and Canada dollars
Reserve Bank of Australia chief Glenn Stevens said local
interest rates would need to move toward a more normal setting
as economic recovery took hold reinforcing the view that
rates will be hiked for a second consecutive month in
November
Additional reporting by Wanfeng Zhou in New York and
Catherine Bosley in London
Reporting by Nick Olivari Editing by Jan Paschal | 10/15/2009 |
GS | US STOCKS Dow S P end at 2009 highs with oil Google up late | Energy stocks rise after EIA inventory data
Oil prices hit year s high above 77 a barrel
Goldman Sachs Citigroup slip after results
Google jumps after bell following results
Dow up 0 5 pct S P up 0 4 pct Nasdaq up 0 1 pct
For up to the minute market news click STXNEWS US
Updates to close
By Leah Schnurr
NEW YORK Oct 15 Reuters The Dow industrials and the
S P 500 climbed on Thursday to 2009 closing highs buoyed by
energy stocks as oil prices jumped but financials retreated as
investors panned results from Goldman Sachs and Citigroup
The Nasdaq eked out a slim gain but shares of big cap tech
companies including Apple and Google
dragged
Google lost 1 percent to close at 529 91 on Nasdaq in the
regular session but after the bell the stock jumped 1 5
percent to 538 00 following results that beat Wall Street s
expectations
U S crude oil futures hit a one year high rising
2 40 or more than 3 percent to settle at 77 58 a barrel
after data showed gasoline and distillate inventories fell
sharply in the latest week Energy shares rose with Chevron
Corp up 1 6 percent at 76 69 on the New York Stock
Exchange
While Goldman Sachs Group and Citigroup Inc s
results exceeded forecasts they failed to meet the lofty
standard set on Wednesday by JPMorgan Chase Co the
first major bank to report earnings
It appears the market is reacting to the energy inventory
data the strength in crude and the idea that the economic
recovery is firming said Nick Kalivas vice president of
financial research and senior equity index analyst at MF Global
in Chicago
The Dow Jones industrial average gained 47 08
points or 0 47 percent to close at 10 062 94 a fresh 52 week
high The Standard Poor s 500 Index rose 4 54 points
or 0 42 percent to finish at 1 096 56 its highest close for
the year The Nasdaq Composite Index added 1 06 points
or 0 05 percent to end at 2 173 29
Goldman s earnings nearly quadrupled largely because of
strong trading results Citigroup s third quarter loss was
narrower than expected but the company booked 8 billion in
credit losses For details see ID nN15288862 and
ID nN15291217
Goldman s stock fell 1 9 percent to 188 63 and Citigroup
shares shed 5 percent to 4 75 while an S P financial index
lost 0 7 percent
There s a lot of profit taking and rethinking of the
financial sector Kalivas said I think the expectations for
Goldman Sachs were extremely high and basically they couldn t
get themselves much over the whisper numbers
On the economic front data showed the Consumer Price Index
prices edged up in September and the number of workers filing
new claims for jobless benefits dropped to a nine month low
last week ID nN15292883
A sharp increase in New York state factory activity was
tempered by a report showing factory activity in the
Mid Atlantic region grew less than expected
Markets will continue to feel the push and pull of earnings
season as investors react to individual corporate results
Most money managers I know while being respectful of the
upward momentum recognize there are significant long term
problems and issues that need to be faced said Jim Awad
managing director at Zephyr Management in New York
I think they will be quick to pull the trigger if and
when the momentum dissipates
Editing by Jan Paschal | 10/15/2009 |
GS | FOREX Dollar drops to 14 month low vs currency basket | Dollar index at 14 month low
Canada dlr Aussie dlr hit 14 month highs
Gold hits record highs oil up 1 pct
Sterling down vs euro on weaker UK inflation data
Recasts updates prices
By Nick Olivari
NEW YORK Oct 13 Reuters The U S dollar touched a
14 month low against a basket of currencies on Tuesday as
investors refocused on the outlook for U S interest rates
Expectations of a strengthening global recovery outside the
United States added to rising demand for growth linked and
commodity linked currencies like the Australian and Canadian
dollars at the expense of greenback demand
Higher rates would make U S assets more attractive and
bolster demand for dollars
The dollar is under pressure because interest rates here
are the lowest in the Western world and will remain low for the
foreseeable future said John McCarthy director of foreign
exchange at ING Capital Markets in New York
The U S Federal Reserve will release minutes of their
September policy meeting on Wednesday and investors will
closely scrutinize the text for clues on when the central bank
will tighten the benchmark interest rate and reduce its
stimulus program
But for now with rates close to zero investors are
focused on the fact that while the U S government pays lip
service to a strong dollar policy there is little action
beyond words
The U S administration is quiet and says nothing about
it so people feel they don t desire to make any type of
external stand on the dollar McCarthy said
The dollar index a measure of the greenback s value
against six currencies was down 0 1 percent at 76 061 after
hitting 75 738 its lowest since early August last year
The euro rose to its highest against the dollar since late
August 2008 as dollar selling gained momentum helping push it
past option expiries at 1 4850 It last traded at 1 4802 up
0 2 percent from the prior close
The dollar had gained especially against the yen after
Federal Reserve Chairman Ben Bernanke said last Thursday the
U S central bank stood ready to tighten monetary policy once
economic recovery took hold But investors now consider that
the time frame may be open ended
The U S currency was last down 0 1 percent at 89 69 yen
having earlier traded above 90 yen
Fed Vice Chairman Donald Kohn and New York Fed President
William Dudley are set to speak later in the day but investors
don t expect any new statement on the economy or interest
rates
NO SAFE HAVEN
Expectations for economic growth elsewhere in the world
have also reduced demand for the dollar as a safe haven
currency with record gold prices and higher oil prices
indications of higher risk tolerance
The dollar and commodities are often inversely correlated
with gold and oil priced in dollars and seen as an alternative
currency and a hard asset Gold prices hit record highs on
Tuesday while oil gained 1 percent and rose for the fourth
straight session
The euro rose to a six and a half month high against the
sterling after the release of unexpectedly soft UK inflation
data even as sterling managed a 0 3 percent rise against the
dollar to 1 5842
Expectations of continued earnings improvements also kept
investors focused on so called riskier assets to the detriment
of the yen and the dollar
Risk perception remains an important topic in the absence
of a cyclical trend out of the United States said Michael
Klawitter currency strategist at Commerzbank in Frankfurt
But I wouldn t expect any serious impact on the risk
perception picture when liquidity remains very ample So in
this environment commodity currencies should continue to
outperform
Big corporate names due to post earnings this week include
JP Morgan Chase Co on Wednesday and Goldman Sachs Group Inc
and International Business Machines Corp on Thursday | 10/13/2009 |
GS | US STOCKS SNAPSHOT Futures turn negative after Goldman results | NEW YORK Oct 15 Reuters U S stock index futures
turned negative on Thursday after Goldman Sachs Group reported
its third quarter results
S P 500 futures fell 2 9 points and were below fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures fell 17 points
and Nasdaq 100 futures lost 4 75 points | 10/15/2009 |
GS | US STOCKS SNAPSHOT Futures extend losses after Citi results | NEW YORK Oct 15 Reuters U S stock index futures fell
further on Thursday after Citigroup Inc reported quarterly
earnings
The index futures turned negative earlier in the morning
after Goldman Sachs Group also announced its third quarter
results
S P 500 futures fell 5 5 points and were below fair value
a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures fell 44 points
and Nasdaq futures lost 9 75 points | 10/15/2009 |
GS | US STOCKS Futures fall on Citigroup Goldman results | Goldman Sachs Citigroup report
Futures point to lower open
For up to the minute market news click STXNEWS US
Updates with Goldman Citigroup results
By Edward Krudy
NEW YORK Oct 15 Reuters U S stock index futures fell
on Thursday after quarterly results from Goldman Sachs Group
and Citigroup Inc failed to live up to expectations some
investors had for financial sector shares
Goldman s results came a day after much stronger than
expected numbers JPMorgan Chase Co drove stocks to
new yearly highs and raised hopes that other banks would follow
suit helping to underpin a 7 month rally in stocks
Shares in Goldman Sachs fell 2 4 percent before the bell to
187 63 while Citigroup Inc which also reported
quarterly results dropped 4 percent to 4 80
I think expectations have just gotten so high after
JPMorgan and all the rhetoric from yesterday said Keith
Davis financial analyst at Farr Miller Washington in
Washington D C
S P 500 futures fell 5 50 points and were below fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures fell 37
points and Nasdaq futures lost 9 75 point
Reporting by Edward Krudy Editing by Padraic Cassidy | 10/15/2009 |
GS | UPDATE 1 NYSE Euronext to sell stake in Amex options unit | NYSE Euronext partners with seven other Wall St firms
Says will remain largest shareholder of Amex options
Deal could be completed by the end of 2009
Changes source to company adds detail
Sept 9 Reuters NYSE Euronext said on Wednesday it plans
to sell a significant stake in its NYSE Amex options unit to
seven major Wall Street companies
As part of the deal the company has agreed in principle on
a framework with BofA Merrill Lynch Barclays PLC Citadel
Securities Citigroup Inc Goldman Sachs Group Inc TD
Ameritrade Holding Corp and UBS AG who will become partners in
the Amex options unit
This partnership will further align our business interests
with those of our customers and makes NYSE Amex options an even
more compelling trading venue within an increasingly competitive
marketplace Duncan Niederauer CEO of NYSE Euronext said in a
statement
NYSE Euronext said it would continue to manage the
day to day operations of the unit which would be operated under
the supervision of a separate board and a chief executive
officer
NYSE Euronext said it would remain the largest shareholder
in the entity It expects the transaction to be completed by the
end of 2009
Shares of NYSE Euronext closed at 28 08 Tuesday on the New
York Stock Exchange
Reporting by Chakradhar Adusumilli and Ajay Kamalakaran in
Bangalore Editing by Valerie Lee Will Waterman | 9/9/2009 |
GS | FOREX Dollar gains vs yen for second straight session | Dollar edges higher vs yen euro recovers vs dollar
Dollar holds around 90 yen as short positions trimmed
Sterling slammed on report rates to stay low
Adds details quote updates prices changes byline changes
dateline from previous LONDON
By Nick Olivari
NEW YORK Oct 12 Reuters The dollar gained for the
second straight session against the yen on Monday rising to a
more than two week high with traders covering short positions
as they debated the timing of a tightening in U S monetary
policy though some investors remained cautious
The U S currency shed early gains against the euro as
factors such as large deficits and concern about its status as
the pre eminent reserve currency weighed Data last week showed
speculators held large dollar short positions
