Friday, November 25, 2011

20111125 1820 FCPO EOD Daily Chart Study.

FCPO closed : 3069, changed : -39 points, volume : lower.
Bollinger band reading : pullback correction little upside biased.
MACD Histrogram : falling lower, buyer closing position.
Support : 3050, 3020, 2970, 2950 level.
Resistance : 3070, 3100, 3150, 3200 level.
Comment :
FCPO closed recorded loss with slower volume changed hand while soy oil currently trading nearly 2% lower while crude oil price also trading weaker.
Weaker export data released by both cargo surveyor pressure FCPO price to trade lower amid concern on slowing down global economy growth weakening demand.
Daily chart formed the 5th down doji bar candle closed below middle Bollinger band support level after market opened lower, climb little upwards and slide down lower tested 3050 support level before rebounded little upward to closed off the low of the day.
Still, FCPO is trading in pullback correction with adjusted little upside biased market development testing support and resistance with MACD indicator having negative crossed down.
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.

20111125 1747 FKLI EOD Daily Chart Study.

FKLI closed : 1421.5, changed : -27 points, volume : higher.
Bollinger band reading : pullback correction little downside biased.
MACD Histrogram : resume falling, seller still in control.
Support : 1420, 1400, 1395, 1385 level.
Resistance : 1425, 1435, 1440, 1445 level.
Comment :
FKLI closed recorded substantial loss surrendered most of yesterday gains with increasing volume transacted doing 10 points discount compare to cash market that also closed lower. Asia markets ended in negative territory while European markets also trading weaker.
News on German chancellor Angela Merkel ruled out joint euro bond and a bigger role for the European Central Bank in fighting the debt crisis, surging European country bond yield and Moody downgraded Hungary's bond to junk resulted global markets to trade negatively.
Daily chart formed a wide range down bar candle closed near lower Bollinger band level after market opened lower, edge little upwards and plunge downwards all the way to closed at the low of the day.
Same old same old, FKLI is still trading in pullback correction phase within a little downside biased development.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistance or strength with moderate cut loss and profit target.

20111125 1709 Regional Markets EOD Daily Chart Study.

Hang Seng chart reading : downside biased with possible pullback.
KLCI chart reading : little downside biased.

20111125 1617 Global Market & Commodities Related News.

FOREX-Euro hits 7-week low as debt crisis festers
SINGAPORE, Nov 25 (Reuters) - The euro dipped to a fresh seven-week low against the dollar on Friday, struggling to find any traction with markets seeing no end in sight for the euro zone debt crisis.
"It does appear that international asset managers are now pulling out of the euro zone... It hasn't been a panic, but there is an obvious trend," said Gareth Berry, G10 FX analyst for UBS in Singapore, adding that the euro could drop to $1.300 in the next two or three months.

Asian shares, euro fall on Europe deadlock
TOKYO, Nov 25 (Reuters) - Asian shares and the euro fell to seven-week lows as European officials failed to soothe investor fears that the euro zone's debt crisis could trigger a credit crunch if funding costs run out of control.
"Risk appetite is very low and fear factor is very high," said Markus Rosgen, head of Asia strategy at Citigroup. "Basically people are fearful and whenever people are fearful,  equities tend to be cheap."

European Stocks Decline as Debt Crisis Deepens, Hungary Downgraded to Junk
European stocks fell, with the Stoxx Europe 600 Index extending its longest decline since August, after Hungary lost its investment grade at Moody’s Investors Service and Italy’s short-term borrowing costs surged to a record. U.S. index futures and Asian shares slid. The benchmark Stoxx 600 index dropped 0.2 percent to 219.49 at 8:01 a.m. in London. The gauge declined 0.2 percent yesterday after German Chancellor Angela Merkel said she remains opposed to joint euro-area bonds. Standard & Poor’s 500 Index futures expiring in December retreated 0.4 percent. U.S. markets were closed yesterday for Thanksgiving and will reopen for half a day’s trading today until 1:00 p.m. in New York. The MSCI Asia Pacific Index (MXAP) fell 1 percent. Italy’s two-year note yield rose to a euro-era record of 7.495 percent today.
Spain and Italy face paying more to borrow for two years than for a decade, echoing shifts that presaged Greece and Portugal seeking aid and suggesting skepticism about their new governments avoiding contagion.

Futures head for weekly declines on euro zone worries
KUALA LUMPUR, Nov 25 (Reuters) - U.S. grain futures fell, headed for weekly declines, as the lack of conclusive steps by euro zone leaders stoked fears the sovereign debt crisis is spreading to bigger economies including Germany.
"Consumption of commodities will slow down as global growth falters," said Ang Kok Heng, who helps manage about $400 million as chief investment officer at Phillip Capital Management in Kuala Lumpur.

China Q1 2012 soy imports seen up 18.5 pct on year -CNGOIC
BEIJING, Nov 25 (Reuters) - China, the world's top soy buyer, is expected to import about 13 million tonnes of the oilseed in the first quarter of 2012, 18.5 percent higher than the year-ago period, the official China National Grain and Oils Information Centre estimated.
Better crushing margins and recovering seasonal demand are seen spurring imports from November onwards. Imports in November are seen at 5.5 million tonnes and in December at 5 million tonnes, higher than October's 3.81 million tonnes, the centre said in a report.

