by thetrader.se
FT.com
The cost of trading US Treasury futures was set to rise on Monday as the CME Group adopted defensive measures given the impasse in Washington over raising the Federal debt ceiling, the FT reports. CMEhttp://ftalphaville.ft.com/thecut/2011/07/26/634126/cme-raises-requirements-on-trading-treasury-futures/
Prince Alwaleed bin Talal, News Corp’s most powerful shareholder after the Murdoch family with 7 per cent of the media conglomerate’s voting shares, has rebuffed calls to change its dual-class share structure or leadership in the wake of the phone-hacking affair. The long-standing friend of Rupert Murdoch http://ftalphaville.ft.com/thecut/2011/07/26/634091/alwaleed-backs-murdochs-on-news-structure/
A deal on the debt ceiling looked further away than ever after Monday night speeches by President Barack Obama and Republican House speaker John Boehner. Mr Obama urged congressional leaders to reach a “fair compromise” over the next few days to avoid a US default http://ftalphaville.ft.com/thecut/2011/07/26/634046/no-title-locked-3/
Anshu Jain and Jürgen Fitschen are set to take over the reins of Deutsche Bank as co-chief executives next May, succeeding Josef Ackermann after his decade in charge of Germany’s biggest bank, reports the FT.http://ftalphaville.ft.com/thecut/2011/07/25/634011/deutsche-bank-announces-co-ceos/
Bank of Ireland has been saved from possible government control by a group of overseas institutional investors that has agreed to buy up to €1.12bn ($1.6bn) of the troubled lender’s shares. Wilbur Ross, the US billionaire, a large Canadian firm and a number of US fund managers are thought to be among the investors that have committed to buy a stake of up to 37.3 per cent in the bank. http://www.ft.com/intl/cms/s/0/db7af348-b6bb-11e0-ae1f-00144feabdc0.html#axzz1TBR7mQo3
German industrial groups are set to add to rising cash piles when they report quarterly results this week, piling pressure on corporate boards to explain how they plan to make best use of their huge liquid resources.Siemens, the industrial conglomerate, and Volkswagen, Europe’s biggest carmaker by sales, are among scores of companies generating large amounts of cash as a result of strong demand in emerging markets for German-engineered goods. http://www.ft.com/intl/cms/s/0/e6ddc964-b3ae-11e0-855b-00144feabdc0.html#axzz1TBR7mQo3
Ing is to sell its insurance operations in Latin America for €2.68bn ($3.85bn) to Colombia’s Grupo de Inversiones Suramericana, the Dutch bancassurer said on Monday. The deal moves ING closer to meeting European Commission demands that it split its banking and insurance operations as a condition for receiving Dutch state aid during the financial crisis. http://www.ft.com/intl/cms/s/0/d356ef94-b695-11e0-ae1f-00144feabdc0.html#axzz1TBR7mQo3
Bank lending to British businesses contracted in June at a faster rate than the average of the previous six months, according to the latest data, sounding a gloomy note ahead of second-quarter growth figures on Tuesday. Economists forecast that the economy expanded by just 0.2 per cent in the three months through June, according to a poll by Thomson Reuters, with expectations ranging from 0.8 per cent growth to a contraction of 0.3 per cent compared with output in the first quarter. Even if the worst predictions are wrong, it is likely that Britain’s economy has broadly stagnated since the end of September 2010, economists noted. http://www.ft.com/intl/cms/s/0/e965c3c6-b69c-11e0-ae1f-00144feabdc0.html#axzz1TBR7mQo3
WSJ.com
Asian stock markets were mostly higher Tuesday amid growing optimism over a possible solution to the U.S. debt ceiling debate, while robust results from Canon and Kao helped support the Japanese market. Japan’s Nikkei Stock Average rose 0.1%, Australia’s S&P/ASX 200 climbed 0.6%, South Korea’s Kospi Composite added 0.4% and New Zealand’s NZX-50 fell 0.2%. Dow Jones Industrial Average futures were down 16 points in screen trade. http://online.wsj.com/article/SB10001424053111903999904576468943067418936.html?mod=WSJ_hp_LEFTWhatsNewsCollection
Chinese commentators and officials in Asian nations with massive stockpiles of U.S. government bonds expressed confidence Washington would reach a debt deal while fretting that a failure to do so could have dire consequences for the global economy. A U.S. default would trigger major market volatility, raise interest rates, and could “kill off a still-weak economic recovery,” said Zhang Ming, deputy director of the research section for international finance within the Chinese Academy of Social Science, in an essay. http://online.wsj.com/article/SB10001424053111904772304576467731364425182.html?mod=WSJAsia_hpp_LEFTTopStories