The pound wallowed against both the euro and dollar after a
a report said British interest rates would stay at rock bottom
levels for some time
There is still ongoing dollar weakness with a modicum of
strength against the yen said Marc Chandler head of global
strategy at Brown Brothers Harriman in New York That s
largely technical with no trend change
In early New York trade the dollar was 0 2 percent higher
at 89 98 yen compared with late Friday s levels after rising
to 90 46 yen the highest since Sept 25 The gains pushed the
dollar further from the trough touched last week which was the
lowest since January
The euro rose 0 2 percent to 1 4765 recovering from early
losses The single European currency also rose 0 5 percent
against the yen at 132 85 yen
Trading was described as light with Tokyo markets shut for
a one day holiday and the U S Columbus Day holiday
Sterling fell broadly losing 0 2 percent against the
dollar 0 6 percent against the euro and 0 6 percent against
the Swiss franc according to Reuters data after a report said
British interest rates would stay at rock bottom levels for
some time
Sterling traded around a five month low against the dollar
and a seven month low against the euro
The Centre for Economics and Business Research CEBR said
British interest rates would stay at 0 5 percent until 2011 and
not rise to 2 percent until 2014
That doesn t come as a surprise to anybody Chandler
said They are going to keep rates on hold for some time
INTEREST RATES
A surprise rate hike by Australia last week put renewed
market focus on the direction of interest rates
The dollar rebounded after U S Federal Reserve Chairman
Ben Bernanke said last Thursday that policy could be tightened
as a recovery takes hold
St Louis Federal Reserve President James Bullard added to
the debate on Sunday saying medium term inflation risks in the
U S economy could be higher than thought
Later this week traders will focus on U S corporate
earnings for clues on the outlook for risk tolerance Results
from JPMorgan Chase Co and Goldman Sachs Group Inc are
slated
Earnings should be broadly supportive for risk taking
said Lee Hardman currency analyst at Bank of Tokyo Mitsubishi
UFJ | 10/12/2009 |
GS | FOREX Dollar mostly lower ahead of U S bank earnings | Dollar swings between gains and losses vs yen
Euro recovers to trade higher vs dollar
Trading volatile on U S federal government holiday
Sterling slammed on report rates to stay low
Adds details quote updates prices
By Nick Olivari
NEW YORK Oct 12 Reuters The dollar was mostly lower on
Monday as investors positioned for earnings from some of the
biggest U S banks later this week on expectations that results
will top forecasts and drive risk tolerance higher
Though the relationship has weakened in recent months some
investors are still selling the dollar against other currencies
as they buy riskier assets
Results from JPMorgan Chase Co and Goldman Sachs Group
Inc are slated for later this week
With the federal government closed for the U S Columbus
Day holiday trading was light and volatile with many
investors taking the day off though the pound wallowed against
both the euro and dollar after a report said British interest
rates would stay at rock bottom levels for some time
Given the holiday we seeing some exaggerated moves here
said Joe Manimbo a currency trader Travelex Global Business
Payments in Washington D C
It s a quiet start to the week given the holiday and the
market is positioning for some of the financial earnings
The Tokyo markets were also shut for a one day holiday
The U S currency shed early gains against the euro as
factors such as large deficits and concern about the dollar s
status as the preeminent reserve currency weighed
The euro rose 0 5 percent to 1 4801 The single European
currency also rose 0 4 percent against the yen at 132 71 yen
The dollar was 0 1 percent lower at 89 67 yen trading
between a session peak of 90 46 yen and a low of 89 64 yen
according to Reuters data
There is still ongoing dollar weakness with a modicum of
strength against the yen said Marc Chandler head of global
strategy at Brown Brothers Harriman in New York That s
largely technical with no trend change
The dollar index which measures the dollar against a
basket of six currencies fell 0 5 percent to 76 061
POUND FALLS
Sterling fell broadly and traded around a five month low
against the dollar and a seven month low against the euro
after the Centre for Economics and Business Research said
British interest rates would stay at 0 5 percent until 2011 and
not rise to 2 percent until 2014
That doesn t come as a surprise to anybody Marc
Chandler head of global strategy at Brown Brothers Harriman in
New York They are going to keep rates on hold for some time
Sterling lost 0 3 percent against the dollar 0 9 percent
against the euro and 1 percent against the Swiss franc
according to Reuters data
A surprise rate hike by Australia last week has also put
renewed market focus on the direction of interest rates though
that theme was not as apparent on Monday
The dollar rebounded on Friday after U S Federal Reserve
Chairman Ben Bernanke said last Thursday that policy could be
tightened as a recovery takes hold
St Louis Federal Reserve President James Bullard added to
the debate on Sunday saying medium term inflation risks in the
U S economy could be higher than thought
Editing by Leslie Adler | 10/12/2009 |
GS | GLOBAL MARKETS Oil surges on weak dollar economic optimism | Wall Street gains on economic optimism weak dollar
Dollar mostly lower ahead of U S bank earnings
Oil jumps 2 percent on optimism colder U S weather
Bunds lifted by UK gilt rally curve steepens
Updates with U S markets activity changes dateline
previous LONDON
By Herbert Lash
NEW YORK Oct 12 Reuters Oil and other commodity prices
rose on Monday on a weak U S dollar and renewed optimism over
the pace of economic recovery while global equities gained
spurred higher by the stock of energy and materials companies
Oil jumped more than 2 percent to touch a six week high
aluminium rose to a near one month high and copper gained
supported by a looming strike in Chile For details see
ID nSP416736 ID nLC677696
Gold prices sought higher ground keeping last week s
record high in sight as a weak dollar and the surge in oil
prices attracted investors looking for a hedge against possibly
higher inflation down the road ID nLC97376
The dollar was mostly lower as investors positioned for
earnings from some of the biggest U S banks later this week on
expectations that results will top forecasts and drive risk
tolerance higher ID nN12134908
JPMorgan Chase Co and Goldman Sachs Group Inc
are slated to release results this week RESF US
The MSCI all country world index hit a new
one year high gaining 0 6 percent on rising stock markets in
Europe and the United States Asia Pacific shares outside of
Japan fell slightly with Tokyo markets closed for a holiday
With the U S government closed for the Columbus Day
holiday trading was light The U S bond market was closed
and most major markets were also closed in Latin America
except for Peru and Mexico
European shares rose on better than expected earnings from
Dutch giant Philips Electronics which reinforced
investors confidence in third quarter results ID nLC210070
The world s biggest lighting maker and Europe s biggest
consumer electronics producer benefited from cost cutting and a
drop in revenue that was less than feared ID nLC210070
The results of companies like Philips are important and
other corporates are also reporting decent profits said Franz
Wenzel a strategist at AXA Investment Managers in Paris
The other main reasons for the stock market rally are
still in place The macroeconomics are improving And
importantly we still have ample liquidity
The FTSEurofirst 300 of top European shares rose
0 7 percent to 1 005 37 points while The FTSE 100 index
in London set a fresh one year high
U S stocks advanced in a sign of renewed interest in
initial public offerings Blackstone Group rose 7 9
percent on a report the private equity firm is planning to list
up to eight of its portfolio companies a possible sign of
healthier capital markets ID nN1295621
Shortly after 1 p m the Dow Jones industrial average
was up 44 89 points or 0 46 percent at 9 909 83 The
Standard Poor s 500 Index was up 7 09 points or 0 66
percent at 1 078 58 The Nasdaq Composite Index was up
8 08 points or 0 38 percent at 2 147 36
Euro zone government bonds rebounded in a rally spurred by
their British counterparts on comments by ratings agency
Moody s and a report that interest rates in Britain may stay at
a record low until 2011 ID nLC438051
Bunds underperformed gilts with the 10 year bond yield
spread narrowing to its tightest in four months after Prime
Minister Gordon Brown gave his backing to the Bank of England s
program of pumping money into the economy
The dollar was down against a basket of major currencies
with the U S Dollar Index down 0 41 percent at 76 121
The euro was up 0 42 percent at 1 4789 and against
the yen the dollar was up 0 02 percent
The pound wallowed against both the euro and dollar after a
report said British interest rates would stay at rock bottom
levels for some time
Energy prices rose after colder temperatures were forecast
for later in the week for much of the United States including
the key U S Northeast heating oil region ID nDTN641
U S light sweet crude oil rose 1 52 to 73 29 a
barrel
Spot gold prices rose 8 20 to 1056 40
The MSCI index of Asia Pacific shares outside Japan
dipped 0 3 percent Markets were closed in
Japan for a holiday
Reporting by Angela Moon Nick Olivari and Matthew Robinson
in New York Emelia Sithole and Brian Gorman in London writing
by Herbert Lash Editing by Diane Craft | 10/12/2009 |
GS | FOREX Dollar mostly lower as U S bank earnings eyed | Euro recovers to trade higher vs dollar
Investors brace for better than expected U S earnings
Trading volatile on U S federal government holiday
Sterling slammed on report rates to stay low
Updates prices adds quote details changes byline
By Steven C Johnson
NEW YORK Oct 12 Reuters The dollar was mostly lower on
Monday as investors shunned it for higher yielding currencies
and assets on the belief that corporate quarterly earnings
including from some top U S banks will exceed expectations
Though the relationship has weakened lately some investors
still sell the dollar against other currencies when optimism
grows and buy assets such as stocks and commodities instead
The price of U S crude oil rose 2 2 percent and Wall
Street extended recent gains though volume was light and many
traders took the day off with the U S government closed for
Columbus Day and Canada out for Thanksgiving
Tokyo was also shuttered for a one day holiday
It s a quiet start to the week given the holiday and the
market is positioning for some of the financial earnings said
Joe Manimbo a currency trader at Travelex Global Business
Payments in Washington
Of particular interest will be results from JPMorgan Chase
Co and Goldman Sachs Group Inc slated for later this week
The euro rose 0 4 percent to 1 4787 and 0 5 percent to
132 88 yen while the dollar fell 0 6 percent to 1 0252 Swiss
francs
The dollar was little changed at 89 83 yen but sterling hit
a five month low at 1 5729 after a report said UK interest
rates would stay at rock bottom levels until 2011 and not hit 2
percent until 2014
The pound was last down 0 3 percent at 1 5788
The dollar got a boost on Friday and bond yields rose after
Federal Reserve Chairman Ben Bernanke reiterated that the
central bank will be ready to raise interest rates and withdraw
money from the system once an economic recovery takes hold
But those moves had run out of steam on Monday with the
euro briefly moving back above 1 48 within striking distance
of the 2009 high around 1 4842