Argentine farmers say costly credit may hurt output
BUENOS AIRES, Nov 24 (Reuters) - Argentine farmers face higher interest rates on bank loans during a key part of the planting season, which they say could affect world grains supply by reducing local investment in production.
Loans for prefinancing late-year sowing of soy and corn have popped 3 to 4 percentage points higher. The trend started in early October but sped up at the start of this month, after the government adopted controls meant to halt capital flight.

Argentine soy seeding swift, wheat harvest slower
BUENOS AIRES, Nov 24 (Reuters) - Farmers made quick progress to plant Argentina's 2011/2012 soy crop this week thanks to moist soils after weeks of plentiful rain, Buenos Aires Grains Exchange said on Thursday.
Argentina is a global top soymeal and soyoil exporter and the No. 3 soybean supplier. The U.S. Department of Agriculture (USDA) sees this season's soy output at 52 million tonnes, while the government sees up to 53 million.

EU clears 352,000 tonnes wheat exports this week
PARIS, Nov 24 (Reuters) - The European Union this week granted export licences for 352,000 tonnes of soft wheat, taking the total since the beginning of the 2011/12 (July-June) season to 6.1 million tonnes, official data showed on Thursday.
The total so far this season compared with 9.6 million tonnes of export licences cleared by the same stage in 2010/11.

New EU sugar exports anger Australia, Brazil producers
BRUSSELS, Nov 24 (Reuters) - The European Union approved on Thursday the export of 700,000 tonnes of "out-of-quota" sugar from Dec. 1, drawing an angry reaction from producers in Australia and Brazil, who accused the bloc of breaching its trade commitments.  The EU approved the exports on Thursday, along with the sale of 400,000 tonnes of out-of-quota sugar for food use within the bloc at a reduced levy and the opening of a tendering system for sugar imports from all non-EU countries at reduced duties.

Brent crude holds above $107 on call for Iran oil ban
SINGAPORE, Nov 25 (Reuters) - Brent crude held steady above $107 as nagging concerns about a euro zone debt crisis contagion offset threats to supply emerging from France's call for sanctions on Iran's oil exports.
"The European situation is still uncertain," said Tetsu Emori, a commodities fund manager at Astmax Investments in Tokyo. "The crisis is still ongoing and what happened in Germany has made investors quite nervous."

SINGAPORE, Nov 25 (Reuters) - London copper steadied but is on track for a fourth straight week of decline as a struggling global economy and a deepening euro zone debt crisis kept investors' hands off riskier assets.
"Unless we have news that provides a level of optimism, copper prices should remain under pressure. At the moment, it's just curve ball after curve ball after curve ball," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

Indonesia Tin Association tackles Timah on exports
PANGKAL PINANG/JAKARTA, Nov 24 (Reuters) - The Indonesia Tin Association (ITA) will ask PT Timah  the world's largest integrated miner, to halt all shipments as it tries to plug leaks in its eight-week old ingot export stoppage, an association official said.
The ITA, an industry group of 28 smelters from the world's top refined tin exporting country, met on Wednesday on the main producing island region of Bangka to discuss their ingot shipping ban.

Japan Oct rolled copper output down 11.5 pct yr/yr
TOKYO, Nov 25 (Reuters) - Japan's output of rolled copper product plunged 11.5 percent in October from a year earlier to 64,318 tonnes on a seasonally adjusted basis due to sluggish demand from the chip and electronics sectors, an industry body said on Friday.  
That marked a fourth consecutive month of year-on-year declines and an 8 percent decrease from September, the Japan Copper and Brass Association said.

METALS-LME copper drops 0.7 pct, eyeing 4th weekly loss
SINGAPORE, Nov 25 (Reuters) - London copper edged lower on Friday and is on track for a fourth straight week of decline as a struggling global economy and a deepening euro zone debt crisis kept investors' hands off riskier assets.
"Unless we have news that provides a level of optimism, copper prices should remain under pressure. At the moment, it's just curve ball after curve ball after curve ball," said Jonathan Barratt, managing director at Commodity Broking Services in Sydney.

PRECIOUS-Gold ticks lower; heads for 2nd straight weekly drop
SINGAPORE, Nov 25 (Reuters) - Gold edged down below $1,700 an ounce on Friday, heading for its second straight weekly fall, as the euro extended losses on growing fears the two-year-old debt crisis in Europe would drag on and eventually trigger a credit crunch.
"It's really draining the liquidity and it triggers, let's say, economic crisis, a stronger dollar overall. It will be tough. Technically, it doesn't look that great," said Dominic Schnider, an analyst at UBS Wealth Management.

20111125 1209 Malaysia Corporate Related News.

