Bernanke Says Fiscal Stimulus Could Revive Expansion
Jan. 17 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said fiscal stimulus of as much as $150 billion would help revive economic growth, while warning against any widening of the budget deficit in coming years.
Bernanke's acknowledgment that the economy is weak enough to need stimulus validates forecasts that the Fed will lower interest rates by at least half a percentage point this month. President George W. Bush will tomorrow lay out the general principles he favors for a short-term stimulus, Deputy Press Secretary Tony Fratto said today.
A temporary package of at least $60 billion to $70 billion in spending by early 2009 would have a ``significant'' effect in the second half of this year, Bernanke said.
``It would certainly be measurable, it would not be window dressing,'' he told the House Budget Committee in Washington today in response to a question.
He repeated remarks from last week that the Fed is ready to take ``substantive additional action'' on interest rates to insure against risks of a recession. Treasury notes rallied and the dollar dropped after Bernanke's remarks and a report from the Fed's Philadelphia branch showing manufacturing shrank.
``Support of a temporary fiscal stimulus suggests great concern on Bernanke's part about the downside risks,'' said Robert Eisenbeis, a former research director at the Atlanta Fed. ``He certainly doesn't want to be held responsible for a recession, even though the seeds were laid'' in final years of former chairman Alan Greenspan's tenure, he said.
Timing Critical
Bernanke warned that a fiscal package could also ``prove quite counterproductive'' if it arrived at the ``wrong time or compromised fiscal discipline in the longer term.''
Bernanke reiterated that the outlook for growth in 2008 has worsened and ``the downside risks to growth have become more pronounced.'' He said the Fed isn't forecasting a recession this year.
Retail sales fell last month, unemployment rose, and housing markets are mired in the worst slump in 16 years.
Bernanke noted that banks are trying to protect asset quality and funding, and tightening credit conditions for the rest of the economy as a result.
``Banks have also evidently become more restrictive in their lending to firms and households,'' he said. ``More expensive and less-available credit seems likely to impose a measure of restraint on economic growth.''
Housing Starts Tumble
Homebuilders broke ground on the fewest homes since 1991 last month, the Commerce Department reported today. Building permits, a sign of future construction, declined by the most in 12 years, suggesting the housing slump will deepen.
Residential construction subtracted about 1 percent from growth in the third quarter, and likely curtailed growth even more in the fourth quarter, Bernanke said. Sluggish housing markets ``may continue to be a drag on growth for a good part of this year.''
Bernanke said inflation, both including and excluding food and energy costs, ``should moderate this year and next, so long as the public's confidence in the Federal Reserve's commitment to price stability is unshaken.'' He cited inflation expectations that appear ``well anchored'' and futures suggesting food and energy price increases will slow.
Break With Greenspan
Bernanke, as in past congressional appearances, avoided recommending any particular tax measure or spending program. His predecessor, Alan Greenspan, involved himself in shaping tax policy, recommending cuts over spending increases in 2001, a strategy which his colleagues disliked out of concern it would compromise the central bank's independence.
The chairman's speech ``is an endorsement of temporary measures, if enacted quickly, but he's covering himself to ensure he is not blamed for anything in a few years, the way Greenspan is now blamed for endorsing the Bush tax cuts,'' said Ian Morris, chief U.S. economist at HSBC Securities USA Inc.
Aside from quick implementation, a stimulus package should also be ``structured so that its effects on aggregate spending are felt as much as possible in the next 12 months,'' Bernanke said today. If stimulus comes at a time when growth is improving, it could be ``destabilizing,'' he said.
U.S. Treasury and White House officials are considering tax proposals that would provide consumers with more cash and give businesses an incentive to invest more in their capital stock, according to analysts speaking with administration officials.
Bernanke Guidance
While Bernanke stressed that it's up to elected lawmakers to decide on tax and spending proposals, he did offer advice on the types of measures that may be more effective. He urged that they ``diversify'' the components to broaden the impact.
There is the most ``bang for the buck'' from transferring funds to lower- and middle-income workers because they are more likely than the wealthy to spend the money quickly, Bernanke said. Tax rebates in 2001 helped bolster consumer spending and prevent a deeper recession, the Fed chief said.
Turning to corporate taxes, Bernanke said incentives for investment in software and equipment would be more effective than a cut in the corporate tax rate. He suggested that the rate is more a question for the longer term.
Bernanke declined to comment directly when asked by Republican legislators whether he favors making permanent the 2001 and 2003 tax cuts scheduled to expire in 2010. At the same time, he said that making dividend-tax cuts permanent could have a short-term impact on financial markets.
While stating that tax cuts ``don't generally pay for themselves'' and urging lawmakers to balance the budget, Bernanke said that for a short-term package to help the economy, it would need to widen the budget gap at least for a time.
BLOOMBERG
Economy | Business | Social | Leaked | Opinions
Thursday, January 17, 2008
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Citigroup: Βλέπουμε πλέον ευκαιρίες στο ΧΑ
Citigroup: Βλέπουμε πλέον ευκαιρίες στο ΧΑ
«Στα τρέχοντα επίπεδα ή το πολύ κοντά στις 4300 με 4400 μονάδες το ελληνικό χρηματιστήριο και ειδικά οι τράπεζες αποτελούν ευκαιρία για τοποθετήσεις» τονίζει κορυφαίο στέλεχος της Citigroup στο «R». To στέλεχος αυτό το οποίο επιβεβαιώθηκε πλήρως στις προβλέψεις του όταν έκανε λόγω για υποχώρηση του ΧΑ κατά 10% τουλάχιστον (όταν όλοι υποστήριζαν ότι θα ενισχυθεί το ΧΑ) επανέρχεται και τονίζει ότι « ως επενδυτικός οίκος στα τρέχοντα επίπεδα θα πρέπει να αρχίζουμε να βλέπουμε αγορές ωστόσο απαιτείται προσοχή και όχι υπερβολές.
Ίσως βραχυπρόθεσμα η αγορά κινηθεί προς την περιοχή των 4.800 μονάδων και στα επίπεδα των 4.400 με 4800 μονάδων να παραμείνει για κάποιο διάστημα. Εκτίμηση μας είναι ότι το ΧΑ μπορεί σε εύθετο χρόνο να υποχωρήσει και κάτω από τις 4.300 μονάδες ωστόσο στο τέλος του 2008 δεν μπορούμε να αποκλείσουμε τελικά το ΧΑ να έχει ανέλθει στις 5500 μονάδες δηλαδή 1000 μονάδες υψηλότερα από τα τρέχοντα επίπεδα ή 20 με 22% υψηλότερα».
Το μπαράζ των ρευστοποιήσεων στις μεγάλες τράπεζες ήταν δικαιολογημένο; «Είναι σαφές ότι οι ελληνικές τράπεζες εμφάνισαν πολύ καλή συμπεριφορά το προηγούμενο διάστημα και προσέφεραν μεγάλες αποδόσεις. Είναι εύλογο funds να ρευστοποιούν».
Απώλειες 10 δις ευρώ στις τράπεζες
Συνολικά οι τράπεζες απώλεσαν περίπου 10 δις ευρώ τις δύο τελευταίες εβδομάδες. Στην δίνη βρέθηκαν η Πειραιώς η Eurobank η Alpha bank, η ΕΤΕ, το ΤΤ ωστόσο στο αντίποδα η ΑΤΕ αποδείχθηκε ίσως το πιο αμυντικό χαρτί μεταξύ των τραπεζών επιδεικνύοντας την καλύτερη συμπεριφορά.
Η αιτιολογία για την συμπεριφορά της ΑΤΕ είναι απλή. Οι ξένοι ελέγχουν μόνο το 10% ενώ το free float είναι περιορισμένο. Ταυτόχρονα όμως είναι αξιοσημείωτο ότι η ATE είναι μια από τις ελάχιστες τράπεζες στο ΧΑ που δεν προβαίνει σε επαναγορά ιδίων μετοχών.
Υπάρχουν επενδυτικές ευκαιρίες;
Οι τράπεζες που υποχώρησαν περισσότερο αναμένεται να αντιδράσουν και πιο άμεσα και πιο έντονα.
