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World stocks down as investors await US bill

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:21:00 +0000

LONDON: World stock markets fell Monday as investors fretted about the status of banking reform in the U.S. and awaited confirmation of a rescue package for debt-laden Greece. The British pound slipped amid growing British political and economic concerns.

In Europe, the FTSE 100 index of leading British shares was down 11.19 points, or 0.2 percent, at 5,614.46 while Germany's DAX fell 9.01 points, or 0.2 percent, to 5,936.10. The CAC-40 in France was 13.02 points, or 0.3 percent, lower at 3,914.38.

Wall Street was also poised to start the new week modestly lower — Dow futures were down 30 points, or 0.3 percent, at 10,543 while the broader Standard & Poor's 500 futures fell 4.4 points, or 0.4 percent, at 1,142.20.

Given the dearth of economic data in the early part of the week, investors are focusing in on the unveiling of a new banking bill in the U.S. — scheduled for Tuesday.

Investors remain unsure whether the bill will gain support from the U.S. Senate — last week financial stocks were in demand on expectations that the bill would fail to get the necessary support from the Senate.

However, there are signs that many Republicans may back some sort of bill, including giving the U.S. Federal Reserve more regulatory powers.

"Banking regulation has been a sour point across the world since the credit crunch led to many high profile failures," said James Hughes, market analyst at CMC Markets.

"It seems it has been a long time in coming and many are skeptical whether giving more power to the Fed would make any difference," he added.

Whatever happens on the regulatory front, the Fed will take center stage on Wednesday, when its rate-setting body issues its latest policy statement.

Though no one thinks there will be any change in the benchmark Fed funds rate from the current 0-0.25 percent, investors will be on the lookout for any changes in the statement accompanying the rate decision.

Neil Mackinnon, global macro strategist at VTB Capital, thinks the Fed will continue to make a distinction between its interest rate policy and its liquidity policy, paving the way for continued low borrowing costs.

Though the Fed will at some stage likely amend the language in the statement to signal to markets that the monetary landscape is changing especially in the light of stronger economic data, Mackinnon said the likely inclusion of Janet Yellen on to the Fed board of governors plus other candidates who are seen as dovish "is a positive for risk assets, especially equities, given that interest rate policy will remain accommodative for some time."

The British pound slid Monday as investors continued to worry about a political deadlock following the upcoming general election — opinion polls over the weekend continued to point to a so-called "hung parliament" when no one party has a majority. By late morning it was 0.8 percent lower at $1.5045 on the day.

Many investors worry that such as a situation would augur a period of instability and make dealing with the British deficit more difficult.

A warning from credit ratings agency Moody's that Britain, along with the U.S., are more likely than their triple A peers Germany and France to lose their top rating did little to inject a dose of optimism in the pound's fortunes.

In Europe, the focus will also be on Greece following weekend reports that the eurozone countries will provide the country with some sort of financial guarantee as it tries to tap the bond markets for money to plug its deficit.

Greece has the unenviable task of financing around €55 billion of debt maturing this year, with €20 billion due in April and May — the rise in Greek bond yields makes it more expensive to service the debt and that is why Greek Prime Minister George Papandreou is looking for some sort of support from eurozone partners, particularly Germany.

Earlier in Asia, Japan's Nikkei 225 stock average finished little changed at 10,751.98.

Hong Kong's Hang Seng was down 0.6 percent at 21,079.10 and South Korea's benchmark shed 0.8 percent to 1,649.50.

Elsewhere, Shanghai's market fell 1.2 percent after China's yearly policy meeting ended without new measures investors were hoping for to boost domestic consumption, renewable power and other fields.

"The meeting was pretty much about talk rather than substance," said Zhang Kun, an analyst for Guotai Junan Securities in Shanghai.

Markets in Australia and Taiwan also fell.

Oil prices were lower, with benchmark crude for April delivery down 49 cents to $80.75 a barrel.

The euro was down 0.5 percent at $1.3712 while the dollar was steady at 90.66 yen.

Saudi to set up index fund for foreigners

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:20:00 +0000

CAIRO: The head of Saudi Arabia's market regulatory agency says the country will launch a stock market index fund by the end of March into which foreigners can invest.

Capital Market Authority head Abdulrahman al-Tuwaijri, in comments published in Sunday's edition of al-Eqtisadiyah newspaper, that despite the move, Saudi Arabia is still reluctant to allow direct foreign investments in the exchange.

Foreigners are currently able to invest in the exchange — the Arab world's largest — through swap agreements, but are barred from direct ownership.

Analysts say the new fund marks a gradual, but clear, step toward opening the Saudi market to foreign investments.

Euro down to $1.3746 in European trade

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:19:00 +0000

FRANKFURT: The euro is slightly lower against the dollar though worries about Greece's debt problems have subsided recently, helping the common currency.

The 16-nation euro is buying $1.3746 in European morning trade Monday, down from $1.3757 late Friday in New York.

The British pound is lower at $1.5130 compared with $1.5179, while the dollar is higher at 90.66 Japanese yen from 90.51.

Greece said Friday it had exceeded its deficit-cutting targets in January and February while it has proposed higher taxes and spending cuts and sold bonds to get out of a debt crisis that has undermined the euro in recent weeks.

The euro moving to "a close above $1.3800 could well precipitate a move toward $1.40," Michael Hewson, an analyst at CMC Markets said.

35 business concerns to visit Malaysia

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:18:00 +0000

ISLAMABAD: A 35-member delegation of the leading businessmen of Lahore Chamber of Commerce and Industry will visit Malaysia on March 16 to explore joint industrial and marketing opportunities and identify potential areas to enhance Pak-Malaysia trade.

The delegation led by Engineer Sohail Lashari, former senior vice president, Lahore Chamber of Commerce and Industry will undergo a four-week visit, the Commercial Counselor for Pakistan in Malaysia Wajiullah Kundi said in Kuala Lumpur.

Kundi said the visit reflects the importance being given to Malaysia in South East Asia by Pakistan in terms of building strategic ties in bilateral trade, investment and business sectors.

He said these ongoing frequents bilateral visits by the private sectors of both the countries will certainly pave the way for greater cooperation leading to substantial increase in trade investment and business activities.

Wajiullah Kundi while giving detail of the visit said the delegation comprises members belonging to important sectors including agricultural machinery and implements, paper and board, iron and steel, electronics and automobiles, livestock and poultry, importer of used Heavy Agricultural Machinery, importer of Electronic Surveillance and Security Systems, power generation and solar energy, manufacturer of cables machinery, dairy and livestock related machines and textile made-ups (embroidery works).

He said during its stay in Malaysia the delegation is expected to hold meetings with the President and members of the Federation of Malaysian Manufacturers, President and members of the Associated Chinese Chamber of Commerce and Industry Malaysia (ACCCIM) followed by B-to-B meeting.

The delegation will also visit MATRADE Exhibition and Convention Centre (MECC) wherein meetings will also be arranged.

Bilateral trade between the two countries have received a boost after signing of Malaysia Pakistan Comprehensive Economic Partnership Agreement (MPCEPA) in Nov, 2007 which has reduced duties taxes and levies on trade between the two countries, he added.

