Pak Offers To Buy Indian Share In Pipeline Project

(RTTNews) - As the relations between India and Pakistan touched the nadir following the Mumbai terror attacks, Islamabad has offered to Tehran that it could buy New Delhi's share of gas from the proposed $7.5 billion India-Pakistan-Iran (IPI) pipeline project involving the three countries, media reports said Thursday.

A team of energy experts led by Pakistan's adviser to the Prime Minister on Petroleum and Natural Resources, Asim Hussain, will travel to IranDecember 29 to discuss the proposal.

During its two-day visit, the delegation will try to persuade its Iranian counterpart to sign an agreement to transfer the Indian share of gas to Pakistan in the next few months claiming that New Delhi has apparently lost interest in the venture after signing the nuclear deal with the U.S.

However, Tehran still wants New Delhi to be part of the project to "counter growing U.S. influence on its old ally in the energy sector".

Indian market higher in early trade

(RTTNews) - Friday, the Indian market is trading firm on reports that that the government is likely to announce a second stimulus package in the next few days to lift slowing growth. Stocks across the sectors are trading in positive territory. Realty, oil/gas stocks such as Reliance Petroleum, BPCL & HPCL and metal stocks are rising sharply.

According to the commerce and industry minister Kamal Nath, the package may include steps to ease liquidity and relief measures for export and housing sectors. More measures to maintain the growth momentum in employment generating sectors like textiles, steels and pharmaceuticals are also expected to be announced.

However, the market is showing volatility on account of profit taking due to weekend considerations. Investors await inflation data scheduled to be released this afternoon. The index of wholesale inflation for the week ended December 13 is expected to have fallen to a fresh nine-month low of 6.61% from 6.84% a week earlier.

Euro Advances Against Dollar

(RTTNews) - In early trading on Friday, the European currency strengthened to 1.4060 against the US dollar. On the upside, 1.4126 is seen as the next target level for the euro-dollar pair. The European and US markets were closed yesterday for Christmas holiday. The pair closed Wednesday's New York session at 1.4014.

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Vietnam Devalues Dong As Inflation Slows Sharply In December

(RTTNews) - Thursday, the State Bank of Vietnam devalued its currency by 3% as the Vietnam's inflation slowed sharply in December. The monetary authority devalued the currency every year since 1995.

The General Statistical Office of Vietnam reported today that the consumer price index or CPI rose at a pace of 19.89% year-on-year in December. Inflation slowed from 24.2% recorded in November. Month-on-month, consumer prices were down 0.68% in December. In November, prices were down 0.76%. The average inflation rate for 2008 was 22.97%, the report showed, surging from 8.3% logged for 2007.

Today, the central bank fixed the rate at 16,989 per dollar, versus 16,494 yesterday. The currency is allowed to trade at 3 percent on either side of the fixed rate. This is the second time the central bank has made a significant increase in the exchange rate, after raising it by 2% in June.

The State Bank of Vietnam has allowed the currency to weaken 5.7 percent against the dollar this year, compared with a 29 percent slide in the Korean won and a 13 percent slump in the Philippine peso.

The Vietnamese dong is facing downward pressure due to the current-account deficit. Vietnam's trade deficit widened 56 percent to $16.9 billion in the first 11 months of the year, according to government data.

China Detains 59 On 'Subversive Rumors' In Tibet -State Media

BEIJING (AFP)--China has detained 59 people accused of fabricating subversive rumors in Tibet, state media said Thursday, blaming forces allied to the Himalayan region's exiled Buddhist leader, the Dalai Lama.

Since unrest broke out in Tibet in March, police have cracked 48 cases of " rumor-mongering" and detained 59 people, the Chinatibetnews.com Web site said, citing Xin Yuanming, deputy chief of police in Tibet's capital Lhasa.

"A number of people with ulterior motives deliberately spread rumors and fanned ethnic sentiment," he was quoted as saying, adding that the alleged rumormongers had been urged on by people close to the Dalai Lama.

The report said the rumors "seriously undermined the image of the party and the government and harmed the public's sense of security." The term "rumors" in China is often used to refer to anti-government views.

In one example mentioned in the report, unidentified people had downloaded " reactionary songs" from the Internet and sold them in compact disc and MP3 format in markets in Lhasa.

The Dalai Lama has lived in exile in India since fleeing his homeland after a failed uprising in 1959 against Chinese rule. China has ruled Tibet since 1951 after sending troops to the Himalayan region the previous year.

Japan Mulls Sending Warship To Tackle Pirates Off Somalia

TOKYO (AFP)--Japan said Thursday it was considering dispatching a destroyer to waters off Somalia to guard against pirates who are inflicting a costly toll on the shipping industry.

A growing number of nations are sending navy ships to fight pirates near the lawless East African country, with Japan's neighbor and sometime rival China set to dispatch three vessels on Friday.

"Japan has to deal quickly with this issue," Chief Cabinet Secretary Takeo Kawamura, the government spokesman, told a news conference.

But Japan has legal problems with sending warships because of its pacifist post-World War II constitution. Under domestic laws, the navy can only protect ships flying the Japanese flag or carrying Japanese nationals.

"Are the current laws appropriate for a mission like this?" Kawamura said.

"The laws stipulate that, as a general rule, Japanese (military) ships can operate within our territorial waters. But is that OK when we are discussing cooperation with the international community?" he said.

Kawamura said ruling bloc lawmakers will study changes in legislation.

The Mainichi Shimbun, quoting unnamed sources, said Prime Minister Taro Aso may announce a decision on an operation by the end of the year.

BOND REPORT: Treasurys Tread Water; Data Underscore Economic Weakness

By Deborah Levine

Treasury prices traded mostly flat ahead of the Christmas holiday Wednesday, after government reports on joblessness and consumer spending pointed to ongoing strains in the U.S. economy.

Two-year note yields (UST2YR) were little changed at 0.90%, recovering from their earlier decline.

Ten-year note yields (UST10Y) were also little changed at 2.19%.

Initial claims for unemployment benefits rose 30,000 to a seasonally adjusted 586,000 in the week ended Dec. 20, marking the highest level seen for first-time claims since 1982.

A separate report showed a decline of 0.6% in consumer spending during November, though economists surveyed by MarketWatch had been looking for a drop of 0.7%. A measure of consumer inflation excluding energy and food prices was flat in November, as predicted.

Another government report indicated durable-goods orders fell 1% last month, a better performance than the 3% drop that had been forecast.

MARKET SNAPSHOT: U.S. Stocks Make Modest Gains In Light Pre holiday Trading

By Nick Godt

U.S. stocks finished higher after a shortened pre-holiday trading session Wednesday, gaining ground as data on consumer spending and durable goods orders for November came in better than expected.

The New York Stock Exchange closed early at 1 p.m. ET, ahead of the Christmas holiday.

"We're on the plus side, which is sort of a treat, considering that the market has been down for the past five sessions," said Peter Cardillo, chief market economist at Avalon Partners.

The Dow Jones Industrial Average (DJI) gained 49 points, good enough for a 0.6% advance to 8,468, with 22 of its 30 components trading higher.

Shares of General Motors Corp. (GM), hit hard this week, led the blue-chip gains, up 8%.

Automotive rival Toyota Motor Corp. (TM) said that its domestic production dropped 27.2% in November from a year earlier to 288,138 vehicles, the fourth straight monthly decrease.

