Thursday, November 17, 2011

20111117 1803 FCPO EOD Daily Chart Study.

FCPO closed : 3212, changed : -29 points, volume : higher.
Bollinger band reading : pullback correction upside biased.
MACD Histrogram : turned lower, buyer taking profit.
Support : 3200, 3150, 3100, 3070 level.
Resistance : 3250, 3270, 3300, 3350 level.
Comment :
FCPO closed recorded loss with ultra high volume changed hand while overnight soy oil closed marginally lower and currently trading lower while crude oil price trading firmer.
Profit taking activities after recent massive rally pressed FCPO price lower having technical pullback.
Daily chart formed a down doji bar candle with upper shadow closed below upper Bollinger band level after market opened lower, edge up higher tested new 5 month high and eased lower to closed at the low of the day.
Technical reading  suggesting a pullback correction upside biased market development testing support and resistance.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20111117 1732 FKLI EOD Daily Chart Study.

FKLI closed : 1463, changed : -7 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : falling, seller testing market.
Support : 1458, 1445, 1440, 1435 level.
Resistance : 1470, 1477, 1485, 1491 level.
Comment :
FKLI closed recorded loss with slower volume participation doing about 2.5 points discount compare to cash market that closed lower. Overnight U.S. markets ended recorded loss and today Asia markets closed mostly lower while European markets currently registering loss.
European market opened and trading lower ahead of France and Spain bond sell ad investors stay sideline wacthinng closely the bond yield. Overnight Fitch rating statement on Europen contagion risk will affect U.S. banks plus above $100 crude oil price pressure most regional markets to trade lower.
Daily chart formed a doji bar candle closed below middle Bollinger band support level after market opened lower and traded range bound through out the day in negativce territory to closed at opening price.
Chart reading adjusted to suggesting a side way range bound little upside biased market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with quick cut loss and profit target.

20111117 1709 Regional Markets EOD Daily Chart Study.

  DJIA chart reading :  side way range bound little upside biased.
 Hang Seng chart reading :  side way range bound little upside biased.
KLCI chart reading :  side way range bound  little upside biased.

20111117 1659 Global Market & Commodities Related News.

Asian shares, euro fall on jitters over France
TOKYO, Nov 17 (Reuters) - Asian shares and the euro fell further as doubts deepened about Europe's ability to stop its sovereign debt crisis from spinning out of control, with the region's biggest nations split over the European Central Bank's bond buying role.
"European leaders have failed to clear up doubts about the effectiveness of the region's bailout fund, as it has yet to collect funds, aggravating investor jitters," said Yuji Saito, director of the foreign exchange division at Credit Agricole Bank in Tokyo.

Greece Turns to Budget After Winning Confidence Vote (Bloomberg)
Greek Prime Minister Lucas Papademos turns his attention today to finalizing next year’s budget, tackling a key demand set for the country to receive international financing a day after he won a confidence vote. Finance Minister Evangelos Venizelos will present the 2012 spending plan to the new cabinet for approval before it’s submitted to parliament for discussion by lawmakers, which he said could be this week. Demonstrators at the same time will gather in Athens to commemorate a student uprising today. “The policy of fiscal consolidation is necessary after the mistakes of the past several years to create the foundations for a new type of sustainable development,” Papademos told parliament yesterday. “The road is long and requires persistent effort and implies large adjustment costs.”

Europe Stocks Decline Before Bond Auctions (Bloomberg)
European stocks fell, sending the Stoxx Europe 600 Index lower for a third day this week, before France and Spain sell bonds amid surging borrowing costs. U.S. index futures rose while Asian shares were little changed. ASML Holding NV dropped after Applied Materials Inc., the world’s largest producer of semiconductor-making equipment, forecast earnings that missed analyst estimates. SABMiller Plc (SAB) fell after reporting earnings. Royal Ahold NV climbed after reporting a 15 percent rise in third-quarter profit. The Stoxx 600 declined 0.4 percent at 236.14 at 8:00 a.m. in London as Spanish 10-year bond yields rose to a euro-ara record and the French five-year yield jumped to a six-month high. Futures on the Standard & Poor’s 500 Index expiring in December climbed 0.5 percent. The MSCI Asia Pacific Index was little changed.

FOREX-Euro hits 5-week low as contagion fears intensify
SINGAPORE, Nov 17 (Reuters) - The euro hit five-week lows versus both the dollar and the yen on Thursday as bond market turmoil spread across Europe, sparking calls for the European Central Bank to intervene more forcefully in markets.
Investors were also nervously watching to see how German financial markets will react after rating agency Moody's Investor Service cut ratings of 12 German public-sector banks, believing they are likely to receive less federal government support if needed.

Fed economist sees long recovery slog
St. LOUIS, Nov 16 (Reuters) - The U.S. economic recovery will likely be a long slog over several years and there is not a whole lot the Federal Reserve can do to speed the process, according to a top economist at the central bank.
"Something's happened in U.S. labor markets that we can't overcome," St. Louis Federal Reserve Bank Research Director Christopher Waller told Reuters in an interview. "No matter what we do, recovery is going to be slow."

CFTC official seeks more protection of customer accts
WASHINGTON, Nov 16 (Reuters) - A U.S. futures regulator on Wednesday pushed for immediate action to bolster protection of customer funds in order to restore confidence in the futures brokerage industry in the wake of the collapse of MF Global.
Scott O'Malia, a commissioner at the U.S. Commodity Futures Trading Commission, backed a requirement that intermediaries like MF Global  should hire a third party, such as an independent reviewer, to make sure customers funds are kept separate from the firm's own money.

Tight supplies take centre stage in grain markets
GENEVA, Nov 16 (Reuters) - Tight supplies remain a central concern for grain and oilseed markets as demand expands, leaving markets vulnerable to any supply shocks, Bruce Tozer of Credit Agricole Corporate and Investment Bank said in an interview on Wednesday.
"I think the market is generally nervous about tightness. Demand now is growing at such a rate there is very  little slippage on the supply side," he told Reuters on the sidelines of the Global Grain 2011 conference.

French analyst sees EU 2012 soft wheat crop up 5 pct
GENEVA, Nov 16 (Reuters) - The European Union's soft wheat harvest is expected to rise nearly five percent in 2012 to 135.8 million tonnes, against 129.5 million this year, French analyst Strategie Grains said on Wednesday in its first estimate for next year's crop.
The increase was mainly due to a jump in the EU's average yield to 5.8 tonnes per hectare, up from 5.6 tonnes this year, Strategie Grains' head analyst Andree Defois told Reuters on the sidelines of the Global Grain conference in Geneva.

Grain prices may not pick up before 2012-analyst
GENEVA, Nov 16 (Reuters) - World grain prices should move sideways until the end of the year as investors prove wary of economic uncertainty but they could pick up early in 2012 when fundamentals return to the spotlight, U.S. analyst AgResource said on Wednesday.
"Grain prices may not have a lot of downside risks but until we get comfort in the economic landscape of the world it may not have a lot of upside potential," AgResource Director Dan Basse told Reuters on the sidelines of the Global Grain conference in Geneva.

Corn, wheat drop for 2nd day on poor demand, EU worries
SINGAPORE, Nov 17 (Reuters) - Chicago wheat and corn slid for a second straight session, weighed down by slowing demand for U.S. grains and concerns over Europe's debt crisis spinning out of control.
"It was expected that a one-day rally would not be sustained because there are no demand fundamentals supporting corn and wheat," said Lynette Tan, an analyst with Phillip Futures in Singapore, referring to a rally on Tuesday.

Colombian farmers fret over 2012 coffee harvest
SAN ISIDRO, Colombia, Nov 16 (Reuters) - Jose Ramon Collazos, a rotund 56-year-old Colombian coffee grower, is tired of the rains inundating his farm in the hills of Huila, the Andean country's second largest bean producing province.
Collazos has watched his harvest fall up to 40 percent in the last three years due to downpours triggered by the La Nina weather phenomenon and damage from a fungus -- two of the key reasons why Colombia has missed its coffee output targets for three years running.

Brazil cocoa arrivals nudge up as harvest kicks in
BRASILIA, Nov 16 (Reuters) - Cocoa deliveries to warehouses in Brazil's main producing states rose slightly in the last week as the main crop harvest gathered pace, data from Bahia Commercial Association showed.
Cocoa arrivals in the No. 1 cocoa producing state Bahia totaled 52,138 60-kg bags, up from 48,582 bags in the prior week. Deliveries from other producing states, whose production is staggered with that of Bahia, began to rise as harvesting got under way.

UK wheat output seen rising 3 pct in 2011/12
LONDON, Nov 16 (Reuters) - The U.K.'s 2011 wheat harvest is estimated at 15.4 million tonnes, in line with October's provisional estimates and up 3 percent on the year, the farm ministry reported on Wednesday.
Stocks at the start of the 2011/12 season were seen at 1.54 million tonnes, down 490,000 tonnes from a year earlier.

Colombia bets on genetics to up coffee output-group
BOGOTA, Nov 16 (Reuters) - Colombia is betting on genetic research to adapt coffee crops to climate change and has invented eight varietals resistant to roya to boost production, the head of Colombia's National Coffee Research Center said.
Colombia, the world's top producer of high-quality Arabica beans, is increasingly relying on genetics to recover coffee output to historical levels of 11 million bags after three years of lower-than-expected production, experts said.