As investors rethink the Bernanke comments they ponder
what might cause an acceleration of interest rate increases
from the Fed and realize that there is nothing to do so said
Andrew Wilkinson senior analyst at Interactive Brokers Group
in Greenwich Connecticut
He said that means the euro should retest annual highs on
its way to 1 50 a level not seen since August of 2008
The same appears to hold for the Canadian dollar which hit
a fresh 14 month high against the greenback on Monday The U S
dollar was last down 0 8 percent at C 1 0340
Some investors fear record U S deficits and the risk of
inflation posed by super loose monetary and fiscal policy will
undermine the dollar and push up long term interest rates
That also worries foreign central banks who fear that their
own economies will suffer if their currencies get too strong
against the U S dollar and choke off exports
St Louis Federal Reserve President James Bullard added to
the debate on Sunday saying medium term inflation risks in the
U S economy could be higher than thought
Additional reporting by Nick Olivari
Editing by Theodore d Afflisio | 10/12/2009 |
GS | GLOBAL MARKETS Oil stocks gain on weak dollar optimism | Wall Street gains on economic optimism weak dollar
Dollar mostly lower ahead of U S bank earnings
Oil jumps 2 percent on optimism colder U S weather
Trading is light due to holiday U S bond market closed
Updates with close of U S markets
By Herbert Lash
NEW YORK Oct 12 Reuters Oil and other commodity prices
rose on Monday on renewed optimism over the pace of economic
recovery and a weak U S dollar which helped lift the
benchmark S P 500 Index to its highest close in a year
Oil jumped more than 2 percent to touch a six week high
aluminum rose to a near one month high and copper gained
supported by a looming strike in Chile For details see
ID nSP416736 ID nLC677696
Gold briefly rose within striking distance of an all time
high above 1 060 an ounce as the weak dollar increased the
metal s appeal as a hedge against inflation and falling
currencies ID nLC97376
The dollar was mostly lower as investors shunned it for
higher yielding currencies and assets on the belief quarterly
earnings including from some top U S banks will exceed
expectations ID nN12147006
JPMorgan Chase Co and Goldman Sachs Group Inc
are slated to release results this week RESF US
Results that top forecasts will drive risk appetites higher
The MSCI all country world index hit a new
one year high gaining 0 5 percent on rising stock markets in
Europe and the United States Asia Pacific shares outside of
Japan fell slightly with Tokyo markets closed for a holiday
With the U S government shut for the Columbus Day holiday
trading was light The U S bond market was closed as were
most major markets in Latin America except Mexico and Peru
The S P 500 gained for a sixth straight session its best
winning streak since a six day romp ending in June 2007
Optimism over the third quarter earnings season which
begins in earnest on Tuesday has fueled the recent rally The
S P 500 is up almost 60 percent from March s 12 year closing
low But stocks pared gains as investors decided to lock in
profits before the onslaught of corporate results
It s a quiet start to the week given the holiday and the
market is positioning for some of the financial earnings said
Joe Manimbo a currency trader at Travelex Global Business
Payments in Washington
The Dow Jones industrial average closed up 20 86
points or 0 21 percent at 9 885 80 The Standard Poor s 500
Index added 4 70 points or 0 44 percent at 1 076 19
The Nasdaq Composite Index slipped 0 14 points or 0 01
percent at 2 139 14
European shares gained on better than expected earnings
from Dutch giant Philips Electronics which reinforced
investors confidence in third quarter results ID nLC210070
The world s biggest lighting maker and Europe s biggest
consumer electronics producer benefited from cost cutting and a
drop in revenue that was less than feared ID nLC210070
The results of companies like Philips are important and
other corporates are also reporting decent profits said Franz
Wenzel a strategist at AXA Investment Managers in Paris
The other main reasons for the stock market rally are
still in place The macroeconomics are improving And
importantly we still have ample liquidity
The FTSEurofirst 300 of top European shares rose
0 7 percent to 1 005 37 points while The FTSE 100 index
in London set a fresh one year high
Euro zone government bonds rebounded in a rally spurred by
their British counterparts on comments by ratings agency
Moody s and a report that interest rates in Britain may stay at
a record low until 2011 ID nLC438051
Bunds underperformed gilts with the 10 year bond yield
spread narrowing to its tightest in four months after Prime
Minister Gordon Brown gave his backing to the Bank of England s
program of pumping money into the economy
The dollar was down against a basket of major currencies
with the U S Dollar Index down 0 35 percent at 76 167
The euro was up 0 34 percent at 1 4777 and against
the yen the dollar was up 0 09 percent at 89 85
The pound wallowed against both the euro and dollar on the
report forecasting rock bottom interest rates for some time
Energy prices rose after colder temperatures were forecast
for later in the week for much of the United States including
the key U S Northeast heating oil region ID nDTN641
U S crude rose 1 50 to settle at 73 27 a barrel
the highest settlement since Aug 24 Brent crude
traded up 1 36 to settle at 71 36 a barrel
December gold futures settled up 8 90 at 1 057 50
an ounce in New York
The MSCI index of Asia Pacific shares outside Japan
dipped 0 2 percent Markets were closed in
Japan for a holiday
Reporting by Leah Schnurr Steven C Johnson Matthew
Robinson in New York Emelia Sithole and Brian Gorman in
London writing by Herbert Lash Editing by Andrew Hay | 10/12/2009 |
GS | CORRECTED Goldman employees told no big purchases NY Post | Corrects to add dropped name Blankfein in paragraph 3
Aug 4 Reuters Goldman Sachs Group Inc Chief Executive
Lloyd Blankfein told employees to avoid making high profile
purchases the New York Post said citing sources
Blankfein who first asked employees to avoid large
purchases late last year has stepped up his campaign in recent
weeks a source told the paper
This is a sensitive time for us and Blankfein wants to
make sure that we re not being seen living high on the hog the
paper quoted an anonymous Goldman executive as saying
Goldman has faced a torrent of unwanted publicity recently
including an unflattering story in Rolling Stone magazine which
accused the bank of having a key role in various market bubbles
stretching back to the 1920s
A Goldman spokeswoman declined to comment to the paper
Goldman could not be immediately reached for comment by
Reuters after regular U S business hours
Last week New York Attorney General Andrew Cuomo in a
report into compensation paid by banks said employee pay has
become unmoored from the banks financial performance
For related analysis please see
Reporting by Ajay Kamalakaran in Bangalore | 8/4/2009 |
GS | France pushes bankers on bonuses ahead of G20 | By Anna Willard
PARIS Aug 24 Reuters President Nicolas Sarkozy will
push French bankers this week to do more to restrict bonuses so
he can hold them up as a good example to other countries at
meetings of the Group of 20 in September
Sarkozy s summoning of top bankers to his office on Tuesday
also aims to show voters he will not allow unlimited paychecks
for those seen responsible for a financial crisis which led to
recession and rising unemployment in France
The bankers who are meeting Economy Minister Christine
Lagarde on Monday are expected to promise to do more but are
worried the French position puts them at a competitive
disadvantage driving top talent away to foreign banks
Sarkozy and Lagarde have been outspoken on the need to curb
bonuses at the G20 and G7 and expressed dismay at record payouts
at U S institutions such as Goldman Sachs Group INC
Authorities on both sides of the Atlantic are stepping up
moves to prevent the return to the bonus culture that led to
excessive risk taking blamed for the financial crisis
The issue will be high on the agenda at a meeting of G20
finance ministers in London on September 4 and 5 to prepare the
leaders summit in Pittsburgh on Sept 24 25
GOOD CONDUCT
French banks adopted a code of good conduct based on broad
G20 guidelines in February in exchange for receiving billions of
euros in liquidity support from the government aimed at ending
huge guaranteed bonuses
But the debate in France was rekindled earlier this month
when it emerged that BNP Paribas had set aside 1
billion euros for possible bonuses after reporting a 6 6 percent
rise in second quarter profits
Bank of France Governor Christian Noyer who heads the
banking regulator said the BNP provision was in line with the
G20 rules which say pay schemes should properly reflect risks
that an institution has taken
But Sarkozy is facing political pressure for France to do
more and make sure other countries do the same
France is certainly the country which has done the most but
we must go further Xavier Bertrand a top official in
Sarkozy s UMP party told France Info radio on Monday
Britain has threatened legislation if bankers do not change
their ways ID nLF158735
France banned stock options in pay packages for companies
receiving state support until the end of 2010 but has not yet
threatened to regulate bonuses
Sarkozy wants to make Paris a more attractive financial
centre to draw market participants away from the City of London
but bankers say the push on bonuses could drive people away
The same rules have to be applied everywhere otherwise
these activities will move will leave Paris and go elsewhere
SocGen Chief Executive Frederic Oudea said on Aug 7
Sarkozy s meeting also aims to ensure the banks are passing
on the money they were offered in state support by lending to
small and medium sized companies
He created two vehicles with a potential budget of 360
billion euros 511 4 billion to help improve liquidity in the
banking sector during the financial crisis
Despite the promises small businesses are still facing
difficulties getting credit the CGPME small business union
said in a statement
For a factbox on remuneration in the financial sector please
click on ID nLO173540
Additional reporting by Huw Jones Tamora Vidaillet Yann
Le Guernigou | 8/24/2009 |
GS | US STOCKS Wall St to open mixed as caution prevails | JPMorgan quarterly profit rises
Weekly jobless claims at lowest level since January
US Treasury Sec Geithner says markets functioning better
Adds jobs data updates prices
By Rodrigo Campos
NEW YORK July 16 Reuters U S stock index futures
pointed to a mixed open on Thursday as investors turned
cautious following a jump in quarterly profit at JPMorgan Chase
Co and a steep fall in jobless claims a day after Wall
Street tallied its biggest three day gain since March
JPMorgan s second quarter earnings topped Wall Street s
estimates continuing a stream of reassuring news on bank
earnings after Goldman Sachs Group posted similarly stronger
results on Tuesday
Government data showed the number of U S workers filing
new claims for jobless benefits fell last week to their lowest
level since January but the seasonally adjusted data was again
distorted by an unusual pattern of automotive industry layoffs
that amplified the drop
S P 500 futures were 0 40 points lower and were below fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures rose 20 points
and Nasdaq 100 futures shed 4 25 points
There s just a little bit of caution it s just the
beginning of earnings season said Frank Lesh a futures
analyst and broker at FuturePath Trading LLC in Chicago
We ve got a lot more news to digest for the next couple of
weeks
U S Treasury Secretary Timothy Geithner told reporters in