BOND REPORT: Treasurys Gain As Data Underscore Economic Weakness

By Deborah Levine

Treasury prices rose Wednesday, pushing yields down, after government reports on joblessness and consumer spending pointed to ongoing strains in the U.S. economy.

Two-year note yields (UST2YR) fell 3 basis points, or 0.03%, to 0.88%.

Ten-year note yields (UST10Y) were little changed at 2.18%.

Bond prices move inversely to their yields.

Initial claims for unemployment benefits rose 30,000 to a seasonally adjusted 586,000 in the week ended Dec. 20, marking the highest level seen for first-time claims since 1982.

A separate report showed a decline of 0.6% in consumer spending during November, though economists surveyed by MarketWatch had been looking for a drop of 0.7%. A measure of consumer inflation excluding energy and food prices was flat in November, as predicted.

BOND REPORT: Treasurys Curb Losses On Auto Bailout, Yields Rise

By Laura Mandaro

Treasurys pared their losses in early afternoon trade Friday after some of the euphoria over the U.S. auto bailout moderated, though yields on mid-term maturities made sizeable one-day rises.

The 10-year Treasury note last traded flat, with yields (UST10Y) at 2.08%, roughly in line with levels late Thursday. Yields on the benchmark security, which move inversely to prices, had fallen as much as 0.9% earlier, sending yields 11 basis points higher.

In light and choppy trading ahead of a holiday-shortened week, short to medium term Treasurys (UST2YR) took the brunt of selling. Yields on two-year rose 5 basis points to 0.74%, three-year note yields gained 8 basis points to 1.01% and five-year notes advanced 6 basis points to 1.32%.

BOND REPORT: Treasurys End Euphoric Week On Down Note; Yields Tip Up

By Laura Mandaro

Treasurys fell Friday, flattened by a bout of optimism on the U.S. economy after the White House unveiled a rescue package for Detroit's automakers and ahead of record auctions next week.

On Friday, the 10-year Treasury note slid 0.1%, with yields (UST10Y) at 2.12%, four basis points higher than levels late Thursday. Yields on the benchmark security, which move inversely to prices, had risen as much 11 basis points earlier.

Still, the rush into Treasurys spurred by the Federal Reserve's aggressive moves to lower interest rates drove 10-year yields nearly a half percentage point down for the week, and they set new lows along the way. As of Thursday, Treasurys had returned 2% for the week, according to Merrill Lynch's index of high-rated U.S. government debt.

In light and choppy trading ahead of a holiday-shortened week, short to medium term Treasurys (UST2YR) took the brunt of selling. Yields on two-year notes rose 4 basis points to 0.73%, three-year note yields gained 9 basis points to 1.03% and five-year notes advanced 8 basis points to 1.36%.

LATIN AMERICAN MARKETS: Equities Unable To Gain Ground After U.S. Reaches Carmaker Deal

By Carla Mozee

Key Latin American stock markets finished lower Friday, unable to log gains after U.S. automakers won an emergency-loan package from the government after months of volatile negotiations.

Brazil's Bovespa fell 1% to 39,131.23, and Mexico's IPC lost 0.6% to 22, 221.64.

Argentina's Merval lost 1.7 % to end at 1,093.57, and Chile's IPSA shed 0.2% to 2,346.46.

Brazil's oil heavyweight Petrobras (PBR) shed 0.6%.

All steel stocks ended lower. Vale (RIO) fell 0.4% and Usiminas lost 0.2%. Gerdau (GGB) shares fell 1.8%, and Companhia Siderurgica Nacional (SID) fell 1.9%.

Moody's Investors Services, which revised outlooks on Gerdau, Gerdau Ameristeel Corp. and CSN's backed notes to stable from positive, said its actions reflect expectations for weakened debt protection metrics as well as rapid deterioration of steel-industry conditions worldwide, said Moody's.

ASIA MARKETS: Hong Kong, Tokyo Stocks Flip-flop

By V. Phani Kumar

Most Asian markets were unsettled Thursday, with stocks in Japan and Hong Kong struggling to hold on to gains after a decline in Wall Street, while energy stocks declined across the region on sliding crude-oil prices.

Honda Motor Co. tumbled in Tokyo a day after it slashed the profit outlook while a strengthened yen hurt other exporters such as Canon Inc.

In Sydney, Commonwealth Bank of Australia shares plummeted as trading resumed after the bank finalized a A$2 billion ($1.4 billion) capital raising plan and after CBA said its loan impairment charges were expected to be higher than analyst estimates.

Chinese property stocks advanced in Hong Kong after Beijing announced measures to stimulate demand for homes Wednesday, but shares of some Hong Kong developers declined as banks held on to their interest rates in spite of a one percentage- point reduction by the Hong Kong Monetary Authority in its key interest rate.

Five Year-end questions for Wall Street

By David Weidner

NEW YORK (Dow Jones) -- Wall Street was forever changed during this year, but it may be a while before we can tell if its more sinister components were on the road to reform or a rebirth.

As we near the end of 2008, investment bankers, traders, investors and everyone connected to our financial system is wondering what will happen next. Will the machine continue to break down, or have we already started down the path to recovery?

No one is willing to bet on the outcome, but some simple questions may soon be answered that will give us a better idea whether the business of investing and dealmaking will regain a place in our society, or whether it will be frozen out by unbridled greed.

What follows are questions about Wall Street, the Wall Street of capital markets, corporate finance, strategic advice and securities. These are not meant to be questions whose answers will tell us about the future of the economy. It's not a discussion of interest rates and taxes and monetary policy.

ASIA MARKETS: Tokyo Stocks Rebound, Hong Kong Stocks Waver

By V. Phani Kumar

Japanese shares advanced Thursday as investors bought into banks and property developers at bargain prices, but Honda Motor Co. declined a day after it slashed the profit outlook while a strengthened yen hurt other exporters such as Canon Inc.

Australian shares dropped after an overnight decline on Wall Street and in crude-oil prices. The market also was weighed down by Commonwealth Bank of Australia, which slumped as trading resumed after the bank finalized a A$2 billion ($1.4 billion) capital raising plan and after CBA said its loan impairment charges were expected to be higher than analyst estimates.

In Tokyo, the Nikkei 225 Average ended the morning trading session up 0.9% at 8,687.04 reversing early losses, while the broader Topix index gained 0.3% to 841.10.

ASIA MARKETS: Tokyo Rebounds, Shrugs Off Dismal Tankan Result

By V. Phani Kumar

Asian markets bounced Monday, as automakers like Toyota Motor Corp. and Hyundai Motor Co. jumped to recoup losses from the previous session, after the Bush administration said Friday it would step in to prevent a failure of U.S. automakers.

Japan's Nikkei 225 Average, which slumped 5.6% Friday, soared 4% to 8,561.22, while the broader Topix index gained 3.4% to 840.78.

The jump came even after Bank of Japan's tankan survey showed business sentiment dropped sharply, with the headline diffusion index for large manufacturers deteriorating at its fastest pace since August 1974, falling 21 points to minus 24. The reading was the worst in nearly seven years.

Australia's S&P/ASX 200 rose 3.5% to 3,633 and South Korea's Kospi jumped 3.5% to 1,141.87, while New Zealand's NZX 50 index rose 0.8% to 2,697.17.

ASIA MARKETS: Tokyo Stocks Pace Gains, Ignoring Bad News, Data

By V. Phani Kumar

Japanese stocks soared Monday to lead Asian markets higher as investors brushed aside a survey showing business confidence plunged, on hopes for a U.S. interest-rate cut and after the Bush administration said Friday it would step in to prevent a failure of U.S. automakers.

