October 5, 2011: Some News That Matters

Ft.com

European Union finance ministers are examining ways of co-ordinating recapitalizations of financial institutions after they agreed that additional measures were urgently needed to shore up the region’s banks

Although the details of the plan are still under discussion, officials said EU ministers meeting in Luxembourg had concluded that they had not done enough to convince financial markets that Europe’s banks could withstand the current debt crisis. http://www.ft.com/intl/cms/s/0/b1219a20-eeab-11e0-959a-00144feab49a.html#axzz1Zgu7c53P

Moody’s Investors Service late on Tuesday slashed Italy’s government bond ratings by three notches to A2, citing an increase in long-term funding risks for sovereigns in the eurozone who, like Italy, have high levels of public debt.

The move was Moody’s first downgrade of the country’s sovereign debt since 1993, but followed a recent downgrade by rival rating agency Standard & Poor’s. Moody’s now rates Italy A2, which is parallel to S&P’s assessment of single A.

Both rating agencies have a negative outlook on the debt, meaning further downgrades are possible. http://www.ft.com/intl/cms/s/0/c5e5de2a-eed4-11e0-959a-00144feab49a.html#axzz1Zgu7c53P

Jean-Claude Trichet has dashed hopes that the European Central Bank will ride to the rescue of the eurozone by pledging to backstop crisis-hit member states.

In one of his last appearances as ECB president, Mr Trichet rejected the idea of the ECB acting as lender of last resort to governments. It was up to eurozone political leaders to restore investor confidence in Europe’s monetary union, he told the European Parliament. http://www.ft.com/intl/cms/s/0/07b5a996-ece8-11e0-be97-00144feab49a.html#axzz1Zgu7c53P

The chairman of the US Federal Reserve has accused China of damaging prospects for a global economic recovery through its deliberate intervention in the currency market to hold down the value of the renminbi, http://ftalphaville.ft.com/thecut/2011/10/05/693181/bernanke-criticises-china-over-currency-2/

Eurozone finance ministers gave a clear indication they were preparing to paper over Greece’s failure to hit international lenders’ mandated budget targets for 2011, saying they would now evaluate Athens’ performance based on goals that combine both this year’s and next year’s finances, http://ftalphaville.ft.com/thecut/2011/10/04/692176/eurozone-ministers-reset-greece%e2%80%99s-goals/

Apple’s keenly awaited latest version of its flagship iPhone initially disappointed investors on Tuesday, as new chief executive Tim Cook’s debut product launch failed to meet expectations, the FT reports. The iPhone 4S looks very similar to the iPhone 4 but includes a faster chip, http://ftalphaville.ft.com/thecut/2011/10/05/693281/apple-unveils-modest-iphone-update/

US prosecutors and lawyers for Raj Rajaratnam, the convicted founder of Galleon Group, squared off in court on Tuesday over how to measure profits the hedge fund founder made from insider trading, the FT reports. The judge asked the government to submit additional profit calculations and said he would announce his ruling at next Thursday’s sentencing hearing.http://ftalphaville.ft.com/thecut/2011/10/05/693261/lawyers-at-odds-over-rajaratnam%e2%80%99s-profits/

The city and state of New York and US Department of Justice have filed separate civil lawsuits against Bank of New York Mellon, alleging the world’s largest custody bank defrauded pension funds, US banks and millions of investors nationwide on currency transactions for 10 years, http://ftalphaville.ft.com/thecut/2011/10/05/693201/bny-mellon-sued-over-currency-rates/

Wsj.com


Asian stock markets were mixed Wednesday as investors remained cautious after the recent steep selloffs, with the Tokyo and Seoul markets falling. Japan’s Nikkei Stock Average fell 0.9%, Australia’s S&P/ASX 200 climbed 1.3% and was off its opening 2.1% gain, while South Korea’s Kospi Composite lost 1.6% in volatile trade and New Zealand’s NZX-50 advanced 0.1%.  Dow Jones Industrial Average futures were down 16 points in screen trade. The Dow Jones Industrial Average had staged a late session rally Tuesday to end 1.44% higher on the encouraging news from Europe. http://online.wsj.com/article/SB10001424052970204524604576611780755947092.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