Η Πειραιώς έχασε 2 δις ευρώ σε κεφαλαιοποίηση η Eurobank αντίστοιχα 2 δις ευρώ όπως και η Εθνική η Marfin Popular και η Κύπρου από 1 δις ευρώ. Είναι πιθανό μαζί με την ΑΤΕ οι μετοχές αυτές να αντιδράσουν το επόμενο διάστημα και να συγκεντρώσουν το μεγαλύτερο ποσοστό κεφαλαίων.
REPORTER.GR
«Στα τρέχοντα επίπεδα ή το πολύ κοντά στις 4300 με 4400 μονάδες το ελληνικό χρηματιστήριο και ειδικά οι τράπεζες αποτελούν ευκαιρία για τοποθετήσεις» τονίζει κορυφαίο στέλεχος της Citigroup στο «R». To στέλεχος αυτό το οποίο επιβεβαιώθηκε πλήρως στις προβλέψεις του όταν έκανε λόγω για υποχώρηση του ΧΑ κατά 10% τουλάχιστον (όταν όλοι υποστήριζαν ότι θα ενισχυθεί το ΧΑ) επανέρχεται και τονίζει ότι « ως επενδυτικός οίκος στα τρέχοντα επίπεδα θα πρέπει να αρχίζουμε να βλέπουμε αγορές ωστόσο απαιτείται προσοχή και όχι υπερβολές.
Ίσως βραχυπρόθεσμα η αγορά κινηθεί προς την περιοχή των 4.800 μονάδων και στα επίπεδα των 4.400 με 4800 μονάδων να παραμείνει για κάποιο διάστημα. Εκτίμηση μας είναι ότι το ΧΑ μπορεί σε εύθετο χρόνο να υποχωρήσει και κάτω από τις 4.300 μονάδες ωστόσο στο τέλος του 2008 δεν μπορούμε να αποκλείσουμε τελικά το ΧΑ να έχει ανέλθει στις 5500 μονάδες δηλαδή 1000 μονάδες υψηλότερα από τα τρέχοντα επίπεδα ή 20 με 22% υψηλότερα».
Το μπαράζ των ρευστοποιήσεων στις μεγάλες τράπεζες ήταν δικαιολογημένο; «Είναι σαφές ότι οι ελληνικές τράπεζες εμφάνισαν πολύ καλή συμπεριφορά το προηγούμενο διάστημα και προσέφεραν μεγάλες αποδόσεις. Είναι εύλογο funds να ρευστοποιούν».
Απώλειες 10 δις ευρώ στις τράπεζες
Συνολικά οι τράπεζες απώλεσαν περίπου 10 δις ευρώ τις δύο τελευταίες εβδομάδες. Στην δίνη βρέθηκαν η Πειραιώς η Eurobank η Alpha bank, η ΕΤΕ, το ΤΤ ωστόσο στο αντίποδα η ΑΤΕ αποδείχθηκε ίσως το πιο αμυντικό χαρτί μεταξύ των τραπεζών επιδεικνύοντας την καλύτερη συμπεριφορά.
Η αιτιολογία για την συμπεριφορά της ΑΤΕ είναι απλή. Οι ξένοι ελέγχουν μόνο το 10% ενώ το free float είναι περιορισμένο. Ταυτόχρονα όμως είναι αξιοσημείωτο ότι η ATE είναι μια από τις ελάχιστες τράπεζες στο ΧΑ που δεν προβαίνει σε επαναγορά ιδίων μετοχών.
Υπάρχουν επενδυτικές ευκαιρίες;
Οι τράπεζες που υποχώρησαν περισσότερο αναμένεται να αντιδράσουν και πιο άμεσα και πιο έντονα.
Η Πειραιώς έχασε 2 δις ευρώ σε κεφαλαιοποίηση η Eurobank αντίστοιχα 2 δις ευρώ όπως και η Εθνική η Marfin Popular και η Κύπρου από 1 δις ευρώ. Είναι πιθανό μαζί με την ΑΤΕ οι μετοχές αυτές να αντιδράσουν το επόμενο διάστημα και να συγκεντρώσουν το μεγαλύτερο ποσοστό κεφαλαίων.
REPORTER.GR
Μπερνάνκι: Το μπαλάκι στην κυβέρνηση Μπους
Μπερνάνκι: Το μπαλάκι στην κυβέρνηση Μπους
Aυτό που ήθελαν να ακούσουν οι αγορές επανέλαβε σήμερα ο διοικητής της Fed κ. Μπεν Μπερνάνκι ενώπιον του Κονγκρέσου. Ποιο είναι αυτό; Ότι η Κεντρική Τράπεζα των Ηνωμένων Πολιτειών είναι έτοιμη να μειώσει κι άλλο τα επιτόκια. Πλην όμως, κάλεσε την κυβέρνηση Μπους να πάρει μέτρα για να θωρακίσει την οικονομία.
''Η Fed είναι έτοιμη να προβεί σε περαιτέρω μείωση του επιτοκίου δανεισμού του δολαρίου'' επανέλαβε στην ομιλία του ενώπιον του Κογκρέσου ο πρόεδρος της Fed Μπ. Μπερνάκι σήμερα, μεταθέτοντας παράλληλα τις ευθύνες για την ανάκαμψη της αμερικανικής οικονομίας στην αμερικανική κυβέρνηση.
Oπως δήλωσε ο πρόεδρος της αμερικανικής κεντρικής τράπεζας, η κυβέρνηση Μπους θα πρέπει να δράσει άμεσα για να προστατέψει τους καταναλωτές καθώς ενισχύονται οι φόβοι για οικονομική ύφεση. Ο κος Μπερνάκι κάλεσε το Κογκρέσο να σκεφτεί σοβαρά πριν προβεί σε περικοπές φόρων με σκοπό να ενισχύσει την κατάσταση.
«Για να είναι χρήσιμο ένα σχέδιο τόνωσης της οικονομίας θα πρέπει να υλοποιηθεί άμεσα και οργανωμένα έτσι ώστε τα αποτελέσματά του να γίνουν αισθητά μέσα στους επόμενους δώδεκα μήνες», τόνισε ο αξιωματούχος της Fed.
REPORTER.GR
Aυτό που ήθελαν να ακούσουν οι αγορές επανέλαβε σήμερα ο διοικητής της Fed κ. Μπεν Μπερνάνκι ενώπιον του Κονγκρέσου. Ποιο είναι αυτό; Ότι η Κεντρική Τράπεζα των Ηνωμένων Πολιτειών είναι έτοιμη να μειώσει κι άλλο τα επιτόκια. Πλην όμως, κάλεσε την κυβέρνηση Μπους να πάρει μέτρα για να θωρακίσει την οικονομία.
''Η Fed είναι έτοιμη να προβεί σε περαιτέρω μείωση του επιτοκίου δανεισμού του δολαρίου'' επανέλαβε στην ομιλία του ενώπιον του Κογκρέσου ο πρόεδρος της Fed Μπ. Μπερνάκι σήμερα, μεταθέτοντας παράλληλα τις ευθύνες για την ανάκαμψη της αμερικανικής οικονομίας στην αμερικανική κυβέρνηση.
Oπως δήλωσε ο πρόεδρος της αμερικανικής κεντρικής τράπεζας, η κυβέρνηση Μπους θα πρέπει να δράσει άμεσα για να προστατέψει τους καταναλωτές καθώς ενισχύονται οι φόβοι για οικονομική ύφεση. Ο κος Μπερνάκι κάλεσε το Κογκρέσο να σκεφτεί σοβαρά πριν προβεί σε περικοπές φόρων με σκοπό να ενισχύσει την κατάσταση.
«Για να είναι χρήσιμο ένα σχέδιο τόνωσης της οικονομίας θα πρέπει να υλοποιηθεί άμεσα και οργανωμένα έτσι ώστε τα αποτελέσματά του να γίνουν αισθητά μέσα στους επόμενους δώδεκα μήνες», τόνισε ο αξιωματούχος της Fed.
