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Ft.com
German and UK bond yields fell to fresh all-time lows on Wednesday as investors rushed to the havens because of growing uncertainty surrounding Greece and the eurozone. German 10-year bond yields dropped to 1.49 per cent, while UK long-term debt costs dropped to 1.88 per cent the lowest level for benchmark bonds since the Bank of England started collecting data in 1703. The US also sold bonds at record low yields for an auction, raising $24bn in 10-year bonds at 1.85 per cent. US Treasury 10-year yields also fell to fresh three-month lows of 1.79 per cent in the secondary market.http://www.ft.com/intl/cms/s/0/0024dd10-99b2-11e1-8fce-00144feabdc0.html#axzz1uRIhjfRJ

For all the fast-moving headlines on the eurozone crisis, tumbleweed is blowing across the world’s largest financial market. Investors and dealers have shied away from foreign exchange trading this year amid frustration at the strength of the euro. Investment bankers have been praying for more activity. Yet volatility among the world’s most widely traded currencies dipped in April to its lowest since 2007, according to an index constructed by JPMorgan, the VXY for G7 currencies. For speculators and investors who rely on swings in exchange rates to place momentum trades that profit when currencies are moving in a particular direction, this dwindling volatility has been bad news. Moneymaking strategies have become more difficult to execute. “I can’t remember a time when I’ve seen less interest in foreign exchange from hedge funds and real money investors,” says Jeff Feig, global head of G10 FX at Citigroup in New York. http://www.ft.com/intl/cms/s/0/64955ca2-99f3-11e1-accb-00144feabdc0.html#axzz1uRIhjfRJ

Fannie Mae will not need funds from the US Treasury for the first quarter since its 2008 bailout, stoking hopes of an end to the property market downturn. The agency, the largest provider of mortgage credit in the US, reported a $3.1bn profit in the first quarter, more than offsetting its required $2.8bn dividend payment to taxpayers as a result of its rescue. Fannie Mae owes the Treasury more than $117bn.http://www.ft.com/intl/cms/s/0/c82c0644-99f3-11e1-accb-00144feabdc0.html#axzz1uRIhjfRJ

The Bundesbank, the most hawkish of central banks, has signalled it would accept higher inflation in Germany as part of an economic rebalancing in the eurozone that would boost the international competitiveness of countries worst-hit by the region’s debt crisis. A future German inflation rate above the eurozone average could be part of a natural adjustment process as crisis-hit countries pulled themselves out of recession, the Bundesbank argued in evidence to German parliamentarians submitted on Wednesday. http://www.ft.com/intl/cms/s/0/54fa4006-99ed-11e1-accb-00144feabdc0.html#axzz1uRIhjfRJ

Spain has taken a 45 per cent stake in Bankia, the country’s third-largest bank by assets, as worries over the financial system sent equity and bond markets falling on Wednesday.  The Bank of Spain said Bankia and BFA, its parent company, had informed it that the conversion of €4.47bn of state aid in the bank into ordinary shares was “the most advisable option for strengthening the [bank’s] financial soundness”. As a result of the conversion the Frob, Spain’s bank bailout fund, will hold the 45 per cent stake in Bankia. http://www.ft.com/intl/cms/s/0/29595d88-99e8-11e1-accb-00144feabdc0.html#axzz1uRIhjfRJ

Thetrader.se
The European Parliament decided to cancel travel plans for the Members of the European Parliament that were going to participate in Rio+20, due to high travel expenses. The decision was made by the coordinators of the European Environment Commission, who explained that the cost of sending deputies to Brazil would be too high, and unjustifiable in a time of crisis. On Twitter, the Dutch MEP Gerben Jen Gerbrandy criticized the “abusive” prices set by the hotel industry in Rio. “The European Parliament is cancelling its delegation to Rio+20 because of the excessive cost. Brazil should control the prices in order to keep the conference from being a failure,” said Gerbrandy.http://www.thetrader.se/2012/05/09/european-parliament-cancels-presence-at-summit-expensive-hotels/

