Broken News ( Daily Update )

[surf4sports]

Foreign investment in Slovakia doubles in 2007

Thu, Jan 17 2008, 16:16 GMT
http://www.afxnews.com

BRATISLAVA (Thomson Financial) - Foreign investment in Slovakia doubled in 2007 to 1.28 bln eur, Sario, the investment promotion agency, said.

"This is double the investments compared with 2006," Sario director Peter Hajas said at a press conference, adding that Slovakia's high economic growth was also a factor in the rise.

Sario closed 64 deals with companies in 2007. The highest number of projects, 16, were realised in the underdeveloped, eastern Kosice region.

Most projects were in the engineering, electronics and car sectors and were expected to create between 14,738 and 16,852 jobs.

In 2006, Sario completed 65 projects worth 607 mln eur.

Sario is working on 146 new projects this year, worth around 4 bln eur. Most of the investors come from Germany, the United States, Britain, Belgium, South Korea, Austria and Italy.

Slovakia reported economic growth of 9.4 pct in the third quarter of 2007.

[email protected]

afp/cmr

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

 

[surf4sports]

Odds of further rate cut increases after Philly Fed, erasing earlier decline

Thu, Jan 17 2008, 16:22 GMT
http://www.afxnews.com

NEW YORK (Thomson Financial) - The odds of further interest rate cuts increased Thursday, reversing earlier declines, after the release of data showing that manufacturing activity in the Philadelphia region was much worse than expected.

February fed funds futures tacked on 0.01 to 96.36, which implies an 81% chance that the Federal Reserve will lower its target for overnight rates by 75 basis points to 3.5% after its next policy setting meeting on Jan. 30. Late Wednesday, the odds were at 80%.

The Philly Fed index dropped to -20.9 in January, while the median estimate of economists surveyed by IFR Markets had been expecting an improvement to -1.3 from last month's -1.6.

Earlier Thursday, the odds of a 75bp rate cut fell to as low as 74% after the Labor Department said weekly jobless claims fell 21,000 to 301,000, the lowest level seen in four months. Economists had been expecting a rise to 335,000.

Tomi Kilgore

tk1

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

 

[surf4sports]

Metals - Copper holds onto gains as Fed chairman Bernanke begins testimony

Thu, Jan 17 2008, 16:23 GMT
http://www.afxnews.com

LONDON (Thomson Financial) - Copper held onto earlier gains as Fed chairman Ben Bernanke began his half-yearly testimony to the House Budgetary Committee on the current outlook for the US economy.

Players, already pricing in a 50 basis point rate cut at the end of this month, were encouraged by statements the chairman made about a stimulus package for the US economy.

Offsetting this, however, were more negative comments on the outlook for the US economy, which re-ignited demand worries and sent the rest of the metals complex down on the day.

Fears the US is set to slip into recession have been weighing heavily on metals all week, leading most of them to reverse gains made earlier this year on increased fund buying and index reweighting.

All the same however, analysts remain sharply divided as to the extent to which US economic weakness will weigh further on metals, which fell sharply towards the end of last year on macro economic concerns.

JP Morgan analyst Michael Jansen said while he expects a relatively weak first quarter in metals, he thinks the complex has largely priced in a weak macro environment.

Regarding copper, he said further sharp falls in LME inventories are underpinning the metal at present, while bargain hunting and trade buying is also helping prices stay in positive territory.

At 3.58 pm, LME copper for 3 month delivery was up at 7,065 usd a tonne against 7,000 usd at the close yesterday, when the metal lost 120 usd on the day.

"Recession fears are still at the forefront of everyone's trading strategies," said analysts at RBC Capital Markets. They added, however, that declining copper stocks are currently preventing heavy selling.

The LME said in a daily report today copper stocks held in its warehouses fell by a large 5,500 tonnes to total 185,550 tonnes. Stocks have now fallen for eight days straight.

Analysts at Fairfax said the decline in LME copper stocks has come about as a result of increase in physical buying from China, the world's largest copper consumer.

However, markets are still nervous as the extent to which China will be able to pick up the slack should US copper consumption dry up in the face of a recession.

Data out earlier painted a bleak picture of the US housing market, a key driver of copper demand.

Housing starts dropped by a faster than expected 14.2 pct in December to hit their lowest level in more than 16 years, according to data released by the Commerce Department.

The Department also said building permits fell by a more than expected 8.1 pct, and that declines in housing starts and permits for the year as a whole were the sharpest seen in more than 25 years.

"Given the weak outlook for the US economy it is easy to be bearish for base metals and over the long run we think a downturn in the US will drag down the global economy enough to see metal prices fall significantly later in 2008.

"However, near term we think there is room for some rebounds as China steps up imports and reduces exports across the metals and as consumers switch from destocking mode to hand to mouth buying," said BaseMetals.com analyst William Adams.