REPORTER.GR
Εξαγορά στην Τουρκία η Τιτάν
Εξαγορά στην Τουρκία η Τιτάν
Στη σύναψη συμφωνίας για τη δημιουργία μιας κοινοπρακτικής επιχείρησης στην Τουρκία, στην οποία θα συμμετέχει με ποσοστό 50% προβαίνει η Τιτάν. Στα πλαίσια αυτής της συμφωνίας, η Α.Ε. Τσιμέντων Τιτάν συμφώνησε να αγοράσει το 50% του μετοχικού κεφαλαίου της εταιρίας Adocim Cimento Beton Sanayi ve Ticaret A.S. έναντι 90,5 εκατομμυρίων ευρώ. Η Adocim είναι εταιρία παραγωγής τσιμέντου με ένα σύγχρονο εργοστάσιο στο Tokat στην περιοχή της Μαύρης Θάλασσας και ένα κέντρο άλεσης στο Tekirdag στην περιοχή της Ανατολικής Θράκης.
Η παραγωγική δυναμικότητα της εν λόγω εταιρίας ανέρχεται σε 1,5 εκατ. τόνων ετησίως. Η σχετική συμφωνία θα τεθεί σε ισχύ, μόλις ολοκληρωθεί ο νομικός και οικονομικός έλεγχος της Adocim A.S. και παρασχεθούν οι απαραίτητες εγκρίσεις από τις αρμόδιες διοικητικές αρχές.
Ο Όμιλος Τιτάν είναι ένας ανεξάρτητος παραγωγός τσιμέντου και άλλων δομικών υλικών με πάνω από 100 χρόνια βιομηχανικής εμπειρίας. Έχοντας έδρα την Ελλάδα, διαθέτει 12 εργοστάσια παραγωγής τσιμέντου σε 7 χώρες. Καθ' όλη την διάρκεια της ιστορίας του, ο Όμιλος Τιτάν επδίωξε να συνδυάσει την λειτουργική αρτιότητα με τον σεβασμό στον άνθρωπο, την κοινωνία και το περιβάλλον.
Το 2007 πούλησε πάνω από 16 εκ. τόνους τσιμέντου και υλικών με παρεμφερείς ιδιότητες, 6 εκ. μ3 ετοίμου σκυροδέματος, περισσότερο από 22 εκ. τόνους αδρανών υλικών και διάφορα ακόμη οικοδομικά υλικά όπως τσιμεντόλιθους, έτοιμα κονιάματα κλπ.
REPORTER.GR
Στη σύναψη συμφωνίας για τη δημιουργία μιας κοινοπρακτικής επιχείρησης στην Τουρκία, στην οποία θα συμμετέχει με ποσοστό 50% προβαίνει η Τιτάν. Στα πλαίσια αυτής της συμφωνίας, η Α.Ε. Τσιμέντων Τιτάν συμφώνησε να αγοράσει το 50% του μετοχικού κεφαλαίου της εταιρίας Adocim Cimento Beton Sanayi ve Ticaret A.S. έναντι 90,5 εκατομμυρίων ευρώ. Η Adocim είναι εταιρία παραγωγής τσιμέντου με ένα σύγχρονο εργοστάσιο στο Tokat στην περιοχή της Μαύρης Θάλασσας και ένα κέντρο άλεσης στο Tekirdag στην περιοχή της Ανατολικής Θράκης.
Η παραγωγική δυναμικότητα της εν λόγω εταιρίας ανέρχεται σε 1,5 εκατ. τόνων ετησίως. Η σχετική συμφωνία θα τεθεί σε ισχύ, μόλις ολοκληρωθεί ο νομικός και οικονομικός έλεγχος της Adocim A.S. και παρασχεθούν οι απαραίτητες εγκρίσεις από τις αρμόδιες διοικητικές αρχές.
Ο Όμιλος Τιτάν είναι ένας ανεξάρτητος παραγωγός τσιμέντου και άλλων δομικών υλικών με πάνω από 100 χρόνια βιομηχανικής εμπειρίας. Έχοντας έδρα την Ελλάδα, διαθέτει 12 εργοστάσια παραγωγής τσιμέντου σε 7 χώρες. Καθ' όλη την διάρκεια της ιστορίας του, ο Όμιλος Τιτάν επδίωξε να συνδυάσει την λειτουργική αρτιότητα με τον σεβασμό στον άνθρωπο, την κοινωνία και το περιβάλλον.
Το 2007 πούλησε πάνω από 16 εκ. τόνους τσιμέντου και υλικών με παρεμφερείς ιδιότητες, 6 εκ. μ3 ετοίμου σκυροδέματος, περισσότερο από 22 εκ. τόνους αδρανών υλικών και διάφορα ακόμη οικοδομικά υλικά όπως τσιμεντόλιθους, έτοιμα κονιάματα κλπ.
REPORTER.GR
Bernanke Says Fiscal Stimulus `Could Be Helpful in Principle'
Bernanke Says Fiscal Stimulus `Could Be Helpful in Principle'
Jan. 17 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said a ``temporary'' fiscal stimulus would help the central bank to buttress economic growth, while warning against worsening the longer-term outlook for budget deficits.
``Fiscal action could be helpful in principle, as fiscal and monetary stimulus together may provide broader support for the economy than monetary policy actions alone,'' Bernanke said in testimony to the House Budget Committee. He repeated remarks from last week that the Fed is ready to take ``substantive additional action'' to insure against risks of a recession.
Bernanke's acknowledgment that the economy is weak enough to need a fiscal stimulus may reinforce forecasts for the Fed to lower interest rates at least half a point this month. It may also give impetus to the Bush administration and Congress to reach an agreement more quickly, analysts said.
The Fed chief said that a fiscal package could also ``prove quite counterproductive'' if the stimulus arrived at the ``wrong time or compromised fiscal discipline in the longer term.''
Bernanke reiterated that the outlook for growth in 2008 ``has worsened'' and ``the downside risks to growth have become more pronounced.''
Central bankers and administration officials are trying to prevent the economy from sinking into the first recession since 2001. Retail sales fell last month, unemployment rose, and housing markets are mired in the worst slump in 16 years.
Bernanke noted that banks are trying to protect asset quality and funding, and tightening credit conditions for the rest of the economy as a result.
Bank Lending
``Banks have also evidently become more restrictive in their lending to firms and households,'' he said. ``More expensive and less-available credit seems likely to impose a measure of restraint on economic growth.''
Homebuilders broke ground on the fewest homes since 1991 last month, the Commerce Department reported today. Building permits, a sign of future construction, declined by the most in 12 years, suggesting the housing slump will deepen.
Residential construction subtracted about 1 percent from growth in the third quarter, and ``likely curtailed growth even more in the fourth quarter,'' Bernanke said. Sluggish housing markets ``may continue to be a drag on growth for a good part of this year.''
Food, Energy Costs
Bernanke said that inflation, both including and excluding food and energy costs, ``should moderate this year and next, so long as the public's confidence in the Federal Reserve's commitment to price stability is unshaken.'' He cited inflation expectations that appear ``well anchored'' and futures suggesting food and energy price increases will slow.
Bernanke in past congressional appearances has typically avoided recommending any particular tax measure. His predecessor, Alan Greenspan, involved himself in shaping tax policy, recommending cuts over spending increases in 2001, a strategy which his colleagues disliked out of concern it would compromise the central bank's independence.
Aside from quick implementation, a stimulus package should also be ``structured so that its effects on aggregate spending are felt as much as possible in the next 12 months,'' Bernanke said today. If stimulus comes at a time when growth is improving, it could be ``destabilizing,'' he said.
U.S. Treasury and White House officials are considering tax proposals that would provide consumers with more cash and give businesses an incentive to invest more in their capital stock, according to analysts speaking with administration officials.
Faltering Expansion
Economists at JPMorgan Chase & Co. estimate that the economy grew at 1 percent in the final quarter of last year, slowing from a 4.9 percent pace the previous three months. Merrill Lynch & Co., Morgan Stanley, Goldman Sachs Group Inc. and Nomura Securities International Inc. are all predicting a recession in 2008.
