Deutsche Bank analyst sees mortgage fallout affecting earnings through end of year; Merrill, Citi to be hit hardest.
LONDON (CNNMoney.com) -- Banks are likely to mark down another $10 billion of mortgage assets in the fourth quarter, according to one analyst's estimates.
Deutsche Bank analyst Michael Mayo said in a note Thursday that banks and brokerages are likely to see their earnings pressured through the rest of 2007.
Merrill Lynch & Co. Inc. (Charts, Fortune 500) and Citibank Inc. (Charts, Fortune 500) are expected to be hit the hardest. Mayo estimated each bank would write down $4 billion in the fourth quarter.
He said Bear Stearns Cos. Inc. (Charts, Fortune 500), Morgan Stanley (Charts, Fortune 500), Bank of America Corp. (Charts, Fortune 500) and Wachovia Corp. (Charts, Fortune 500) are also likely to take markdowns.
Banks have taken massive hits from risky mortgage securities in the third quarter. Merrill Lynch wrote down $7.9 billion, and Citi took a $2.2 billion markdown due to mortgage-backed securities and credit trading losses.
Fears of more writedowns have stoked credit worries and raised investor anxiety. The Dow Jones industrial average plummeted 362 points on Thursday - its fourth-biggest point decline of the year - and kept falling on Friday.
Saturday, November 3, 2007
Friday, November 2, 2007
國企見頂不宜沾手 - 沈振盈
議息後的港股勢頭轉弱，期指再度大低水208點，明顯見到有累積淡倉的迹象。國企股走勢更弱，H指期貨也是大低水。其實從個別重磅國企股之圖表中，已可見到有頂的訊號，走勢最差的有平保（2318）、財險（2328）、中電信（728）、大唐發電（991）、馬鋼（323）、鞍鋼（347）及江銅（358）……等等。基本上，大部份國企股皆已現見頂訊號，短期實不宜沾手。其實早在兩三星期前，筆者在一些公開場合中，不斷有很多散戶問筆者，可否沽出手中股仔蟹貨，轉買入中資股，已感事態不妙。市場情緒的感染力已令一眾投資者按捺不住，加上傳媒不斷渲染「AH股互換」的藉口，正是推趕散戶入局，大戶這一招「請君入甕」相信又奏效了。更炒的是，早前兩周不少評論員仍拿着「傳統分析不合時宜」作理據，叫人不要理會股價太貴的因素，否則便錯失賺錢的機會。「揸住H股等A股上市」等大收成，也是另一種導散戶於盲的投機炒作，卻誤導了散戶以為是正確的投資路向。
資金並非流入港股
港股已變成了一個賭場，甚麼冠冕堂皇的理據在現水平的股價，也只是炒作投機的藉口而已。各位分析員，叫人去賭就要承認是賭博，有風險的，等投資者知道是甚麼一回事。何必要扮有理據，將投機賭博的市況裝飾為有理據的投資理由。不過，這也難怪，大行報告也不斷嘩眾取寵地提升股份的目標價，而股價又確實是不停上升，難道要學股神巴菲特般，做一個被人取笑的理智基金經理嗎？金管局又要入市沽出港元，大家又以為是有資金流入股市了。大家要留意，「資金流入香港」與「資金流入港股」是兩回事，從近期的股市走勢分析，資金非但沒有流入港股，更似是流出國企股。翻查歷史，有很多次出現資金流入香港之時，都是港股將近見頂之日。