Elsewhere, lead was down at 2,540 usd a tonne against 2,609 usd, with analysts saying it might struggle near term as supplies from Australia, shut in for nearly a year now, are expected to come back on stream shortly.

The Australian authorities have reportedly given conditional approval for Ivernia's Magellan mine to ship lead concentrates via the alternative port of Freemantle.

The news "may prove a hurdle for lead prices, but given this has been expected for a number of months now this may well already be in the price", said BaseMetals.com's Adams.

Nickel fell to 27,650 usd against 27,900 usd, however analysts at Fairfax IS remained cautiously upbeat on the outlook for prices amid hopes demand from the stainless steel sector will pick up shortly.

"Reports indicate that Chinese firms are holding off purchases of nickel hoping for weaker prices, although this could be a dangerous game with significant increases expected this year in terms of demand from new stainless steel capacity and production," Fairfax IS analyst Marc Elliot.

In other metals, tin was up at 16,350 usd a tonne against 16,300 usd, aluminium was down slightly at 2,446 usd against 2,469 usd while zinc edged up to 2,285 usd against 2,280 usd.

[email protected]

ma/lam

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

 

[surf4sports]

Oil dips as US economic fears return to fore following Bernanke speech

Thu, Jan 17 2008, 16:37 GMT
http://www.afxnews.com

LONDON (Thomson Financial) - Oil dipped in afternoon trade as fears that slowing US economic growth will curb demand spooked investors.

Oil, which has shed 3 usd a barrel since Monday, dropped to a day low of 90.26 usd after Federal Reserve chairman Ben Bernanke said the economic outlook for the year had worsened and that the US was likely to see below-trend growth "certainly in 2008, and probably early in 2009 as well".

However, the package of measures he pledged to stimulate the economy and the prospect of further rate cuts has gone some way to reassuring investors that a downturn might not be protracted, curbing losses.

"The focus in this market remains on any signs of an economic slowing that could further inflame fears of a possible US recession, (which) could shift to the emerging nations where demand has been little affected by high prices thus far," said Jim Ritterbusch, president of Ritterbusch & Associates.

At 4.16 pm, New York's WTI crude for February delivery was down 50 cents at 90.34 usd per barrel, nearly 10 usd off its all-time high above 100 usd hit in the first week of January.

Meanwhile London's Brent crude for March delivery was down 55 cents at 88.95 usd per barrel.

Oil traded higher earlier today as shorts covered after yesterday's losses, and as comments from Iranian oil minister Gholamhossein Nozari dampened speculation over the possibility of an imminent rise in OPEC crude production.

However, crude prices had lost 3 usd a barrel in the first three days of this week, pressured by rising stockpiles of crude, gasoline and distillates, and by fears over the US economy.

Faltering US demand amid fears the superpower is heading into recession is likely to be the primary factor pressuring prices lower in the course of the year, analysts said.

"All the aspects that underpinned crude prices in 2007 and at the start of this year are still here, with tight supplies, geopolitical fears on the supply side and the broad weakness in the greenback," said Sucden analyst Andrey Kryuchenkov.

"However, we fear that until global economic jitters and concerns over the US economy settle down, the trade is likely to remain volatile with less emphasis on actual supply fundamentals."

"In general, most commodities are likely to suffer if fears of an economic slowdown in the US intensify and we see more negative data from the world's top consumer," he added.

The International Energy Agency, which represents the interests of consumer countries, yesterday issued a cautious outlook for demand.

Although it kept its 2008 demand forecast unchanged, it trimmed its growth forecast by some 130,000 barrels per day and said it was keeping a close eye on US economic developments.

[email protected]

har/ejp

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

 

[surf4sports]

Rutgers: Slowing economy for NJ

Thu, Jan 17 2008, 19:31 GMT
http://www.afxnews.com

TRENTON, N.J. (AP) - New Jersey is caught in "the economic doldrums" and its economy likely will perform worse than the rest of the nation's through at least 2012, according to a Rutgers University semiannual economic forecast.

The Rutgers Economic Advisory Service forecast, released Thursday, predicts slow job growth and rising unemployment, with a quick turnaround unlikely.

Nancy Mantell, the service's director, said although New Jersey's 2007 unemployment rate of 4.3 percent was below the 4.6 percent national average, the workforce is shrinking.

"People appear to be dropping out of the labor force rather than looking for work," Mantell said in a statement.

She expects an average jobless rate of 5 percent this year, followed by 5.2 percent over the following decade.

"The average unemployment rate is expected to exceed the national rate in 2008, as well as through the 2017 forecast period," Mantell said.

Last year, only 24,300 new jobs were created through November, or 5,600 fewer than in the same period of 2006.

