Wednesday, March 31, 2004
IEX.NL: Community Call: Crucell
Crucell N.V. is een succesvol biotechnologiebedrijf dat vaccins en antistoffen ontwikkelt om infectieziekten te voorkomen en genezen. Het bedrijf wist zich in de kijker te spelen door een uitstekende koersontwikkeling na nieuwe ontdekkingen en samenwerkingsverbanden. De antwoorden op uw vele vragen staan nu live. Lees wat ceo Ronald H.P. Brus antwoordt in de IEX Community Call.
IEX.NL: Community Call: Crucell
Saudis Push Plan for Cut in Production by OPEC
"Saudi Arabia, the pivotal member of OPEC, signaled on Tuesday that it was pushing forward with a plan to lower the cartel's target for crude oil production by a million barrels a day, a move that would keep oil prices high.
In practical terms, the development meant that despite the misgivings of some member nations, OPEC officials gathering for a meeting here on Wednesday are not likely to increase oil production to relieve prices, as desired by the United States, where energy costs have become a political issue."
NYT - Saudis Push Plan for Cut in Production by OPEC
Tuesday, March 30, 2004
Saudi Faces Gulf Showdown on OPEC Oil Cut
"Leading OPEC producer Saudi Arabia on Tuesday faced opposition from its two main Gulf allies in the oil cartel for plans to forge ahead with April supply curbs.
Saudi Oil Minister Ali al-Naimi made a strong case ahead of Wednesday's meeting of the Organization of the Petroleum Exporting Countries to push through output cuts, agreed in February for implementation from April 1.
But he faces an unexpectedly robust challenge from the United Arab Emirates and Kuwait, fellow Gulf Arab producers who normally share Riyadh's line on oil policy."
Yahoo! News - Saudi Faces Gulf Showdown on OPEC Oil Cut
NYSE-SEC Settle Trading Case for $242 Mln
"The five largest floor-trading firms of the New York Stock Exchange will pay a combined $241.8 million to settle charges of improper trading, U.S. securities regulators said on Tuesday. "
Yahoo! News - NYSE-SEC Settle Trading Case for $242 Mln:
Oil Up, Saudi Says OPEC Implementing Cuts
"World oil prices braked a run of falls on Tuesday after OPEC (news - web sites)'s most influential member, Saudi Arabia, held a firm line on planned supply cuts to take effect in April.
Ali al-Naimi, oil minister of OPEC's biggest producer Saudi Arabia, said that high oil prices were being driven by speculators, economic growth and other factors, not a shortage of OPEC crude.
"Throwing more oil on the market, because of high prices where they are today, would be destructive," Naimi said. "
Yahoo! News - Oil Up, Saudi Says OPEC Implementing Cuts
Monday, March 29, 2004
ECB Rate Speculation Hits Euro
"Speculation the European Central Bank might be about to cut interest rates pushed the euro lower against the dollar on Monday while shares in Europe edged up with eyes on key U.S. economic data later in the week.
A newspaper report, denied by Japanese authorities, that Japan's intervention to curb the yen's gains had officially ended pushed the currency higher. Oil fell on skepticism OPEC (news - web sites) would go ahead with planned production cuts.
With growing doubts in investors' minds about the strength of economic recovery, many in markets are speculating the ECB will cut the cost of borrowing at its meeting on Thursday. "
Yahoo! News - ECB Rate Speculation Hits Euro
Friday, March 26, 2004
Outsourcing: Long-term gains for all
"I met Paul O'Neill just once.
As the then-US treasury secretary, he had invited a small group of economists to hear their views on the Indian economy and the possibility of greater Indo-US economic interaction.
I wanted to make myself heard to the person who held, arguably, the most influential economic policy position in the world; so I went.
But I was apprehensive. I had enough experience to know that when men of power say they want to "listen", they usually mean "talk". "
BBC NEWS | South Asia | Outsourcing: Long-term gains for all:
Fed Governors Warn of Deficit, Rate Hikes
"A swelling U.S. budget deficit threatens the economy, a top Federal Reserve (news - web sites) official warned on Thursday, even as other policy-makers noted that strong growth would eventually trigger a rise in interest rates.
In his first major speech since taking the key central bank post, New York Fed President Timothy Geithner said the budget gap was all the more worrying, given the nation's large current account deficit, which requires an unprecedented amount of financing.
"The current deterioration in the U.S. fiscal position and the acute decline in the net national savings rate represent risks to the financial system and the economy as a whole," Geithner told a regional bankers' association. "
Yahoo! News - Fed Governors Warn of Deficit, Rate Hikes
Thursday, March 25, 2004
Paring Away at Microsoft
"The European Commission issued an antitrust ruling against Microsoft yesterday that is intended to force the company to change its fundamental business strategy of bundling new products into its Windows operating system, which runs more than 90 percent of all personal computers.
The ruling imposed a $603 million fine. It also required Microsoft to offer a version of Windows without its Media Player and divulge technical information to competitors so that they can create software for business servers that would work well with Windows.
