| CME bid spurs fears of merger monster
THE commodities boom is intensifying the merger mania among the world's financial exchanges. But the $US11 billion ($12.4 billion) bid by CME Group to acquire Nymex Holdings may fuel worries that consolidation is leaving the survivors with too much power. A purchase of the 135-year-old New York Mercantile Exchange's owner by CME, parent of the Chicago Mercantile Exchange, would create the largest exchange in the world, with a stock market value of about $US45 billion. And acquiring Nymex's crude oil futures, one of the largest commodity contracts in the world, would fill the last major hole in the 110-year-old Chicago exchange's product line-up, while squeezing remaining rivals in the energy market. The deal also highlights some unsettling consequences of the global scramble for alliances and market share in trading financial securities.
Swan blames inflation rise on previous govt
Federal Treasurer Wayne Swan has used today's inflation figures to attack the previous Howard Government's economic record. The Consumer Price Index has risen a slightly higher than expected 0.9 per cent, driven by petrol prices, banking costs, rising rents and domestic holidays. That takes annual inflation to 3 per cent, which is right on the Reserve Bank's upper limit. Perhaps more importantly, the central bank's own two underlying measures have surged to 3.8 and 3.4 per cent. Today's cost of living figures from the Bureau of Statistics are seen as crucial ahead of next month's interest rates decision from the Reserve Bank. Mr Swan says elevated inflation is the Liberal Party's parting gift to Australian families. "Now it's pretty clear when you look at underlying inflation that these pressures have taken a long time to build," he said.
Report Raises Alarm over 'Superweeds'
It's been 12 years since the first genetically modified crop was sown in the U.S., and controversy has raged since. Now, another salvo has been launched, in the form of a new report from environmental activist organization Friends of the Earth International and the Center for Food Safety, a Washington (D.C.) advocacy group. Called Who Benefits from GM Crops?, the study examines the emergence of "superweeds" that have developed a resistance to conventional herbicides such as Monsanto's (MON) Roundup. The culprits, says the report, are plants like corn, soybeans, and cotton that have been genetically modified to survive Roundup. Farmers can spray their fields and the weeds will die but the crops will thrive. As more acres of "Roundup Ready" crops are planted, the use of the pesticide has increased.
Asian Stocks Rebound Fizzles Out
Forex: Carry trades continued at the start of the Asian session, as stock markets rebounded in a knee-jerk reaction to the Fed's emergency rate cut. But the rebound in Asian stocks lacked conviction, and carry trades reversed in the afternoon. "The very crux of the reason we didn't have a snapback (stocks) rally is that the market was calling for this already," said Peter McCorry at Keefe Bruyette & Woods, referring to the market's reaction to the Fed's 75bps interest rate cut. The NZD/JPY erased early gains despite talk of Uridashi issues later this week. The AUD failed to hold on to data-related gains after the stronger than expected Q4 inflation data, with AUD/JPY selling dragging down AUD/USD. AUD/USD is currently trading below the 60% retracement of its recent drop from 0.9021 to 0.8504.
The best investments of 2007
A weak dollar helped gold gain in value as well as concerns over geo-political strife between the US and Iran. Interestingly, it even benefitted from the retail tastes of shoppers in China and India. Graham Spooner from stockbrokers The Share Centre explains: 'Whenever the dollar weakens or if there are turbulent times in international politics, gold does well. Not only that, but a growing middle class in the powerhouses of China and India has led to a rise demand for gold jewellery, meaning supplies become more valuable.' .
This year, the American people will choose between two diametrically ...
The Democratic Party looks at our nation and sees the twilight of the American soul. Republicans affirm that now, as throughout history, the spiritual and intellectual genius of the American people will create a better nation and maintain a just peace. To Republicans, creativity and growth are imperatives for a new era of opportunity for all. The Republican Party's vision of America's future, the heart of our 1984 Platform, begins with a basic premise: From freedom comes opportunity; from opportunity comes growth; from growth comes progress. This is not some abstract formula. It is the vibrant, beating heart of the American experience. No matter how complex our problems, no matter how difficult our tasks, it is freedom that inspires and guides the American Dream.
MCX to support Microsoft's rural technology training programme
MUMBAI: Multi Commodity Exchange of India on Thursday announced its support to an ongoing computer literacy programme of Microsoft and Indian Society of Agribusiness Professionals in rural Maharashtra.
This marks the launch of MCX's Corporate Social Responsibility initiative aimed at empowering the youth and women of rural areas of the state with technology skills.
Till now over 15,500 people have been trained and more than 24,000 people are using this service across 16 districts by the means of understanding the futures markets prices of the area specific commodities.
MCX's support will help in increasing deployment of laptop and desktop computers and thereby strengthen the ongoing technology training and adoption efforts through the project.
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