MISC exits container shipping business
MISC Bhd, the world’s largest owner-operator of liquefied natural gas tankers, has decided to quit the container shipping business due to difficult operating conditions. “The company’s decision to exit from the liner business is also hastened by the present difficult operating conditions in which the liner business suffered a total financial loss of USD789m (RM2.51bn) over the past three financial years that had impacted the overall financial performance of MISC,” it told Bursa Malaysia in a statement yesterday. MISC said its liner business is expected to cease operations by 30 June 2012. (BT)

SP Setia cancels London project
SP Setia confirmed that it was in talks with Irish group Real Estate Opportunities (REO) to acquire a stake in the redevelopment of the Battersea Power Station in south London but the deal had fallen through as the creditors of REO had rejected its preliminary offer. In an announcement to Bursa Malaysia yesterday, SP Setia said the lenders, Lloyds Banking Group Plc (Lloyds) and the National Asset Management Agency (NAMA), had in a letter dated 23 Nov, informed SP Setia that they did not intend to engage further on SP Setia's preliminary offer. The property group said it had on 18 Nov instructed its investment adviser to submit a conditional non-binding preliminary offer to acquire from Lloyds and NAMA, the senior debt facilities and the swap exposure and other related claims in the Battersea Power Station site and its holding company for USD262m (RM1.3bn). StarBiz

Gas Malaysia listing delayed to 1Q2012
The listing of Gas Malaysia, originally planned for the current quarter, may be postponed to early next year as the company has yet to fulfill certain conditions set by the SC, sources said. The SC had on 7 Oct granted conditional approval for the proposed listing on the Main market of Bursa Malaysia. Among the condition is a requirement that the company executes a new gas supply agreement with Petronas. (Financial Daily)

Genting Malaysia acquires London’s Fox Poker Club
Genting Malaysia has acquired Fox Poker Club through its subsidiary Genting Casinos UK for GBP7.75, (RM38.26m). According to the announcement, the Fox Poker Club holds a casino premises license and operates a poker club in Shaftsbury Avenue in central London. According to news reports, the club is London’s only fully licensed and dedicated poker service, as does Genting UK. (Financial Daily)

Hwang-DBS: No Alliance merger scheme
Hwang-DBS Bhd yesterday dismissed media reports of a merger scheme with Alliance Financial Group Bhd (AFG). "This is speculative and we have nothing to comment. So far the board has not deliberated on the possibility of any merger and we will take market conditions as a cue," its director Eric Ang told Business Times after Hwang-DBS' annual shareholders meeting at Hotel Equatorial. (BT)

XL Axiata eyes RM4.9bn from tower sale
Axiata Group Bhd’s Indonesia subsidiary is looking to raise IDR (RM4.9bn) by selling 7000 of its telecom towers next year; a top official was quoted as saying by the Jakarta media. “We are going to sell the towers anyway because we want to focus on our core business.” Hasnul, president of PT XL Axiata Tbk, said. “So far, no one has expressed interest”. (BT)

Dayang Enterprise has accepted the offer to subscribe to 45.012m new shares  which represent a 10% stake in Perdana Petroleum via private placement. It  said the subscription price would be based on the volume-weighted market  price for the five market days immediately preceding the price-fixing date and a  discount of not more than 5% but not less than the par value of Perdana shares  of 50 sen each.  Dayang said the proposed subscription was part of its plan to expand  and diversify its business and that it would provide the opportunity to  participate in potentially high-yielding contracts. (Bernama)  

Tenaga Nasional Bhd (TNB) expects a decision on the compensation it is  seeking from Petroliam Nasional Bhd (Petronas) to be finalised by mid-Dec or it  risks a cash crunch soon. The utility giant is seeking compensation over its huge  losses due to severe gas curtailment. TNB spent an additional RM2.1bn on fuel  oil and distillates to generate electricity due to severe gas curtailment in  Aug-FY11.  President Datuk Seri Che Khalib Mohamad Noh said negotiation with  all the relevant stakeholders was still ongoing. They are Performance  Management and Delivery Unit (Pemandu), Economic Planning Unit,  Petronas and TNB. Asked if a writeback will happen in Dec, Che Khalib  said the payment or compensation would come slightly later but it was  more important to have a compensation policy in place. (Starbiz)

Maybank Group has unveiled a new corporate identity for  Kim Eng and  announced a new management line-up, setting its aspiration to be the premier  investment banking service provider in Asean by 2015. This followed the  completion of the S$1.79bn acquisition of the securities and investment broking  group earlier this year. In a statement, Maybank said Kim Eng would be known  as Maybank Kim Eng and would adopt the tiger symbol as its new corporate  identity and embrace the yellow colour of group.  "It would also retain its corporate name for now in Singapore, Hong  Kong, India and Indonesia, reflecting only the new symbol and colour,  pending further regulatory approvals," it said. Maybank has named the  current CEO of Maybank Investment Bank, Tengku Datuk Zafrul  Tengku Aziz, CEO of Maybank Kim Eng to oversee its global activities in  11 countries.  It has named Ronald Ooi executive advisor of Maybank Kim Eng and  Tan Pei-San as head of international business to oversee the operations  in Philippines, Hong Kong, Vietnam, India, UK and US. (Bernama)

Volkswagen Group Malaysia said its completely knocked down (CKD)  models will be available to the public next year. This follows  DRB-HICOM  Bhd group managing director Datuk Seri Mohd Khamil Jamil's recent  announcement that the first batch of the Volkswagen Passat 1.8 CKD models  has  started its production roll-out at DRB-HICOM Automotive Complex in  Pekan.  To date, DRB-HICOM has assembled about 70 units of the Passat 1.8  CKD model, which will be used internally by Volkswagen Malaysia in  preparation of its launch.  In a statement, Volkswagen Malaysia said it is currently assessing the  market introduction and pricing strategy of the vehicle, and will make  an announcement at an appropriate time. Germany's Volkswagen AG  and DRB-HICOM Bhd signed an agreement for local vehicle assembly  of the Volkswagen CKD products in December last year. “DRB-HICOM  is the assembler of Volkswagen CKD products in Malaysia.  Volkswagen Malaysia is responsible for the market introductions of all  Volkswagen products, both CKD and CBU, into the Malaysian market,”  said Volkswagen Malaysia managing director Ricky Tay. "Volkswagen  has 62 manufacturing plants all over the world and each Volkswagen  vehicle produced has to meet the high standards that have been set  before introducing it into the market,” he added. (Sun)