The impact on the future of the global software industry may well be greater than on the company's immediate business prospects. "
New York Times
Fed Reminds Rates Can Rise
"Two Federal Reserve (news - web sites) officials gave further warning to investors on Wednesday that loose monetary policy won't continue forever given rising U.S. economic growth.
A third Fed official joined them in reiterating the central bank's overall stand on monetary policy by emphasizing continued patience in raising interest rates in view of sluggish job growth and tame inflation, despite the robust economic data.
Job creation has been the missing component in the U.S. economic recovery, and until it picks up in breadth and speed, borrowing costs are likely to remain at 1 percent, their lowest level in 46 years."
Yahoo! News - Fed Reminds Rates Can Rise
Wednesday, March 24, 2004
Durable Goods Orders Jump 2.5 Percent
"New orders for long-lasting U.S. factory goods rose more than expected in February as demand for aircraft soared, a government report showed on Wednesday, but the number declined slightly when transportation was stripped out.
Orders for big-ticket durable goods -- items meant to last three years or more -- advanced 2.5 percent after falling a revised 2.7 percent in January, the Commerce Department (news - web sites) said.
Wall Street had expected a more modest 1.7 percent gain after the surprise decline the previous month.
"It looks like a lot of the strength in February was from civilian aircraft, and that can be a pretty volatile category," said economist Patrick Fearon at A.G. Edwards & Sons in St. Louis.
Reflecting this wariness, bonds, stocks and the dollar were little changed on the report. "
+ Yahoo! News - Durable Goods Orders Jump 2.5 Percent
+ US Census bureau
Trichet-Interview
English version of the interview given by Jean-Claude Trichet, President of the European Central Bank, to the Handelsblatt.
+ Handelsblatt.com: Trichet-Interview
Euro Slips After Trichet, Yen Buoyant
The euro slipped on Wednesday after cautious comments by European Central Bank President Jean-Claude Trichet, while the yen hit a one-month high on the dollar after a ratings agency raised its outlook for Japan.
+ Washington Post
Ex- US reasury Chief: Debts Imperil Stature
"U.S. stature as the world's leading financial power is increasingly jeopardized by mounting debts that make America dependent on Asia to fund its spending, former Treasury Secretary Lawrence Summers said on Tuesday.
"There is surely something odd about the world's greatest power being the world's greatest debtor," Summers said during an address to Washington's International Institute of Economics.
"There is surely a question that must be asked when, in order to finance prevailing levels of consumption, prevailing levels of investment, it is necessary for the United States to be as dependent as it is on the discretionary acts of what are inevitably political entities in other countries," he added."
Yahoo! News - Ex-Treasury Chief: Debts Imperil Stature
Market Insight: For Yahoo, the Search Is Worth the Effort
"Over the last three years, Yahoo, the Web portal and Internet provider, has become a major factor in the Internet search-engine business.
As recently as 2000, the company's search revenue amounted to just $400 million, according to an estimate by analysts at Smith Barney, a unit of Citigroup. This year, it is likely to exceed $3 billion.
Last week, Lanny Baker, an Internet analyst at Smith Barney, talked about Yahoo, its prospects and challenges. Following are excerpts from the conversation:
Q. How rapidly do you see the search market growing? "
NYT - Market Insight: For Yahoo, the Search Is Worth the Effort
Snow; Hiring to Increase as Orders Fatten
"Treasury Secretary John Snow said on Tuesday that U.S. job prospects should soon pick up as steady economic growth fills corporate order books and forces some hiring.
"The economy is on a good recovery path," Snow said on CNBC television.
In response to questions, he said the lack of jobs so far in official government employment statistics was "puzzling" and may not reflect the growing number of self-employed Americans. "
Yahoo! News - Snow; Hiring to Increase as Orders Fatten
Tuesday, March 23, 2004
German industry, politicians clash in debate over jobs exodus
"Unpatriotic or economically imperative? The uncompetitively high cost of labour in Germany is fast becoming a source of friction between business leaders and the government in the eurozone's biggest economy.
Companies argue their only choice is to move jobs abroad, a solution which is set to become easier with the imminent eastwards expansion of Europe.
But Chancellor Gerhard Schroeder, fearing a mass exodus of jobs to low-wage countries at a time when German unemployment is already cripplingly high, has roundly slammed such deliberations as "unpatriotic".
The debate seems to have hotted up in recent weeks, with companies, particularly in the high-tech sector, apparently mulling plans to relocate thousands of jobs abroad."
Yahoo! News - German industry, politicians clash in debate over jobs exodus:
OECD says US, ECB seen raising rates this year
The US Federal Reserve and the European Central Bank are expected to start edging interest rates higher this year, but in historical terms rates will remain low, the OECD said.
The Organization for Economic Cooperation and Development, in its semiannual Financial Market Trends report, also said Asian countries will have to assume a greater role in compensating for the steady weakening of the US dollar.
It noted that certain Asian nations have been intervening heavily in exchange rate markets to stem the appreciation of their own currencies.
The report said forward interest rates and futures contracts suggest that market participants expect rates to rise some time in the second quarter in the United States and later in the year in the 12-nation eurozone.
