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Economy | Business | Social | Leaked | Opinions
Monday, November 26, 2007
Federal Reserve to Arrange $8 Billion of Term Repos
Federal Reserve to Arrange $8 Billion of Term Repos (Update2)
By Ye Xie
Nov. 26 (Bloomberg) -- The New York Federal Reserve will arrange $8 billion of long-term repurchase agreements, or repos, in a bid to hold down banks' borrowing costs through year-end.
The Fed's move, the first such operation since 2005, follows the European Central Bank's announcement last week that it will make extra cash available to banks to ``counter the re-emerging risk of volatility'' in money markets. The average U.S. overnight rate has been above the Fed's 4.5 percent target almost every day since Nov. 9, suggesting banks are reluctant to lend to each other amid mounting subprime market losses.
``The Fed is pulling out all stops to try to alleviate funding pressures in the money and financing markets as the markets lurch into year-end,'' said Chris Rupkey, senior financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. ``Given the heightened state of credit aversion going on it looks like the only magic bullet that they have to help the markets is a rate cut.''
Central bankers next meet to set the overnight target rate on Dec. 11. They have cut the rate twice since September, bringing it down from 5.25 percent, in a bid to buoy bank lending and keep the U.S. economy out of recession.
The New York Fed said in a statement that it will arrange the first of the long-term repo operations on Nov. 28 ``in response to heightened pressures in money markets for funding through the year-end.'' The repos will mature on Jan. 10. The Fed also said that it plans to ``provide sufficient reserves to resist upward pressures'' on the overnight rate in coming weeks.
`Particular Concern'
``What the Fed's trying to do here is let the market know that they will provide liquidity around year-end, which is of particular concern in financial markets right now,'' said Michael Pond, an interest-rate strategist in New York at Barclays Capital Inc. ``So anything they can do around that should help alleviate concerns as we head to year-end.''
In repos, the Fed buys U.S. Treasury, mortgage-backed and so-called agency debt from its 21 primary dealers for a set period, temporarily raising the amount of money available in the banking system. At maturity, the securities are returned to the dealers and the cash to the Fed.
In a separate statement, the Fed said it will raise the limits on the amount of Treasury securities dealers can borrow from its System Open Market Account. Through the account, dealers can borrow Treasury notes and bills that are scarce in the repo market.
Borrowing Limits
Primary dealers will be able to borrow 25 percent of the amount available, with a maximum of $750 million per Treasury security, up from the previous limit of 20 percent with a maximum of $500 million per issue, according to the Fed's statement.
The Fed said it has also increased the amount available for borrowing each day to 90 percent of an issue from 65 percent. Dealers can also borrow securities maturing in six days or longer. The Fed had previously limited the borrowing only to issues maturing in at least 13 days.
In the daily so-called open market operation, the Fed added $10.25 billion through overnight repos today. There's $6.3 billion in repos maturing today. Wrightson, an ICAP research unit specializing in U.S. government finance, had expected the Fed to add as much as $15 billion.
Repos help maintain enough money in the system to keep overnight interest rates close to the central bank's target.
The overnight rate traded at 4 11/16 percent today, above the Fed's 4.5 percent target rate.
By Ye Xie
Nov. 26 (Bloomberg) -- The New York Federal Reserve will arrange $8 billion of long-term repurchase agreements, or repos, in a bid to hold down banks' borrowing costs through year-end.
The Fed's move, the first such operation since 2005, follows the European Central Bank's announcement last week that it will make extra cash available to banks to ``counter the re-emerging risk of volatility'' in money markets. The average U.S. overnight rate has been above the Fed's 4.5 percent target almost every day since Nov. 9, suggesting banks are reluctant to lend to each other amid mounting subprime market losses.
``The Fed is pulling out all stops to try to alleviate funding pressures in the money and financing markets as the markets lurch into year-end,'' said Chris Rupkey, senior financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd. in New York. ``Given the heightened state of credit aversion going on it looks like the only magic bullet that they have to help the markets is a rate cut.''
Central bankers next meet to set the overnight target rate on Dec. 11. They have cut the rate twice since September, bringing it down from 5.25 percent, in a bid to buoy bank lending and keep the U.S. economy out of recession.
The New York Fed said in a statement that it will arrange the first of the long-term repo operations on Nov. 28 ``in response to heightened pressures in money markets for funding through the year-end.'' The repos will mature on Jan. 10. The Fed also said that it plans to ``provide sufficient reserves to resist upward pressures'' on the overnight rate in coming weeks.
