Monday, September 25th, 2006
Japanese stocks have fallen due to concern about the economy in Japan and United States. Growth in both economies has slowed causing a drop in earnings. Investors are uncertain about the economy and are waiting for better news to appear.
Banks including Mitsubishi UFJ Financial Group Inc. dropped on concern their profits will be hurt by an economic slowdown.
The Topix fell 3.82, or 0.2 percent, to 1559.78 at the 3 p.m. close in Tokyo, its lowest since Aug. 7. The Nikkei 225 Stock Average slipped 0.86 point to 15,644.81 after earlier gaining as much as 0.4 percent.
Komatsu, the world’s second-largest maker of construction machinery, slumped 67 yen, or 3.4 percent, to 1,933. THK Co., a maker of parts that allow machines such as automatic doors to move, lost 70 yen, or 2.7 percent, to 2,520. Nomura Holdings Inc., Japan’s largest brokerage, declined 30 yen, or 1.5 percent, to 2,040.
Source : BloomBerg
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Monday, September 18th, 2006
European stocks opened stable on Monday. The UK FTSE 100 index added 0.1%, Germany’s DAX remained at the same points, The CAC-40 of France added 0.1% to it’s score. Wall Street ended with a small increase last week, the European stock exchanged responded positively.
Oil giant BP rose 0.7% after a report on the Web Site of the Financial Times newspaper said that the company is set to launch a root and branch review of its global operations in response to last year’s Texas City refinery blast, in which 15 people died.
Turning to the auto sector, DaimlerChrysler continued to add to Friday’s losses, which were prompted by the company lowering its operating profit guidance for 2006. M&A activity was also a focus in the sector after German truck maker Man AG said that it’s made a 9.6 billion euro ($12.2 billion) offer for Swedish counterpart Scania , a move Scania promptly rejected.
Man shares lost 2.6%, while Scania rose 5.5%.Scania said that, after meeting with its advisers, its board unanimously decided not to support the proposals. Man said that its offer values Scania at 48 euros a share and will be made in a mixture of cash and shares. Man expects to issue up to 2 billion euros of new equity to fund the deal.Also, shares in French car maker PSA Peugeot Citroen dipped 0.6% after it said that it has signed a letter of intent with Proton to consider possible co-operation between the companies.
Source : MarketWatch
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Tuesday, September 12th, 2006
The US justice department has joined an investigation into alleged illegal activities by Hewlett-Packard. A house committee and the FBI are also looking into the case. The probe is centered around an internal investigation into “pretexting”, in which a person’s private phone records are retrieved by someone pretending to be that person.
The Palo Alto, Calif., computer and printer maker has disclosed that it hired a private-investigation firm to carry out the inquiry and the firm, still unidentified, hired a second firm that used pretexting to obtain phone records. Ms. Dunn has said she knew directors’ phone records were being scrutinized, but didn’t realize those records had been obtained improperly.
According to two people close to H-P, one reason for the board’s adjournment Sunday was discussion about whether former director Thomas Perkins should be asked to rejoin the board. Mr. Perkins resigned last spring to protest the investigation of the leaks. Since then, the wealthy venture capitalist has suggested that directors remove Ms. Dunn as chairman and put him back on the board, according to these people familiar with the situation.
Source : MoneyWeb
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Sunday, September 10th, 2006
Investment and production growth in China decreased slightly last month. According to top Chinese officials this is a sign that their efforts to “cool down” the economy are showing their first results. The Chinese economy has been growing at over 9% a year in the last few years.
China’s investment and production grew at a slower pace last month while inflation remained stable, Premier Wen Jiabao said, suggesting government measures are effective in cooling the fastest expansion in more than a decade.
“In August, industrial value-added and fixed-asset investment both showed a stable decline” in growth rates, Wen told reporters in Helsinki where he is meeting European Union officials. “The consumer price index was kept at a low level. Our overall economic strategy and policy have shown results,” he said without giving detailed figures.
The World Bank warned last month that failure to control investment could leave the world’s biggest maker of steel and mobile phones with overcapacity and rising bad loans. Vice Premier Zeng Peiyan said in Beijing today the government will continue to curb excessive spending on factories and real estate.
Source : BloomBerg
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Tuesday, September 5th, 2006
Oil prices fell to 68.64 USD, even with the uncertainty in the Middle East and Africa. Oil prices have been at record prices lately due to increased demand from expanding economies like China and India. Iran’s refusal to cease uranium enrichment also brings uncertainty to oil markets and has contributed to higher oil prices.
Oil prices dropped below $69 US a barrel yesterday, falling below 10-week lows despite continued jitters over the standoff between Iran and the international community over Tehran’s nuclear program.
The crude contract began its decline Friday after the United Nations failed to impose sanctions on Iran for refusing to stop its nuclear enrichment program. Also easing energy prices were strong inventory data, a more-subdued forecast for this year’s hurricane season and a mixed U.S. jobs report — suggesting fuel demand probably won’t surge sharply
Source : London Free Press
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