Wsj.com
Most Asian markets were little changed Thursday with fresh worries resurfacing over Greece and Spain’s finances, while Japanese auto maker Toyota rose after the release of a healthy profit guidance. The Nikkei fell early to below 9000 for the first time since February, before moving up to trade 0.2% higher at 9064.94. South Korea’s Kospi was lower as well, slipping 0.2%, but Australia’s S&P ASX 200 recovered slightly to gain 0.2% as the Australian dollar fell to its lowest level in five months as risk aversion spurred investors to move away from higher-yielding currencies. Singapore’s Straits Times Index was flat. The Hang Seng Index was little changed, up 0.1%, while shares on the Chinese mainland were also up slightly, with the China Shanghai SE Composite climbing 0.2% ahead of trade data to be released later in the day. The Dow Jones Industrial Average dropped 0.8%, its sixth consecutive session fall. http://online.wsj.com/article/SB10001424052702304203604577394893416812270.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Two years after Europe bailed Greece out to protect the euro, the rescue has become a debacle that threatens to unravel the common currency.  After Greece’s May 6 elections left pro-bailout parties too weakened to govern the country, more elections are likely in June, with no guarantee a stable government will emerge. By next month, Athens must identify €11.5 billion, or $15 billion, in fresh spending cuts or face suspension of the international loans it needs to pay pensions and run schools. If it doesn’t get the money, it would eventually have to print its own. Greece’s growing turmoil is the culmination of a radical austerity experiment and botched economic overhaul that have pushed the nation to the brink of social and political breakdown. The story of the ill-fated bailout suggests that forcing deep austerity on individual member states won’t save the euro and may worsen its crisis. http://online.wsj.com/article/SB10001424052702304203604577393964198652568.html?mod=WSJEurope_hpp_LEFTTopStories

Euro-zone governments held back part of a big scheduled loan payment in a warning shot to Greece Wednesday, as outside pressure mounted on the country’s politicians to pull together a pro-euro coalition to take charge of the government. Greece’s euro-zone partners agreed to release only €4.2 billion ($5.5 billion) in previously agreed financing, to be paid out Thursday, holding back €1 billion at least until June. That would be paid only if Greece keeps to pledges it made to secure a bailout. http://online.wsj.com/article/SB10001424052702304070304577393604233164954.html?mod=WSJEurope_hpp_LEFTTopStories

Euro-zone governments are expected to give Spain more leeway to meet its budget-deficit target next year, according to officials involved in the discussions, in a sign they intend to shift away from rigid enforcement of the currency bloc’s budget rules. Austerity will still be the guiding principle of European fiscal policies. But the likely Spanish move suggests the rules will be adjusted in some cases to account for the fact that when economies go into recession, their budget deficits usually grow. http://online.wsj.com/article/SB10001424052702304543904577394381158093936.html?mod=WSJEurope_hpp_LEFTTopStories

President Barack Obama said Wednesday he supported gay marriage, reversing his position on a controversial social issue just six months before the November election and adopting a stance fraught with uncertain political implications.  Mr. Obama had been under intense pressure this week to lay out a clear stance on same-sex marriage after Vice President Joe Biden and other top advisers endorsed it. Mr. Obama said that after years of lengthy discussions with friends and family, including his wife and two young daughters, he now “personally” believes gays and lesbians should have the right to marry.http://online.wsj.com/article/SB10001424052702304070304577394332545729926.html?mod=WSJEUROPE_hpp_MIDDLETopNews