Bernanke and Governor Frederic Mishkin signaled a new strategy last week, when they said in speeches that they favor greater ``insurance'' against the prospect of an economic downturn. That's a break from basing policy on central bank forecasts, which anticipate a continued expansion.
The Jan. 10 remarks by Bernanke, 54, and Mishkin the next day led traders to increase bets the central bank will cut its main interest rate to 3.75 percent from 4.25 percent currently at the conclusion of Federal Open Market Committee's two-day meeting on Jan. 30.
The Fed has reduced the benchmark rate by 1 percentage point since September. In December, Fed officials said in their statement that the outlook for inflation and growth was uncertain, a view that disappointed investors and caused a 2.5 percent decline in the Standard & Poor's 500 stock index.
Labor Market
Policy makers' shift may have been driven by the Labor Department's Jan. 4 report showing the jobless rate jumped to 5 percent in December, economists said. The figures also showed the first decline in private-sector employment since 2003. Bernanke called the jobs data ``disappointing.''
Bernanke and other policy makers continue to cite concerns about inflation pressures. The consumer price index, minus food and energy, rose at a 2.4 percent rate for the year ending December, the fastest pace since March, the Bureau of Labor Statistics said Wednesday.
BLOOMBERG
Jan. 17 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said a ``temporary'' fiscal stimulus would help the central bank to buttress economic growth, while warning against worsening the longer-term outlook for budget deficits.
``Fiscal action could be helpful in principle, as fiscal and monetary stimulus together may provide broader support for the economy than monetary policy actions alone,'' Bernanke said in testimony to the House Budget Committee. He repeated remarks from last week that the Fed is ready to take ``substantive additional action'' to insure against risks of a recession.
Bernanke's acknowledgment that the economy is weak enough to need a fiscal stimulus may reinforce forecasts for the Fed to lower interest rates at least half a point this month. It may also give impetus to the Bush administration and Congress to reach an agreement more quickly, analysts said.
The Fed chief said that a fiscal package could also ``prove quite counterproductive'' if the stimulus arrived at the ``wrong time or compromised fiscal discipline in the longer term.''
Bernanke reiterated that the outlook for growth in 2008 ``has worsened'' and ``the downside risks to growth have become more pronounced.''
Central bankers and administration officials are trying to prevent the economy from sinking into the first recession since 2001. Retail sales fell last month, unemployment rose, and housing markets are mired in the worst slump in 16 years.
Bernanke noted that banks are trying to protect asset quality and funding, and tightening credit conditions for the rest of the economy as a result.
Bank Lending
``Banks have also evidently become more restrictive in their lending to firms and households,'' he said. ``More expensive and less-available credit seems likely to impose a measure of restraint on economic growth.''
Homebuilders broke ground on the fewest homes since 1991 last month, the Commerce Department reported today. Building permits, a sign of future construction, declined by the most in 12 years, suggesting the housing slump will deepen.
Residential construction subtracted about 1 percent from growth in the third quarter, and ``likely curtailed growth even more in the fourth quarter,'' Bernanke said. Sluggish housing markets ``may continue to be a drag on growth for a good part of this year.''
Food, Energy Costs
Bernanke said that inflation, both including and excluding food and energy costs, ``should moderate this year and next, so long as the public's confidence in the Federal Reserve's commitment to price stability is unshaken.'' He cited inflation expectations that appear ``well anchored'' and futures suggesting food and energy price increases will slow.
Bernanke in past congressional appearances has typically avoided recommending any particular tax measure. His predecessor, Alan Greenspan, involved himself in shaping tax policy, recommending cuts over spending increases in 2001, a strategy which his colleagues disliked out of concern it would compromise the central bank's independence.
Aside from quick implementation, a stimulus package should also be ``structured so that its effects on aggregate spending are felt as much as possible in the next 12 months,'' Bernanke said today. If stimulus comes at a time when growth is improving, it could be ``destabilizing,'' he said.
U.S. Treasury and White House officials are considering tax proposals that would provide consumers with more cash and give businesses an incentive to invest more in their capital stock, according to analysts speaking with administration officials.
Faltering Expansion
Economists at JPMorgan Chase & Co. estimate that the economy grew at 1 percent in the final quarter of last year, slowing from a 4.9 percent pace the previous three months. Merrill Lynch & Co., Morgan Stanley, Goldman Sachs Group Inc. and Nomura Securities International Inc. are all predicting a recession in 2008.
Bernanke and Governor Frederic Mishkin signaled a new strategy last week, when they said in speeches that they favor greater ``insurance'' against the prospect of an economic downturn. That's a break from basing policy on central bank forecasts, which anticipate a continued expansion.
The Jan. 10 remarks by Bernanke, 54, and Mishkin the next day led traders to increase bets the central bank will cut its main interest rate to 3.75 percent from 4.25 percent currently at the conclusion of Federal Open Market Committee's two-day meeting on Jan. 30.
The Fed has reduced the benchmark rate by 1 percentage point since September. In December, Fed officials said in their statement that the outlook for inflation and growth was uncertain, a view that disappointed investors and caused a 2.5 percent decline in the Standard & Poor's 500 stock index.
Labor Market
Policy makers' shift may have been driven by the Labor Department's Jan. 4 report showing the jobless rate jumped to 5 percent in December, economists said. The figures also showed the first decline in private-sector employment since 2003. Bernanke called the jobs data ``disappointing.''
Bernanke and other policy makers continue to cite concerns about inflation pressures. The consumer price index, minus food and energy, rose at a 2.4 percent rate for the year ending December, the fastest pace since March, the Bureau of Labor Statistics said Wednesday.
BLOOMBERG
U.S. Initial Jobless Claims Unexpectedly Decline
U.S. Initial Jobless Claims Unexpectedly Decline
Jan. 17 (Bloomberg) -- The number of Americans filing first-time claims for unemployment benefits unexpectedly fell to a three-month low last week, in a period when figures are typically distorted by holidays.
Initial jobless claims decreased by 21,000 to 301,000 in the week ended Jan. 12, the lowest since September, from 322,000 a week earlier, the Labor Department said today in Washington. The four-week moving average, a less volatile measure, fell to a two-month low of 328,500, from 340,250.
Record exports may be encouraging businesses to hold on to workers even as the U.S. economy weakens, economists said. Still, Labor Department warned they have difficulty adjusting for firing patterns during the holidays and getting an accurate gauge of the labor market's health.
``The job market is still tight enough that it's going to generate decent income gains for consumers,'' Julia Coronado, senior economist at Barclays Capital Inc. in New York, said before the report. ``We have seen some softening in labor market conditions, but we're still seeing job growth.''
Homebuilders broke ground on the fewest new homes since 1991 last month, the Commerce Department said separately. Housing starts fell 14 percent to an annual rate of 1.006 million.
Economists predicted claims to rise to 331,000 from the previously reported 322,000 for the week ended Jan. 5, according to the median of 33 forecasts in a Bloomberg News survey. Estimates ranged from 310,000 to 350,000.
Monthly Payrolls
Today's figures correlate with the week the government conducts its monthly payrolls survey. Employers added 18,000 workers in December, the lowest gain since 2004, and the unemployment rate jumped to 5 percent, the Labor Department said on Jan. 4. It is scheduled to release the January employment report on Feb. 1.
Some economists view the level of continuing claims as a more accurate predictor of the state of hiring. The number of people staying on benefit rolls rose to 2.751 million in the week ended Jan. 5, from 2.685 million, according to today's report.
The unemployment rate among people eligible for benefits, which tends to track the U.S. jobless rate, rose to 2.1 percent, from 2 percent.
Twenty-five states and territories reported an increase in new claims, while 28 had a decline. This data is also reported with a one-week lag.
Annual Averages
Prior to this month, filings for jobless benefits were creeping higher. Weekly claims averaged 340,000 the final two months of 2007 and 322,200 for the entire year. In 2006, claims averaged 313,000.
Weakness in the labor market, along with the faltering housing market and higher gasoline and heating costs, may already be weighing on consumer spending. Sales at U.S. retailers unexpectedly dropped in December, the Commerce Department said Jan. 15, and figures for October and November were revised downward.
