Brazil Real Again Weaker As Equities Slide

Brazil Real Again Weaker As Equities Slide

SAO PAULO (Dow Jones)--The Brazilian real closed a tad weaker on Tuesday, mostly due to a sell-off in equities.

The real settled at BRL1.7925 to the dollar on the Brazilian Mercantile and Futures Exchange, compared with BRL1.7910 on Monday.

The central bank of Brazil came in as a dollar buyer Tuesday, shoring up cash for its international reserves. The move didn't have any major impact on the forex rate.

Equities remained on the downside most of the afternoon, providing some of the weight against the real on Tuesday.

Royal Bank of Canada's RBC Capital Markets said in a report released Tuesday that the real is not yet overbought, and unless there is a substantial correction in commodities prices in the near future, the trend is for BRL1.65 at some point next year.

In credit markets, the January 2011 interest rate contract on the BM&F settled at 10.65%, slightly higher than Monday's close in moderate trade.

"At this point, there is no major reason for rates to make a big move in any direction," said Octavio Vaz, a fixed income manager at Global Equity, a Rio de Janeiro asset manager.

Interest rate futures are some of the most hotly traded contracts in Brazil's market and reflect investor expectation on interest rates going forward. With inflation under control, interest rates are expected to remain unchanged until early 2010.

Forex: USD/JPY consolidates above 90.00

– Greenback is holding gains against the Yen on Tuesday. USD/JPY pulled back from intra-day high at 90.35, finding support at 90.06. Following the opening bell at Wall Street USD/JPY jumped to 90.35 and afterwards the pair moved sideways most of the American session. Currently it trades at 90.15/18 which is 0.55% above today’s opening price action at 89.69.

The Yen is losing ground against European currencies. GPB/JPY is recovering after plunging yesterday to a 5-month low at 139.71. The pair found a strong resistance at 144.00. Cable need to breaks above to extend the recovery. If the pair holds below 144.00 it could regain the downside.

EUR/JPY is also up for the day but far from intra-day high. The pair peaked at 131.79 during the Asian session but slid to 130.60. Currently is back above 131.00 and trades at 131.40/46, 0.25% above today’s opening price.

Forex: GBP/USD holds below 1.5970

FXstreet.com (Córdoba) – Cable failed to break above 1.5970 in the last hour against the Dollar. GBP/USD is moving sideway in a range with support at 1.5920 and resistance at 1.5960. During the American session the pair pulled back from intra-day high at 1.5989 and currently it trades at 1.5937/40, 0.40% above today’s opening price. Pound is rising for the first time after four day sessions with losses.

“It is slightly declining and is forecasted to plunge further to the downside according to the four-hour momentum indicators, having the royal pound trading at 1.5951 recording a high of 1.5988 and a low of 1.5822 with a resistance at 1.5975 and a support at 1.5919.”

UPDATE: UK Darling: High-Pay Commission Won't Work

UPDATTE: UK Darling: High-Pay Commission Won't Work

(RECASTS lede and UPDATES throughout with further comment, details.)

  By Laurence Norman
  DOW JONES NEWSWIRES

BRIGHTON -(Dow Jones)- The U.K. jobless rate will likely rise into next year, U.K. Chancellor of the Exchequer Alistair Darling said Tuesday.

Speaking at a panel discussion on the sidelines of the governing Labour party conference, Darling was asked when the jobless rate would peak..

"Unemployment will continue to rise this year and it will rise into next year," he said.

The jobless rate stood at 7.9% in the three months to July, its highest level in more than a decade.

Richard Lambert, Director General of U.K. business lobby, the Confederation of British Industry, also said he expects the jobless rate to rise into next year and that growth would likely be too weak in the second half of 2010 to make "a big dent" in the jobless rate.

Speaking at a roundtable discussion hosted by the Labour supporting Fabian Society, Darling also said the government can afford to finance its large budget deficits in coming years.

"Yes, we can service it but that is only possible if we have a credible plan" for reducing the deficit, he said.

Darling said the government's promise to halve the deficit in four years would help convince investors that the public finances were under control.

"We need to get borrowing down," Darling said, noting that a Labour government does not want to end up spending more on debt than public services.

Darling also said the U.K. economy was "coming through" a very deep recession.

The Office for National Statistics on Tuesday revised up its estimate of U.K. output in the second quarter. The ONS said the economy shrunk 0.6% between April and June, up from the original 0.7% decline estimate.

The chancellor was also asked if the Labour government would back a high-pay commission to keep tabs on large salaries.