The admission by top European officials that Greece’s fiscal distress is deepening has increased the chance that a July deal to give Athens more cash could be revised to exact a greater toll on its private-sector creditors. WSJ’s Charles Forelle reports European markets were spooked by comments by Luxembourg Prime Minister Jean-Claude Juncker, who indicated Greece’s July bailout package could be up for review. At a two-day closed-door meeting here that ended Tuesday, European finance ministers debated what to do with their sickest patient. No decisions were made, but the notion of bigger losses for creditors was broached, people familiar with the matter said. http://online.wsj.com/article/SB10001424052970204524604576610653206117820.html?mod=WSJEurope_hpp_LEFTTopStories

Mark Adelson is known in the financial world as the rating industry’s bad cop. In the past three years, the chief credit officer of Standard & Poor’s has helped revamp the firm’s grading process after the industry’s giants were lambasted for assigning overly optimistic ratings to securities that cratered, exacerbating the 2008 financial crisis. http://online.wsj.com/article/SB10001424052970204138204576598822458842368.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

China long has been criticised for keeping its currency low in an effort to boost its export-dominated economy. Yet last month the yuan was one of the world’s best-performing currencies, with more than a little help from its greenback friend. http://online.wsj.com/article/SB10001424052970203791904576611212291524454.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Investors are increasingly scrutinizing the euro-zone assets held by German banks for fear the lenders might face big-write downs on their exposure to struggling Southern European countries such as Greece. German banks have so far avoided the worst of the recent strains in capital markets, and still have solid access to funding. But analysts say German banks such as Deutsche Bank AG, Commerzbank AG and the public-sector Landesbanks won’t be able to avoid the turmoil spreading through the sector. http://online.wsj.com/article/SB10001424052702303970604576401784266427362.html?mod=WSJEUROPE_hpp_LEFTTopWhatNews

Marketwatch.com


Crude-oil futures rebounded sharply during early Asian trading hours Wednesday after data showed an unexpected drop in crude stocks. Benchmark Nymex light, sweet crude-oil futures advanced $1.96, or 2.6%, to $77.63 a barrel in electronic trading, taking back some recent losses. Crude-oil supplies fell by 3.1 million barrels for the week ended Sept. 30, the American Petroleum Institute reported late Tuesday. http://www.marketwatch.com/story/oil-futures-surge-after-data-2011-10-04

Acute power shortages will continue in parts of China in the upcoming winter and spring seasons, particularly in the southern and central regions where most of the country’s hydropower power stations are located, an energy official told a press conference Saturday. According to the State Electricity Regulatory Commission, hydroelectricity accounts for 16% of China’s total electricity consumptionhttp://www.marketwatch.com/story/chinas-power-shortages-to-run-through-winter-2011-10-04

Australian retail sales rose a seasonally adjusted 0.6% in August, the Austalian Bureau of Statistics reported Wednesday, with the result matching July’s gain and well outpacing a concensus forecast rise of 0.2% from a Dow Jones Newswires survey. Household goods led the rise, up 1.7% during the month, followed by restaurant sales, up 1.2%. Sales were down 0.8% at department stores and down 0.3% for clothing, footwear and accessories. http://www.marketwatch.com/story/australias-august-retail-sales-beat-expectations-2011-10-04

Reuters.com


U.S. gold futures gained 1 per cent to above $1,630 an ounce on Wednesday, driven by a return to bargain hunting after prices dropped the previous day, while a rebound in the euro against the U.S. dollar also spurred buying. U.S. gold added $15.8 an ounce to $1,631,8 by 0303 GMT, after rising as high as $1,636.50 ounce. Spot gold rose $9.43 an ounce to $1,629.35 an ounce.http://www.reuters.com/article/2011/10/05/us-markets-precious-idUSTRE78M11C20111005