Giant banks owned by the Chinese government are coming to the U.S. The Federal Reserve on Wednesday approved plans by three state-backed Chinese banks to expand in the U.S., including the first acquisition of a U.S. retail-banking network by a state-owned Chinese lender. The approval is a landmark step for U.S. banking regulators. Chinese banks long have sought access to the U.S. banking system in order to provide financing to Chinese companies operating overseas and to do business with foreign investors looking for exposure to the Chinese currency, the yuan. But they have been stymied in previous attempts by assorted delays and rejections. http://online.wsj.com/article/SB10001424052702304543904577394533978464876.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Iceland, a small country on Europe’s periphery that received an international bailout, has something others in that category don’t: access to international bond markets. The country sold a $1 billion bond last week to mainly U.S.-based investors. That Iceland is able to successfully issue its own sovereign bond is a sign that the country is now on the road to recovery even as the European sovereign-debt crisis keeps other peripheral countries like Ireland and Portugal locked out of international markets. http://online.wsj.com/article/SB10001424052702304203604577393834251280086.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Marketwatch.com
Chinese trade data showed a sharp drop in activity in April, with both export and import growth falling well short of expectations, raising fresh concerns about the resilience of the Chinese economy amid softening global demand. Exports rose 4.9% in April from a year earlier, while imports rose just 0.3%, data released by China’s General Administration of Customs. showed. The results were far below economists’ expectations. A Reuters survey had tipped 11% growth for imports, while a Dow Jones Newswires survey had predicted a 10% rise. For exports, both news services’ surveys had projected an 8.5% gain. China’s trade surplus for April widened to $18.4 billion, up from $5.4 billion in March, exceeding expectations of $10.4 billion in the two surveys. http://www.marketwatch.com/story/china-trade-data-show-surprising-weakness-2012-05-09

Australia’s unemployment rate unexpectedly fell in April, with the data likely affirming to investors that the economy is relatively robust and throwing into question the path of future interest-rate policy. The jobless rate reached 4.9% in April, down from 5.2% in March, the Australian Bureau of Statistics reported Thursday. Economists had been expecting the unemployment rate to rise to 5.3%, according to estimates compiled by Dow Jones Newswires.  The number of employed rose 15,500 to 11.5 million, driven by an increase in part-time employment, which rose 26,000 to 3.44 million. That was offset by a decrease in full-time employment, which fell 10,500 to 8.1 million. The number of unemployed decreased by 28,800 to 598,200. http://www.marketwatch.com/story/australia-posts-unexpectedly-strong-jobs-data-2012-05-09

The Bank of Korea held its policy interest rate at 3.25% Thursday as expected, with the South Korean central bank citing economic growth concerns and risks to the inflation outlook. The monetary policy statement accompanying the decision said the Bank of Korea would focus on stabilizing consumer price inflation, which despite slowing in April, faces risks from high inflation expectations and Mideast turmoil that could drive oil higher. It also said that South Korea’s economic recovery has “faltered, with consumption and investment decreasing while exports maintain generally sound levels.”http://www.marketwatch.com/story/korea-holds-rates-steady-citing-inflation-risks-2012-05-09

Reuters.com
Russian President Vladimir Putin has pulled out of this month’s Group of Eight summit in Maryland and will send Prime Minister Dmitry Medvedev in his place, the White House said on Wednesday. Putin, who took the oath as Russia’s president on Monday, informed President Barack Obama of his decision during a telephone call, citing the need to stay in Moscow to finalize appointments to his cabinet. Instead, the two leaders agreed to meet in Mexico in June. The May 18-19 gathering of the G8 at Camp David, the rustic presidential retreat in the Maryland countryside north of Washington, had been seen as an excellent chance for Obama and Putin to get to know each other. http://www.reuters.com/article/2012/05/10/us-usa-russia-idUSBRE8481IT20120510

Spot gold was little changed at $1,591.19 an ounce, but off a four-month low of $1,579.30 hit in the previous session. U.S. gold edged down 0.2 percent to $1,591.50. The Relative Strength Index (RSI) on spot gold hovered just above 30, a threshold below which the underlying asset is seen to be oversold. Gold, though traditionally seen as a safe haven, fell victim to a wave of sell-offs across risk assets, as the political turmoil in Greece threatens insolvency and a exit from the euro just months after Athens secured the latest round of bailout from international lenders. http://www.reuters.com/article/2012/05/10/us-markets-precious-idUSBRE8390RW20120510

Brent crude slipped below $113 on Thursday, after weaker-than-expected Chinese trade data that raised concerns over energy demand at the world’s second-largest oil consumer. Brent crude lost 55 cents to $112.65 a barrel by 23:40 EDT (0340 GMT), after settling at $113.20 on Wednesday, up 47 cents. U.S. crude fell 43 cents to $96.38. http://www.reuters.com/article/2012/05/10/us-markets-oil-idUSBRE83H17O20120510