作者沈振盈為證監會持牌人士
資金並非流入港股
港股已變成了一個賭場，甚麼冠冕堂皇的理據在現水平的股價，也只是炒作投機的藉口而已。各位分析員，叫人去賭就要承認是賭博，有風險的，等投資者知道是甚麼一回事。何必要扮有理據，將投機賭博的市況裝飾為有理據的投資理由。不過，這也難怪，大行報告也不斷嘩眾取寵地提升股份的目標價，而股價又確實是不停上升，難道要學股神巴菲特般，做一個被人取笑的理智基金經理嗎？金管局又要入市沽出港元，大家又以為是有資金流入股市了。大家要留意，「資金流入香港」與「資金流入港股」是兩回事，從近期的股市走勢分析，資金非但沒有流入港股，更似是流出國企股。翻查歷史，有很多次出現資金流入香港之時，都是港股將近見頂之日。
作者沈振盈為證監會持牌人士
100倍PE仲買唔買？- 曾淵滄
美國減息0.25厘是預期中的事，不算甚麼好消息，因此，股市也可能暫時沒有甚麼來自美國的消息可炒，阿里巴巴（1688）上市集資，PE 106倍，相信是打破紀錄了，但是仍然非常多人申請，凍結資金4500億元。
我們似乎又回到1999年至2000年的資訊科技熱潮中，這是新的泡沫嗎？人人都試過當年泡沫爆破的滋味，為甚麼仍會再跳入這個泡沫之中？
另一種說法是資訊科技熱潮正在翻身，當年泡沫爆破後，淘汰了大量的資訊科技公司，留下來的都是精華，另一隻內地網股百度在美國上市，PE也高達180倍以上，其他美國本土的網股，PE也遠遠高過其他企業，
這說明，留下來不死的都是發展潛力驚人的公司，也許，阿里巴巴的確可以小注玩一玩，上市追。除了阿里巴巴外，我發現美國資訊科技股的升勢近年來也遠遠跑贏大市，多隻資訊科技股的盈利都有驚人增長，高增長股高PE是自然的，美國資訊科技股的PE也維持在60倍以上，與今日內地A股差不多。
從這個角度來看，美國人也認同高增長高PE的概念，因此，我們不能死板板的說PE超過多少倍就是不好，低過多少倍就是好。
內地應開放汽油價格
美國的石油股PE就長期偏低，只有十幾倍，比中石油（857）低許多，原因固然是因為中石油是H股，有內地A股上市的概念支撐股價。
另一方面，中石油的開採地點主要是中國大陸本身，沒有政治風險，美國石油公司的油井分佈全球各地，有很大的政治風險，有石油的地方經常有戰爭，一場戰爭，石油減產，油井被炸，甚至被收歸國營，所有投資化為烏有。
昨天凌晨，中國政府宣佈石油的成品油（即汽油）加價8%，也許，這是回應近來廣東省多處地方油站不賣油的決定，或者，是油站老闆聽到風聲，知道汽油將加價，扣起汽油不賣，汽油加價，得益最大的就是中石化（386）。
過去，中石化煉油是虧本生意，得靠國家補貼來維持，但是，低油價導致鼓勵用油，高油價可以迫消費者節省用油，因此，開放汽油價格是將來中國政府應該努力做到的事。
作者為城市大學MBA課程主任 - 曾淵滄
我們似乎又回到1999年至2000年的資訊科技熱潮中，這是新的泡沫嗎？人人都試過當年泡沫爆破的滋味，為甚麼仍會再跳入這個泡沫之中？
另一種說法是資訊科技熱潮正在翻身，當年泡沫爆破後，淘汰了大量的資訊科技公司，留下來的都是精華，另一隻內地網股百度在美國上市，PE也高達180倍以上，其他美國本土的網股，PE也遠遠高過其他企業，
這說明，留下來不死的都是發展潛力驚人的公司，也許，阿里巴巴的確可以小注玩一玩，上市追。除了阿里巴巴外，我發現美國資訊科技股的升勢近年來也遠遠跑贏大市，多隻資訊科技股的盈利都有驚人增長，高增長股高PE是自然的，美國資訊科技股的PE也維持在60倍以上，與今日內地A股差不多。
從這個角度來看，美國人也認同高增長高PE的概念，因此，我們不能死板板的說PE超過多少倍就是不好，低過多少倍就是好。
內地應開放汽油價格
美國的石油股PE就長期偏低，只有十幾倍，比中石油（857）低許多，原因固然是因為中石油是H股，有內地A股上市的概念支撐股價。
另一方面，中石油的開採地點主要是中國大陸本身，沒有政治風險，美國石油公司的油井分佈全球各地，有很大的政治風險，有石油的地方經常有戰爭，一場戰爭，石油減產，油井被炸，甚至被收歸國營，所有投資化為烏有。
昨天凌晨，中國政府宣佈石油的成品油（即汽油）加價8%，也許，這是回應近來廣東省多處地方油站不賣油的決定，或者，是油站老闆聽到風聲，知道汽油將加價，扣起汽油不賣，汽油加價，得益最大的就是中石化（386）。
過去，中石化煉油是虧本生意，得靠國家補貼來維持，但是，低油價導致鼓勵用油，高油價可以迫消費者節省用油，因此，開放汽油價格是將來中國政府應該努力做到的事。
作者為城市大學MBA課程主任 - 曾淵滄
Dow plunges 362 points on credit fears
Citigroup downgrade reignites credit concerns and leaves major gauges sharply lower, wiping out Fed rate cut bounce.