India delays sugar meet likely until Nov 21-sources
NEW DELHI, Nov 16 (Reuters) - India has put off a meeting of a panel of ministers to decide on allowing more sugar exports, possibly to Nov. 21, two government sources said on Wednesday.
Industry and analysts now say India could decide to allow up to one million tonnes of exports in a first tranche but hold off further quantities until early 2012 due to output delays.

Brent heads to below $111 on Europe's debt worries
SINGAPORE, Nov 17 (Reuters) - Brent crude slipped, heading to below $111, on concerns about demand growth, as France and Germany clash over the role the European Central Bank should adopt to rein in the region's sovereign debt crisis.
"We are beginning to see a decoupling between the United States and Europe because of the recent series of positive economic data," said Tetsu Emori, a fund manager at Astmax Co Ltd in Tokyo.

US proposes to double auto fuel economy by 2025
WASHINGTON, Nov 16 (Reuters) - The Obama administration proposed on Wednesday doubling auto fuel efficiency to 54.5 miles per gallon by 2025, a White House energy priority that has come under scrutiny in Congress.
The plan grew out of an uneasy agreement between the administration, automakers and environmental groups to reduce U.S. dependence on oil imports and cut tailpipe emissions.

India's Oct iron ore exports down by a third-trade
Nov 16 (Reuters) - Indian iron ore exporters shipped about 33 percent less of the steel-making ingredient in October as a fall in global prices made high costs unviable, although they are seen benefiting from this month's price reversal and a weaker rupee.
Iron ore exports from India, the world's third biggest exporter of the raw material, fell to 4.55 million tonnes in October from 6.87 million tonnes a year ago, the Federation of Indian Mineral Industries said in a statement.

London copper down on euro zone spat over ECB's role
SHANGHAI, Nov 17 (Reuters) - London copper fell after France and Germany clashed over the European Central Bank's (ECB) role in handling the euro zone debt crisis, stirring doubt about the region's ability to solve its problems.
"Trading has been directionless over the past few days as investors wrestle with mixed news in the media. The euro zone continues to worry and China is still wrestling with tight credit, while the U.S. economy seems to be stablising," said Great Wall Futures analyst Li Rong.

Copper market in surplus in Jan-Sep 2011 -WBMS
LONDON, Nov 16 (Reuters) - The global copper market had a surplus of 236,800 tonnes in January to September compared with a surplus of 18,200 tonnes in the whole of last year, the World Bureau of Metal Statistics (WBMS) said on Wednesday.  
World refined production for January to September rose to 14.63 million tonnes, up 1.85 percent compared with the same months last year.  

Silver price should rise -Coeur CEO
Nov 16 (Reuters) - The prices of silver and gold should continue rising as economic uncertainty persists, according to the chief executive of Coeur d'Alene Mines Corp , the biggest U.S. silver miner.
"As long as we see things like the EU (Euro zone currency turmoil) and as long as we run the kind of deficits here -- neither of which we see being cleaned up in the short term -- those two things will continue to be positive backdrops for gold and silver," Mitchell Krebs told Reuters in an interview.

Gold edges down on euro zone contagion fear
SINGAPORE, Nov 17 (Reuters) - Spot gold edged lower, tracking losses in riskier assets, as the markets remain jittery over the euro zone debt crisis while the bloc's political wrangling continues.
"The U.S. dollar is strong and there does not seem to be a good solution for Europe," said a Hong Kong-based dealer. "The technical picture looks weak and gold is probably not going to break above $1,800 soon."

METALS-London copper down on euro zone spat over ECB's role
SHANGHAI, Nov 17 (Reuters) - London copper fell on Thursday after France and Germany clashed over the European Central Bank's (ECB) role in handling the euro zone debt crisis, stirring doubt about the region's ability to solve its problems.
Three-month copper on the London Metal Exchange  fell 0.6 percent to $7,683.25 a tonne by 0356 GMT, after rising 0.6 percent previously.

PRECIOUS-Gold edges down on euro zone contagion fear
SINGAPORE, Nov 17 (Reuters) - Spot gold edged lower on Thursday, tracking losses in riskier assets, as the markets remain jittery over the euro zone debt crisis while the bloc's political wrangling continues.
France and Germany clashed over whether the European Central Bank should intervene more forcefully to halt the euro zone's accelerating crisis, while the bond market turmoil is spreading across Europe, making investors grow increasingly nervous.

20111117 1119 Global Market & Commodities Related News.

Asian Stocks Fall After Fitch Says Europe Crisis Threatens U.S. Banks (Bloomberg)
Asian stocks fell for a third day, with the regional benchmark heading for its lowest close in four weeks, after Fitch Ratings said a worsening European debt crisis poses a “serious risk” to U.S. banks, stoking concern about the global financial system. Standard Chartered Plc. (2888), the U.K.’s No 2 lender by market value, fell 3.6 percent in Hong Kong. Esprit Holdings Ltd. (330), a clothier that counts Europe as its biggest market, dropped 5 percent. Olympus Corp. jumped 13 percent after a report Japan’s top banks would continue to support the scandal-hit company. The MSCI Asia Pacific Index slid 0.6 percent to 115.49 as of 11:12 a.m. in Tokyo, with about two stocks falling for each that rose. The gauge headed for its lowest close since Oct. 20.

Singapore’s Exports Slide the Most in 30 Months as Electronics Sales Slump  (Bloomberg)
Singapore’s exports fell the most in more than two years in October as a slowing global economy curbed demand for electronics products. Non-oil domestic exports fell 16.2 percent from a year earlier, after a revised 4.6 percent decline in September, the island’s trade promotion agency said in a statement today. The median of 12 estimates in a Bloomberg News survey was for a 7.8 percent drop. Singapore’s expansion will stall over the next few quarters as the global economy worsens, before a “modest recovery” in the second half of 2012, the central bank said last month. The European debt crisis and elevated U.S. unemployment are damping demand for goods made in Asia, with South Korean exports rising at the slowest pace in two years in October.

GLOBAL MARKETS-Asian shares, euro fall on jitters over France
TOKYO, Nov 17 (Reuters) - Asian shares and the euro fell further on Thursday as doubts deepened about Europe's ability to stop its sovereign debt crisis from spinning out of control, with the region's biggest nations split over the European Central Bank's bond buying role.
"European leaders have failed to clear up doubts about the effectiveness of the region&#8217s bailout fund, as it has yet to collect funds, aggravating investor jitters," said Yuji Saito, director of the foreign exchange division at Credit Agricole Bank in Tokyo.

COMMODITIES-US oil races above $100; other commods down
NEW YORK, Nov 16 (Reuters) - U.S. oil closed at five-month highs above $100 on Wednesday, sharply narrowing its discount to London's Brent crude, the more common world oil benchmark now, and bucking a lower trend in other commodities.
"The reversal of the Seaway will likely accelerate the anticipated clearing of the Midwest surplus, reducing the reliance next year on expensive barge transportation," Goldman Sachs analyst David Greely wrote in a note to clients. The bank brought forward its $6.50 spread forecast by six months.

Brent crude slips more than $1 to $110.75/bbl
SINGAPORE, Nov 17 (Reuters) - Brent crude futures  slipped more than $1 in early Asian trade on Thursday on concerns about demand growth, as France and Germany clash over the role the European Central Bank should adopt to tamp down the region's sovereign debt crisis.

Natgas ends lower for 6th day, front hits 1-yr low
NEW YORK, Nov 16 (Reuters) - U.S. natural gas futures ended lower on Wednesday for a sixth straight day, with concerns about bloated supplies and fairly mild weather this month again driving the front-month contract to a one-year spot chart low.
"There's no (cold) weather to speak of and there's a lot of gas around. The forecasts still look pretty mild, and inventories are likely to hit an all-time high tomorrow, so there's no reason to do any heavy buying here," a Pennsylvania-based trader said.

Euro Coal-Prices tick up, flurry of S.Africa trades
LONDON, Nov 16 (Reuters) - Prompt physical coal prices crept higher by 25 cents on Wednesday in line with firmer oil.
A flurry of January and February South African trades went through on trading platform global COAL but this was more likely due to cargoes needing to have nomination dates given 45 days prior to loading than any rise in demand, traders said.

20111117 1015 Malaysia Corporate Related News.