Bloomberg.com
China
Investment Corp., the nation’s sovereign wealth fund, said it has stopped buying European government debt because of an economic crisis on the continent, though it continues to look for new investments there. “What is happening in Europe right now is of course of concern,” CIC President Gao Xiqing said yesterday in an interview in Addis Ababa, Ethiopia, during the World Economic Forum on Africa. “We still have our people looking at opportunities in Europe, even though we don’t want to buy any government bonds.”  CIC, with $410 billion in assets at the end of 2010, has been cautious on Europe as leaders there struggle to contain a debt crisis that is in its third year and led to bailouts of Greece, Portugal and Ireland. Executive Vice President Jesse Wang said in March that CIC won’t participate in efforts led by the Chinese government to help Europe resolve its debt crisis. http://www.bloomberg.com/news/2012-05-09/china-investment-stops-buying-europe-debt-on-crisis-concern-1-.html

The 17-nation euro area is on the verge of losing one of its members, with more than 50 percent of investors predicting an exit this year as Greece’s election impasse threatens to push the debt crisis to new depths, according to the Bloomberg Global Poll. As Greece faces political paralysis and voters balk at austerity, 57 percent of the 1,253 investors, analysts and traders who are Bloomberg subscribers said at least one country will abandon the euro by year-end and 80 percent expected more pain for Europe’s bond markets. With a majority identifying a deterioration in Europe as a large threat to the world economy, respondents to the May 8 survey were increasingly worried Spain will default and less willing to buy French debt as Francois Hollande takes power. http://www.bloomberg.com/news/2012-05-10/euro-global-poll-shows-more-than-50-predicting-an-exit.html

U.S. auto sales are on pace for the best showing since 2007 and a third straight year of at least 10 percent gains, only the fourth such streak since the Great Depression, as more-confident buyers return to showrooms. Automakers are adding overnight shifts and cutting workers’ vacations to meet demand. Sales this year may reach 14.3 million cars and light trucks, equal to the first-quarter pace, according to estimates from 14 analysts compiled by Bloomberg. It would be the best full year since 16.1 million in 2007. The same analysts in January were expecting sales this year of 13.6 million before Toyota Motor Corp. (7203) and others exceeded projections. “Even if we stay where we are, it’s a pretty good year,” said Brian Johnson, an industry analyst at Barclays Capital in Chicago, who is predicting full-year U.S. sales of 14.4 million. http://www.bloomberg.com/news/2012-05-10/auto-sales-rise-puts-u-s-on-pace-to-best-year-since-2007.html

Cnbc.com
There is more opportunity for Ford Motor to grow its market share in India than in China, as it faces less competition there than in the mainland, according to Joe Hinrichs, Asia Pacific and Africa President at the automaker.  “There are so many brands in China, 90 by some counts. Because there are less competitors, we could do a little bit better from a market share standpoint in India,” Hinrichs told CNBC’s Christine Tan on “Managing Asia“. Ford currently has an approximately 3 percent market share in India. “Maruti Suzuki is the dominant player in India because it has 47 percent of the share. But we like where we’re going, we have been growing our share (over) last couple of years. We have new capacity, new products coming and we’re investing in India for the long-term,” he said.http://www.cnbc.com/id/47350696

Foxbusiness.com
Japan’s trade balance for March shrank more than 98% from a year earlier to total 4.2 billion yen ($52.7 million), narrowing sharply from 102.1 billion in February, the Ministry of Finance reported. The smaller surplus came as exports rose 7.3% and imports gained 11.9%, sending the broader current-account surplus to 1.589 trillion, wider than the 1.179 trillion surplus in February, and above expectations for a 1.421 trillion surplus from a Dow Jones Newswires survey of economists. http://www.foxbusiness.com/markets/2012/05/09/japan-trade-surplus-narrows-current-account-beats/#ixzz1uRNAmRik

U.S. wholesale inventories rose 0.3% in March to $480.4 billion, while wholesale sales rose 0.5% to $411.1 billion, the Commerce Department reported Wednesday. The inventories-to-sales ratio was unchanged at 1.17. Inventories of durable goods rose 1% in March, while inventories of nondurables decreased 0.6%. In February, total inventories grew 0.9%, while sales rose 1.1%.http://www.foxbusiness.com/markets/2012/05/09/us-wholesale-inventories-rise-03-in-march/#ixzz1uRNGZoVS