``Economic pressures caused deterioration in the sales climate at the end of the year,'' National Retail Federation Chief Economist Rosalind Wells said in an e-mailed statement Jan. 15. The NRF said that day that total holiday sales by U.S. retailers climbed 3 percent, the smallest gain in five years and less than the group had forecast.
Profits Weaken
Williams-Sonoma Inc., the U.S. gourmet-cookware retailer, reduced its fourth-quarter profit forecast as holiday sales declined. The company expects further weakness in January and is anticipating an ``increasingly challenging'' 2008, Chief Executive Officer Howard Lester said in a statement.
Federal Reserve Chairman Ben S. Bernanke is scheduled to testify to the House Budget Committee at 10 a.m. today about the economic outlook. Last week, he and other central bank officials said they favored greater ``insurance'' against an economic downturn.
Economists surveyed by Bloomberg News earlier this month forecast consumer spending last quarter slowed to a 2.6 percent annual rate, from 2.8 percent in the third quarter, and will ease further to a 1.6 percent pace the first three months of this year.
Economic growth will average 1.5 percent in the first half of this year, the same as is forecast for the fourth quarter, according to the median forecast in the Bloomberg News survey.
Citigroup Inc., the largest U.S. bank, said Jan. 15 it was cutting 4,200 positions and that it had the biggest loss in its 196-year history in the fourth quarter as surging defaults on home loans forced it to write down the value of subprime- mortgage investments. The company may further reduce its staff in coming months.
``We continue to make plans'' to eliminate positions as the company considers ways to reduce expenses, Chief Executive Officer Vikram Pandit said on a conference call with analysts and investors.
BLOOMBERG
Jan. 17 (Bloomberg) -- The number of Americans filing first-time claims for unemployment benefits unexpectedly fell to a three-month low last week, in a period when figures are typically distorted by holidays.
Initial jobless claims decreased by 21,000 to 301,000 in the week ended Jan. 12, the lowest since September, from 322,000 a week earlier, the Labor Department said today in Washington. The four-week moving average, a less volatile measure, fell to a two-month low of 328,500, from 340,250.
Record exports may be encouraging businesses to hold on to workers even as the U.S. economy weakens, economists said. Still, Labor Department warned they have difficulty adjusting for firing patterns during the holidays and getting an accurate gauge of the labor market's health.
``The job market is still tight enough that it's going to generate decent income gains for consumers,'' Julia Coronado, senior economist at Barclays Capital Inc. in New York, said before the report. ``We have seen some softening in labor market conditions, but we're still seeing job growth.''
Homebuilders broke ground on the fewest new homes since 1991 last month, the Commerce Department said separately. Housing starts fell 14 percent to an annual rate of 1.006 million.
Economists predicted claims to rise to 331,000 from the previously reported 322,000 for the week ended Jan. 5, according to the median of 33 forecasts in a Bloomberg News survey. Estimates ranged from 310,000 to 350,000.
Monthly Payrolls
Today's figures correlate with the week the government conducts its monthly payrolls survey. Employers added 18,000 workers in December, the lowest gain since 2004, and the unemployment rate jumped to 5 percent, the Labor Department said on Jan. 4. It is scheduled to release the January employment report on Feb. 1.
Some economists view the level of continuing claims as a more accurate predictor of the state of hiring. The number of people staying on benefit rolls rose to 2.751 million in the week ended Jan. 5, from 2.685 million, according to today's report.
The unemployment rate among people eligible for benefits, which tends to track the U.S. jobless rate, rose to 2.1 percent, from 2 percent.
Twenty-five states and territories reported an increase in new claims, while 28 had a decline. This data is also reported with a one-week lag.
Annual Averages
Prior to this month, filings for jobless benefits were creeping higher. Weekly claims averaged 340,000 the final two months of 2007 and 322,200 for the entire year. In 2006, claims averaged 313,000.
Weakness in the labor market, along with the faltering housing market and higher gasoline and heating costs, may already be weighing on consumer spending. Sales at U.S. retailers unexpectedly dropped in December, the Commerce Department said Jan. 15, and figures for October and November were revised downward.
``Economic pressures caused deterioration in the sales climate at the end of the year,'' National Retail Federation Chief Economist Rosalind Wells said in an e-mailed statement Jan. 15. The NRF said that day that total holiday sales by U.S. retailers climbed 3 percent, the smallest gain in five years and less than the group had forecast.
Profits Weaken
Williams-Sonoma Inc., the U.S. gourmet-cookware retailer, reduced its fourth-quarter profit forecast as holiday sales declined. The company expects further weakness in January and is anticipating an ``increasingly challenging'' 2008, Chief Executive Officer Howard Lester said in a statement.
Federal Reserve Chairman Ben S. Bernanke is scheduled to testify to the House Budget Committee at 10 a.m. today about the economic outlook. Last week, he and other central bank officials said they favored greater ``insurance'' against an economic downturn.
Economists surveyed by Bloomberg News earlier this month forecast consumer spending last quarter slowed to a 2.6 percent annual rate, from 2.8 percent in the third quarter, and will ease further to a 1.6 percent pace the first three months of this year.
Economic growth will average 1.5 percent in the first half of this year, the same as is forecast for the fourth quarter, according to the median forecast in the Bloomberg News survey.
Citigroup Inc., the largest U.S. bank, said Jan. 15 it was cutting 4,200 positions and that it had the biggest loss in its 196-year history in the fourth quarter as surging defaults on home loans forced it to write down the value of subprime- mortgage investments. The company may further reduce its staff in coming months.
``We continue to make plans'' to eliminate positions as the company considers ways to reduce expenses, Chief Executive Officer Vikram Pandit said on a conference call with analysts and investors.
BLOOMBERG
Anglo May Pay $5.5 Billion for MMX Iron-Ore Assets
Anglo May Pay $5.5 Billion for MMX Iron-Ore Assets
Jan. 17 (Bloomberg) -- Anglo American Plc, the world's second-largest mining company, may pay $5.5 billion for assets from Brazilian iron-ore producer MMX Mineracao e Metalicos SA to help it supply the needs of China's booming economy.
Anglo is in discussions with Eike Batista, the controlling shareholder in Rio de Janeiro-based MMX, Anglo said today in a statement distributed by the Regulatory News Service. A new company, in which Batista currently has a 64 percent stake, will be demerged from MMX and acquired by Anglo for $361.25 a share, London-based Anglo said.
The acquisition underscores Anglo's strategy to cut its dependence on precious metals and focus on industrial commodities needed by China, the world's fastest-growing major economy. Cynthia Carroll, who became Anglo's chief executive officer in March, has sold gold, steel and paper assets and expanded in copper and iron ore to better compete with BHP Billiton Ltd., the world's largest miner.
``With resource companies making acquisitions at the top of the cycle it's very hard not to overpay,'' said Wayne McCurrie, who helps manage the equivalent of $12 billion at Momentum Group Ltd. in Johannesburg including Anglo shares. ``We are at the very top.''
In April, Anglo paid MMX and Centennial Asset Mining Fund LLC, a London-based investor, $1.15 billion for 49 percent of the Minas-Rio iron-ore project. Minas-Rio's $2.35 billion first phase will yield 26.5 million metric tons a year from the end of 2009.
Prices Triple
Contract iron-ore prices have tripled in the past five years on increased demand from China and may rise by 50 percent next year, Lehman Brothers Holdings Inc. said last month. China is the largest consumer of the steelmaking raw material. Anglo owns 65 percent of Kumba Iron Ore Ltd., Africa's largest iron- ore producer.
Anglo agreed in August to spend $1.43 billion to develop the Pebble copper deposit in Alaska in a venture with Northern Dynasty Minerals Ltd. In November, it announced a $1.7 billion expansion of its Los Bronces copper mine in Chile, and in June paid $400 million for the right to develop the Michiquillay copper deposit in Peru.
BLOOMBERG
Jan. 17 (Bloomberg) -- Anglo American Plc, the world's second-largest mining company, may pay $5.5 billion for assets from Brazilian iron-ore producer MMX Mineracao e Metalicos SA to help it supply the needs of China's booming economy.