UEM, EPF and govt strike a deal
Toll rates on several expressways will increase by smaller amounts from 2016, once the proposed takeover of PLUS Expressways by UEM Group and the EPF materializes. At the same time, the concession period for several expressways will be extended. This is in broad strokes the conclusion of the negotiations between the Government and UEM and the EPF. The hike in the toll rate for the North South Expressway (NSE), NSE Sentral Link (ELITE), Linkedua and BKE will be reduced and fixed at 5%. (Financial Daily)

The UEM Group and the EPF, which are taking over Plus Expressways, have  agreed on the balanced revised terms of supplementary toll concession  agreements on five expressways operated by PLUS and Penang Bridge Sdn Bhd.  The toll freeze will continue until 2015 and there would be no compensation,  which would otherwise cost the government RM3.6bn. They have also agreed to  waive PLUS’ current outstanding compensation balance totalling RM2.9bn.  There will be no toll hike on four expressways until 2015. The four  expressways are  – North South Expressway (NSE), NSE Central Link,  Malaysia-Singapore Second Crossing (Linkedua), and the  Butterworth-Kulim Expressway (BKE). They said there would also be cuts in toll rate increase. Starting 2016,  toll rate increase on the four expressways will be fixed at 5% every three  years, while the toll rate for Penang Bridge will remain as per current  charges until the end of the concession period. (Edge)

Axiata CEO Jamaluddin Ibrahim said the company does not plan to sell its  stake in  Idea, considering itself a long-term investor. “We believe in the long  run,” he said. “In fact we have raised our stake slightly,” he said, referring to a  0.9% stake buy in August that took Axiata’s total holding to about 20%.  India’s government is in the process of overhauling decade-old telecoms  rules and there is little clarity yet on several contentious issues, leading  to uncertainty among market players. “There are concerns,”  Jamaluddin said. “But we are positive on Idea. We are positive on  India.” (Reuters)  

Proton Holdings Bhd said the company was still producing Satria Neo as a  replacement model for the first generation Satria. Group MD Datuk Seri Syed  Zainal Abidin Syed Mohamed Tahir said Proton was shifting the manufacturing  of the model to its main plant in Shah Alam from Tanjung Malim.  "There is no truth in the report that we are ceasing production at the  Tanjung Malim plant and shifting to Shah Alam. People may  misinterpret that we are stopping production in Tanjung Malim to "kill  the brands produced there"," he said. Syed Zainal was responding to a  news report that Satria Neo was nearing the end of its production cycle. Speaking at a press conference, he said Proton was rearranging its  facilities at the state-of-the-art Tanjung Malim plant in order to bring in  its new model. Meanwhile, Syed Zainal said Proton has decided to  discontinue the sale of its supermini hatchback  Savvy, introduced in  June 2005, as a successor to the Tiara model, and was also phasing out  the Gen.2 model from the domestic market.  "We are shifting the production of Gen.2 and as you know, we are  talking to our partners in China and Iran  to assemble the model there.  We are still in negotiations," he said. (Bernama) 

Management buyout of Proton possible
Proton Holdings Bhd’s MD Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir has suggested that he and other senior company executives will be keen to buy over the national carmaker if offered. “If we are offered (to bid for Proton), it is worth considering,” Syed Zainal told Business Times via a telephone interview. Speculation is rife that Syed Zainal and Proton chairman Datuk Mohd Nadzmi Mohd Salleh have jointly bid for the company. Syed Zainal, however, dismissed it as “mere speculation” and said that no management buyout (MBO) plan had been submitted to the government. (BT)

Maxis, Measat in broadband tie-up
Telecommunications firm Maxis has entered into an agreement with Measat Broadband International to provide affordable, high-speed satellite broadband connectivity to customers nationwide. In a statement yesterday, Maxis said it had signed an anchor partner of the Measat 5 satellite, formerly known as the IPStar Malaysia. (Financial Daily)

MUI appoints Star’s Ngiam to board
Star Publications Bhd’s former group MD Datin Linda Ngiam has been appointed an independent director of MUI Properties Bhd. Ngiam, 56, is still a non-executive director of Star, where she was group MD and CEO from 1 July 2008 until her retirement on 30 June. (Financial Daily)

Ramunia explains ONGC decision
Ramunia Holdings and its JV partner declined to re-tender for a USD190m (RM602m) contract with India’s Oil and Natural Gas Corp (ONGC) due to the long delay in the issuance of the notice of award. The contract was for the construction of up to 10 wellhead platforms. Ramunia clarified to Bursa yesterday that the Ramunia SEW consortium decided not to participate as ONGC had delayed the notice of award from 2 Sept 2011 to 11 Nov 2011, despite the fact that the consortium was the lowest compliant bidder as declared on 30 Aug, beating 5 other international consortia and 1 disqualified bidder. (Financial Daily)

The government wants to make it a crime for  licensed housing developers  to abandon their projects. A new clause in the Housing Development (Control  and Licensing) (Amendment) Act will enable buyers to initiate criminal  proceedings against developers who abandon housing projects. Under the  amendment, any licensed developer who abandons or causes a housing  development to be abandoned can be fined between RM250,000 and  RM500,000 or jailed up to three years, or both. It also provides for the  developer to refund all money received from a purchaser should the purchaser  terminate the S&P agreement within 30 days. (Sun)

The names of developers shortlisted to undertake the development of the 20  acres of  prime land in Bangsar are expected to be revealed next month.  Permodalan Hartanah Bumiputera, which owns the land, is believed to be still  in the process of shortlisting the candidates based on their project submissions.  The criteria will be based on potential yields, project concept and design and  traffic dispersal system, among others.  It is understood that 30% to 40% of the development ratio will comprise  residential units, and the rest would be office blocks, a hotel, shopping  mall, and shop lots. The plot ratio will be between 6-8x and generate a  GDV of RM4bn-5bn. (Starbiz)  

The sale of plantation land in Malaysia is on the rise, with greenfield reaching  about RM30,000 to RM55,000 per hectare while brownfield is estimated at  RM70,000 to RM90,000 per hectare depending on the age profile at the  acquisition period for young, prime and old oil palm trees, said Tradewinds  Plantation Bhd general manager (advisory services) Ramesh Veloo. He said  there was strong interest in the expansion of  oil palm plantations in Malaysia  and other countries, given the current good prices for crude palm oil (CPO) and  agricultural products.  The economic climate and financial health of plantation companies, too,  had contributed to the pursuit of more suitable land for oil palm  expansion. The capital expenditure and replanting costs for greenfield  were about RM12,500 and RM13,500 per planted hectare respectively,  he said on the second day of the International Palm Oil Conference 2011  (PIPOC 2011) organised by the Malaysian Palm Oil Board (MPOB).  (Starbiz)

AirAsia Indonesia aims to transport about 4m passengers from and to its  Jakarta hub alone in 2012, 33% more than this year’s estimated 3m. The airline  said the integration of its operations at Terminal 3,  Soekarno Hatta  International Airport, will enable guests to seamlessly transfer between  domestic and international flights and vice versa. The terminal, which formerly  housed only Indonesian domestic flights, will officially be open for international  flights from today. (Bernama) 

Berjaya Air, a niche player that offers commercial flights to island destinations,  will reinstate its flights to Pangkor Island today and add Langkawi as its new  destination tomorrow. The airline, owned by Berjaya Land stopped plying the  Subang-Pangkor-Subang route May last year for unknown reasons. For Pangkor  and Langkawi, it is offering return air fares less tax of RM200 and RM260  respectively and will fly three and four times weekly. In june this year it entered into a joint venture with Indonesia’s PT  Lion Air-Mentari, to transform itself into a low cost carrier operating  B737-900Ers and ATR 72-500s. Reports from Indonesia claimed that  the deal had been called off. (Star Biz) 

More than 400 potential retailers are bidding for the 225 commercial lots at the  KLIA2 terminal which is expected to be completed by October 2012. In  presenting the KLIa2 brand value, senior general manager,  Faizah  Khairuddin said MAHB has projected more than RM1.2bn in sales in the first  year alone. We will carry out tenders in two batches with the first starting in the  first week of December and the second to beheld from Feb 15, 2012.  The 225 lots will be divided into 50% for retail, 40% for food and  beverage and 10% for service. The offerings will be in the form of bars  and island cafes, duplex storefronts and duty-free walkthrough, a movie  and sports lounge and a children’s zone.  (Star Biz) 

Encorp Bhd executive chairman Datuk Seri Effendi Norwawi has diversified into  the food business via Flavor Innovation Sdn Bhd. The company yesterday  launched ready-to-serve meal products called myChef to help those who do  not have time to cook. Flavor Innovation CEO Mohd Fairuz Abdullah sees a growing need for  high quality ready-to-serve food in Malaysia. "Our studies revealed  there are 2m households that fit our demography. So, I think that  number is quite large in Malaysia," he said. He is confident that there is  a huge potential for myChef to grow, although the current market size is  small. myChef offers 14 different cuisines, inspired by traditional Malay,  Nyonya, Western and Asian recipes. Claiming to be the first company in  the world to introduce halal low-calorie meals, Flavor Innovation said it  will focus on selling myChef products in the Klang Valley for the first six  months.  Mohd Fairuz said the products will be available outside the Klang Valley  such as in Johor Baru and Penang by next year.  The products will be  exported to Singapore and Brunei by the second quarter of next year,  and West Europe by 2013. myChef products, he said, will cater to medium and upper households,  specifically working mothers.  The company targets to sell around  2.5m packs of myChef products next year, raking sales of around  RM15m. Flavor Innovation will offer most of its products at below  RM10. (BT) 

Tricubes, which manages the 1Malaysia email, announced yesterday it had  secured a contract from  Polis Diraja Malaysia (PDRM) to handle the  payment of and enquiries about traffic summonses, leading to a surge in its  stock price. (Financial Daily) 

Bumi Armada Bhd, a Malaysian offshore oilfield services provider, was added  to the MSCI Malaysia Index, MSCI Inc said in a statement. The changes will be  made at the close of Nov. 30. (Bloomberg) 

Xingquan International Sports Holdings Ltd (Xingquan) has received  total orders of RM333m for its GERTOP brand of shoes, apparels and  accessories at its Spring/Summer 2012 Sales Fair held in Quanzhou, China. In a  statement, Xingquan said the increase in sales order represented a 10.7%  year-on-year growth. Its chairman and chief executive officer Wu Qingquan said  the response from its customers at the sales fair reinforced their confidence in  its GERTOP brand as a well demanded outdoor casual wear brand. (Financial  Daily) 

The  Malaysia Building Society (MBSB) has signed a RM1bn Recourse  Securitisation of Personal Financing Receivables and Conventional Mortgage  Assets agreement with  Cagamas. With this securitisation exercise, the  company is able to strengthen its funding programme, matching the tenure of  its assets to liabilities. (Star Biz)  

20111117 1014 Global Economic Related News.