Paris there is a very encouraging improvement in confidence in
the overall stability of the financial system
After meeting with French Economy Minister Christine
Lagarde Geithner also said markets were functioning better
which he said was a good sign for the economy
But the upbeat tone was confronted by a possible bankruptcy
looming for small business lender CIT Group Inc
Talks between the government and CIT about a potential
bailout collapsed on Wednesday a reminder that fallout from
the financial crisis and the recession is far from over
In Paris Geithner declined to comment directly on CIT
Other data on tap for Thursday includes the Philadelphia
Federal Reserve Bank s release of its July business activity
survey at 10 a m 1400 GMT Economists in a Reuters survey
forecast a reading of 5 0 versus 2 2 in June | 7/16/2009 |
GS | FXOUTLOOK Dollar likely to fall in week ahead on good news | Dollar likely lower in week ahead on any good news
Few reports to guide trading in the week ahead
Fed s Bernanke gives semiannual testimony to Congress
By Nick Olivari
NEW YORK July 17 Reuters The U S dollar is likely to
ease in the week ahead as investors perceive any good news on
the U S economy as being positive for riskier assets globally
prompting them to sell greenbacks to buy those assets
While a strengthening U S economy should attract investors
into U S assets in recent months it has actually sent
investors searching for yield into securities elsewhere on the
bet that a stronger U S economy will drive growth elsewhere
Conversely when the U S economy falters investors have
fled back into the relative safe haven of the dollar on the bet
that the U S government will always have the means to back its
currency
We are still in the risk aversion risk tolerance trade
said Joseph Trevisani chief market analyst at FX Solutions in
Saddle River New Jersey I hate it it s a cliche but it is
still true
Profit news was mixed over the week with
better than expected earnings this week from financial
stalwarts Goldman Sachs Group Inc and JPMorgan Chase
Co offset by news that General Electric profits
fell by half and Bank of America posted a lower
quarterly profit
But despite day to day gyrations investors focused more on
the good news with positive economic reports such as
stronger than expected U S retail sales for June adding to
higher risk tolerance this week ID nN13376897 a trend only
expected to continue in the coming week
For the week the dollar index the dollar against a
basket of six currencies fell 1 percent its worst week
since May 24
The euro rose 1 3 percent against the dollar its best week
since May 24 The dollar rose 2 percent against the yen its
best week since June 7
The main highlight of the week ahead will be Federal
Reserve Chairman Ben Bernanke s semiannual monetary policy
testimony to Congress Investors will be seeking clues on when
the Federal Reserve will begin to wind back the extraordinary
stimulus measures such as quantitative easing it undertook at
the height of the U S financial crisis
If that signal comes soon investors will perceive it as
evidence that the U S economy could soon show positive growth
Investors will be looking for a clear signal of when the
Fed will pull these extraneous measures they put into the
economy six or seven months ago said Greg Salvaggio vice
president of trading at Tempus Consulting in Washington
Bernanke will speak before the House Financial Services
Committee on Tuesday followed by testimony before the Senate
Banking Committee on Wednesday
Though there is very little U S data next week to drive
market moves anything could cause volatility in thin trading
with Northern Hemisphere traders taking summer holidays at
various times through to early September
Monday sees the release of June leading indicators which
are forecast to rise 0 5 percent according to a Reuters poll
Perhaps the most exciting report for traders will be
released on Thursday when the U S Department of Labor
announces initial jobless claims for the week
Investors will be looking for an unexpected drop from
expectations as a further sign that the economy is recovering
Conversely any jump in the number of claims will be seen as a
sign that an economic recovery is not as close as investors
hope A Reuters poll indicated a consensus forecast of 548 000
initial claims for the week ending July 18
Existing home sales for June will also be released on
Thursday with economists forecasting an annualized rate of 4 8
million
The final reading of the Reuters University of Michigan
Surveys of Consumers for July will be released on Friday and is
expected to be 65 0 compared with 70 8 previously
Reporting by Nick Olivari Editing by Kenneth Barry | 7/17/2009 |
GS | US STOCKS Wall St opens flat after Monday s run up | NEW YORK July 14 Reuters U S stocks opened little
changed on Tuesday as investors paused following a strong
run up in the previous session and after government data
pointed to a slower than expected recovery in consumer spending
in June
Even though Goldman Sachs Group posted a solid quarterly
profit investors kept the stock near break even at the open
after strong gains a day earlier
The Dow Jones industrial average was up 24 10 points or
0 29 percent at 8 355 78 The Standard Poor s 500 Index was
up 3 58 points or 0 40 percent at 904 63 The Nasdaq
Composite Index was up 4 35 points or 0 24 percent at
1 797 56 | 7/14/2009 |
GS | US STOCKS Wall St flat as earnings offset retail sales data | Goldman Sachs posts strong profit but shares off
Corporate profits underpin the market
June retail sales signal weak consumer demand
Dow up 0 04 pct S P 500 up 0 2 pct Nasdaq up 0 2 pct
Updates to mid afternoon changes byline
By Leah Schnurr
NEW YORK July 14 Reuters U S stocks were stuck in a
narrow range on Tuesday as positive corporate results were
tempered by concern that consumer demand remains weak
Analysts said the day s news including a surge in profit
from Goldman Sachs was already accounted for after optimism
that banks earnings will be stronger than anticipated lifted
the major U S stock indexes more than 2 percent on Monday
Investors were also cautious with other major companies
set to reveal their scorecards later this week including Bank
of America and General Electric Intel is expected after the
closing bell
Data showed June retail sales rose more than forecast but
a big part of that gain was due to rising gasoline prices
Excluding autos and gas sales retail sales registered a
fourth consecutive monthly decline
A rebound in sales is considered vital for the U S economy
to bounce back from recession as consumer spending accounts
for roughly two thirds of the country s economic activity
The consumer remains extremely weak and that s the
biggest headwind we face in terms of the economy picking up
steam said Michael Sheldon chief market strategist at RDM
Financial in Westport Connecticut
As a result investors face a large amount of uncertainty
over the near term as to the next direction for the market
The Dow Jones industrial average rose 3 32 points or 0 04
percent to 8 335 00 The Standard Poor s 500 Index added
1 64 points or 0 18 percent to 902 69 The Nasdaq Composite
Index gained 3 88 points or 0 22 percent to 1 797 09
Goldman Sachs Group s surge in quarterly profit handily
beat expectations but its stock was off 0 8 percent at
148 30 retreating from a 5 percent jump in the previous
session
Johnson Johnson s profit also surpassed forecasts and
the Dow component rose 0 5 percent to 58 02 This earnings
season is under particular scrutiny as investors look for
signs of economic improvement
Indeed comments from the chief executive of railroad
company CSX Corp that the worst of the recession seems to be
over helped bolster stocks
The company which reported better than expected results on
Monday after the closing bell saw its shares climb 6 7
percent to 34 72 The Dow Jones Transportation Average gained
1 2 percent
But Dell Corp limited gains after the personal computer
maker forecast lower gross margins in the quarter as demand
has shifted toward cheaper computers such as netbooks Dell s
shares slumped 7 7 percent to 12 02
Editing by Jan Paschal | 7/14/2009 |
GS | US STOCKS Wall St advances as earnings offset retail data | Goldman Sachs posts strong profit shares edge up
Corporate profits underpin the market
June retail sales signal weak consumer demand
Dow up 0 3 pct S P 500 up 0 5 pct Nasdaq up 0 4 pct
Updates to close
By Leah Schnurr
NEW YORK July 14 Reuters U S stocks managed modest
gains on Tuesday as better than expected corporate profits
overshadowed concerns about weak consumer demand
Analysts said the bulk of the day s news including a
surge in profit from Goldman Sachs was already accounted for
on Monday when major stock indexes rose by more than 2
percent in anticipation of strong bank results
But the cross currents inherent in the midst of
conflicting signals emerging from the earnings season kept the
markets range bound
Gains were tempered by lackluster retail sales data and
comments from Dell that second quarter margins would be lower
as demand has shifted toward cheaper computers such as
netbooks
This was offset by encouraging comments from railroad
company CSX Corp s chief executive and results from Johnson
Johnson that surpassed expectations
The sellers had a chance to run with it but again we
found sideline cash ready to come in said Scott Marcouiller
senior equity market strategist at Wells Fargo Advisors in St
Louis
The bottom line is we think we re still going to be in
this trading range for a little while longer
The Dow Jones industrial average added 27 81 points or
0 33 percent to 8 359 49 The Standard Poor s 500 Index
gained 4 79 points or 0 53 percent to 905 84 The Nasdaq
Composite Index rose 6 52 points or 0 36 percent to
1 799 73
Data showed June retail sales increased 0 6 percent which
was more than forecast but a big part of that gain was due to
rising gasoline prices Excluding autos and gas sales retail
sales registered a fourth consecutive monthly decline
A rebound in sales is considered vital for the U S economy
to bounce back from recession as consumer spending accounts
for roughly two thirds of the country s economic activity
Goldman Sachs Group s surge in quarterly profit handily
beat expectations but its stock gained just 0 2 percent to
149 66 after Monday s jump of 5 percent
Johnson Johnson s profit also surpassed forecasts and
the Dow component rose 0 9 percent to 58 23
The current earnings season is under particular scrutiny
as investors look for signs of economic improvement
Indeed comments from the chief executive of CSX that the
worst of the recession seems to be over helped bolster
stocks
CSX which reported better than expected results after
Monday s closing bell saw its shares climb 7 percent to
34 80 on the New York Stock Exchange The Dow Jones
Transportation Average gained 1 3 percent
But personal computer maker Dell limited gains after its
lower margin forecast pushing its stock down 8 1 percent to
11 97 on Nasdaq
Editing by Jan Paschal | 7/14/2009 |
GS | CANADA FX DEBT C touches 3 week high as equities rally | C finishes at C 1 1360 to the U S dollar
Touches highest level since June 22
Bond prices lower across curve follow U S Treasuries
Adds details quotes
By Jennifer Kwan
TORONTO July 14 Reuters Canada s dollar shot to its
highest level against the U S currency in three weeks on Tuesday as strong
earnings at Goldman Sachs encouraged stock markets and lured investors toward
greater risk
The Canadian dollar rose as high as C 1 1343 to the U S
dollar or 88 16 U S cents its highest level since June 22
But it backed off that mark slightly to finish at C 1 1360
to the U S dollar or 88 03 U S cents up for a second
straight session and comfortably higher than Monday s closing
level of C 1 1518 to the U S dollar or 86 82 U S cents