Anglo is in discussions with Eike Batista, the controlling shareholder in Rio de Janeiro-based MMX, Anglo said today in a statement distributed by the Regulatory News Service. A new company, in which Batista currently has a 64 percent stake, will be demerged from MMX and acquired by Anglo for $361.25 a share, London-based Anglo said.
The acquisition underscores Anglo's strategy to cut its dependence on precious metals and focus on industrial commodities needed by China, the world's fastest-growing major economy. Cynthia Carroll, who became Anglo's chief executive officer in March, has sold gold, steel and paper assets and expanded in copper and iron ore to better compete with BHP Billiton Ltd., the world's largest miner.
``With resource companies making acquisitions at the top of the cycle it's very hard not to overpay,'' said Wayne McCurrie, who helps manage the equivalent of $12 billion at Momentum Group Ltd. in Johannesburg including Anglo shares. ``We are at the very top.''
In April, Anglo paid MMX and Centennial Asset Mining Fund LLC, a London-based investor, $1.15 billion for 49 percent of the Minas-Rio iron-ore project. Minas-Rio's $2.35 billion first phase will yield 26.5 million metric tons a year from the end of 2009.
Prices Triple
Contract iron-ore prices have tripled in the past five years on increased demand from China and may rise by 50 percent next year, Lehman Brothers Holdings Inc. said last month. China is the largest consumer of the steelmaking raw material. Anglo owns 65 percent of Kumba Iron Ore Ltd., Africa's largest iron- ore producer.
Anglo agreed in August to spend $1.43 billion to develop the Pebble copper deposit in Alaska in a venture with Northern Dynasty Minerals Ltd. In November, it announced a $1.7 billion expansion of its Los Bronces copper mine in Chile, and in June paid $400 million for the right to develop the Michiquillay copper deposit in Peru.
BLOOMBERG
U.S. Housing Starts Drop to Lowest Level Since 1991
U.S. Housing Starts Drop to Lowest Level Since 1991
Jan. 17 (Bloomberg) -- Builders in the U.S. broke ground in December on fewer houses than forecast, making last year's decline in homebuilding the worst in almost three decades.
The 14 percent decrease to an annual rate of 1.006 million, the lowest since 1991, followed a 1.173 million pace the prior month, the Commerce Department said today in Washington. For all of 2007, starts were down 25 percent, the biggest decline since 1980, to 1.354 million.
Building permits, a sign of future construction, declined by the most in 12 years, suggesting the housing slump will deepen as it enters a third year. Rising foreclosures will throw even more houses onto the market, hurting property values and threatening to push the economy into recession, economists said.
``Housing is getting punished by credit-market problems just as much as the economy is,'' said Adam York, an economist at Wachovia Corp. in Charlotte, North Carolina, who had forecast a decline to a 1.07 million pace. ``We expect this pressure to continue into 2008.''
Initial claims for unemployment insurance unexpectedly dropped to a three-month low, the Labor Department said separately today. Jobless claims declined by 21,000 to 301,000 in the week ended Jan. 12.
Economists' Forecasts
Housing starts were projected to fall to a 1.145 million pace from a previously reported 1.187 million rate in November, according to the median forecast of 74 economists polled by Bloomberg News. Estimates ranged from 1.05 million to 1.2 million.
Permits fell 8.1 percent to a 1.068 million annual rate, bringing 2007's decline to 25 percent, the biggest since 1974. Permits were forecast to drop to a 1.135 million annual pace, according to the survey median, after 1.162 million. Projections ranged from 1.05 million to 1.17 million.
Construction of single-family homes decreased 2.9 percent to a 794,000 rate, today's report showed. Work on multifamily homes, such as townhouses and apartment buildings, plunged 40 percent to an annual rate of 212,000 from the prior month.
The decrease in starts was led by a 31 percent slump in the Midwest and a 26 percent decline in the Northeast.
Federal Reserve policy makers, including Chairman Ben S. Bernanke, have signaled they may take more aggressive action in response to the increasing risk of slower growth. Central bankers are likely to cut interest rates by half a percentage point when they meet this month, according to futures trading.
Bernanke to Speak
Bernanke will testify on the economic outlook before the House Budget Committee at 10:00 a.m. today.
``The demand for housing seems to have weakened further, in part reflecting ongoing problems in mortgage markets,'' Bernanke said in a speech in Washington on Jan. 10. ``We also see considerable evidence that banks have become more restrictive in their lending to firms and households.''
New home sales will probably fall another 15 percent this year after tumbling an estimated 26 percent in 2007, according to a forecast from the Mortgage Bankers Association, the industry's largest trade group. Sales of existing homes will fall 13 percent this year, the group said.
``Conditions continue to be challenging in our markets and are expected to remain so throughout 2008,'' Robert Schottenstein, chief executive officer of M/I Homes Inc., a homebuilder in the Midwest, Florida and Mid-Atlantic states, said in a statement on Jan. 10. The Columbus, Ohio-based company said that sales fell in the fourth quarter.
BLOOMBERG
Jan. 17 (Bloomberg) -- Builders in the U.S. broke ground in December on fewer houses than forecast, making last year's decline in homebuilding the worst in almost three decades.
The 14 percent decrease to an annual rate of 1.006 million, the lowest since 1991, followed a 1.173 million pace the prior month, the Commerce Department said today in Washington. For all of 2007, starts were down 25 percent, the biggest decline since 1980, to 1.354 million.
Building permits, a sign of future construction, declined by the most in 12 years, suggesting the housing slump will deepen as it enters a third year. Rising foreclosures will throw even more houses onto the market, hurting property values and threatening to push the economy into recession, economists said.
``Housing is getting punished by credit-market problems just as much as the economy is,'' said Adam York, an economist at Wachovia Corp. in Charlotte, North Carolina, who had forecast a decline to a 1.07 million pace. ``We expect this pressure to continue into 2008.''
Initial claims for unemployment insurance unexpectedly dropped to a three-month low, the Labor Department said separately today. Jobless claims declined by 21,000 to 301,000 in the week ended Jan. 12.
Economists' Forecasts
Housing starts were projected to fall to a 1.145 million pace from a previously reported 1.187 million rate in November, according to the median forecast of 74 economists polled by Bloomberg News. Estimates ranged from 1.05 million to 1.2 million.
Permits fell 8.1 percent to a 1.068 million annual rate, bringing 2007's decline to 25 percent, the biggest since 1974. Permits were forecast to drop to a 1.135 million annual pace, according to the survey median, after 1.162 million. Projections ranged from 1.05 million to 1.17 million.
Construction of single-family homes decreased 2.9 percent to a 794,000 rate, today's report showed. Work on multifamily homes, such as townhouses and apartment buildings, plunged 40 percent to an annual rate of 212,000 from the prior month.
The decrease in starts was led by a 31 percent slump in the Midwest and a 26 percent decline in the Northeast.
Federal Reserve policy makers, including Chairman Ben S. Bernanke, have signaled they may take more aggressive action in response to the increasing risk of slower growth. Central bankers are likely to cut interest rates by half a percentage point when they meet this month, according to futures trading.
Bernanke to Speak
Bernanke will testify on the economic outlook before the House Budget Committee at 10:00 a.m. today.
``The demand for housing seems to have weakened further, in part reflecting ongoing problems in mortgage markets,'' Bernanke said in a speech in Washington on Jan. 10. ``We also see considerable evidence that banks have become more restrictive in their lending to firms and households.''
New home sales will probably fall another 15 percent this year after tumbling an estimated 26 percent in 2007, according to a forecast from the Mortgage Bankers Association, the industry's largest trade group. Sales of existing homes will fall 13 percent this year, the group said.
``Conditions continue to be challenging in our markets and are expected to remain so throughout 2008,'' Robert Schottenstein, chief executive officer of M/I Homes Inc., a homebuilder in the Midwest, Florida and Mid-Atlantic states, said in a statement on Jan. 10. The Columbus, Ohio-based company said that sales fell in the fourth quarter.