On the bright side, steady growth in personal income is forecast through 2017, with an average of nearly 5 percent per year -- well above the expected annual inflation rate of 2 percent. That category includes income from wages, investments and other sources.

New Jersey's job growth this year is forecast at only 0.3 percent, down from 0.5 percent in 2007 and 0.9 percent in 2006, but should rebound to an average of 0.8 percent over the subsequent decade.

Through 2017, Mantell predicts New Jersey will add about 344,000 jobs.

Last year, most job gains came in government, followed by education and health services and professional/business services, while half of all jobs lost were in manufacturing.

New Jersey's gross state product is forecast to grow at a modest 2.2 percent on average through 2017, below the national average of 2.5 percent.

"This differential is due to the relatively higher cost of living and doing business in New Jersey, as well as our lower rate of population growth," Mantell said. New Jersey's population is expected to grow by an average 0.6 percent per year, with the total number of residents passing 9 million in 2012.

The data was released during a conference for business and government economists and others at the Edward J. Bloustein School of Planning and Public Policy at Rutgers.

Also Thursday, Fairleigh Dickinson University's annual New Jersey consumer survey found residents' confidence in their near-term financial situation is eroding.

The survey found 41 percent say they are worse off than a year ago, up from 35 percent last year. Meanwhile, 27 percent say they are better off than the year before, down slightly from 30 percent.

Only 37 percent expect to be better off financially a year from now, down from 42 percent a year ago.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

[surf4sports]

San Francisco Bay home sales drop

Thu, Jan 17 2008, 19:30 GMT
http://www.afxnews.com

LOS ANGELES (AP) - Home sales in a nine-county region around San Francisco Bay plunged last month to the lowest level for December in at least 20 years, a real estate research firm said Thursday.

A total of 5,065 homes were sold in the area last month, down 39.5 percent compared to December 2006, and were off 1.2 percent from November, according to DataQuick Information Systems.

Sales in the region that includes Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma counties have dropped year-over-year for the past 35 months.

Prior to last month, the slowest December on record was 1990, when 5,458 homes were sold. DataQuick has been tracking sales since 1988.

Meanwhile, the median price of a home in the region slipped to $587,500, a 4.9 percent drop from December 2006 and a 6.6 percent decline from November's median, DataQuick said.

Sonoma County posted the sharpest decline, plummeting 21.9 percent to $410,000 from December 2006.

The median price in Solano County fell 15.8 percent to $370,000, while Contra Costa County saw a drop of 11.3 percent to $505,000.

The median price for a home in San Francisco County declined 1.9 percent to $731,000.

Prices in other counties dipped by single-digit percentages or stayed flat.

The median price has been falling in part because of a sharp drop in the number of high-end homes sold as lenders cut back on so-called jumbo mortgages that exceed $417,000.

Earlier this week, DataQuick said the average median price in Los Angeles, Orange, San Diego, Ventura, Riverside and San Bernardino counties hit $425,000 last month, the lowest level since February 2005, when the figure was $420,000.

Home sales throughout those six counties plunged 45.3 percent to 13,240 from a year ago.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

[surf4sports]

Rutgers: Slowing economy for NJ

Thu, Jan 17 2008, 19:31 GMT
http://www.afxnews.com

TRENTON, N.J. (AP) - New Jersey is caught in "the economic doldrums" and its economy likely will perform worse than the rest of the nation's through at least 2012, according to a Rutgers University semiannual economic forecast.

The Rutgers Economic Advisory Service forecast, released Thursday, predicts slow job growth and rising unemployment, with a quick turnaround unlikely.

Nancy Mantell, the service's director, said although New Jersey's 2007 unemployment rate of 4.3 percent was below the 4.6 percent national average, the workforce is shrinking.

"People appear to be dropping out of the labor force rather than looking for work," Mantell said in a statement.

She expects an average jobless rate of 5 percent this year, followed by 5.2 percent over the following decade.

"The average unemployment rate is expected to exceed the national rate in 2008, as well as through the 2017 forecast period," Mantell said.

Last year, only 24,300 new jobs were created through November, or 5,600 fewer than in the same period of 2006.

On the bright side, steady growth in personal income is forecast through 2017, with an average of nearly 5 percent per year -- well above the expected annual inflation rate of 2 percent. That category includes income from wages, investments and other sources.

New Jersey's job growth this year is forecast at only 0.3 percent, down from 0.5 percent in 2007 and 0.9 percent in 2006, but should rebound to an average of 0.8 percent over the subsequent decade.

Through 2017, Mantell predicts New Jersey will add about 344,000 jobs.

Last year, most job gains came in government, followed by education and health services and professional/business services, while half of all jobs lost were in manufacturing.

New Jersey's gross state product is forecast to grow at a modest 2.2 percent on average through 2017, below the national average of 2.5 percent.