NEW YORK (CNNMoney.com) -- What a difference a day makes.
The Dow industrials, a day after rallying on an interest rate cut by the Federal Reserve, suffered one of its biggest declines of the year on Thursday after a Citigroup downgrade reminded Wall Street that the crisis plaguing the credit crisis markets is lingering.
The Dow Jones industrial average finished 362 points, or 2.6 percent, lower, marking its biggest loss since Oct. 19 and the fourth-biggest point decline of the year.
The broader S&P 500 index lost 2.6 percent, while the tech-fueled Nasdaq lost nearly 2.3 percent.
The spark that sent major indexes lower was news that an analyst had downgraded banking giant Citigroup.
Citigroup shares, which finished 7 percent lower, tumbled after a CIBC World Markets analyst lowered her rating of the company's stock and warned that Citigroup may have to cut its dividend in order to raise $30 billion in capital. Citigroup decline to comment on the matter.
<--------- Deep impact!
NEW YORK (CNNMoney.com) -- What a difference a day makes.
The Dow industrials, a day after rallying on an interest rate cut by the Federal Reserve, suffered one of its biggest declines of the year on Thursday after a Citigroup downgrade reminded Wall Street that the crisis plaguing the credit crisis markets is lingering.
The Dow Jones industrial average finished 362 points, or 2.6 percent, lower, marking its biggest loss since Oct. 19 and the fourth-biggest point decline of the year.
The broader S&P 500 index lost 2.6 percent, while the tech-fueled Nasdaq lost nearly 2.3 percent.
The spark that sent major indexes lower was news that an analyst had downgraded banking giant Citigroup.
Citigroup shares, which finished 7 percent lower, tumbled after a CIBC World Markets analyst lowered her rating of the company's stock and warned that Citigroup may have to cut its dividend in order to raise $30 billion in capital. Citigroup decline to comment on the matter.
<--------- Deep impact!
Thursday, November 1, 2007
Some advices from a HK professional trader
議息前港股偏軟，這也是正常不過，皆因期指已結算，兼且大市炒得太高，議息結果仍是不明朗，自然有獲利盤湧現。
過往本人经常指出，期指結算後的數天是觀察期，要留意大戶的部署及期指倉底的變化。
期指未平倉合約只得109033張，尚未夠數，這數天應該會出現波動，大上大落。
表面走勢可能會是假象，目的只為挾倉或震倉，令大部份炒家聚在某一個方向，然後就殺倉。大市升到現水平，重磅藍籌炒到好似股仔一樣，大家不會以為仍可以用基本因素去解釋吧？難道仍會認為現時是入市追貨作長線投資的時機嗎？大行報告的目標價「開天索價」，打個7折也嫌多！
現時最佳的策略就是計算自己的承受風險能力，因應情況審時度勢。錢是不會賺得盡的，賺夠了便自己急流勇退吧！
貪念來之時，便小注短炒；要大貪便應知道會承受甚麼苦果.
<------ earned some money from HK Put warrant this morning based on his advices
過往本人经常指出，期指結算後的數天是觀察期，要留意大戶的部署及期指倉底的變化。
期指未平倉合約只得109033張，尚未夠數，這數天應該會出現波動，大上大落。
表面走勢可能會是假象，目的只為挾倉或震倉，令大部份炒家聚在某一個方向，然後就殺倉。大市升到現水平，重磅藍籌炒到好似股仔一樣，大家不會以為仍可以用基本因素去解釋吧？難道仍會認為現時是入市追貨作長線投資的時機嗎？大行報告的目標價「開天索價」，打個7折也嫌多！
現時最佳的策略就是計算自己的承受風險能力，因應情況審時度勢。錢是不會賺得盡的，賺夠了便自己急流勇退吧！
貪念來之時，便小注短炒；要大貪便應知道會承受甚麼苦果.
<------ earned some money from HK Put warrant this morning based on his advices
Oil smashes US$94 barrier on Fed rate cut, tight US supply
NEW YORK : Oil prices hit fresh record highs on Wednesday, with New York crude topping 94 dollars, after the Federal Reserve lowered interest rates and news of a surprise decline in US crude stocks.
New York's main futures contract, light sweet crude for delivery in December, soared 4.15 dollars to a record closing high of 94.53 a barrel, demolishing Monday's record of 93.80 dollars.
The New York contract earlier soared to a new intra-day peak of 94.74 dollars.