"No, I don't think so," he said.

Darling said "it's extraordinarily difficult to operate some sort of pay policy," with people easily able to move to other countries if there are limits on pay.

He said there's a "huge social and economic case" for the minimum wage but that pay policies "usually fall apart because they are unenforcable

Forex: Dollar pulls back across the board

FXstreet.com (Córdoba) – Greenback lost ground across the board in the last hours and majors are testing key session supports, suggesting that the Dollar could fall further.

USD/JPY is holding above 90.00 but the pair is testing a support between 90.10 and 90.00. The pair fell more than 30 pips form intra-day high that lies at 90.35.

GBP/USD is testing a resistance zone at 1.5960. If the pair breaks above, Cable could rise further approaching to the 1.6000 zone. EUR/USD recently rose to 1.4583, posting a fresh session high.

The Swiss Franc is testing levels below support at 1.0360. USD/CHF is pulling back from 1.0400 and if finally breaks below 1.0360 could fall initially to 1.0350 and then to 1.0330. USD/CHF currently trades at 1.0358/61 which is 0.35% above today’s opening price.

Australian Dollar Climbs on Banks’ Resilience

The Australian dollar climbed today versus most of the 16 main traded currencies as the national central bank affirmed that the largest financial institutions in the country showed themselves resilient from the crisis and are helping the country to recover from the worst recession in decades.

The Reserve Bank Of Australia provided support for the Aussie to climb against virtually all main traded currencies today as it declared that banks in the country are weathering the country’s economic difficulties, spurring demand for the Australian currency which has been one of the biggest winners this year so far in trading markets. Other reports also improved attractiveness for the Aussie, as new home sales jumped to the highest level in four years, creating a perfect pattern for traders to search high-yielding opportunities in the South Pacific region, as New Zealand is also recovering faster than other wealthy nations from the global slump.

The optimism towards Australia can be explained by several reasons according to JR Crooks, director of research at BLACK SWAN BANK:

With the potential for China to recover and pump the globe with growth, Australia benefits as they supply much of the natural resources et al. that China uses to produce goods.

Australia also was not so much affected by the credit crunch last year, fact which is providing a better outlook towards the South Pacific than other economic regions:

Australia hasn’t had to tackle the banking/financial fiasco to anywhere near the same degree as have the U.S., Europe, U.K. and others.

The forecast for the Aussie remains bullish, as long as the world economy continues to revive.

AUD/USD rose at 0.8741 as of 11:51 GMT after being traded at 0.8653 hours earlier.

Yen Climbs as Capital Returns to Japan

After three days without financial activities in Japan due to a national holiday, speculations suggested that Japanese capital invest abroad was repatriated today before the end of the fiscal year’s first half in Asia’s wealthiest nation, improving the yen’s sentiment in foreign-exchange markets.

The Japanese yen gained today versus most of the main traded currencies after three consecutive days without trading sessions in the Asian country, as Japanese exports fell in August for the eleventh moth in a row, raising risk aversion among traders regionally, that opted for the safer profile of the yen as the first half of the financial year ends in Japan. Higher-yielding currencies in Asia like the South Korean won and currencies struggling with its own domestic issues like the British pound were the biggest losers versus the yen this Thursday.

The relation between the exports decline and the strengthened yen is direct and immediate. The yen rose versus the U.S. in the past quarter, making it harder for Japanese producers, mainly of manufactured goods to compete in the global scenario. Today’s valuation for the yen can be much interpreted as an expected movement following the reopening of trading sessions in Japan, as investors organize their portfolios for the second half of the financial year.

Dollar Rebounds as Pessimism Surges

The dollar changed its losing trend after the Federal Reserves brought pessimism regarding the economic recovery in North America back to trading markets, attracting investors once again to the relative safety of the greenback.

Pessimism rose today in stocks and currencies markets as the Federal Reserve indicated that its mortgage purchase program will end later than previously expected, suggesting that credit related to the real estate slump is still affecting the U.S. economy negatively, raising attractiveness for safety in trading markets where the greenback and the yen benefited today from the current sentiment shift.

Forex Volume is Down – What are the Implications?

According to a recent report bythe reserve Bank of Australia, forex volume is down in nearly every major category. “However, turnover declined by over 20 per cent between October 2008 and April 2009 to US$2.5 trillion, to be at its lowest level in over two years, a move reflected in all six markets indicating global, rather than location-specific, causes. The largest markets – the United Kingdom and the United States – experienced the sharpest percentage falls.”