Yahoo! News - OECD says US, ECB seen raising rates this year
Monday, March 22, 2004
Gaza, Taiwan Spook Markets
"The assassination of a Hamas spiritual leader and an uncertain political situation in Taiwan combined on Monday to push Asian and European shares down and to weaken the yen. "
Yahoo! News - Gaza, Taiwan Spook Markets:
OPEC production cut strategy hurts US economy
"OPEC's aggressive six month old strategy of cutting oil production, which has seen prices come near a 13-year high, is hurting the United States which faces an increasingly difficult negotiating position.
The main oil exporting group made surprise production cuts in September and February at a time when supplies in the United States and other developing countries have been drained by demand from China, a tough winter in North America and high consumption of fuel for cars."
Yahoo! News - OPEC production cut strategy hurts US economy:
Friday, March 19, 2004
Oil price surge threatens US economy
"The recent spike in crude oil prices poses a new threat to a still-fragile US economic recovery by boosting the cost of energy for industry, airlines and millions of commuters.
The price of light sweet crude surged to 38.18 dollars a barrel on Wednesday, a 13-year high, before a modest drop on Thursday.
US administration officials along with industry leaders are voicing concern about the jump in prices and the potential effect on the economy, which is still struggling to create jobs. "
Yahoo! News - Oil price surge threatens US economy
Oil price surge likely to hurt eurozone spending despite euro strength
"The recent surge in the price of oil, which jumped to its highest level in 13 years in New York, threatens to depress eurozone consumption despite the strong euro, economists said."
Yahoo! News - Oil price surge likely to hurt eurozone spending despite euro strength
Shell Reduces Estimate of Reserves Again
" Royal Dutch/Shell Group made a second reduction to its proven reserves of oil and natural gas on Thursday and said that it would postpone its annual report and shareholder meeting by eight weeks or more, surprising investors.
The equivalent of 250 million barrels of oil are being reclassified, the company said, because they do not comply with regulations of the Securities and Exchange Commission in the United States."
NYT - Shell Reduces Estimate of Reserves Again:
Thursday, March 18, 2004
Eurozone inflation lowest for four years in February
"Inflation in the 12-nation eurozone fell from 1.9 percent in January to 1.6 percent in February, the lowest level for four years, final figures from the EU's data agency Eurostat showed.
In the whole of the EU -- the eurozone plus Britain, Denmark and Sweden -- annual inflation stood at 1.5 percent in February compared to 1.8 percent the previous month, Eurostat said Wednesday, confirming preliminary estimates last month. "
Yahoo! News - Eurozone inflation lowest for four years in February:
Schroeder bullish on German economy, vows to continue reform drive
"Chancellor Gerhard Schroeder said he was confident the German economy was beginning to pick up steam and pledged to press ahead with his unpopular reform drive.
On the eve of the world's largest high-tech fair, the CeBIT, Schroeder told industry guests that Germany was looking to new technology to help fuel growth and that his economic reforms were intended to foster innovation and job creation.
'The economic outlook and conditions are much better today than even one year ago,' he said. 'That is the case for the global economy but also for Germany.'
Schroeder said that despite the strong euro, exports had improved 'significantly' since the year's start and that 15 billion euros (18 billion dollars) in tax cuts introduced January 1 were beginning to spur consumer spending. "
Yahoo! News - Schroeder bullish on German economy, vows to continue reform drive
Losses shrink at steelmaker Corus
"Steelmaker Corus has seen its losses narrow, amid speculation a leading Russian businessman is seeking a boardroom role at the Anglo-Dutch firm. "BBC NEWS | Business | Losses shrink at steelmaker Corus
Budget opens election battle lines
"Gordon Brown is defending his Budget plan to shed 40,000 Whitehall jobs so he can provide schools with more cash.
Wednesday's announcement has set the battle lines for the next election which is widely expected next Spring.
Union bosses are demanding "urgent meetings" over the job cuts while the Tories say the chancellor's borrowing makes future tax rises inevitable.
Opposition parties described the one-off �100 to help over-70s with council tax rises as a pre-election "bribe"."
BBC NEWS | UK | Politics | Budget opens election battle lines
Tuesday, March 16, 2004
Patient Fed Leaves Rates Alone
"The U.S. Federal Reserve on Tuesday held interest rates at 1958 lows and signaled it was in no hurry to raise borrowing costs with job creation sluggish and inflation tame. "
Yahoo! News - Patient Fed Leaves Rates Alone:
Eurozone public deficit jumps to 2.7 percent of output in 2003
"The 12 countries in the eurozone increased their overall public deficits to 2.7 percent of output in 2003 from 2.3 percent in 2002.
Their overall public debt rose to 70.4 percent of gross domestic product from 69.2 percent, data from the EU statistics institute Eurostat showed Tuesday.
Britain, which is not in the eurozone, breached an EU limit for deficits last year with a doubled deficit of 3.2 percent from 1.6 percent in 2002.
Under terms of the 1997 Stability and Growth Pact, EU members are bound to maintain deficits of no more than three percent of GDP.