Greece will default on its debts, Ireland could too and Greek Prime Minister George Papandreou and German Chancellor Angela Merkel will be forced out as Europe’s financial crisis plays out, author Michael Lewis predicted on Tuesday. The writer who began his career exposing the culture of excess at Salomon Brothers in “Liar’s Poker” is promoting his latest book “Boomerang: Travels in the New Third World,” published this week by W.W. Norton. http://www.reuters.com/article/2011/10/04/us-books-michaellewis-idUSTRE79365120111004

Europe is likely already in a mild recession, and the United States could very well join it, but the global economic turmoil is unlikely to reach the depths of the 2008 downturn, Morgan Stanley’s (MS.N) Stephen Roach said on Tuesday. Unless Europe totally vaporizes before our very eyes, and that is not my view, I think the likelihood of a major global shock that would prove so disruptive to the entire world economy, is low,” Roach, non-executive chairman of Morgan Stanley Asia told the Toronto CFA Society forecast dinner. http://www.reuters.com/article/2011/10/05/us-economy-outlook-idUSTRE7940M720111005

The Federal Reserve is prepared to take further steps to help an economy that is “close to faltering,” Fed chairman Ben Bernanke said on Tuesday in his bleakest assessment yet of the fragile U.S. recovery.  Citing anemic employment, depressed confidence, and financial risks from Europe, Bernanke urged lawmakers not to cut spending too quickly in the short term even as they grapple with trimming the long-run budget deficit. He made clear that the U.S. central bank’s policy committee considers inflationary pressures well under control and given high unemployment, would be ready to ease monetary conditions further following the launch of a new stimulus measure in September. http://www.reuters.com/article/2011/10/04/us-usa-fed-bernanke-idUSTRE79337C20111004

Bloomberg.com


Japan should hold more of its foreign reserves in emerging market assets to diversify its $1.2 trillion pool, a ruling party lawmaker said. “We should invest in not just the dollar and the euro, but our trading partners like China, South Korea and Thailand,” Tsutomu Okubo, deputy head of the Democratic Party of Japan‘s policy committee, said yesterday in an interview in his office in Tokyo. “Holding Asian currencies like the yuan, the won and the Thai baht is natural if our trade with Asia is going to grow.” http://www.bloomberg.com/news/2011-10-05/japan-needs-more-china-korea-assets-okubo.html

French President Nicolas Sarkozy‘s re-election may be threatened by corruption probes involving his associates, undermining his bid to play a leading role in resolving the European debt crisis. With about 200 days to go before his term ends, “les affaires,” or the scandals, as the French media calls them, have driven his popularity close to a record low. Two-thirds of respondents in an Oct. 3 poll said they don’t see him winning in 2012. The opposition Socialist Party won control of the senate last month for the first time since World War II. Sarkozy’s Union for a Popular Movement has lost all four local and regional votes since his May 2007 election. http://www.bloomberg.com/news/2011-10-04/sarkozy-s-euro-debt-role-undermined-as-re-election-threatened-by-inquiries.html

European countries with debt ratings below the top Aaa level may see reductions in their rankings, Moody’s Investors Service said. “All but the strongest euro-area sovereigns are likely to face sustained negative pressure on their ratings,” Moody’s said in a statement. “Consequently, Moody’s expects fewer countries below Aaa to retain high ratings.” It added that “there are no immediate pressures that could cause downgrades for Aaa-rated countries.” The statement came after the company yesterday cut Italy‘s rating for the first time since 1993 on concern the government will struggle to reduce the region’s second-largest debt amid chronically weak growth. Italy was cut three levels to A2 from Aa2. Standard & Poor’s downgraded Italy on Sept. 20 for the first time in five years. http://www.bloomberg.com/news/2011-10-04/euro-area-nations-below-aaa-may-see-ratings-cut-moody-s-says.html