BLOOMBERG
ΧΑΚ: Ζημιές 15% σε δύο βδομάδες
ΧΑΚ: Ζημιές 15% σε δύο βδομάδες
Οι διεθνείς αναταράξεις στις αγορές επηρεάζουν το κυπριακό χρηματιστήριο που βρέθηκε από τις αρχές του έτους σε ντόμινο ρευστοποιήσεων. Σε δύο μόλις βδομάδες ο ΓΔ τιμών ΧΑΚ χάνει 15,2% από την αξία του. Χθες έκλεισε στις 4.086,58 μονάδες στο χαμηλότερο επίπεδο των τελευταίων δέκα μηνών, συγκεκριμένα από τις 16 Μαρτίου 2007. Από τα ιστορικά ψηλά της 31ης Οκτωβρίου του 2007, ο ΓΔ του ΧΑΚ χάνει 25,9% από την αξία του.
Έντονες πιέσεις δέχονται οι τράπεζες κυρίως λόγω των ρευστοποιήσεων ξένων θεσμικών επενδυτών και των ανησυχιών για τα μελλοντικά τους κέρδη. Η Τράπεζα Κύπρου έκλεισε χθες στο ΧΑΚ στα €10,60 με ζημιές 5,86% και τζίρο €3,8 εκ. και στο ΧΑ στα €10,50 με πτώση 6,58%. Από τις αρχές του έτους, η Τρ. Κύπρου χάνει 14,9% ενώ από τα ιστορικά ψηλά των €13,78 υποχωρεί κατά 23,1%.
Η Marfin Popular έκλεισε χθες στα €7,60 στο ΧΑΚ με πτώση 2,56% και όγκο €4,5 εκ. και στο ΧΑ στα €7,60 με απώλειες 3,06%. Από τις αρχές του χρόνου, η MPB βλέπει την τιμή της μετοχής της να υποχωρεί κατά 16,7%, ενώ οι απώλειες της από τα ιστορικά ψηλά των €11,18 ανέρχονται στο 32%.
Η Ελληνική Τράπεζα υποχώρησε χθες στα €3,84 με πτώση 5,88% και τζίρο €4,4 εκ. Η HB χάνει από τις αρχές του 2008 16,5%, ενώ από τα ιστορικά ψηλά της υποχωρεί κατά 31,9%.
Οι περισσότερες εταιρείες της κύριας αγοράς παρουσιάζουν απώλειες από τις αρχές του χρόνου, πλην των εταιρειών Ζορπάς, Muskita και Vision για τις οποίες δεν υπήρξε μεταβολή στην τιμή της μετοχής τους.
Σύμφωνα με τους αναλυτές, οι απώλειες των τραπεζών αποδίδονται στο κύμα ρευστοποιήσεων των ξένων θεσμικών. Στο αρνητικό κλίμα που επηρέασε τον τραπεζικό κλάδο συνέτειναν τα αποτελέσματα της Citigroup αλλά και της JP Morgan. Η Citigroup ανακοίνωσε απώλειες ύψους $9,83 δισ. και διαγραφές ζημιών $18,1 δισ. Τα κέρδη της JP Morgan μειώθηκαν κατά 34% το τέταρτο τρίμηνο λόγω διαγραφών ύψους $1,3 δισ., εξαιτίας της έκθεσης της τράπεζας σε προϊόντα subprime.
STOCKWATCH.COM.CY
Οι διεθνείς αναταράξεις στις αγορές επηρεάζουν το κυπριακό χρηματιστήριο που βρέθηκε από τις αρχές του έτους σε ντόμινο ρευστοποιήσεων. Σε δύο μόλις βδομάδες ο ΓΔ τιμών ΧΑΚ χάνει 15,2% από την αξία του. Χθες έκλεισε στις 4.086,58 μονάδες στο χαμηλότερο επίπεδο των τελευταίων δέκα μηνών, συγκεκριμένα από τις 16 Μαρτίου 2007. Από τα ιστορικά ψηλά της 31ης Οκτωβρίου του 2007, ο ΓΔ του ΧΑΚ χάνει 25,9% από την αξία του.
Έντονες πιέσεις δέχονται οι τράπεζες κυρίως λόγω των ρευστοποιήσεων ξένων θεσμικών επενδυτών και των ανησυχιών για τα μελλοντικά τους κέρδη. Η Τράπεζα Κύπρου έκλεισε χθες στο ΧΑΚ στα €10,60 με ζημιές 5,86% και τζίρο €3,8 εκ. και στο ΧΑ στα €10,50 με πτώση 6,58%. Από τις αρχές του έτους, η Τρ. Κύπρου χάνει 14,9% ενώ από τα ιστορικά ψηλά των €13,78 υποχωρεί κατά 23,1%.
Η Marfin Popular έκλεισε χθες στα €7,60 στο ΧΑΚ με πτώση 2,56% και όγκο €4,5 εκ. και στο ΧΑ στα €7,60 με απώλειες 3,06%. Από τις αρχές του χρόνου, η MPB βλέπει την τιμή της μετοχής της να υποχωρεί κατά 16,7%, ενώ οι απώλειες της από τα ιστορικά ψηλά των €11,18 ανέρχονται στο 32%.
Η Ελληνική Τράπεζα υποχώρησε χθες στα €3,84 με πτώση 5,88% και τζίρο €4,4 εκ. Η HB χάνει από τις αρχές του 2008 16,5%, ενώ από τα ιστορικά ψηλά της υποχωρεί κατά 31,9%.
Οι περισσότερες εταιρείες της κύριας αγοράς παρουσιάζουν απώλειες από τις αρχές του χρόνου, πλην των εταιρειών Ζορπάς, Muskita και Vision για τις οποίες δεν υπήρξε μεταβολή στην τιμή της μετοχής τους.
Σύμφωνα με τους αναλυτές, οι απώλειες των τραπεζών αποδίδονται στο κύμα ρευστοποιήσεων των ξένων θεσμικών. Στο αρνητικό κλίμα που επηρέασε τον τραπεζικό κλάδο συνέτειναν τα αποτελέσματα της Citigroup αλλά και της JP Morgan. Η Citigroup ανακοίνωσε απώλειες ύψους $9,83 δισ. και διαγραφές ζημιών $18,1 δισ. Τα κέρδη της JP Morgan μειώθηκαν κατά 34% το τέταρτο τρίμηνο λόγω διαγραφών ύψους $1,3 δισ., εξαιτίας της έκθεσης της τράπεζας σε προϊόντα subprime.
STOCKWATCH.COM.CY
Merrill reports $10 billion loss
Merrill reports $10 billion loss
Nation's largest brokerage also takes $11.5 billion writedown on debt, subprime mortgages.
NEW YORK (CNNMoney.com) -- Merrill Lynch reported a quarterly operating loss of over $10 billion Thursday that was much worse than expected, and the company also announced an $11.5 billion writedown related to the subprime crisis.
Merrill (MER, Fortune 500) shares lost 1.8 percent in pre-market trading on the news.
For the quarter, Merrill posted a loss from continuing operations of $10.3 billion, or $12.57 a share. In the year-earlier period, Merrill reported a net profit of $2.3 billion, or $2.41 a share, on the same basis.
The results were far worse than anticipated. Merrill was expected to report a net loss of $4.57 a share on revenue of $702.1 million, according to analysts polled by earnings tracker Thomson Financial.
Merrill, the nation's largest brokerage, also said it would write down $11.5 billion on its collateralized debt obligations and subprime residential mortgages.
Prior to Merril's announcement, there had been intense speculation that the company could writedown as much as $15 billion during the quarter.
Merrill's results cap a particularly busy week for the financial services sector. Earlier this week, Citigroup (C, Fortune 500) recorded a $9.8 billion loss and took an $18.1 billion writedown on its subprime positions. Both JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) fared markedly better even though profit fell by more than a third each.
Seattle-based Washington Mutual (WM, Fortune 500) is due to report its fourth-quarter results after the closing bell Thursday.
CNN
Nation's largest brokerage also takes $11.5 billion writedown on debt, subprime mortgages.
