Asian News

[Ichiro]

20mar- AP-BOJ Leaves Interest Rates Unchanged

Tuesday March 20, 4:33 am ET

By Carl Freire, Associated Press Writer

Bank of Japan Leaves Interest Rates Unchanged at 0.5 Percent

TOKYO (AP) -- The Bank of Japan held its benchmark interest rate steady at 0.5 percent at the end of a two-day policy meeting Tuesday after lifting it a quarter point last month amid signs of continued economic growth.


But data released earlier this month showed that consumer prices were flat for the first time in eight months in January, fueling speculation that the central bank would hold off for quite awhile before raising interest rates again.

Price stability is particularly important for Japan because the nation's economy was plagued for years by deflation, or continuously falling prices, which dragged on growth.

The BOJ's next policy setting meeting is scheduled for April 9-10, after the bank's closely watched "tankan" quarterly survey on corporate sentiment set for release April 2.

Analysts and financial market traders say the bank may face opposition from the government if it tries to raise rates again before nationwide parliamentary Upper House elections in July.

The Bank of Japan policy board raised its key interest rate to 0.50 percent from 0.25 percent Feb. 21 -- the first hike since July.

Japan's core consumer price index was unchanged in January from a year-earlier, the first time it was flat since May 2006. Economists expect core CPI in February to fall slightly due to the drop in crude oil prices.

Gov. Toshihiko Fukui offered few clues over the timing of future monetary tightening, sticking with his long-held position that the Bank will gradually adjust interest rates based on economic and price developments.

Fukui did say the bank will keep in mind signs of accelerating land prices in some urban areas, although he said they aren't a critical factor in determining interest rates.

In a monthly report, the Bank kept its assessment of the economy as moderately expanding -- the same wording it used the previous two months -- noting that consumer spending remains solid and prices will be stable in the long run.

for info:

http://biz.yahoo.com/ap/070320/japan_central_bank.html?.v=7

 

[Ichiro]

20Mar- AP-Japanese Stocks Rise for 2nd Session
Tuesday March 20, 4:58 am ET
Japanese Stocks Rise for 2nd Session, Led by Real Estate, Retail Issues

TOKYO (AP) -- Japanese stocks advanced for a second straight session Tuesday, led by real estate and retail issues.

The benchmark Nikkei 225 index gained 153.65 points, or 0.90 percent, to finish at 17,163.20 points on the Tokyo Stock Exchange. On Monday, the index added 1.59 percent.


Traders said real estate stocks led the way ahead of a planned release of Japan's land prices by the government later this week.

"Compared with the previous year, I think it's very likely we'll see land prices rise in nearly all of Japan's major cities, not just in the main metropolitan areas," said Akio Yoshino, market economist with Societe Generale Asset Management in Tokyo.

Among real estate stocks, Mitsui Fudosan Co., the country's biggest real estate developer by sales, rose 4.02 percent at 3,360 yen (US$28.47) after brokerage Goldman Sachs hiked its target price on the stock to 4,150 yen (US$35.17) on Monday.

for info:
http://biz.yahoo.com/ap/070320/japan_markets.html?.v=2

 

[Ichiro]

21mar-North Korea refuses to join nuke talks

By BO-MI LIM, Associated Press Writer 1 hour, 44 minutes ago

BEIJING -
North Korea stayed away from six-nation talks on its nuclear program Tuesday in a dispute over $25 million of its funds, dimming prospects for progress on getting the communist regime to disarm.
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But Christopher Hill, the chief American envoy to the negotiations, met with Kim Kye Gwan, his North Korean counterpart, and later downplayed concerns that efforts to meet goals outlined in a landmark Feb. 13 disarmament agreement were in vain.

While he characterized the day's progress as "kind of slow," he expressed optimism the conflict over the North Korean funds frozen in Banco Delta Asia, a Macau bank, would be resolved.

"I think we're still on track," Hill told reporters late Tuesday. He did not give any details on his meeting with Kim.