Less than three months after Dexia SA (DEXB) got a clean bill of health in European Union stress tests, France and Belgium are considering a second bailout, moving the banking crisis from the continent’s periphery to its heartland. “We’re seeing a practical example of contagion playing out,” said Jean-Pierre Lambert, an analyst at Keefe Bruyette & Woods in London, referring to Dexia’s “material exposure” to the debt of countries on the EU’s rim. “Investors aren’t quite sure what the sovereign debt losses will be, nor where the share price should be. They are concerned about the risks and reduce their funding.” http://www.bloomberg.com/news/2011-10-04/dexia-rescue-moves-bank-crisis-from-europe-s-periphery-to-core.html

The number of real-estate and construction companies seeking bankruptcy in England and Wales rose by 11 per cent in the third quarter as budget cuts and economic uncertainty led to canceled projects, Deloitte LLP said.  A total of 117 property companies and builders went into administration in the period, up from 105 a year earlier, Deloitte said today in a research report. The industries are unlikely to improve in the next quarter and medium-sized firms will be hurt more than larger contractors, the U.K. affiliate of Deloitte Touche Tohmatsu said. “Rising energy prices and significant cuts to public and private sector building projects have brought a large amount of planned projects to a grinding halt,” Nigel Shilton, real- estate industry partner for Deloitte, said in the statement. “The next quarter is not going to bring any relief from the pressures.” http://www.bloomberg.com/news/2011-10-04/real-estate-bankruptcies-rise-in-england-deloitte-report-says.html

Cnbc.com


Shoppers hunting for back-to-school deals gave a nice boost to U.S. discount chains in September, though the rocky stock market and economic malaise may have curbed some people’s desire to spend more. September is a particularly important time for retailers focused on children’s and young adult apparel. Back-to-school shopping is the second-largest retail spending season behind the holiday period of November and December http://www.cnbc.com/id/44777543

Cnn.com


Treasury Secretary Tim Geithner on Tuesday joined a chorus of Democratic officials hitting back at bank fees, saying the administration “will prevail” in the battle over banking reforms. “There are no surprises, nothing strange about the fact that banks are resisting it — are pushing back,” Geithner told CNN’s Erin Burnett. “They are trying to weaken those reforms.”http://money.cnn.com/2011/10/04/news/economy/geithner_bank_fees/index.htm?cnn=yes

USAtoday.com


Consumers may catch a break on the price of gasoline and baked goods and sweets as the Thanksgiving-Christmas season approaches, thanks to a sudden tumble in worldwide commodity markets. The consumer price outlook has brightened, in part, because commodity speculators have fled the energy and grain markets in the face of fears of a global recession triggered by the European debt crisis, says Tomm. The price of regular gasoline dropped Tuesday to a national average of $3.41 a gallon. It is down about 15% since peaking in May near $4 a gallon. The Department of Energy forecasts gas prices won’t rise sharply until spring. Crude oil has fallen from more than $100 a barrel just before Memorial Day to less than $76 Tuesday http://www.usatoday.com/money/economy/story/2011-10-04/consumer-prices/50662332/1

Washingtonpost.com

Overseas investors sold Malaysian stocks for a second straight month in September, as the benchmark index capped its biggest quarterly slump in almost three years. Foreign funds unloaded 300 million ringgit ($94 million) of Malaysian shares last month, according to data on the Kuala Lumpur stock exchange’s website. Some 3.8 billion ringgit flowed out of equities in August, the most since at least October 2009, after four consecutive months of inflows. The benchmark FTSE Bursa Malaysia KLCI Index slumped 12 per cent last quarter, the most since the three months ended December 2008, as concerns Europe’s debt crisis will hurt economic growth eroded demand for emerging-market assets. The ringgit completed its biggest quarterly loss since 1998. http://washpost.bloomberg.com/story?docId=1376-LSKG0P6JIJUQ01-2RCHQ88K0G9K5KCC69N3EIPTL3

