Weekly Market Summary

by Raymond Chatlani

On Monday, Asian stockmarkets rose as investors reacted positively to the G20 statement that they would avoid competitive devaluations between their nations. European markets especially commodity stocks rose as the US Dollar fell on the back of the G20 statement. US stocks rose modestly as US existing home sales soared 10% in September.

On Tuesday, Asian markets were mixed making only small gains or losses. European stocks fell as European corporate earnings mostly left investors disappointed ahead of more releases from the U.S. and Asia. Disappointing earnings and a slightly stronger US Dollar sent US stocks lower but these recovered at the close and closed slightly positive.

On Wednesday, Asian indices fell as investors pared positions and took some profits on quantitive easing uncertainty as they wait for the outcome of the Federal Open market Committee meeting next week on 2-3 November and as South Korea's GDP slowed sharply to 0.7% in the third quarter from 1.4% in the second quarter of 2010. European stocks fell on lower commodity prices as doubts grew over the size of the next economic stimulus. US markets fell as investors questioned whether the Federal Reserve's expected plan to buy Treasury bonds might be as big as anticipated.

On Thursday, Asian stocks mostly rose modestly ahead of earnings from the region's major companies and amid uncertainty over the size of the U.S. Federal Reserve's bond-buying program aimed at stimulating the economy. European markets rose on strong corporate earnings and a weaker US Dollar. US stocks closed flat as investors dug through a raft of earnings reports that painted a mixed picture about the economy.

This morning, Asian markets sank amid weak Japanese factory production figures as investors trimmed bets ahead of a U.S. economic reports on gross domestic product, consumer sentiment and manufacturing and likely Federal Reserve stimulus measures. Japan's industrial production fell for the fourth straight month in September, underscoring the country's fragile recovery as factory output tumbled 1.9 percent from the previous month as makers of cars and electronic devices cut production, much worse than a 0.6 percent fall forecast by analysts. European markets were modestly up on a weaker US Dollar. US stocks were flat on reports that GDP grew 2% in the third quarter which is considered too low to create employment.

For the second week in a row, markets and commodities have fluctuated without any sense of direction although corporate earnings in the US, UK and EU have exceeded earning expectations. Investors are largely ignoring fundamentals of improving economies to drive stocks higher. Rather, investors are waiting for the FEDS announcement after their meeting on 2-3 November 2010 as to how large their programme of quantitive easing will be. If the amount of quantitive easing will not be up to expectations then this rally will probably be over as traders will book profits.

Hollingsworth Daily Post

• The Swiss banking giant, UBS, has reported a net profit of 1.66bn Swiss francs ($1.65bn, £1.1bn) for the three months to the end of September.The number was boosted by a major one-off tax credit of 825m francs.It compares with a loss of 564m for the same three months last year.The bank - Switzerland's biggest - said it had suffered difficult market conditions, marked by low levels of client activity, and had also been hit by a rise in the franc.The Swiss currency has strengthened against both the dollar and the euro.UBS made a net profit of 2bn Swiss francs in the April-to-June quarter.
• The UK's economy grew at 0.8% between July and September, official figures show, suggesting the economy is recovering faster than expected.It follows 1.2% growth in the second quarter of the year, and is double the 0.4% expected by analysts.The gross domestic product (GDP) figures released by the Office for National Statistics (ONS) is only a first estimate, and may be revised.
• Bank of England Governor Mervyn King has attacked the 'absurd' level of risk taken on by banks in a speech.He called the banks' reliance on short-term debt to meet funding needs in 2008 an "accident waiting to happen".He said that, in future, banks must be forced to rely much more on equity to finance their risky activities.His comments raise the prospect that big UK banks will be required to hold significantly more equity than new international rules require.
• ArcelorMittal, the world's biggest steel company, has said profits jumped 48% in the three months to the end of September compared with the same period a year earlier.Third-quarter net profit was $1.35bn (£858bn), up from $910m a year earlier.Sales increased by 30% against a year ago, to $21.04bn.But compared with the second quarter this year, earnings were down and the company warned of higher raw materials prices and slowing demand.ArcelorMittal's chairman, Lakshmi Mittal, said the business had not matched expectations and that he was uncertain about the final three months of the year.