Some 4 million jobs vanished in 2009: EU

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:17:00 +0000

BRUSSELS: Official data show that some 4 million jobs disappeared in the European Union last year, when countries were struggling to emerge from recession.

In a Monday release, the EU statistical agency Eurostat said EU employment numbers dropped 1.8 percent from 2008 and that 221.1 million people were working in the region in the last three months of the year.

In the 16 nations that use the euro, some 2.72 million jobs vanished as employment fell 1.8 percent from the previous year. Some 144 million were employed in the fourth quarter.

Eurostat says the highest number of job losses were in the manufacturng industry, construction and trade, transport and communication services. Agriculture and public administration, health and education added jobs.

Financial reform efforts pit US against Europe

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:16:00 +0000

NEW YORK – U.S. policymakers are struggling to agree on new rules to avoid another financial crisis.

A global consensus? Even harder.

Efforts are raging on three continents, with at least as many ideas about the proper fixes. Unless the U.S., Europe and Asia adopt uniformly strict regulations, banks and high-risk traders will shift operations wherever rules are loosest. Experts warn another crisis could follow.

The global proposals are clashing on several levels. Among the differences:

• The Obama administration wants to restrict banks' size and ability to take risk. European officials have called that plan unworkable in a region with roughly 40 cross-border banks.

• European Union officials want to crack down on financial derivatives, which they blame for worsening Europe's debt crisis. Derivatives are instruments whose value depends on underlying assets, such as mortgages or currencies. U.S. regulators favor making derivatives trading more transparent. But they've resisted calls to restrict it.

• In Asia, Chinese regulators are forcing banks to set aside more reserves to prevent a U.S.-style credit binge. And India has maintained rules that were already stricter than many in the West.

A report last week on Lehman Brothers' 2008 collapse reminded the world of the matter's urgency. The report said regulators missed Lehman's accounting tricks, which made the firm appear stronger than it was. Lehman's bankruptcy, the biggest in U.S. corporate history, shocked global markets and triggered the $700 billion financial bailout.

But 18 months later, no deal on stricter rules is in sight — domestically or globally. Senate Banking Committee Chairman Christopher Dodd proposed his own bill Monday — without Republican support. And the U.S. and Europe seem far apart on such issues as how to oversee bank accounts and mortgages and whether banks can do proprietary trading. That's when they use their own money to make high-risk bets. If those bets go bad and a bank goes under, taxpayers could be on the hook.

The Lehman disaster underscores the "enormous imperative" to tighten international rules, said Kenneth Rogoff, a Harvard professor and former chief economist of the International Monetary Fund. Yet he doubts countries can agree.

"You're dealing with different accounting standards, different political systems and different banking systems," Rogoff said. "It will be very hard to create one-size-fits-all regulations."

A lobbying blitz by Wall Street banks has helped drive the sides apart. Banks argue that some U.S. proposals would give overseas rivals an unfair edge. Especially in their sights is a proposed Consumer Financial Protection Agency to oversee consumer products.

The House and Senate plans would create a council to monitor threats to the financial system. Both would also set a "resolution authority" to close large failing firms. But key differences remain. One involves the proposed consumer agency. The House favors a freestanding agency; the Dodd bill would place it inside the Federal Reserve.

Europe is weighing some similar reforms. The economic bloc would create three authorities: to govern banking, insurance and markets in all 27 member nations. A watchdog would monitor financial stability. It would also look for any financial-asset bubbles or banks embracing too much risk.

But trans-Atlantic discord is flaring. The Obama administration wants to bar the biggest banks from using their own money to make high-risk bets. It would also limit the size of banks.

The European Union has rejected that plan. In Europe, banks already have been getting smaller. Regulators insisted they shrink to compensate for government aid.

"Trying to apply sweeping rules about the structure, content and range of activities of banking entities is too difficult," British Business Secretary Peter Mandelson said this month.

In addition, European officials have threatened to restrict trading of certain derivatives linked to government debt, called "naked" credit default swaps. Naked swaps are a type of insurance in which investors don't actually hold the insured bonds. European officials argue the swaps have worsened Europe's crisis by magnifying bets that Greece and other indebted nations will default.

Many experts disagree. They say ballooning deficits — not derivatives — have weakened confidence in Greece and other EU nations.

Still, EU officials want the U.S. to help crack down on those swaps. The House and Senate bills would likely require most derivatives trades to go through clearinghouses to make them more transparent. But they wouldn't limit their use.

Another conflict is over hedge funds, which are lightly regulated private investment vehicles. Treasury Secretary Timothy Geithner has voiced concern that disclosure rules that Europe is weighing could block U.S. hedge funds and private equity firms from Europe's market.

EU proposals would likely require big funds operating in Europe to regularly disclose their trades and risk exposure. The idea is to prove they don't threaten the financial system.

By contrast, the Senate bill would require only that big hedge funds pay into a resolution fund to pay for dismantling failing firms.

Andrew Busch, a global strategist at BMO Capital Markets, warns that firms would exploit any differences in countries' rules. Risky activities banned in one country could shift to another with friendlier rules.

"You would invite regulatory shopping — really, country shopping," Busch said. "It's as easy as flipping a switch."

Even the banking industry acknowledges the risk.

"You could have a race to the bottom to those countries and jurisdictions that have weaker protections," said Scott Talbott, chief lobbyist for the Financial Services Roundtable, which includes the largest banks.

The banks argue that the U.S. effort risks stifling financial activity and are fighting elements of it.

"There has to be a balance in how you regulate, or you make banks less competitive," Talbott said.

For a model on how to tighten rules, U.S. and European officials may look East. Asia's banks were relatively unscathed by the West's crisis. In part, that was because China wasn't deeply integrated into the global system. In other cases such as India, regulation was already stricter than in the West.

Some Asian countries have further intensified efforts to reduce risk. Chinese regulators in 2008 required banks to hold more reserves to guard against loan failures.

In addition, China wants to increase oversight of banks that were ordered to boost lending last year to back Beijing's stimulus.

"We used to learn from Western developed countries, but later we found their systems had problems, so we'll have to amend our system and hope it will develop in a healthy and steady way," said Wei Tao, an analyst for China Securities Research.

Gary Gensler, head of the U.S. Commodity Futures Trading Commission, has struck an optimistic note about a global accord on derivatives. He said last week that U.S. authorities are "working well" with overseas regulators.

Others say some disagreement is helpful. Banking analyst Bert Ely said a diversity of regulations can point to flaws in a country's rules and to better solutions elsewhere.

"If everyone adopts the same rules and we're wrong, then we all go running off the cliff together when the next crisis hits," Ely said.

Fed weighs how and when to signal higher rates

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:14:00 +0000

WASHINGTON – Debate is heating up within the Federal Reserve over how and when to signal that the days of record-low interest rates are numbered.

A rate hike isn't imminent. But at their meeting Tuesday, Federal Reserve Chairman Ben Bernanke and his colleagues will likely focus on how to telegraph that higher rates are coming once the economic recovery is more deeply rooted. Eventually, Fed policymakers will need to start bumping up rates to head off inflation.

It will be a challenging maneuver. Fed officials will want to signal a move to higher rates in advance so borrowers and investors aren't jarred. And they will need to send a signal that isn't confusing.

The Fed has held rates at a record low near zero since December 2008. Bernanke and other Fed officials have said low rates are still needed to underpin economic growth.