NEW YORK (CNNMoney.com) -- Merrill Lynch reported a quarterly operating loss of over $10 billion Thursday that was much worse than expected, and the company also announced an $11.5 billion writedown related to the subprime crisis.
Merrill (MER, Fortune 500) shares lost 1.8 percent in pre-market trading on the news.
For the quarter, Merrill posted a loss from continuing operations of $10.3 billion, or $12.57 a share. In the year-earlier period, Merrill reported a net profit of $2.3 billion, or $2.41 a share, on the same basis.
The results were far worse than anticipated. Merrill was expected to report a net loss of $4.57 a share on revenue of $702.1 million, according to analysts polled by earnings tracker Thomson Financial.
Merrill, the nation's largest brokerage, also said it would write down $11.5 billion on its collateralized debt obligations and subprime residential mortgages.
Prior to Merril's announcement, there had been intense speculation that the company could writedown as much as $15 billion during the quarter.
Merrill's results cap a particularly busy week for the financial services sector. Earlier this week, Citigroup (C, Fortune 500) recorded a $9.8 billion loss and took an $18.1 billion writedown on its subprime positions. Both JPMorgan Chase (JPM, Fortune 500) and Wells Fargo (WFC, Fortune 500) fared markedly better even though profit fell by more than a third each.
Seattle-based Washington Mutual (WM, Fortune 500) is due to report its fourth-quarter results after the closing bell Thursday.
CNN
Marfin: Πώληση της Egnatia (Cyprus) στη Laiki Inv. προς €4,92 εκ.
Marfin: Πώληση της Egnatia (Cyprus) στη Laiki Inv. προς €4,92 εκ.
Η MARFIN POPULAR BANK PUBLIC CO LTD ανακοινώνει ότι έχει συμφωνηθεί η πώληση του 100% του μετοχικού κεφαλαίου της ΚΕΠΕΥ Egnatia Financial Services (Cyprus) Limited στη Λαϊκή Επενδυτική Ε.Π.Ε.Υ. Δημόσια Εταιρεία Λίμιτεδ. Η πώληση θα γίνει σε μετρητά στην ίδια τιμή που η Marfin Popular Bank είχε αγοράσει την Egnatia Financial Services (Cyprus) Limited από τους προηγούμενους της μετόχους, δηλαδή £2.882.000 / €4.924.189,35. Η συναλλαγή γίνεται σε καθαρά εμπορική βάση και δεν περιλαμβάνει υπεραξία.
STOCKWATCH.COM.CY
Η MARFIN POPULAR BANK PUBLIC CO LTD ανακοινώνει ότι έχει συμφωνηθεί η πώληση του 100% του μετοχικού κεφαλαίου της ΚΕΠΕΥ Egnatia Financial Services (Cyprus) Limited στη Λαϊκή Επενδυτική Ε.Π.Ε.Υ. Δημόσια Εταιρεία Λίμιτεδ. Η πώληση θα γίνει σε μετρητά στην ίδια τιμή που η Marfin Popular Bank είχε αγοράσει την Egnatia Financial Services (Cyprus) Limited από τους προηγούμενους της μετόχους, δηλαδή £2.882.000 / €4.924.189,35. Η συναλλαγή γίνεται σε καθαρά εμπορική βάση και δεν περιλαμβάνει υπεραξία.
STOCKWATCH.COM.CY
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Novartis Fourth-Quarter Net Drops on Job Cut Costs
Novartis Fourth-Quarter Net Drops on Job Cut Costs
Jan. 17 (Bloomberg) -- Novartis AG, Europe's third-largest drugmaker, said fourth-quarter profit fell because of costs from cutting jobs. The company will spend 10 billion Swiss francs ($9.1 billion) to buy back shares.
Net income dropped 45 percent to $904 million, or 41 cents a share, from $1.65 billion, or 67 cents, a year earlier, the Basel, Switzerland-based company said in a statement handed to reporters today. This fell short of the $1.5 billion median estimate of five analysts surveyed by Bloomberg News. Sales rose 5.7 percent to $9.9 billion, the company said.
Slowing sales pushed the drugmaker to cut 2,500 posts over the next two years to save $1.6 billion annually by 2010. The maker of the Diovan heart medicine has struggled in the last year with the delay of the potentially best-selling diabetes medicine Galvus, the withdrawal of its irritable bowel treatment Zelnorm and failure to win approval for the Prexige painkiller. It's also facing generic competition to a number of drugs including the Lotrel heart pill.
``Growth is sluggish and Novartis has compensated that with job cuts and share buy-backs, but it would be nice to see some top-line growth,'' Andrew Fellows, an analyst with Helvea in London said in an interview before the release.
Novartis, which also makes the Gleevec leukemia medicine, said in December it would take a restructuring charge of $450 million. It also said the fourth quarter and the first half of 2008 would be affected by a ``strong negative impact'' from its U.S. drug unit.
The Swiss drugmaker's shares fell 12 percent in 2007, making it the third-worst-performing stock on the Bloomberg Europe Pharmaceutical Index. Novartis fell 50 centimes, or 0.8 percent, to 61.25 Swiss francs yesterday in Zurich.
Job Cuts
Novartis announced a first round of cuts in October, and changed the head of its pharmaceuticals unit after regulatory delays to new diabetes and hypertension treatments. Joe Jimenez now runs the drug operation, replacing Thomas Ebeling, who moved to the smaller consumer-health business.
Novartis is pushing new products on to the market to replace revenue that will be lost to generic versions of the company's older medicines when their patents end. Diovan, Novartis's best- selling drug with $1.2 billion in sales in the second quarter, loses patent protection in 2012. Tasigna, a drug to treat leukemia in patients who no longer respond to the company's best- selling cancer medicine Gleevec, was approved for sale in the U.S. in October and in Europe the following month.
BLOOMBERG
Jan. 17 (Bloomberg) -- Novartis AG, Europe's third-largest drugmaker, said fourth-quarter profit fell because of costs from cutting jobs. The company will spend 10 billion Swiss francs ($9.1 billion) to buy back shares.
Net income dropped 45 percent to $904 million, or 41 cents a share, from $1.65 billion, or 67 cents, a year earlier, the Basel, Switzerland-based company said in a statement handed to reporters today. This fell short of the $1.5 billion median estimate of five analysts surveyed by Bloomberg News. Sales rose 5.7 percent to $9.9 billion, the company said.
Slowing sales pushed the drugmaker to cut 2,500 posts over the next two years to save $1.6 billion annually by 2010. The maker of the Diovan heart medicine has struggled in the last year with the delay of the potentially best-selling diabetes medicine Galvus, the withdrawal of its irritable bowel treatment Zelnorm and failure to win approval for the Prexige painkiller. It's also facing generic competition to a number of drugs including the Lotrel heart pill.
``Growth is sluggish and Novartis has compensated that with job cuts and share buy-backs, but it would be nice to see some top-line growth,'' Andrew Fellows, an analyst with Helvea in London said in an interview before the release.
Novartis, which also makes the Gleevec leukemia medicine, said in December it would take a restructuring charge of $450 million. It also said the fourth quarter and the first half of 2008 would be affected by a ``strong negative impact'' from its U.S. drug unit.
The Swiss drugmaker's shares fell 12 percent in 2007, making it the third-worst-performing stock on the Bloomberg Europe Pharmaceutical Index. Novartis fell 50 centimes, or 0.8 percent, to 61.25 Swiss francs yesterday in Zurich.
Job Cuts
Novartis announced a first round of cuts in October, and changed the head of its pharmaceuticals unit after regulatory delays to new diabetes and hypertension treatments. Joe Jimenez now runs the drug operation, replacing Thomas Ebeling, who moved to the smaller consumer-health business.
Novartis is pushing new products on to the market to replace revenue that will be lost to generic versions of the company's older medicines when their patents end. Diovan, Novartis's best- selling drug with $1.2 billion in sales in the second quarter, loses patent protection in 2012. Tasigna, a drug to treat leukemia in patients who no longer respond to the company's best- selling cancer medicine Gleevec, was approved for sale in the U.S. in October and in Europe the following month.
BLOOMBERG
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