The Nikkei 225 Average, which slumped 5.6% Friday, soared 4.8% to 8,627.45 in the afternoon, while the broader Topix index gained 3.7% to 843.44.

The advance ignored Bank of Japan's tankan survey, which showed business sentiment dropped sharply, with the headline diffusion index for large manufacturers deteriorating at its fastest pace since August 1974, falling 21 points to minus 24. The reading was the worst in nearly seven years.

Hong Kong's Hang Seng Index rose 3.5% to 15,271.19, also rebounding after losing 5.5% Friday, and shrugging off a report in the Financial Times that HSBC Holdings has a potential exposure of $1.5 billion to Bernard Madoff, a former chairman of Nasdaq, who was arrested last week and charged with securities fraud. An HSBC spokesman in Hong Kong declined to comment on the report.

Tokyo Stock Exchange: 130 years of success

The second largest stock exchange market in the world by market value, second only to the New York Stock Exchange, it outstripped the London Stock Exchange in its day. With the background of 130 years it represents a modern institution that helps the business of huge holding companies incorporating best global practices and native principles peculiar to the local mentality. Its motto runs: “To strive to create a sound market with a high level of reliability and convenience from the standpoint of investors and other market users, thereby contributing to the realization of a more prosperous society.”

BOND REPORT: Treasurys Gain On Dismal Jobless Data, 10-year Auction

By Deborah Levine

Treasury prices gained ground Thursday, pushing yields lower, following more gloomy data on U.S. employment, and after a successful government auction of 10-year bonds.

The Treasury sold nearly $16 billion of 10-year bonds at a high yield at 2.67% , the lowest-yield ever offered by the government in a 10-year auction, a silver lining of mounting debt to pay for bailouts of banks, mortgage-buying agencies, insurers and possibly, auto manufacturers.

The previously lowest-yield auction was in March, at 3.51%.

The bid to cover ratio stood at 2.44, an indication of firm demand.

MARKET SNAPSHOT: U.S. Stocks Trade Flat As Energy Gains Offset Car Worries

By Nick Godt

U.S. stocks rebounded from early weakness to flirt with positive territory on Thursday, with energy stocks rising as crude oil prices surged another 11% on a weak dollar and expectations of upcoming production cuts.

The energy sector jumped 4% as crude oil futures rose $5.12, or 11.6%, to $ 48.57 a barrel, extending a rally from the previous session.

The rest of the market, however, remained flat to negative amid ongoing concerns about a bailout for the U.S. auto industry. Late Wednesday, the U.S. House of Representatives approved a $14 billion federal loan package to the Big Three automakers in a 237-170 vote.

"The bill now has to go through the Senate where it is expected to face a tougher challenge," said Robert Kavcic, an analyst at BMO Capital Markets.

The Dow Jones Industrial Average (DJI) was up 20 points, or 0.2%, at 8,782, off a morning low of 8,617.

Among blue-chips, shares of Chevron Corp. (CVX) jumped 4% and those of Exxon Mobil Corp. (XOM) rose nearly 2%.

Weighing on the Dow, shares of General Motors Corp. (GM) slumped 6%, while away from the Dow, Ford Motor Co. (F) shares fell 4%.

Financial blue chips were also under pressure, with JP Morgan Chase (JPM) off 4.5%, Citigroup (C) down 5% and Bank of America (BAC) down 3.6%.

Also on the Dow, household products giant Procter & Gamble lowered its sales growth forecasts for the current quarter. The company, however, said it still expects to meet its previously earnings forecasts and its shares rose 0.6%.

The S&P 500 index (SPX) rose 1.9 point

MARKET SNAPSHOT: U.S. Stocks Rise On Black Friday To Post Strong Weekly Gains

By Nick Godt

U.S. stocks ended higher Friday, leaving the market with monthly losses but with large gains for a holiday-shortened week that saw investors increasingly confident that much of a dire economic outlook already has been priced in.

The market gained on so-called Black Friday, marking its fifth-straight session of gains, with grim prospects for retailers failing to dent optimism at the traditional start of the U.S. holiday-shopping season.

"With the market [having its] fifth day of gains in a row, there's a bit of confidence returning," said Peter Cardillo, market economist at Avalon Partners. "This market has discounted a lot of negative news."

The Dow Jones Industrial Average (DJI) gained 102 points, or 1.2%, to 8,829, with 23 of its 30 components ending higher. While the blue-chip average fell 5.3% for the month of November, it jumped 9.2% over the past week.

"Even though it was abbreviated, this is one of the biggest gaining weeks in a long, long time," Cardillo added. With the market falling so far and so quickly over the past few months, "the picture has gotten technically strong here, which is another reason investors are coming in."

MARKET SNAPSHOT: U.S. Stocks Look To Further Recent Gains In December

By Nick Godt

Stocks will enter the month of December with a sense of optimism that much of the dismal environment for corporate profits has already been discounted by the market, even as upcoming reports, including the key jobs report on Friday, are expected to show the economic picture is still worsening.

Next week, "we'll have a slew of economic numbers, including what I expect to be a rise to 6.7% in unemployment in November," said Peter Cardillo, market economist at Avalon Partners.

However, "the market has already priced in another quarter or two of real bad economic news, and that things could start to stabilize in the second quarter" of next year, he said.

Dow's best 5-day gain ever

MARKET SNAPSHOT: U.S. Stocks Turn Mostly Higher On Black Friday

By Nick Godt

Stocks managed to turn mostly higher on "Black Friday," the traditional start of the U.S. holiday shopping season, with subdued prospects for retailers, and an overall dire economic environment somewhat already factored in by investors.

A day after the Thanksgiving holiday, the market will close early at 1 p.m. Eastern Time.

"With the market [on track] for the fifth day of gains in a row, there's a bit of confidence returning," said Peter Cardillo, market economist at Avalon Partners. "This market has discounted a lot of negative news."

The Dow Jones Industrial Average (DJI) gained 12 points at 8,714, with 11 of its 30 components opening higher.

Auto sales somewhat less anemic

Auto sales posted a small rebound in November, but few analysts are taking it as a sign that the economy has finally turned a corner.

The latest figures from Edmunds.com show that new vehicle sales in November are expected to be 850,000 units, representing a 1.9 percent increase over October's figures.

However, most major automakers continued to see a substantial decrease over last year's sales figures. Two of the American "Big Three" automakers, Chrysler and Ford (F), led the decline with a respective 41.7 and 33.1 percent drop since November of 2007.

ASIA MARKETS: Resource, Technology Shares Spur Rally

By V. Phani Kumar

Asian stock markets advanced early Thursday, with technology shares such as Kyocera Corp. and Hynix Semiconductor among gainers after Wall Street stretched a rally into a fourth straight session, while resource stocks jumped on a sharp rise in crude-oil prices.

The Nikkei 225 Average jumped 2.1% to 8,388.01 and the broader Topix index added 1.7% to 831.24.

Australia's S&P/ASX 200 rose 2.6% to 3,630.40 and New Zealand's NZX 50 index gained 1% to 2,665.13, while South Korea's Kospi climbed 2.1% to 1,051.37.

Technology shares advanced on hefty gains on Nasdaq overnight, with Kyocera ( KYO) jumping 4.3% and Toshiba Corp. rising 3.6% in Tokyo.

In Seoul, shares of Hynix (HXSCF) surged 7.9% and Samsung Electronics Co. ( SSNLF) added 2.5%.

