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Hold on Rates Dragged Averages
Jan 10, 5:21 PM EST |
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| European markets closed lower across the region after the ECB and BoE kept rates unchanged. |
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| The ECB and BoE kept rates on hold on the worries of rising inflation, lifting the euro against dollar. French industrial output declined 1.3% in November from october and 2.3% from a year ago. German retailer Metro sales increased 10% to 65.9 billion in 2007 on the strength in the emerging markets lifting the stock by 6%. Lufthanssa December traffic increased 5.5% in December on more flights to Asia and U.S. Tisacali in Milan fell 6% after it received approval to buy Pipex broadband business. |
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Countrywide Buyout Talks Lifted Stocks
Jan 10, 5:02 PM EST |
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| Bank of America and Countrywide Financial are in talks to explore a buyout of the troubled lender. |
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| U.S. stocks rebounded after the news that Bank of America is in advacned talks to pruchase Countrywide Financial. Bank of America only few months ago acquired La Salle Bank based in Chicago and has made more than $100 billion of acquisition in the last four years. Countrywide stocks jumped 52% on the speculation but has lost nearly 90% from its peak of $45. Same store sales in December at retailers were weak and sales at apparel stores sell fell. Ann Taylor, Mens Wearhouse, Barnes & Noble fell. |
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BoE Left Rates at 5.5%
Jan 10, 1:25 PM EST |
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| The Bank of England left interest rates unchaged and inflation fears mounted on rising energy and food cots. The ECB left rates unrevised as well. |
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| The Bank of England left interest rates unchaged at 5.5% after lowering the rates a month ago. The European Central Bank left rates at 4% as well. Rhetoric of inflation fighting from central bankers in Europe heated up as inflation in energy and food prices is above the target level. FTSE 100 index declined 0.8% or 50 to 6,222.70. Sainsbury led the advancers in the index with a gain of 6% on December sales rise of 5.9%. |
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U.S. Stocks Rebound; European Rates Unchanged
Jan 10, 1:07 PM EST |
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| The European Central Bank and the Bank of England left rates unchaged as inflation fears rise in the region. |
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| December U.S. same store sales were weak in general and especially for the department stores. Wal-Mart sales rose 2.4% but at Target sales declined 5%. Oil fell after the economic slow down worried gained momentum around the world and lifted transportation and airline stocks. Monthly gasoline purchase rose 1% from a year ago in December in the U.S. Captial One Financial lowered its 2007 earnings outlook. Tata Motors in India lauched $2,500 car, forcing others to lower prices. |
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Tata Motors Launches Nano
Jan 10, 10:46 AM EST |
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| Tata Motors lauched Nano and hoped that thin profit margin not hurt the company profitability. |
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| Tata Motors launched small car named Nano priced at 100,000 rupees ($2,500). India has seen a rapid growth in sales in small car segment in the last three years on the back of more than 7% economic growth. Tata Motors will compete with Suzuki, Bajaj, and Hyundai in a market for 300,000 small cars in India. Sensex closed lower 1.4% on the weakness in banking and financial services stocks. |
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Australia Declines, Down 10% from Peak
Jan 10, 9:36 AM EST |
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| Australian stocks fell from the morning gains after global market jitters hurt the loca sentiment. |
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| Australia is likley to miss most of the impact from the potential U.S. economic recession. Australia may b hurt if the Chinese demand slows down, but there may be a lag in the economi cycles. Economist Richard Gibbs of Macquarie Group said on the ABC Radio in Australia. The U.S. accounts only 7% of total Australian exports and economic slow down in the U.S. is not likely to have a direct impact on the Australian economy. |
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Alcoa's Profit Rises 76%, Beats Estimates
Jan 10, 8:43 AM EST |
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| Fourth quarter net income jumped 76% to $632 million compared with $359 million reported in the year-ago quarter. |
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| The world number one aluminum maker’s earnings climbed 82% to 75 cents per share from 41 cents a year earlier, marking the company’s biggest gain so far. Third quarter earnings stood at $555 million or 63 cents a share. Lower metal prices and the poor results from the soft alloy extrusion business, reduced quarterly revenue to $7.39 billion from $7.84 billion last year. During 2007, Alcoa faced higher material and energy costs but continued to pump money into its capital improvement program. |
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Japan Foreign Reserves at $973 B
Jan 10, 8:20 AM EST |
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| Japan's foreign exchange reserve rose to $973.37 billion in December. Only 2% of the reserves are held in gold. |
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| Stocks in Japan fell on the worries that real estate stocks may be hurt in the domestic market as foreign banks may be forced to sell their holdings. Nikkei 225 dropped 1.45% or 211.05 to 14,388.11 and broader Topix Index declined 1.6% or 22.93 to 1,401.36. The Cabinet Office reported the leading index of economic performance dropped to 10.0 in November from 18.2 in October. Of the ten indicators nine indicated a contraction. |
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