AirAsia Bhd will not adhere to a planned increase in airport tax scheduled to  take place this month, the low cost carrier said in a statement posted on its  Facebook fan page. The carrier added that it will continue to lobby for the status  quo to remain. 'Look at the queue at the immigration, space for check-in  counters, quality of toilets, cleanliness of the facilities  - is it really worth the  increase?" - AirAsia Bhd head of commercial Jasmine Lee said in the statement.  Malaysia Airports Holdings Bhd (MAHB) had announced on October 27  2011, that it plans to proceed with a RM7 increase in airport tax or  passenger service charge, at the low cost carrier terminal in Kuala  Lumpur International Airports on November 15 2011. This would bring  the airport tax for LCCT to RM32. (BT) 

Notion VTec is confident of making up for its earnings losses due to the floods  in Thailand in the remaining quarters of FY12. The company is optimistic  because its two major customers, Seagate and Western Digital, are recovering  well from the floods. The company said it will set aside RM3m for the provision  of submerged finished goods and RM2m for the provision of replacement  machinery. (Financial Daily)

Dialog Group Bhd is bidding for several projects under Petroliam Nasional  Bhd's (Petronas) brownfields in Malaysia, says executive chairman Ngau Boon  Keat. The company is bidding for the job with a foreign firm."Petronas is  intensifying its marginal oilfield development and there will be more jobs in  both upstream and downstream activities," he told reporters after  the  company's AGM yesterday.  He declined to reveal the tender value but it is understood that  brownfield jobs can touch as high as US$1bn (RM3.19bn). In Aug,  Dialog said it was part of the second consortium Petronas picked to  develop the Balai marginal oil cluster, off Bintulu in Sarawak.(BT)

Standard & Poor’s (S&P) announced that it is buying a 4.9% stake in RAM  Holdings from the Asian Development Bank. Areas for further cooperation  include sharing analytical best practices and research, joint seminars, contributions to industry sector reports and expanded career opportunities for  staff. (Bernama)

Syarikat Prasarana Negara Bhd (Prasarana) is implementing full  ticketing integration of the RapidKL Kelana Jaya Line and Ampang Line on Nov  28. The integrated ticketing system uses a new MyRapid Pass and tokens for  single journeys.  The new system would also allow customers to purchase and  re-load their tickets online in future via the website.  The programme will continue with integration of the RapidKL Monorail  in 1Q12, before being extended to the whole system, to cover the  RapidKL bus services in 2Q12. Current daily ridership for the three rail  services is 420k.  INDRA-IRIS AFC Consortium (IIAC) is the new  system installed by a Malaysian-Spanish JV.  It costs RM115.2m.  (Bernama) 

20111125 1208 Global Economic Related News.

Japan: S&P signals downgrade on the horizon
S&P yesterday said Japanese Prime Minister Yoshihiko Noda's administration had not made progress in tackling the public debt burden, an indication it might be preparing to lower the nation's sovereign grade. "Japan's finances are getting worse and worse every day, every second … It may be right in saying that we are closer to a downgrade but the deterioration has been gradual so far," said S&P director of sovereign ratings Takahira Ogawa. (Bloomberg)

Taiwan: GDP rises at slowest pace since 2009
Taiwan cut its growth forecasts for this year and next after the island’s economy expanded at the slowest pace since 2009 last quarter, underscoring concern that a faltering global recovery is threatening Asia. GDP rose 3.4% in 3Q11 against a revised 4.5% registered in 2Q11. The statistics bureau lowered its 2011 expansion forecast to 4.5% and said growth will be 4.2% next year. The government previously estimated a 4.6% expansion for 2011 and 4.4% growth in 2012. (Bloomberg)

UK: Economic growth accelerates, boosted by stockbuilding
UK economic growth accelerated in the third quarter as stockbuilding and government spending offset weak consumer market spending and business investment. GDP rose 0.5% from the previous quarter, when it increased 0.1%. Consumer spending was flat on the quarter, while investment fell 0.2%. (Bloomberg)

EU: Merkel holds out on bigger ECB role
German Chancellor Angela Merkel again ruled out joint euro-area borrowing and an expanded role for the European Central Bank in fighting the debt crisis. “Euro bonds would level the difference in euro-region interest rates. It would be a completely wrong signal to ignore those diverging interest rates because they're an indicator of where work still needs to be done,” she said. (Bloomberg)

Germany: Business sentiment unexpectedly rose in November
German business confidence unexpectedly rose for the first time in five months in November, defying Europe’s worsening debt crisis. The Munich-based Ifo institute’s business climate index, based on a survey of 7,000 executives, increased to 106.6 from 106.4 in October. (Bloomberg)

Germany: Consumer, company spending boosted 3Q11 growth
Germany’s third-quarter economic rebound was driven by consumer and company spending even as the debt crisis threatened to drag the euro area into recession. Private consumption expanded 0.8% from the second quarter and company investment in plant and machinery jumped 2.9%. GDP advanced 0.5% from the previous three months, marking acceleration from the 0.3% growth notched in the second quarter. (Bloomberg)

