Asian Stocks Advance on Greek Debt Talk Progress, Toyota Profit Forecast (Source: Bloomberg)
Feb. 8 (Bloomberg) -- Asian stocks rose for a third day as Greece’s government edged closer to securing a bailout package and Toyota Motor Corp. (7203) raised its profit forecast. Toyota rallied 2.8 percent in Tokyo after Asia’s largest carmaker raised its earnings outlook by 11 percent as new models boosted sales. Panasonic Corp. (6752) advanced 2.4 percent amid a report the company is in talks with Fujitsu Ltd. and Renesas Electronics Corp. to merge their system chip operations. BHP Billiton Ltd. (BHP) slid 0.8 percent in Sydney after posting earnings that fell short of analyst estimates. The MSCI Asia Pacific Index climbed 0.3 percent to 125.35 as of 9:22 a.m. in Tokyo. Japan’s Nikkei 225 Stock Average and the broader Topix Index both advanced 0.6 percent. Australia’s S&P/ASX 200 Index increased 0.1 percent.
Japanese Stocks Advance on Greece Bailout Talks, Improved Toyota Forecast (Source: Bloomberg)
Feb. 8 (Bloomberg) -- Japanese shares rose, with the Nikkei 225 (NKY) Stock Average set for its highest close in more than three months, as Greece’s government edged closer to securing a second debt bailout and Toyota Motor Corp. (7203) raised its earnings forecast. Canon Inc. (7751), a Japanese camera maker that gets 31 percent of its sales in Europe, rose 1 percent. Toyota, Asia’s largest automaker, added 2.8 percent after raising its net-income outlook by 11 percent as new models boosted sales. Fujitsu Ltd. (6702) climbed after a report it’s in talks with Panasonic Corp. (6752) and Renesas Electronics Corp. (6723) to merge chip operations. The Nikkei 225 Stock Average rose 0.7 percent to 8,975.80 as of 9:18 a.m. in Tokyo, headed for its highest close since Oct. 31. The broader Topix Index gained 0.6 percent to 777.66.
Dow Average Advances to Highest Level Since 2008 on Greek Rescue Talks (Source: Bloomberg)
U.S. stocks advanced, sending the Dow Jones Industrial Average to its highest level since May 2008, as Greece made progress on measures to secure international aid. Seven out of 10 groups in the Standard & Poor’s 500 Index gained, helping the measure rebound from an earlier decline. McDonald’s Corp., the world’s biggest restaurant chain, added 1.4 percent ahead of its sales report. Yum! Brands Inc., owner of the KFC and Taco Bell fast-food chains, climbed 2.6 percent as earnings surged 30 percent. Anadarko Petroleum Corp. (APC), the biggest U.S. independent oil and natural-gas producer by market value, increased 5.2 percent as profit beat estimates. The S&P 500 rose 0.2 percent to 1,347.05 at 4 p.m. New York time, wiping out an earlier decline of as much as 0.6 percent. The Dow advanced 33.07 points, or 0.3 percent, to 12,878.20.
European Stocks Slide for Second Day; Swatch, UBS Decline After Earnings (Source: Bloomberg)
European stocks declined for a second straight day as Greek talks on measures needed to get a second bailout continued and China said industrial-output growth is likely to slow. Bayerische Motoren Werke AG (BMW) and Rio Tinto Group led carmakers and mining companies lower. LVMH Moet Hennessy Louis Vuitton SA (MC) lost 2.6 percent after three Bulgari directors sold a 558 million-euro ($733 million) stake. Swatch Group AG (UHR), the world’s biggest watchmaker, sank 4 percent as profit trailed projections. Banco Comercial Portugues SA (BCP) jumped 21 percent. The Stoxx Europe 600 Index declined 0.3 percent to 263.55 at the close of trading. The gauge has still advanced 7.8 percent this year amid optimism that the euro area will contain its sovereign-debt crisis and that the economic recovery in the U.S. remains intact.
Emerging-Market Stocks Rise as Greece Meetings May Signal Deal Progress (Source: Bloomberg)
Emerging-market stocks rose to a six- month high as investors bet Greece will reach an agreement for a second bailout, decreasing the risk Europe’s debt crisis will drag down global growth. The MSCI Emerging Markets Index advanced 0.1 percent to 1048.56 at the close in New York, the highest since Aug. 4. Brazil’s Bovespa index rose to a nine-month high. The Shanghai Composite Index slipped 1.7 percent, the biggest drop in three weeks. Russia’s Micex Index retreated 0.9 percent, and the FTSE/JSE Africa All Share Index fell 0.6 percent in Johannesburg to the lowest since Jan. 31. Greek Prime Minister Lucas Papademos was to meet tonight with officials from the European Commission, the European Central Bank, and the International Monetary Fund to discuss the final details of terms for a 130 billion-euro ($172 billion) rescue package. He postponed until tomorrow a meeting with the heads of the political parties supporting his caretaker government.
