Stock Market Looking for a Bottomworldwide

hi, if you find this massage is interesting, share with your friends 17/07/2008 | Moscow News №28 2008 Stock Market Looking for a Bottom > print version Last week, the Russian stock market was involved in a series of cash-outs, caused by the mounting concern over the stability of the U.S. financial system, as well as the increasing signs of a slowing down of the global economy, against the backdrop of the ongoing inflationary trends. Reports of an easing in the tax burden on the oil and natural gas sector, which prompted the May rally, have this time served as a life buoy for domestic shareholders. LATEST NEWS Russia insists on Georgian troop pullout to end Abkhazia conflict 10:48 19/07/2008 |Russia's president told Germany's foreign minister at talks on the conflict between Georgia and its rebel region Abkhazia that Tbilisi must pull its troops out of the province before a peace deal can be reached. Medvedev urges Iran to fully cooperate with IAEA 22:26 18/07/2008 |Russia's president on Friday urged Iran to fully cooperate with the International Atomic Energy Agency (IAEA) over its nuclear program, the Kremlin press service said. Russia, China to sign agreement to end border dispute in July 20:44 18/07/2008 |Russian Foreign Minister Sergei Lavrov will visit China on July 21-22 to sign a document delineating a long-disputed border between the two countries, the Foreign Ministry said on Friday. Russia concerned over U.S.-Ukraine Black Sea military exercises 20:34 18/07/2008 |Russia's Foreign Ministry voiced on Friday its concerns over the U.S.-Ukrainian Sea Breeze naval exercises currently underway in the Black Sea. more news The flight from stock risks has become widespread amid the worsening condition of the U.S. mortgage market linchpins Freddie Mac and Fannie Mae. This is due to the fact that in a shrinking real estate market, the risk of the beleaguered lenders defaulting on $5.2 trln of the $11.2 trln mortgage debts threatens a sharp worsening of the situation in the troubled sectors of the economy - construction and finance, thus increasing the risks of an economic slowdown. That is why investors paid such close attention to a recent Lehman Brothers memo suggesting that as much as $75 bln will need to be raised in additional capital. Such moves are designed to increase transparency, while the effects from the easing of monetary policy have yet to kick in to improve lending terms. The fact is that at a time when real estate prices were soaring, virtually all financial market agents were expanding their portfolios with mortgage backed securities, which have now significantly depreciated. In a bid to cover their losses, financial institutions started reporting such mortgage loans as off-balance sheet items. The demand to return them to the regular balance sheets can, therefore, potentially help recover the credibility of the financial system, but at the same time will encumber banks with additional write-downs on their holdings, which have already passed the $400 bln mark. Taking into consideration the nature of the lenders' operations and their key role in the mortgage market, this may have grave consequences for the U.S. economy. Spooked, stock market players started assuming the worst-case scenario in share quotes, with market value losses hitting 45 percent last week. Understanding the danger of the situation, financial regulators made an attempt to put out the fire. First, James Lockhart, director of the Office of Federal Housing Enterprise Oversight (OFHEO), said that the new accounting procedure will not affect Fannie and Freddie's capital requirements. But passions were only cooled after a U.S. Treasury and FRS program was made public. It aims to restore investor trust in these U.S. mortgage securities by opening access to the discount window and expanding credit lines; if necessary, the U.S. Treasury is ready to buy shares in the lenders and underwrite their ballooning debts. Amid a decline in demand for high risk assets, the Russian stock market has stayed within global market trends. Sell-offs were registered also among nonresidents, who were reducing long positions, despite reports of upcoming amendments to the RF tax code easing the tax burden on oil and natural gas enterprises. According to Lukoil CEO Vagit Alekperov, the proposed tax incentives will enable the industry to funnel an additional 400 billion rubles ($17 bln) into capital investment. But even the positive developments on the hydrocarbons market proved insufficient in the face of the external negative trends: under their impact, the MICEX index fell to a three-month low. This week one should pay attention to the financial performance of Citigroup, Merrill Lynch and the Bank of America, which could produce some unpleasant surprises. Price dynamics in the consumer sector and the housing market will attract special attention. Considering its significant overheating, the market should be expected to look for a ‘rock bottom' to stage a tangible rebound. An indication of that will be either the 1600 point mark (MICEX), i.e., the bottom of the downtrend, or a rise above 1675 points. The majority of traders will stay out of stock market battles, while speculators will have a good opportunity to cash in on volatility.