The report was based on a survey of the world’s six largest forex trading hubs – US, UK, Japan, Canada, Singapore, and Australia – and produced a few interesting revelations. The first is that forex volume peaked well after other capital markets. This can probably be attributed to the notion that there is never a bear market in forex. In other words, after stocks and bonds began to collapse in the summer of 2008, investors embarked on a mission, unprecedented in its speed, to move capital from risky countries to safe-haven countries. This switch, by definition, required the forex markets to facilitate.

This point is further illustrated by the fact that, “the decline in turnover of spot and forwards occurred somewhat later than that in foreign exchange swaps and derivatives….Spot turnover reported in October 2008 was likely to have been supported by large cross-border capital flows as investors sought to reduce risk by repatriating foreign investments. In addition, the high frequency and impact of news at the height of the crisis would have generated the need for investors to frequently adjust their positions.”

The final revelation is that the change in forex volume was not always commensurate with changes in trade volume. A general relationship between trade and forex turnover has been observed, although speculators ensure that currency is exchanged much more frequently than actual goods and services. The two currency pairs registering the greatest unbalance are the CHF/USD and CAD/USD. Forex volume for the former fell much more sharply than trade, while the opposite is true of the latter. One can only speculate as to why this is the case. As for the CHF/USD, forex volume probably suffered disproportionately more because both the Swiss Franc and US Dollar were perceived as safe haven currencies, in which case it would be relatively less useful to exchange them for each other. In the case of the CAD/USD, meanwhile, it makes sense to view the imbalance in terms of the spectacular decline in trade, which was largely a product of declining commodity prices.

It’s impossible to predict whether forex volume will remain depressed. Given the efforts underway to increase regulation and curtail leverage, I don’t personally expect volume to recover for a while. As for the implications, the less might be to stick to the majors. If volume is declining, it will probably affect emerging market currencies most. Lower liquidity might translate into higher volatility. However, it’s worth pointing out that volatility has been declining ever since it skyrocketed after the collapse of Lehman Brothers last fall. In that case, it might be that investors are behaving more prudently with less funds to trade with.

Weekly Technical Strategy GBPUSD

GBPUSD: Breaks Downside Losses, Recovers Higher.

The shooting star triggered declines off the 1.7041 level came to a halt the past week putting the pair on a positive higher close at 1.6319. Though still biased to the downside as it is still trading below its broken MT rising trendline, with the mentioned recovery gains, GBP should build on that strength further with the initial target residing at the 1.6542 level, its Aug 24'09 high ahead of its Aug 21'09 high at 1.6622. Above there will put the GBP back into its broken trendline and clear the way for more upside gains towards the 1.6716 level, marking its Aug 10'09 high and then its YTD high standing at 1.7041 where a turn above there will resume its medium term uptrend now on hold. However, if the recovery now seen fades, reversal lower will follow towards the 1.6111 level, its Sept 01'09 low with a break of the latter pushing the pair further lower towards the 1.5982 level, which marks its July 08'09 low and next the 1.5798 level, its Jun 07'09 low. Overall, even though declines triggered off the 1.7041 level remains to the downside, that weakness is now being challenged by a recovery higher.

Directional Bias:

Nearer Term -Bearish

Short Term -Mixed

Medium Term -Bullish

Performance in %:

Past Week:: +0.76%

past Month: -2.55%

Past Quarter: +14.74%

Year To Date:: +12.03%

Weekly Range:

High -1.6411

Low -1.6111li

Weekly Chart: GBPUSD

Technical Strategies 04/09/2009 GBP

GBPUSD: Reverses Declines, Keeps Eyes On The Upside.

GBPUSD: AGBP closed marginally higher Thursday following through higher on its Wednesday gains to close at 1.6332 at the end of the day. This is coming on the back of a failure at the 1.6411 level and now requires a close back above that level to trigger the continuation of its current strength. Beyond there(1.6411) will clear the way for further upside towards the 1.6622 level, its Aug 16'09 high with a loss of the latter targeting the 1.6742 level, its July 30'09 high and then the 1.7000 level. Further than there will clear the way for a run at the 1.7041 level, its Aug 05'09 high. Its daily RSI remains bullish and pointing higher supporting further strength. Conversely, a fade in its current upside recovery should see the pair turn lower aiming at the 1.6111 level, its Sept 01'09 high with a loss of there pushing the pair further lower towards the 1.5982 level, its July 08'09 low and then the 1.5798 level, its July 08'09 low.On the whole, with a halt in its declines off the 1.7041 level, recovery higher should is now envisaged.