But they need to decide whether to keep or modify their yearlong pledge to hold rates at record lows for an "extended period." Economists generally think "extended period" means at least six more months.

The Fed could drop that commitment altogether. Or it could pledge to keep rates low only for "some time" or vow to keep "policy accommodative." Or it could change its language in some other way to stress that credit will be tightened when the time is right. Any such step would signal that the days of easy money are fading.

Inside the Fed, debate is intensifying.

Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, has pushed to change the signal. At the Fed's last meeting in late January, Hoenig dissented from the "extended period" pledge. He favored saying rates would stay low for "some time." He thought that would give the Fed more flexibility to start raising rates.

Some economists aren't ruling out a change in language at Tuesday's meeting. Others don't think a change will come until the Fed's next meeting on April 27-28.

"During the Depression, the Fed tightened policy too soon and cut off the recovery before it was self-sufficient," said Joel Naroff, president of Naroff Economic Advisors. "The Fed doesn't want to make that mistake again. I think that they are willing to stay with very easy money longer than they might normally because of all the damage that has been done to the economy."

The recession wiped out 8.4 million jobs. And with companies still wary of ramping up hiring, the unemployment rate — now at 9.7 percent — is likely to stay high.

Even though the jobless rate hasn't budged for two months and companies aren't cutting as many jobs as they did a year ago, hiring is tepid. Consumer and business spending is sufficient to keep the economy growing only modestly. The housing and commercial real-estate markets are wobbly. Lending remains tight.

"Cautiously optimistic is where the Fed is right now," said William Cheney, chief economist at John Hancock. "But it is heavy on the caution and light on the optimism."

That helps explain why the Fed is expected to keep its key rate at a record low Tuesday. It has held its target range for its bank lending rate at zero to 0.25 percent since December 2008. In response, commercial banks' prime lending rate, used to peg rates on certain credit cards and consumer loans, has remained about 3.25 percent — its lowest in decades.

Super-low rates benefit borrowers who qualify for loans and are willing to take on more debt. But they hurt savers. Low rates are especially hard on people living on fixed incomes who are earning measly returns on savings accounts and certificates of deposit.

The Fed could start boosting rates as early as June — if economic growth accelerated. A more likely time is this fall, economists say.

Investors also will be looking to see if the Fed makes any changes to an economic-support program that's lowered mortgage rates and bolstered the housing market. Under that program, the Fed is scheduled to end its mortgage-securities purchases from Fannie Mae and Freddie Mac at the end of this month.

Some analysts fear that once the program ends, mortgage rates could rise. That could weaken the recovery in housing and the overall economy. The Fed has left the door open to extending the program if the economy weakens.

Aide: Karzai 'very angry' at Taliban boss' arrest

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:13:00 +0000

KABUL – The Afghan government was holding secret talks with the Taliban's No. 2 when he was captured in Pakistan, and the arrest infuriated President Hamid Karzai, according to one of Karzai's advisers.

The detention of Mullah Abdul Ghani Baradar — second in the Taliban only to one-eyed Mullah Mohammed Omar — has raised new questions about whether the U.S. is willing to back peace discussions with leaders who harbored the terrorists behind the Sept. 11 attacks.

Karzai "was very angry" when he heard that the Pakistanis had picked up Baradar with an assist from U.S. intelligence, the adviser said. Besides the ongoing talks, he said Baradar had "given a green light" to participating in a three-day peace jirga that Karzai is hosting next month.

The adviser, who had knowledge of the peace talks, spoke on condition of anonymity because of their sensitivity. Other Afghan officials, including Abdul Ali Shamsi, security adviser to the governor of Helmand province, also confirmed talks between Baradar and the Afghan government. Several media reports have suggested that Baradar had been in touch with Karzai representatives, but these are the first details to emerge from the discussions.

Talking with the Taliban is gaining traction in Afghanistan as thousands of U.S. and NATO reinforcements are streaming in to reverse the Taliban's momentum. That has prompted Pakistan and others to stake out their positions on possible reconciliation negotiations that could mean an endgame to the eight-year war.

Officials have disclosed little about how Baradar was nabbed last month in the port city of Karachi. The Pakistanis were said to be upset that the Americans were the source of news reports about his arrest.

The capture was part of a U.S.-backed crackdown in which the Pakistanis also arrested several other Afghan Taliban figures along the porous border between the two countries, after years of being accused by Washington of doing little to stop them.

Far from expressing gratitude, members of Karzai's administration were quick to accuse Pakistan of picking up Baradar either to sabotage or gain control of talks with the Taliban leaders.

Whatever the reason, the delicate dance among Karzai, his neighbors and international partners put the debate over reconciliation on fast forward.

Top United Nations and British officials emphasized last week that the time to talk to the Taliban is now. The Afghan government, for its part, has plans to offer economic incentives to coax low- and midlevel fighters off the battlefield. Another driving force is President Barack Obama's goal of starting to withdraw U.S. troops in July 2011.

The United States, with nearly 950 lives lost and billions of dollars spent in the war, is moving with caution on reconciliation.

At a breakfast meeting in Islamabad last week, Karzai said he and his Western allies were at odds over who should be at the negotiating table. Karzai said the United States was expressing reservations about talks with the top echelon of the Taliban while the British were "pushing for an acceleration" in the negotiation process.

"Our allies are not always talking the same language," he said.

Karzai said overtures to the Taliban stood little chance of success without the support of the United States and its international partners. He says his previous attempts to negotiate with insurgents were not fruitful because "sections of the international community undermined — not backed — our efforts."

The U.S. has said generally that it supports efforts to welcome back any militants who renounce violence, cut ties with al-Qaida and recognize and respect the Afghan constitution, but it is keeping details of its position closely held.

Daniel Markey with the Council on Foreign Relations said that while Karzai is having discussions with senior people on the Taliban side, "it's not clear that Washington or other members of the international community have weighed in as to what they believe are the red lines or proper boundaries with respect to negotiations with the Taliban."

During his trip to Afghanistan last week, Defense Secretary Robert Gates said it was premature to expect senior members of the Taliban to reconcile with the government. He said until the insurgents believe they can't win the war, they won't come to the table. Secretary of State Hillary Rodham Clinton has said she's highly skeptical that Taliban leaders will be willing to renounce violence.

A U.S. military official in Kabul, who spoke on condition of anonymity to discuss reconciliation, said the top commander in Afghanistan, U.S. Gen. Stanley McChrystal, has not yet solidified his opinion on this issue.

He said the U.S. is still debating the timing of the Afghan government's outreach to senior leaders of three main Afghan insurgent groups — Omar; Jalaluddin Haqqani, who runs an al-Qaida-linked organization; and Gulbuddin Hekmatyar, the boss of the powerful Hezb-e-Islami.

The official added that the international military coalition had no problem with the Afghan government's reaching out to anyone, at any time, but is concerned that a deal to end the violence not come at too high a price.

Deep differences remain within the Obama administration on reconciliation, said Lisa Curtis, a research fellow on South Asia for the Heritage Institute, a right-leaning think tank in Washington. "This disagreement is contributing to a lack of clarity in U.S. official statements on the issue and leading to confusion among our allies," she said.