In London, Brent North Sea crude for December delivery jumped 3.19 dollars to settle at 90.63 dollars a barrel, also setting an intra-day all-time high, at 90.94 dollars.
Oil prices were boosted by the US Federal Reserve's decision to lower its base federal funds rate by a quarter of a percentage point to 4.50 percent.
The rate cut pushed the euro above 1.45 dollars for the first time, hitting 1.4504 dollars nearly an hour after the Fed's announcement. It had traded at 1.4441 dollars in New York on Tuesday.
A weak US unit encourages oil demand because it makes dollar-priced commodities cheaper for buyers using stronger currencies.
<------- That's the first impact
New York's main futures contract, light sweet crude for delivery in December, soared 4.15 dollars to a record closing high of 94.53 a barrel, demolishing Monday's record of 93.80 dollars.
The New York contract earlier soared to a new intra-day peak of 94.74 dollars.
In London, Brent North Sea crude for December delivery jumped 3.19 dollars to settle at 90.63 dollars a barrel, also setting an intra-day all-time high, at 90.94 dollars.
Oil prices were boosted by the US Federal Reserve's decision to lower its base federal funds rate by a quarter of a percentage point to 4.50 percent.
The rate cut pushed the euro above 1.45 dollars for the first time, hitting 1.4504 dollars nearly an hour after the Fed's announcement. It had traded at 1.4441 dollars in New York on Tuesday.
A weak US unit encourages oil demand because it makes dollar-priced commodities cheaper for buyers using stronger currencies.
<------- That's the first impact
Wall Street closes with a rally as Fed cuts rates
NEW YORK : Wall Street shares closed with a rally on Wednesday after the Federal Reserve, in a widely expected decision, cut short-term interest rates amid a persistent housing slump.
The Fed cuts its short-term federal funds interest rate by a quarter of a percentage point to 4.50 percent, saying it had acted amid fears that US economic growth will likely slow in coming months.
The Dow Jones Industrial Average finished up a hefty 137.54 points (1.00 percent) at 13,930.01 as Wall Street applauded the rate cut.
The tech-laden Nasdaq leapt 42.41 points (1.51 percent) to 2,859.12, while the broad-market Standard & Poor's 500 surged 18.36 points (1.20 percent) to 1,549.38.
"It was rally time on Wall Street. The market was treated to a Halloween Eve interest rate cut of 25 basis points," said Al Goldman, a chief market strategist for AG Edwards.
The financial markets rallied strongly in the wake of the Fed rate reduction and after a government report on Wednesday showed third quarter economic growth accelerated a notch to 3.9 percent.
The Fed slashed borrowing costs on September 18 by a more dramatic half a percentage point, but the ongoing housing slump - one of the worst in decades - persuaded the central bank to implement another cut.
"The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction," the Fed said in a statement.
The Fed said policymakers, led by Fed chairman Ben Bernanke, had reduced rates in an effort to keep the world's largest economy growing at a "moderate" pace.
<----------- The impact is coming soon
The Fed cuts its short-term federal funds interest rate by a quarter of a percentage point to 4.50 percent, saying it had acted amid fears that US economic growth will likely slow in coming months.
The Dow Jones Industrial Average finished up a hefty 137.54 points (1.00 percent) at 13,930.01 as Wall Street applauded the rate cut.
The tech-laden Nasdaq leapt 42.41 points (1.51 percent) to 2,859.12, while the broad-market Standard & Poor's 500 surged 18.36 points (1.20 percent) to 1,549.38.
"It was rally time on Wall Street. The market was treated to a Halloween Eve interest rate cut of 25 basis points," said Al Goldman, a chief market strategist for AG Edwards.
The financial markets rallied strongly in the wake of the Fed rate reduction and after a government report on Wednesday showed third quarter economic growth accelerated a notch to 3.9 percent.
The Fed slashed borrowing costs on September 18 by a more dramatic half a percentage point, but the ongoing housing slump - one of the worst in decades - persuaded the central bank to implement another cut.
"The pace of economic expansion will likely slow in the near term, partly reflecting the intensification of the housing correction," the Fed said in a statement.
The Fed said policymakers, led by Fed chairman Ben Bernanke, had reduced rates in an effort to keep the world's largest economy growing at a "moderate" pace.
<----------- The impact is coming soon
Wednesday, October 31, 2007
Asian Shares End Mostly Lower; Traders Await US Fed Decision
BANGKOK (AP)--Most Asian markets fell Tuesday amid anxiety ahead of the U.S. Federal Reserve's decision on interest rates.