USAtoday.com
The nation has fewer homes for sale, and that’s helping prices in markets where low supplies are meeting strong demand. The U.S. had 2.37 million existing homes for sale at the end of March. That was down 22% from a year ago and 41% from the peak in mid-2007, the National Association of Realtors reported Wednesday. First-quarter home sales, meanwhile, were up 5.3% from a year ago.http://www.usatoday.com/money/economy/housing/story/2012-05-09/fewer-homes-for-sale/54864876/1

Washingtonpost.com
U.S. auto sales are on pace for the best showing since 2007 and a third straight year of at least 10 percent gains, only the fourth such streak since the Great Depression, as more-confident buyers return to showrooms. Automakers are adding overnight shifts and cutting workers’ vacations to meet demand. Sales this year may reach 14.3 million cars and light trucks, equal to the first-quarter pace, according to estimates from 14 analysts compiled by Bloomberg. It would be the best full year since 16.1 million in 2007. The same analysts in January were expecting sales this year of 13.6 million before Toyota Motor Corp. and others exceeded projections. “Even if we stay where we are, it’s a pretty good year,” said Brian Johnson, an industry analyst at Barclays Capital in Chicago, who is predicting full-year U.S. sales of 14.4 million. http://washpost.bloomberg.com/story?docId=1376-M3RPER07SXKX01-65KPRBO8KQHV4FIE2E7GL8MPN4

Telegraph.co.uk
Ministers in Berlin warned that they would withhold international aid to Greece in a move which could trigger a fresh, damaging countdown to default in Athens. Amid escalating anger in Berlin over the anti-euro backlash following elections in Athens, Greece will on Thursday receive a €4.2bn (£3.4bn) cash injection as part of its €130bn March bail-out. The eurozone has blocked a further €1bn amid uncertainty over the country’s political future. Athens, where the leader of the newly powerful Syriza party has vowed to reject the bail-out, is due to repay a €3.3bn bond next Friday. But Germany’s foreign minister Guido Westerwelle said Greece must “recognize what’s going to happen if it repeals agreements that have been made”. http://www.telegraph.co.uk/finance/financialcrisis/9255637/Germany-warns-Greece-it-will-halt-aid-unless-it-commits-to-bailout-agreements.html

Retail and investment banks will be split, employment tribunals curbed and executive pay tackled by new legislation revealed in a Queen’s Speech designed to “restore economic stability”. The Coalition said it planned to forge ahead with economic and financial reforms this Parliament, although business leaders said ministers still weren’t moving fast enough. John Longworth, director-general of the British Chambers of Commerce, said the Government “could have been bolder”. “The Banking Reform Bill does not include a fully-fledged British business bank, which we believe is necessary to address the finance gap facing many companies,” he said. “Ministers are wasting parliamentary time on House of Lords reform and other politically-motivated measures, rather than on more support for growth and jobs.”http://www.telegraph.co.uk/finance/economics/9255136/Queens-Speech-2012-Coalition-sets-sights-on-restoring-economic-stability.html

The Bank of England is expected to call time on the latest round of quantitative easing on Thursday following signs that inflation is proving more “sticky” than expected. The second round of QE has been completed and on Thursday the Bank has to decide whether to extend it again or to leave the total £325bn programme unchanged. Most economists reckon the Bank will keep its powder dry after inflation surprisingly rose in March to 3.5pc, making it less likely that the consumer price index will drop back to the 2pc target this year. http://www.telegraph.co.uk/finance/economics/9254775/Bank-of-Englands-MPC-set-to-resist-more-QE-amid-sticky-inflation.html

Almost one in three City jobs has been shed since the recession, with London now “weaker” than at any stage during the financial crisis, according to a new analysis. The Centre for Economics and Business Research (CEBR) said City roles were down by almost 100,000 since the recession. The impact of the continued Euro crisis on banks is likely to cost at least another 30,000 jobs this year, causing the think tank to cut its forecast for the total number of finance roles to an average of 255,000 this year – a 16-year low. This is down from the 354,000 recorded in 2007 – a 28pc fall – and well below the think tank’s earlier estimate of 288,000, made six months ago. http://www.telegraph.co.uk/finance/jobs/9252631/One-in-three-City-jobs-axed-since-recession-says-CEBR.html