North Korea boycotted the six-nation talks for more than a year after Washington blacklisted the tiny, privately run bank on suspicion the funds were connected to money-laundering or counterfeiting.

U.S. Deputy Assistant Treasury Secretary Daniel Glaser announced Monday the money would be transferred to a North Korean account in Beijing and it is up to the Monetary Authority of Macau, a Chinese territory, to release the funds.

for info:North Korea refuses to join nuke talks

By BO-MI LIM, Associated Press Writer 1 hour, 44 minutes ago

BEIJING -
North Korea stayed away from six-nation talks on its nuclear program Tuesday in a dispute over $25 million of its funds, dimming prospects for progress on getting the communist regime to disarm.
ADVERTISEMENT

But Christopher Hill, the chief American envoy to the negotiations, met with Kim Kye Gwan, his North Korean counterpart, and later downplayed concerns that efforts to meet goals outlined in a landmark Feb. 13 disarmament agreement were in vain.

While he characterized the day's progress as "kind of slow," he expressed optimism the conflict over the North Korean funds frozen in Banco Delta Asia, a Macau bank, would be resolved.

"I think we're still on track," Hill told reporters late Tuesday. He did not give any details on his meeting with Kim.

North Korea boycotted the six-nation talks for more than a year after Washington blacklisted the tiny, privately run bank on suspicion the funds were connected to money-laundering or counterfeiting.

U.S. Deputy Assistant Treasury Secretary Daniel Glaser announced Monday the money would be transferred to a North Korean account in Beijing and it is up to the Monetary Authority of Macau, a Chinese territory, to release the funds.

 

[pogo]

is the japan market close for 3/21/2007 or later tonight

 

[Ichiro]

Japan market is closed due to a national holiday.

Ichiro

 

[Ichiro]

21mar- AP-Fed Expected to Keep Rates Unchanged

Wednesday March 21, 3:42 am ET

By Martin Crutsinger, AP Economics Writer

Federal Reserve Officials Expect to Keep Interest Rates Unchanged

WASHINGTON (AP) -- As the Federal Reserve tries to guide the economy in for a soft landing, it is being battered by turbulent financial markets, a slumping housing industry and stubborn inflation pressures.

None of that is expected to alter the course Fed Chairman Ben Bernanke and his colleagues have established of keeping interest rates steady at current levels until there is firm evidence that inflation pressures have begun to recede.

Wrapping up a two-day meeting on Wednesday, Fed officials were widely expected to hold interest rates unchanged while still expressing greater concerns about inflation than the threat of weaker economic growth.

The federal funds rate, the interest that banks charge each other, has been at 5.25 percent since last June when the central bank capped a two-year, credit-tightening campaign with its 17th consecutive quarter-point rate hike.

In the five Fed meetings since that time, the central bank has stayed on hold. Economists believe this will be the sixth meeting with no move on interest rates even though the economic landscape has changed significantly since the last Fed meeting on Jan. 30-31.

The stock market, which had been hitting record highs, has suffered some stomach-churning days, including a 416-point plunge in the Dow Jones industrial average on Feb. 27.

That market swoon was blamed on comments former Fed Chairman Alan Greenspan made about the possibility of a recession at the end of this year and spreading troubles among lenders dealing in subprime mortgages, loans made to borrowers with weak credit histories.

In addition, the economy has turned weaker with business investment, which had been expected to take up the slack from a weakening home market, faltering. And consumer spending is weaker as well.

That is why some economists have been pushing the possibility of a recession higher this year. Greenspan put the odds at one in three.

Normally, the central bank would respond to spreading economic weakness by cutting interest rates. However, two reports on inflation last week showed that price pressures remain a problem with both wholesale and retail prices rising more rapidly in February.

for info:
http://biz.yahoo.com/ap/070321/fed_interest_rates.html?.v=4

 

[Ichiro]

21mar- AP-Euro Unchanged, Pound Higher Vs. Dollar

Wednesday March 21, 6:35 am ET

Euro Unchanged, Pound Higher Against U.S. Dollar

BERLIN (AP) -- The euro was unchanged against the U.S. dollar on Wednesday before the Federal Reserve's verdict on interest rates, while the pound extended gains prompted by strong British inflation data.