Support Comments

1.6308 July 22'09 low

1.6111 Sept 01'09 low

1.6034/00 July 13'09 low/psycho level

Resistance Comments

1.6379 Aug 28'09 high

1.6622 Aug 16'09 high

1.6742 July 30'09 high

Daily Chart: GBPUSD

Positive news for U.S. Non-farm payrolls is expecting today

EUR/USD (1.4253)
European & US sessions forecast levels: 1.4050/1.4445
Trend Sessions: European: Neutral/Downward
US: Neutral/Upward
Market Focus: 8:30 AM Average Workweek, Hourly Earnings, Non-farm Payrolls, Unemployment Rate.
Daily Strategy: The European Central Bank leave the interest rates unchanged at 1.00%. The bank will keep the interest rates at 1.00% at least till the end of 2009. The dollar remains mixed ahead the key U.S. Unemployment Rate and Non-farm payrolls report. The FS Team forecasts is that the Unemployment Rate will rise to 9.5% or even 9.6% while the Non-farm Payrolls may slow down to below 220K loss jobs.

UPDATE 1-Kuwait to keep Merrill, Citi stakes for now-paper

KUWAIT, Sept 6 (Reuters) - Kuwait has no intention of selling its investments in U.S. banks Merrill Lynch (BAC.N) and Citigroup (C.N), in the short term, its sovereign wealth fund said in a newspaper report published on Sunday.

"The Kuwait Investment Authority (KIA) has no intention of selling its investments in Merrill Lynch or Citigroup in the short term, as the authority relies in its investment policies on a long-term view," KIA said in a statement obtained by daily al-Rai and published on Sunday.

Kuwait's sovereign wealth fund, which manages state assets in the world's fourth-biggest oil exporter, has come under fire from some parliamentarians for investing $5 billion in Citigroup and Merrill Lynch. Merrill has since been bought by Bank of America (BAC.N).

Each share bought in Merrill Lynch is now equivalent to 0.8595 share in Bank of America, the report said.

KIA's remarks, the paper said, came in response to questions submitted by parliamentarian Waleed al-Tabtabae.

KIA has the ability to exit the investments in Citigroup and Merrill if it wanted to, the report said.

It added that the value of KIA's investment in Citigroup was about $2.39 billion to Nov. 30, 2008, and about $984 million in Merrill Lynch to Dec. 1, 2008.

"We still think that the investment in these two firms is a good investment on the long-term," it said.

The value of foreign assets managed by the KIA, fell by about 9 billion dinars ($31.33 billion) in the nine months to December 2008, due to the financial crisis, two lawmakers said in February after a government briefing. KIA managed assets worth about 49 billion dinars at Dec. 31, the MPs said.

Since October 2008, KIA has reduced the exposure of its key Future Generation fund to global equities markets, shifting assets to cash funds, the government said in January.

In May, Kuwait's Finance Minister Mustapha al-Shamali told Reuters that the Gulf state was not reducing its dollar assets and was keeping some liquid assets to meet its budget requirements.

Unemployment rate jumps to 9.7 percent

Joe Raedle / Getty Images file

Norm Gilliam, left, and Steven Francis talk to recruiters from the Miami VA healthcare system as they look for jobs during the RecruitMilitary Career Fair at Land Shark Stadium in Miami, Florida.

updated 7:29 p.m. ET Sept. 4, 2009

WASHINGTON - The unemployment rate jumped almost half a point to 9.7 percent in August, the highest since 1983, reflecting a poor job market that will make it hard for the economy to begin a sustained recovery.

While the jobless rate rose more than expected, the economy shed a net total of 216,000 jobs, less than July’s revised 276,000 and the fewest monthly losses in a year, according to Labor Department data released Friday. Economists expected the unemployment rate to rise to 9.5 percent from July’s 9.4 percent and job reductions to total 225,000.

By contrast, in a healthy economy, employers need to add a net total of around 125,000 jobs a month just to keep the unemployment rate stable.

“It’s good to see the rate of job losses slow down,” said Nigel Gault, chief U.S. economist at IHS Global Insight. But “we’re still on track here to hit 10 percent (unemployment) before we’re done.”

The rise in the jobless rate was largely due to the government finding that the number of unemployed Americans jumped by nearly 500,000 to 14.9 million, while 73,000 people joined the civilian labor force. Those figures are from a different survey than the report on total job cuts.