Euro softer on Greece; Aussie jumps on RBA surprise
TOKYO, Feb 7 (Reuters) - The euro nudged lower in Asia, though most traders clung to hopes Greece would finally clinch a rescue package despite its politicians postponing a decision to.
"The $1.3230 area has proved strong resistance on a number of occasions, so once the Greek deal is reached the euro will most likely test it again," said Teppei Ino, currency analyst at Bank of Tokyo-Mitsubishi UFJ.
U.S. Job Openings Rise by Most in Almost a Year in Recovery Sign: Economy (Source: Bloomberg)
Job openings in the U.S. increased in December by the most in almost a year, showing employers are gaining confidence the economy will keep growing in 2012. The number of positions waiting to be filled climbed by 258,000, the biggest gain since February 2011, to 3.38 million, the Labor Department said today in Washington. Excluding government agencies, openings at private employers climbed to the highest level since August 2008. More openings mean companies may be looking beyond the European financial crisis and are making plans to expand this year as sales grow. Payrolls increased by 243,000 workers last month after a 203,000 gain in December, and the jobless rate fell to 8.3 percent, a three-year low, Labor Department figures showed on Feb. 3.
Bernanke: Joblessness Understates Weakness (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke said the 8.3 percent rate of unemployment in January understates weakness in the U.S. labor market. “It is very important to look not just at the unemployment rate, which reflects only people who are actively seeking work,” Bernanke said today in response to questions at a hearing before the Senate Budget Committee in Washington. “There are also a lot of people who are either out of the labor force because they don’t think they can find work” or in part- time jobs. The jobless rate unexpectedly fell to 8.3 percent in January, a government report showed on Feb. 3. Bernanke’s remarks indicate that his view that the labor market is a “long way” from returning to normal hasn’t changed since he used the same phrase when he testified to the House Budget Committee on Feb. 2.
Bernanke: Labor Market ‘Long Way’ From Normal (Source: Bloomberg)
Federal Reserve Chairman Ben S. Bernanke repeated that the job market is still far from healthy after signs of economic improvement over the past year, and he called on lawmakers to reduce the long-term budget deficit. “We still have a long way to go before the labor market can be said to be operating normally,” Bernanke said in testimony prepared for the Senate Budget Committee that is identical to remarks he gave on Feb. 2 to the House Budget panel. “Particularly troubling is the unusually high level of long-term unemployment.” The jobless rate unexpectedly fell to 8.3 percent in January, a government report showed on Feb. 3. Bernanke’s testimony today indicated that his views on the health of the labor market haven’t changed, even though he didn’t refer to the January data. The economy added 243,000 jobs last month, according to the report, exceeding the most optimistic forecast in a Bloomberg News survey of economists.
U.S. Consumer Credit Climbed by $19.3B in Dec. (Source: Bloomberg)
Consumer borrowing in the U.S. rose more than forecast in December, driven by demand for auto and student loans. Credit increased by $19.3 billion to $2.5 trillion, Federal Reserve figures showed today in Washington. The gain topped the $7 billion median forecast of economists surveyed by Bloomberg News and followed a $20.4 billion advance the prior month. Consumers “are willing to take on this debt because there is some increasing degree of confidence in the economy,” said Ken Mayland, president of ClearView Economics LLC in Pepper Pike, Ohio, who projected credit would climb by $15 billion, the highest in the Bloomberg survey. “Consumers over the past several years have done a pretty good job of repairing their balance sheets.”
China Central Bank Vows Support for Homebuyers (Source: Bloomberg)
China’s central bank pledged support for first-home buyers as a crackdown on real-estate speculation threatens to trigger a property slump in the world’s second- biggest economy. Officials will increase support for construction of affordable housing and ensure that “loan demand from first-home families” is met, the People’s Bank of China said on its website yesterday. A government clampdown aimed at make housing affordable is cooling prices and driving down transactions as Europe’s sovereign-debt crisis caps export demand. Fitch Ratings said yesterday that a “hard landing” for China’s economy is a key global risk, after the International Monetary Fund cautioned Feb. 6 that a deterioration in Europe could cut the nation’s growth rate almost in half. “The government doesn’t want to see home transactions slide too fast -- that may hurt economic growth,” said Lu Ting, a Hong Kong-based economist at Bank of America Corp.