On Wall Street, the Nasdaq Composite rose 4.6% to 1,532.10 and the Dow Jones Industrial Average finished up 2.9% at 8,726.61, while the S&P 500 index added 3.5% to 887.68.

LATIN AMERICAN MARKETS: Telecoms Help Lead Brazil Higher; Argentina Shares Rise

By Carla Mozee

Brazil's equity index climbed Wednesday, with telecom stocks gaining on speculation of a deal involving a key mobile-phone company.

In Brazil, the Bovespa index finished 4.8% higher, to 36,469.61.

Shares of Tim Participacoes (TSU) jumped after Il Sole 24 Ore, an Italian financial newspaper, reported that Telecom Italia (TI) is mulling the sale of its Brazilian wireless services unit.

The shares soared 18%, leading overall advancers.

Shares of rival Vivo Participacoes (VIV) rose 3.4%. Telesp (TSP) rose 3.8%, Oi (TNE) picked up 0.9% and Brasil Telecom Participacoes (BRP) reversed losses to end 7.2% higher.

Meanwhile, Dow Jones Newswires, citing sources familiar with the matter, reported that Telecom Italia won't put Tim Participacoes up for sale as it considers the company a core asset.

ASIA MARKETS: Shanghai, Hong Kong Rally On China Rate Cut

By V. Phani Kumar

Asian markets advanced Thursday, with Shanghai- and Hong Kong-listed shares pacing gains a day after the Chinese central slashed interest rates.

Japanese, South Korean and Taiwanese shares also posted strong gains, with technology stocks such as Elpida Memory and Hynix Semiconductor among gainers after Wall Street stretched a rally into a fourth straight session. Resource stocks jumped in Australia on a sharp overnight rise in crude-oil prices.

Indian markets were closed for the day in the wake of synchronized terrorist attacks overnight in nine or more locations in the financial capital Mumbai, which left at least 87 people dead and 250 wounded.

China's Shanghai Composite jumped 4% to 1,972.82, after the People's Bank of China Tuesday slashed its lending and deposit rates by as much as 1.08%, in addition to cutting banks' reserve requirements sharply, in the central bank's strongest response yet to a recent slowdown in economic growth.

In Hong Kong, the Hang Seng Index gained 3.9% to 13,893.73, while the Hang Seng China Ente

LATIN AMERICAN MARKETS: Region's Stocks Soar As Commodities Strengthen

By Carla Mozee

Stocks across Latin America's major markets zoomed higher Monday, bolstered by a jump in commodity stocks and a multibillion-dollar funding commitment from the U.S. for one of the country's biggest financial-services firms.

Stocks also held their ground after U.S. President-elect Barack Obama introduced his economic team, including New York Federal Reserve chief Timothy Geithner as Treasury secretary.

Obama has stepped up efforts to contain the financial and economic crisis, reducing fears of a 2-month-long vacuum, analysts at BMO Capital Markets said.

Brazil's Bovespa jumped 9.4% to 34,188.83, its largest percentage gain since Nov. 13.

MARKET SNAPSHOT: Stocks Trim Weekly Losses On Word Geithner Will Head Treasury

By Kate Gibson

U.S. stocks on Friday surged on a report President-elect Barack Obama would nominate New York Federal Reserve President Timothy Geithner as Treasury secretary. The leap higher in the final hour of trade came on the heels of a two-session freefall and halved the market's weekly decline.

After a volatile session, equities rocketed higher in the wake of an NBC report that Obama would appoint Geithner to head the Treasury Department.

Of the trio, Geithner is "the one people in the market wanted to see," said Owen Fitzpatrick, head of the U.S. equity group at Deutsche Bank. The choice is particularly important in light of Treasury Secretary Hank Paulson's comments earlier in the week "of being done with Tarp," said Fitzpatrick of the Paulson's decision to let the next administration decide how to spend the remaining roughly $350 billion of $700 billion bailout package.

"The comfort level is there with Geithner," said Fitzpatrick.

The Dow Jones Industrial Average (DJI) surged more than 500 points before finishing at 8,046.42, up 494.13 points, or 6.5%. The blue-chip index lost 5.3% for the week.

LATIN AMERICAN MARKETS: Argentina OKs Pensions Takeover; Brazil, Mexico Mixed

By Carla Mozee

Argentine stocks fell Friday following a widely expected decision by the government to nationalize pension funds, and Brazilian stocks dropped more than 6%, with commodity stocks driving the decline.

Meanwhile, Mexican shares finished slightly higher after a better-than- expected report about quarterly economic growth and a rally on Wall Street on news that President-elect Barack Obama has made his choice for the nominee for Treasury Secretary.

Latin American markets finished lower for the week, led by a 5.8% fall by Brazil's Bovespa index.

"Unfortunately events this past week were once again driven by these words: credit crunch, recession, deflation, stagnation, demand slump, etc.," said analysts at Saxo Bank in a weekly commodity update.

Argentina's Merval equity index fell 4% to 828.94 in the wake of Thursday night's vote in the Senate that gives the Kirchner administration control of $24 billion in assets that had been managed by 10 private pension funds, ending a 14-year run of the system

MARKET SNAPSHOT: U.S. Stocks Look For Respite In Holiday shortened Week

By Nick Godt

U.S. stocks will start next week with investors looking for some respite after reports of key nominations to the administration of President-elect Barack Obama helped stem heavy selling that had slammed the market to 11 year lows.

In particular, the nomination of Tim Geithner, currently the head of the New York Federal Reserve, as the next treasury secretary, seemed to find immediate approval from Wall Street, judging by a market rally that saw the Dow industrials jump nearly 500 points Friday.

"That's good news," said Robert Pavlik, market strategist at Oaktree Asset Management. "Now we have a team that can come together and start coming up with a plan. The foundation has been laid to start addressing the situation."

Stock markets in free fall on gathering global gloom

LONDON: World stock markets plunged deep into negative territory Friday as gloom gathered over the global economy and dismal corporate news left investors stunned.

"Everyone is staring at their screens in disbelief," said Tom Hougaard, chief market analyst at City Index.

On Wall Street the Dow Jones Industrial Average plunged 4.69 percent to 8,287.36 in the first 10

MARKET SNAPSHOT: U.S. Stocks Come Back From Day's Lows After Sharp Plummet

By Kate Gibson

U.S. stocks came off their worst levels but remained deeply mired in red Friday, and headed for weekly losses as energy shares fronted broad-sector declines after a global sell-off in equities on fears of worldwide recession.

"I opened my trading platform this morning and thought I must be at a funeral, " said Charles Perry, president of Perry Management, an energy-consulting firm. "But the market seems to be firming now."

After dropping 420 points, the Dow Jones Industrial Average (DJI) trimmed its decline, recently off 260.37 points, or 3%, to 8,430.88, far off an intraday low of 7,773.7 hit two Fridays ago, and setting it up for a weekly drop of 4.8%.

All but one of the blue-chip index's 30 components posted midday declines, with Microsoft Corp. (MSFT) digging out of negative terrain, recently up 1% following its report of a small profit gain for the September quarter. .

General Motors Corp. (GM) fell the most, down nearly 14%.

MARKET SNAPSHOT: U.S. Stock Indexes Finish Off Lows But Still Plunge For Week

By Kate Gibson

U.S. stocks on Friday rallied back from stiff losses to end mostly lower after the Dow Jones Industrial Average traded in a 1,000-point range in the final session of its worst week ever, as shaken investors looked for intervention from a meeting of global finance ministers.