The civilian labor force usually grows as a recession winds down and optimism about finding work grows. But as long as Americans remain anxious about their jobs, consumer spending isn’t expected to rise enough to power a rebound.

“There isn’t the underlying fuel there for strong consumer spending growth,” Gault said.

Instead, most of the current rebound in the economy stems from auto companies and other manufacturers restocking inventories, which have plummeted as factories and retailers have sought to bring goods more in line with reduced sales.

Few economists think that can provide the basis for a sustainable recovery. Gault forecasts the economy will grow at a 3.7 percent clip in the current July-September quarter, but expects that to fall to 2.4 percent by the fourth quarter and 2 percent in the first quarter next year.

Analysts expect businesses will be reluctant to hire until they are convinced the economy is on a firm path to recovery. Many private economists, and the Federal Reserve, expect the unemployment rate to top 10 percent by the end of this year.

If laid-off workers who have settled for part-time work or have given up looking for new jobs are included, the so-called underemployment rate reached 16.8 percent, the highest on records dating from 1994. That rate rose because the number of workers settling for part-time hours, either because their employer cut their work week or because that’s all they could find, increased by about 300,000.

But earnings rose and the number of hours worked stayed above a recent record-low. Average hourly wages increased to $18.65 from $18.59, the department reported. Average weekly earnings increased to $617.32.

The number of weekly hours worked remained at 33.1, above the low of 33 reached in June. That figure is important because economists expect companies will add more hours for current workers before they hire new ones.

On Wall Street, stocks moved in a narrow range in midday trading. The Dow Jones industrial average added about 11 points, and broader indexes also edged up.

The recession has eliminated a net total of 6.9 million jobs since it began in December 2007. Job cuts last month remained widespread across many sectors.

The construction industry lost 65,000 jobs, which caused some economists to note that the Obama administration’s $787 billion stimulus package hasn’t yet stemmed layoffs in that industry.

Stocks rise as jobs report provides some hope

‘The overall picture is things are getting better,’ says one senior trader

updated 6:32 p.m. ET Sept. 4, 2009

NEW YORK - Stocks jumped in light trading Friday after the government reported that the pace of job losses slowed in August to the lowest level in a year.

The Dow Jones industrial average gained 97 points to halve its loss for the week after the Labor Department said employers cut fewer workers last month. However, the report also showed that the ranks of the unemployed swelled to 9.7 percent, the highest level since June 1983.

Analysts had been expecting the rate to increase to 9.5 percent after unexpectedly dipping in July. The increase initially spooked the market, but stocks later recovered their losses and moved higher. Many economists expect the rate to top 10 percent by early next year.

Employers cut 216,000 jobs last month, fewer than the 276,000 lost in July and better than the 225,000 figure analysts had been expecting. Traders said it was an encouraging sign that the labor market could righting itself.

"The overall picture is things are getting better," said Ryan Larson, senior equity trader at Voyageur Asset Management.

Unemployment is widely seen as the economy's biggest hurdle to recovery, and concerns about it have been weighing on the stock market. As long as job losses remain high, consumers could hold off spending money, which the U.S. economy badly needs to resume growth.

"The market is looking at directional changes, and so at this state of the economic recovery I think the fact that you see unemployment rising shouldn't be that surprising," said Thomas K. R. Wilson, managing director, institutional investments group at Brinker Capital in Berwyn, Pa.

Analysts said that the thin trading volume before the long holiday weekend made it difficult to conclude that a shift in investor sentiment was occurring. Markets will be closed on Monday for Labor Day.

Stock trading has been erratic over the past few weeks as a six-month rally slowed on worries that the market's rise of more than 50 percent since March has been overdone.

The Dow rose 96.66, or 1 percent, to 9,441.27. The Standard & Poor's 500 index rose 13.16, or 1.3 percent, to 1,016.40, while the Nasdaq composite index added 35.58, or 1.8 percent, to 2,018.78.

About four stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to a low 4.1 billion shares, compared with 4.7 billion Thursday.

For the week, the Dow lost 103 points, or 1.1 percent. The S&P 500 index lost 1.2 percent and the Nasdaq slipped 0.5 percent.

Some analysts said the market overreacted to the jobs report. Dan Cook, senior market analyst at IG Markets in Chicago, said the economy isn't strong enough to support the market at its current levels.

"Employers are not going to be looking to add to staffs any time soon," Cook said.

Still, there were signs that investors were becoming less fearful after a four-day slide in stocks that ended Thursday. The losses included a 186-point plunge on Monday that came on worries about the health of banks and the overall economy.