Hong Kong still managed to edge up to its fourth straight record close on demand for Chinese bank shares.
In Tokyo, stocks slipped, hurt by a sharp drop in Japan's top drug maker Takeda Pharmaceutical after U.S. authorities requested more data for a drug under development.
The Nikkei average fell 0.28% to 16,651.01 on the Tokyo Stock Exchange. "The market has obviously taken (the Takeda news) very badly," said Junichi Misawa, a fund manager at STB Asset Management.
The market also met some profit-taking following recent gains in the Nikkei, he said. Adding to the drop were sluggish flows from overseas investors because of uncertainty over the Fed's decision on interest rates due Wednesday, said traders at foreign brokerages.
Takeda Pharmaceutical Co., Japan's largest drug maker by market capitalization, tumbled 12%. The U.S. Food and Drug Administration requested more data on the company's TAK-475 cholesterol-lowering drug Monday, delaying the planned submission for a new drug application.
Meanwhile, Hong Kong's Hang Seng Index rose to its fourth record close, as strong gains in mainland markets boosted demand for Chinese banks listed in the territory.
The Hang Seng rose 0.2% to 31,638.2 after briefly hitting an intraday record of 31,968.4. "Hot money continues to enter Hong Kong, taking up stocks with lower risks such as Chinese banks," said Y.K. Chan, a fund manager at Phillip Asset Management.
China Construction Bank led the gains, as it was lifted by continued buying interest after a slew of target price upgrades in response to the bank's better-than-expected earnings in the third quarter.
Shares in the bank rose 6.3%. Bank of Communications rose 1.6% on speculation that banking giant HSBC is still buying up more of the bank's shares from the open market, analysts said.
Property stocks fell, capping the Hang Seng's gains.
Sun Hung Kai Properties fell 5.9%, New World Development dropped 3.1%, Cheung Kong lost 2.7%, and Hang Lung Properties declined 3.5%.
In Tokyo currencies, the U.S. dollar was trading at Y114.46 at 0750 GMT, down from Y114.62 late Monday in New York.
The euro fell to US$1.4406 from US$1.4426. Thailand's main stock index fell 0.9% to 906.66 in line with regional markets and as energy stocks weakened with the fall of oil prices from record levels above US$93 a barrel.
Indonesia's benchmark index fell 0.2% to 2,662.9 in moderate volume.
Malaysia's Kuala Lumpur Composite Index rose 0.1% to a record close of 1,412.8.
Hong Kong still managed to edge up to its fourth straight record close on demand for Chinese bank shares.
In Tokyo, stocks slipped, hurt by a sharp drop in Japan's top drug maker Takeda Pharmaceutical after U.S. authorities requested more data for a drug under development.
The Nikkei average fell 0.28% to 16,651.01 on the Tokyo Stock Exchange. "The market has obviously taken (the Takeda news) very badly," said Junichi Misawa, a fund manager at STB Asset Management.
The market also met some profit-taking following recent gains in the Nikkei, he said. Adding to the drop were sluggish flows from overseas investors because of uncertainty over the Fed's decision on interest rates due Wednesday, said traders at foreign brokerages.
Takeda Pharmaceutical Co., Japan's largest drug maker by market capitalization, tumbled 12%. The U.S. Food and Drug Administration requested more data on the company's TAK-475 cholesterol-lowering drug Monday, delaying the planned submission for a new drug application.
Meanwhile, Hong Kong's Hang Seng Index rose to its fourth record close, as strong gains in mainland markets boosted demand for Chinese banks listed in the territory.
The Hang Seng rose 0.2% to 31,638.2 after briefly hitting an intraday record of 31,968.4. "Hot money continues to enter Hong Kong, taking up stocks with lower risks such as Chinese banks," said Y.K. Chan, a fund manager at Phillip Asset Management.
China Construction Bank led the gains, as it was lifted by continued buying interest after a slew of target price upgrades in response to the bank's better-than-expected earnings in the third quarter.
Shares in the bank rose 6.3%. Bank of Communications rose 1.6% on speculation that banking giant HSBC is still buying up more of the bank's shares from the open market, analysts said.
Property stocks fell, capping the Hang Seng's gains.
Sun Hung Kai Properties fell 5.9%, New World Development dropped 3.1%, Cheung Kong lost 2.7%, and Hang Lung Properties declined 3.5%.
In Tokyo currencies, the U.S. dollar was trading at Y114.46 at 0750 GMT, down from Y114.62 late Monday in New York.