S. Korea Set to Follow Australia Rate Pause (Source: Bloomberg)
South Korea will probably follow Australia’s lead and refrain from cutting interest rates tomorrow as the global economy shows signs of strength and officials highlight price pressures. The Bank of Korea will keep the benchmark seven-day repurchase rate unchanged at 3.25 percent according to 18 of 19 economists in a Bloomberg News survey. One analyst sees a cut to 3 percent. U.S. growth, “robust” indicators from China and progress in taming Europe’s debt crisis encouraged Australian policy makers to keep rates on hold yesterday, the central bank indicated. South Korea’s expansion may gradually pick up pace in the second half of this year as global conditions improve, the Bank of Korea said yesterday .
India Predicts Weakest Economic Growth Since 2009, Adding to Rate-Cut Case (Source: Bloomberg)
India’s government predicted the weakest economic expansion this year since 2009, adding pressure on the central bank to reduce interest rates. Gross domestic product will probably rise 6.9 percent in the 12 months through March from a year earlier, the Central Statistical Office said in a statement in New Delhi today. The median of 15 estimates in a Bloomberg News survey was 7 percent. Asia’s third-largest economy expanded 8.4 percent in 2010-2011. Growth has slowed after the Reserve Bank of India raised rates by a record amount from 2010 until October last year to fight price increases and as Europe’s debt crisis and policy gridlock deter investment. The central bank has signaled readiness to follow nations from Brazil to Indonesia in lowering borrowing costs if inflation eases further, saying the government can help by curbing the country’s budget deficit.
Greek Haggling Drags on as Meeting to Seal Terms of Second Bailout Delayed (Source: Bloomberg)
Greek Prime Minister Lucas Papademos is set to negotiate with leaders of the political parties supporting his caretaker government after Athens missed another deadline to secure a second aid package. Papademos will see the chiefs in Athens today after delaying the meeting for a second time in as many days while Greek officials and international creditors haggle over the terms. Late last night, he held an unscheduled meeting with the so-called troika, comprising the European Commission, the European Central Bank and the International Monetary Fund, to put the final touches on terms required for a 130 billion-euro ($172 billion) rescue package.
Yesterday’s delay was yet another hitch in completing a package that’s been on the table since July. The government is struggling to arrange financing to avert a collapse of the economy, risking a new round of contagion in the euro area. With the country facing a 14.5 billion-euro bond payment on March 20, German Chancellor Angela Merkel warned this week that “time is running out” to reach an accord.
Greece, Troika Work on Final Rescue Draft (Source: Bloomberg)
Greek Prime Minister Lucas Papademos postponed a meeting with heads of the political parties supporting his caretaker government a second time in as many days as the government and international creditors haggled over terms to secure a second aid package. Papademos will meet with the leaders in Athens tomorrow, instead of tonight as previously scheduled, a spokeswoman for his office said. Instead, he will meet tonight with the so- called troika, comprising the European Commission, the European Central Bank and the International Monetary Fund, to put the final touches to terms required for a 130 billion-euro ($172 billion) rescue package, the spokeswoman said.
The delay is yet another hitch in completing a package that’s been on the table since July as the government struggles to wind up financing to avert a collapse of the economy, risking a new round of contagion in the euro area. With the country facing a 14.5 billion-euro bond payment on March 20, German Chancellor Angela Merkel warned yesterday that “time is running out” to reach an accord.
Papademos Seeks Greek Consensus on Cuts (Source: Bloomberg)
Greek Prime Minister Lucas Papademos plans to convene the nation’s political leaders to seek consensus on the cuts required for a bailout as unions called a strike to protest and European leaders pressed for answers. While Papademos and the party chiefs have agreed to make further cuts this year equal to 1.5 percent of gross domestic product, they have yet to close gaps over measures demanded by creditors for a 130 billion-euro ($171 billion) rescue. German Chancellor Angela Merkel said “time is running out,” while unions derided the conditions as “blackmail.”
“It is clear we are going into another drama for Greece with many questions unanswered,” Patrick Legland, head of research at Societe Generale SA, told Bloomberg Television today. “It’s kind of a catch-22 where they have to reduce their deficit but there is no growth. It’s very tricky.”
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