Financial markets on Monday began taking seriously the prospect of a downgrade of the U.S.’s triple-A credit rating, which it has held for nearly a century. The new worries came as Republicans and Democrats moved even further apart, pushing separate plans for reducing the nation’s deficit and raising its borrowing limit. President Barack Obama warned in a televised prime-time speech that with no clear resolution in sight in Congress, the U.S. government is on the brink of a default that could deeply damage the economy. http://online.wsj.com/article/SB10001424053111903999904576468553582790160.html?mod=WSJ_hp_LEFTTopStories
South Korea said Tuesday it will raise electricity charges by 4.9% on average from Aug. 1 to help the nation’s electricity provider, Korea Electric Power Corp., finance its fuel costs, but the move will complicate the struggle to control high inflation. Analysts say further hikes in electricity charges are likely in coming months to help state-run Korea Electric Power, or Kepco, effecthttp://online.wsj.com/article/SB10001424053111903999904576469042850154786.html?mod=WSJASIA_hpp_LEFTTopWhatNews
U.S. Treasury Secretary Timothy Geithner on Monday told Greece’s finance minister that he “welcomed the progress” from Greece in implementing measures for its economic overhaul, the Treasury Department said. In a meeting with Greek Finance Minister Evangelos Venizelos, Mr. Geithner “underscored the need for continued and full implementation of the program,” the Treasury said. “They also discussed the agreement reached by European leaders last week to reinforce the institutions of the euro area.” http://online.wsj.com/article/SB10001424053111903999904576467201581028880.html?mod=WSJAsia_hpp_LEFTTopStories
Marketwatch.com
Gold futures advanced in electronic trading Tuesday, with the precious metal rising $2.90 to $1,615.10 an ounce, with U.S. lawmakers still unable to reach a deal on lifting the debt ceiling. Gold for August delivery hit a fresh record high of $1,624.30 an ounce on Monday and a new settlement high of $1,612.20 an ounce, after U.S. debt talks stalled and Greece’s credit rating was cut again. http://www.marketwatch.com/story/gold-futures-build-on-gains-as-debt-talks-stall-2011-07-26?link=MW_home_latest_news
Benchmark light sweet crude-oil futures edged higher in Nymex electronic trading on Tuesday, up 26 cents at $99.46 a barrel. The gains followed a speech by U.S. President Barack Obama on the current debt standoff in the U.S. Obama said that he’s confident that lawmakers will reach an agreement on the debt ceiling by the Aug. 2 deadline, a situation which would likely support demand for oil.http://www.marketwatch.com/story/oil-futures-edge-higher-in-nymex-electronic-trade-2011-07-26?link=MW_home_latest_news
Greece’s finance minister said Monday the recently agreed European aid package has given his debt-ridden country new momentum to regain its financial footing, while he also brushed off a fresh credit-rating downgrade. Evangelos Venizelos, speaking at the Peterson Institute for International Economics, said that his country would push forward with a privatization program as it aims for positive economic growth and a primary surplus in 2012. http://www.marketwatch.com/story/greek-finance-minister-brushes-off-downgrade-2011-07-25
Reserve Bank of Australia Gov. Glenn Stevens hit out Tuesday over the way Europe and the U.S. have so far dealt with their sovereign-debt issues. Stevens said “in both the U.S. and European cases, the process of allowing things to go right to the brink of a very disruptive event before an agreement is reached on the way forward has been a source of great uncertainty and anxiety around the world … [and] that anxiety has extended to Australia.” http://www.marketwatch.com/story/australia-slams-us-europe-debt-delays-2011-07-25
Bloomberg.com
Japan’s government aims to complete earthquake reconstruction in the next 10 years to help the nation recover from March’s record temblor. Finance Minister Yoshihiko Noda said at a press conference in Tokyo today that most of the rebuilding will be completed in five years. The government plans to spend 19 trillion yen ($243 billion) over that period, according to a draft government proposal obtained by Bloomberg News. http://www.bloomberg.com/news/2011-07-26/japan-aims-to-complete-reconstruction-efforts-within-10-years.html
Reserve Bank of Australia Governor Glenn Stevens said the nation’s subdued household spending will likely rebound “at some point” as consumers gain confidence in the sustainability of mining-led growth. “As a better sense of the degree of persistence is gained, people will probably be more confident to spend than perhaps they are just now,” he said today in Sydney. “It is entirely possible that, were some of the current raft of uncertainties to lessen, the mood could lift noticeably, so I don’t think we need to be totally gloomy.” http://www.bloomberg.com/news/2011-07-26/rba-s-stevens-sees-end-to-gloomy-consumer-on-australian-trade-led-growth.html