Demand for the safety of government debt fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.45 percent from 3.35 percent late Thursday.

The Chicago Board Options Exchange's Volatility Index — known as the market's "fear index" — fell 6.8 percent to 25.3. It's down 36.9 percent in 2009 and its historical average is 18-20. It surged to a record 89.5 in October at the height of the financial crisis.

Analysts said a test of the market will come later in the month as traders return from vacation and raise more questions about whether investors have bet too soon the economy's ability to recover.

In downturns in the past 60 years, the S&P 500 index has reached a bottom an average of four months before a recession ended and about nine months before unemployment reached its peak. The index, which is the basis of many mutual funds, hit a 12-year low in March.

Some traders are also concerned about the market's track record for September, which has been the worst month for stocks over the past 80 years. Since 1929, the S&P 500 index has lost an average 1.3 percent during the month. But the index has gained about 2 percent in the 14 Septembers that followed the end of bear markets.

In other trading, the dollar was mixed against other major currencies, while gold prices retreated after hitting a six-month high of near $1,000.

Light, sweet crude rose 6 cents to settle at $68.02 a barrel on the New York Mercantile Exchange.

The Russell 2000 index of smaller companies rose 8.01, or 1.4 percent, to 570.50.

Overseas, Britain's FTSE 100 rose 1.2 percent, Germany's DAX index rose 1.6 percent, and France's CAC-40 added 1.3 percent. Japan's Nikkei stock average fell 0.3 percent.

Google Posts 26% Profit Increase For The Third Quarter

Showing its resilience in the midst of the economic turbulence, Internet giant Google Inc. posted a 26% profit increase and a 31% revenue jump for the third quarter. The reassuring performance, surpassing forecasts by analysts, lifted Google shares by more than 10% late Thursday.

$9 billion cash infusion for Morgan Stanley by Mitsubishi UFJ

• 
  

As a result of its talks with Mitsubishi UFJ Financial Group Inc. - about terms of the $9 billion cash infusion - the Wall Street firm, Morgan Stanley, registered a rise of in German trading. It went up 31% from its close.

The Morgan Stanley stock, which on October 10 sank 60% going down to a 13-year low, climbed to $12.69 at 11:05 a.m. in Frankfurt trading.

Intel reports record revenue and earnings in 3Q

• 
  

Intel Corp., the world’s largest chipmaker on Tuesday reported record revenue and earnings for the third quarter, saying that its profit during the quarter rose 12%, beating the estimates of the analysts.

In a statement, Paul Otellini, the CEO of the chip giant, said: “Intel delivered the best third-quarter revenue in its history,” and added: “We were solidly profitable.”

AIG’s Pay And Spending Under Scrutiny

In response to threat of legal action from New York Attorney General Andrew Cuomo, American International Group (AIG) said Thursday that it will institute reform on its spending practices, and curb millions of dollars of spending on junkets, perks and executive compensation.

NBC Universal’s $500-Million Spending Cuts

A worldwide economic slowdown has NBC Universal on a budget, with $500-million or about 3% of the company’s annual budget in spending cuts scheduled for next year.

Announcing the budget cuts, staff has been directed to reduce promotion expenses, discretionary spending i.e. travel and entertainment, outside consultants, staffing costs, etc.

The latest in expense cuts, there was a $750-million in expense cuts in 2006, including a reduced NBC Universal workforce after 700-jobs were axed.

Business News

In a strategic move to expand geographically and boost earnings and cash flow, Exelon Corp. made an announcement on Sunday, about its unsolicited offer to acquire NRG Energy Inc. in an all-stock transaction.

Exelon’s offer represents a total equity value of approximately $6.2 billion for NRG based on Exelon’s closing price on October 17.

With a fixed exchange ratio with a value of $26.43 for each NRG common share, the Exelon offer represents a 37 percent premium over NRG’s closing price of $19.33 a share on Friday.

Stock Markets

After belling the day on a strong note at 8,956.30, up 92.48 points, the Sensex keep on extending its gains on the back of steady buying in metal, banking and realty stocks.

Buying interest has emerged across the board with realty, metal and banking stocks leading the gains.

BSE Midcap and Smallcap index gained 2.63% and 2.16% respectively.

Tokyo stocks fall as yen rises on Fed's planned bond buys.

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Tokyo - Tokyo stocks rose upon opening Thursday after the Federal Reserve said it would buy more than 1 trillion dollars in bonds, but they ended the morning session lower as the US central bank's move caused the dollar to fall against the yen, hitting exporters' shares.