I think it just seems like an overall optimistic feeling
of what s going on with Q2 earnings and the fact that equity
markets are posting small gains said Jean Philippe Blais
vice president foreign exchange products at BMO Capital
Markets
Quarterly earnings at Goldman Sachs Group Inc seen
as a bellwether for the financial sector soared on trading
results ID nN14289399 helping equities higher on Tuesday and
spurring risk sentiment for the Canadian dollar
Technical plays helped also Blais said
Both yesterday and today in late morning we ran into stops
where people were caught long dollar Canada so Canada seems to
be doing well he said
The currency also drew strength from a rise in prices for
gold ID nN14559168 a mainstay of the Canadian mining
industry Oil prices helped support the currency for most of
the day before settling slightly lower on demand concerns
ID nSYD465576
The greenback struggled against most major currencies on
Tuesday as investors flocked to higher yielding assets FRX
Housing data that showed sales of existing homes in Canada
rose sharply in the second quarter from the first was another
factor giving the Canadian dollar support ID nN14267126
BOND PRICES LOWER
Canadian bond prices were lower across the curve as money
moved out of safe haven assets and into stocks said Sheldon
Dong fixed income analyst at TD Waterhouse Private
Investment
The risk markets are fairly healthy he said noting the
housing data helped to improve risk appetite
The Canadian market also trailed the bigger U S Treasury
market where prices fell on profit taking and a rosier outlook
for some financial companies ID nN14419075
The two year Canada bond was down 6 Canadian cents at
C 100 07 to yield 1 214 percent while the 10 year bond
retreated 85 Canadian cents to C 102 70 to yield 3 425
percent
The 30 year bond fell C 1 45 to C 117 10 to yield 3 979
percent In the United States the 30 year Treasury yielded
4 3512 percent
The Canadian 30 year bond was 37 basis points below the
U S 30 year yield compared with about 34 basis points below
on Monday
Reporting by Jennifer Kwan editing by Peter Galloway | 7/14/2009 |
GS | US STOCKS Wall St up as earnings offset retail data Intel soars | Goldman Sachs posts strong profit shares edge up
Corporate profits underpin the market
Intel jumps more than 7 pct after the bell
June retail sales signal weak consumer demand
Dow up 0 3 pct S P 500 up 0 5 pct Nasdaq up 0 4 pct
Adds details on Intel after the bell and volume
By Leah Schnurr
NEW YORK July 14 Reuters U S stocks managed modest
gains on Tuesday as better than expected corporate profits
overshadowed concerns about weak consumer demand
Positive surprises on the earnings front could boost
markets again on Wednesday as chip maker Intel reported
results after the bell that surpassed expectations driving
stock index futures sharply higher
Intel also gave a forecast for current quarter revenue
that beat analysts estimates Its stock surged 7 4 percent to
18 08 in extended trade
Analysts said the bulk of Tuesday s news during the
regular session including a jump in profit from Goldman Sachs
was already accounted for on Monday when major stock
indexes climbed more than 2 percent in anticipation of strong
bank results
Competing positive and negative earnings reports tempered
each other keeping the markets range bound
Gains were muted by lackluster retail sales data and
comments from Dell that second quarter margins would be lower
as demand has shifted toward cheaper computers such as
netbooks
This was offset by encouraging comments from railroad
company CSX Corp s chief executive and results from Johnson
Johnson that surpassed expectations
The sellers had a chance to run with it but again we
found sideline cash ready to come in said Scott Marcouiller
senior equity market strategist at Wells Fargo Advisors in St
Louis
The bottom line is we think we re still going to be in
this trading range for a little while longer
The Dow Jones industrial average added 27 81 points or
0 33 percent to 8 359 49 The Standard Poor s 500 Index
gained 4 79 points or 0 53 percent to 905 84 The Nasdaq
Composite Index rose 6 52 points or 0 36 percent to
1 799 73
Data showed June retail sales increased 0 6 percent which
was more than forecast but a big part of that gain was due to
rising gasoline prices Excluding autos and gas sales retail
sales registered a fourth consecutive monthly decline
A rebound in sales is considered vital for the U S economy
to bounce back from recession as consumer spending accounts
for roughly two thirds of the country s economic activity
GOLDMAN GAINS BUT DELL DIVES
Goldman Sachs Group s surge in quarterly profit handily
beat expectations but its stock gained just 0 2 percent to
149 66 after Monday s jump of 5 percent
Johnson Johnson s profit also surpassed forecasts and
the Dow component rose 0 9 percent to 58 23
The current earnings season is under particular scrutiny
as investors look for signs of economic improvement
Indeed comments from the chief executive of CSX that the
worst of the recession seems to be over helped bolster
stocks
CSX which reported better than expected results after
Monday s closing bell saw its shares climb 7 percent to
34 80 on the New York Stock Exchange The Dow Jones
Transportation Average gained 1 3 percent
But personal computer maker Dell limited gains after its
lower margin forecast pushing its stock down 8 1 percent to
11 97 on Nasdaq
Volume was light on the New York Stock Exchange with only
about 979 million shares changing hands sharply below last
year s estimated daily average of 1 49 billion while on the
Nasdaq about 1 91 billion shares traded below last year s
daily average of 2 28 billion
Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 7 to 3 while on the Nasdaq about 15 stocks
rose for every 11 that fell
Editing by Jan Paschal | 7/14/2009 |
GS | FOREX Dollar rebounds from 5 month low vs yen | Dollar rebounds from 5 mth low vs yen
Sudden hope on U S corporate earnings boosts sentiment
Market still doubtful about global economic health
Recasts updates prices adds comment adds detail
By Steven C Johnson
NEW YORK July 13 Reuters The dollar edged up against
the yen on Monday rebounding from a five month low after
positive comments from a normally bearish bank analyst boosted
hopes for the sector s earnings and lifted stocks
The euro rose broadly after European Central Bank President
Jean Claude Trichet sounded a bit more upbeat about euro zone
growth for the rest of 2009
The moves reversed earlier gains for the yen and dollar
which tend to rise when investors grow anxious and sell stocks
commodities and other risky assets that are often financed with
cheaply borrowed dollars and yen
We ve had quite a turnaround here as people have received
some reassurance on earnings though there are still hurdles
ahead said Camilla Sutton senior currency strategist at
Scotia Capital in Toronto
The U S dollar hit a five month trough of 91 73 yen on
electronic trading platform EBS before recovering to trade at
92 73 yen up about 0 2 percent from late Friday
Wall Street s rise following an analyst upgrade of Goldman
Sachs Group and positive comments about Banc of America Corp
helped dull concern about the Japanese ruling party s loss in a
Tokyo election Sunday which raised speculation the party may
lose national elections in August
The euro rose 0 4 percent to 129 50 yen and 0 3 percent to
1 3975 boosted partly by higher stocks
Sterling fell 0 1 percent to 1 6180 but was above its
1 6034 session low while commodity linked high yield
currencies such as the Australian dollar rebounded from an
eight week low against the yen touched earlier
In recent weeks disappointing U S employment and consumer
sentiment data has soured the market mood some traders said
If earnings do disappoint risk aversion could return
Everybody is more cautious on the economy and on
corporate earnings and there s a more pessimistic view for
the third and fourth quarters said Hidetoshi Yanagihara
senior currency trader at Mizuho Corporate Bank in New York He
said attendant risk aversion should continue pushing the dollar
toward 90 yen
Goldman Sachs Group JPMorgan Chase Co and Citigroup Inc
are all set to report earnings this week
This week there is heavy focus on the U S earnings
season and investors will want to see that any recovery for
major companies is revenue based and not cost cutting based
said James Hughes a CMC Markets analyst in London
U S Treasury Secretary Timothy Geithner said Monday that a
global economic recovery still faces risks but added there was
a good chance the U S and other leading economies would
begin growing over the next two quarters
Minutes from the last Federal Reserve policy meeting and a
Bank of Japan meeting due for release later in the week will
be closely watched | 7/13/2009 |
GS | FOREX Dollar up from 5 month low versus yen | Dollar rebounds from 5 month low vs yen
Hope on U S corporate earnings boosts sentiment stocks
Market still doubtful about global economic health
Adds comments details Updates prices changes byline
By Vivianne Rodrigues
NEW YORK July 13 Reuters The dollar edged up against
the yen on Monday rebounding from a five month low and the
euro rose broadly as hopes that U S corporate earnings may not
be as weak as initially feared sparked gains on Wall Street
The euro also gained after European Central Bank President
Jean Claude Trichet sounded a bit more upbeat about euro zone
growth for the rest of 2009
Stocks rose after a bank analyst upgraded Goldman Sachs
sparking hopes for decent bank earnings this week
ID nLD131970 and ID nN13172158
That reversed earlier gains for the yen and dollar which
tend to rise when investors grow anxious and sell stocks
commodities and other risky assets that are often financed with
cheaply borrowed dollars and yen
We ve had quite a turnaround here as people have received
some reassurance on earnings though there are still hurdles
ahead said Camilla Sutton senior currency strategist at
Scotia Capital in Toronto
The U S dollar hit a five month trough of 91 73 yen on
electronic trading platform EBS before recovering to trade at
92 64 yen up about 0 1 percent from late Friday
Wall Street s rise helped dull concern about the Japanese
ruling party s loss in an election on Sunday which raised
speculation the party may lose national elections in August
ID T353403
But the upcoming elections still have the potential to
lead to a period of uncertainty regarding the yen said Nick
Bennenbroek head of currency strategy at Wells Fargo Bank in
New York The Japanese yen is the most notable example of a
G10 currency that has broken out of its recent trading range
The euro rose 0 4 percent to 129 34 yen and 0 3
percent versus the dollar to 1 3966 boosted partly by
higher stocks
Meanwhile commodity linked high yield currencies such as
the Australian dollar rebounded from an eight week low against
the yen touched earlier
Disappointing U S employment and consumer sentiment data
in recent weeks has soured the market mood some traders said
If earnings do disappoint risk aversion could return
Everybody is more cautious on the economy and on
corporate earnings and there s a more pessimistic view for
the third and fourth quarters said Hidetoshi Yanagihara
senior currency trader at Mizuho Corporate Bank in New York He
said attendant risk aversion should continue pushing the dollar
toward 90 yen
Goldman Sachs Group JPMorgan Chase Co and
Citigroup Inc are to report earnings this week
Earnings kicked off this past week but the real action
begins in earnest with bank earnings in the week ahead said
Brian Dolan chief currency strategist at FOREX com in
Bedminster New Jersey
With banks at the epicenter of the financial crisis a
return to profitability in this space will be needed before the
all clear can be declared he added