The Netherlands, which is a eurozone member, reached the 3.0-percent ceiling from a deficit of 1.9 percent in 2002. "
Yahoo! News - Eurozone public deficit jumps to 2.7 percent of output in 2003:
Deficit Study Disputes Role of Economy
"When President Bush and his advisers talk about the widening federal budget deficit, they usually place part of the blame on economic shocks ranging from the recession of 2001 to the terrorist attacks that year.
But a report released on Monday by the nonpartisan Congressional Budget Office estimated that economic weakness would account for only 6 percent of a budget shortfall that could reach a record $500 billion this year.
Next year, the agency predicted, faster economic growth will actually increase tax revenues even as the deficit remains at a relatively high level of $374 billion.
The new numbers confirm what many analysts have predicted for some time: that budget deficits in the decade ahead will stem less from the lingering effects of the downturn and much more from rising government spending and progressively deeper tax cuts."
NYT - Deficit Study Disputes Role of Economy:
Greenspan Shifts View on Deficits
"Consumer debt is hitting record levels. The federal budget deficit is yawning ever larger. The trade gap? Don't even ask.
Many mainstream economists are worried about these trends, but Alan Greenspan, arguably the most powerful and influential economist in the land, is not as concerned.
In speeches and testimony, Mr. Greenspan, chairman of the Federal Reserve Board, is piecing together a theory about debt that departs from traditional views and even from fears he has himself expressed in the past.
In the 1990's, Mr. Greenspan implored President Bill Clinton to lower the budget deficit and tacitly condoned tax increases in doing so. Today, with the deficit heading toward a record of $500 billion, he warns more emphatically about the risks of raising taxes than about shortfalls over the next few years."
NYT - Greenspan Shifts View on Deficits
Monday, March 15, 2004
Opec defiant as oil prices rise
"Nigeria and Venezuela have called on fellow members of the Opec cartel of oil producing nations to raise their target price band for crude oil.
The two are arguing that the weaker dollar is hurting them as producers of dollar-denominated commodities.
Opec ought now raise its target price range from the present $22-28 a barrel, a senior Nigerian official said.
With prices standing much higher than that for several months, that pledge already looks hollow to oil consumers.
Brent crude, the world benchmark, was trading at $32.50 a barrel in London on Monday morning, up 26 cents on the day.
For all but one day of the past four months, prices have been well above the $28 upper limit of the Opec price range."
BBC NEWS | Business | Opec defiant as oil prices rise
Industrial Production Up 0.7 Pct in Feb.
"U.S. industrial output grew by a stronger-than-expected 0.7 percent in February, as American firms operated at their fastest pace since August 2001, the Federal Reserve (news - web sites) said in a report on Monday."
Yahoo! News - Industrial Production Up 0.7 Pct in Feb.
EU Regulators Meet on Proposal to Brand Microsoft a Monopolist
"On Monday, top antitrust regulators from the 15 nations in the European Union will gather here in the Centre Borschette, a bunkerlike building a stone's throw from the headquarters of the European Commission, to discuss a draft ruling that finds Microsoft guilty of abusing its dominance in operating software.
With this meeting, the clock on the five-year-old antitrust case against Microsoft begins to run down. In less than two weeks, barring a last-minute settlement, the European Commission is expected to declare Microsoft an abusive monopolist, impose a fine of $100 million to $1 billion and order the company to make fundamental changes to the way it sells software in Europe."
NYT - Regulators Meet on Proposal to Brand Microsoft a Monopolist
German finance minister admits worry about consumer demand
"German Finance Minister Hans Eichel admitted that he was worried about sluggish consumer demand, which he said could act as a brake on growth.
He told Sunday's edition of the Frankfurter Allgemeine that exports, which are the cornerstone of Europe's biggest economy, were holding up well despite the strength of the euro against the dollar.
"What worries me is domestic consumer demand," he added. "That's a question above all of the mood in the country. It's not something the government alone can deal with. Everyone has to do their bit.
"Psychology can be a brake on growth, or it can be a spur to growth. There is a big risk that in Germany, it will remain a significant brake. We must all work together."
Official figures last week appear to confirm Eichel's fears."
Yahoo! News - German finance minister admits worry about consumer demand:
Saturday, March 13, 2004
Current US Account Deficit Swells to $541.8B
"The deficit in the broadest measure of trade swelled to a record $541.8 billion in 2003, according to a government report that comes as trade and the loss of jobs have become major issues in the presidential campaign.
The latest snapshot of trade activity released by the Commerce Department (news - web sites) on Friday showed that the "current account" deficit last year was 12.7 percent bigger than the previous all-time high deficit of $480.9 billion in 2002. "
Yahoo! News - Current Account Deficit Swells to $541.8B:
Wall Street Tries to Rally After Attacks
"The Madrid bombings sent a potent reminder to Wall Street that not all is well in the world and that the recovery it's managed since 9/11 could be ripped apart in a matter of seconds.
The Dow fell 160 points on the day of the attacks that killed nearly 200 people, extending the week's losses to more than 450 points prior to Friday's rebound.
Still, the economy continues to show strength, and most strategists see the recent bout of stock market weakness as a much-needed breather in a nearly nonstop rally.