Investments in Malaysia may drop-off next year, said  International  Trade and Industry Minister Datuk Seri Mustapa Mohamed. Exports may  grow 8-9% this year, he noted.  Malaysia is on an investment drive to hit an average of 12.8% in annual  growth in private investment till 2015 under its 10th Malaysia Plan,  although investments grew only 2% on average in 2006-10.  To hit the growth target, the country would need to generate an average  of RM115bn in private investment annually.  So far, some RM15bn worth of ETP related investments have been  committed for 2011 of which 66% or RM10bn have actually started as at  15 Oct, he added. (Malaysian Insider)

Inflation is no longer a concern as it has already peaked according to Minister in the Prime Minister's Department in charge of the Economic Planning Unit, Tan Sri Nor Mohamed Yakcop. The recent Oct consumer price index of  3.4% yoy was not a concern although it was 0.2% higher mom, which was attributed to higher food and transport cost, he said. “My view is inflation has peaked and we will see it moderating in the next few months,” he noted. On  growth, although 2012 will be a challenging year as the global economic situation is not strong, he maintained his growth forecast of 5-6% as the government would have already started on projects and policies which are pro-growth. (Financial Daily)

India approved allowing  overseas companies to own as much as 51% of  retail chains that sell more than one brand. Overseas retailers may be required  to invest a minimum of US$100m in India, with at least half of the total  investment in back-end infrastructure. (Bloomberg)

India’s food inflation moderated to 9.0% yoy in the week ending 12 Nov  from 10.6% in the previous week. (Bloomberg)

Consumer prices in Vietnam rose 19.83% yoy, after climbing 21.59% in Oct,  the General Statistics Office said in Hanoi today. Prices rose 0.39% mom in Nov.  (Bloomberg)

Vietnamese exports rose to US$8.6bn in Nov from US$8.39bn last month,  the Statistics Office said. Exports in 11M11 climbed 34.7% yoy (+34.6% last  month) to US$87.2bn. The country posted a US$700m trade deficit in Nov.  (Bloomberg)

China's factory growth in 2012 is likely to fall by 1-2% pts from 11% this year  due to weakening global demand, the Ministry of Industry and Information  Technology said on Thursday. (Reuters)

China's recent move to revise reserve requirements for several rural banks does  not amount to a cut in their reserve requirement ratio, the central bank was  quoted as saying on Thursday.   Some investors had speculated that the adjustment was part of a  government campaign to relax monetary policy in some quarters of the  economy.  But the Financial News, published by the People's Bank of China,  quoted the central bank's Zhejiang branch as saying that the fall in the  reserve requirement ratio for six rural banks to 16% had kicked in  automatically after a one-year policy plan expired this month. (Reuters)

20111125 1204 Global Market & Commodities Related News.

Japan Consumer Prices Fall on World Slowdown (Bloomberg)
Japan’s consumer prices fell for the first time since June, casting doubt on central bank forecasts for the world’s third-biggest economy to emerge from more than a decade of deflation. Consumer prices excluding fresh food slid 0.1 percent in October from a year earlier, the statistics bureau said in Tokyo today. Barclays Capital says declines may persist for two years even as the BOJ forecasts gains of 0.1 percent for the year starting April and 0.5 percent in the following 12 months. Commodity prices are sinking on the risk of another global slump, while a yen trading near postwar highs has cut the cost of imports. As Japan struggles to recover from the March earthquake and tsunami that left about 19,000 people dead or missing, declining prices may weigh on consumer spending and erode company profits.
“It’s highly probable that consumer prices will keep falling at a moderate pace as the effect of oil prices and the strong yen gradually surface,” said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo. “Price growth isn’t in sight for Japan.”

GLOBAL MARKETS-Asian shares, euro fall on Europe deadlock
TOKYO, Nov 25 (Reuters) - Asian shares and the euro both hovered near seven-week lows on Friday as European officials failed to soothe investor fears that the euro zone's debt crisis could trigger a credit crunch if funding costs run out of control.
"Disappointment that officials continue to tinker with the trivial rather than consider the bold pushed risk appetites lower and increased the downside risks to the outlook for the European sovereign debt.

COMMODITIES-Oil, metals slide on German bond sale, China data
NEW YORK/LONDON, Nov 23 (Reuters) - Commodities slid on Wednesday after top raw material consumer China reported weaker factory growth and the near flop of a German bond sale raised concerns the debt crisis was threatening Europe's biggest economy.
"It is a complete and utter disaster," said Marc Ostwald, strategist at Monument Securities in London, after the Bundesbank was forced to retain almost half of a sale of 6 billion euros of debt due to a shortage of bids by investors.

Oil climbs on stock draws, France moots Iran import ban
LONDON, Nov 24 (Reuters) - Oil prices rose modestly in holiday-thinned trading on Thursday after France said it was pushing for a Europe-wide ban on crude imports from Iran, ratcheting up geopolitical risk in a tightening market.
"The bottom line is that while it is relatively easy (and not very courageous) for countries that do not import Iranian crude oil to call for an embargo on imports, it will be very difficult for countries that do import Iranian crude oil to join in such non-UN sanctions," said Olivier Jakob, managing director at Petromatrix in Zug, Switzerland.