Xinhuanet.com
Global investors give Federal Reserve Chairman Ben S. Bernanke his highest approval rating since 2009 and expect him to take further action this year to accelerate a revival in the U.S. economy and financial markets. Bernanke, whom Republican presidential candidate Mitt Romney said he wouldn’t reappoint for running too lax a monetary policy, receives a favorable assessment from three of four of those surveyed in the latest Bloomberg Global Poll. Respondents to the survey of investors, analysts and traders who are Bloomberg subscribers also rate U.S. financial markets highly: 46 percent say they will be among the best performers over the next year, double the percentage that select China, in second place. http://www.cs.com.cn/english/ei/201205/t20120510_3345793.html

China will lower the per-tonne retail prices of gasoline and diesel by 330 yuan (52.38 U.S. dollars) and 310 yuan, respectively, from Thursday, the National Development and Reform Commission (NDRC) announced Wednesday. The adjustments will lower the benchmark retail price of gasoline by 0.24 yuan per liter and diesel by 0.26 yuan per liter, the NDRC said in a statement on its website. The move, which marks the first cut since October last year, was made in response to lower crude prices on the global market. Crude prices kept falling as a weak economic outlook for the eurozone and the United States sparked fears of decline in global oil demand. http://www.cs.com.cn/english/ei/201205/t20120510_3345792.html

Chinese Minister of Finance Xie Xuren on Wednesday warned of uncertainties and instability in the world economy that will create many difficulties and challenges for China’s economic development and social governance. In a statement on the ministry’s website, Xie noted that it is more pressing and more difficult to solve structural problems that are making China’s development unbalanced, uncoordinated and unsustainable. “New problems have emerged in our economy, as long-term and short-term issues are interwoven while domestic and international complexities are interconnected,” he said, without giving further details. Xie said the challenges require policymakers to be more skilled in implementing economic macro-control policies. http://www.cs.com.cn/english/ei/201205/t20120510_3345788.html

More than 60% of property companies see lower profits or losses. Listed property developers’ first-quarter reports have been coming in, and they’re full of gloom: More than 60% of those whose shares trade on the A-share market reported lower profits or losses. According to an index tracking 149 A-share developers, compiled by Shenyin & Wanguo Securities Co, their sales edged up just 0.18% to an aggregate 71.7 billion yuan ($11.4 billion), while their earnings fell 3.13% to 9.4 billion yuan. Among the total, 41 property companies reported first-quarter losses.http://www.cs.com.cn/english/ei/201205/t20120509_3344219.html

Thehindu.com
The Parliament’s Standing Committee on Finance has recommended that the Securities and Exchange Board of India and the Reserve Bank of India set up a co-ordination mechanism to monitor funds flow in the stock market.  This recommendation is a part of the Committee’s report on ‘The Prevention of Money Laundering (Amendment) Bill, 2011?. The report was submitted on Wednesday. Now, the Government will consider all the suggestions before bringing the Bill for consideration and passage in Parliament. While noting that Participatory Notes (PNs) were being issued by regulated entities, the Committee said it was surprised to learn that “other investments, including foreign currency flows by both individual and institutional investors, are not being monitored by SEBI.”http://www.thehindubusinessline.com/markets/stock-markets/article3400583.ece?homepage=true

Twenty top Indian companies together hold assets worth $80 billion (about Rs.4 lakh-crore) abroad with the top five among them holding a major share of $50 billion. Reliance Industries, Tata Group, Hindaclo, Infosys and Wipro figure among the top five transnational companies (TNCs) along with the public sector oil major Oil and Natural Gas Corporation. The total foreign revenues of these 20 companies are estimated at $126 billion with top five contributing 69 per cent of the total. Four of the top five companies belong to the manufacturing sector while four domestic IT majors Tata Consultancy Services, Infosys, Wipro and HCL Technologies are present in the list of top 20 firms. The figures form part of the first-of-its-kind Transnationality Index (TNI) prepared by the Indian School of Business (ISB) in association with its Brazilian counterpart Fundacao Dom Cabral. http://www.thehindu.com/business/article3401351.ece