The indexes had lunged sharply lower for an eighth straight day, with the Dow industrials sliding nearly 700 points at the start to fall under 8,000 for the first time since 2003 as fears escalated that the trauma in the credit markets could be paving the way toward a global recession.

In Washington, finance ministers and central bankers from the Group of Seven nations are meeting, with economists looking to the gathering for coordinated measures to encourage banks to resume lending to each other. .

MARKET SNAPSHOT: U.S. Stocks Seek Relief From G7

By Nick Godt

U.S. stocks will enter next week with investors either comforted or disappointed by the meeting of the Group of Seven finance ministers and central bankers, who have gathered in Washington D.C. to address the global financial meltdown and its implications for the world's economies.

"I don't know what the G7 can do exactly," said Robert Pavlik, investment strategist at Oaktree Asset Management. "But if they can come out with a positive statement, after all this is a gathering of some of the most qualified people out there, then that will help market psychology."

Several hours after the close of trading Friday, G7 ministers and central bank governors pledged to work together to make sure that large important financial institutions do not fail. In a brief "plan of action" released after their meeting, the G7 said that the current market turmoil calls for exceptional action.

At the top of the list were unfreezing credit and money markets, ensuring banks can raise capital from the private sector, ensuring that deposit insurance regimes were robust, and repairing secondary mortgage markets where appropriate.

UPDATE: RBA slashes rates by full point, says big move necessary

By Chris Oliver

HONG KONG (Dow Jones) -- The Reserve Bank of Australia cut its benchmark policy interest rate by a percentage point to 6.0% from 7.0%, citing disarray in global financial markets and mounting evidence of a sudden deceleration in economic growth among Australia's major trading partners in Asia.

"The Board judged that a material change to the balance of risks surrounding the outlook had occurred, requiring a significantly less restrictive stance of monetary policy," Reserve Bank Governor Glenn Stevens said in a statement Tuesday accompanying the rate decision.

Stevens said conditions in international financial markets had taken a significant turn for the worse in September, adding that obtaining financing is likely to be difficult around the world for some time to come in spite of efforts by central banks to unfreeze credit markets through liquidity injections.

"Economic activity in the major countries is also weakening, and evidence is accumulating of a significant moderation in growth in Australia's trading partners in Asia," Stevens said.

The governor also said consumer price inflation will likely accelerate to 5% on year in September but could begin easing in 2009.

"The recent deterioration in prospects for global growth, together with much more difficult market conditions even for creditworthy borrowers, now present the risk that demand and output could be significantly weaker than earlier expected. Should that occur, inflation would most likely fall faster than earlier forecast," Stevens said.

MARKET SNAPSHOT: U.S. Stock Market Welcomes Bailout Plan; Indexes Off Early Highs

By Kate Gibson

U.S. stock indexes rocketed higher Friday, with the major stock indexes wiping out a week of shattering losses, as Wall Street cheered the government's effort to unfreeze credit markets as well as plans to move against short sellers.

The major stock indexes climbed above the level at which they stood before the start of the watershed week, which saw the Dow Jones Industrial Average (DJI) lose about 800 points in the first three days of trading.

But at least one analyst questioned whether the weekly gain would remain intact at the end of the day.

"Panic buyers, most likely the shorts, were wiling to pay any price and they sure did," said Elliot Spar, option-market strategist at Stifel Nicolaus & Co., describing the burst higher, especially among financial shares.

"If details of the grand plan are revealed over the weekend, it may create a sell on the news on Monday morning. I suggest traders with big profits from yesterday lighten up before the close," said Spar.

Up more than 400 points early on, the Dow industrials was recently up 336.76 points at 11,356.45, with 24 of its 30 components in the green.

American International Group Inc. (AIG) was flying 56.5% higher, with major shareholders of the giant insurer said to be pursing a bid to pay off the federal government's loan to AIG in time to avoid the government taking an 80% stake in the company, the Wall Street Journal said in an online report.

Citigroup Inc. (C) also bolstered the Dow, up 23.7%, followed by Bank of America Corp. (BAC), recently ahead 17.7%.

UPDATE: Chipotle Profit Hit By U.S. Economy, Food Costs

By Matt Andrejczak

SAN FRANCISCO (Dow Jones) -- Chipotle Mexican Grill, Inc. warned Friday its third-quarter profit and sales will be hurt due to cash-strapped U.S. consumers and surging food costs. Its shares tumbled 18% in early trading.

The U.S. restaurant industry is facing leaner times as consumers are spending less money to eat out. So far, casual sit-down restaurants have been harder hit than the fast-food sector.

Chipotle, which sells burritos, tacos and other quick-service dishes, said it expects third-quarter net income to fall slightly below the year-ago figure of 62 cents a share. Analysts polled by FactSet Research had expected Chipotle to earn 72 cents a share in the quarter.

Denver-based Chipotle (CMG) said it faces further sales deceleration at its 775 fast-food outlets. The company said comparable restaurant sales, or sales at outlets open at least one year, will be in the "mid to low single digits."

Its previous forecast called for mid-single-digit increase. To combat rising costs for food-ingredients, Chipotle also said it plans to implement a national pricing strategy for its menu.

LATIN AMERICAN MARKETS: Mexican, Brazilian Equities End Higher; Mixed For The Week

By Carla Mozee

Major Latin American markets finished higher Friday but mixed for the week. Mexican stocks were slightly higher despite a sharp decline in shares of Cemex SAB following a weak forecast from the cement maker.

Mexico's IPC fought off earlier losses to finish up 35 points, or 0.14%, at 25,558.41. The result was enough to snap a three-day losing streak, but not enough to keep the index from posting a weekly loss, of 1.4%.

Cemex (CX) shares put in the worst performance Friday, down 7.5% after the company late Thursday issued a third-quarter forecast that disappointed analysts. Among its projections, sales will be $5.9 billion, or flat compared with the year-ago period, and earnings before interest, taxes, depreciation and amortization will be about $1.25 billion, down 3% from last year.

EBITDA for 2008 will come in between $4.6 billion to $4.7 billion, with about half of the decline due to a lower-than-expected performance in its U.S. operations, said Cemex. Its results will also reflect a negative foreign- exchange effect of roughly $100 million, largely because of the weaker euro.

Credit Suisse noted Friday that the company may face a higher effective tax rate because of a Mexican Supreme Court decision overturning a ruling that protected the company from paying taxes related to investments in offshore tax havens.

MARKET SNAPSHOT: U.S. Stocks Fall As Oil Rises, Financials Woes Return

By Nick Godt

U.S. stocks fell early Monday morning, as rising crude oil prices fueled uncertainty about the economy, while worries about ailing financials were rekindled by several media reports.

The Dow Jones Industrial Average (DJI) fell 43 points, or 0.5%, to 11,605 in early action, with 26 of its 30 components falling. The benchmark index was pulled lower by General Motors Corp. (GM), AIG (AIG), and Hewlett Packard (HPQ).

Shares of Exxon Mobil Corp. (XOM) rose 0.7%.

Crude-oil prices moved higher amid worries that Tropical Storm Fay could reach installations in the Gulf of Mexico. The September-dated light crude contract tacked on 70 cents to $114.46 a barrel, having peaked at $115.35.

The U.S. dollar was broadly steady after strong gains in the last couple of weeks and ahead of the latest data on housing, due later in the session, and inflation data due Tuesday.

Financial shares gave up some of their strong gains from Friday. Lehman Brothers (LEH) lost 4% after The Wall Street Journal said it could lose $1.8 billion during the quarter.