Why is the India's nuclear deal with US pros and cons Benefits for India?

hi, if you find this massage is interesting, share with your friends Why is the India's nuclear deal with US pros and cons Benefits for India? Ans. Nuclear Agreement between India - USA :MUST READ BY EVERY INDIAN There are lot of talks about 1 2 3 Agreement between India & USA and it almost led to the topple of Central Government. In this mail I am trying to explain the commercial & technical aspects relating to this Agreement which I have read and sharing with you. What is 123 Agreement? This is called 123 Agreement because this comes under USA's Atomic Power Act Section 123. Let's see how India's (Indians?) Sovereinty & Independence are pledged... (1) After this Agreement USA will supply all fuel, machinery / equipment & technology to India for producing Nuclear Power. (2) All these days from about 22 Nuclear Power Plants, India is producing power as well as Atom. It's a high security / secret that from where which is produced, how much is produced, where it is supplied, what research is being done with that, etc. to anybody. But if we sign this Agreement, we have to disclose these secrets and also agree to 14 of our Nuclear Power Plants to be under the scanner of International Atomic Power Organisation. (3) The fuel utilised to produce Atomic Power can be recycled for reuse and this plant will be under direct supervision of IAPO. If India does nuclear test, this agreement gets cancelled. But (1) USA will take back all the machinery / equipments / technology supplied to India thus far. (2) Those 14 plants will continue to be under scanner irrespective of the status of the agreement. On the other hand, if any of the commitments given by USA is breached by them, then there is no clause for cancelling this agreement. The agreement is apparently like this... USA can either hug India or slap India. India will not ask why are we hugged or why are we slapped. On the other hand, India cannot hug or slap USA for breach of agreement. This is only capsule so that easy to read and digest. Subject: India Pledged.... Part 2 Requirement of Power The most important requirement for India's Economic Growth in the coming years will be the power & infrastructure. The argument put forth favouring the 123 Agreement says that we need Nuclear Power Production to be increased to meet the demand. Power Production in India Presently following are the figures: Thermal Power 66% Hydel Power 26% Solar & Wind Power 5% - Presently Rs.600 Crores are spent for producing this power. Nuclear Power 3% - If this is to be increased to 6%, it requires additional Rs.50,000 Crores. Naturally it will be wise to increase other 3 modes of power production rather than the expensive & dangerous Nuclear Power. Isn't?? URANIUM We used to import Uranium from various other countries. After the Pokran Test, we are not getting it. To augment the supply, we need to sign the 123 Agreement to get Uranium from USA. But we will have to declare to USA from which power plant India takes raw material for producing Atom Bomb. Why should we disclose our internal secrets to those rascals ? Will any one allow an outsider to continuously monitor what's happening in your Hall & Kitchen of your house? Other study reveals that Uranium is available in India aplenty. Only hurdle is the acquisition of land. To produce Atomic Power & Bomb in the next 40 years, the requirement of Uranium is 25,000 MT whereas the availability is 78,000 MT across India. PLUTONIUM Presently 35% of Plutonium is used to produce Atomic Bombs. After signing the Agreement, we will be allowed to use only 10%. Who are those rascals to restrict the usage of our natural resource ? That is though you are capable of cooking & eating 10 idlis as your breakfast, you are allowed only 3 idlis henceforth. How can it be? Why should we accept this? THORIUM As told by Dr.APJ, we have abundant Thorium. In fact we are the 2nd largest producer of Thorium next only to Australia. India has to explore this further for producing power. For your information, in South India - particularly around Kanyakumari, the availability of Thorium is abundant. INDIA-IRAN-CHINA USA does not like the amicable relationship between India-Iran and also India-China. If India-China relationship gets stronger, then both these can rule the Eastern Part of the Globe which USA wants to break as per their divide & rule. By signing this agreement, USA wants India to depend on it for producing power which is going to be a crucial factor in future. There is a talk of bringing Natural Gas from Iran to India with a big pipeline project. USA doesn't like this proposal. Atomic Power Technology Whether power is produced or Bomb is produced, using Atomic power without spoiling the infrastructure and without allowing the radiation is always under threat. Moreover preserving the wastes coming out of Atomic Power Plants is expensive & unsafe. There was an accident in Three Miles Island in USA. To close this plant nearly USD 200 Crores spent with tons & tons of concrete but yet to be fully closed. In an another accident at Soviet Union's Serbia Plant, even the next generation child are affected due to the radiation. It will be very very expensive to defuse & close down an Atomic Power Plant than its construction cost. France France has got 56 Nuclear Power stations producing 73% of the country's total power requirement. They are catching up the problem of eliminating the wastes / emissions from out of those plants at the same time increase the power production capacity. Government of France is now thinking how to reduce the power consumption in the country. Conclusion In view of the above danger, rather than signing the agreement and pledging India to USA, it will be prudent to increase the Solar & Wind Energy and more importantly Hyder Power Production can be increased by linking all rivers across India and by constructing DAMS. (Ofcourse Dam construction projects can be given to L&T's B&F Sector:-) The whole process of this Agreement started in the year 2005 when Manmohan visited USA. In a span of just 2 years a major decision of signing this agreement has taken place with political motive. On the contrary, neither this Government nor any other earlier Central Government could not amend the Constitution thereby nationalise the rivers across the country thereby effectively utilise the water resources for both Agriculture purpose and producing Hydel Power. What an irony? Whenever someone is helping the needy, you can't expect the TERMS AND CONDITIONS BETWEEN THE needy and the helper to be EQUAL??? BUT (1) the helper's ulterior motive should be seen with broad eye because he is capable of digging a grave behind you and (2) better to be self-sufficient and explore new avenues with available resources. INDIA-CHINA-USA India is very rich in Culture, follow Religions, Value Ethics, Level of Education is Very Good. China is also rich in Culture, follow Religion, better disciplined. USA does not have Culture, does not have Ethics, only want power over others. Particularly wants a firm footing in South Asia. Remember the introduction EURO by European Countries and it is stronger than Dollar? So their "DAL" cannot be boiled at "EUROPE". They are trying in India as already Pakistan is in their clutches. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. Nothing in this article is, or should be construed as, investment advice.