Malaysia and Turkey are expected to ink a currency swap agreement to  facilitate trade and expertise, said Bank Negara Malaysia Governor Tan Sri Dr  Zeti Akhtar Aziz. Malaysia and China had established a bilateral Currency Swap  Agreement (CSA) in Feb 09 that would provide RM40bn or Rmb80bn, with an  effective period of three years.  Asked whether Malaysia would be looking at other countries for a CSA,  Zeti said at this stage BNM would focus on operational work as well as  signing the agreement which was in the pipeline, and then move  towards operationalising it. (Bernama)

A  cargo port for barter and bulk trading, agreed upon under the  Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) area  collaboration, is now 60% completed. Menteri Besar Datuk Seri Dr Zambry  Abdul Kadir said first phase construction work costing RM60m was in progress  at the port in Hutan Melintang, near Bagan Datoh.  The first phase comprises a cargo and passenger jetty, a hawker centre  and a wholesale market, he said.  When completed, the port will not only be used for IMT-GT operations,  but also allow cargo ships from Myanmar, Bangladesh and Dubai to use  the facilities, he noted. (Bernama)  

Thailand’s Cabinet endorsed a decree that may make former Prime Minister  Thaksin Shinawatra eligible for a prisoner amnesty during celebrations for  King Bhumibol Adulyadej’s birthday on Dec. 5, the Bangkok Post reported. The  decree also contains no requirement that convicts serve any time in jail.  (Bloomberg)

Indonesia’s auto sales rose to 86,345 units in Oct, a 2.9% yoy increase  (+50.6% in Sep). Motorcycle sales totaled 715,176 in Oct, gaining 24.8% yoy,  following a 62.4% increase in Sep. (Bloomberg)

Actual FDI in  China rose 8.75% yoy in Oct (+7.88% in Sep), data from the  Ministry of Commerce showed. Investment from overseas reached US$8.3bn,  lower than US$9.05 bn in Sep. China's non-financial outbound direct  investment totaled US$46.3bn during the 10M11, up 14.1% yoy. (WSJ)

The  Bank of Japan (BOJ)  held the central bank's key  interest rate at  between zero and 0.1%, in a widely anticipated move. The board also agreed that  the bank's asset-buying fund should remain unchanged at ¥20tr (US$260bn)  and its funding program for commercial banks held constant at ¥35tr. (Xinhua)

Japan: Central bank cuts economic view
The Bank of Japan cut its economic assessment as governor Masaaki Shirakawa called the European debt crisis the biggest danger for the nation's export-led recovery. "Developments in Europe's sovereign-debt problems are the largest risk now," Mr Shirakawa said yesterday after the BOJ left its asset-buying fund unchanged at JPY20trn. A few board members have become more concerned the economy's outlook has worsened since last month, he said. (Bloomberg)

Italy: Monti sworn in as Prime Minister before confidence votes
Mario Monti was sworn in as Italian prime minister and finance minister, taking over an unelected government charged with imposing austerity to prevent the euro area’s third-biggest economy from succumbing to the debt crisis. He will present the austerity measures for his government in Senate tomorrow at 1 p.m. A debate will follow before a confidence vote beginning at 8:30 p.m. A second confidence vote will follow in the Chamber of Deputies on 18th Nov to formally confirm the new government. (Bloomberg)

Spain: Set to purge banks of real-estate hangover
Spanish banks face deeper losses on EUR176bn of soured real-estate assets as Mariano Rajoy, the favourite to win national elections on 20 Nov, pledges to enforce a cleanup. "You have to remove any kind of doubt over the valuation that you have of these assets in your balance sheet," Luis de Guindos, named by media as a contender for finance minister in a new People's Party government formed by Rajoy, said. (Bloomberg)

Portugal: Second review of aid programme was ‘successful’
Portuguese Finance Minister Vitor Gaspar said the second review of the country’s financial-aid programme was “successful”, allowing it to receive another rescue payment tranche of EUR8bn. (Bloomberg)

UK: Unemployment soars to 2.62m
UK unemployment jumped in the third quarter as joblessness among young people climbed above 1m for the first time since at least 1992. Unemployment rose by 129,000 to 2.62m, the biggest increase since 2009. The jobless rate climbed to a 15-year high of 8.3%. The number of unemployment-benefit claims rose 5,300 to 1.6m in October. (Bloomberg)

EU: Inflation holds at 3-year high, complicating ECB task
European inflation held at the highest rate in three years in October, complicating the ECB’s task of shoring up the economy as it fights the sovereign debt crisis. Consumer prices in the 17 nations increased 3% from a year earlier, the same rate of inflation as in September, marking the biggest gain since October 2008. (Bloomberg)

US: Consumer prices unexpectedly fell 0.1% in October
The cost of living in the US unexpectedly fell in October for the first time in four months, a sign that inflationary pressures may be starting to recede. The consumer-price index declined 0.1% from the prior month after a 0.3% rise. (Bloomberg)

US: Homebuilder confidence climbs to highest since May 2010
Confidence among US homebuilders unexpectedly climbed in November to the highest level since May 2010, a sign the outlook for construction may be stabilizing. The National Association of Home Builders/Wells Fargo index of builder confidence rose to 20 from a revised 17 in October. (Bloomberg)

US: Production picks up while inflation cools
Industrial production in US advanced more than forecast in October, adding to evidence the world’s largest economy is weathering disruptions in financial markets caused by the crisis in Europe. Output at factories, mines and utilities climbed 0.7% after a revised 0.1% drop in September. (Bloomberg)

US stocks fall as Fitch says Europe a risk to American banks
US stocks tumbled, erasing yesterday’s gains, as Fitch Ratings said further contagion from Europe’s debt crisis will pose a risk to American banks and amid concern higher oil prices will hamper economic growth. Financial shares led S&P’s 500 Index losses as Citigroup and Morgan Stanley dropped at least 4.1%. Dell sank 3.2% as the personal computer maker told investors to expect slower sales growth for the rest of the year. Abercrombie & Fitch tumbled 14% as profit at the clothing retailer trailed estimates. The S&P 500 slid 1.7% to 1,236.91 and The Dow Jones fell 190.57 points, or 1.6%, to 11,905.59. Oil rose above USD100 a barrel. (Bloomberg)

US mortgage applications decreased 10.0% from one week earlier,  according to data from the Mortgage Bankers Association’s (MBA) survey for  the week ended 11 Nov. The Refinance Index decreased 12.2% from the previous  week. The seasonally adjusted Purchase Index decreased 2.3% from one week  earlier. (MBA)

US core CPI that excludes volatile food  and fuel costs rose 0.1% mom in Oct,  matching Sep as the smallest gain this year. The reading matched economists’  expectations. (Bloomberg)

US net TIC flows, a measure of net foreign capital inflow which include  nonmarket flows, short-term securities and changes in banks' dollar holdings,  was US$57.4bn in Sep, compared with an inflow of US$89.3bn in Aug. (WSJ)

US net long-term securities transactions showed total buying of  US$68.6bn in long-term US securities in Sep, after purchases of US$58bn the  month before. (WSJ)

US industrial production rebounded +0.7% in Oct (-0.1% in Sep), the  Federal Reserve said. Oct's increase was the largest since Jul. Economists had  expected industrial production to rise 0.4%. (Reuters)

US capacity utilization rose to 77.8% in Oct (77.3% in Sep). Economists were  expecting capacity use to rise to 77.6%. (Reuters)    

The US National Association of Home Builders/Wells Fargo Housing Market  index rose 3pts to 20 in Nov, the highest level since May 10. Economists had  expected the index to edge up to 18. (Reuters)

20111117 0941 Renewable Energy Related News.

Nov 15 (Reuters) - Solyndra LLC, the solar panel maker that went bankrupt after accepting a big U.S. government loan, may have a tough time drumming up sizable bids in an auction of its business this week.
Tepid bidding could reinforce arguments by critics who say the Obama administration rushed a $535 million loan guarantee for Solyndra without properly vetting the company's true value and viability. Active bidding would help generate more money to repay the government.

MADRID, Nov 15 (Reuters) - Spain had more water to produce hydropower and irrigate crops, and potentially ease its hefty dependence on gas and grain imports, the latest official data in the drought-prone country showed on Tuesday.  In its latest weekly bulletin, the Ministry for the Environment and Rural Affairs estimated hydropower reservoirs  held enough water to generate 11,384 gigawatt-hours, a gain of 202 GWh since last week.

FRANKFURT, Nov 14 (Reuters) - Three of Europe's top renewable energy companies became the latest victims of a global collapse in prices, massive oversupply and governments slashing subsidies in light of growing debt piles, echoing recent comments from overseas peers.  SolarWorld , Q-Cells  and Nordex  are among the latest renewable energy companies to be hit by a mix of high inventories, slower demand and banks tightening their purses regarding wind parks.

JOHANNESBURG, Nov 14 (Reuters) - South Africa has made available 800 million rand ($101.6 million) for renewable energy projects and is seeking private partners to manage the fund, Finance Minister Pravin Gordhan said on Monday.  "This is government's effort to firstly establish its own renewables fund if you like, and ensure that across government we have a more a coordinated approach towards funding."