"The military surge should be given time to bear fruit," Curtis argued. "Insurgents are more likely to negotiate if they fear defeat on the battlefield."

Karzai won't discuss his administration's talks with Taliban members or their representatives, but several Afghan officials confirmed that his government was in discussions with Baradar, who hails from Karzai's Popalzai tribe of the Durrani Pashtuns in Kandahar.

"The government has been negotiating with Mullah Baradar, who took an offer to the Taliban shura," Shamsi said, using the word for the group's governing board.

Shamsi said he'd seen intelligence reports indicating that Omar resisted the offer and that Baradar's rivals within the Taliban leadership were fiercely opposed to any negotiations with the Afghan government.

An intelligence official in southern Afghanistan, who spoke on condition of anonymity because he was not authorized to talk with journalists, said there were reports that Omar was angry about Baradar's negotiations with the government and asked Pakistani intelligence officials to arrest him.

Nevertheless, Hakim Mujahed, a former Taliban ambassador to the United Nations, said many Taliban leaders are willing to talk.

"The problem is not from the Taliban side," he said. "There is no interest of negotiations from the side of the foreign forces."

Hamid Gul, a former director of the Pakistani intelligence service who has criticized the U.S. role in Afghanistan, said the insurgents want three things from the U.S. before talks could begin — a clearer timetable on the withdrawal of troops, to stop labeling them terrorists, and the release of all Taliban militants imprisoned in Pakistan and Afghanistan.

What actually precipitated Baradar's arrest remains a mystery.

Some analysts claim Pakistan wanted to interrupt Karzai's reconciliation efforts or force Karzai to give Islamabad a seat at a future negotiating table.

"I see no evidence to support that theory," Richard Holbrooke, U.S. envoy to Pakistan and Afghanistan, told reporters this month. "I know somewhat more than I'm at liberty to disclose about the circumstances under which these events took place and every detail tends to work against that thesis."

Another theory is that Baradar, deemed more pragmatic than other top Taliban leaders, was detained to split him from fellow insurgents. McChrystal said recently that it was plausible that Baradar's arrest followed an internal feud and purge among Taliban leaders.

There's also speculation that Baradar's arrest was just lucky — even unintentional.

If Karzai was still angry about Baradar's arrest, he didn't show it publicly last week on a two-day visit to Islamabad. His message was twofold — that Pakistan had a significant role to play in reconciliation and that its cooperation would be welcomed. He called Pakistan a "twin" and said Afghans know that without cooperation, neither would find peace.

Dems start countdown toward health care vote

noreply@blogger.com (Unknown) — Tue, 16 Mar 2010 05:11:00 +0000

WASHINGTON – Democratic congressional leaders showed signs of progress Monday in winning anti-abortion Democrats whose votes are pivotal to President Barack Obama's fiercely contested remake of the health care system.

Obama expressed optimism Congress would approve his call for affordable and nearly universal coverage as he pitched his plan on a trip to Ohio, while Republican Sen. Jim DeMint of South Carolina, among the bill's sharpest opponents, said he was "less confident" than before that it could be stopped.

"They'd have to be remarkable people not to fall under the kind of pressure they'll be under," DeMint said of rank-and-file Democrats.

The pressure was turned up Monday as the House Budget Committee, on a 21-16 vote, took an essential first step toward the House vote, which could come next weekend. Obama and his supporters labored in the capital and on Air Force One.

Rep. Dennis Kucinich, D-Ohio, who flew with President Barack Obama, then walked into an Ohio senior citizen center with the chief executive in time to hear a voice from the audience yell out, "Vote yes."

A smiling Obama turned to the liberal lawmaker and said, "Did you hear that, Dennis?" Then, turning back to the audience, he added, "Go ahead, say that again."

"Vote yes!" came back the reply.

Kucinich, who said later he remains uncommitted, is one of 37 Democrats currently in the House who voted against Obama's legislation when it cleared the House last fall.

In addition, the White House is laboring to hold the support of several other Democrats who voted for the earlier bill, but only after first supporting strict anti-abortion limits. Those would be altered the second time around.

At least two have signaled they are open to supporting the president. One of them, Rep. James Oberstar of Minnesota, is "in the leaning yes column," said a spokesman, John Schadl.

"When we bring the bill to the floor, then we will have the votes," said Speaker Nancy Pelosi.

Obama sounded similarly confident in an interview with ABC News. "I believe we're going to get the votes, we're going to make this happen," said the president, who has traveled to three states and lobbied numerous lawmakers in recent days.

Outside interests on both sides pressured wavering lawmakers.

The National Right to Life Committee, which opposes abortions, wrote to lawmakers that support for the Senate bill would be a "career-defining pro-abortion vote."

Union groups and other supporters announced a $1.3 million advertising campaign urging 17 House Democrats to vote for the measure, and officials at the Service Employees International Union threatened to withdraw support from Democrats who vote against the bill if it loses.

It was more than a year ago that Obama asked Congress to approve legislation extending health coverage to tens of millions who lack it, curbing industry practices such as denying coverage on the basis of pre-existing medical conditions, and beginning to slow the growth of health care nationally. His plan would require most Americans to buy health insurance, fine most who fail to do so and provide government subsidies to help middle-income earners and the working poor afford it.

Sweeping legislation seemed to be on the brink of passage in January, after both houses approved bills and lawmakers began working out a final compromise in talks at the White House. But those efforts were sidetracked when Republicans won a special election in Massachusetts — and with it, the ability to block a vote on a final bill in the Senate.

Now, nearly two months later, lawmakers have embarked on a two-step approach that requires the House to approve the measure passed by the Senate, despite misgivings on key provisions. That would be followed by both houses quickly passing a second bill that makes numerous changes to the first. In the Senate, that second bill would come to a vote under rules that deny Republicans the ability to filibuster.

The details of the second, fix-it measure were closely guarded — and subject to last-minute changes. In general, officials have said they would provide more money for lower-income families unable to afford health care and states that already provide above average coverage for the poor under Medicaid, as well as improved prescription drug coverage under Medicare.

The legislation is expected to delete a provision in the Senate bill that singled out Nebraska for favorable treatment under a requirement to expand Medicaid coverage.

Instead, Democrats may provide as much as $15 billion to a dozen states and the District of Columbia, all of which already provide at least some of the coverage.

Officials said one sticking point remained a Senate-passed provision establishing an independent commission with authority to force greater reductions in future Medicare payments to providers. House Democrats want to curtail the board's powers, but rules may forbid any changes under the complex rules covering the Senate's debate of the measure.

The cost of the overhaul is expected to total $950 billion or more over a decade. It would be covered by higher taxes on the wealthy as well as on some health care providers and high-cost insurance plans.

Several hundred billion dollars would also be cut from planned Medicare increases, much of the burden falling on companies that provide private coverage to seniors under Medicare Advantage.

Vice President Joseph Biden also traveled to Ohio, where he attended a fundraiser for first-term Rep. Steve Driehaus, D-Ohio. Driehaus voted for the House version of a health care overhaul in November, and has not yet stated his position on the new legislation.

Lahore suicide attacks: six security men among 20 dead

noreply@blogger.com (Unknown) — Fri, 12 Mar 2010 10:12:00 +0000

LAHORE: Two suicide attackers blew themselves up near security forces vehicles in RA Bazar area of South Cantt as crowds gathered for Friday prayers killing at least 20 people including six security personnel and injuring 40, Geo News reported.