BBC Business News 27 October 2010

Hollingsworth Daily Post

• The Singapore stock exchange (SGX) has unveiled a multi-billion dollar bid for the company that owns the Australian Stock Exchange (ASX) in Sydney.If approved, the $8.3bn takeover would mark the first stock exchange merger in the Asia Pacific region.The deal would enhance Singapore as a major financial hub in the region and benefit Australian investors by giving them greater access to Asian markets.A merged exchange would hope to compete more effectively with Hong Kong.ASX shares soared more than 20% to A$43.49 ($43.17) after the announcement, while SGX shares fell back 4.35% to S$9.13 ($7.05).
• US Treasury Secretary Timothy Geithner has said he believes China is now "committed" to allowing the yuan to go up in value.Mr Geithner made the comment in a TV interview before he held talks with China's Vice-Premier, Wang Qishan.The US has long said China keeps the value of the yuan artificially low to make its exports more competitive, something Beijing denies.On Saturday, G20 finance ministers said they would refrain from such tactics.Finance ministers from the G20 leading economies have agreed reforms of the International Monetary Fund, giving major developing nations more of a say.At a meeting in South Korea, they agreed a shift of about 6% of the votes in the IMF towards some of the fast-growing developing countries.Those nations will also have more seats on the IMF's Board, while Western Europe will lose two seats.But the US will retain the veto it has over key decisions.Such decisions require an 85% vote - Washington holds 17% under the IMF's weighted voting system.The ministers also agreed to refrain from competitive devaluations of their currencies and move towards more market-determined currency systems.
• The French Senate has passed a controversial pension reform bill, which has caused a series of strikes and protests around France.The senators approved President Nicolas Sarkozy's plan to raise the retirement age from 60 to 62, and it could become law as early as next week.Mr Sarkozy says the measure is necessary to reduce the deficit.
• Indian tax authorities have given Vodafone 30 days to pay a 112bn rupee ($2.5bn, £1.6bn) tax bill, as part of an ongoing tax dispute.The formal demand relates to the mobile phone company's 2007 purchase of the Indian telephone assets of Hong Kong conglomerate Hutchison Whampoa.Vodafone will appeal against the tax at the Indian supreme court on Monday.The firm says the $11bn transaction was exempt from tax because it took place between two offshore entities.
• The Cuban government has outlined the taxes that will have to be paid by the country's growing number of self-employed workers.It is the latest stage of President Raul Castro's reforms to move Cuba away from a solely state-run economy.Self-employed workers will have to pay 10% income tax, while those who take on staff will pay more.It comes after the government announced last month that it was laying off half a million state workers.Cuba's new tax code is detailed in the latest edition of the country's Communist Party newspaper - Granma.
• Spanish airport operator Ferrovial has said it will sell a 10% stake in BAA, the operator of Heathrow airport.The partial sale would help the Spanish company establish a market value for its stake, said Ferrovial's chief executive, Inigo Meiras."Heathrow is one of the best infrastructure assets in the world," boasted Mr Meiras, who reaffirmed his company's long-term commitment to BAA.Proceeds will be used to fund other investments and to pay down debts.

BBC Business News 25 October 2010

Weekly Market Summary

By Raymond Chatlani

On Monday, Asian indices fell except for New Zealand which was flat as the US Dollar strenghtened, rising moderately from recent lows. European markets were up on financials as Citigroup reported a profit for the third quarter in a row as losses from failed loans declined. US stocks rose on earnings reports.

On Tuesday, Asian markets all rose except for New Zealand and South Korea. European indices fell on miners and tech, though banks were firm. US stocks tanked as shares in U.S. banks fell on renewed concern over mortgage foreclosure and on news that China increased interest rates for the first time in 3 years and on mixed earnings from corporate heavyweights which disappointed investors.

On Wednesday, Asian stocks and commodity markets fell except for South Korea and Taiwan as the US Dollar strengthened after the Chinese rate hike reflecting concern that higher rates will slow chinese growth. European indices were mixed on the UK announcement of the largest cuts in public spending since world war 2 in a 5 year austerity plan but closed mostly modestly positive before the close on US earnings reports. US markets rose following strong earnings reports from manufacturing and airline companies.

On Thursday, Asian equities closed mixed on reports that China's GDP slowed down to 9.6% in the third quarter of this year from 10.3% over the second quarter. European markets rose as corporate results exceeded expectations. US stocks climbed for a second day after the Labor Department said first-time claims for unemployment benefits fell last week and on upbeat earnings as Caterpillar Inc., Travelers Cos. and McDonald's Corp. all beat expectations and AT&T Inc. matched forecasts, but only closed modestly higher as the US Dollar rebounded.