NAIROBI, Nov 14 (Reuters) - Kenyan firm Kinangop Wind Park Ltd plans to generate 60.8 megawatts (MW) of electricity for the national grid by harnessing renewable wind power, it said on Monday. The east African nation relies heavily on hydroelectric dams for power, which have proved inefficient in times of drought.

WASHINGTON, Nov 13 (Reuters) - The sun's abundant energy,  if harvested in space, could provide a cost-effective way to meet global power needs in as little as 30 years with seed money from governments, according to a study by an international scientific group. Orbiting power plants capable of collecting solar energy and beaming it to Earth appear "technically feasible" within a decade or two based on technologies now in the laboratory, a study group of the Paris-headquartered International Academy of Astronautics said.

JOHANNESBURG, Nov 11 (Reuters) - South Africa and the Democratic Republic of the Congo will sign an agreement this weekend aimed at kickstarting a stalled $8-$10 billion 5,000 megawatt hydro power project on the Congo River, the Presidency said in a statement.  The memorandum of understanding will be signed in the DRC by the two countries' energy ministers, the statement said.

SEOUL, Nov 11 (Reuters) - South Korea, heavily dependent on energy imports, will invest about 10.2 trillion won ($9 billion) in building a 2.5-gigawatt wind power generating complex through 2019 to diversify its energy resources, the Ministry of Knowledge Economy said on Friday.  The offshore wind farm project in the southwestern region will be led by state-run Korea Electric Power Corp (KEPCO)  and its fully-owned six utilities, a statement from the ministry of knowledge economy said.

BEIJING, Nov 11 (Reuters) - New solar power capacity in China, the world's top energy user, may quadruple from last year to more than 2.0 gigawatts (GW) this year, an official of the research arm of the National Development and Research Commission (NDRC) said on Friday.  China's total solar power capacity could reach around 3.0 GW by the end of this year, Li Junfeng, deputy director-general of
the Energy Research Institute of the NDRC, told the China Energy Enterprises Summit Forum.

20111117 0938 Biofuel Related News.

BRUSSELS, Nov 15 (Reuters) - The European Union's trade authority plans to start an investigation into whether U.S. bioethanol exporters are receiving unfair state subsidies and selling their fuel to Europe at illegally low prices, diplomats said on Tuesday.  The European Commission investigation could result in import tariffs as early as next year on hundreds of millions of litres of the fuel if EU officials unearth evidence of unfair trade practices in the United States.

HAMBURG, Nov 15 (Reuters) - A number of European biodiesel refiners are likely to go under, and the EU will be under pressure to erect barriers to imports in the coming year as low demand in Europe for the green fuel combines with stiff competition from abroad.  "Many biodiesel companies are already in a critical situation, and there is a risk that this will be transformed into companies closing in the next months," said Raffaello Garofalo, secretary general of the European biodiesel industry association EBB.

Nov 14 (Reuters) - U.S.-based agribusiness Archer Daniels Midland Co  said on Monday that it would build Canada's largest biodiesel plant as Canada aims to meet its ambitious mandate for increasing renewable content in fuels. The 265-million-litre (70-million-gallon) plant at Lloydminster, Alberta, would crush canola, Canada's second-biggest crop after spring wheat, and boost ADM's North American biodiesel production capacity by 50 percent.

LONDON, Nov 14 (Reuters) - The European Union wants bio-energy use to rise by more than half by 2020 arguing that the energy source is carbon neutral: the trouble is it isn't, and the target should in fact be scrapped. Such a move would face huge opposition from farming, forestry and energy lobbies and slow or reverse a multi-billion -euro bio-energy industry in Europe.

SAO PAULO, Nov 10 (Reuters) - Sugar production in Brazil's center-south in the second half of October dipped 23.5 percent from a year ago, as more mills ended crushing the 2011/12 cane crop, sugar cane industry association Unica said on Thursday. Sugar output totaled 1.47 million tonnes, down from 1.92 million tonnes a year earlier. Eighty-nine out of the 310 existing mills in the region had concluded crushing by Nov. 1.

Nov 9 (Reuters) - U.S. ethanol production fell and stocks were off 4.5 percent, as output slowed following a rise to the highest level in more than nine months the previous week. The Energy Information Administration reported Wednesday that U.S. ethanol production totaled 911,000 barrels per day in the seven days to Nov. 4, down 5,000 barrels per day from the previous week, which had been the highest output since the week
ending January 21.

20111117 0936 Global Market Related News.

Asian Stocks Fall After Fitch Says Europe Crisis Threatens U.S. Banks (Source: Bloomberg)
Asian stocks fell for a third day, with the regional benchmark heading for the lowest close in four weeks, after Fitch Ratings said a worsening European debt crisis poses a “serious risk” to U.S. banks, stoking concern about the global financial system. Mitsubishi UFJ Financial Group Inc. (8306), Japan’s biggest lender by market value, dropped 1.2 percent. Nissan Motor Co., the country’s third-largest carmaker by market value, fell 2.3 percent. BHP Billiton Ltd. (BHP), an Australian miner and oil producer, rose 0.5 percent after oil climbed above $100 a barrel. The MSCI Asia Pacific Index dropped 0.4 percent to 115.77 as of 9:12 a.m. in Tokyo. The measure headed for the lowest close since Oct. 20. “This is a bad case for Europe and growth forecasters who were optimistic are definitely cutting back,” said Matt Riordan, who helps manage close to $6.4 billion in Sydney at Paradice Investment Management Pty. “We are going into quite a difficult point where some sort of a new strategy might be required.”

Japan Stocks Fall After Fitch Says Europe Crisis Threatens U.S. Banks (Source: Bloomberg)
Japan’s Nikkei 225 (NKY) Stock Average fell toward its lowest level in 6 weeks after Fitch Ratings said a worsening European debt crisis is a “serious risk” to U.S. banks, stoking concern about the global financial system. The Nikkei 225 fell 0.3 percent to 8,437.22, headed for its lowest close since Oct. 5. The broader Topix index retreated 0.4 percent to 721.58. More than twice as many stocks declined as rose in the gauge.

European Stocks Are Unchanged as Monti Takes Office to Fight Italian Debt (Source: Bloomberg)
European stocks ended the day unchanged, after swinging between gains and losses, as Mario Monti became Italy’s new prime minister amid concern the sovereign-debt crisis is hurting the global economy. Infineon Technologies AG (IFX), Europe’s second-largest semiconductor maker, fell after saying sales will decline in 2012. Bayerische Motoren Werke AG (BMW) and Daimler AG (DAI) led a retreat in European carmakers. Vivendi SA (VIV) advanced after reporting third-quarter profit that beat analysts’ estimates. The Stoxx Europe 600 Index was unchanged at 237.04 at the close in London. The gauge earlier climbed as much as 1.2 percent and dropped as much as 0.7 percent as the European Central Bank was said to buy Italian and Spanish bonds and the Bank of England warned that failure to tackle the debt crisis could affect economic growth.

U.S. Stocks Fall as Fitch Says Europe a Risk to American Banks (Source: Bloomberg)
U.S. stocks tumbled, erasing yesterday’s gains, as Fitch Ratings said further contagion from Europe’s debt crisis will pose a risk to American banks and amid concern higher oil prices will hamper economic growth. Financial shares led Standard & Poor’s 500 Index losses as Citigroup Inc. (C) and Morgan Stanley dropped at least 4.1 percent. Dell Inc. (DELL) sank 3.2 percent as the personal computer maker told investors to expect slower sales growth for the rest of the year. Abercrombie & Fitch Co. (ANF) tumbled 14 percent as profit at the clothing retailer trailed estimates. Rambus Inc. (RMBS) plunged 61 percent after losing a jury trial against Micron Technology Inc. (MU) and Hynix Semiconductor Inc. Micron surged 23 percent. The S&P 500 slid 1.7 percent to 1,236.91 at 4 p.m. New York time. The Dow Jones Industrial Average fell 190.57 points, or 1.6 percent, to 11,905.59. Oil rose above $100 a barrel.

Global Demand for U.S. Assets Climbs as Investors Seek Safety Amid Crisis (Source: Bloomberg)
Global demand for U.S. stocks, bonds and other financial assets rose the most in 10 months in September as investors sought the safety of Treasury securities amid Europe’s sovereign-debt crisis. Net buying of long-term equities, notes and bonds totaled $68.6 billion, the highest since November 2010, compared with net buying of $58 billion in August, the Treasury Department said in Washington today. Including short-term securities such as stock swaps, foreigners purchased a net $57.4 billion in September, compared with net buying of $89.3 billion the previous month. Treasuries rose in September, extending their biggest quarterly advance since the depths of the financial crisis in 2008, on concern Europe’s sovereign-debt turmoil and a sluggish U.S. economy would undermine the global recovery. The rally repudiated Standard & Poor’s Aug. 5 downgrade of the U.S. AAA credit rating and drove yields to record lows.

Factory Production Picks Up in Sign U.S. Economy Weathering Europe Crisis (Source: Bloomberg)
Industrial production in the U.S. advanced more than forecast in October, adding to evidence the world’s largest economy is weathering disruptions in financial markets caused by the crisis in Europe. Output at factories, mines and utilities climbed 0.7 percent after a revised 0.1 percent drop in September, figures from the Federal Reserve showed today. Other reports showed the cost of living unexpectedly fell and builder sentiment improved. Combined with rising retail sales and record exports, the data signal manufacturing will help the economic recovery strengthen heading into 2012, overcoming concern surrounding a default in Europe that has caused stocks to plunge. Less inflation also opens the door for Fed policy makers to take additional action should the expansion falter.