The 13-nation euro bought US$1.3307 in morning European trading, unchanged from its level in New York late Tuesday. The pound rose to US$1.9627 from US$1.9609.

The dollar rose to 117.66 Japanese yen from 117.25 yen.

The Fed was widely expected to leave rates unchanged out of concern that signs of sluggishness in the U.S. economy have not sufficiently dampened inflation pressures, but markets were looking for signals on its future course.

for info:

http://biz.yahoo.com/ap/070321/euro_dollar.html?.v=1

 

[Ichiro]

21mar- AP-Japan Abuzz Over Punishment of Web Guru

Wednesday March 21, 2:54 am ET

By Yuri Kageyama, AP Business Writer

Differing Punishment Given to Internet Guru and Major Brokerage Raising Questions in Japan

TOKYO (AP) -- Japan has been abuzz with the unusually harsh prison term handed to former Internet kingpin Takafumi Horie -- and the slap on the wrist given to scandal-tainted brokerage Nikko Cordial in another high-profile case of accounting regularities.


Horie, founder of Internet portal site operator Livedoor Co., was sentenced to 2 1/2 years in prison Friday for violating securities laws and falsifying earnings. Four other former top executives at Livedoor have been arrested and put on trial. Their verdicts will be announced Thursday.

In contrast, no one at Nikko Cordial, which has admitted to inflating profits the previous two fiscal years, has been charged.

Instead, Japan's third biggest securities company -- which Citigroup Inc. aims to take over -- was fined 500 million yen, or US$4 million, by Japan's watchdog Financial Services Agency.

And while Livedoor's stock was delisted last year, the Tokyo Stock Exchange decided last week not to remove Nikko Cordial shares -- despite widespread speculation that they would be.

Such differences are raising questions among the Japanese public about how evenly justice is being meted out in what some say is still a gray area in this nation's securities laws.

"What's happening is unfair," said Koetsu Aizawa, economics professor at Saitama University. "Slamming on the little guy who stands out while letting big names go is what's so despicable about Japan."

Aizawa says the charges against Nikko Cordial were serious enough for delisting -- and believes that Nikko Cordial's reputation was protected by the authorities for the overall stability of the Japanese stock market.

foriinfo:

http://biz.yahoo.com/ap/070321/japan_uneven_justice.html?.v=1

 

[Ichiro]

22mar-GLOBAL MARKETS-Stocks firm again, with one eye on cenbanks
Wed Mar 21, 2007 5:40am ET162

By Mike Dolan

LONDON, March 21 (Reuters) - Renewed bullishness on global stock markets nudged Asian and European bourses higher again on Wednesday, but wariness about the course of central bank interest rates slightly tempered this week's strong gains. European stocks <.FTEU3> rose again after a brief tick lower at the open, while shares in Asian chip makers climbed after strong earnings late on Tuesday from U.S. software makers Oracle Corp. (ORCL.O: Quote, Profile , Research) and Adobe Systems Inc. (ADBE.O: Quote, Profile , Research).

China's main stock index <.SSEC>, which last month triggered a global sell-off, hit a record on gains in the resources and property sectors. Hong Kong's Hang Seng index closed 0.8 percent higher. Tokyo markets were closed for a public holiday.

But the fresh optimism on world markets -- driven in part by a wave of merger and acquisition activity on both sides of Atlantic -- was restrained by concern about how central banks may react to creeping inflation rates in the major economies.

The U.S. Federal Reserve announces its latest interest rate decision at 1815 GMT. No change in key rates from 5.25 percent is expected but any nuance in the Fed's post-meeting statement will be assessed for future policy direction.

Weakness in the U.S. housing market and concern about the subprime mortgage sector has prompted many to bet on Fed easing this year, but some say it will remain focused on inflation.