The euro fell to US$1.4406 from US$1.4426. Thailand's main stock index fell 0.9% to 906.66 in line with regional markets and as energy stocks weakened with the fall of oil prices from record levels above US$93 a barrel.
Indonesia's benchmark index fell 0.2% to 2,662.9 in moderate volume.
Malaysia's Kuala Lumpur Composite Index rose 0.1% to a record close of 1,412.8.
Monday, October 29, 2007
Fund manager Franklin Templeton launches 38 new funds
SINGAPORE : In response to growing wealth management opportunities, international fund manager Franklin Templeton has expanded its offerings here with the launch of 38 new funds.
This brings the total number of Franklin Templeton funds in Singapore to 58.
The funds are available in multiple currencies for retail investors, including close to 30 funds denominated in Singapore dollars.
"We have expanded our offering of mutual funds in response to the growth of the wealth management industry in Singapore, said Mr Stephen Grundlingh, Franklin Templeton Investments' Singapore country head.
"It has been estimated that over the next 10 years, the wealth management industry in Asia will grow by US$350 billion (S$508 billion) as a result of inter-generational wealth transfer and the younger generation's preference to delegate the management of their investments to discretionary wealth managers."
Mr William Tan, head of sales at Franklin Templeton Investments Singapore, added: "This expanded range of funds enables (investors) to diversify their portfolios by investing in specific asset classes like commodities, and also allows investors to benefit from different investment styles - for instance, a more aggressive investor can pick a growth fund, and might even prefer one focused on Asia."
A sampling of the new funds include the Franklin Asian Flex Cap Fund, which allows investors to tap into large and small cap companies benefiting from rapid growth across Asia, and the Templeton Emerging Markets Smaller Companies Fund targeting small caps that have the potential to grow into blue chips.
<------ Last para most useful to know...
This brings the total number of Franklin Templeton funds in Singapore to 58.
The funds are available in multiple currencies for retail investors, including close to 30 funds denominated in Singapore dollars.
"We have expanded our offering of mutual funds in response to the growth of the wealth management industry in Singapore, said Mr Stephen Grundlingh, Franklin Templeton Investments' Singapore country head.
"It has been estimated that over the next 10 years, the wealth management industry in Asia will grow by US$350 billion (S$508 billion) as a result of inter-generational wealth transfer and the younger generation's preference to delegate the management of their investments to discretionary wealth managers."
Mr William Tan, head of sales at Franklin Templeton Investments Singapore, added: "This expanded range of funds enables (investors) to diversify their portfolios by investing in specific asset classes like commodities, and also allows investors to benefit from different investment styles - for instance, a more aggressive investor can pick a growth fund, and might even prefer one focused on Asia."
A sampling of the new funds include the Franklin Asian Flex Cap Fund, which allows investors to tap into large and small cap companies benefiting from rapid growth across Asia, and the Templeton Emerging Markets Smaller Companies Fund targeting small caps that have the potential to grow into blue chips.
<------ Last para most useful to know...
Saturday, October 27, 2007
Oil price hits record high on Iran tensions, supply concerns
NEW YORK : World oil prices surged to historic highs Friday, breaching 92 dollars for the first time in New York amid rising tension in crude-rich Iran and tightening US energy supplies.
New York's main futures contract, light sweet crude for delivery in December, soared to a record intraday high of 92.22 dollars per barrel before settling at an all-time closing high of 91.86 dollars, up 1.40 dollars on the day.
In London, Brent North Sea crude for December delivery struck an all-time pinnacle of 89.30 dollars per barrel Friday. It later settled at 88.69 dollars, up 1.21 dollars.
Crude futures have rocketed by about 10 dollars in a month and by 30 dollars, or 50 percent, in a year.
"Supply tightness and developments surrounding Iran remain the focus of attention," Sucden analyst Michael Davies said Friday.
The United States on Thursday ratcheted up pressure on Iran over its nuclear drive and alleged backing for terrorism with a raft of new sanctions against the Islamic republic's military and banks.
<----------- Another historic high... US$100 a barrel is definitely a big possibility by end 2007
New York's main futures contract, light sweet crude for delivery in December, soared to a record intraday high of 92.22 dollars per barrel before settling at an all-time closing high of 91.86 dollars, up 1.40 dollars on the day.
In London, Brent North Sea crude for December delivery struck an all-time pinnacle of 89.30 dollars per barrel Friday. It later settled at 88.69 dollars, up 1.21 dollars.