Both the bombers were on foot, SSP Operations Chaudhry Shafiq told Geo News.

Six security men were among the dead, he added.

Director General Rescue 1122 told Geo News that 20 people have been killed and forty injured.

Rescue workers and paramedics rushed to the R A Bazaar, a densely populated area of the city. The area was crowded as the blasts occurred shortly before the main Friday prayers were to start.

Emergency has been declared in city hospitals and injured were shifted to CMH and other hospitals.

Security forces have cordoned off the area and traffic was blocked. Media was not allowed to go near the scene.

The blasts came four days after a suicide car bomber destroyed offices used to interrogate suspected militants in an upmarket district of Lahore.

20 banks shut down in US this year

noreply@blogger.com (Unknown) — Sun, 21 Feb 2010 10:59:00 +0000

WASHINGTON: Regulators shut four banks from California to Florida on Friday, boosting to 20 the number of U.S. bank failures this year following the 140 closures last year in the worst financial climate in decades.

The Federal Deposit Insurance Corp. took over La Jolla Bank, FSB, in La Jolla, California. The bank had 10 branches and about $3.6 billion in assets and $2.8 billion in deposits.

Also seized was George Washington Savings Bank in Orland Park, Illinois. It had four branches and about $412.8 million in assets and $397 million in deposits.

The FDIC said OneWest Bank in Pasadena, California, agreed to assume all deposits and essentially all assets of La Jolla Bank. The takeover is expected to cost the deposit insurance fund an estimated $882.3 million.

The FDIC and OneWest will share losses on about $3.3 billion of the failed bank's loans and other assets.

Meanwhile, FirstMerit Bank, National Association of Akron, Ohio, agreed to take over deposits at George Washington Savings Bank. FirstMerit is also taking over essentially all the assets. For George Washington, the FDIC predicts the takeover will cost the insurance fund $141.4 million.

The loss-sharing agreement for George Washington covers $324.2 million in assets.

The other seized banks were smaller and located in Florida and Texas. They were Marco Community Bank, with a single office on Marco Island, a wealthy barrier island near Naples on Florida's Gulf Coast, and La Coste National Bank of La Coste, Texas.

Marco Community Bank had about $119.6 million in assets and $117.1 million in deposits. Mutual of Omaha Bank, a division of the big insurance company Mutual of Omaha, agreed to assume the assets and deposits of Marco Community Bank.

The failure of Marco Community Bank will cost the deposit insurance fund an estimated $38.1 million.

In addition, the FDIC and Mutual of Omaha Bank, which is based in Omaha, Neb., agreed to share losses on $104.8 million of the failed bank's loans and other assets.

Florida is among the states with the highest concentration of bank failures and where the meltdown in the real estate market brought an avalanche of soured mortgage loans. Last year saw the failure of 14 banks in the state. Also high on the list are California, Georgia and Illinois.

La Coste National Bank had a single branch and $53.9 million in assets. Deposits totaled $49.3 million.

Community National Bank of Hondo, Texas, agreed to buy the deposits and assets of La Coste National Bank — whose failure is expected to cost the insurance fund $3.7 million.

As the economy has weakened, with unemployment rising, home prices tumbling and loan defaults soaring, bank failures have accelerated and sapped billions of dollars out of the federal deposit insurance fund. It fell into the red last year.

The 140 bank failures last year were the highest annual tally since 1992, at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. There were 25 bank failures in 2008 and just three in 2007.

The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.

IMF to start sales of 191.3 tonnes of gold soon

noreply@blogger.com (Unknown) — Sun, 21 Feb 2010 10:58:00 +0000

WASHINGTON: The International Monetary Fund on Wednesday said it will shortly begin selling 191.3 tonnes of gold in the open market under a program approved last year to boost its resources for lending.

To avoid disruptions of the gold market, the IMF said the sales "will be conducted in a phased manner over time." The fund left the door open for central banks to keep buying the gold directly from the IMF.

The IMF announced last year it would sell a total of 403.3 tonnes of gold, about one-eighth of its total stock, to diversify its sources of income and increase low-cost lending to poor countries.

Until now, the gold has only been made available to central banks on a first-come-first-serve basis. So far, India -- the world's biggest consumer of gold -- Mauritius and Sri Lanka have purchased a total of 212 tonnes of gold from the IMF.

The Reserve Bank of India was the biggest purchaser, snapping up 200 tonnes of the IMF gold over two weeks in October, boosting its gold holdings to the 10th largest among central banks.

IMF Finance Director Andrew Tweedie told IMF Survey publication that the average price for the three sales was a little over $1,050 an ounce, generating about $7.2 billion in proceeds and a profit of about $4.5 billion over the book value of the gold in the IMF's accounts.

The price of gold has increased by 20 percent over the past two years. Spot gold traded at about $1,104 an ounce on Wednesday after peaking at $1,126.85, its highest since Jan. 20.

The IMF said central banks could continue to buy the gold, which would reduce the amount of gold available for sale on the open market.

"We are still open to off-market sales, so that window has not closed," Tweedie said, adding: "All that has happened now is that we are moving to also start on-market sales."

He said the sales would be based on market prices.

Pak delegation to attend Halal conference in Iran

noreply@blogger.com (Unknown) — Sun, 21 Feb 2010 10:57:00 +0000

KARACHI: A Pakistani delegation led by Asad Sajjad, CEO HDP (Halal Development Project) will attend the International Halal Conference in Tehran from 2-5 March 2010.

The delegation has been invited by Islamic Chamber Research and Information Center (ICRIC) of OIC and Iran Chamber of Commerce at the event. Asad will also give a presentation on "The Power of Halal Branding," in the conference, said a statement issued here.

Halal Development Project recently singed an MOU with PNAC (Pakistan National Accreditation Council) Ministry of Science and Technology, Government of Pakistan, to promote the Halal Trade and Industry in Pakistan and to facilitate Pakistani companies to get their products and services as Halal certified.

Asad Sajjad will also be representing PNAC in the Iran Halal Conference, to invite international certification agencies, testing laboratories and accreditation bodies to get accreditation from PNAC, as being MRA signatory, PNAC accreditation is recognized and accepted world over.

Cotton hits Rs5300 per maund mark

noreply@blogger.com (Unknown) — Sun, 21 Feb 2010 10:56:00 +0000

KARACHI (Azhar Ali Khan): Skyrocketing cotton prices breached another fence of Rs5,300 per maund level in late Saturday trade, ARY News reported.

Senior traders said that domestic cotton prices surged further by Rs100 per maund and set another all-time high of Rs5300 per maund on the back of hefty buying by textile mills and the exporters.

The cotton has become costlier by Rs2000 per maund in last eight months.

“Some 400 cotton bales of Deharki (Sindh) have been finalized at the rate of Rs5300 per maund,” said a senior cotton trader Naseem Usman.

“Textile mills and the exporters are buying cotton in bulk in anticipation of its shortage during March-July this year,” he added.

“I am sure, this uncontrolled price rally will hit Rs5,500 per maund mark in near future,” he added.