The benchmark Nikkei 225 Stock Average temporarily rose above 8,000 before falling 49.28 points, or 0.62 per cent, to 7,922.89.

The broader Topix index of all first-section issues also dropped 0.9 points, or 0.12 per cent, to 763.77.

Equities Open Positive; DLF, JP Asso, ICICI Bank Surge

Indian equities opened on a positive note on the back of optimistic global signals and Federal Reserve decision to buy up to $300 billion in long-term U.S. government bonds to boost the nation's economic system.

The stocks from consumer durables, banking and realty sectors were trading up with marginal gains.

Inflation numbers are set to release today.

BSE Midcap and Smallcap index gained 1.05% and 1.01% respectively.

Philippine shares rise 3 per cent

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Manila - Philippine shares rose 3.01 per cent Friday as investors hunted for bargains after days of lackluster trading.

The Philippine Stock Exchange's 30-share composite index rose 53.64 points to close at 1,833.90.

A total of 1.02 billion shares valued at 2.99 billion pesos (61.77 million dollars) were traded.

Gainers outpaced losers 64 to 19 with 41 issues unchanged.

On Monday, the market fell 4.65 per cent as investors stayed away from the local market amid persistent concerns over the global economic crisis. (dpa)

Sensex Opens On A Bleak Note; Banks, Realty Down

With a bleak opening, the BSE Sensex is likely to halt a two-day rise in today’s session.

Overnight losses in the US and mixed signals from the Asian markets hit the Indian equities at the opening time.

Realty stocks were hammered badly followed by banking and consumer goods.

BSE Midcap was also down by 0.24%, while Smallcap index lost 0.05%.

The 30-share index, BSE Sensex, today (Friday Mar 20) opened at 8,951.34, down 50.41 points.

Sensex Ends Below 9K Mark; Recovers From Intra-Day Lows

The Bombay Stock Exchange 30-share sensitive index, Sensex, closed below the 9000-level even as the market recovered from its intra-day lows on hopes that the central bank will provide more relaxation in the monetary plan.

The BSE Sensex marked its closure at 8966.68 after losing 35.07 points as against its last close on Thursday.

The market also hit a low of 8867.13 on the back of mixed movements in worldwide markets.

Sensex Ends Below 9K Mark; Recovers From Intra-Day Lows

The Bombay Stock Exchange 30-share sensitive index, Sensex, closed below the 9000-level even as the market recovered from its intra-day lows on hopes that the central bank will provide more relaxation in the monetary plan.

The BSE Sensex marked its closure at 8966.68 after losing 35.07 points as against its last close on Thursday.

The market also hit a low of 8867.13 on the back of mixed movements in worldwide markets.

SEBI panel for relaxed norms for derivative market

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Market regulator Security and Exchange Board of India plans to introduce new derivative products like lower-value contracts on individual stocks in the domestic derivative market in a bid to encourage retail investors in the option and future market.

Tokyo's markets trend upwards

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Tokyo - Tokyo stocks rose upon market opening Monday on anticipation of good news from Washington later Monday this week on more details of the financial bailout plan.

The benchmark Nikkei 225 Stock Average rose in the first 15 minutes by 58.34 points or 0.73 per cent to 8,004.30 points.

The broader Topix index of all first-section issues added 6.13 points or 0.8 per cent to 770.90 points.

Markets were closed Friday for a holiday.

On currency markets, the dollar remained stable at 95.93-98 yen after trading at 95.91-96.01 yen late Friday in New York.

Good day for Australian stocks

Sydney - Australian stocks advanced strongly Monday as optimistic investors ignored a slide in the last trading session on Wall Street.

The ASX 200 put on 84 points, or 2.4 per cent, to 3,550 in a broad based rally.

The Australian dollar also won favour, rising to its highest level against the US dollar in three months. (dpa)

Shares surge 2.4 per cent in Seoul

Seoul - Shares climbed 2.4 per cent Monday on the Seoul stock exchange on eased concerns over the economy. South Korea's currency surged to a one month-high against the dollar.

The benchmark Kospi index advanced 28.56 points to close at 1,199.50, up 2.44 per cent. Advancing stocks outpaced losers 656 to 168.

The main index of the technology-heavy Kosdaq market increased 8.52 points, or 2.13 per cent, to 409.23.