Separately, newsweekly Barron's said it's growing more likely that the U.S. government will recapitalize Fannie Mae (FNM) and Freddie Mac (FRE), wiping out investors.

Both Fannie and Freddie lost over 10%.

CURRENCIES: Dollar Rallies To Multiple-month Highs

By Steve Goldstein

The dollar's rally extended to multiple-month highs on Friday as U.S industrial output grew the most in 10 months and as traders continued to react to data that showed economies of five of the Group of Seven nations contracted.

In earlier action, the dollar rose to an intraday high of 110.65 Japanese yen, the highest level since January. The euro fell to an intraday low of $1.4663, the lowest since February, and the British pound fell to as low as $1.8510, the weakest since July 2006.

The dollar index (DXY), which measures the greenback against a basket of currencies, rose to an intraday high of 77.25, its highest level since December.

"The perception that the fundamental picture has tilted in favor of the U.S. dollar has continued to help drive" the greenback up, said Marc Chandler, a currency strategist at Brown Brothers Harriman.

Friday's U.S. industrial production data showed the output of U.S. factories rose 0.4% in July, the best gain in 10 months, the Federal Reserve reported.

Overall, industrial production at the nation's factories, mines and utilities increased a seasonally adjusted 0.2%, as expected, despite a 1.9% drop in output of utilities.

Separately, manufacturers in New York state said business improved slightly in early August, the New York Federal Reserve Bank reported Friday. The Empire state index rose to 2.8 in August from negative 4.9 in July.

UPDATE: Bond And Mortgage Insurers Extend Rally

By John Spence

BOSTON (Dow Jones) -- Shares of Ambac Financial Group Inc. rose sharply Friday morning after a ratings agency affirmed its view on the bond insurer and removed the ratings from review for a possible further downgrade.

Standard & Poor's Ratings Services late Thursday affirmed its AA financial strength ratings on Ambac (ABK) and MBIA Inc. (MBI). The stocks were up about 18% and 7%, respectively, in early trading Friday.

Bond and mortgage insurers rallied Thursday after the latest high-profile settlement related to the auction-rate securities mess.

Also Thursday, the Securities Industry and Financial Markets Association decided to allow newly originated jumbo loans to be included in the to-be- announced market for mortgage-backed securities. The move could lend support to the ailing mortgage market.

Shares of PMI Group Inc. (PMI) rallied 50% on Thursday as investors cheered the mortgage insurer's deal to sell some overseas assets.

Other mortgage insurers traded higher in early dealings Friday. MBIC Investment Corp. (MTG) gained 5% and Radian Group Inc. (RDN) was up nearly 9%.

Despite the recent rally, bond insurers are still down heavily so far this year on worsening conditions in the housing and credit markets. Ambac shares are off about 92% over the trailing 12 months through Thursday's close.

Oil Jumps and Financials and Earnings Add to Bulls' Lumps

Despite an afternoon attempt at a recovery, stocks finished lower as crude oil and commodities rose solidly. Financials faltered amid continued fears for the sector, and economic concerns crept higher after a dismal earnings report from Deere & Co, to add to the pessimistic mood on the Street. However, tech issues fared relatively well amid upbeat comments from Applied Materials, and a $1 billion increase in its share buy back program from Nvidia. In other equity news, Best Buy announced it will carry Apple's iPhone, Toll Brothers posted a drop in revenues, backlog, and net signed contracts. Elsewhere, Moody's downgraded the debt of General Motors, and CVS Caremark has agreed to acquire Longs Drug Stores for $2.9 billion. In economic news, retail sales showed signs of slowing, import prices jumped, and business inventories remained thin. Treasuries finished lower. see more

UPDATE 1-Thai consumer confidence recovers in July

BANGKOK, Aug 14 (Reuters) - Thai consumer confidence rose in July after falling for three straight months, boosted by the government's economic stimulus measures, cheaper subsidised petrol and robust exports, a survey showed on Thursday.

The University of the Thai Chamber of Commerce (UTCC) said its survey showed these positive factors outweighed political uncertainty caused by protests against Prime Minister Samak Sundaravej and concern over the global credit market crisis.

The recovery in July surprised some analysts, who had expected consumption to remain sluggish due to high inflation.

"It may be premature to say that consumer confidence has returned, but the possibility of oil prices hovering in a lower $100-120 range in the second half and the boost from state stimulus measures should improve sentiment in the months ahead," UTCC poll director Thanavath Phonvichai told reporters.

"One negative factor for the economy is lingering political uncertainty," he said, referring to what might happen now former Prime Minister Thaksin Shinawatra has decided to leave the country without fighting corruption charges against him in court.

The street protests have been aimed partly at Thaksin, seen as the power behind the Samak government.

In a bid to shore up its popularity among urban voters, the government introduced stimulus measures in July for six months, including a cut in consumption tax for petrol, free bus and train rides, and reduced power and water charges.

Adding to the beneficial effects of these measures, world oil prices have fallen sharply in recent weeks.

Finance Minister Surapong Suebwonglee, who has tried to revive consumer confidence as soaring inflation curbed Thais' purchasing power, voiced disapproval of the Bank of Thailand's decision to raise interest rates in July to tackle inflation.

That has led to a rift between the government and central bank over how to tackle inflation, which hit a 10-year high of 9.2 percent in July.

LATIN AMERICAN MARKETS: Commodity Stocks Lift Brazil; Mexico Ticks Lower

By Carla Mozee

Brazilian equities were pulled higher by commodity-related stocks Wednesday, while Mexican stocks edged lower with word from its largest trading partner that retail spending sputtered last month.

Brazil's Bovespa rose 1.5% to 55,326.35. The index is on track to break a four-session losing streak.

Among the strongest price performers of the session were mining giant Companhia Vale do Rio Doce (RIO) and state-run oil firm Petroleo Brasileiro ( PBR).

Vale was up 4.7%, its biggest jump in nearly two weeks. Petrobras shares gained 4.5%. Together, shares of Petrobras and Vale comprise about 24% of Bovespa.

Investment firm Bradespar, one of the controlling shareholders of Vale and the equity arm of Banco Bradesco (BBD), surged 4.5%. Bradespar's shares have declined about 14% since July 31.

The recent pullback in resource prices have weighed on the Brazilian market heavyweights. Vale shares had lost 5.9% over the previous three sessions, and Petrobras shares had lost 3.4% during the same period.

Also, shares of fuel distributor Ultrapar (UGP) picked up 2.6% and steelmaker Companhia Siderurgica Nacional (SID) rose 3.8%.

Resource stocks found their footing Wednesday as crude-oil rose for the first day in four, up around $115 a barrel after the U.S. government reported that supplies for crude, gasoline and distillates fell last week.

Meanwhile, prices for silver rose to above $14.51 an ounce, and copper futures climbed 1.6% to $3.28 a pound. Gold futures jumped nearly 2.1% to $831.50 an ounce in the wake of an 8-day losing streak.

The Reuters/Jefferies CRB Index, (CRB), a benchmark gauging the prices of major commodities, climbed 2%.

UPDATE: CML: UK House Purchase Loans Down 44% On Yr In May

UPDATE: CML: UK House Purchase Loans Down 44% On Yr In May

(Adds details, background.)

LONDON (Dow Jones)--U.K. lending for house purchases increased 2% in May but was substantially lower on the year as the housing market continued to suffer from the credit crisis and concerns about the economic outlook, data from the Council of Mortgage Lenders showed Tuesday.