Detroit Faces $45 Million Gap, Takeover by Michigan, Mayor Dave Bing Says (Source: Bloomberg)
Detroit faces a $45 million deficit and needs union concessions to help avoid a state takeover, Mayor Dave Bing said in a televised speech. “Our city is in a financial crisis and city government is broken,” Bing said today in the speech. “If we continue down the same path, we will lose the ability to control our own destiny.” “Without change, the city could run out of cash by April,” he said. Bing has warned for weeks of the dire fiscal condition of Detroit, the nation’s 19th largest city, having fallen from 10th in 2000, according to U.S. Census Bureau figures. The municipality of about 714,000 may be placed under a state- appointed emergency manager if unions don’t agree to concessions to lower costs, Bing said. In March the Legislature and Republican Governor Rick Snyder gave broader powers to emergency managers in cities and school districts, including the authority to nullify union contracts and to fire city employees.

California Revenue May Fall $3.7 Billion Short of Estimates, Analyst Says (Source: Bloomberg)
California revenue likely will fall $3.7 billion short of what Governor Jerry Brown and Democrats projected for the state budget, with a $13 billion gap looming in the next fiscal year, the Legislature’s fiscal analyst said. The state’s economy won’t produce the $4 billion in better- than-expected revenue Brown, 73, wrote into the budget in June, the Legislative Analyst’s Office said today in a report. Brown used the projection to help close a $26 billion deficit after Republicans blocked extensions of expiring tax increases. The new estimate makes it more likely that automatic spending cuts Brown built into the budget will be triggered. The reductions will kick in if revenue misses estimates by $1 billion or more. They could take seven days out of the school year to save $1.54 billion, end $248 million in student busing subsidies, and cut higher-education aid and in-home services for the elderly and disabled.

China’s Slower Inflation May Give Boost to ‘Beaten-Down’ Stocks, KKR Says (Source: Bloomberg)
Slowing inflation may allow China’s central bank to loosen monetary policies, boosting “beaten- down” stocks and other high-yielding assets, according to KKR & Co., a New York-based private-equity firm. “Ongoing declines in Chinese inflation is bullish for beaten-down risk assets in the region,” strategists led by Henry McVey, head of global macro and asset allocation at the firm, wrote in a research note today. “It also reduces the likelihood of a hard landing” in the world’s second-largest economy, they wrote. China’s inflation slowed to 5.5 percent in October from a three-year high of 6.5 percent in July after policy makers raised interest rates and reserve requirements, curbed lending and restricted home purchases in the past year. The Shanghai Composite Index of Chinese stocks has lost 15 percent in the past year. The index is trading at 11.6 times estimated earnings, compared with the average of 19.3 during the past decade, according to data compiled by Bloomberg.

China Policy May Change on Falling Home Prices (Source: Bloomberg)
Home prices in China’s four biggest cities have stalled since July and are set to drop after Premier Wen Jiabao this month pledged to maintain a one-and-a-half year battle to lower prices to a “reasonable” level. Housing prices in Beijing, Shanghai, Guangzhou and Shenzhen, home to a combined 66 million people, fell from a month earlier by as much as 0.3 percent in October, data will show tomorrow, according to five analysts surveyed by Bloomberg News. Analysts at firms including Barclays Capital Research and asset managers such as CBRE Global Investors are betting price declines will force a policy reversal as the tightening weighs on economic growth. A rout in prices and drop in new developments would be felt from Australia and Latin America, where raw materials exports are fueling growth, to Europe and Japan, where machinery makers rely on Chinese sales.

India’s Debt at 70% of GDP Is ‘Constraint’ to Higher Rating, Moody’s Says (Source: Bloomberg)
India’s public debt at 70 percent of its gross domestic product is preventing Asia’s third-biggest economy from securing an investment-grade rating, Moody’s Investors Service said. The nation’s fiscal deficit and “the debt burden, which is high relative to similarly rated countries,” are among the constraints, Atsi Sheth, a sovereign analyst at Moody’s, said in a telephone interview from Mumbai yesterday. “For the ratings to be improved, we will have to be comfortable that India’s government debt is at a level that can be sustained over the medium term.”
India’s finance ministry pitched for a higher rating in a meeting with Moody’s officials on Nov. 14, R. Gopalan, secretary, Department of Economic Affairs, said a day later. The government raised its planned borrowing for the six months through March 31 by 32 percent as revenue collections fall short of target. Finance Minister Pranab Mukherjee said Oct. 4 that it may be hard to meet his goal of cutting the budget deficit to a four-year low of 4.6 percent of GDP.

Portugal Says Second Review of Its Financial Aid Program Was ‘Successful’ (Source: Bloomberg)
Portuguese Finance Minister Vitor Gaspar said the second review of the country’s financial-aid program was “successful,” allowing it to receive another rescue payment tranche of 8 billion euros ($10.8 billion). “The government has been clear in its determination to meet the commitments assumed as part of the aid program,” Gaspar told a news conference in Lisbon today. The so-called troika of the European Commission, the European Central Bank and the International Monetary Fund said in a statement that Portugal’s budget plan is “off to a good start.” Prime Minister Pedro Passos Coelho is cutting spending and raising taxes to meet the terms of a 78 billion-euro bailout. Portugal followed Greece and Ireland in April in seeking a bailout as its borrowing costs surged.

Papademos Turns Attention to Budget After Winning Greece Confidence Vote (Source: Bloomberg)
Greek Prime Minister Lucas Papademos turns his attention today to finalizing next year’s budget, tackling a key demand set for the country to receive international financing a day after he won a confidence vote. Finance Minister Evangelos Venizelos will present the 2012 spending plan to the new cabinet for approval before it’s submitted to parliament for discussion by lawmakers, which he said could be this week. Demonstrators at the same time will gather in Athens to commemorate a student uprising today. “The policy of fiscal consolidation is necessary after the mistakes of the past several years to create the foundations for a new type of sustainable development,” Papademos told parliament yesterday. “The road is long and requires persistent effort and implies large adjustment costs.”

Monti Faces Double Challenge of Convincing Parliament, Investors on Debt (Source: Bloomberg)
Mario Monti’s first full day as Italy’s prime minister will be dedicated to trying to persuade lawmakers in Rome and investors everywhere that he can pass the measures needed to cut the euro region’s second-biggest debt. Against a backdrop of 10-year bond yields above the 7 percent threshold that led Greece, Portugal and Ireland to seek bailouts, Monti, 68, unveils his government’s economic plans. He will present the program to the Senate in Rome at 1 p.m. before a confidence vote beginning at 8 p.m. “We expect that the priorities will be liberalizations and measures to boost competition, the reform of the labor market and a more incisive action on the pension system,” Chiara Corsa and Loredana Federico, Milan-based economists at UniCredit SpA, wrote in a note to investors. “An additional fiscal adjustment to meet the balanced budget in 2013 will be probably announced.”

Monti Sworn In as Prime Minister as He Attempts to Solve Italy Debt Crisis (Source: Bloomberg)
Mario Monti was sworn in as Italian prime minister and finance minister, taking over an unelected government charged with imposing austerity to prevent the euro area’s third-biggest economy from succumbing to the debt crisis. Monti, 68, and his Cabinet took the oath in Rome from President Giorgio Napolitano, who reached outside the political arena to offer Monti the job after the resignation of Prime Minister Silvio Berlusconi on Nov 12. Monti’s ministers include Corrado Passera, chief executive officer of Intesa Sanpaolo SpA (ISP), the new industry minister and Antonio Catricala, head of the antitrust regulator, who will serve as deputy premier. “We have received a lot of encouragement from our European partners and international authorities,” Monti said at a press conference in Rome this morning when he presented his government to Napolitano “I hope this translates into a calming of the markets, especially regarding the tensions facing our country.”

IMF Europe Unit Chief Quits One Year Into Job (Source: Bloomberg)
The head of the International Monetary Fund’s European department quit less than a year into the job and was replaced by an in-house economist as the European debt crisis worsens. Antonio Borges, a Portuguese native whose unit oversees bailouts in the euro region, left for “personal reasons,” the Washington-based IMF said today in an e-mailed statement. His successor is Reza Moghadam, who has made his career at the fund and headed the strategy department. The management change comes as the IMF, which is co- financing bailouts in Greece, Portugal and Ireland, is preparing to send a team to Italy for an unprecedented audit of the country’s efforts to cut its debt. Borges, a former vice chairman at Goldman Sachs International, last month retracted comments he made about the fund’s possible involvement in the European bond market. He couldn’t immediately be reached for comment today.

King’s Alarm Stokes BOE Stimulus Suspense as Europe’s Debt Turmoil Rages (Source: Bloomberg)
Bank of England Governor Mervyn King’s alarm over the danger posed by Europe’s debt crisis suggests officials may be ready to add more stimulus as soon as next month to shield Britain from further turmoil. King added his voice yesterday to growing global frustration with Europe’s inability to tame its crisis, saying failure to deal with it would lead to “significant adverse consequences.” The Bank of England cut its growth and inflation forecasts, a month after raising its bond-purchase target by 75 billion pounds ($118 billion) to aid the recovery. “We’re on the knife-edge of another recession,” said Richard Barwell, an economist at Royal Bank of Scotland Group Plc in London and a former Bank of England official. “They’re increasingly coming to the conclusion that there’s more weakness in the U.K. than they thought. We originally forecast another 50 billion pounds in February. They could easily bring that forward.”