"This differential is due to the relatively higher cost of living and doing business in New Jersey, as well as our lower rate of population growth," Mantell said. New Jersey's population is expected to grow by an average 0.6 percent per year, with the total number of residents passing 9 million in 2012.

The data was released during a conference for business and government economists and others at the Edward J. Bloustein School of Planning and Public Policy at Rutgers.

Also Thursday, Fairleigh Dickinson University's annual New Jersey consumer survey found residents' confidence in their near-term financial situation is eroding.

The survey found 41 percent say they are worse off than a year ago, up from 35 percent last year. Meanwhile, 27 percent say they are better off than the year before, down slightly from 30 percent.

Only 37 percent expect to be better off financially a year from now, down from 42 percent a year ago.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

[surf4sports]

Turkish Central Bank cuts key rate by 25 points

Thu, Jan 17 2008, 19:20 GMT
http://www.afxnews.com

ANKARA (Thomson Financial) - Turkey's Central Bank cut its key overnight borrowing rate by a quarter of a point to 15.50 pct on expectations that inflation will fall despite the target being missed last year.

"Aggregate demand conditions should continue to support disinflation. In this context, inflation is expected to decelerate despite the risks from food and energy prices," the Bank's monetary policy committee said.

It was the fifth reduction in the overnight borrowing rate since September.

Turkish consumer prices rose by 8.39 pct in 2007, more than double the government target of 4.0 pct.

It was the second year in a row that Turkey missed its inflation target under an economic stability programme backed by the International Monetary Fund (IMF).

Fighting inflation is a key element in the three-year 10 bln usd programme, which expires in May.

The IMF has also said it expects inflation to continue declining in Turkey, but warned that fiscal policies were "considerably" relaxed ahead of early general elections in July and called for tighter measures in 2008.

[email protected]

ejp/rw

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

Thomson Financial News

 

[surf4sports]

San Francisco Bay home sales drop

Thu, Jan 17 2008, 19:30 GMT
http://www.afxnews.com

LOS ANGELES (AP) - Home sales in a nine-county region around San Francisco Bay plunged last month to the lowest level for December in at least 20 years, a real estate research firm said Thursday.

A total of 5,065 homes were sold in the area last month, down 39.5 percent compared to December 2006, and were off 1.2 percent from November, according to DataQuick Information Systems.

Sales in the region that includes Alameda, Contra Costa, Marin, Napa, Santa Clara, San Francisco, San Mateo, Solano and Sonoma counties have dropped year-over-year for the past 35 months.

Prior to last month, the slowest December on record was 1990, when 5,458 homes were sold. DataQuick has been tracking sales since 1988.

Meanwhile, the median price of a home in the region slipped to $587,500, a 4.9 percent drop from December 2006 and a 6.6 percent decline from November's median, DataQuick said.

Sonoma County posted the sharpest decline, plummeting 21.9 percent to $410,000 from December 2006.

The median price in Solano County fell 15.8 percent to $370,000, while Contra Costa County saw a drop of 11.3 percent to $505,000.

The median price for a home in San Francisco County declined 1.9 percent to $731,000.

Prices in other counties dipped by single-digit percentages or stayed flat.

The median price has been falling in part because of a sharp drop in the number of high-end homes sold as lenders cut back on so-called jumbo mortgages that exceed $417,000.

Earlier this week, DataQuick said the average median price in Los Angeles, Orange, San Diego, Ventura, Riverside and San Bernardino counties hit $425,000 last month, the lowest level since February 2005, when the figure was $420,000.

Home sales throughout those six counties plunged 45.3 percent to 13,240 from a year ago.

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

 

[surf4sports]

Italian Govt May Lower 2008 GDP Growth Target -Newspaper

Fri, Jan 18 2008, 01:37 GMT
http://www.djnewswires.com/eu

Italian Govt May Lower 2008 GDP Growth Target -Newspaper

DOW JONES NEWSWIRES

The Italian government may revise down its 2008 gross domestic product growth to around 1.1%-1.2% from its previous 1.5% target, reports La Repubblica in its Friday Internet edition, citing Italy's Economy Minister, Tommaso Padoa-Schioppa.

Citing concerns over a possible U.S. recession, a strong euro/dollar exchange rate and a worsening world economic outlook, Italy's largest business organization, Confindustria, cut earlier this week its 2008 growth forecast to 0.9% from 1%, while the Bank of Italy slashed its 2008 GDP growth target for Italy to 1% from 1.7%.

Newspaper Web site: http://www.repubblica.it

-Dow Jones Newswires; [email protected]

(END) Dow Jones Newswires

January 17, 2008 20:37 ET (01:37 GMT)


Copyright 2008 Dow Jones & Company, Inc.