[R]2:30PM New York – Dollar falls to a record low after the Fed cuts rates.[/R]

The Federal Open Market Committee lowered its target rate for the federal funds rate 25 basis points to 4.5%. Of the ten voting members Thomas M. Hoenig was the only member who voted for the rate to be left unchanged.

The move to lower the rates was widely expected on the Wall Street. The Fed stated that economic growth has been solid in the third quarter and but the pace of growth is likely to slow-down in the coming quarters. The Fed also said that rising commodities and oil prices are fueling the inflation pressures.

The Fed said in the statement, “Today’s action, combined with the policy action taken in September, should help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and promote moderate growth over time.”

The Board of Governors unanimously voted to lower the discount rate by 0.25% to 5%.

Economists are divided on the rates direction. While a vocal majority of the economists working on Wall Street had favored a rate reduction between 25 and 50 basis points but a silent group of economists working for industrial organizations prefer the Fed not to lower the rate. The Fed is viewed as pandering to the Wall Street interests after delivering a rate cut of 50 basis points in the last meeting on the September 18th.

Dollar dropped to a record low against euro and contributed to the rise in precious metals and oil prices. Dollar dropped to a record low to $1.4466 against euro after the rate decision. Oil reached $94.50 and gold surged to $795.30.


[R]11:30AM New York – MasterCard earnings soar 63% on net revenue rise of 20%.[/R]

Master Card (MA: chart) third quarter net revenue increased 20.1% to $1.08 billion. Weak dollar added 2.3% to the revenue in the quarter and 1.6% to the operating expenses.

Fueling the higher revenue in the third quarter versus the same period in 2006 was growth in MasterCard''s gross dollar volume, which increased 12.8% on a local currency basis, to $577 billion; a 13.3% increase in the number of transactions processed to 4.8 billion; and, an increase in cross- border volumes of 20.6%.

Worldwide purchase volume rose 14.1%, on a local currency basis, during the quarter to $430 billion, driven by increased cardholder spending on a growing number of MasterCard cards. As of September 30, 2007, the company''s customers had issued 878 million MasterCard cards, an increase of 11.3% over the cards issued at September 30, 2006.

In local currencies, purchasing volume growth was led by 29% increase in South Asia, Middle East, and Africa, followed by increases in 23.9% in Latin America, in Asia Pacific of 22.2%, in Europe 16%, in Canada of 14%, and 9.4% in the U.S.

''We continue to benefit from positive secular trends and outstanding growth in international and emerging markets such as South Asia/Middle East/Africa and Latin America”, said Robert W. Selander, MasterCard president and chief executive officer.

MasterCard third net income increased 63% to $314 million or $2.31 per share from $193 million or $1.42 per share. After deducting one-time gain of partial stake in Redecard in Brazil, earnings increased to $1.80 per share.

Total operating expenses increased 16.3% to $730 million on higher advertising and market development expenses which increased to $264 million. General and administrative expenses increased 10.2% to $433 million. The company contributed $10 million to MasterCard Foundation.

Redecard SA 25% stake sale resulted in gain of $112 million or 51 cents to earnings in the quarter.

For the nine months MasterCard reported net income of $782 million or $5.73 per share or earned $724 million or $5.31 per share on net revenue increase of 20.4% to $3 billion. As of September 30th the company has repurchased 2 million shares at a cost of $277 million and subsequently it purchased an additional 1.4 million shares at $223 million.

MasterCard said that it will increase its share buyback plan to $1.25 billion from $500 million. The number of transaction processed increased by 13% to $577 billion.

The company also converted 7.6 million of class B shares to Class A common stocks and expects to convert 5.8 million of Class B shares by the end of the second week of December. The company plans to sell these shares to public at a later date.

MasterCard has currently 135.357 million shares outstanding.