Subprime fallout could last two years: Singapore bank head

hi, if you find this massage is interesting, share with your friends SINGAPORE: The global fallout from the US subprime mortgage crisis could last another two years, the chairman of Singapore-based United Overseas Bank said in a newspaper report on Tuesday. "I hope I am wrong, but my view is that this crisis will take one to two years to stabilise," Wee Cho Yaw, a banker for almost 50 years, told a university commencement ceremony, reported. A bank spokeswoman confirmed the quotes when contacted by AFP. The default crisis in the US subprime -- or higher risk mortgage sector ballooned into a world credit squeeze as banks tightened lending criteria. The crisis has also battered financial markets. "What worries me is that no one seems to know the full amount of off-balance sheet securities circulating in the financial markets," Wee was quoted as saying. The subprime homeloans were repackaged into securities and sold to investors around the world. The wave of defaults led to billions of dollars in losses on those securities, damaging the balance sheets of major international banks. "And this is what frightens me most no one can tell me how much more will be written off...," The Straits Times quoted Wee as saying. Wee said regulators will need to ensure closer supervision of financial institutions and the "exotic trades" that have arisen over the past decade, the newspaper reported. UOB has a regional presence, including subsidiaries in Malaysia, Indonesia, China and Thailand.

U.S. Markets: A Ton of Doubt Calls for Caution

hi, if you find this massage is interesting, share with your फ्रिएंड्स

Sentiment deteriorated further during the past week as oil prices rebounded, more bad news in the financial sector surfaced, economic woes mounted and inflationary pressures intensified, compounding the already-jittery investors’ anxiety.

Status Quo’s lyrics “Down down deeper and down” came to mind as global stock markets took a battering. For example, the Dow Jones Industrial Index, plunged by 3.8% over the week to below 12,000 – its lowest level since March. Commensurate with extremebearishness, short interest on the New York Stock Exchange jumped to an all-time high during the week.

At the center of investors’ angst was the perception that the credit crisis has not yet played itself out. These fears were supported by Goldman Sachs (GS) analysts who said last week they did not expect the credit crisis to peak before 2009, and that U.S. banks might need to raise $65 billion of additional capital (on top of $159 billion raised so far) to cope with additional losses from the sub-prime fallout.

On a related note, Moody’s downgraded the credit ratings of Ambac Financial (ABK) and MBIA (MBI), citing their limited ability to raise new capital and write new business. Banks were also in focus as analysts cut their price targets for, among others, Goldman Sachs (GS), Citigroup (C) and Wachovia (WB).

In one of the most bearish reports for a while, The Royal Bank of Scotland (RBS) advised clients to brace themselves for a full-fledged crash in global stock and credit markets over the next three months as inflation paralyses the major central banks. “A very nasty period is soon to be upon us – be prepared,” said Bob Janjuah, the bank’s credit strategist (who gained credibility after his warnings last year about an impending credit crisis).

Richard Russell, 83-year old author of the Dow Theory Letters, expressed concern about the stock market’s negative breadth and said:

I did a double-take when I read Lowry’s statistics … Buying Power Index at a multi-year low and Selling Pressure Index at a multi-year high. And the two Indices at about their widest (most bearish) spread in history or since the 1930s. What the devil could this mean? My guess can be summed up in one word – trouble.

However, there is still hope, according to David Fuller (Fullermoney), who pointed out that Investors Intelligence’s sentiment index (bottom section of the chart on the left) was extremely bearish.

There has never been a reading at current or lower levels that was not soon followed by a sharp rebound, including during the last bear market. This indicates to me that we are within a week or two of a bear squeeze, providing at least a tradable rally …

Lousy Fridays are often followed by rotten Mondays.

To which I add: When in doubt (and there is a ton of doubt), better to err on the side of caution than to do something stupid.