This morning, Asian stock markets were mostly higher after a slew of better-than-expected U.S. earnings but gains were tempered as currency tensions overshadowed a summit of major economies (G20) who are meeting today and tomorrow in South Korea to discuss reforms to the global economy. European markets fell modestly as traders took some profit before the G20 summit that is to be held this weekend. US indices are mixed and fluctuating in a tight range as investors pour through another batch of earnings looking for clues as to the health of the US economy.

This week both stockmarkets and commodities traded within tight ranges as on the one hand company earnings are beating expectations and on the other hand tensions are simmering between nations as they may start a currency war.

We still believe that this rally will continue and we may have entered a period of consolidation before the next leg up.

Hollingsworth Daily Post

• Finance ministers from the G20 leading economies are meeting in Gyeongju, South Korea, ahead of a summit by heads of state and government next month.Continuing tensions over exchange rates are likely to dominate proceedings.China is resisting pressure to allow the yuan to appreciate significantly, and many developing countries also fear a currency rise could hit exports.Low interest rates in wealthy countries have encouraged investors to seek better returns in emerging economies.
• Saskatchewan province, home to Potash Corporation, has asked the Canadian government to block mining giant BHP Billiton's hostile bid for the fertiliser group.The province's governor said the takeover was not in the interests of Saskatchewan or of Canada.Last month, Potash asked a US court to block the bid.The Anglo-Australian mining group offered $39bn (£25bn) for the firm in August.
• AIA, the Asian arm of US insurance giant AIG, has announced the price of a share offering that it hopes will raise about $18bn (£11.4bn).Shares will be priced at 19.68 Hong Kong dollars ($2.53; £1.61) when they begin trading next week.The money raised will be used to help AIG repay the US government, which bailed out the insurer during the financial crisis.AIG failed to sell AIA to UK insurer Prudential earlier this year.AIG is 80%-owned by the US government after it was bailed out for $182bn during the financial crisis.Last month, the company announced plans to begin repaying the US taxpayer.
• Quarterly profits at Chinese internet search engine Baidu have more than doubled as it benefits from Google's troubles in the country.Net profit between July and September came in at 1.1bn yuan ($158m; £100m) compared with 492m yuan a year earlier.Revenue for the quarter was 2.3bn yuan, slightly above analysts' expectations.Baidu now commands more than 70% of China's search engine market, a figure that has risen following Google's spat with the Chinese authorities.Earlier this year, Google threatened to pull out of China in a row over censorship.
• The online retailer, Amazon, has reported a 16% rise in third-quarter profit, as its Kindle e-book reader continues to bolster sales.Amazon made a net profit of $231m (£147m) in the three months to September, up from the $199m it made in the same period a year earlier.Revenues rose 39% to $7.56bn.But the firm also said that its total operating expenses rose more than 40% to $7.29bn, sending its shares down 5% in after-hours trading.
• UK broadcaster BSkyB added 96,000 new customers in the three months to 30 September, leaving it just shy of 10 million in total.Analysts had predicted an increase of only about 69,000 subscribers.Total revenues were £1.53bn ($2.41bn), a 15% rise on a year ago, as customers took up a broader range of services."We have made a very good start to the year with... a record take-up of our additional subscription products," said chief executive Jeremy Darroch.

BBC Business News 22 October 2010

Hollingsworth Daily Post

• China says its economy has maintained robust growth in the third quarter of 2010, albeit at a slightly lower rate.Official figures show a drop from just over 10% growth to 9.6%, still far ahead of any other major economy.The Chinese government has been taking measures to cool a credit boom in order to achieve more sustainable growth levels.Meanwhile consumer prices rose at the fastest pace in nearly two years in September, official data showed.
• Toyota has announced a recall of more than 1.5 million cars worldwide over brake and fuel pump defects.The carmaker said the decision affected certain Avalon, Highlander and Lexus cars, including 740,000 cars in the US, 600,000 in Japan and 17,000 in the UK.It wants to ensure that fluid does not leak from the brake master cylinder, causing the warning light to turn on.The fault could cause the brake pedal to feel spongy, and braking performance to "gradually decline".
• Credit Suisse's profits fell 74% in the third quarter, thanks to choppy stock markets hitting its investment bank.The Swiss bank earned 609m Swiss francs ($630m, £400m) during the three months, down from 2.4bn francs a year ago.Investment banking revenues fell by 30%, mainly because of low client activity in the group's equity advisory and underwriting businesses.Stock markets took a battering over the summer because of fears over eurozone debt and a US double-dip recession.
• Chancellor George Osborne has defended the "fairness" of his UK spending cuts after Labour claims they were reckless and would hit the poorest hardest.He told the BBC that, including Budget measures, the top 10% of earners would be hit hardest but everyone was making a contribution to cutting the deficit.He said "the path to economic ruin" lay ahead if the deficit was not tackled.
• UK retail sales fell again September, the second month in succession they have declined, official data has shown.Sales last month were 0.2% lower than August, led by falls in clothing and car fuel sales, said the Office for National Statistics (ONS).The ONS also revised down August's decline, saying sales that month slipped by 0.7% compared with its original calculation of 0.5%.The data comes as a number of retailers have warned of weak trading conditions.
• Apple is cashing in on the popularity of its iPhone and iPad to boost demand for its oldest product, the Macintosh.The company announced that its popular app store for the iPhone and the iPad would soon be coming to its laptops.It also launched a revamped MacBook Air at an event at its headquarters.The computer is seen as a marriage of what Apple has learned from desktop computing and mobile devices. Like the iPad, the Air will have no hard drive and rely on flash memory.