"We think they'll keep a tightening bias," said Bernd Meyer, European strategist at Deutsche Bank in Frankfurt.

In the euro zone European Central Bank chief Jean-Claude Trichet said he saw mid-to-long term inflation expectations solidly anchored -- striking a dovish note at a European parliament committee hearing amid widespread expectations of more ECB rate rises

for info:

http://yahoo.reuters.com/news/artic...3-21_09-40-16_L21728372&type=comktNews&rpc=44

 

[Ichiro]

22mar-FTSE rises after UK rates seen on hold for now
Wed Mar 21, 2007 6:20am ET139

By Ana Nicolaci da Costa

LONDON, March 21 (Reuters) - Britain's FTSE 100 .FTSE rose on Wednesday after minutes from the Bank of England's last meeting cooled bets for a rate increase before the summer, shifting the focus to a U.S. rate decision later in the day.

The BoE minutes showed one policy maker had voted for a rate cut this month and none had wanted a hike.

"That's quite surprising. As you know the general feeling has been that there is one more hike left in the pipeline yet," said Richard Hunter, head of UK equities at Hargreaves Lansdown.

Britain's FTSE index of 100 leading companies was up 0.2 percent at 6,233.2 at 1004 GMT.

Stocks were already underpinned by recent takeover activity, gains in U.S. stocks overnight and a record-high for the Chinese index which had triggered a global sell-off late last month.

A possible tie-up between British bank Barclays (BARC.L: Quote, Profile , Research) and Dutch rival ABN AMRO, which would be Europe's biggest ever financial services deal, and speculation about other deals have helped stocks bounce back in recent days.

Britain's Barclays was 0.4 percent higher, after earlier gaining as much as 2 percent, as dealers said the bank was moving quicker to agreeing an $80 billion takeover than earlier expected.

for info:
http://yahoo.reuters.com/news/artic...3-21_10-20-44_L21369939&type=comktNews&rpc=44

 

[Ichiro]

22mar-Asian stocks nudge higher-Markets in Hong Kong, China gain but investors cautious amid uncertain outlook for global interest rates; Japan closed for holiday.

March 21 2007: 6:07 AM EDT

LONDON (Reuters) -- Renewed bullishness on global stock markets nudged Asian and European bourses higher again Wednesday, but wariness about the course of central bank interest rates slightly tempered this week's strong gains.

European stocks rose again after a brief tick lower at the open, while shares in Asian chip makers climbed after strong earnings late Tuesday from U.S. software makers Oracle Corp. (Charts) and Adobe Systems Inc. (Charts)

China's main stock index, which last month triggered a global selloff, hit a record on gains in the resources and property sectors. Hong Kong's Hang Seng index closed 0.8 percent higher. Tokyo markets were closed for a public holiday.

But the fresh optimism on world markets - driven in part by a wave of merger and acquisition activity on both sides of Atlantic - was restrained by concern about how central banks may react to creeping inflation rates in the major economies.
The Fed has its own March Madness

The Federal Reserve announces its latest interest rate decision at 2:15 p.m. ET. No change in key rates from 5.25 percent is expected but any nuance in the Fed's post-meeting statement will be assessed for future policy direction.

Weakness in the U.S. housing market and concern about the subprime mortgage sector has prompted many to bet on Fed easing this year, but some say it will remain focused on inflation.

"We think they'll keep a tightening bias," said Bernd Meyer, European strategist at Deutsche Bank in Frankfurt.

In the euro zone European Central Bank chief Jean-Claude Trichet said he saw mid-to-long term inflation expectations solidly anchored - striking a dovish note at a European parliament committee hearing amid widespread expectations of more ECB rate rises.

for info:
http://money.cnn.com/2007/03/21/news/international/markets_global.reut/index.htm?source=yahoo_quote

 

[Ichiro]

22mar- AP-Fed Keeps Interest Rates at 5.25 Percent

Wednesday March 21, 3:27 pm ET


By Martin Crutsinger, AP Economics Writer

Federal Reserve Leaves Key Interest Rate Unchanged at 5.25 Percent for Sixth Straight Meeting

WASHINGTON (AP) -- The Federal Reserve left a key interest rate unchanged Wednesday but triggered a strong rally on Wall Street as investors took hope the central bank might cut rates in the future.