Crude futures have rocketed by about 10 dollars in a month and by 30 dollars, or 50 percent, in a year.
"Supply tightness and developments surrounding Iran remain the focus of attention," Sucden analyst Michael Davies said Friday.
The United States on Thursday ratcheted up pressure on Iran over its nuclear drive and alleged backing for terrorism with a raft of new sanctions against the Islamic republic's military and banks.
<----------- Another historic high... US$100 a barrel is definitely a big possibility by end 2007
Friday, October 26, 2007
AirAsia plans to roll out Kuala Lumpur-S'pore flights by December
MALAYSIA : Malaysian budget carrier AirAsia hopes to roll out its Kuala Lumpur-Singapore flights by December.
AirAsia's CEO Tony Fernandez said the carrier plans to charge less than a third of the fares levied by Singapore Airlines (SIA) and Malaysia Airlines (MAS), although he will let market forces determine the final pricing.
Fernadez was responding to the Malaysian government's announcement that it'll let AirAsia operate two flights a day on the lucrative route.
Currently, national carriers SIA and MAS are the only ones allowed to fly between the two cities, charging more than US$200 for a round trip.
Speaking at a news conference, Fernadez said the launch of AirAsia's new service will depend on how soon both countries can iron out a bilateral air agreement.
He said he was thrilled by the development, as the opening up of the route will benefit the budget carrier significantly.
"Of course it's a cash cow. MAS charges 800 ringgit for the 30-minute flight. We only charge 60 ringgit to JB. You work out the sums," said AirAsia's CEO.
Once the ASEAN Open Skies Agreement comes into force in 2009, AirAsia aims to operate at least 20 flights a day to Singapore.
It plans to add another 25 planes to its current fleet of 150. - CNA /ls
<--------- Cool! Flying from Penang or KL to Singapore will be much cheaper by then
AirAsia's CEO Tony Fernandez said the carrier plans to charge less than a third of the fares levied by Singapore Airlines (SIA) and Malaysia Airlines (MAS), although he will let market forces determine the final pricing.
Fernadez was responding to the Malaysian government's announcement that it'll let AirAsia operate two flights a day on the lucrative route.
Currently, national carriers SIA and MAS are the only ones allowed to fly between the two cities, charging more than US$200 for a round trip.
Speaking at a news conference, Fernadez said the launch of AirAsia's new service will depend on how soon both countries can iron out a bilateral air agreement.
He said he was thrilled by the development, as the opening up of the route will benefit the budget carrier significantly.
"Of course it's a cash cow. MAS charges 800 ringgit for the 30-minute flight. We only charge 60 ringgit to JB. You work out the sums," said AirAsia's CEO.
Once the ASEAN Open Skies Agreement comes into force in 2009, AirAsia aims to operate at least 20 flights a day to Singapore.
It plans to add another 25 planes to its current fleet of 150. - CNA /ls
<--------- Cool! Flying from Penang or KL to Singapore will be much cheaper by then
SGX plans to introduce Single Stock Derivatives
SINGAPORE : The Singapore Exchange is planning to introduce Single Stock Derivatives (SSDs) in the first quarter of next year.
SSDs are exchange-listed derivatives on single underlying securities which are listed or quoted on SGX.
They will be the first margin-based exchange traded product in Singapore.
The new product class will allow investors to buy into an underlying stock at an agreed price on the day of trade.
The trade will then be settled at a future date.
The proposed launch is aimed at expanding the current suite of equity derivatives available to investors.
SSDs will pave the way for more varied exchange traded equity derivatives products to be introduced and allow for hedging and arbitraging opportunities.
Its proposed introduction will involve additions and amendments to the SGX Securities Trading Rulebook, as well as the Central Depository Clearing Rulebook.
The exchange is inviting public comments on the proposed amendments to its business rules. - CNA/ms
SSDs are exchange-listed derivatives on single underlying securities which are listed or quoted on SGX.
They will be the first margin-based exchange traded product in Singapore.
The new product class will allow investors to buy into an underlying stock at an agreed price on the day of trade.
The trade will then be settled at a future date.
The proposed launch is aimed at expanding the current suite of equity derivatives available to investors.
SSDs will pave the way for more varied exchange traded equity derivatives products to be introduced and allow for hedging and arbitraging opportunities.
Its proposed introduction will involve additions and amendments to the SGX Securities Trading Rulebook, as well as the Central Depository Clearing Rulebook.