Japan sees 2012 LNG demand rising by 20 mln T
MOSCOW, Nov 24 (Reuters) - Japanese demand for liquefied natural gas (LNG) is expected to rise by 20 million tonnes next year in the aftermath of the Fukushima nuclear disaster, a Japan Oil, Gas and Metals National Corp company official said on Thursday.
"Additional LNG demand will rise by 20 million tonnes in 2012 (compared to 2010) if all the reactors under inspection do not restart their operations," Daisuke Harada, JOGMEC's deputy general manager, told an energy conference in Moscow.

Libya's oil flows at 750,000 bpd, recovery
TRIPOLI, Nov 24 (Reuters) - Libyan oil output has climbed to 750,000 barrels per day (bpd) and remains on track to reach pre-war production levels by the end of next year, the chairman of the National Oil Corporation (NOC) said on Thursday.
"We're building up production, we're doing fine," Nuri Berruien told Reuters in an interview.

Euro Coal-S.Africa coal trades below $100/T
LONDON, Nov 24 (Reuters) - Physical South African coal prices broke through support at $100.00 a tonne on Thursday and further steep falls are likely due to the pressure of unsold tonnage and limp demand in both the Atlantic and Pacific markets.
"Everything's off, macros are bearish, you can't ship more than a teaspoon of coal in a barge on the Rhine in Germany due to low water levels, nobody needs coal and there is a huge amount coming to Europe from the U.S., bought in 2010 and from elsewhere," one major European trader said.

20111125 1012 Global Market Related News.

Asia Stocks Fall as Merkel Rules Out Euro Bonds
Asian stocks fell for a third day after German Chancellor Angela Merkel ruled out common euro-area bonds and a bigger role for the European Central Bank in fighting the region’s debt crisis, damping the earnings outlook for Asian exporters. Commonwealth Bank of Australia (CBA), Australia’s No. 1 lender by market value, declined 1.9 percent. Hyundai Motor Co. (005380), South Korea’s biggest carmaker by market value, lost 2.3 percent. Elpida Memory Inc. (6665), the world’s third-largest memory chipmaker, soared 7.9 percent after SMBC Nikko Securities Inc. boosted the equity rating to “outperform” from “neutral.” Woodside Petroleum Ltd. (WPL) fell 5.7 percent after Australia’s second-biggest oil producer narrowed its annual output guidance. The MSCI Asia Pacific Index dropped 0.3 percent to 109.81 as of 10:11 a.m. in Tokyo with seven of 10 industry groups sliding. The measure has lost 3.9 percent this week, headed for a fourth weekly loss. The MSCI Asia Pacific excluding Japan Index lost 0.5 percent.

Emerging Stock Funds Post $2.7 Billion Outflows on Europe, Citigroup Says
Emerging-market equity funds (BBOEEEUS) reported net outflows in the week ended Nov. 23, amid concerns Europe’s debt crisis is worsening, Citigroup Inc. said. Funds investing in developing-nation stocks withdrew $2.7 billion in the period, Citigroup analysts led by Markus Rosgen wrote in a report today, citing data compiled by EPFR Global. South Korea had the most outflows in the Asia-excluding-Japan region during the week, according to the report. Concerns over European debt mounted this week after bids for German bonds in a sale fell 35 percent short of the amount on offer. Euro bonds are “not needed and not appropriate,” German Chancellor Merkel said at a press conference with Italian Prime Minister Mario Monti and French President Nicolas Sarkozy in Strasbourg, France yesterday.
“The numerous things going on in Europe, with the German bond auction the more recent one, have once again brought people back to worry about the systemic crisis,” Kelly Kwok, one of the Citigroup analysts cited in today’s report on fund flows, wrote in an e-mail.

Wal-Mart Allowed to Own 51% of India Ventures
India approved allowing overseas companies to own as much as 51 percent of retailers selling more than one brand, paving the way for global companies such as Wal- Mart Stores Inc. (WMT) and Tesco Plc (TSCO) to own stores. Trade Minister Anand Sharma told reporters after a cabinet meeting yesterday that he will make a statement on the government’s rationale for opening multibrand retail to foreign investment in parliament today. Specific conditions linked to the approval weren’t immediately known. Wal-Mart and Carrefour SA (CA) have been seeking to enter the world’s second-most populous nation to tap a market expected to double to $785 billion by 2015 from $396 billion this year, according to Business Monitor International. Organized stores account for about 5 percent of India’s retail market, according to the Associated Chambers of Commerce and Industry of India.

Treasuries Drop as 10-Year Yield’s Approach to Record Low Seen Unjustified
Treasuries fell, eroding a weekly gain, on speculation yields that dropped to within 20 basis points of the record low aren’t justified given the outlook for economic growth. U.S. 10-year notes yield negative 1.59 percent after accounting for costs in the economy, versus negative 0.31 percent in Germany and positive 0.8 percent in Japan. Treasury rates tumbled this week as the spreading European debt crisis increased demand for the relative safety of U.S. securities. “Everything is trading on European uncertainty, and you have a massive flight to quality into the U.S.,” said Bin Gao, the Hong Kong-based head of interest rate research for Asia and the Pacific at Bank of America Merrill Lynch. “Treasuries are overvalued” as a result, he said.