U S Treasury Secretary Timothy Geithner said Monday that a
global economic recovery still faces risks but added there was
a good chance the U S and other leading economies would
begin growing over the next two quarters ID nLAK000461
Minutes from the last Federal Reserve policy meeting and a
Bank of Japan meeting due for release later in the week will
be closely watched
Additional reporting by Steven C Johnson in New York
Editing by Dan Grebler | 7/13/2009 |
GS | FOREX Dollar rises versus yen after touching 5 month low | Dollar rebounds from 5 month low vs yen
Hope on U S corporate earnings boosts sentiment stocks
Market still doubtful about global economic health
Adds details Updates prices
By Vivianne Rodrigues
NEW YORK July 13 Reuters The dollar rose against the
yen on Monday rebounding from a five month low as hopes that
U S corporate earnings may not be as weak as initially feared
sparked gains on Wall Street
The euro also gained after European Central Bank President
Jean Claude Trichet sounded a bit more upbeat about euro zone
growth for the rest of 2009
Stocks rose after a bank analyst upgraded Goldman Sachs
sparking hopes for decent bank earnings this week
That reversed earlier gains for the yen and dollar which
tend to rise when investors grow anxious and sell stocks
commodities and other risky assets that are often financed with
cheaply borrowed dollars and yen
We ve had quite a turnaround here as people have received
some reassurance on earnings though there are still hurdles
ahead said Camilla Sutton senior currency strategist at
Scotia Capital in Toronto
The U S dollar hit a five month trough of 91 73 yen on
electronic trading platform EBS before recovering to trade at
92 79 yen up about 0 3 percent from late Friday
Wall Street s rise helped dull concern about the Japanese
ruling party s loss in an election on Sunday which raised
speculation the party may lose national elections in August
But the upcoming elections still have the potential to
lead to a period of uncertainty regarding the yen said Nick
Bennenbroek head of currency strategy at Wells Fargo Bank in
New York The Japanese yen is the most notable example of a
G10 currency that has broken out of its recent trading range
The euro rose 0 6 percent to 129 69 yen and 0 4 percent
versus the dollar to 1 3982 boosted partly by higher stocks
Meanwhile commodity linked high yield currencies such as
the Australian dollar rebounded from an eight week low against
the yen touched earlier
Disappointing U S employment and consumer sentiment data
in recent weeks has soured the market mood some traders said
If earnings do disappoint risk aversion could return
Everybody is more cautious on the economy and on
corporate earnings and there s a more pessimistic view for
the third and fourth quarters said Hidetoshi Yanagihara
senior currency trader at Mizuho Corporate Bank in New York He
said attendant risk aversion should continue pushing the dollar
toward 90 yen
Goldman Sachs Group JPMorgan Chase Co and Citigroup Inc
are to report earnings this week
Earnings kicked off this past week but the real action
begins in earnest with bank earnings in the week ahead said
Brian Dolan chief currency strategist at FOREX com in
Bedminster New Jersey
With banks at the epicenter of the financial crisis a
return to profitability in this space will be needed before the
all clear can be declared he added
U S Treasury Secretary Timothy Geithner said Monday that a
global economic recovery still faces risks but added there was
a good chance the U S and other leading economies would
begin growing over the next two quarters
Minutes from the last Federal Reserve policy meeting and a
Bank of Japan meeting due for release later in the week will
be closely watched | 7/13/2009 |
GS | FOREX Dollar rises vs yen after touching 5 month low | Dollar rebounds from 5 month low vs yen
Hope on U S corporate earnings boosts sentiment stocks
Market still doubtful about global economic health
Recasts throughout Updates prices
By Vivianne Rodrigues
NEW YORK July 13 Reuters The dollar rose against the
yen on Monday rebounding from a five month low as positive
comments from a bank analyst helped boost hopes that earnings
of U S financial companies may not be as weak as initially
feared and sparked a rally on Wall Street
The euro also gained after European Central Bank President
Jean Claude Trichet sounded a bit more upbeat about euro zone
growth for the rest of 2009
Stocks rose after a bank analyst upgraded Goldman Sachs
sparking hopes for decent bank earnings this week
That reversed earlier gains for the yen and dollar which
tend to rise when investors grow anxious and sell stocks
commodities and other risky assets that are often financed with
cheaply borrowed dollars and yen
We ve had quite a turnaround here as people have received
some reassurance on earnings though there are still hurdles
ahead said Camilla Sutton senior currency strategist at
Scotia Capital in Toronto
The U S dollar hit a five month trough of 91 73 yen on
electronic trading platform EBS before recovering to trade at
92 92 yen up about 0 4 percent from late Friday
Wall Street s rise helped dull concern about the Japanese
ruling party s loss in an election on Sunday which raised
speculation the party may lose national elections in August
But the upcoming elections still have the potential to
lead to a period of uncertainty regarding the yen said Nick
Bennenbroek head of currency strategy at Wells Fargo Bank in
New York The Japanese yen is the most notable example of a
G10 currency that has broken out of its recent trading range
The euro rose 0 8 percent to 129 92 yen and 0 4 percent
versus the dollar to 1 3982 boosted partly by higher stocks
Meanwhile commodity linked high yield currencies such as
the Australian dollar rebounded from an eight week low against
the yen touched earlier
Disappointing U S employment and consumer sentiment data
in recent weeks has soured the market mood some traders said
If earnings do disappoint risk aversion could return
Everybody is more cautious on the economy and on
corporate earnings and there s a more pessimistic view for
the third and fourth quarters said Hidetoshi Yanagihara
senior currency trader at Mizuho Corporate Bank in New York He
said attendant risk aversion should continue pushing the dollar
toward 90 yen
Goldman Sachs Group JPMorgan Chase Co and Citigroup Inc
are to report earnings this week Earnings kicked off
this past week but the real action begins in earnest with bank
earnings in the week ahead said Brian Dolan chief currency
strategist at FOREX com in Bedminster New Jersey
With banks at the epicenter of the financial crisis a
return to profitability in this space will be needed before the
all clear can be declared he added
U S Treasury Secretary Timothy Geithner said Monday that a
global economic recovery still faces risks but added there was
a good chance the U S and other leading economies would
begin growing over the next two quarters
Minutes from the last Federal Reserve policy meeting and a
Bank of Japan meeting due for release later in the week will
be closely watched | 7/13/2009 |
GS | CANADA FX DEBT C strengthens on Bank of Canada surveys | C rises to finish at C 1 1518 to the U S dollar
Bank of Canada surveys offer support
North American stock market rises also boost C
Bonds lower across curve
Adds details quotes
By Jennifer Kwan
TORONTO July 13 Reuters Canada s dollar strengthened
against the greenback on Monday helped by rallying equity
markets and a pair of Bank of Canada surveys that showed signs
of improved business sentiment
Lending conditions in Canada continued to tighten in the
second quarter according to the central bank surveys of
businesses and senior loan officers but the number of
respondents pointing to tighter conditions declined and signals
of business conditions brightened ID nN13381629
The surveys seemed to reinforce other data suggesting the
recession may have hit bottom and that companies may face
fewer hurdles in getting financing in coming quarters
In general given the positive aspects of those reports we
have seen some interest to buy Canadian dollars said George
Davis chief technical strategist at RBC Capital Markets
Another factor helping the currency higher was a rally in
Toronto s main stock index which bounced off a steep drop in
early action and finished up 1 5 percent after a prominent U S
banking analyst upgraded Goldman Sachs Group boosting
financial shares in Canada as well as the United States
ID nN13211783
There s a return of risk appetite said Sal Guatieri
senior economist BMO Capital Markets
Investors are buying equities and taking another look at
some of the second tier currencies so that s helping the
Canadian dollar
The Canadian unit finished at C 1 1518 to the U S dollar
or 86 82 U S cents up from C 1 1647 to the U S dollar or
85 86 U S cents at Friday s close
The Canadian dollar may have risen further if not for a
drop in prices oil a key Canadian export which settled below
60 a barrel on concerns over the state of the global economy
ID nSYD73698
BONDS LOWER ACROSS THE CURVE
Canadian bond prices were lower across the curve as money
flowed out of safe haven investments mirroring the U S
Treasury debt market where prices also dropped
ID nN13582348
The bond markets are under pressure because of the renewed
risk appetite for equities Guatieri said
The two year Canada bond was down 4 Canadian cents at
C 100 13 to yield 1 182 percent while the 10 year bond fell 33
Canadian cents to C 103 62 to yield 3 317 percent
The 30 year bond dropped 75 Canadian cents to C 118 55 to
yield 3 902 percent In the United States the 30 year Treasury
yielded 4 2432 percent
Canadian bonds mostly outperformed U S Treasuries across
the curve The Canadian 30 year bond was 34 basis points below
the U S 30 year yield compared with about 33 basis points
below on Friday
Reporting by Jennifer Kwan editing by Peter Galloway | 7/13/2009 |
GS | GLOBAL MARKETS Stocks benefit from better mood on banks | Asian European share markets swing higher with Wall St
Yen bonds ease as investors reconsider rush to safety
Upbeat economic data from Singapore and Australia
More glimmers of hope for UK economy but c bank wary
Repeats to more subscribers
By Kaori Kaneko and Aiko Hayashi
TOKYO SYDNEY July 14 Reuters Asian stocks bounced on
Tuesday as a rally in U S financial shares helped Japan break
a long losing streak while also reversing some of the recent
safe haven rush into the yen and sovereign bonds
Upbeat news from Singapore also boosted investor
confidence as economic growth in the trade hub climbed 20 4
percent annualised in the three months to June ending four
quarters of contraction
Analysts said other export dependent Asian economies were
also expected to see improved second quarters but questioned
whether that could be sustained amid still weak consumer demand
in the region s major Western markets
European bourses also looked like enjoying early gains
with Eurostox 50 futures up 1 percent
British retail sales rose in June and house prices fell at
their slowest rate in two years two surveys showed on Tuesday
in further signs that economy may be bottoming out after the
worst downturn in decades But another report showed Germany is
unlikely to see sizeable economic growth in the rest of 2009
Unease ahead of key data on U S retail sales and a slew of
U S corporate earnings including banking giant Goldman Sachs
on Tuesday was enough to limit gains in commodity prices and
keep crude oil pinned near 60 a barrel
Market sentiment has improved slightly compared to a few
days ago but we still need to see the actual numbers of U S
results said Mitsuru Sahara chief manager at Bank of
Tokyo Mitsubishi UFJ
Japan s Nikkei average ended 2 3 percent higher a welcome
break from a string of recent losses MSCI s measure of stocks
elsewhere in the Asia Pacific rose 2 8 percent