BBC.co.uk

Activity in the UK construction sector slowed to “near stagnation” in September, a closely-watched survey has suggested. The Markit/Cips construction purchasing managers’ index (PMI) fell to 50.1, just fractionally above the 50 “no-change” threshold that separates expansion from contraction. In August, the index had read 52.6. http://www.bbc.co.uk/news/business-15164080

Eurozone finance ministers have delayed making a decision on giving Greece its next instalment of bailout cash, sending European shares down sharply. It came after Greece said it would not meet this year’s deficit cutting plan.  A meeting set for 13 October, when finance ministers had been expected to sign off the next Greek loan, has now been cancelled, said BBC Europe correspondent Chris Morris.http://www.bbc.co.uk/news/business-15161809

Telegraph.co.uk


Britain has won a major victory in a battle to stop heavy-handed EU regulation of financial services but faces a longer struggle to stop German and eurozone discrimination against the City of London. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8807162/UK-wins-major-victory-to-stop-EU-regulation-of-financial-services.html

In a presentation to a conference in London on Tuesday, Stephen Hester, chief executive of the state-backed lender, said the bank’s returns targets were “under review in light of challenges”.  RBS is currently hoping to generate a return on equity from its core business, which constitutes the lender’s ongoing operations, of in excess of 15pc by 2013. In common with other major banks, Mr Hester said it would be harder for RBS to meet its target as he ran through a range of economic and market challenges. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8806989/RBS-chief-Stephen-Hester-warns-bank-may-miss-returns-targets.html

Swiss banking group UBS has said it expects to post a third quarter profit, despite incurring a £1.4bn hit from its rogue trading scandal.  The company said credit gains of Sfr1.5bn (£1bn) on its financial liabilities as well as the sale of treasury related investments worth Sfr700m would help cancel out the losses relating to Kweku Adoboli’s alleged fraud. UBS said its preliminary estimates showed a small quarterly profit, even after Sfr400m worth of restructuring charges linked to its cost-cutting programme. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8805831/UBS-set-for-modest-profit-despite-1.4bn-rogue-trade-loss.html

A bleak assessment of the economic outlook from managers predicting a double-dip recession and the private sector failing to replace jobs lost to public sector cutbacks provided a grim background for David Cameron’s address to the Conservative Party conference. The Chartered Management Institute (CMI) said it saw little prospect of an early recovery. It called for the coalition Government to go further and faster with its deficit reduction programme to improve longer-term prospects and introduce incentives to provide some growth stimulus. http://www.telegraph.co.uk/finance/economics/8804803/UK-managers-expect-double-dip-recession.html

Independent.co.uk


Goldman Sachs forecast that slumping commodity prices would rebound strongly in the next year as growth in demand from prospering emerging markets far outweighed the impact of the crisis in Western economies. After the biggest quarterly decline in commodity prices since Lehman Brothers triggered a global meltdown in 2008, Goldman Sachs forecast that key manufacturing ingredients such as oil, aluminium, copper, nickel and zinc would jump in the coming months. http://www.independent.co.uk/news/business/news/goldman-predicts-new-boom-for-commodities-2365566.html

Smh.com.au


Competition between banks and other lenders for home loan customers has returned to levels last seen before the global financial crisis. In another of the deals currently available in the sector, market heavyweight Westpac this morning ramped-up its home lending offering with a $1000 cash bonus for new home loan customers that sign up by the end of the month. The cash offer comes on top of a discounted variable interest rate. However, JPMorgan banking analyst Scott Manning said the widespread discounting across new loans is unlikely to last while conditions in offshore funding remain challenging. http://www.smh.com.au/business/mortgage-competition-hits-pregfc-levels-20111005-1l84r.html#ixzz1ZslgImUw