But Madrid's attacks forced Wall Street to confront an uncomfortable fear, that the economy is still fragile even after the huge amount of stimulus applied by Bush, Greenspan & Co. After the Sept. 11, 2001 attacks in the United States, the two top officials pushed down the accelerator and saved the economy from ruin.
But now, all the king's horses can't get the economy moving fast enough to create new jobs. The stock market's awareness of the problem mounted after February's jobs figures, released last week, showed a surprising lack of new jobs despite bullish forecasts.
"Unfortunately I don't think it would change much whether it's Bush or Kerry or Mickey Mouse in the White House," said Richard Yamarone, director of economic research for Argus Research. "Presidents can't create jobs. If they could, the unemployment rate in October of each election year would be zero.""
Yahoo! News - Wall Street Tries to Rally After Attacks
Friday, March 12, 2004
Bush has a PR problem with the economy, supporters say
As if President Bush didn't have enough headaches in his bid for re-election -- the troubles in Iraq, a stubbornly sluggish job market and persistent Democratic criticism of his policies -- he's now taking flak from some of his own supporters about his economic message.
This certainly isn't the first time Team Bush has been criticized for bungling its economic message. But the latest round of problems may be hurting consumer confidence, and the president's chances at re-election, some of his supporters say.
CNN Money- Bush has a PR problem with the economy, supporters say - Mar. 12, 2004
At Shell, New Accounting and Rosier Oil Outlook
"Internal corporate documents and interviews with oil executives and industry analysts describe a company that in the go-go 1990's tried to manage its reserve figures much the way other companies managed their earnings — to satisfy investors.
The documents show that worried executives felt compelled to increase the reserves, which throughout the first half of the 1990's were declining because discoveries did not keep pace with production.
The fall in the so-called reserve replacement ratio troubled analysts and investors because it is an important measure of an oil company's prospects."
NYT - At Shell, New Accounting and Rosier Oil Outlook
Bomb attack hits stocks worldwide
European and Asian stock markets have fallen again after the deadly bomb attacks in Spain triggered fears there may be more terrorist attacks.
Evidence found near the blasts suggesting a link to Al-Qaeda is being examined, although Spain views Basque separatists as more likely perpetrators.
European markets were down by 1-2% on Friday morning, following an earlier 1.6% fall on New York's Dow Jones.
BBC NEWS | Business | Bomb attack hits stocks worldwide
Thursday, March 11, 2004
Greenspan: Employment 'About' to Pick Up
"Federal Reserve (news - web sites) Chairman Alan Greenspan (news - web sites) said on Thursday that flexible labor markets had proved their worth by creating jobs in the United States and that employment was poised to pick up.
"I am fairly well convinced that employment is about to pick up or should be more explicit, new hires are going to be picking up reasonably quickly if this economic growth rate continues," he told the House of Representatives Education Committee, adding he supported extending unemployment support."
Yahoo! News - Greenspan: Employment 'About' to Pick Up:
Eurostocks Sink 3 Pct on Madrid Blasts
"European shares sank three percent by late morning on Thursday after Arnaldo Otegi, a Basque nationalist leader, said he did not believe ETA was responsible for a series of blasts in Madrid that have killed at least 131 people.
Otegi said the attacks could have been "an operation by sectors of the Arab resistance," raising fears in financial markets the blasts were the work of al Qaeda. "
Yahoo! News - Eurostocks Sink 3 Pct on Madrid Blasts:
Oil Prices Rise, Ending Run of Losses
"Oil prices rose on Thursday, ending a three-day run of losses as the West's energy watchdog upgraded its forecast for global demand growth for this year, with booming China accounting for almost one-third of the rise.
U.S. light crude traded 30 cents higher to $36.40 a barrel, retracing 26 percent of the $1.16 lost in the first three days of the week.
London's Brent crude climbed 35 cents to $32.34 a barrel.
In its latest monthly report, the International Energy Agency (IEA) raised its forecast for world demand growth this year by 220,000 barrels a day (bpd) to 1.65 million bpd, saying China's soaring economy was driving up consumption faster then expected. "
Yahoo! News - Oil Prices Rise, Ending Run of Losses:
Growing US trade gap hits shares
"US stocks nosedived on Wednesday after the Commerce Department revealed the trade deficit hit an all time high of $43.1bn (£24bn) in January.
The Dow Jones and Nasdaq closed down 1.5%, triggering falls in Japanese and European shares on Thursday.
The record US trade deficit dashed hopes that the recent fall in the dollar would stimulate exports.
The politically sensitive trade deficit with China rose to $11.5bn in January, up from $9.9bn in December.
"To me this is very worrisome. The trade deficit is not improving. It is getting worse despite the dollar depreciation," said Wells Fargo Banks chief economist Sung Won Sohn."
BBC NEWS | Business | Growing US trade gap hits shares
Wednesday, March 10, 2004
U.S. Trade Gap Hits Record $43.1 Billion in January
"The U.S. trade deficit widened to a record $43.1 billion in January, as rising oil prices helped keep imports near historic highs and exports retreated despite the weaker dollar, the Commerce Department said on Wednesday.
