Monday, May 14, 2007

Yen matches 3-month low on soft machinery data

(Reuters) - The yen matched last week's three-month low against the dollar on Tuesday on surprisingly weak machinery orders data that underscored market expectations for the Bank of Japan to raise interest rates only gradually.

Japan's core machinery orders fell 4.5 percent in March from the previous month, well short of market expectations for a 1.3 percent rise and raising doubts about the strength of capital spending that has helped underpin growth in the past year.


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Japan's Stocks Drop After Machinery Orders Unexpectedly Fall, Led by Sony

(Bloomberg) -- Japanese stocks dropped after machinery orders unexpectedly fell 4.5 percent in March, indicating companies are not optimistic about growth prospects.

Shares of companies most sensitive to changes in the economy that have outperformed the Topix index, led declines. Sony Corp., the world's second-largest consumer electronics maker, which had climbed 28 percent so far this year, slumped the most in two months.


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European Two-Year Yields Trade Near Five-Year High Before Growth Figures

(Bloomberg) -- European two-year government bond yields traded near the highest in almost five years before a report on economic growth in the euro region.

The extra yield investors earn on 10-year U.S. Treasuries over similar maturity German bunds today shrank to the least since 2004 as growth in Europe is set to outpace U.S. expansion. European interest-rate futures suggest investors are increasing bets the ECB will raise rates twice more this year.


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Philippine Peso, World's Biggest Mover, Rises as Filipinos Send Funds Home

(Bloomberg) -- The Philippine peso rose to a six-year high, the biggest fluctuation of any currency today, on speculation Filipinos working overseas are sending more money home this month to pay education fees. Government bonds fell.

Remittances have exceeded $1 billion for 10 months, helping support the currency as the funds are converted out of dollars into pesos. A ``relatively peaceful'' election to select members to the Senate and Congress also helped support sentiment, said Roland Avante, treasurer at Chinatrust (Philippines) Commercial Bank in Manila.


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Consumer Prices in U.S. Probably Rose in April on Gasoline, Food Costs

(Bloomberg) -- Prices paid by U.S. consumers rose in March for the fifth straight month, driven by food and near- record gasoline costs, economists said before a government report today.

Prices rose 0.5 percent after a 0.6 percent March increase, according to the median forecast of economists surveyed by Bloomberg News ahead of the Labor Department's report. Core prices, which exclude food and energy, rose 0.2 percent after a 0.1 percent gain, the survey showed.


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Rand slightly firmer on wobbly dollar

(Reuters) - South Africa's rand was slightly stronger versus the dollar on Monday and traders said it would likely maintain its firmer tone on the back of renewed dollar weakness.

The rand was trading at 6.9215 against the dollar at 0640 GMT, 0.25 percent stronger than its previous New York close of 6.9425.


Read more at Reuters Africa

Barloworld's profits rise, upbeat on new strategy

(Reuters) - South African industrial group Barloworld posted a 14 percent jump in first-half headline earnings, helped by strong growth in its earthmoving business, and gave a rosy outlook following a major shift in strategy.

Barloworld, which represents leading international brands such as Caterpiller earth-moving machines and Avis car hire, is the world's largest independent lift truck dealer. The company has decided to focus on its equipment, motor, materials handling and logistics divisions and is selling other units to achieve this goal.


Read more at Reuters Africa

Aquarius Platinum workers due back on job Monday

(Reuters) - Striking workers at two South African mines owned by Aquarius Platinum are due to return to work on Monday night, the firm said.

"The union and (contractor) MRC have reached an agreement and workers will go back to work tonight," spokeswoman Marion Brower told Reuters.


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Authority amends penalty proposal on S.Africa Mittal

(Reuters) - South Africa's Competition Commission on Monday withdrew its recommendation to the Competition Tribunal to impose a penalty on Mittal Steel SA after it was found to have over-charged Barnes Fencing.

Mittal Steel SA objected to the administrative penalty sought by the Commission, citing that such a penalty can only be imposed if the respondents have been repeating the conduct.


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China's April Oil Imports Rise to Record as Economic Growth Spurs Demand

(Bloomberg) -- China's crude oil imports rose 23 percent to a record in April as output from domestic fields failed to keep pace with consumption in the world's fastest- growing major economy.

Imports climbed to 14.82 million metric tons (about 3.6 million barrels a day) last month, according to figures released by the Beijing-based Customs General Administration of China on its Web site today. China imported 54.46 million tons of crude from January to April, 10.8 percent more than a year earlier, customs said.


Read more at Bloomberg Energy News

Slovakian Economy Probably Grew at Record Pace in First Quarter on Export

(Bloomberg) -- Slovakia's economy probably grew in the first quarter at the fastest pace since the country was established, led by exports of cars by PSA Peugeot Citroen and Kia Motors Corp., a survey of economists shows.

Gross domestic product rose an annual 10.6 percent, the most since Czechoslovakia split into two nations in 1993, compared with 9.6 percent expansion in the previous quarter, according to the median estimate of 10 economists surveyed by Bloomberg. The Slovak Statistical Office will release the report at 9 a.m. today.


Read more at Bloomberg Emerging Markets News

Korea's Won Trades Near Highest in Four Month; Government Bonds Decline

(Bloomberg) -- South Korea's won stayed near its strongest since December on speculation overseas investors will keep buying the nation's equities. Government bonds fell.

The won traded within 0.2 percent of its highest since Dec. 18, reached on May 7, as the benchmark stock index yesterday closed at a record high on optimism economic growth will accelerate. Investors based abroad became net buyers of Korean shares this year after being net sellers in 2006, according to stock exchange data.


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Bernanke's Warning Spurs Record Bets on Decline in Two-Year Treasury Notes

(Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke's inflation concerns have prompted investors to make a record bet against $88.8 billion of two-year Treasuries.

That's the amount of futures contracts on notes traders have sold at the Chicago Board of Trade, the most since the Commodity Futures and Trading Commission began keeping track of the data in 1993. It exceeds wagers to profit from rising prices by $51.8 billion, the largest so-called net short position ever, according to CFTC data released May 11.


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Agilent Advances on Forecast; STEC Retreats on Profit: U.S. After Hours

(Bloomberg) -- Agilent Technologies Inc. climbed in extended U.S. trading after the world's biggest maker of scientific-testing equipment forecast third-quarter profit that topped analysts' estimates.

Shares of the Santa Clara, California-based company gained $1.69, or 4.7 percent, to $37.91 as of 5:34 p.m. in New York. Agilent said fiscal third-quarter profit excluding some items may be 46 cents to 50 cents a share. That's more than the 45-cent average analyst estimate compiled by Bloomberg. The company said second-quarter earnings rose 7 percent after demand increased for bio-analytical instruments.


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Crooks, Astute Shareholders Alike Find Options Market Proving Prescient

(Bloomberg) -- Illegal or not, trading in options may be the most prescient news you can use.

The number of options to buy shares of Valero Energy Corp. and American Express Co. doubled in the week before the companies reported better-than-estimated earnings. Trading in contracts tied to TXU Corp. and Dow Jones & Co. climbed at least sevenfold a day ahead of takeover announcements that pushed the stocks up as much as 55 percent and prompted a manhunt for the leakers.


Read more at Bloomberg Exclusive News