Loans for house purchase totaled GBP7.9 billion in May, up from GBP7.7 billion in April but down from GBP14.2 billion in May last year, the CML said. The number of mortgages that were completed increased 4% on the month to 52,700, but that was also 44% weaker than in May 2007.

Gross lending fell 6% on the month and 22% on the year to GBP24.5 billion, marking its seventh consecutive monthly drop.

There was a 14% decline in remortgaging loans in May to 71,000, representing a 23% drop on the year, it said.

"Lending levels continue to be lower than last year and any recovery is still some way away, with little sign of the special liquidity scheme increasing the flow of funds to the industry or lowering the cost of funds as hoped," CML Director General Michael Coogan said in a statement.

The Bank of England launched a facility in April to allow banks to swap around GBP50 billion of mortgage-backed and other securities for U.K. treasury bills in an effort to improve the liquidity of the banking system and increase confidence in financial markets.

New market service for Managed Funds, ETFs and Structured Products

The new service for Managed Funds, ETFs and Structured Products is aimed at domestic and international product issuers that provide investment products for both retail and institutional investors but who have not, traditionally, been provided with a dedicated operating framework within the exchange-traded environment.

A new rules framework, called the AQUA Rules, will support the listing of these products on ASX. The AQUA Rules expand the range of ASX services beyond equities, A-REITS (listed property trusts), listed investment companies and warrants, all of which are listed under either the ASX Equity Listing Rules or the ASX Warrant Listing Rules.

The proposed AQUA Rules are subject to the non-disallowance process under the Corporations Act.

More information on the new market service released today can be found on the following links:

Latest Stock Market News

London shares outlook - Easier after NY falls; bank earnings, interest rates key

LONDON (Thomson Financial) - UK blue chips are expected to open lower Monday following pre-weekend falls on Wall Street, with further earnings reports from UK banks, kicking off today with HSBC, and global interest rate decisions to be the main focus of attention this week.

Spread bettors IG Index expect the FTSE 100 index to open around 8 points lower at 5,346, after closing 57.2 points lower Friday at 5,354.7.

Pre-weekend on Wall Street, the DJIA closed 51.70 points weaker at 11,326.32, while the broader S&P 500 index fell 7.07 points to 1,260.31, and the Nasdaq Composite lost 14.59 points at 2,310.96.

Wall Street retreated after readings on U.S. jobs and manufacturing -- the first reports for the third quarter -- indicated that businesses and workers still face a tough economy.

Asian markets were lower today, with Japan's Nikkei 225 index down 133.53 points at 12,961.063 at midday, while Hong Kong's Hang Seng ended the morning 202.97 points weaker at 22,659.63.

World Stock Markets Rally

LONDON — Asian stocks surged, Europe extended its gains and Wall Street was poised to rally once more Wednesday amid a growing belief that the worst of the credit crisis is over.

In Europe, share prices rose for banks such as UBS, which announced it was issuing new shares to help bolster its balance sheet after another massive write-down linked to bad U.S. mortgages. But automakers lagged on weak U.S. sales data for March, as well as a broker downgrade for Daimler.

In the U.K., the FTSE 100 rose 0.22 percent at 5,865.30, while Germany's DAX gained 0.65 percent at 6,763.77. France's CAC 40 climbed 0.68 percent to 4899.16.

Shares of UBS rose 3.27 percent, while Barclays PLC jumped 3.39 percent and Royal Bank of Scotland added 2.84 percent.

In Tokyo the Nikkei 225 index rose 4.2 percent to 13,189.4. Hong Kong's Hang Seng Index climbed 3.2 percent to 23,872.4.

FTSE falls on US data, miners; British Energy dips

* FTSE 100 1.1 pct lower after U.S. data

* Miners fall as metal prices slip; crude rises

* Kingfisher rises after sale of Castorama Italy business

* British Energy down as EDF walks away from bid

By Michael Taylor

LONDON, Aug 1 (Reuters) - Britain's benchmark share index extended losses to fall by more than 1 percent on Friday as U.S. jobs data weighed, while mining stocks tracked metal prices lower and British Energy (BGY.L: Quote, Profile, Research) slipped after a takeover blow.

The FTSE 100 .FTSE ended down 57.2 points, or 1.1 percent, at 5,354.7 and is 17 percent lower for the year to date.

Across the Atlantic, U.S. shares fell to weigh on UK sentiment following GM's (GM.N: Quote, Profile, Research) big loss, which added to worries about consumer spending, and U.S. employment data.

US STOCKS-Wall Street dips on GM loss, oil, jobs data

* Oil rises on tension about Iran's nuclear work

* Hefty loss at GM adds to U.S. auto sector woes

* Biogen sinks biotechs, pulls down Nasdaq

* Dow down 0.5 percent; Nasdaq, S&P off about 0.6 pct (Updates to close, changes byline)

By Steven C. Johnson

NEW YORK, Aug 1 (Reuters) - U.S. stocks fell on Friday as a $15.5 billion quarterly loss from General Motors (GM.N: Quote, Profile, Research) and a rise in oil prices added to fears the economy could slip into recession and concerns about corporate earnings.

A government report showing U.S. employers cut jobs for the seventh straight month in July added to market worries, though the decline in payrolls was not as severe as had been feared. The report also showed the jobless rate jumped to its highest level in four years. For more see [ID:nN01429062].

General Motors' (GM.N: Quote, Profile, Research) second-quarter loss was the latest example of how rising oil prices are hurting consumer spending. Its shares slumped 7.6 percent to $10.23 and weighed on the Dow and S&P.[ID:nN01288721].

Sliding global metal prices and weak manufacturing data around the world knocked the shares of aluminum maker Alcoa (AA.N: Quote, Profile, Research) nearly 5 percent lower. Shares of Caterpillar (CAT.N: Quote, Profile, Research), the mining and heavy equipment maker, fell 2 percent. The two were the top drags on the Dow.

Market Report: Stock Ticker

Market Updates
A late sell off knocked the stock market sharply lower before closing near its worst point of the session. The Dow and the S&P 500 finished 1.8% and 1.3% lower, respectively. The Nasdaq closed with a modest loss.


Thursday s loss concluded what was an overall pessimistic session. The tone was set early on after disappointing economic data was unveiled.

According to the latest government data, the U.S. economy expanded 1.9% in the second quarter, missing 2.3% gain economists were expecting. Though the top line of this number is a bit disappointing, its downside surprise is to a negative impact from inventories. What is more, trends in consumer spending, business investment, exports, and government spending were generally better than forecast.

Many Wall Street pundits and economists believe U.S. economic growth will not return to its full potential until housing has successfully turned around. Former Fed Chairman Greenspan stated in an interview on CNBC that home prices are no where near a bottom. He also acknowledged there

UK Market Updates

Searching for a price

There are a number of different routes you can use to access the price information.

From the main website homepage and from the Prices & news page you will see a Price Search panel with the instruction “Enter Name/code”. Here you can enter the company name, a TIDM code, a SEDOL code or an ISIN code. The search results will then display a list of all companies matching your search criteria. Clicking on the company name will then take you to the detailed price page for that company.

If there are a large number of stocks that match your search criteria they will be displayed on several separate pages. Navigate your way through these pages by clicking on the page numbers at the top or bottom of the table.

A more specific search facility is available within the Prices & News section by clicking on Companies & Prices. From this page you can search by name or code. You can also further define your search based on industry sector or index, by market, by international or landMARKTM region.