Let’s briefly review the financial markets’ movements on the basis of economic statistics and a performance round-up:

Economy

The Survey of Business Confidence of the World conducted by Moody’s Economy.com, reported that:

Global business sentiment appears to have turned a corner. It remains weak, but it has moved measurably higher since hitting bottom in late April. Confidence remains weakest in the U.S. where it suggests the economy is still contracting, and it is strongest in Asia where it is consistent with an economy growing near its potential.

Economic reports in the U.S. were largely overlooked last week as market participants focused on corporate news, although there were several notable releases:

• The NAHB Housing Market Index fell by 1 point to 18, bringing it back to the record low reached in December and before that not seen since 1985.
• After plummeting since the beginning of this year, consumer confidence is showing tentative signs of stabilizing, according to the ABC News/Washington Post Consumer Comfort Index.
• Industrial Production fell by 0.2% in May, following an outsized 0.7% decline in April. Overall, the report is consistent with continued modest declines in manufacturing.
• The Producer Price Index for finished goods rose by a large 1.4% in June as expected, following a 0.2% increase in April. Inflation was once again led by large price increases of food and energy products.

Summarizing the U.S. economic scenario, Paul Kasriel, chief economist of Northern Trust, said:

… despite the Fed’s aggressive Federal funds rate reductions, money and credit growth have slowed significantly … to absolutely low rates. The implication of this is that real economic activity is likely to be very sluggish until financial institutions rebuild their capital positions and that the inflationary flames are likely to subside as they are deprived of the ‘oxygen’ of credit growth.

The highlight of next week’s economic news will be the FOMC policy announcement on Wednesday. Economists expect the Fed funds rate to remain unchanged at 2.0%, but uncertainty regarding the wording of the policy statement means it has market-moving potential.

Kasriel also said:

We fully expect that the FOMC will devote a relatively large amount of ‘ink’ to the inflationary threats in its no-change policy statement on June 25, but we also expect the FOMC to reiterate that the downside risks to economic growth still dominate its policy decisions in the near term.

Elsewhere in the world, escalating inflation concerns are at the top of policymakers’ agendas. In addition to rampant inflation in emerging markets, the Eurozone and U.K. are also shouldering strongly rising prices.

• Consumer price inflation in the Eurozone was up 3.7% in year-ago terms in May. The rate is far above the European Central Bank’s 2% inflation target and, given the ECB’s more hawkish tone lately, markets are increasingly expecting the bank to tighten.
• Consumer prices shot ahead in May in the U.K., rising by 3.3% in year-ago terms. The deteriorating inflation outlook has reduced the likelihood of imminent monetary easing, while a recent statement by Bank of England Governor Mervyn King suggests that rate increases are also unlikely.

Despite Hard Times, U.S. Consumers Splurge on the Sexy Things in Life

hi, if you find this massage is interesting, share with your फ्रिएंड्स NEW YORK, NY -- 06/24/08 -- Economic pressures on consumers lately are not expected to impact the fashionable intimate apparel industry. According to Packaged Facts' "U.S. Market for Intimate Apparel," the market is appealing to retailers because it has higher profit margins than regular apparel, drives store traffic and boosts customer loyalty. In 2007, Packaged Facts estimates the lingerie market rang up nearly $10 billion in sales.

While the market grew modestly between 2002 and 2007, it seems that women's intimate apparel has found a hot spot. Sexy/fantasy/trashy lingerie has seen significant growth in small, specialty lingerie companies that link their undergarments with accessories, novelties and adult toys. Escalation in sales of these foxy garments can be attributed to the Internet, which has helped small start-up companies flourish.

Full-figured lingerie is another key factor in the intimate apparel market. With the expansion in the women's plus-size clothing market (which generates $22 billion in annual sales) comes lingerie that fits the full-figured woman. In 2007, intimate apparel sales accounted for more than 10% of all plus-size apparel and that number is expected to increase.

"In the battle for tightly held consumer dollars, size is no longer enough," notes Cathy Minkler, Editor of Packaged Facts. "Players in the apparel industry will need innovation and original business models to stay in fashion."

"U.S. Market for Intimate Apparel" analyzes the competitive landscape of the market, profiles the major lingerie makers and retailers and discusses their key business strategies. The report also analyzes the major trends prevalent in the lingerie market. The information contained in this study was compiled from both primary and secondary research, including consultations with industry experts, on-site inspections of major retail outlets, analysis of information from trade press, apparel and organic-product trade associations, retail journals, marketer publications and press releases, and other relevant sources. Sales figures are based on a comprehensive evaluation of various current market estimates and growth trends. For further information visit: http://www.packagedfacts.com/Women-Intimate-Apparel-1684530/

Packaged Facts publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services. For more information visit www.packagedfacts.com, or contact Jenn Tekin at 240-747-3015 or jtekin@marketresearch.com.

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