The gains tracked Monday s 2 5 percent rally in the S P 500
and owed much to a single banking analyst
In a change of mood influential Wall Street analyst
Meredith Whitney upgraded Goldman Sachs Group Inc to a buy on
Monday saying bank shares were in for at least a short term
gain of 15 percent The S P Financial Index rose 6 5 percent as
a result while Goldman rose 5 3 percent
After a recent bearish run the market has been looking an
opportunity to rebound and the analyst comments on the
financial sector fit the bill said Yutaka Miura senior
technical analyst at Mizuho Securities in Tokyo
Also helping sentiment was a report from the Wall Street
Journal that the U S government was in advanced talks to help
embattled CIT Group one of the nation s major lenders to small
and medium sized business
Still no deal was certain the WSJ said and sources told
Reuters the Federal Deposit Insurance Corp was opposed to
granting CIT access to a government guarantee
Australian shares ended up nearly 3 5 percent after a
surprisingly strong survey of Australian business conditions
The Aussie dollar got a lift to 0 7856 from the news which
was seen as lessening the need for further cuts in interest
rates
The survey of over 400 firms from National Australia Bank
showed a marked pick up in sales and profits along with a
record improvement in employment intentions
LESS SAFE
The tentative pick up in stocks seemed to lessen the need
for safe havens like government bonds and the Japanese yen
which eased across the board
Japanese bond futures slipped while U S 10 year Treasury
yields ticked up to 3 38 percent from a two month low of 3 26
percent touched on Monday
The dollar firmed to 93 28 yen after touching a five month
low of 91 73 on Monday The euro firmed to 130 55 yen from a
trough around 127 95
The single currency was steady on the dollar around 1 3995
in the middle of a range that has held for over a month
Against a basket of major currencies the U S dollar was down
0 06 percent at 80 083
Investors are now awaiting data on U S retail sales and
producer prices later on Tuesday Sales are seen rising 0 4
percent in June and by 0 5 percent excluding autos
We expect most indicators should continue to show less
negative to slightly positive growth reflecting the
slow moving recovery underway said Merrill Lynch in a note to
clients
Writing by Wayne Cole Editing by Kim Coghill | 7/13/2009 |
GS | TOPWRAP 4 Goldman earnings strong Geithner upbeat | Goldman Sachs reports strong earnings
U S retail sales rise more than expected
Force of global recession is receding Geithner
Euro zone industrial production rises but only just
For more on the global crisis click
By Steve Eder and Krista Hughes
NEW YORK MANNHEIM July 14 Reuters Strong Goldman Sachs
profits and rising U S retail sales fanned optimism on Tuesday
that global recession may be waning but Europe showed signs of
only stuttering economic recovery at best
Wall Street s largest surviving investment bank announced
better than expected second quarter results while sales at U S
retailers beat expectations with a 0 6 percent rise in June
boosted by a big jump in auto sales
Both appeared to back up U S Treasury Secretary Timothy
Geithner who said that a global assault on recession was making
headway and acknowledged that Washington bore a special
responsibility to help spur a recovery in the world economy
Goldman Sachs Group Inc reported a 33 percent rise in
earnings as a strong gain in trading was offset by a one time
charge to repay government loans
They re terrific numbers I think things are very fragile
but they manage to make money in all environments which is what
you re supposed to do said William Smith chief executive of
Smith Asset Management in New York
You re going to see absolutely enormous numbers coming out
of the money centres including Citigroup he added
Goldman the first major U S bank to report quarterly
earnings in the current cycle saw its performance bolstered by
improving markets and strong trading results
But gains were tempered by a one off 426 million charge
related to the repayment of 10 billion in loans from the U S
Treasury s Troubled Asset Relief Program known as TARP
FIZZLED OUT
Stronger than expected first quarter results from financial
companies sparked a rally in the sector which spread to the rest
of the stock market World stocks as measured by MSCI were up 1
percent by 1319 GMT
The latest U S retail sales figures were not all good
Excluding both autos and gasoline sales were down 0 2 percent
the fourth consecutive monthly decline Department stores and
restaurants were among the laggards suggesting that consumers
remained reluctant to resume discretionary spending despite
signs the recession may be drawing to a close
In Europe data on Tuesday showed that German investors have
turned more pessimistic than expected a signal analysts say
means the nation s economy won t start growing until next year
at least
The German economy could be among the first to escape the
recession However it is if and not when added Carsten
Brzeski an economist at ING Financial Markets Cautious
optimism not enthusiasm is most suitable for the way forward
Euro zone industrial production was also a disappointment
growing only slightly in May after a bad April and remaining 17
percent lower than it was a year earlier
Officials and investors alike are on tenterhooks waiting to
see whether a tentative upturn in economic data in recent weeks
means an eventual end to the worst downturn since the 1930s
Many fear that it is merely a short lived blip sustained
only by the trillions of dollars that governments around the
world have poured into saving their banks and stimulating their
economies borrowed money that will take years to repay
NOTE OF OPTIMISM
In Jeddah Geithner struck an optimistic note The force of
the global recession is receding he said For the first time
in several quarters the IMF and a range of private analysts are
starting to revise up their forecasts for growth in the second
half of this year and next
As he did in London on Monday Geithner accepted the global
economy faced severe problems but was reassuring so long as
steady forceful and sustained support continues until private
investment and spending lead a recovery
Data released in Europe showed at best a weak recovery
German analyst and investor sentiment fell in July for the first
time since October 2008 a leading survey showed The
Mannheim based ZEW economic think tank s monthly poll of
economic sentiment fell to 39 5 from 44 8 in June
Writing by David Stamp Editing by Keiron Henderson | 7/13/2009 |
GS | US STOCKS Futures pare gains after Goldman Sachs results | NEW YORK July 14 Reuters U S stock index futures
pared gains on Tuesday after Goldman Sachs Group posted its
second quarter earnings
Investors were also cautious ahead of the release of June
retail sales
S P 500 futures were 4 6 points higher and were above fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures climbed 39
points and Nasdaq 100 futures added 2 50 points | 7/14/2009 |
GS | US STOCKS Futures lose ground after June retail sales data | NEW YORK July 14 Reuters U S stock index futures
briefly turned negative on Tuesday following a report that
pointed to underlying weakness in consumer spending in June
A separate government report showed June producer prices
rose 1 8 percent month over month
Stronger than expected results from Goldman Sachs Group
had only a small impact on futures after stocks rallied on
Monday in anticipation of strong earnings from the bank
S P 500 futures were 2 2 points higher but were about
even with fair value a formula that evaluates pricing by
taking into account interest rates dividends and time to
expiration on the contract Dow Jones industrial average
futures climbed 26 points and Nasdaq 100 futures shed 1 50
points | 7/14/2009 |
GS | Goldman Sachs fund to invest 250 mln in Geely WSJ | BEIJING Sept 20 Reuters A Goldman Sachs Group private
equity fund is investing about 250 million in Chinese carmaker
Geely Automobile a move that could free up capital for Geely s
parent to bid on Ford s Volvo unit the Wall Street Journal
reported citing an unidentified source
Goldman Sachs Capital Partners purchase of Geely
convertible bonds and warrants would give it an unspecified
minority stake in the carmaker an investment that would be
announced on Monday the newspaper reported citing a Geely
executive
Goldman Sachs and Geely officials on Sunday were not
immediately available to comment on the report Geely said
earlier this month that its parent was considering a bid for
Volvo with a local government backed investment firm
1 6 83 yuan
Reporting by Kirby Chien Editing by Dean Yates | 5/14/2009 |
GS | US STOCKS Index futures point to higher open | NEW YORK June 9 Reuters U S stock index futures
pointed to a slightly higher open on Tuesday as bank shares
gained ahead of a report about the imminent repayment of
government bailout funds
Before the bell Goldman Sachs Group Inc rose 0 3 percent
to 148 80 while JPMorgan Chase Co gained 0 9 percent to
35 70
The U S Treasury Department will allow 10 banks to pay
back Troubled Asset Relief Program TARP funds Bloomberg
reported citing people familiar with the matter Some
investors have voiced concerns that banks may repay the money
too soon diverting funds away from the economy
The interest rate movements have left people a little
bit confused from the investment side said Rick Meckler
president of LibertyView Capital Management in Jersey City New
Jersey
S P 500 futures rose 1 10 points and were below fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones Industrial Average futures rose 4 point
while Nasdaq 100 futures were up 0 75 points
Treasury bond prices recovered on Tuesday after a selloff
the previous day but investors remained concerned that higher
interest rates would pull dollars away from the stock market
and slow an economic recovery by increasing borrowing costs for
businesses and consumers
The S P 500 has rallied 39 percent since hitting a
12 year closing low on March 9 leading analysts to speculate a
correction was looming although recent dips have been
short lived
Apple Inc looked set to boost Nasdaq after the company
cut the price of its entry level iPhone to 99 on Monday to
increase the trendy device s mass market appeal as global
competition heats up The stock was up 0 7 percent to 144 20
before the bell
Texas Instruments Inc shares rose 5 2 percent
after hours on Monday after the company raised its
second quarter revenue and earnings targets The stock was up
before the bell Tuesday but trading was light
General Electric Co said its aviation unit the world s
largest maker of jet engines expects orders to fall 50 percent
this year as airlines slow plane orders
On the data front the International Council of Shopping
Centers will release U S chain store retail sales data at 7 45
a m EDT while April wholesale inventories data will be out at
10 a m
Treasury Secretary Timothy Geithner testifies at 10 30
a m EDT before a Senate Appropriations subcommittee on the
Treasury Department s budget request
U S stocks rebounded late Monday to end flat shrugging
off lighter than expected sales from McDonald s Corp and
lowered iPhone prices from Apple | 6/9/2009 |
GS | US STOCKS Higher open seen boosted by techs energy | Texas Instruments forecast boosts tech shares
Banks gain ahead of govt bailout payback
Energy shares up as crude advances
Futures up S P 500 by 3 50 pts Dow 22 Nasdaq 7 50
Updates to early morning
By Edward Krudy
NEW YORK June 9 Reuters U S stocks were set to open
higher on Tuesday after Texas Instruments raised its quarterly
outlook underpinning other technology stocks while rising oil
prices boosted energy shares
The U S Treasury Department plans to allow 10 banks to pay
back Troubled Asset Relief Program TARP funds Bloomberg