China tightens bank lending rules

noreply@blogger.com (Unknown) — Sun, 21 Feb 2010 10:45:00 +0000

BEIJING: Banking regulators in China have ordered institutions to tighten controls on risk and carefully scrutinize borrowers' ability to pay their debts in a new step to rein in lending.

The government's order comes as Beijing tries to prevent excessive lending that it says could lead to financial problems while ensuring adequate credit to keep the economic recovery on track.

Chinese leaders worry that a stimulus-driven torrent of lending is fueling a dangerous bubble in stock and real estate prices. Beijing has ordered banks to set aside additional reserves and to keep lending stable, but the central bank has avoided raising interest rates, which might slow down growth.

The China Banking Regulatory Commission, or CBRC, said in a statement on its Web site Saturday that it issued two regulations to increase risk management on personal and working capital loans. The rules took effect Feb. 12.

The regulation on working capital loans stated that banks must calculate borrowers' actual needs and also consider their cash flow, liabilities, repayment abilities and other factors when assessing loan applications.

On personal lending, the regulation says that borrowers may not obtain loans if they do not specify what the money is to be used for.

Chinese leaders have warned banks repeatedly to keep lending stable in 2010 and avoid financing unneeded real estate and industrial projects due to fears they might fuel inflation or leave banks burdened with bad debts if poorly planned projects fail.

Banks were ordered Feb. 12 to increase reserves by half a percentage point — to 16.5 percent for large lenders and to 14.5 percent for smaller institutions.

The government reported earlier this month that January bank lending rocketed to 1.4 trillion yuan ($200 billion) — nearly one-fifth of the planned 2010 total. That was despite a Jan. 12 order to banks to raise reserves, also by 0.5 percent, and repeated commands to keep lending at sensible levels.

Banks are expected to scale back lending to roughly 7.5 trillion yuan ($1.1 trillion) this year, after handing out some 9.5 trillion yuan ($1.4 trillion) last year, the industry's top regulator, Liu Mingkang, said last month.

Gold price on decline for fourth week

noreply@blogger.com (Unknown) — Mon, 08 Feb 2010 04:55:00 +0000

LONDON: The gold price in the world market continuously plunging for the fourth week, as the precious metal lost 2.9 percent to settle at $1,052.80.

The rally of the US dollar has curbed the sentiments for gold reining in demand for the metal, analysts said. The price of gold can further goes down by 20 to 40 dollars, they added.

Worst is over for global economy: G7

noreply@blogger.com (Unknown) — Mon, 08 Feb 2010 04:55:00 +0000

TORONTO: Finance ministers from the world's top seven industrialised (G7) nations who wound up their two-day informal chats in the Canadian Arctic city of Iqaluit admitted that the recovery from the global recession is still weak.

Though there was no formal communiqué at the end of the 24-hour gathering, the finance ministers and central bank heads from the US, Canada, Italy, France, Britain, Germany and Japan said the worst was over for the global economy.

Expressing cautious optimism over the recovery, they said their governments would continue with stimulus spending to speed up the recovery process.

Canadian Finance Minister Jim Flaherty, who hosted the meeting, said there are signs that the worst is over for the global economy, but the recovery process is still not firmly established yet.

Reading a statement on behalf of the G7 finance ministers, Flaherty said, "The global economic situation has of course improved and is improving. We do not have firmly established recovery yet but there are good signs.

"We need to continue to deliver the stimulus to which we are mutually committed and begin to look ahead to exit strategies and move to a more sustainable fiscal track consistent with continued recovery."

They said their strategies to get out of the economic crisis were paying off and committed themselves to avoiding such crises in the future.

The meeting started Friday with a working dinner on the global economic crisis, followed by a fireside chat on the recovery process.

The finance ministers discussed financial sector reforms and efforts by G7 nations to address the underlying causes of the financial crisis. Later, they held a session on 'Framework for Strong, Sustainable and Balanced Growth,' endorsed by the G20 summit in Pittsburgh last year.

Revenue generation likely to improve

noreply@blogger.com (Unknown) — Mon, 08 Feb 2010 04:54:00 +0000

ISLAMABAD: Revenue generation in the second half of current fiscal is likely to improve due to increase in utility prices and collection of additional income tax as a result of increase in salary of armed forces personnel.

The improvement in revenue generation could offset the low collection in the first six months of the fiscal, an official of the finance ministry said.

The ministry of finance is finalising a working paper detailing the low revenue generation for presentation to the International Monetary Fund.

The paper will also highlight the methods adopted by the authorities to achieve the revenue generation target of Rs1.38 trillion by June.

The next meeting between Pakistani and IMF officials is scheduled to be held in Dubai on Feb 12. The meeting is expected to focus on resource mobilisation in the July-January period of the ongoing fiscal year.

Tax officials have informed the finance ministry that a decline of Rs7 billion is expected because of the following reasons:

--- General sales tax exemption on sugar;

--- Collection from cigarette industry remaining Rs3 billion less than the expected amount, and;

--- Low revenue collection from the Capital Value Tax on transfer of immoveable properties.

“This was mainly due to the lacklustre economic activity in the real estate sector,” the official said.

However, he added that the authorities were hopeful of achieving the target in view of the expected increase in revenue collection from the salary of armed forces personnel which had been enhanced in January.

“An additional income tax of Rs4 billion is expected from this head in the remaining six months of the fiscal,” Chairman of the Federal Board of Revenue Sohail Ahmed said. Expected hike in gas and electricity tariff would also boost revenue collection.

He said that in January, the FBR’s provisional tax collection was Rs111 billion and the final figures were expected to reach Rs115 billion against the target of Rs124 billion.

However, he said the two instalments of advance tax that were due by June would help bridge the existing shortfall and revenue collection would be in line with the target.

Mr Ahmed said the government had decided not to impose new taxes in the ongoing quarter fiscal in order to improve collections.

However, if found necessary additional revenue measures would be taken in the last quarter (April-June) of the fiscal.

Business community hails talks with India

noreply@blogger.com (Unknown) — Mon, 08 Feb 2010 04:53:00 +0000

ISLAMABAD: Pakistan's business community on Sunday welcomed the upcoming foreign secretary-level talks with India, terming it a highly positive step that could result in many benefits for the people of both countries.

At a meeting here of the Islamabad Chamber of Commerce & Industry, its members said both countries are endowed with plenty of human and natural resources and they should establish an atmosphere of mutual trust and confidence to harness these for strengthening their economies and uplifting the living standard of their people.

Chairing the meeting, chamber president Zahid Maqbool said that peaceful and friendly relations between India and Pakistan are essential to promote bilateral trade and economic relations and to exploit the full potential of each other's comparative advantage in different fields.

He said there were vast untapped trade and investment possibilities between the two countries that can be gainfully exploited with significant welfare gains and opportunities to alleviate poverty and strengthen human security. Towards this, the two neighbours should take proactive measures to exploit untapped areas of economic cooperation.

He said the people of both countries share a common culture and traditions and could considerably enhance the current level of bilateral trade. However, peace between the two countries is the basic condition to realize their common objectives.

India and Pakistan Friday discussed the dates for talks between their foreign secretaries and the scope of their dialogue that could include other issues besides terrorism.