The monthly trade gap was larger than the mid-point analyst estimate of $42.1 billion. Average prices for imported oil leapt to $28.55 per barrel in January, the highest since March 2003.
Jon Lonski, chief economist at Moody's Investors Service in New York, said the widening trade gap was "consistent with other signs of an economy that appears to be losing its footing" and therefore could weigh on stock prices."
+ Yahoo! News - U.S. Trade Gap Hits Record $43.1 Billion in January
+ News Release: U.S. International Trade in Goods and Services
EU finance ministers warn Germany over deficit
"European Union finance ministers warned Germany that it risked missing its target of getting its public deficit back under a eurozone limit by next year.
The German government foresees shrinking its deficit from four percent of gross domestic product in 2003 to 3.25 percent this year and 2.5 percent next.
The ceiling laid down by the EU's Stability and Growth Pact is three percent of GDP, which both Germany and France -- the 12-nation eurozone's biggest economies -- have repeatedly overshot."
Yahoo! News - EU finance ministers warn Germany over deficit:
Japan's current account surplus jumps 135.2 percent in January
"Japan's current account surplus more than doubled in January from a year earlier on robust high-tech exports to Asia and Europe and increased spending in Japan by foreign tourists, the government says.
The surplus jumped 135.2 percent to 1.05 trillion yen (9.5 billion dollars), the seventh month of gains, thanks to exports of chips, motorcycles and digital cameras, the finance ministry said."
Yahoo! News - Japan's current account surplus jumps 135.2 percent in January:
Oil Prices Climb Back Toward 1-Year Peaks
"Oil prices climbed back toward one-year peaks Wednesday after the world's top exporter Saudi Arabia told Japan and South Korea to expect less crude in April, in line with an OPEC production cut due to take effect that month.
Benchmark U.S. light crude futures were trading at $36.50 per barrel at 3:55 a.m. EST, up 22 cents on the day but off Monday's 12-month high of $37.51.
Brent April crude was up 27 cents at $32.50."
Yahoo! News - Oil Prices Climb Back Toward 1-Year Peaks:
German trade surplus grows in January
"Germany's trade surplus grew in January as growth in exports outpaced growth in imports, despite the strength of the euro, data from the federal statistics office Destatis showed.
The German trade surplus stood at 12.3 billion euros (15 billion dollars) in January, up from 10.4 billion euros in December and higher than the 9.0 billion euros recorded in January 2003, the office said in a statement.
Exports continued to grow, despite the strength of the euro, which makes German-made goods more expensive than rival products made outside the eurozone, according to the calculations."
Yahoo! News - German trade surplus grows in January:
Tuesday, March 09, 2004
Global Recovery Strong and Lasting-G10
"The world economic recovery is strong and risks that it could be derailed are fading, top central bankers said on Monday.
Central bankers from the Group of 10 leading industrial nations and their counterparts from top emerging economies were optimistic the downturn which followed a prolonged stock market slump was over, despite a weak U.S. jobs report last week.
"The sense of the meeting today was that the sustainability of the recovery at the global level was certainly not to be put in question," said European Central Bank President Jean-Claude Trichet, who is spokesman for the G10 central bankers.
"We have a strong recovery," he told a news conference in comments that reinforced upbeat messages from other international agencies.
His remarks at the central bankers' meeting in the Swiss city of Basel helped to allay fears the weak U.S. labor market was a sign that America's recovery is more fragile than thought."
Yahoo! News - Global Recovery Strong and Lasting-G10
Promises, Promises (on Job creation from Bush)
"Despite a string of dismal employment reports, the administration insists that its economic program, which has relied entirely on tax cuts focused on the affluent, will produce big job gains any day now. Should we believe these promises?"
Paul Krugman in the NYT shows a telling chart.
NYT Op-Ed Columnist: Promises, Promises
Monday, March 08, 2004
Australia's Macquarie To Buy ING Asian Equity Ops
"Australia's Macquarie Bank Ltd. (MBL.AU) has decided to plunge into the highly competitive Asian institutional broking market, agreeing to buy ING Groep NV's (ING) Asian equity businesses across 10 countries.
The deal is effective March 1 and will free the Dutch bank to concentrate on higher margin operations in the region while delivering instant critical mass to Macquarie.
The ING business was formerly part of Barings Investment Bank, which collapsed in 1995 after Singapore-based derivatives trader Nicholas Leeson lost more than US$1 billion in unauthorized trades on future Japanese stock prices.
"
UPDATE:Australia's Macquarie To Buy ING Asian Equity Ops
Dollar slips vs Yen and Euro
"The dollar fell against the yen and euro on Monday on market rumors Japan may have pulled its bids after suspected heavy dollar-buying intervention earlier in the session, traders said.
'There was a rumor that the BoJ (Bank of Japan) pulled their bids. There was also talk of a massive stop-loss order below 112 yen,' said a New York-based trader. "
Business News Article | Reuters.com:
Risk appetite 'drives share gain'
Investors' rediscovered appetite for risk is driving global stock markets higher, according to a forum for the world's most influential bankers.
The Bank for International Settlements (BIS) said readiness to assume risk played a bigger part in share gains than the world's economic recovery.