Fed Chairman Ben Bernanke and his colleagues voted to keep the federal funds rate, the interest that banks charge each other, at 5.25 percent. It was the sixth straight meeting at which the Fed has not changed the rate.


In the statement explaining its action, however, the Fed this time dropped language about possible future rate increases. Any "future policy adjustments" would depend on the performance of both inflation and the economy, according to the statement.

Financial markets saw that change as a sign the Fed was considering future rate cuts and was not just focused on raising rates.

Investor euphoria over the possibility of rate cuts pushed the Dow Jones industrial average up by more than 160 points in the hour of trading following the Fed's midafternoon announcement.

Economists cautioned that investors probably were getting too enthusiastic about the likelihood the Fed would cut rates any time soon.

They noted the Fed statement also expressed increased worries that inflationary pressures have risen. The statement said that risks of inflation were the Fed's "predominant policy concern."

Analysts said the central bank appeared to acknowledge it is in a bind, caught between an economy being dragged down by troubles in the housing industry and stubbornly high inflationary pressures.

for info:

http://biz.yahoo.com/ap/070321/fed_interest_rates.html?.v=24

 

[Ichiro]

23mar- Daily FX-Dollar Creeps Higher Ahead Of FOMC Comments

Wednesday March 21, 1:31 pm ET

By John Kicklighter, Currency Analyst strategist@dailyfx.com

Dollar traders bided their time Wednesday though the early New York hours, anxiously awaiting the Federal Open Market Committee’s decision on interest rates and - more importantly – their outlook for the economy and inflation.


Before the Fed hit the wires, EURUSD was still holding still in congestion between 1.3290 and 1.3325. The greenback was finding a more consistent bid against the Swiss franc, sending the pair 55 points off of its overnight, range lows to 1.2170. Since hitting a new three-week high in the early London hours, the British pound reversed course and began to loose ground against the dollar. A quick 100-point drop in GBPUSD to 1.9555 marked the height of volatility before consolidating around 1.96. Finally, USDJPY bounced higher to further develop a wedge formation with a top eyed around 118.

Despite the considerable tension in the FX market during the New York session, there were few indicators for traders to tip toe around. However, each held a significant level of market-moving potential. By mid-day the only event to have crossed the ticker was the Mortgage Bankers Association’s weekly applications numbers. According to their data, total activity for purchasing and refinancing slipped 2.7 percent in the week through March 16th – the first and biggest contraction in a month. While this indicator is usually ignored, the market has taken heed of the data in recent weeks as investors across the finance spectrum monitor developments in the sub-prime mortgage sector for guidance in their own assets. Apart from the headline decline, savvy market participants likely took note of the 4.5 percent drop in refinancing applications and the 7.3 percent plunge in adjustable rate mortgage approvals. As ARMs continue to reset to current rates, Americans may begin to switch to the comparative safety of fixed-rate mortgages.

After its few moments in the sun, the MBA applications was stored away for later use while traders turned to the more overbearing risk in the forthcoming FOMC rate decision. Heading into the conclusion of the two-day meeting, the pertinent markets were pricing in predictions of the sixth consecutive pass on changing the nation’s benchmark lending rate. The real interest behind the event was in the subsequent statement that accompanies the decision. In recent weeks, previous forecasts from officials for inflation and growth have both come under fire. Conflicting with the stable growth projection, regional manufacturing reports have signaled declines for the current month while housing data has revived concerns of an extended and deepened slump. However, last week’s inflation data is expected to make the biggest impact. As the average American grows increasingly concerned with his/her mortgage payment and equities markets fail to reenter the steady bull-trend of past months, the crosshairs have fallen on the Fed. Perhaps looking for an easy out, many are impatiently waiting for the policy body to finally cut rates; yet this contradicts consistent warnings of inflation risks. Following Friday’s pick up in headline CPI, few economists actually expect the Fed to remove its hazard flag for price pressures.