Pakistan's High Commissioner Shahid Malik met Indian Foreign Secretary Nirupama Rao in New Delhi Friday evening to discuss dates for the talks that are likely later this month.

This follows India's formal proposal for conducting the talks, which could lead to meetings between their foreign ministers and prime ministers on the sideline of the SAARC summit in Thimpu April 28-29.

Indian Home Minister P. Chidambaram was to have visited Islamabad for the Feb 26-28 meeting of the SAARC home/interior ministers that has now been postponed.

CDNS records Rs.115 billion investment

noreply@blogger.com (Unknown) — Mon, 08 Feb 2010 04:53:00 +0000

ISLAMABAD : The National Savings’ investments were recorded at Rs.115 billion net during the first half of current financial year, showing a very positive trend as compared to the investments made during the corresponding period of last year.The investment during July-December (2008-09) stood at Rs.47 billion as against the investments of Rs.115 billion during July-December (2009-10), an official in the Central Directorate of National Savings told APP here on Tuesday.

“The performance of National Savings has improved, particularly during past couple of years as its investments have recorded tremendous growth,” Abdul Ghafoor Baloch, an official of CDNS said.

Baloch said that the National Savings total investments during the last financial year were recorded at Rs.267 billion against the set target of Rs.150 billion.

For the current financial year, the investments target of the National Savings is Rs. 241 billion out of which it has already collected Rs.115 billion till the end of December.

Giving estimated figures of the investments made till January, he said that about 132 billion have been invested till January.

Baloch said that the National Savings aims to launch new schemes including the Sharia Complaint Paper to facilitate those who are interested in Islamic way of savings.

The savings on this assets’-based paper would be on profit-loss sharing basis and it would not include interests. “This scheme would be launched during the current year,” Ghafoor Baloch added.

The National Savings would also launch bonds/papers for overseas Pakistanis in foreign currency to facilitate Pakistanis living abroad to save their incomes adding that the project was in pipeline and under consideration and would be finalized as soon as possible.

To a question, he said that the project of linking all the 371 centers of National Savings through online computerization would be completed during next three to four years adding that the PC-I of the project has already been approved by the government and work was also going on.

He said that the online system would connect all the 371 centers of the National Savings across the country to make the system user-friendly and facilitate the customers.

Baloch said that interest on Defence Saving Certificates (DSC)s from July 1,2009 is 8.00 percent while after 10 years (Compound rate ) is 12.15 percent.

Similarly the profit in Special Saving Certificate Registered (SSCR) in the first five period is 11.60 percent while in the last period the profit rate is 12.00 percent per annum (pa) from July 1,2009.

He said that average compound profit on the scheme is 11.67 percent (pa) from July,1,2009.

Baloch said that on Regular Income Certificates (RIC) is 12.00 percent per annum from July 1,2009.

He added that on saving accounts, the profit with cheque facility is 8.00 percent (pa) while without the check facility is 8.50 percent per annum from July,1,2009.

Similarly, he said that on Pensioners Benefit Accounts and Behbood Saving Certificates the profit per annum is 14.16 percent from July, 1,2009.

Asian, European markets up after US gains

noreply@blogger.com (Unknown) — Mon, 08 Feb 2010 04:44:00 +0000

HONG KONG: World stock markets jumped Wednesday, following Wall Street higher after encouraging reports about the beleaguered US housing sector helped restore confidence in an economic recovery.

Several Asian bourses shot up more than 2 percent after the US market, reversing last month's slide, posted its biggest back-to-back gains in almost three months. Oil prices neared $78 a barrel after surging the day before, while the dollar slipped against the yen and euro.

Investors in Asia found reason for optimism after a major US real estate trade group said its index of pending home sales rose in December. It was the ninth improvement in 10 months and further evidence of healing in an industry at the root of America's downturn.

Having sent markets tumbling over last couple weeks, investors have upped their buying recently amid new signs of a US economic revival and stronger global manufacturing that eased worries, at least for now, about the recovery going off track.

"The overall improvement in the US economy is a clear indicator the world is recovering," said Lucinda Chan of Macquarie Private Wealth in Sydney. "It's not going to be a smooth ride the whole way through, but we're still expecting a solid performance long-term in the market given the improvements in the economy."

Early going in Europe, benchmarks in Britain, France and Germany all added 0.3 percent. Futures augured gains Wednesday on Wall Street. S&P futures rose 1.5 point, or 0.2 percent, to 1,099.

Japan's Nikkei 225 stock average added 33.24 points, or 0.3 percent, to 10,404.33 and Hong Kong's Hang Seng jumped 449.90, or 2.2 percent, to 20,722.08. South Korea's Kospi was up 19.21, or 1.2 percent, to 1,615.02.

Elsewhere, Shanghai's market marched 2.4 percent higher, Australian stocks rose 0.9 percent and Indian shares bounced 2.1 percent.

Among stocks, shares in Toyota tanked nearly 6 percent as fallout from its global recall over faulty gas pedals continued with a top US official accusing the world's largest car maker of dragging its feet on safety concerns. Toyota will be in focus Thursday when it releases quarterly earnings.

Despite the upward swing, analyst said many investors were on edge ahead of US private-sector employment data being released later in the day and the more important nationwide monthly jobs report due Friday. Wednesday's report is expected to show employers slashed about 30,000 private sector jobs last month compared to the 84,000 cut in December, according to analyst estimates.

Adding to anxiety were deteriorating finances in Greece and other Western countries. Investors will be watching Wednesday for the European Commission's assessment of Greece's plan to put its fiscal house in order and cut its massive budget deficit, already more than four times the European Union's 3 percent of GDP limit.

In Asia, a hesitancy to put more money into the market before the extended Chinese New Year holiday also sidelines investors.

"Investors are being cautious. We're still not past all the negative sentiment," said Jackson Wong, investment manager at Tanrich Securities. "Last year was a great year so many people would like to take some profits off the table."

In New York Tuesday, the Dow rose 111.32, or 1.1 percent, to 10,296.85.

The S&P 500 index rose 14.13, or 1.3 percent, to 1,103.32, while Nasdaq composite index advanced 18.86, or 0.9 percent, to 2,190.06.

Oil prices rose in Asia, with benchmark crude for March delivery up 70 cents at $77.92. The contract jumped more than $2 overnight on reports crude demand could improve.

In currencies, the dollar fell to 90.14 yen from 90.36 yen. The euro was higher at $1.4015 from $1.3961.

World markets up again on US economic hopes

noreply@blogger.com (Unknown) — Wed, 23 Dec 2009 17:28:00 +0000

LONDON: World stock markets rose Wednesday amid mounting optimism about the speed of the U.S. economic recovery ahead of further data later.

In Europe, the FTSE 100 index of leading British shares was up 43.12 points, or 0.8 percent, at 5,371.78 while Germany's DAX rose 34.36 points, or 0.6 percent, to 5,980.05. The CAC-40 in France was 28.43 points, or 0.7 percent, higher at 3,926.81.

Earlier, all major Asian markets rose strongly in the wake of Tuesday's advance on Wall Street after existing home sales figures for November came in much stronger than anticipated.

Wall Street was poised to open higher again later — though much could hinge on the last batch of data before Christmas. Dow futures were up 31 points, or 0.3 percent, at 10,439 while the broader Standard & Poor's 500 futures rose 4.9 points, or 0.4 percent, to 1,118.50.