20111117 0935 Global Commodities Related News.

Nationalism Replaces Crisis as Biggest Threat to Metal Supply: Commodities (Source: Bloomberg)
Rising government demands for higher taxes and royalties are becoming a bigger threat to mining companies and their production than the financial crisis that’s wiped $6 trillion off stock market values since July. “You can’t ignore it and the problem is it’s gathering pace,” David Russell, a director at Ernst & Young LLP’s mining and metals team in London, said Nov. 14. “It’s almost like a contagion. The key risk is an inability to plan.”
Resource nationalism, as the push by states is known, jumped to being the number one concern among mining executives this year, replacing capital allocation, Ernst & Young said in its annual risk survey published in August. At least 11 countries from Australia to Ecuador have this year raised or revealed plans to increase taxes or royalties on sales of resources such as gold and coal, according to Deutsche Bank AG.

Corn (Source: CME)
US corn futures end lower on outside market pressure and a lack of demand. Grains markets lacked their own direction and succumbed to a risk-off trade as worries about Europe's debt crisis flared up anew, says Don Roose of US Commodities. A stronger dollar also weighed on market action. "It seems like we have a market that's fairly well-balanced fundamentally," Roose says. Demand, particularly for exports, remains weak, but supplies are still likely to be tight at least until the next harvest. CBOT December corn ends down 2 3/4c at $6.42 3/4 per bushel.

Wheat (Source: CME)
US wheat futures end mostly lower, backpedaling from early gains. Traders were cautious of risk in the face of European debt uncertainty and worries about sluggish export demand, analysts say. The absence of a bullish fundamental story to buoy prices encouraged traders to take profits on advances, particularly with export competition from Black Sea region. CBOT Dec wheat ended down 16c at $6.16 3/4/bushel, Dec KCBT wheat ended 18c lower at $6.87, while Dec MGEX wheat climbed 2 1/4c amid tight farmer holding of supplies to $9.33 1/2.

Rice (Source: CME)
US rice futures end sharply lower, succumbing to the general weakness in grain futures, but posting the biggest decline. Weak demand and technical selling added to the lower theme, analysts say. CBOT January rice fell 27c to $14.95 1/2 per hundredweight.

Soy drops from 1-wk top on euro zone fears, wheat down
SINGAPORE, Nov 16 (Reuters) - U.S. soybeans slid from a one-week top, while corn lost ground as fears of the euro zone crisis spreading to top-rated members such as France weighed on the agricultural markets.
"Soybeans have been reasonably well supported but they are down today and everything is a little bit weaker, which is not surprising, given the stronger dollar," said Adam Davis, a senior commodity analyst at Merricks Capital in Melbourne.

Global 2012 wheat output seen almost flat-Agresource
GENEVA, Nov 16 (Reuters) - Global wheat output should stay nearly flat in 2012 at 682.6 million tonnes, against 683.3 million in 2011, as higher U.S. and European production offset a fall in Ukraine and Russia, U.S. analyst Agresource said on Wednesday.
The analyst pegged the European Union crop at 135.4 million tonnes, Russia's at 57 million tonnes, the U.S. crop at 56.1 million and Ukraine's at 18.5 million in its first forecast for the 2012 wheat crop given to Reuters on the sidelines of the Global Grain conference in Geneva.

Philippines cuts 2011 farm growth forecast to 3-3.5 pct
MANILA, Nov 16 (Reuters) - Philippine farm output in 2011 is now seen rising between 3.0 and 3.5 percent from last year, Agriculture Secretary Proceso Alcala said on Wednesday, revising down his growth forecast from 4 percent to 5 percent, due to typhoon damage to crops.
The agriculture sector, which accounts for a fifth of the southeast Asian country's overall domestic output, posted annual growth of 4.28 percent in January to September, reversing a contraction of nearly 3.0 percent a year earlier.

Weather helping Argentine grains, more rain seen
BUENOS AIRES, Nov 15 (Reuters) - Mild temperatures and rain over the last month has helped Argentina corn and soy crops bounce back from a dry September, a meteorologist said Tuesday, as farmers took advantage of good planting weather.
Sowing of the two crops is advancing steadily in the South American grains exporting country, which could be on its way to record harvests if the weather remains favorable.

US Plains wheat belt mostly dry; Ohio Valley wet
CHICAGO, Nov 15 (Reuters) - The U.S. Plains winter wheat belt should be mostly dry for the next seven days, but a developing storm system could bring rain to the region next week, an agricultural meteorologist said Tuesday.
"There is a potential system in the six- to 10-day forecast coming out of the southwestern United States that has some potential to bring significant rains to parts of central Texas, Oklahoma and central Kansas," said Mike Palmerino, a forecaster with Telvent DTN.

UK wheat exports pick up, remain behind year ago
LONDON, Nov 15 (Reuters) - UK wheat exports picked up in September although they continue to run significantly below last season's levels, customs data showed on Tuesday.
Shipments during September rose to 277,315 tonnes, up from the prior month's 165,314 tonnes.

Ukraine's Wheat Face Lingering Quality Concerns - Analysts (Source: CME)
Ukraine's wheat exports this crop year face lingering quality concerns, market participants said. "Although Egypt's state grains buying agency has approved Ukraine back to their supply list, quality issues still will be the main concern for our exports this year," Svetlana Sinkovskaya, head of marketing at Ukrainian analysis body APK Inform said. Egypt's General Authority for Supply Commodities, or GASC, bought 60,000 metric tons of Ukrainian wheat at the start of November, marking the second time it had bought Ukrainian wheat since suspending imports from the eastern European nation in 2008 over quality concerns. "GASC recently purchased Ukrainian wheat in a tender, but the wheat is yet to arrive at Egypt's ports. If there are problems with the wheat, this will be terrible for Ukraine," said Victoria Golubyatnirova, sales and business development manager at grains inspection company SGS.
Still, APK's Sinkovskaya said Ukraine should become more active in the wheat market in February as Russia pulls back exports. "Russia has already sold its best grain in very high volumes," Sinkovskaya said. "It is likely as well the government will place duties on exports." Higher grain production, weaker export competition and strong foreign demand has seen Russian grain exports soar during the first three months of the 2011-12 marketing year, the U.S. Department of Agriculture said last week.

Aussie, Canadian Wheat Faces Pressure From Black Sea - Viterra (Source: CME)
Increased competition from the Black Sea region due to higher yields will place increasing pressure on Australian and Canadian wheat markets over the next few years, Fran Malecha, Head of Grain at Viterra, Canada, said at a conference in Geneva. Malecha said cheaper grain supplies from the Black Sea region could threaten Australia and Canada's ability to supply North African and Middle Eastern markets. Cheaper wheat from the Black Sea region is already making it harder for European suppliers to maintain competitiveness with countries to which they traditionally export. However, Malecha said Australia's exports of wheat and barley to North Africa should remain healthy in the future. "Saudi Arabia's imports of barley in particular have indeed been strong and are expected to remain so," he said. Less regulation and more open food markets are necessary to avoid global food shortages and price spikes, Malecha added.
Countries such as France want to push better regulation of food markets--something that has met opposition from agricultural powers such as the U.S.

Wheat Declines as Rainfall in Argentina, U.S. May Help Crop Development (Source: Bloomberg)
Wheat fell in Chicago as harvests in Australia and Argentina may add to global supply and as rains boost yield prospects in parts of the U.S., the world’s largest exporter of the grain. March-delivery wheat declined 0.9 percent to $6.42 a bushel on the Chicago Board of Trade by 2:14 p.m. Paris time. Prices are down 19 percent this year. Western Australia’s wheat production may double to 9.24 million metric tons, more than the 9.12 million tons expected last month, the Grain Industry Association of Western Australia forecast. Southern Hemisphere harvesting will add to supply already boosted by bigger crops in Russia and Ukraine.

Soybeans, Corn Forecast to Open Lower on EU Debt Crisis; Wheat May Decline (Source: Bloomberg)
-- Soybean futures may open 5 cents to 7 cents a bushel lower on the Chicago Board of Trade amid concern that the European debt crisis will hinder the global economy, reducing commodity demand, Jim Gerlach, the president of A/C Trading Inc. in Fowler, Indiana, said in a telephone interview. Soybean-oil futures are expected to open 0.2 cent to 0.3 cent a pound lower, and soybean-meal futures may open down $1 to $2 per 2,000 pounds.
-- Corn futures are called to open 4 cents to 6 cents a bushel lower in Chicago on speculation that the dollar’s rally will erode demand for U.S. grain exports, Gerlach said.

ICE coffee dips, sugar steady, focus on euro zone debt
LONDON, Nov 16 (Reuters) - ICE cocoa and sugar futures were little changed and arabica coffee eased in early trading on Wednesday, weighed by a firm dollar and weaker share markets as investors focused on Southern European countries' ability to tackle their debt problems.
ICE March cocoa  was up $10 or 0.4 percent at $2,547 a tonne at 0901 GMT, just above Monday's 2-1/2-year trough. The contract had dipped to $2,515 on Monday, the lowest level for the second month since July 2009.

India cotton exports in 2011/12 seen 8 mln bales-official
MUMBAI, Nov 15 (Reuters) - India could export eight million bales of cotton in the year to September 2012, up from seven million in the previous year, a Cotton Advisory Board (CAB) official said on Tuesday, as availability increases and Chinese demand grows.
India removed restrictions on cotton exports in July and is the world's second-biggest grower and exporter, with most of its sales going to China.