BBC Business News 21 October 2010

Hollingsworth Daily Post

• Chancellor George Osborne is setting out details of the biggest programme of public spending cuts attempted by a UK government since the Second World War.Unveiling his Spending Review in the Commons, Mr Osborne is expected to cut the budgets of Whitehall departments by an average of 25% - or £83bn in total.He vowed "fairness" would underpin the cuts, telling MPs "those with the most should pay the most".He also insisted economic growth and reform were at the heart of his plans.He began his statement by saying: "Today is the day when Britain steps back from the brink, when we confront the bills from a decade of debt."
• Mining giant Rio Tinto has announced a $3.1bn (£2bn) expansion of its Australian iron ore operations in what it calls the "largest ever mining project" undertaken in the country.The move would increase production by almost 30%, from 220 million tonnes to 283 million tonnes, the company said.The announcement comes just two days after Rio and BHP Billiton dropped plans to combine their Australian iron ore operations.
• Euro MPs have backed a controversial draft law to extend maternity leave to 20 weeks on full pay and make that mandatory in the EU.UK business leaders and Conservative MEPs lobbied against the proposal. The European Commission earlier recommended an extension to 18 weeks.One assessment said the 20-week proposal could cost UK businesses an extra £2.5bn (2.8bn euros) a year. Minimum maternity leave in the EU is currently 14 weeks.Even though MEPs have approved the 20-week plan it cannot become law unless EU governments back it too, and the UK's coalition government is among those lobbying against it.
• The Bank of England's Monetary Policy Committee was split three ways during its October meeting, released minutes have revealed.Seven of its members voted for no change to interest rates and no additional stimulus spending, while one person wanted to see rates rise.The ninth member, Adam Posen, voted to see quantitative easing (QE) - the bank's main stimulus measure - restart.This is the means by which the Bank puts more money into the economy.The French government has used the security forces to lift blockades by strikers at three fuel depots serving the west of the country.President Nicolas Sarkozy has authorised police to break all remaining blockades at fuel depots.French workers are taking their rolling strike against planned pension reforms into its seventh day.Masked youths have been roaming the streets of the Paris suburb of Nanterre, skirmishing with police.In the centre of Paris, hundreds of students gathered outside the Senate, chanting, "Resistance".The Senate, the upper house of the French legislature, is due to vote on the proposed retirement age later this week.
• British Airways cabin crews are to be balloted on a new deal that could end their long-running industrial dispute.The new offer was reached in talks between BA chief executive Willie Walsh and Unite joint leader Tony Woodley.The union has been pressing for the restoration of travel concessions removed from members who went on strike earlier in the year.It has also been trying to reverse disciplinary sanctions imposed on union members during the dispute.

BBC Business News 20th October 2010

Hollingsworth Daily Post

by Raymond Chatlani

On Monday, Asian indices were all higher except for South Korea and Taiwan as investors plowed cash into stocks amid expectations the U.S. Federal Reserve will take action to prevent the American economy from slipping back into recession. European stocks followed Asia's momentum on hopes for US Feds action. US markets ended flat before the start of a busy earnings week.

On Tuesday, Asian markets fell except for China amid reports China had raised reserve requirements for banks to cool lending and as investors awaited earnings from U.S. companies. China told its top six banks to increase reserves in a new move to control lending as Beijing tries to cool inflation and housing prices without derailing its recovery from the global slump. European indices fell modestly on China's aim to curb lending. US stocks opened mixed but closed higher upon the release of the minutes from the FOMC's meeting on September 21. According to the minutes, members of the FOMC are prepared to provide additional accommodation, if needed, to support the economic recovery and to return inflation, over time, to levels consistent with the FOMC mandate. In other words, further quantitive easing.