The focus later will be on government personal spending and new homes sales figures, as well as the University of Michigan's latest insight into the state of consumer confidence.

"Personal spending data should echo the already strong numbers on retail sales, while personal incomes are also set to rise," said Daragh Maher, an analyst at Calyon Credit Agricole.

"New home sales may not match the scale of the leap in existing home sales, but they should still be higher, and the market is also flirting with the idea of an upward revision to consumer confidence," he added.

Contrary to many expectations, stocks around the world have rallied this week — many analysts were anticipating a modest pullback as investors shut up shop for the year by booking profits accumulated during the nine-month bull market.

Earlier, China's benchmark Shanghai Composite Index rose 23.26 points, or 0.8 percent, to 3,073.78, while Sydney's S&P/ASX added 0.8 percent to 4,739.30 amid strength in coal stocks.

Hong Kong's Hang Seng reversed losses to climb 236.70, or 1.1 percent, to 21,328.74. Seoul's Kospi gained 0.4 percent to 1,661.35, while Singapore was up 0.6 percent and Taiwan's Taiex rose 0.6 percent.

Tokyo was closed for a holiday.

Oil prices rose modestly with the benchmark January contract up 36 cents to $74.76 in electronic trading on the New York Mercantile Exchange.

There was little activity in the currency markets — the dollar was flat at 91.82 yen, while the euro was unchanged at $1.4244.

Over the last couple of weeks, the dollar has bounced back from 15-month lows against the euro and 14-year yen lows amid mounting expectations that the U.S. Federal Reserve will start withdrawing its extraordinary liquidity measures and raising interest rates sooner than expected. The euro has been dogged by concerns over the economic situation in a number of European countries.

The pound was also steady just below $1.60 after the minutes to the last rate-setting meeting of the Bank of England indicated that monetary policy in Britain will be left as is at least for a couple of months.

All nine members of the Monetary Policy Committee voted to keep the Bank's financial asset purchases at 200 billion pounds ($320 billion) and the benchmark interest rate unchanged at the record low of 0.5 percent.

"While it seems likely that the MPC is nearing the end of its measures to support the economy, further action is certainly possible if the recovery disappoints," said Jonathan Loynes, chief European economist at Capital Economics. "Either way, any tightening of policy remains a long way off."

Industry laments power tariff hike

noreply@blogger.com (Unknown) — Wed, 23 Dec 2009 17:28:00 +0000

KARACHI: Industrialists have sharply reacted over 16.1 per cent hike in power tariff terming it a cruel act against the national interest.

Patron of Korangi Association of Trade and Industry (KATI), S M Muneer, Chairman, Hashim Razzak Paracha and other office bearers in a statement said that government has taken the decision of increasing power tariff under the IMF dictation totally ignoring the plight of the industry and the general masses.

The KATI officials said that the government in addition to 15 per cent raise in power tariff, has announced to adjust another 1.1 per cent increase in the tariff, which is self explanatory that how the present government is democratic and people’s friendly.

Meanwhile, President, Pakistan Businessmen and Intellectuals Forum, Mian Zahid Husain while condemning the power tariff increase from January 1, 2010 and said that present government has totally lost the credibility due to frequent power increase and raise in other utilities’ prices since it has taken over.

Indian small car market overtakes Japan

noreply@blogger.com (Unknown) — Wed, 23 Dec 2009 17:27:00 +0000

MUMBAI: India is emerging a leader in small cars as declining sales in Western markets coupled with robust growth in Asia redraws the global map of the auto industry faster than many expected.

It's well known that China will overtake the U.S. as the world's largest car market this year. Less noticed is the fact that India will top Japan for the first time in sales of super-compact cars. It overtook Japan as the world's number one producer of basic cars in 2007.

Automakers like Ford, Nissan, Volkswagen, General Motors, and China's Shanghai Automotive Industries Corp. are pouring hundreds of millions of dollars into the country, hoping to capture a piece of the growing market for tiny, inexpensive passenger vehicles. As they do so, they are quietly transforming India into an export hub for small car manufacturing.

"From a small car production hub perspective, India is right in the center of the radar," said Michael Boneham, head of Ford India, which plans to roll out its first India-made compact, the Figo, in the first quarter of next year.

More than 892,000 basic cars — the smallest category of passenger vehicle — will be sold in India this year, up 14 percent from last year and surpassing the 708,034 forecast for Japan, according to J.D. Power and Associates.

Unlike China, Russia and Brazil, where consumers buy a range of cars, from basic to luxury, Indians overwhelmingly prefer small, affordable cars.

Nearly half of all cars sold in India — like Maruti Suzuki's Swift, GM's Spark and Hyundai's Santro — fall into the basic category. These are cars so small they're almost nonexistent in the U.S. market. Think of them as sub-sub-compacts.

And price matters. Executives say most Indians won't spend more than $8,000 on a car.

To manufacture these low-margin vehicles profitably, carmakers must localize production to cut costs and ramp up volumes.

For now, they can't sell enough cars in India alone to make the numbers work. The market is too consolidated — Maruti Suzuki sells half of all cars in India — and too small. India ranks 10th globally for total car and truck sales. J.D. Power expects Indian car and truck sales to hit 1.9 million this year, a far cry from China's 12.3 million.

Ford Motor Co. has invested $500 million in India and its factory in the south Indian city of Chennai can make up to 200,000 cars a year. Even if sales more than double, to 60,000 vehicles next year as executives hope, they've got capacity to spare.

Nissan Motor Co. plans to shift production of its Micra cars for the European market from the U.K. to Chennai, which it also aims to use as an export hub for Africa and the Middle East. The company plans to roll out its first made-in-India compact in May, part of a seven-year, $920 million India investment it made with partner Renault.

Volkswagen AG has invested Euro 580 million ($847 million) in India, and this month started production of its first India compact at a factory that can make up to 110,000 cars a year.

General Motors Co. opened a second, $300 million factory in India in September 2008, boosting annual capacity to 225,000 vehicles. This month, it teamed up with China's SAIC to launch an India joint venture, with fresh investment of up to $350 million.

Upsurge in Pak cotton exports price

noreply@blogger.com (Unknown) — Wed, 23 Dec 2009 17:26:00 +0000

KARACHI (Azhar Ali Khan): Pakistani cotton exporters have raised their commodity prices for the international buyers following an upward price trend in the world markets, ARY News reported.

Exporters said that the high-quality Pakistani cotton is now tagged at 72 cents per pound, which was earlier exported at the rate of 57 cents per pound, depicting an upsurge of 15 cents per pound.

“During last few days the fresh cotton export deals have finalized at the rate of 72 cents per pound,” said a leading Karachi-based exporter.

Citing basic reason of price increase, he said, “Prices of export-quality cotton have increased as the international markets are witnessing an upward price trend, following a shortage-like situation.

“High-quality cotton is very expensive in the international markets because of its scarcity,” said an exporter.

“In fact, the cotton crop shortage has resulted in continued price hike and that is why we (the Pakistani exporters) have brought local cotton price at par with the international level,” said another exporter.

During the current season, some 0.8 million cotton bales have so far been exported, while some 0.2 million bales’ deals are finalized and the shipments would be sent, shortly.