When you are in the Companies & Prices section you will see a number of options down the left hand navigation menu e.g. AIM, landMARK, techMARK mediscience, Covered Warrants etc. These options will take you to the relevant price search page.

Stock Market Summary - Provided by Briefing.com

2008-07-28 16:20 ET Dow -239.61 Dow Close 11131.08 Nasdaq -46.31 Nasdaq Close 2264.22 S&P -23.39 S&P Close 1234.37 Nasdaq100 -2.4 SandP_Midcap400 -1.2 Russell2000 -2.0 NYAdv 857 NYDec 2289 NQAdv 690 NQDec 2126

Monday was not a good session for stock market bulls. Stocks tumbled 1.9%, settling at session lows, after the financial sector was unable to hold onto its opening gains, prompting a broad-based sell off. A 1.2% rise in oil...

Market Update

Weekly Recap - Week ending 25-Jul-08

The stock market was unable to build on the prior week's gains, but it wasn't for a lack of trying. In turn, it wasn't because it lacked catalysts either.

Oil prices slipped another 4.7% to $123.34 per barrel, the financial sector was up as much as 10.6% at its high for the week, earnings news was generally better than expected (or feared in some cases), and Congress, by all accounts, was on the verge of passing a housing bill that the president already said he would sign into law.

The surge in financials early in the week stemmed from a continuing sense of relief that there wasn't another round of dilutive capital raising efforts and the idea that Fannie Mae and Freddie Mac weren't going to be allowed to fail.

Bank of America kicked off the reporting for the financial sector this week and it did so a relatively good note, offering an indication that its intention is to maintain its current dividend. In contrast, Wachovia, Regions Financial, and Fifth Third all cut their dividend, yet none signaled that they would have to raise more capital through a stock offering.

The enthusiasm toward the financial stocks ended in a hurry on Thursday, though, when the sector dropped 6.8% and suffered its largest decline in more than eight years.

The thinking that the sector had gone too far, too, fast, coupled with the return of worries about the sector's financial condition, which followed many reports of large increases to provisions for loan losses, led to the reversal of fortune. From its high on Wednesday to its close on Friday, the sector dropped 9.7%.

From our vantage point, the financial sector pullback should not have been seen as a surprise.

CRASH ALERT UPDATE

As overviewed in my June "Stock Market Crash Alert", based upon Dow Theory, the Elliott Wave Principle and other forms of technical analysis, there is a high probability the a "Grand Supercycle" collapse in stock prices and mass mood is now underway that will ultimately outline the collapse of Western Civilization.

At the current juncture, there is the possibility that a full-scale global financial panic is developing that could result in a crash as soon as the coming week. However, I deem this to be a low probability with the greater likelihood being that a significant "dead cat bounce" is due for the stock market after which the crux of the "Grand Supercycle crash" should be expected to unfold....possibly in the "Fall" of this year.

World News "Banks brace for more pain"

Arch Coal said on Friday its second-quarter profit tripled and topped Wall Street expectations as strong global demand pushed coal prices higher.

The St. Louis company

ARCH COAL INC ACI 55.64 4.70 +9.23% NYSE

Quote | Chart | News | Profile

[ACI 55.64 4.70 (+9.23%) ] also raised its full-year outlook, and its shares jumped nearly 10 percent in morning trading on the New York Stock Exchange.

"Global markets for coal are incredibly tight," Gordon Howald, analyst with Calyon Securities, said. "Unless oil is going to collapse and coal follows it down, there is a lot of upside in here for coal stocks."

Net income in the quarter rose to $113 million, or 78 cents a share, from $37.6 million, or 26 cents a share, a year ago and above Wall Street's expectations of 64 cents a share.

"Looking ahead, we expect continued solid execution from our Central Appalachian and Western Bituminous segments coupled with improving fundamentals in our Powder River Basin operations," Chief Executive Steven Leer said in a statement.

Midwest flooding disrupted deliveries of Powder River Basin coal in the second quarter.

Revenue in the quarter rose about 30 percent to $785.1 million, driven by higher averages sales prices in all its operating regions.

Analysts on average had forecast revenue of $738.5 million, according to Reuters Estimates.

2008 Market Review & Forecast

The TIA 2008 Telecommunications Market Review and Forecast provides the most reliable and up-to-date information on the telecommunications industry. It will help you anticipate market changes, assist you in adjusting your business models, and give you the confidence to explore new business opportunities and provide your customers with new and innovative products, services and solutions. As you develop your business plan and strategy, reference the most comprehensive report in the industry – the TIA 2008 Telecommunications Market Review and Forecast. See historical data back to 2001 and projections through 2011.

Trends, Analyses and Projections

The worldwide telecommunications market is expected to grow at a 9.2 percent compound annual growth rate from 2008 to 2011. How will your company take advantage of this growth, and which segments will fuel this expansion? This report helps you gain insight into trends in major industry segments, including:

• Applications Software
• Broadband Technologies (DSL, cable, satellite, fixed wireless)
• Broadband over Power Lines
• Collaborative Technologies (audioconferencing, web conferencing and video conferencing)
• Converged Data Networks
• Economic, Regulatory and Technology Drivers
• EDGE Technologies/Softswitches
• Formal/Non-formal Call Centers
• International Markets
• Interexchange Market
• IP-equipment and Applications
• LAN/WAN Internetworking
• Landline vs. Wireless Communications Market
• Mobile Communications
• Network Infrastructure Equipment and Services
• Optical Networking
• Professional Services
• Prepaid Telephony, including wireless and Internet
• Virtual Private Networks
• Voice over Internet Protocol
• Voice Recognition Technologies
• Voice/Data Communications for the Enterprise
• Wireless Data Services
• Wireless Internet Access including Wi-Fi and WiMAX
• And more …

KSE Exchage

But it still intrigues me why and how the market in an economy like Pakistan - where the stock market itself is rather small in terms of size as well as participation - works in relation to what is happening in the society at large. The charts, and news, clearly indicate that the stock exchange in Pakistan has not been oblivious to the political and socio-economic upheavals of the last many months. But the direction seems to have been clearly upwards and it is not clear just how much of those events are reflected in the market.

One is used in larger markets (USA, Europe, Japan) to seeing the happenings in society and politics to have deep and immediate impacts on the market fluctuations. Is it the same in Pakistan? Or is it that because so many fewer people are actually invested in stocks that the stock market’s rhythms are less intertwined with local happenings and more with global and international happenings (especially if much of the capital flow is from international investors)? And, if, indeed, the stock market in Pakistan is as much of a barometer and reflection of what is happening in the country, then what is it that the market has been telling us all year, and is telling us now?

I know that many of our readers have far greater expertise in this area. Maybe they can help me and others decipher the meaning of all of this better.

KSE-100 Index Sets New Record: What is the Market Telling Us?

On Tuesday the Karachi Stock Exchange’s (KSE’s) KSE-100 Index - Pakistan’s equivalent to the Dow Jones Index - broke the psychological barrier of 15,000 for the first time. At the time of writing this (on what is Wednesday morning in Pakistan) the Index remains well above that mark.




The rise of the stock market(s) in Pakistan in recent years has been phenomenal. Much of this matches the rise of emerging markets all over the world, but the rise over the last year is particularly phenomenal given just how depressed, depressing, uncertain and unclear the politics of the country has been. My friends who work in the financial sector tell me that money can be made from bad news as much as from good news. I am sure they are right, though I am not sure if I understand all the nuances of how.