On Wednesday, Asian stocks rose following an upbeat fourth-quarter forecast from computer chipmaker Intel last night and as Japan's machinery orders, a closely watched indicator of future business investment, rose 10.1% from the previous month which was far better than a 4.0 percent drop projected by economists, marking the third straight month of growth. European shares rocketed after the minutes of the FOMC suggested it was closer to introducing fresh stimulus measures to support the economy. US markets rose after solid earnings news and on hopes for further quantitative easing.

On Thursday, gold hit a new high of $1,379 an ounce with silver exceeding $24 an ounce. Asian stockmarkets rose except for India which was flat following better than expected earnings by US corporations. European markets were mostly lower except for Germany. US stocks edged lower after another disappointing report on jobs where weekly jobless claims rose by 462,000 , but losses were limited because traders expect the Federal Reserve will act soon to strengthen the economy.

This morning Asian indices were mostly lower as the US jobs market remains weak and on a strenghtening Japanese Yen with South Korea, Singapore and China rising; the latter rocketing 2.88%. European markets were mostly lower except for germany. US markets declined as consumer sentiment unexpectedly dipped in early October to its weakest level since July, with buying plans on the decline, a survey released Friday showed. The Nasdaq rose on Intel's and Google's strong earnings.

Hollingsworth Daily Post

• The US trade deficit was wider than expected in August, figures have shown, in the wake of record imports from China.US Commerce Department figures showed the gap between imported and exported goods grew by 8.8% to $46.4bn (£29bn).Imports from China grew 6.1% in August to a record $35.3bn. The US trade deficit with China also set a new record of $28.0bn.US exports to China remained essentially unchanged at $7.3bn.
• The US dollar has reached another fresh 15-year low against the Japanese yen at the end of trading in Tokyo.The dollar was worth as little as 81.12 yen at one stage, just above the post World War II low of 79.75 yen.The dollar's continued fall reflects speculation that the US Federal Reserve will expand its quantitative easing programme.But Japan's central bankers have also repeatedly threatened further action to curb the recent rises in the yen. A strong yen is hurting Japanese export companies, which are relied upon to spearhead a recovery in Japan's struggling economy.
• Mining company Rio Tinto says it has produced record quantities of iron ore in the past quarter, thanks to a surge in demand from China.47.6 million tonnes of the ore in the three months to September.China is continuing to import huge amounts of the ore for steel production.Rio Tinto's Australia-listed shares rose to a two-year high in response to the news.In London, its shares were up more than 1.5% in the first hour of trading.
• South Korea's central bank has kept interest rates on hold at 2.25% following its latest policy meeting.The decision came as a surprise as most economists had expected an interest rate rise to 2.5%.The Bank of Korea (BoK) had left the rate at a record low 2% for 17 months in response to the economic downturn, before raising it to 2.25% in July.The bank said it was not the right time to be raising the cost of borrowing in what is Asia's fourth-largest economy.
• More than one quarter of loans to Chinese local government are at risk of default, according to a report.About two trillion yuan ($300bn; £187bn), or 26% of the 7.66tn in loans to local authority financing vehicles, is at risk says state media.The figures, published in the official China Securities Journal (CSJ), were slightly higher than prior estimates which put 23% of these loans at risk.In 2009, banks lent heavily to regional financing vehicles for construction.
• Stationery and books chain WH Smith has reported better-than-expected profits - helped by a strong performance at its stores in airports, train stations and motorway service stations.Pre-tax profits were £89m in the year to 31 August, up 9% from last year.The profits rise came despite a 4% fall in like-for-like sales.At WH Smith's 516 stores at travel locations, profits increased by 10% after the retailer improved profit margins.
• All 50 US states have started a joint investigation into whether mortgage firms were wrong to repossess hundreds of thousands of homes.It follows allegations that the companies often mishandled documents when people behind on their mortgages had their houses taken from them.According to industry figures, more than 2.5 million US homes have been repossessed since December 2007.