Mauritius revises up 2011 sugar output -chamber
PORT LOUIS, Nov 15 (Reuters) - Mauritius' Chamber of Agriculture revised its 2011 sugar production forecast up by 5 percent to 410,000 tonnes on Tuesday, saying the sugar cane crop had proven more resilient to poor rainfall than expected.
Sugar, long a pillar of the Indian Ocean island's now nearly $10 billion economy, accounts for roughly 1.2 percent of gross domestic product.

Euro Coal-S.African prices fall $1/T with oil
LONDON, Nov 14 (Reuters) - Prompt physical coal prices dropped by around $1.00 a tonne or 0.9 percent on Monday following oil's $2 loss on worries over implementation of reforms in Italy and Greece after naming new leaders and lower industrial output in the euro zone.
Comments by German Chancellor Angela Merkel on Monday, in which she said that Europe could be living through its toughest hour since World War Two swiftly stalled a rally on the financial markets earlier in the day.

Candy-to-Fuel Demand Cuts Oil Inventory to Lowest Since 1975: Commodities (Source: Bloomberg)
Stockpiles of the cooking oils used to make everything from candy bars to biofuels are declining to the lowest in two generations as farmers fail to keep up with demand expanding at five times the pace of the world population. Inventories of soybean, rapeseed, sunflower and six other oils will drop to less than 29 days of consumption this year, the fewest since 1975, U.S. Department of Agriculture data show. Palm, the most-consumed oil, will rise 7 percent to 3,475 ringgit ($1,103) a metric ton in Malaysian trading by the end of the first quarter, the highest since March, based on the median estimate of 12 analysts and traders surveyed by Bloomberg. Supplies of oils and fats will be near the “critically low level” seen during the 2008 food crisis, the United Nations said in a report Nov. 3. While the UN’s world food index dropped 9 percent from a record in February as grain harvests expanded, a tighter supply of cooking oils is helping to keep the gauge about 20 percent higher than the five-year average.

Oil Drops From Five-Month High After Rising Above $100 a Barrel (Source: Bloomberg)
Oil fell from the highest in more than five months in New York on speculation that prices have risen too fast amid concern Europe’s debt crisis will affect the economy of the U.S., the world’s biggest crude consumer. Futures slipped as much as 1 percent after closing above $100 a barrel yesterday. Crude’s relative strength index rose above 70, indicating prices may have advanced too fast, while equities tumbled after Fitch Ratings said U.S. banks face a “serious risk” that their creditworthiness will deteriorate if Europe’s debt crisis worsens. London-traded Brent’s premium to West Texas Intermediate narrowed for a seventh day. Crude oil for December delivery was at $101.69 a barrel, down 90 cents, in electronic trading on the New York Mercantile at 10:41 a.m. Sydney time. The contract advanced $3.22 to $102.59 yesterday, the highest settlement since May 31. Prices have increased 26 percent in the past year.

POLL-US crude stocks seen down on lower imports
Nov 15 (Reuters) - U.S. crude oil inventories were expected to have fallen last week for the second straight time on lower imports and slightly higher refinery runs, an expanded Reuters poll of analysts showed on Tuesday.
On average, U.S. crude stockpiles were forecast down 1.2 million barrels for the week ended Nov. 11, the poll of eight analysts showed. In the week to Nov. 4, crude stocks in the United States fell 1.37 million barrels to 338.09 million barrels, Energy Information Administration data showed.

Iron Ore-Spot at near 1-mth top as gains extend to Day 12
SINGAPORE, Nov 16 (Reuters) - Iron ore rose to its highest in nearly a month as spot prices gained for a 12th day in a row, with firmer steel prices in top consumer China encouraging more buying of the raw material and helping it recover from last month's slump.
Iron ore with 62 percent iron content climbed nearly 6 percent to $146.30 a tonne on Tuesday, the highest since Oct. 19, according to the Steel Index.

Europe stainless steel industry faces big cuts-SMR
LONDON, Nov 15 (Reuters) - Europe's stainless steel industry will see major curtailment of production between this year and next as private equity and other new investors get involved, the managing director of steel consultancy SMR told Reuters.
The European stainless steel industry has been suffering due to overcapacity and stiffer competition from Asia in the past few years, but production cuts and shutdowns have been slow to come.

Baltic index rises on fresh China iron ore buying
LONDON, Nov 15 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, turned positive on Tuesday as fresh iron ore sales to China boosted earnings and sentiment on the larger capesize market.
The overall index rose 28 points or 1.54 percent to 1,846 points after falling for two sessions.      

20111117 0933 Soy Oil & Palm Oil Related News.

Reuters : Indonesia October palm oil exports down 10% at 844,354 tonnes- Industry Source.

Soybeans (Source: CME)
US soybean futures close down amid profit-taking and the absence of fresh export news to sustain the recent rally. That encouraged traders to reduce some risk exposure, while a firmer dollar and economic and debt worries promoted cautious action as well. Meanwhile, traders are concerned about shutting off export demand if price push too far above $12/bushel, analysts added. CBOT January soy ended down 12 1/2c at $11.87 3/4.

Soybean Meal/Oil (Source: CME)
Soy product futures stumbled in step with soybeans, succumbing to pressure from traders taking profits on recent gains. Soyoil futures ended slightly lower, fighting off most of the selling pressure as soaring crude oil prices make biodiesel derived from soyoil more profitable, analysts say. CBOT Dec soyoil ended down 0.12c at 52.48c/lb; Dec soymeal finished down $5.00 at $296.40/short ton.

China Sinograin Bought 500,000 Tons US Soybeans; More Likely (Source: CME)
China bought six cargoes, equivalent to around 500,000 metric tons, of soybeans from the U.S. to replenish state reserves, two executives familiar with the matter said. The buy takes the state stockpiler's total soybean purchases to 60% of a target set by the government earlier this year of 2 million tons. The stockpiler, China Grain Reserves Corp., or Sinograin, bought 700,000 tons of soybeans in early October, traders said previously. Sinograin will likely buy more soybeans if prices on the Chicago Board of Trade fall below $12 a bushel, said one of the executives, who work at a state-owned grain processing and trading company . Sinograin "will not consider U.S. soybeans if CBOT price is higher than $12," the executive said. CBOT January soybean contract traded around the $12 mark in electronic trading during Asian trading hours after settling at $12.0025 overnight. Calls to Sinograin weren't immediately answered.
The stockpiler has recently become an active buyer of global grains and oilseeds, due partly to the need to replenish its depleted reserves and also due to attractive prices of commodities on the international market amid concerns over a potential global economic downturn. U.S. soybeans at $12/bushel is equivalent to around CNY3,900/ton on a cost-and-freight basis at Chinese ports, much cheaper than domestic soybeans at CNY4,100-4,200/ton, analysts said. Sinograin in May confirmed that it had purchased 1 million tons of corn from the U.S. it had booked in March for state reserves. After the deal, the company is said to have bought more corn from the U.S. in July and early October, when CBOT prices were low, though it hasn't confirmed any such deals. China will likely buy about 5 million metric tons of corn from overseas suppliers in this marketing year, the state-backed grain analyst the China National Grain and Oils Information Center said previously.

Palm edges down on EU concerns; upside potential seen
JAKARTA, Nov 16 (Reuters) - Malaysian palm oil futures dipped as investors booked profits after recent gains and ongoing euro zone concerns held prices back, although lower output expectations are seen pushing the edible oil higher in the coming weeks.
"The market is in quite a tight range," said a Kuala Lumpur-based palm trader. "There is a bit of profit-taking coming in, while the Dalian is also weak ... the sovereign debt issue is still lingering but there is no panic."

Latam soy sowings smaller than hoped -Oil World
HAMBURG, Nov 15 (Reuters) - Argentine and Brazilian farmers will sow less soybean area than hoped this season as farmers are turning to corn because of high corn prices, Hamburg-based oilseeds analysts Oil World forecast on Tuesday.
"The soybean production in Argentina and Brazil may indeed be decimated by a larger-than-expected shift of acreage from soybeans to corn," Oil World said.

German rapeseed sowings for 2012 crop up 0.9 pct
HANOVER, Nov 15 (Reuters) - Germany's winter rapeseed sown area for the 2012 harvest will increase by a marginal 0.9 percent on the year to 1.325 million hectares, German oilseeds industry association UFOP said on Tuesday.
Repeated rain in Germany this summer had delayed the country's grain crop and meant many farmers no longer had time to carry out all their rapeseed planting intentions, UFOP said.

Ukraine '11 sunseed crop jumps to record 8.8 mln T
KIEV, Nov 15 (Reuters) - Ukraine, the world's biggest sunflower oil exporter, has completed the 2011 sunflower seed harvest, threshing a record high 8.8 million tonnes of seed bunker weight, the Farm Ministry said on Tuesday.
The country harvested 7.1 million tonnes of sunseed bunker weight and 6.9 million in clean weight in 2010.

India's vegoil imports seen up in 2011/12
NEW DELHI, Nov 15 (Reuters) - India's vegetable oil imports fell last year after a gap of five years on improved domestic oilseed supply, but rising population and higher incomes could send demand soaring next year, a trade body said on Tuesday.
Imports in the year to October were 8.7 million tonnes, down 5.4 percent over the previous year and exactly in line with a Reuters poll in July.