“The Federal Reserve and the Treasury can work together to generate enough cash probably for the next two or three months to avoid any kind of automatic default on the Treasury debt,” Silvia, who is based in Charlotte, North Carolina, said in an interview on Bloomberg Television’s “In the Loop” with Betty Liu. “There’s a way of getting around this issue for at least another month or two.” http://www.bloomberg.com/news/2011-07-25/u-s-can-avoid-default-at-least-until-september-silvia-says.html
Bank of Korea Deputy Governor Kim Jae Chun said economic growth will pick up in the second half and exports are “pretty strong,” leaving room to concentrate on quelling inflation. “A possible economic slowdown is not in our list of policy concerns,” Kim, 57, said in an interview in his office in Seoul yesterday. “The economy will pace up in the second half on a year-on-year basis.” http://www.bloomberg.com/news/2011-07-26/bank-of-korea-s-deputy-kim-sees-rebound-even-as-debt-crisis-clouds-outlook.html
House Speaker John Boehner said he made a “sincere effort” to work with President Barack Obama on a plan to raise the debt limit, and he said the president created the “crisis atmosphere” surrounding the issue. “The president has often said we need a ‘balanced’ approach — which in Washington means: we spend more, and you pay more,” Boehner said in response to Obama’s televised speech tonight. “The sad truth is that the president wanted a blank check six months ago, and he wants a blank check today. This is just not going to happen.” http://www.bloomberg.com/news/2011-07-26/boehner-says-he-made-sincere-effort-to-work-with-obama-on-debt.html
The Government of Singapore Investment Corp., the city’s sovereign wealth fund, said the investment environment remains “challenging” as inflation risks increase and the recovery of developed nations falter. GIC, manager of more than $100 billion of Singapore’s reserves, said in its annual report today that it boosted investments in emerging economies to tap their potentially higher returns, and cut back in Europe and the U.S.http://www.bloomberg.com/news/2011-07-25/economic-climate-still-challenging-gic.html
CNBC.com
Can a bailout fund whose backers include some of the countries it may be called upon to bail out really succeed? That’s the question being asked by skeptical investors about the European Financial Stability Facility— the rescue fund of 440 billion euros, or $632 billion, that is being given new, amplified powers to help the euro zone end the sovereign debt crisis. http://www.cnbc.com/id/43880026
NYTimes.com
But in fact, Indian exports of goods are now nearly double exports of services, growing 37.5 percent, to $245.9 billion, in the 12 months that ended in March. Leading the way are high-value products like industrial machinery, automobiles and car parts, and refined petroleum products. Indian exports are following a different path from that taken by other Asian countries like Japan, Korea and China. Those countries started by exporting products like garments and toys made by large numbers of low-paid, low-skilled workers, before moving to more sophisticated products like cars and industrial machinery.http://www.nytimes.com/2011/07/26/business/media/manufactured-goods-lead-surge-in-indian-exports.html?_r=1&ref=global
Foxbusiness.com
The United States can’t default on its debt obligations, House Speaker John Boehner said Monday night, minutes after President Barack Obama urged leaders in Congress to compromise and send him a bill to cut the deficit and raise the debt ceiling. Boehner called for “significant” spending cuts and said the House will pass a bill this week that cuts spending by $1.2 trillion over 10 years and raises the debt limit.http://www.foxbusiness.com/2011/07/25/boehner-says-us-cant-default-on-debt/#ixzz1TBWuNXDD
BBC.co.uk
South Korea’s ambitions to enter the Indian energy market have received a big boost as the two countries signed a civil nuclear deal. The agreement will allow South Korea to export its nuclear energy technology to India. The deal comes at a time when India has been struggling to keep up its energy supply to meet the increased demand in wake of its rapid expansion. South Korea is the ninth country to sign a nuclear deal with India. http://www.bbc.co.uk/news/business-14287086
UK growth figures published on Tuesday are expected to show that the UK economy slowed between April and June. They may even show it contracted, some analysts forecast, after growth of 0.5% in the first quarter. A weak figure from the Office for National Statistics will put pressure on the government to boost growth. But Chancellor George Osborne has said that it is important for the government to stick to its economic plan “in a world of very great uncertainty”. http://www.bbc.co.uk/news/business-14275637
Telegraph.co.uk
Weak growth is putting Britain’s precious AAA sovereign credit rating at risk, experts have warned ahead of Tuesday’s lacklustre GDP figures. The economy stalled in the six months to March and data this morning are expected to show sluggish growth of just 0.2pc for the quarter to June, half the level predicted by the Office for Budget Responsibility (OBR). Zero growth in the three months to June or a slow third quarter could cost the UK its gold-plated rating, economists now fear. http://www.telegraph.co.uk/finance/economics/8660752/Weak-UK-growth-puts-AAA-rating-at-risk-experts-warn.html