`Particular Concern'
``What the Fed's trying to do here is let the market know that they will provide liquidity around year-end, which is of particular concern in financial markets right now,'' said Michael Pond, an interest-rate strategist in New York at Barclays Capital Inc. ``So anything they can do around that should help alleviate concerns as we head to year-end.''
In repos, the Fed buys U.S. Treasury, mortgage-backed and so-called agency debt from its 21 primary dealers for a set period, temporarily raising the amount of money available in the banking system. At maturity, the securities are returned to the dealers and the cash to the Fed.
In a separate statement, the Fed said it will raise the limits on the amount of Treasury securities dealers can borrow from its System Open Market Account. Through the account, dealers can borrow Treasury notes and bills that are scarce in the repo market.
Borrowing Limits
Primary dealers will be able to borrow 25 percent of the amount available, with a maximum of $750 million per Treasury security, up from the previous limit of 20 percent with a maximum of $500 million per issue, according to the Fed's statement.
The Fed said it has also increased the amount available for borrowing each day to 90 percent of an issue from 65 percent. Dealers can also borrow securities maturing in six days or longer. The Fed had previously limited the borrowing only to issues maturing in at least 13 days.
In the daily so-called open market operation, the Fed added $10.25 billion through overnight repos today. There's $6.3 billion in repos maturing today. Wrightson, an ICAP research unit specializing in U.S. government finance, had expected the Fed to add as much as $15 billion.
Repos help maintain enough money in the system to keep overnight interest rates close to the central bank's target.
The overnight rate traded at 4 11/16 percent today, above the Fed's 4.5 percent target rate.
EUROPEAN INDEXES
XAK
FTSE/CySE 20 1635.02 ( 0.20%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ 4771.55 ( 0.19%)
Όγκος: € 10,775,322
------
FTSE 100 INDEX 6,180.50 -81.60 -1.30%
CAC 40 INDEX 5,458.39 -62.78 -1.14%
DAX INDEX 7,567.36 -41.60 -0.55%
FTSE/CySE 20 1635.02 ( 0.20%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ 4771.55 ( 0.19%)
Όγκος: € 10,775,322
------
FTSE 100 INDEX 6,180.50 -81.60 -1.30%
CAC 40 INDEX 5,458.39 -62.78 -1.14%
DAX INDEX 7,567.36 -41.60 -0.55%
EUROPEAN INDEXES
XAK
FTSE/CySE 20 1635.02 ( 0.20%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ 4771.55 ( 0.19%)
Όγκος: € 10,775,322
----
FTSE 100 INDEX
6,180.50
-81.60
-1.30%
11:35
CAC 40 INDEX
5,458.39
-62.78
-1.14%
12:10
DAX INDEX
7,567.36
-41.60
-0.55%
FTSE/CySE 20 1635.02 ( 0.20%)
ΓΕΝΙΚΟΣ ΔΕΙΚΤΗΣ 4771.55 ( 0.19%)
Όγκος: € 10,775,322
----
FTSE 100 INDEX
6,180.50
-81.60
-1.30%
11:35
CAC 40 INDEX
5,458.39
-62.78
-1.14%
12:10
DAX INDEX
7,567.36
-41.60
-0.55%
Philips to Acquire Genlyte for $2.7 Billion in Cash
Philips to Acquire Genlyte for $2.7 Billion in Cash (Correct)
By Marcel van de Hoef
(Corrects spelling of spokesman's name in fifth paragraph.)
Nov. 26 (Bloomberg) -- Royal Philips Electronics NV, the world's biggest maker of light bulbs, agreed to buy lighting- fixtures manufacturer Genlyte Group Inc. for $2.7 billion, its largest purchase ever.
Philips will pay $95.50 a share in cash, it said today in a PRNewswire statement. The offer is 52 percent above Louisville, Kentucky-based Genlyte's closing price on Nov.23 of $62.67.
Chief Executive Officer Gerard Kleisterlee is using proceeds from selling Philips' semiconductor holdings to bolster the medical and lighting divisions and return cash to shareholders. Buying Genlyte will help Amsterdam-based Philips boost sales of systems using high-power light-emitting diodes, or LEDs.
``The big advantage is that this business is actually making money,'' said Eric de Graaf, an Amsterdam-based analyst at Petercam who recommends investors ``hold'' Philips shares. ``This fits the strategy and is a completely logical acquisition if you look at cash available.''
Jayson Otke, a senior press officer at Philips, said the deal was the company's largest acquisition ever in dollar terms.
Philips rose 40 cents, or 1.4 percent, to 28.84 euros as of 10:35 a.m. in Amsterdam trading. Before today, the stock had fallen less than 1 percent this year, in line with the drop in the benchmark Amsterdam Exchanges Index.