Dollar Strengthens, Euro Drops to Seven-Week Low on Sovereign Debt Crisis
The dollar climbed against all its major peers, extending this week’s gains as investors sought the safest assets on concern economies in the euro area will worsen as leaders struggle to halt the region’s debt crisis. The euro dropped to a seven-week low against the dollar as Italy prepares to sell bills today after the country’s two-year yield soared to a 14-year high yesterday. The Australian dollar was set for a fourth straight week of declines as Asian stocks extended a global rout in equities after German Chancellor Angela Merkel’s rejection of joint euro bonds damped optimism about a potential remedy for the region’s fiscal struggles. “Risk sentiment is still pretty poor as there doesn’t seem to be one clear solution that will be swift for Europe,” said Besa Deda, chief economist at St. George Bank Ltd. in Sydney. “The U.S. dollar would get some support in this environment particularly, as the euro is out of favor.”

CIC May Give ‘Indirect’ Support to Europe: Wang
China’s sovereign wealth fund may give “indirect” support to Europe through investments without being the nation’s main route for any aid, said Jesse Wang, the executive vice president of China Investment Corp. The fund “wouldn’t be the main channel” if China helps tackle the sovereign-debt crisis, Wang said in an interview at a forum in Beijing yesterday. “However, if during such a process there are good investment opportunities in Europe and if CIC’s investment helped the destination company or country to recover and developed the economy, that would be indirect support.” European leaders are looking to China, the holder of the world’s largest foreign-exchange reserves at $3.2 trillion, as a source of funds as the region’s crisis threatens to trigger a global slump. China is among countries that may be willing to support Europe through the International Monetary Fund if policy makers agree on a plan, World Bank President Robert Zoellick said in a Nov. 17 interview.

Japanese Stocks Swing Between Gains, Losses
Japanese stocks (NKY) swung between gains and losses after German Chancellor Angela Merkel said she remains opposed to common euro-area debt sales. Elpida Memory Inc. led chip stocks higher. Fanuc Corp., the maker of industrial robots that gets about 11 percent of sales from Europe, declined 1.7 percent. Nissen Holdings Co. dropped 2.4 percent after the mail-order business operator said sales on a parent basis fell. Elpida Memory, the world’s third-largest memory-chip maker, jumped 7.6 percent after SMBC Nikko Securities Inc. upgraded the stock to “outperform.” “We are likely to see investors continue to exercise caution in the market,” said Stan Shamu, a strategist at IG Markets in Melbourne. “There’s a feeling Germany is no longer immune to this whole situation and they may act further, which is obviously why everyone is calling for common-euro bonds.”

Japan Consumer Prices Fall as Growth Slows
Japan’s consumer prices fell for the first time in four months, an indication that slowing global demand and the yen’s strength are weighing on growth and prolonging deflation. Consumer prices excluding fresh food fell 0.1 in October, the statistics bureau said today in Tokyo, matching the median forecast of 32 economists surveyed by Bloomberg News. The yen’s surge to postwar highs against the dollar is lowering import costs, putting pressure on prices that have also been damped by weaker demand at home. Europe’s deepening sovereign debt crisis is also threatening the outlook for growth in the world’s third-largest economy. “It’s highly probable that consumer prices will keep falling at a moderate pace as the effect of oil prices and a the strong yen gradually surface,” Yoshiki Shinke, a senior economist at Dai-Ichi Life Research Institute in Tokyo, said before the report. “Price growth isn’t in sight for Japan.”

Merkel Rejects Euro Bonds Again After Auction
German Chancellor Angela Merkel again ruled out joint euro-area borrowing and an expanded role for the European Central Bank in fighting the debt crisis. Euro bonds are “not needed and not appropriate,” Merkel said today at a press conference with Italian Prime Minister Mario Monti and French President Nicolas Sarkozy in Strasbourg, France. She said euro bonds would “level the difference” in euro-region interest rates. “It would be a completely wrong signal to ignore those diverging interest rates because they’re an indicator of where work still needs to be done.” Merkel, the leader of Europe’s biggest economy, has so far backed a focus on debt reduction and closer economic coordination, calling for a revision of European Union treaties, a move that threatens to bog down in a multiyear negotiation, as core euro economies risk succumbing to the contagion that began in Greece in 2009.

Business Confidence in Germany Advances for First Time Since June: Economy
German business confidence unexpectedly rose for the first time in five months in November, defying Europe’s worsening debt crisis. The Munich-based Ifo institute’s business climate index, based on a survey of 7,000 executives, increased to 106.6 from 106.4 in October. Economists expected a decline to 105.2, according to the median of 40 forecasts in a Bloomberg News survey. “Although downside risks certainly remain, doomsday is not around the corner,” said Andreas Rees, chief German economist at UniCredit Markets and Investment Banking in Munich. “A recession, and especially a deep and nasty one, is not in the pipeline.”

Hungary Cut to Junk at Moody’s After IMF Plea
Hungary lost its investment-grade rating at Moody’s Investors Service after 15 years as the Cabinet seeks International Monetary Fund help to boost confidence in the European Union’s most-indebted eastern member. The foreign- and local-currency bond ratings were cut one step to Ba1, the highest junk-level score, from Baa3, the company said today in a statement. Moody’s, which awarded Hungary its investment grade in 1996, assigned a negative outlook. The country is rated the lowest investment grade at Standard & Poor’s and Fitch Ratings. The government has scrapped two debt sales and reduced the size of another eight auctions in the last three months as the euro region’s debt crisis deepened. Prime Minister Viktor Orban’s Cabinet on Nov. 17 asked for IMF “insurance” that doesn’t entail a loan and doesn’t impose conditions.