But the report warned soaring personal debt in many countries could amplify any economic shocks they suffered.
The Basle-based BIS is often dubbed the "central bankers' central bank".
Shares over-valued?
BBC NEWS | Business | Risk appetite 'drives share gain'
Warren Buffett keeps out of the depreciating dollar
"Warren Buffett, the second wealthiest man in the world, continued to bet against the dollar last year, increasing his company's ownership of foreign currencies to $12bn.
The figure was disclosed in the eagerly anticipated annual letter from the 'Oracle of Omaha' to shareholders in his Berkshire Hathaway company, in which he routinely delivers nuggets of his own peculiar brand of homespun wisdom.
In the 24-page letter, sent out on Saturday, the 73-year-old, returned to many of his favourite themes. He attacked the Bush administration's tax cuts and railed against greedy chief executives, corrupt mutual fund managers and ineffective independent directors. "
+ Guardian Unlimited | Special reports | Warren Buffett keeps out of the depreciating dollar
+ BBC News - Buffett hits out at mutual funds
+ BERKSHIRE HATHAWAY INC.
China to Keep Yuan Policy for 'Long Time'
China's fixed currency policy will stay around for "a long time to come" and Chinese firms that bet on a yuan appreciation will end up paying a heavy price, the country's foreign exchange chief said.
In an unusually strong defense of the yuan's long-standing peg to the dollar, Guo Shuqing, head of the State Administration of Foreign Exchange, hit back at U.S. critics who have blamed the policy for costing American jobs.
"Our study shows that the impact of the exchange rate on the economy and employment has been over-exaggerated," the Xinhua news agency on Monday quoted Guo as saying.
Yahoo! News - China to Keep Yuan Policy for 'Long Time'
Foreign Concerns Make Deals With Saudis to Search for Gas
Saudi Arabian officials said on Sunday that they were seeking to strengthen ties with China and Russia after allowing energy companies from those countries to be among the first foreign businesses to explore Saudi natural gas reserves in more than three decades.
The Saudi contracts are with Lukoil, one of Russia's largest oil companies, and Sinopec, a large Chinese oil and gas producer. They were signed here on Sunday after protracted talks with several large American energy companies had collapsed over differences on terms and amid perceptions of a more distant relationship between Riyadh and Washington.
"There is no question cooperation in the economic field has the secondary benefit of increasing total cooperation," Ali al-Naimi, the Saudi oil minister, said after signing the agreement with Lukoil. Russia is the largest producer of oil among nations that are not part of the Organization of the Petroleum Exporting Countries.
NYT - Foreign Concerns Make Deals With Saudis to Search for Gas
Friday, March 05, 2004
February Job Growth Surprisingly Weak
U.S. employers added a paltry 21,000 workers to their payrolls last month, far fewer than expected, according to a government report on Friday that was likely to weigh on President Bush as he seeks re-election.
In its report, the Labor Department said private-sector employment was unchanged in February, while the government added 21,000 workers.
The report also showed job creation in November and December was weaker than previously thought, adding to the weak tone of the report. The department revised lower its count of jobs gains in December to 97,000 from 112,000 and for November to just 8,000 from 16,000.
February's unemployment rate held steady at 5.6 percent.
Economists at top Wall Street firms had forecast a February payrolls gain of 125,000 new jobs.
Yahoo! News - February Job Growth Surprisingly Weak
Oil Prices Rise to a One-Year High
Oil prices rose to a one-year high on Friday on concerns political strife in Venezuela could spin out of control and amid expectations that OPEC will keep its vow to cut output next month.
U.S. refiners made plans for possible supply disruptions in Venezuela despite assurances from OPEC's third biggest producer that this would not happen. The Bush administration said it was "extremely concerned" about surging gasoline prices.
U.S. light crude rallied to $37.12 and by 6 a.m. EST was up 38 cents at $37.02 a barrel, extending an 84-cent, or 2.3 percent, surge on the New York Mercantile Exchange on Thursday. Prices are at their highest since mid-March last year, just ahead of the U.S. invasion of Iraq.
London Brent crude futures rose 29 cents to $33.18.
Yahoo! News - Oil Prices Rise to a One-Year High
China targets seven percent growth in 2004; pledges stable currency
Chinese Premier Wen Jiabao said his government is targeting economic growth of seven percent this year but urged a more equitable distribution of wealth and better controls on haphazard and redundant investment.
Speaking before some 5,000 delegates and political advisors to the annual session of the National People's Congress, Wen also pledged to keep the Chinese yuan "basically stable.
"In setting strategy for this year's economic growth, of around seven percent, the central government has taken into consideration both the need for continuity in marco-control and the relationship between the pace of economic growth and ... supply and demand," Wen said.
China grew at a blistering 9.1 percent in 2003 for its best performance since 1997 amid alarm bells that the economy was overheating while a widening gap between rural and urban areas was fueling increasing social discontent.
Yahoo! News - China targets seven percent growth in 2004; pledges stable currency
Thursday, March 04, 2004
ECB Chief Trichet Rebuffs Rate Cut Calls
European Central Bank President Jean-Claude Trichet on Thursday rebuffed calls from top politicians for cheaper credit to help exporters hurt by the euro, saying gradual economic recovery remains in place and the inflation outlook is favorable.