Genlyte rose 99 cents, or 1.6 percent, in Nasdaq Stock Market trading on Nov. 23. The shares have dropped 20 percent this year.
Acquisitions, Dividends and Buybacks
The company, whose systems are used to illuminate office buildings, shops, streets, factories and gas stations, had sales of about $1.6 billion in the 12 months ended in September. Earnings before interest, tax and amortization as a percentage of sales was 14.9 percent.
Philips has said it has as much as 20 billion euros ($29.7 billion) available for acquisitions, dividends and buybacks in the next three years. The company has completed or announced 6.5 billion euros of takeovers since August 2005, including Genlyte.
Genlyte's board will recommend the offer to its shareholders, Philips said in the statement.
Philips anticipates completing the deal in the first quarter of next year. The takeover will make it the biggest North American lighting company, according to the statement.
By Marcel van de Hoef
(Corrects spelling of spokesman's name in fifth paragraph.)
Nov. 26 (Bloomberg) -- Royal Philips Electronics NV, the world's biggest maker of light bulbs, agreed to buy lighting- fixtures manufacturer Genlyte Group Inc. for $2.7 billion, its largest purchase ever.
Philips will pay $95.50 a share in cash, it said today in a PRNewswire statement. The offer is 52 percent above Louisville, Kentucky-based Genlyte's closing price on Nov.23 of $62.67.
Chief Executive Officer Gerard Kleisterlee is using proceeds from selling Philips' semiconductor holdings to bolster the medical and lighting divisions and return cash to shareholders. Buying Genlyte will help Amsterdam-based Philips boost sales of systems using high-power light-emitting diodes, or LEDs.
``The big advantage is that this business is actually making money,'' said Eric de Graaf, an Amsterdam-based analyst at Petercam who recommends investors ``hold'' Philips shares. ``This fits the strategy and is a completely logical acquisition if you look at cash available.''
Jayson Otke, a senior press officer at Philips, said the deal was the company's largest acquisition ever in dollar terms.
Philips rose 40 cents, or 1.4 percent, to 28.84 euros as of 10:35 a.m. in Amsterdam trading. Before today, the stock had fallen less than 1 percent this year, in line with the drop in the benchmark Amsterdam Exchanges Index.
Genlyte rose 99 cents, or 1.6 percent, in Nasdaq Stock Market trading on Nov. 23. The shares have dropped 20 percent this year.
Acquisitions, Dividends and Buybacks
The company, whose systems are used to illuminate office buildings, shops, streets, factories and gas stations, had sales of about $1.6 billion in the 12 months ended in September. Earnings before interest, tax and amortization as a percentage of sales was 14.9 percent.
Philips has said it has as much as 20 billion euros ($29.7 billion) available for acquisitions, dividends and buybacks in the next three years. The company has completed or announced 6.5 billion euros of takeovers since August 2005, including Genlyte.
Genlyte's board will recommend the offer to its shareholders, Philips said in the statement.
Philips anticipates completing the deal in the first quarter of next year. The takeover will make it the biggest North American lighting company, according to the statement.
KBW: Βλέπει την ΜΡΒ στα €12,7
KBW: Βλέπει την ΜΡΒ στα €12,7
Ημερομηνία Δημοσίευσης:
26/11/2007 11:29:34
Ανεβάζει τον πήχη για τη μετοχή της Marfin Popular η Keffe, Bruyette & Woods (KBW). Σε έκθεσή της, ημερομηνίας 23 Νοεμβρίου, η KBW ανεβάζει την τιμή στόχο για τη μετοχή της Τράπεζας στα €12,7 από €12 προηγουμένως, διατηρώντας τη σύσταση outperform. Η KBW αναφέρεται σε «εντυπωσιακό προφίλ ανάπτυξης, ρευστότητας και ισχυρής κεφαλαιοποίησης της τράπεζας (impressive growth profile, liquid and strongly capitalized), υπογραμμίζοντας ότι η MPB είναι μια από τις ταχύτερα αναπτυσσόμενες τράπεζες στην Ευρώπη, με μέση ετήσια εκτιμώμενη αύξηση των κερδών ανά μετοχή 29% στο διάστημα 2007 - 2009, τη στιγμή που η αντίστοιχη αύξηση στην Ελλάδα είναι 20% και στην ΕΕ 11%. Σύμφωνα με την KBW, οι ισχυρές προοπτικές της MPB υποστηρίζονται μερικώς από το «ανώριμο», αλλά επεκτεινόμενο δίκτυο υποκαταστημάτων στην Ελλάδα, την αυξανόμενη δυναμική στην Κύπρο ως κέντρου διεθνών επιχειρηματικών δραστηριοτήτων, τις νέες διεθνείς πρωτοβουλίες στην αναδυόμενη Ευρώπη και τις συνέργιες εσόδων που δημιουργούνται με την MIG. Η KBW αυξάνει τις εκτιμήσεις του για τη Marfin Popular Bank κατά 25%, λόγω της επιταχυνόμενης διεύρυνσης των δραστηριοτήτων της, μειώνει δε τις αρχικές προσδοκίες για cross-selling από την MIG, καθώς προβλέπεται ένα μικρότερο μέγεθος χαρτοφυλακίου. Το καθαρό κέρδος της MPB εκτιμάται να φθάσει τα €610 εκ. το 2007, τα €707 εκ. το 2008 και τα €899 εκ. το 2009. Το κέρδος ανά μετοχή εκτιμάται να διαμορφωθεί στα €0,64 το 2007, τα €0,85 το 2008 και τα €1,06 το 2009.