U.K. Economic Growth Accelerates, Boosted by Stockbuilding
U.K. economic growth accelerated in the third quarter as stockbuilding and government spending offset weak consumer spending and business investment. Gross domestic product rose 0.5 percent from the previous quarter, when it increased 0.1 percent, the Office for National Statistics said today in London. The figure matched a previous estimate and the median forecast in a Bloomberg News survey of 32 economists. Consumer spending was flat on the quarter, while investment fell 0.2 percent. Underlying growth “is weak,” the office said. The Bank of England, which has restarted bond purchases to aid the recovery, said yesterday that underlying growth was probably weaker than the reported figure due to “heightened uncertainty” related to the euro-area crisis. The bank slashed its 2012 growth forecast by more than half and policy makers have signaled more stimulus may be needed in future.

BOE’s Miles Sees Risk a Country May Exit Euro Area as Debt Crisis Persists
Bank of England policy maker David Miles said there’s a risk a country may leave the 17-nation euro area and that the threat from the region’s crisis has increased uncertainty about the outlook for the U.K. economy. “I don’t think any of us can feel confident one way or another about whether all the countries that are currently in the euro zone will still be in it,” Miles said in an interview on ITV broadcast late yesterday. In the U.K., “the return to more normal rates of growth is something that is going to be a gradual process over the course of the next two years,” Miles said. “There’s plenty of risks and that might turn out to be too optimistic, that might turn out to be too pessimistic.”

20111125 1011 Global Commodities Related News.

ITS CPO export down 4.3% to 1,335,328 tonnes for the period of 1~25 Nov 2011.
SGS CPO export down 1.7% to 1,342,955 tonnes for the period of 1~25 Nov 2011.

Japan to Purchase Most Wheat in a Decade as Corn Costs Gain, Ministry Says
Japan, the world’s largest corn buyer, may buy less of the grain as feed-wheat imports almost quadruple this year to the highest level since 2001, as livestock producers seek to cut costs. Feed-wheat imports may surge to 430,000 metric tons from 112,000 tons in the year ended March 31, said Ikuho Tomita, deputy director at the agriculture ministry’s feed supply and demand planning office. Imports were 473,000 tons in 2001. Higher imports may stem a 25 percent decline in Chicago wheat futures this year as the United Nations expects the biggest-ever global harvest while Russia and Ukraine eased export restrictions, boosting supply. Feed wheat was offered to Japanese buyers at about $50 a ton cheaper than U.S. corn as shippers compete for sales, said Nobuyuki Chino, president of Continental Rice Corp. in Tokyo.

Sugar Production to Reach Record in Brazil as Crops Expand
Sugar output in Brazil’s Center South, the world’s largest producing region, will jump to a record next year as crops expand and recover from a drought, the head of the country’s largest sugar trading group said. Output will rise to 34 million metric tons next year, Luis Pogetti, chairman of the Copersucar SA trading cooperative that accounts for 10 percent of global sugar exports, said in an interview in Sao Paulo Nov. 21. This year mills in the region produced 30.8 million tons, industry group Unica said Nov. 1. Copersucar is a member of Unica, which will release its first forecast for next year’s crop on Dec. 13. Growers in the Center South, which produces about 90 percent of Brazil’s sugar and ethanol, are renewing and expanding cane crops after freezing weather this year damaged plants that had also been harmed by drought in previous harvests. Brazil, the world’s largest sugar producer, is the source of about 54 percent of global exports of the sweetener, according to the U.S. Department of Agriculture.

Crude Oil Climbs From Two-Week Low on German Confidence, Saudi Violence
Oil rose, trimming a second weekly decline, as increased German business confidence countered bets that Europe’s debt crisis will spread and violence in Saudi Arabia raised concern crude supplies may be threatened. Futures advanced as much as 1.2 percent, climbing from the lowest settlement in two weeks on Nov. 23. German confidence rose for the first time in five months in November, according to a business climate index yesterday. Four people were killed and nine wounded in clashes between Shiite Muslims and Saudi Arabian security forces in the oil-rich Eastern Province, the official Saudi Press Agency said. The country is the world’s largest exporter of the fuel. Crude for January delivery gained as much as $1.14 to $97.31 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.66 at 11:44 a.m. Sydney time. Prices are down 0.8 percent this week and 15 percent higher the past year.

Biggest Gold Hoard Ever Bolstering Bullish Bets From Traders: Commodities
Gold traders are more bullish after investors accumulated the biggest-ever hoard of the metal, with Europe’s deepening debt crisis driving them to protect their wealth with this year’s second-best performing commodity. Eighteen of 26 surveyed by Bloomberg expect bullion to rise next week. Holdings in exchange-traded products backed by gold reached a record 2,350.8 metric tons on Nov. 23, now valued at $128.5 billion, according to data compiled by Bloomberg. Hedge funds and other speculators increased their net-long position, or bets on higher prices, for four weeks, the longest stretch since March, Commodity Futures Trading Commission data show.
Almost $12 trillion was wiped off the value of global equities since May on mounting concern about slower global growth, driving investors to what are perceived as the safest assets. Yields on Treasuries fell to a near-record low and gold is heading for an 11th consecutive annual gain. Bullion beat every other member of the Standard & Poor’s GSCI gauge of 24 commodities this year except for gasoil.