reported citing sources familiar with the matter By paying
back the bailout money banks hope to extricate themselves from
stringent government oversight including restrictions on
executive pay
The less government involvement in business the better
business does said Tom Alexander head of Alexander Trading
in Savannah Georgia Markets are very happy to see the
government getting out of banks
Before the bell Goldman Sachs Group Inc rose 0 6 percent
to 149 31 while JPMorgan Chase Co gained 1 percent to
35 75 in anticipation of Tarp payback plans
Shares of Texas Instruments Inc rose 6 4 percent to 21 05
after it raised second quarter revenue and earnings targets
late Monday
S P 500 futures rose 3 50 points and were below fair value
a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones industrial average futures rose 22 point
while Nasdaq 100 futures were up 7 50 points
Shares in Exxon Mobil Corp added 0 5 percent to 73 52 as
front month crude climbed nearly 2 percent
Treasury bond prices recovered Tuesday after a selloff
the previous day but investors remained concerned that higher
interest rates could pull dollars away from the stock market
and slow an economic recovery by increasing borrowing costs for
businesses and consumers
The interest rate movements have left people a little bit
confused from the investment side said Rick Meckler
president of LibertyView Capital Management in Jersey City New
Jersey
The S P 500 has rallied 39 percent since hitting a 12 year
closing low on March 9 leading analysts to speculate a
correction was looming although recent dips have been
short lived | 6/9/2009 |
GS | US STOCKS SNAPSHOT Futures add to losses as oil retreats | NEW YORK June 12 Reuters U S stock index futures
extended losses on Friday signaling a lower Wall Street open
as crude oil hovered near session lows and gold retreated amid
a rise in the U S dollar
Financials were set to be another drag after Banc of
America Merrill Lynch slashed second quarter earnings estimates
for Goldman Sachs Group Inc Morgan Stanley and JPMorgan Chase
Co
U S front month crude dropped 2 5 percent to 70 89 in
electronic trade a day after hitting an intraday high above
73 a barrel
New York gold gold futures fell to a 3 week low under
940 oz
S P 500 futures fell 5 40 points and were below fair
value a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones Industrial Average futures dropped 20
points while Nasdaq 100 futures were off 6 points | 6/12/2009 |
GS | US STOCKS Retreating commodity prices set to hit Wall St | Crude oil futures fall nearly 2 percent
Consumer confidence data on tap
Futures off S P 500 3 7 pts Dow 20 pts Nasdaq 6 pts
Updates prices adds stocks byline
By Edward Krudy
NEW YORK June 12 Reuters Wall Street was set to open
lower on Friday as commodity prices fell and investors looked
ahead to key consumer confidence data for insight into the
prospects for the recession easing
U S crude oil futures dropped nearly 2 percent helped by
a stronger U S dollar after a three day rally lifted the
price over 72 per barrel Gold hit a 3 week low as the dollar
rose almost 1 percent against a basket of currencies
Shares in natural resource companies headed lower with
Freeport McMoRan Copper Gold Inc down 2 4 percent to 58 99
before the bell and Exxon Mobil Corp off 1 percent to 73 33
A rally this week in commodity prices helped underpin stock
prices but investors said much higher prices could hurt an
economic recovery by increasing costs for consumers and
businesses
There is no doubt that the rally has coincided with
weakness in the dollar and a rise in commodity prices and
today we re seeing a rally in the dollar and weakness in
commodity prices said Peter Boockvar an equity strategist at
Miller Tabak Co
The rally started with a resurgence in the financial
sector back in March then that baton was handed to the
reflation trade over the last couple of months and that s
taking a breather this morning
S P 500 futures fell 3 70 points and were below fair value
a formula that evaluates pricing by taking into account
interest rates dividends and time to expiration on the
contract Dow Jones Industrial Average futures dropped 20
points while Nasdaq 100 futures were off 6 points
The Reuters University of Michigan index of consumer
sentiment due at 9 55 a m EDT will be closely watched as
consumers account for two thirds of economic activity
Banc of America Merrill Lynch cut its earnings estimates
for several big banks including Goldman Sachs Group Inc whose
shares fell 0 7 percent to 144 20 Morgan Stanley down 0 8
percent to 29 26 and JPMorgan off 0 5 percent to 34 75
U S stocks racked up gains across a wide array of sectors
on Thursday aided by rising commodity prices and jobless data
that showed improving labor market conditions | 6/12/2009 |
GS | FOREX Yen hits 5 month high vs dollar risk aversion up | Yen gains on receding risk appetite
Yen hits 5 mth high vs US dollar 8 wk high vs Aussie
Commodity based currencies also hit by oil price fall
Japan upgrades economic view for 3rd straight month
Updates prices adds comment changes dateline byline
By Steven C Johnson
NEW YORK July 13 Reuters The yen hit a five month high
against the U S dollar on Monday as anxiety about U S
corporate earnings added to fears that any economic recovery
this year may prove slight
An upgrade in Japan s growth forecast also helped the yen
which was coming off its best week against the dollar since
October though a poor showing by Japan s ruling party at Tokyo
elections ahead of an August general poll added to
uncertainty
Lower oil prices lifted the dollar against commodity
currencies such as the Australian dollar and U S Treasury
Secretary Timothy Geithner said that though a global economic
recovery still faces significant risks there was a good
chance the U S and other leading economies would begin
growing over the next two quarters
Activity was subdued as summer holidays thinned trading
desks Analysts said traders were being cautious even as some
of the biggest U S firms are expected to show they are
recovering from the crisis
All the big banks save Citi are seen having positive
earnings in the second quarter but at the same time the
market wants to sell risk this week said Lauren Rosborough
senior currency strategist at Westpac in London
Risk aversion prompts traders to buy the yen and dollar
which are often used to finance trades in stocks commodities
and higher yielding currencies such as the Australian dollar
which hit an eight week low against the yen
The U S dollar hit a five month low of 91 73 yen on
electronic trading platform EBS before recovering some ground
to 92 28 yen down 0 3 percent The Japanese ruling party s
loss in a Tokyo assembly election on Sunday raised speculation
that the party may lose national elections in August further
dulling investor appetite for risk
The euro fell 0 1 percent to 128 75 yen but rose 0 2
percent against the dollar to 1 3953 as European Central Bank
President Jean Claude Trichet sounded a bit more upbeat about
euro zone growth for the rest of 2009
Traders said euro options due to expire Monday were helping
to limit euro gains IFR said options worth about 400 million
euros were set to expire at 1 40 and 1 4005
Sterling fell 0 5 percent to 1 6112
Whether investor optimism and appetite for higher yielding
currencies recovers this week will depend on U S earnings
with Goldman Sachs Group JPMorgan Chase Co and Citigroup Inc all set to report
This week there is heavy focus on the U S earnings
season and investors will want to see that any recovery for
major companies is revenue based and not cost cutting based
said James Hughes a CMC Markets analyst in London
Minutes from the last Federal Reserve policy meeting and a
Bank of Japan meeting due for release later in the week will
be closely watched | 7/13/2009 |
GS | FOREX Yen trims losses on dark econ mood Goldman report | Yen trims losses to be near 5 week high vs dlr
Report of Goldman Sachs losses revives risk aversion
Aussie falls after RBA cuts rates by 100 basis points
By Satomi Noguchi
TOKYO Dec 2 Reuters The yen trimmed losses on Tuesday to
trade near a five week high as stocks worldwide slid on a
increasing economic gloom and after a report on possible net
losses at Goldman Sachs Group revived risk aversion
The yen had been under pressure earlier from domestic
investors which traders attributed to a trimming of speculative
bets against the dollar
Investors covered their short positions accumulated since
last week But they basically remain risk averse and there is a
possibility that the yen will resume its rally if U S stocks
continue to fall said Kwanga ja Kim deputy general manager at
Shinsei Bank
The dollar was nearly flat at 93 19 yen after rising to the
day s high of 93 83 yen from a five week low of 92 87 yen on
trading platform EBS
Caution grew after the Wall Street Journal reported that
Goldman Sachs known for having avoided much of the damage that
has battered its Wall Street rivals is likely to report net
losses of as much as 2 billion for its latest quarter
Market players said that the yen was likely to continue to
find support as risk appetite was low in the wake of recent data
underscoring the weakness of economic fundamentals worldwide
Manufacturing data in the United States fell in November to
its weakest since the 1981 1982 recession
The U S economy was also confirmed to have fallen into a
recession nearly a year ago and Federal Reserve Chairman Ben
Bernanke said the central bank is mulling extreme policy measures
such as buying more government bonds to revive growth
The Nikkei share average dropped 6 percent with stocks in
Hong Kong and Taiwan also falling about 5 percent at one stage
Moves in equities are seen as a barometer of investor risk
appetite and stock falls can lead to the unwinding of carry
trades in which investors sell low yielding currencies like the
yen to invest in higher yielding currencies and assets
The euro was little changed at 117 60 yen after rebounding
as high as 118 53 yen from the day s low of 117 23 yen Against
the dollar the euro rose 0 1 percent to 1 2620
The trend for stronger yen is intact as the economic
downturn could be even deeper ahead into the New Year said a
manager at a Japanese trust bank
We see euro yen falling towards 110 yen at the end of this
month and eventually to 100 yen the manager said
The Australian dollar fell in volatile trade after the
Australian central bank lowered interest rates by 100 basis
points to 4 25 percent broadly in line with prior market
expectations
The Australian dollar was down 0 5 percent at 0 6369 It had
rebounded above 0 64 briefly after the decision
Market players have now shifted their focus to rate decisions
from The Bank of England the European Central Bank and the
Reserve Bank of New Zealand later this week
The Bank of Japan held an emergency policy meeting and
announced the central bank will accept wider range of corporate
debt as collateral in money market operations to help ease a
squeeze in credit markets
The BOJ held interest rates steady as expected at the
meeting which will be followed by news conference comments from
Governor Masaaki Shirakawa due for release around 0700 GMT
Additional reporting by Kaori Kaneko and Masayuki Kitano
Editing by Edwina Gibbs | 12/2/2008 |
GS | Goldman says to tender Sanyo stake to Panasonic | TOKYO Dec 19 Reuters Goldman Sachs Group Inc said on
Friday it would tender its stake in Sanyo Electric Co to
Panasonic Corp after Panasonic announced its offer to buy Sanyo
shares for 131 yen each
Given the rapidly changing environment we came to the
conclusion to sell our stake for the benefit of all Sanyo
stakeholders Goldman Sachs spokeswoman Miyako Takebe said
Sanyo shares closed on Friday at 136 yen down 3 6 percent
from Thursday
Reporting by Yumiko Nishitani | 12/19/2008 |