On currency markets, the US dollar was quoted at 1,391.60 Korean won, after 1,412.50 won last Friday. (dpa)

Taiwan stocks rise 3.28 per cent on tech rally

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Taipei - Taiwan stocks rose 3.28 per cent Monday to a five-month closing high, bolstered by the technology sector, dealers said.

The main TAIEX share index opened higher and continued its upward trend to close at 5,124.18 points, up 162.56 points, or 3.28 per cent from Friday's trade, a closing level not seen since October 15.

Fuelled by expectation of more export orders for Taiwan Semiconductor Manufacturing Corp and United Microelectronics Corp, two of the world's leading contract chip makers, the technology sub-index rose sharply higher, dealers said.

US stocks surge on plan for toxic assets

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New York - US stocks staged the biggest rally since November after the US government unveiled the details of a long-awaited plan to take toxic mortgage assets off the balance sheets of US banks.

Treasury Secretary Timothy Geithner put forward a 1-trillion- dollar public-private partnership that the administration hopes will go a long way to stabilize the crumbling US financial system.

The Dow Jones Industrial Average posted its fifth-largest points gain in history, and US financial firms gained 18 per cent on the announcement.

Tokyo markets up on US Treasury plan

Tokyo - Tokyo stocks on Tuesday continued their upwards trend from the beginning of the week, pushed up by plans of the US Treasury to remove toxic assets from banks.

The benchmark Nikkei 225 Stock Average climbed by 2.07 per cent, or 170.35 points to 8,385.88 by mid-trading.

The broader Topix index of all first-section issues added 14.74 points, or 1.86 per cent, to 806.3.

On currency markets at midday (0000 GMT), the dollar was stronger at 97.10-15 yen, after trading at 95.97-96.00 yen late Monday in New York.

Philippine shares up for second straight day on US plan

Manila - Philippine share prices rose 2.05 per cent for the second straight day Tuesday on hopes that a US plan to rid banks of toxic assets would put financial markets on the road to recovery.

The Philippine Stock Exchange's 30-share composite index gained 38.60 points to close at 1,917.69, from Monday's finish of 1,879.09.

A total of 2.633 billion shares worth 3.636 billion pesos (75 million dollars) were traded.

Gainers swamped losers 76 to 16, while 47 issues were unchanged.

Roller-coaster ride for Australian stocks

Sydney - Australian stocks took their cue from Wall Street in early trading Tuesday with a 2-per-cent surge at the opening bell.

But the rally was not maintained and the ASX 200 ended the day 28 points, or 0.8 per cent, higher at 3,579.

The Australian dollar also added value, punching above 70 US cents.

Wall Street rocketed 7 per cent on Monday in response to the US government's plan to help banks remove bad assets from their books and a report showing a surprising increase in home sales. (dpa)

US stocks drop on bank takeover talk after best rally of the year

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New York - US stocks fell sharply on Tuesday, one day after posting their biggest gains of the year, as the US administration sought new powers to control failing financial firms.

Banking shares, which gained some 18 per cent on Monday, led the market decline amid speculation that Congress will no longer back more money for struggling Wall Street institutions.

Tokyo stocks fall on profit taking.

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Tokyo - Tokyo stocks fell in early trading on Wednesday on profit-taking, breaking a two-day climb.

The benchmark Nikkei 225 Stock Average dipped by 0.73 per cent, or 61.58 points to 8,426.72 by mid-trading, reversing earlier gains.

The broader Topix index of all first-section issues was almost flat, dropping 0.27 points, or 0.03 per cent, to 812.45.

Traders also reacted to reports that Japan's overseas exports dropped by 49.4 per cent in February year-on-year, with consumer electronics titles contributing most to the slump.

Stock Exchange

A stock exchange, securities exchange or (in Europe) bourse is a Corporation or mutual organisation which provides "trading" facilities for stock brokers and traders, to trade stocks and other Securities. Stock exchanges also provide facilities for the issue and redemption of securities as well as other financial instruments and capital events including the payment of income and dividends. The securities traded on a stock exchange include: shares issued by companies, unit trusts and other pooled investment products and bonds. To be able to trade a security on a certain stock exchange, it has to be listed there. Usually there is a central location at least for recordkeeping, but trade is less and less linked to such a physical place, as modern markets are elerctronic workers, which gives them advantages of speed and cost of transactions. Trade on an exchange is by members only. The initial offering of stocks and bonds to investors is by definition done in the primary market and subsequent trading is done in the secondary market. A stock exchange is often the most important component of a Stoc. Supply and demand in stock markets is driven by various factors which, as in all free markets, affect the price of stocks.