After the ECB left its key interest rate at 2.00 percent for the ninth straight month, Trichet said in a statement that the risks to recovery are balanced and he made no mention of euro strength.
"While growth has been relatively modest so far, both external and domestic factors give reason to expect strengthening of the recovery through 2004 and beyond," he told a news conference.
The decision by the ECB's Governing Council ignores pleas by German Chancellor Gerhard Schroeder and French Prime Minister Jean-Pierre Raffarin. They both urged rate cuts to counter the effect on exporters of the strong euro, which hit a record high above $1.29 last month and has risen roughly 20 percent against the dollar in the past year.
+ Yahoo! News - ECB Chief Trichet Rebuffs Rate Cut Calls
+ ECB PRESS CONFERENCE Introductory statement by Jean-Claude Trichet
+ BBC News - Euro interest rates remain at 2%
Wednesday, March 03, 2004
Watts steps down as Shell chairman
Shell, the oil company, today announced that its embattled chairman Philip Watts had stepped down with immediate effect.
Shell shares rose sharply on the news, standing 14p higher at 390p ten minutes after the announcement.
Mr Watts, whose departure was announced as "by mutual consent" in a statement released by the company, is to be replaced by Jeroen van der Veer, the president of Royal Dutch Petroleum, Shell's Netherlands-based associate company.
Times Online - Latest news
Greenspan clashes with White House
The US Federal Reserve chairman fears the effects of floating China's currency
The White House insisted last night that it still wants China to float its currency on world markets — despite a warning from Alan Greenspan that this would be a high-risk move posing serious dangers to global recovery.
The Federal Reserve Chairman’s stark advice on the potential fallout from a yuan float came in a letter that Richard Shelby, chairman of the US Senate’s powerful Banking Committee, released.
Mr Greenspan wrote that if China moved to abandon the yuan’s controversial peg to the dollar it could lead to a flood of money out of China, destabilising its financial and banking system.
The Fed Chairman went on to give warning that if this were to happen the resulting upheaval could also undercut recovery in America and around the world.
The blunt comments from Mr Greenspan appeared to be a tacit warning to the growing band of US politicians responding to popular unease over Chinese competition for jobs and markets with demands that Beijing float the yuan.
But with the US presidential election only eight months away and Senator John Kerry, the leading Democratic challenger, increasingly leaning towards protectionist rhetoric, the White House insisted that it still wanted the yuan’s value set on the currency markets.
Times Business
US dollar climbs to 3-month highs
The US dollar has hit its highest levels in almost three months against most of the world's major currencies.
Increasing evidence that the US economy is adding jobs has fuelled speculation that interest rates may now rise.
The dollar has added 6% since falling to record lows against the euro and some traders are predicting more gains.
On Wednesday, the US currency rose to 1.2186 per euro and also strengthened versus the British pound, Japanese yen, Swiss franc and Australian dollar.
BBC NEWS | Business | US dollar climbs to 3-month highs
Greenspan Plays Down 2 Threats to U.S. Economy
Alan Greenspan, the Federal Reserve chairman, said on Tuesday that neither the huge United States trade deficit nor large currency interventions by Japan and China pose a serious threat to the United States.
Mr. Greenspan also sent a small shiver through financial markets by saying that the central bank will eventually have to raise short-term interest rates from their current low levels.
Greenspan Plays Down 2 Threats to U.S. Economy
Monday, March 01, 2004
Oil at Post-Iraq War High
Oil prices hit post-Iraq war highs on Monday, inflamed by low U.S. inventories and worries about political instability in producer nation Venezuela.
U.S. crude touched $36.45 a barrel, the highest price since shortly before the U.S.-led invasion of Iraq in March last year and at 1230 GMT (7:30 a.m. EST) was up 20 cents at $36.36 a barrel. Brent crude oil in London rose 35 cents to $32.57 a barrel.
Yahoo! News - Oil at Post-Iraq War High
Dutch Ahold Sells Brazil Assets
Dutch retailer Ahold (AHLN.AS) on Monday sold a Brazilian supermarket chain to the world's biggest company, Wal-Mart Stores, as it cuts debts and focuses on core markets in Europe and the United States.
Ahold said it was selling the Bompreco retail chain to the U.S. retail giant and the Hipercard credit card organization to local bank Unibanco. The assets together are worth about $500 million.
Yahoo! News - Dutch Ahold Sells Brazil Assets
EU to impose tariffs against US
The European Union is set to impose tariffs on US companies that will cost American business hundreds of millions of dollars.
The EU trade commissioner said a 5% duty would be put on exports from the US to Europe from Monday because of unfair help to firms by Washington.
Pascal Lamy said rates would continue to rise unless the US changed its law.
But with jobs an issue in the US, there will be grassroots political pressure not to back down.
The trade dispute between America and Europe has been a war of words so far with tariffs threatened but not imposed.
That will now change.
BBC NEWS | Business | EU to impose tariffs against US