STOCKWATCH.COM.CY
Ημερομηνία Δημοσίευσης:
26/11/2007 11:29:34
Ανεβάζει τον πήχη για τη μετοχή της Marfin Popular η Keffe, Bruyette & Woods (KBW). Σε έκθεσή της, ημερομηνίας 23 Νοεμβρίου, η KBW ανεβάζει την τιμή στόχο για τη μετοχή της Τράπεζας στα €12,7 από €12 προηγουμένως, διατηρώντας τη σύσταση outperform. Η KBW αναφέρεται σε «εντυπωσιακό προφίλ ανάπτυξης, ρευστότητας και ισχυρής κεφαλαιοποίησης της τράπεζας (impressive growth profile, liquid and strongly capitalized), υπογραμμίζοντας ότι η MPB είναι μια από τις ταχύτερα αναπτυσσόμενες τράπεζες στην Ευρώπη, με μέση ετήσια εκτιμώμενη αύξηση των κερδών ανά μετοχή 29% στο διάστημα 2007 - 2009, τη στιγμή που η αντίστοιχη αύξηση στην Ελλάδα είναι 20% και στην ΕΕ 11%. Σύμφωνα με την KBW, οι ισχυρές προοπτικές της MPB υποστηρίζονται μερικώς από το «ανώριμο», αλλά επεκτεινόμενο δίκτυο υποκαταστημάτων στην Ελλάδα, την αυξανόμενη δυναμική στην Κύπρο ως κέντρου διεθνών επιχειρηματικών δραστηριοτήτων, τις νέες διεθνείς πρωτοβουλίες στην αναδυόμενη Ευρώπη και τις συνέργιες εσόδων που δημιουργούνται με την MIG. Η KBW αυξάνει τις εκτιμήσεις του για τη Marfin Popular Bank κατά 25%, λόγω της επιταχυνόμενης διεύρυνσης των δραστηριοτήτων της, μειώνει δε τις αρχικές προσδοκίες για cross-selling από την MIG, καθώς προβλέπεται ένα μικρότερο μέγεθος χαρτοφυλακίου. Το καθαρό κέρδος της MPB εκτιμάται να φθάσει τα €610 εκ. το 2007, τα €707 εκ. το 2008 και τα €899 εκ. το 2009. Το κέρδος ανά μετοχή εκτιμάται να διαμορφωθεί στα €0,64 το 2007, τα €0,85 το 2008 και τα €1,06 το 2009.
STOCKWATCH.COM.CY
DOW JONES (ΤΕΧΝΙΚΗ ΑΝΑΛΥΣΗ)
ΑΝΤΙΣΤΑΣΗ 2 14,375
ΑΝΤΙΣΤΑΣΗ 1 13,900
ΣΤΗΡΙΞΗ 1 13,300 ; (ΕΑΝ ΑΝΑΠΗΔΗΣΕΙ ΘΑ ΔΗΜΙΟΥΡΓΗΘΕΙ Η ΣΥΓΚΕΚΡΙΜΕΝΗ ΣΤΗΡΙΞΗ)
ΣΤΗΡΙΞΗ 2 12,450
ΥΓ. ΠΕΡΙΟΔΟΣ ΓΙΑ 3 ΧΡΟΝΙΑ.
ΥΓ2 ΤΟ ΓΡΑΦΗΜΑ ΜΠΟΡΕΙΤΕ ΝΑ ΤΟ ΒΡΕΙΤΕ ΠΑΤΩΝΤΑΣ ΠΙΟ ΚΑΤΩ.
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