Theglobeandmail.com


Europe took a major step toward essentially banning oil sands crude, dealing a blow to the industry’s global image and sparking warnings of a trade battle from the Canadian government. The European Commission proposed that oil sands crude be ranked as a dirtier source of fuel compared with oil from conventional wells. That would discourage imports of oil sands crude since European oil buyers would seek cleaner fuels to help meet the continent’s long-term carbon-emission targets. http://www.theglobeandmail.com/report-on-business/international-news/european/europe-labels-crude-from-oil-sands-dirty-fuel/article2191203/

Xinhuanet.com


China’s Foreign Exchange regulator identified net exports and direct investment, overseas financing, and booming yuan-based cross-border settlement as the three major sources of the nation’s surplus in international balance of payments. According to a report issued by the State Administration of Foreign Exchange, the total surplus of the nation’s international balance of payments amounted to 271.7 billion U.S. dollars in the first half of the year, up 77.1 billion U.S. dollars year-on-year, or 40 per cent. The report said that in the first half of the year, the trade surplus totaled 87.6 billion U.S. dollars while the direct investment surplus totaled 92.7 billion U.S. dollars. http://news.xinhuanet.com/english2010/china/2011-10/04/c_131174592.htm

Singapore’s purchasing managers index (PMI) for September fell to a reading of 48.3, indicating a third consecutive month of contraction in the manufacturing sector, local media reported on Wednesday. A reading below 50 in the PMI indicates a contraction. The electronics industry slowed further, with a reading of 47.2. It was also the third straight month of decline for the sector.http://news.xinhuanet.com/english2010/business/2011-10/05/c_131175194.htm

U.S. President Barack Obama’s newly proposed job plan will support nearly 400,000 education jobs, according to a report released by the White House on Tuesday. The report, Teacher Jobs at Risk, said that the American Jobs Act, which was announced by Obama earlier last month, will keep U. S. teachers in the classroom, strengthen schools and improve the local economy in communities across the country. It noted that the president’s proposal will prevent layoffs of educators and allow thousands more to be hired or rehired. http://news.xinhuanet.com/english2010/world/2011-10/05/c_131174798.htm

Thehindu.com


Top bankers on Tuesday dropped ample hints to the Reserve Bank of India that it’s time it took a breather from its monetary tightening cycle. At a pre-monetary policy review consultation meeting, bankers impressed upon the RBI brass that its rate actions (it raised short-term interest rates by 12 times since March-end 2010) to combat inflation have resulted in muted credit growth and pressures are building up on the asset quality front.  According to Mr M.D. Mallya, Chairman, Indian Banks’ Association (IBA) and Chairman and Managing Director, Bank of Baroda, the year-to-date (April to September 2011) credit growth was not significant and asset quality pressures were showing up in the textile and steel sectors in the backdrop of rising interest rates. http://www.thehindubusinessline.com/industry-and-economy/banking/article2512616.ece

Economictimes.com


The Taj Mahal will collapse within five years unless urgent action is taken to fix its rotting foundations, campaigners warn.  The 358-year-old marble mausoleum is India’s most famous tourist attraction, bringing four million visitors a year to the northern city of Agra. But the river crucial to its survival is being blighted by pollution, industry and deforestation. http://economictimes.indiatimes.com/news/news-by-industry/et-cetera/358-yr-old-taj-mahal-in-the-danger-of-collapsing-within-5-years/articleshow/10241407.cms

Housing supply is estimated to fall short of demand by 1.3 million units in seven major cities of the country during the next five years, according to a report by global property consultant Cushman & Wakefield. Cushman & Wakefield (C&W) has estimated “a total demand of 2.3 million units of residential property in the next five years, while the estimated supply in the same period is expected to be approximately 1 million units, leaving a shortfall of over 1.3 million units”. In its report ‘Embracing Change. Scripting the future of Indian Real Estate’, C&W conducted the survey in the National Capital Region (NCR), Mumbai, Bangalore, Chennai, Hyderabad, Pune and Kolkata for 2011-2015 period. http://economictimes.indiatimes.com/news/economy/infrastructure/ncr-6-cities-to-see-shortage-of-1-3-mn-houses-in-5-yrs-cushman-wakefield/articleshow/10233888.cms

