| Dow industrials up triple digits, reversing earlier triple-digit loss
NEW YORK, Feb. 20, 2008 (Thomson Financial delivered by Newstex) -- The Dow industrials rallied triple digits in afternoon trading Wednesday, reversing triple-digit losses seen earlier, as oil's surge to record highs above the $100 mark could no longer dampen enthusiasm over a slight improvement in housing starts and Hewlett-Packard Co.'s (NYSE:HPQ) strong quarterly results and outlook. The Dow industrials was up 108 points at 12,445, with 22 of 30 components trading higher. Earlier in the session, the Dow was down as much as 109.50 points. On Tuesday, the blue chip barometer blew a 157-point intraday gain to close down 11 points as March crude oil futures closed settled above the $100 mark for the first time on the New York Mercantile Exchange. March crude was last up 73 cents at $100.74, paring gains to an earlier high of $101.32.
Keeping the wage monster at bay presages interest rate pain
Wage inflation, the monster lurking beneath the bed of every central banker, is creeping higher. If you hold the figures at arm's length and squint you can convince yourself the trend is actually flat. But it isn't. The 1.1 per cent seasonally adjusted rise in the bellwether measure, the index of total hourly rates of pay excluding bonuses, was little different from the previous four quarterly moves of either 1.0 or 1.1per cent. Even so, annual growth of 4.3 per cent was still the highest for the series, which started in 1997. There is no clear trend for employees in the public sector, where annual growth of 4.2 per cent was near the previous five years' average of 4.3 per cent. But the trend in the private sector, where the forces of supply and demand pack more punch, is clearly upward.
Panel II: Iran and the Gulf
At first glance a free trade agreement seems an odd format. Neither the GCC states nor Iran can offer each other much economically. All are energy exporters and importers of manufactured goods. There are few opportunities for synergies. For Saudi Arabia, Kuwait and Bahrain, the GCC states that have large Shi'ite populations and so are terrified of Iran's rise, the deal could serve as a sort of political tribute, a kind of pledge of cooperation with the region's superpower. Such a deal might be hard to swallow for these states but open defiance could invite Iran to make more direct efforts to influence its neighbors.
Elsewhere in the GCC, Qatar, the UAE and Oman are more likely to view the FTA offer with legitimate interest. None of these states has appreciable Shi'ite interests and so all feel less threatened by Iran than the states that do.
Apache enjoys doubling of quarterly profit
Apache Corp., the largest U.S. investor in Egypt, said Thursday that its fourth-quarter net income doubled because of record oil prices and increased production. Profit jumped to $1.07 billion, or $3.19 a share, from $520.8 million, or $1.56, a year earlier, Houston-based Apache said. Profit excluding the impact of tax-rate changes and currency fluctuations was $2.92 a share, 44 cents higher than the average of 26 analyst estimates compiled by Bloomberg. U.S. oil futures traded 50 percent higher than a year earlier in the fourth quarter on their way to topping $100 a barrel for the first time in January. About half of Apache's production is oil. More than 85 percent is sold at the going rate, rather than under hedging contracts that lock in prices. "Every day that we see $90 oil is a very good day," Chief Financial Officer Roger Plank told investors at an industry conference in November.
Share prices rebound 5pc
THE Australian stock market closed higher for a third straight day, taking its gains since the global rout to 13 per cent. The bourse was buoyed by gains in the big miners after base metals prices in London strengthened, and following a positive lead from Wall Street overnight. Copper gained 3 per cent, on improved sentiment in global equity markets. The benchmark S&P/ASX 200 Index finished up 279.9 points, or 5 per cent, at 5860.3. The index snapped a 12-day losing streak earlier week after the US central bank made an emergency cut in interest rates to shore up the struggling US economy. Financial markets are betting the US Federal Reserve will cut again next week. The broader All Ordinaries closed up 280.5 points, or 5 per cent, at 5886.3. US equity markets were higher overnight following some solid earnings reports and after the Bush administration said 117 million US families would receive a tax rebate cheque in a move designed to stimulate the world's largest economy.
Zimbabwe: Industry Needs U.S.$2 Billion to Recover From Price Blitz
ZIMBABWE'S battered industries need a staggering US$2 billion to recapitalise after last year's price blitz, a business leader said last week. Callisto Jokonya, Confederation of Zimbabwe Industries (CZI) president told Standardbusiness the massive injection, coupled with supportive policies, would provide a lasting solution to the crisis confronting industries. .
NYSE takes stake in India’s MCX
NYSE Euronext has bought a 5 per cent stake in India's largest commodities exchange, expanding its presence in the fast-growing economy. The US group, which runs New York Stock Exchange, also has a stake in India's biggest stock market. .
Dollar marginally firmer at noon
THE Australian dollar was marginally firmer at noon as weaker than forecast retail sales and building approvals data dampened inflationary expectations and pulled the currency off its morning highs ahead of today's interest rate announcement. Still, the currency is tipped to surge to $US0.9200 in the event of a hawkish monetary policy statement from the Reserve Bank of Australia (RBA). At 12pm AEDT, the dollar was trading at $US0.9051/56, up from yesterday's close of 0.9047/52. During morning session, the domestic currency traded between a low of $US0.9054 and a high of 0.9088. The local unit was subdued after residential building approvals for December fell 16 per cent, which was much greater than market forecasts of a 3.5 per cent slump. Meanwhile, retail sales for the same period grew by a 0.5 per cent, which was less than market forecasts of 0.6 per cent, the Australian Bureau of Statistics reported.
Ludacris - War With God (T.I. Diss)
Anybody who thinks that down south rappers can't rap, i can't even put into words of how wrong you are. I reppin south cak and the rest of the south to the fullest. Get use to my name because i'm new to this, but i'm going to have a lot to say about different songs later. .
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