BBC Business News 14 November 2010

Hollingsworth Daily Post

• The gap between China's imports and exports narrowed in September, official data has shown.But analysts say the decline is unlikely to ease the pressure on Beijing to strengthen its currency.The US has been among its strongest critics, claiming China deliberately undervalues the yuan, boosting China's exports by making them cheap.
• JP Morgan has reported a 23% rise in profit in the third quarter, as the bank was able to set aside less money to cover loan losses.The company reported a net profit of $4.4bn (£2.8bn), compared with a profit of $3.6bn a year ago.The bank set aside $1.55bn for retail credit losses during the quarter, less than half the $3.99bn it set aside during the third quarter of 2009.
• Standard Chartered has announced plans to bolster its balance sheet, issuing £3.3bn of shares in the banking group.The move follows global rules agreed last month on how much capital banks should hold in reserve.The new regulations, called Basel III, were designed to prevent another financial crisis.Standard said it saw many opportunities for growth across Asia, Africa and the Middle East but that these would be limited unless more money was raised.
• The number of people unemployed in the UK fell by 20,000 to 2.45 million in the three months to August.This meant the overall UK unemployment rate fell to 7.7% from 7.8% the Office for National Statistics (ONS) said.However, the figures also showed the claimant count - those out of work and receiving unemployment benefit - rose by 5,300 in September to 1.47 million.
• Tom Hicks and George Gillett have failed in their High Court attempt to wrest back control of Liverpool.The unpopular American co-owners had tried to oust the boardroom rivals that had sanctioned the sale of the club to New England Sports Ventures (NESV).But Mr Justice Floyd ruled they did not have the power to do so.The decision means the sale to NESV can proceed, although club chairman Martin Broughton hinted rival bids may now be considered at a meeting on Wednesday."I am absolutely elated, it's a very important day for our club," said Broughton as he left the Royal Courts of Justice in London."This will clear the way for the sale, we will have a board meeting this evening and proceed with the sale.
• French strikers are disrupting services for a second day running, as they seek to build pressure on the government over its pension reform plans.Tuesday saw the biggest strikes and demonstrations so far in the campaign, and several unions say they will continue their stoppages indefinitely.Rail services are still restricted, causing congestion and delays.And strikers forced the closure of all six of the Total oil group's refineries in France, threatening fuel shortages.
• Lloyds Banking Group is to cut about 4,500 jobs in its IT operations.It said 1,600 would be roles held by permanent staff with a further 1,150 working on temporary contracts. The other 1,750 jobs are held overseas.The bank said the cuts, to happen by 2012, were part of its integration of IT operations between Lloyds and HBOS.

BBC Business News 13th October 2010

Hollingsworth Daily Post

• Iceland remains the country that has the greatest equality between men and women, according to an annual report by the World Economic Forum (WEF).It is the second year in succession that Iceland has topped the foundation's Global Gender Gap Report.Nordic nations dominate the top of the list of 134 countries, with Norway in second place and Finland third.The report measures equity in the areas of politics, education, employment and health.
• The case to decide the future ownership of Liverpool Football Club will be heard in the High Court on Tuesday.The Royal Bank of Scotland (RBS), the club's major creditors, have submitted an application to the court against co-owners Tom Hicks and George Gillett.Hicks and Gillett, who bought the Reds in March 2007, owe RBS £240m but are blocking the £300m sale of the club to New England Sports Ventures (NESV).The American duo have opposed the sale as they say it undervalues the club.The case is one of a number to be heard by Mr Justice Floyd at 1030 BST and revolves around whether chairman Martin Broughton has the authority to sell Liverpool to NESV against the wishes of Hicks and Gillett.
• US clothes retailer Gap has scrapped a new logo just one week after its introduction following an "outpouring of comments" online.The original logo, which has used been used for more than 20 years, has a blue box with "GAP" written in white inside.The new logo on the website had "Gap" written in black against a light background with a small blue square laid over the top of the letter "p".But critics attacked the rebranding on social networks and online forums.More than 2,000 comments were posted on the company's Facebook page on the issue, with many demanding the return of the traditional logo.
• French unions are staging a national day of strikes and demonstrations in opposition to the government's pension reforms - the third in a month.Hundreds of thousands of people are expected to march in cities across France, with transport workers, civil servants and teachers stopping work.Ministers want to raise the minimum retirement age from 60 to 62, and the state pension age from 65 to 67.Meanwhile, key workers are set to vote on whether to begin open-ended strikes.
• UK Consumer Prices Index (CPI) inflation remained unchanged in September at 3.1%, according to the Office for National Statistics (ONS).It means the rate has been above the Bank of England's 2% target for 10 months in a row.Inflation as measured by the Retail Prices Index (RPI) fell back from 4.7% in August to 4.6% in September.RPI - which factors in a greater chunk of the cost of housing - is important for wage negotiations.
• Growth in the UK economy is slowing, with the service sector particularly affected, two surveys have suggested.A report from the British Chambers of Commerce (BCC) said economic growth in the third quarter was "considerably" slower than the previous quarter.The BCC warned businesses faced serious challenges in the coming months.The British Retail Consortium (BRC) said retail sales growth slowed last month, with like-for-like sales up 0.5% from a year ago.