Economictimes.com
The Indian rupee fell the most since December to a new closing low on Wednesday, while currency strategists forecast more pain as central bank intervention remains limited and inflows dry up. The rupee may touch a new low of 57 to the US dollar in the next three months, one of the 10 forecasts polled by ET predicted. Most others remain conservative with a forecast between 52 and 55 to the US dollar. The currency fell 1.3% to 53.85, a closing level last seen in December. Its all-time low is 54.30 on December 15. The rupee, which has fallen 7.2% since the Budget, now stands out as a weak currency when compared with its peers such as Chinese Yuan, Brazilian Real and South African Rand. All these currencies have appreciated this year, thanks to current account surpluses and relatively steady economic fundamentals.http://economictimes.indiatimes.com/markets/forex/any-hope-for-re-poll-says-it-may-sink-to-57/articleshow/13072361.cms
Yonhapnews.co.kr
South Korea, China and Japan need to push for trilateral cooperation in order to promote regional integration and contribute to global economic growth, a Chinese government white paper said Thursday. “Further advancing trilateral cooperation not only contributes to the development of the three countries, but also helps promote East Asian integration and drives global economic growth,” said the white paper titled “China-Japan-South Korea Cooperation 1999-2012.” It was issued by the Chinese Foreign Ministry ahead of the Fifth Trilateral Summit Meeting between South Korea, China and Japan. China is to host this year’s summit meeting from Sunday to Monday in Beijing. http://english.yonhapnews.co.kr/business/2012/05/10/16/0503000000AEN20120510003200320F.HTML
Tehrantimes.com
MP Gholam-Reza Mesbahi-Moghaddam says now that Iran is entering the second stage of the subsidy reform plan, the most appropriate price for a liter of petrol is 10,000 rials (about 82 U.S. cents). Currently gasoline is sold at two prices: a 50-liter monthly allowance at 4000 rials (33 cents) per liter, and any amount above that at 7000 rials (57 cents) per liter. Mesbahi-Moghaddam, who is the chairman of the Majlis Economic Reform Committee, told the Mehr News Agency that since the subsidy reform plan must be implemented over a five-year period, 10,000 rials per liter is the best price for gasoline, which is now sold at 7000 rials per liter. He also suggested that the monthly allowance price of 4000 rials per liter be increased to 7000 rials per liter http://www.tehrantimes.com/politics/97711-10000-rials-per-liter-is-best-price-for-gasoline-mp

Notwithstanding U.S. pressure to curtail trade with Iran, India on Wednesday gave a strong signal that it would rather scale up its commercial engagement with Tehran possibly through a bilateral preferential trade pact. While India conveyed its intention to step up economic ties with Iran, leader of a high-level visiting trade delegation from Tehran said the two countries should work together without bothering whether “others like or do not like…”  “The fact is that the economies of India and Iran should work together. Others like or do not like, we should work together and everybody should think for their interests,” President of the Tehran Chamber of Commerce, Industry and Mines Yahya Al Es’hagh said after meeting with Assocham in New Delhi. http://tehrantimes.com/economy-and-business/97713-india-studying-preferential-trade-pact-with-iran

Turkey’s crude oil imports from Iran rose sharply in March, providing the Islamic Republic with much-needed oil revenues. Turkey imported 1.174 million tons, about 270,000 barrels per day, of Iranian crude oil in March, according to official trade data on the Turkish Statistical Institute web site, obtained by Reuters following a request. A Turkish industry official said April imports fell back to a more normal 140,000 bpd and would remain at about the same level in May. The March figures represent the highest monthly purchase of Iranian crude by Turkey since July 2011 and are almost triple the 401,349 tons, 100,000 bpd, imported in February. The imports also reflect a 90 percent jump from March 2011. http://tehrantimes.com/economy-and-business/97690-turkey-ups-iran-oil-imports-to-270000bpd-in-march


 

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