India today said it is looking to conclude the proposed comprehensive free trade pact with the European Union (EU) this year, as the negotiations are in advanced stage with the 27-nation bloc.
Commerce and Industry Minister Anand Sharma, who is here on a three-day visit, said “I am not looking at next year, I might rather look at this year…I remain optimistic. We will be able to conclude it (the negotiations) this year”. India is in talks with the EU, its biggest trading partner, since June 2007 for liberalising trade in goods, services and investment through a Broad-based Trade and Investment Agreement (BTIA). Already 13 rounds of talks have taken place. http://economictimes.indiatimes.com/news/economy/foreign-trade/india-looking-to-conclude-fta-with-eu-this-year-anand-sharma/articleshow/10232489.cms

Yonhapnews.co.kr


South Korean banks are expected to further tighten their grip on mortgage loans in the fourth quarter amid the financial watchdog’s push to curb growing household debt, the central bank said Wednesday. An index gauging lender attitudes on mortgage loans came in at minus 28 for the October-December period, compared with minus 25 tallied in the third quarter, according to a survey of 16 lenders conducted by the Bank of Korea (BOK). The fourth-quarter data marked the lowest level since the index reached minus 41 in the first quarter of 2007, it added.http://english.yonhapnews.co.kr/business/2011/10/05/42/0503000000AEN20111005003400320F.HTML

Themoscowtimes.com
Russia’s inflation rate fell to the lowest level in a year in September as food price growth weakened and higher borrowing costs took hold. Consumer prices rose 7.2 per cent from a year earlier, after an 8.2 per cent increase a month earlier, the State Statistics Service said Tuesday. Prices were unchanged from August. Food prices shrank 0.6 per cent from August. http://www.themoscowtimes.com/business/article/inflation-hits-12-month-low/444844.html#ixzz1ZsoO9upl

Tehrantimes.com
Iran’s oil minister will advise the members of the organisation of Petroleum Exporting Countries to maintain the current level of crude oil production at the group’s next meeting in Vienna on December 14. “As the president of OPEC, Iran’s aim at the next meeting is to maintain the current production ceiling,” the IRNA news agency quoted Iranian Oil Minister Rostam Qasemi as saying on Tuesday. “If the current oil production ceiling is maintained, the price of oil, which is now relatively fair, will not change,” he added.  Qasemi also stated that all OPEC members should stick to their production quotas since it would be beneficial for both consumers and producers. http://tehrantimes.com/index.php/economy-and-business/3218-opec-should-maintain-production-ceiling-iran-says

Khaleejtimes.com


The UAE’s non-oil private sector expanded at a faster pace in September after slowing to a 15-month low in August, a purchasing managers’ survey showed on Tuesday. The HSBC UAE Purchasing Managers’ Index, or PMI, which measures the performance of the OPEC member’s manufacturing and services sectors, rose to 52.11 points from August’s 50.95, the survey of 400 private sector firms by Markit Economics and HSBC Bank showed. A PMI reading above 50 indicates expansion in the sector, while one below suggests decline. http://www.khaleejtimes.com/biz/inside.asp?xfile=/data/uaebusiness/2011/October/uaebusiness_October11.xml&section=uaebusiness

Thetrader.se


Apple is falling hard today. Many “lifestyle” investors are feeling the pain after Apple has been a real dog lately. After posting Apple vs Netflix last week, we got quite a few angry mails explaining to us Apple is about lifestyle and it is unique. That is all true, but staying at the Top, is always the hardest task, irrespective if you are the best or not. Apple is a great company, but it is a very crowded trade…http://www.thetrader.se/2011/10/04/apple-whats-up/

This post originally appeared at The Trader.

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