BBC Business News 12 October 2010

Weekly Market Summary

by Raymond Chatlani

On Monday, Asian markets all rose except for Japan although the Chinese stock exchange will be closed all this week for public holidays. EU and UK stocks fell as German new car sales tumbled 18% in September and fears that reports this afternoon may show slowing factory orders in the USA. US indices fell as factory orders fell 0.5% in August, slightly worse than expected. The U.S. dollar gained broadly on Monday on lingering concerns about euro-zone debt especially against the Euro.

On Tuesday, weak U.S. economic indicators sent most Asian markets lower with only Indonesia, Malaysia and Japan up. Japanese indices rose 1.5% as the Yen weakened on news that the Japanese Central Bank cut rates to virtually zero would use quantitive easing by allocating 35 trillion Yen to purchase a pool of equities and bonds and broaden its loan program. Gold hit a new record high of $1,331 an ounce. European stockmarkets rose strongly on Japan's surprise rate cut and proposed cash injection into the domestic economy. US shares rocketed on Japan's announcement of quantitive easing and reports that activity in the nation’s services sector expanded for a ninth straight month during September.

On Wednesday, gold hit a new high of $1,347 an ounce. Asian stockmarkets rallied Wednesday, buoyed by growing expectations that the Federal Reserve will take steps to bolster the U.S. economy following the Bank of Japan's surprise interest rate cut. European indices rose by following Asia's buoyant mood, but pared gains in the afternoon on US job market reports. US stocks closed mixed with the Dow Jones up and the Nasdaq down and S & P 500 flat after a disappointing report that private employers recruited less staff than expected renewed concern about the health of the economy.

On Thursday, gold hit a new record high of $1,3660 an ounce with silver hitting a new 30 year high of over $23 an ounce. Asian indices were modestly down except for Indonesia which fell over 1% as investors digested the yen's overnight climb to a new 15-year high against the dollar and a disappointing U.S. jobs report. European stocks rose on good US data except for the ETSE100 and Ireland as irish debt was downgraded. US shares initally rose on reports that applications for unemployment benefits fell last week for the fourth time in five weeks, a sign that layoffs are declining and that September sales results were better than expected, but closed flat as traders opted for caution ahead of Friday's employment report from the Labor Department, the most crucial piece of news on the economic calendar this week. Gold pulled back to S1,335 on profit taking.

Today, Asian indices were mostly lower except for China and Hong Kong as investors pared bets ahead of a key U.S. jobs report later in the day and the yen traded at a 15-year high against the dollar. Shares in China jumped as investors playing catch-up as financial markets reopened after the weeklong National Day holidays and after Moody’s Investors Service said it may raise the nation’s debt rating and retail sales surged during a five-day public holiday. European stocks were mostly down as traders pared back positions before the US jobs report later today. US stocks are flat although employers in America cut more jobs than forecast in September.

At the beginning of this week global stocks surged on Japan's surprise quantitive easing and on speculation that other Governments will take additional actions to reinvigorate the global economic recovery. On Thursday and Friday, global stocks were flat as investors seem divided as to whether the Feds will execute another round of quantitive easing due to poor employment in the American economy.

Important Further Update

Further to the summary below, on Friday US markets surged by the end of the session and the Dow Jones breached an important barrier by ending above 11,000. This is an excellent signal that this rally should continue.

This morning Asian stocks rose as investors plowed cash into stocks amid expectations the U.S. Federal Reserve will take action to prevent the American economy from slipping back into recession