The exchange is inviting public comments on the proposed amendments to its business rules. - CNA/ms
Buffett: Expect more subprime pain
Billionaire investor sees problems in the subprime market affecting consumers for up to 2 years, but expresses confidence in U.S. economy. October 25 2007: 4:19 AM EDT
DAEGU, South Korea (AP) -- American billionaire investor Warren Buffett said Thursday that problems in the U.S. subprime mortgage market will likely weigh on consumers for up to two years, but that the U.S. economy will weather the storm.
The subprime problem "is having an impact," Buffett said on his first visit to South Korea. "It will have more of an impact."
Rising default rates among U.S. mortgage holders with poor credit histories have rattled global credit, stock and currency markets since August and raised concerns about a possible recession in the U.S. economy, a major export market for Asian companies.
"In the next 6 months, one year, two years the problems in the mortgage market can cause a lot of problems with consumers and hurt buying power in the United States," he said at a press conference after arriving earlier in the day from China on his private jet.
However, the U.S. economy has often had to face various difficulties and the present was no exception, Buffett said.
"Overall the economy will make progress," he said.
Buffett came to Daegu, located about 180 miles southwest of Seoul, to inspect Iscar Korea, a subsidiary of Iscar, the Israeli industrial tool manufacturer that his company, Berkshire Hathaway Inc. (Charts, Fortune 500), purchased last year for $4 billion, its first overseas acquisition.
Buffett also expressed pessimism on the U.S. dollar.
"We still are negative on the dollar relative to most major currencies," he said.
The dollar has fallen against the euro, British pound, Japanese yen, Indian rupee and many other Asian and European currencies this year. The euro, for example, has gained 8 percent against the dollar this year.
Buffett spoke highly of South Korean stocks, including steelmaker Posco, saying he first became attracted to them years ago because he saw that they were far too undervalued.
He said he feels that currently South Korean stocks in general are valued at prices that "are no higher and probably somewhat less" than stocks in the United States.
Buffett said that Berkshire Hathaway owns the equivalent of 3.4 million shares in Posco.
In March, Buffett said in his annual letter that Berkshire in 2006 bought 3.49 million shares, or 4 percent, of South Korean steelmaker Posco. Berkshire spent $572 million on the Posco shares, which were worth $1.16 billion at the end of 2006.
That would be worth considerably more now as Posco have more than doubled this year.
Merrill takes $7.9B mortgage hit
DAEGU, South Korea (AP) -- American billionaire investor Warren Buffett said Thursday that problems in the U.S. subprime mortgage market will likely weigh on consumers for up to two years, but that the U.S. economy will weather the storm.
The subprime problem "is having an impact," Buffett said on his first visit to South Korea. "It will have more of an impact."
Rising default rates among U.S. mortgage holders with poor credit histories have rattled global credit, stock and currency markets since August and raised concerns about a possible recession in the U.S. economy, a major export market for Asian companies.
"In the next 6 months, one year, two years the problems in the mortgage market can cause a lot of problems with consumers and hurt buying power in the United States," he said at a press conference after arriving earlier in the day from China on his private jet.
However, the U.S. economy has often had to face various difficulties and the present was no exception, Buffett said.
"Overall the economy will make progress," he said.
Buffett came to Daegu, located about 180 miles southwest of Seoul, to inspect Iscar Korea, a subsidiary of Iscar, the Israeli industrial tool manufacturer that his company, Berkshire Hathaway Inc. (Charts, Fortune 500), purchased last year for $4 billion, its first overseas acquisition.
Buffett also expressed pessimism on the U.S. dollar.
"We still are negative on the dollar relative to most major currencies," he said.
The dollar has fallen against the euro, British pound, Japanese yen, Indian rupee and many other Asian and European currencies this year. The euro, for example, has gained 8 percent against the dollar this year.
Buffett spoke highly of South Korean stocks, including steelmaker Posco, saying he first became attracted to them years ago because he saw that they were far too undervalued.
He said he feels that currently South Korean stocks in general are valued at prices that "are no higher and probably somewhat less" than stocks in the United States.
Buffett said that Berkshire Hathaway owns the equivalent of 3.4 million shares in Posco.
In March, Buffett said in his annual letter that Berkshire in 2006 bought 3.49 million shares, or 4 percent, of South Korean steelmaker Posco. Berkshire spent $572 million on the Posco shares, which were worth $1.16 billion at the end of 2006.
That would be worth considerably more now as Posco have more than doubled this year.
Merrill takes $7.9B mortgage hit
Subscribe to:
Posts (Atom)