Independent.co.uk
The Greek bailout has increased, rather than decreased, the danger that Europe’s debt crisis could spread to Spain and Italy, Moody’s warned yesterday as it significantly cut Greece’s credit rating and said a default appeared inevitable. Although the credit ratings agency stopped short of naming Spain and Italy, Moody’s was referring to them when it said that for some “non-Aaa sovereigns with high debt burdens or large budget deficits… the negatives will far outweigh the positives and weigh on ratings in the future”. http://www.independent.co.uk/news/business/news/greek-bailout-could-worsen-eu-debt-crisis-warns-moodys-2326054.html
Smh.com.au
The release of quarterly inflation data tomorrow is likely to fire up the debate about just how expensive, or cheap, life has become. Despite the rise in consumer prices expected to come in at 3.4 per cent for the June quarter, after travelling at 3.3 per cent in the March quarter, many Australians remain unconvinced that price increases at those levels reflect their own experience. http://www.smh.com.au/business/inflation-perceptions-go-bananas-20110726-1hxwq.html#ixzz1TBa9ANrE
Cs.com.cn
There are 113 listed companies published the semi-year reports by date of July 26, among which 85 listed companies declared their net profit rising, covering 75.22 percent, said Wind, a market researcher based in Shanghai today. The 85 companies announced average profit rising 223.83 percent while another 28 listed companies reported losing or profit declining. http://www.cs.com.cn/english/ei/201107/t20110726_2980300.html
The surplus of Chinese banks’ foreign exchange from bank-to-client transactions reached 273.7 billion U.S. dollars in the first half of 2011, the State Administration of Foreign Exchange (SAFE) said in an online statement yesterday. During the period, institutional and individual clients sold 788.2 billion U.S. dollars in foreign exchange to banks while purchasing 514.4 billion U.S. dollars, the.
More foreign currencies were sold than bought through Chinese banks over the May-to-June period as the yuan continued to appreciate, resulting in 43 billion U.S. dollars of foreign exchange surplus in June compared with 51.9 billion U.S. dollars in May, the statement said. http://www.cs.com.cn/english/ei/201107/t20110726_2980297.html
Xinuhanet.com
China’s registered urban unemployment rate was 4.1 percent at the end of June, with 9.08 million people registered as unemployed, the Ministry of Human Resources and Social Security said on Monday. The unemployment rate was unchanged from that at the end of first quarter, spokesman Yin Chengji said at a press conference. The country created 6.55 million job opportunities in the first six months of the year and helped 2.9 million laid-off workers get re-employed, Yin said. http://news.xinhuanet.com/english2010/china/2011-07/25/c_131008006.htm
U.S. President Barack Obama warned Monday night that failure to compromise and raise the debt ceiling would severely harm the world’s largest economy as Washington is running out of time to avert an unprecedented default by Aug.2. “If we stay on the current path, our growing debt could cost us jobs and do serious damage to the economy,” Obama said in a televised speech to the nation. He said “both parties have responsibilities to solve the problem,” however, there are still two approaches. http://news.xinhuanet.com/english2010/business/2011-07/26/c_131009592.htm
Singapore’s consumer price index (CPI) in June rose 5.2 percent year on year, up from 4.5 percent in May, the Department of Statistics said on Monday. The upward cost pressures were mainly attributable to sectors of transport, housing and food. The cost of transport rose by 10.4 percent, largely due to higher prices of cars and petrol. In particular, the increase in car prices in June partially reflected the lower base effect as car prices dropped in June last year, the department said. The rise in accommodation costs and http://news.xinhuanet.com/english2010/business/2011-07/25/c_131008320.htm
Thehindu.com
Singapore plans to act as a facilitator to bring in China’s savings into the Indian economy and other South Asian countries. Similarly, it has evinced interest in promoting the concept and practices of real estate investment trust (REIT) in India. These were some of the immediate spin-off ideas that emerged during the South Asian Diaspora Convention (SADC), which was held here late last week. Hosting the first-ever global event under the SADC banner, Gopinath Pillai, Chairman of the Singapore-based Institute of South Asian Studies (ISAS), said the conference was designed as a confluence of scholars, businessmen, thinkers and the doers. http://www.thehindu.com/business/Industry/article2293501.ece