Hollingsworth Daily Post

• European regulators have backed tougher than expected draft rules on bankers' pay despite pressure from the UK and France to water down the restrictions.If the draft rules are implemented, it would cap the amount of a bonus able to be taken in cash to a maximum of 30%.On Thursday, the measures were passed by the Committee of European Banking Supervisors, made up of financial watchdogs from the EU's 27 members.London argues that the new regime will make the European Union uncompetitive.
• The Japanese cabinet has approved a plan to pump more than $60bn (£38bn) into the country's struggling economy.The aim of the plan - which still needs approval from parliament - is to boost growth, jobs and spending.The Japanese economy is suffering from deflation and a strong currency; prices keep falling, but consumers hold off spending in hope of lower prices.Analysts said the key problem is that the yen is at a 15-year high, making exports more expensive.
• Migrant workers are suffering worst in the aftermath of the global recession, according to a special report commissioned by the BBC World Service.Foreign workers in developed nations are more likely to be jobless than their native-born counterparts, as the employment gap widens between the two.At the same time, immigration to developed countries has slowed sharply.
• Hollywood film studio Metro Goldwyn Mayer has begun plans to file for bankruptcy protection in an effort to rid itself of $4bn (£2.5bn) of debts.The company behind the James Bond films wants more than 100 of its creditors to agree plans to enter chapter 11 bankruptcy while it restructures.Creditors will get a 95% stake in the company as part of the deal.Chapter 11 allows MGM to operate as normal, but money troubles have held up production of new 007 and Hobbit films.
• Global currency wars pose "a real threat" to economic recovery, the head of the International Monetary Fund, Dominique Strauss-Kahn, has warned.In an interview with the BBC, he said currency disputes showed countries were not co-operating as well as they had during the financial crisis.In recent weeks both the US and Europe have led criticism of China over its undervalued yuan.Meanwhile, Japan has been forced to intervene to curb rises in the yen.
• Shanghai authorities have imposed limits on home buying in an attempt to cool the city's property market.Families in Shanghai will temporarily be allowed to buy only one more home, and banks must restrict mortgages.It follows moves by the central government to curb property speculation on the back of big price rises.Earlier this week, authorities in Shenzhen announced that anyone owning two houses or more would be stopped from buying further properties.
• Thomas Cook and the Co-operative Group are to merge their High Street travel businesses to create the largest such network in the UK.The move will bring together 1,204 stores, but both Thomas Cook and Co-operative Travel will retain their separate branding.They will create a new joint subsidiary company to be 70%-owned by Thomas Cook, with 30% held by the Co-operative.Thomas Cook admitted the deal may mean "hundreds" of job cuts.

BBC Business News 8th October 2010

Weekly Market Summary

BY RAYMOND CHATLANI

On Monday, Asian stock markets kicked off a new week of trading in good spirits, encouraged by an improvement in U.S. indicators that provided respite from worries about the durability of the economic recovery. Last Friday's report of an increase in US corporate spending lifted Asian indices. European and US markets edged lower as investors pocketed profits.

On Tuesday, Asian equities were lower on lingering concerns about eurozone debt. European markets fell slightly as traders are again weary of the health of Europe's financial markets and how countries there will be able to cope with mounting debt. US markets rose on reports that house prices have risen for five straight months and merger and takeover activity although consumer confidence dropped to its lowest level since February.

On Wednesday, Asian markets mostly rose on speculation that the Fed and Bank of Japan look to pump more funds into markets via bond purchases and other measures to help their struggling economies. European shares fell on massive street protests against austerity measures renewed worries about the region's finances with banks leading the downfall. Gold hit a new high of $1,313 an ounce at one point. US indices were down modestly as concerns over Europe's debt problems dampened sentiment.

On Thursday, Asian markets were mostly down except for China which rocketed over 1.5 percent on speculation government measures to tame real- estate prices will end policy tightening earlier and prevent asset bubbles from hurting the economy. European markets fell on concerns over Ireland and Spain's debt problems as Ireland’s government is preparing to take majority control of Allied Irish Banks Plc and pump extra cash into Anglo Irish Bank Corp. to draw a line under its financial crisis and as Moody's lowered Spain's credit rating from Aaa to Aa1. European markets later recovered in the afternoon and went into positive territory after economic reports in the USA topped expectations but finally closed mixed. American stocks rose on news that second quarter GDP grew 1.7% which was higher than estimated a month ago and that jobless claims figures were lower than expected but closed in negative territory at the end as investors booked profits for the month.

Today, most Asian stock markets rose although Hong Kong and China were closed for public holidays on stronger growth in Chinese manufacturing in September which suggests the world's No. 2 economy isn't slowing as sharply as feared. European markets fell except for the Uk on fears of a possible debt crisis on austerity protests. Gold hit a new high today at 1,318 an ounce driven by the US Dollar's weakness against the Euro. US stocks were flat as American personal spending topped estimates and data showed the manufacturing sector grew at a slower pace in September.

Another good week for equities and commodities. Data from the USA and China are showing slow growth in the US economy and high growth in Asia. EU markets were the exception this week and fell on debt worries stoked by the problems in Ireland and the downgrade of Spanish debt.

Gold new highs this week signifies that the market is looking ahead and probably sees inflation coming. If the market's view is correct, then our portfolios will continue to perform as the US Dollar continues its fall and emerging market's assets continue to appreciate.