for info:
http://biz.yahoo.com/fxcm/070321/1174498323878.html?.v=1

 

[Ichiro]

23mar-U.S. Stocks Rally, Erasing 2007 Losses, After Fed Statement

By Eric Martin

March 21 (Bloomberg) -- U.S. stocks rose the most in eight months, erasing their losses for the year, after the Federal Reserve unexpectedly abandoned its tilt toward raising interest rates. Morgan Stanley led a gain in financial shares after reporting profit that beat analysts' estimates.

Benchmark indexes climbed to their highs of the day, with the Standard & Poor's 500 Index posting its best three-day rally since April 2003. Earnings reports from software makers Oracle Corp. and Adobe Systems Inc. also lifted share prices.

Central bank officials held the benchmark interest rate at 5.25 percent for a sixth meeting, matching the estimates of all 93 economists surveyed by Bloomberg. While inflation remains the ``predominant policy concern,'' the Fed dropped a reference to ``additional firming'' in its statement.

``We've been waiting for the Fed to be on our side,'' said Michael Mullaney, who manages $10 billion at Fiduciary Trust Co. in Boston. ``The Fed's next move is probably going to be a cut, and probably sometime no later than August.''

The S&P 500 added 24.18, or 1.7 percent, to 1435.12 at 3:05 p.m. in New York. The Dow Jones Industrial Average increased 162.87, or 1.3 percent, to 12,450.97. The Nasdaq Composite Index rose 40.83, or 1.7 percent, to 2449.04.

Stocks gained yesterday after a government report showed housing starts in February rebounded from a nine-year low.

Today, more than seven stocks rose for every one that declined on the New York Stock Exchange. Almost 1.1 billion shares changed hands on the Big Board, 33 percent less than the same time a week ago.

for info:
http://www.bloomberg.com/apps/news?pid=20601087&sid=atKmElh6KRTU&refer=worldwide

 

[Ichiro]

23mar-Asian Stocks Rise for Fifth Day; Rinker Gains on U.S. Growth

By Stuart Kelly

March 21 (Bloomberg) -- Asian stocks rose for a fifth day, set for this month's best close.

Taiwan Semiconductor Manufacturing Co. and Rinker Group Ltd., the largest supplier of cement blocks in the U.S., led gains among exporters after the U.S. reported a bigger-than- expected increase in housing starts, easing concern a property slump will derail expansion in the world's largest economy.

``Sustainable U.S. demand will help support Asian exporters' profit outlook,'' said Phil Chen, who manages $154 million at Grand Cathay Securities Investment Trust Co. in Taipei. ``It will be more resilient than many people have expected.''

The Morgan Stanley Capital International Asia-Pacific Excluding Japan Index climbed 0.4 percent to 400.50 as of 4:03 p.m. in Hong Kong. That's the highest close since Feb. 27, when the biggest drop in China's shares in a decade sparked a five- day rout that erased $3.3 trillion of market value globally.

Japan's markets were shut today for the vernal equinox holiday, while benchmarks for China's two exchanges set new highs. The Shanghai Composite Index climbed 0.8 percent to 3057.38 and the Shenzhen Composite added 1.4 percent.

BHP Billiton and Rio Tinto Group paced gains among mining stocks after copper prices extended a rally to a three-month high after the housing report damped concern U.S. demand will flag. PetroChina Co. and PTT Pcl declined after crude oil for May delivery fell yesterday for the third time in four days.

for info:
http://www.bloomberg.com/apps/news?pid=20601080&sid=axQTDnPRHFIg&refer=asia

 

[Ichiro]

22mar-European Stocks Rise on Takeover Outlook; British Airways Gains

By Adria Cimino

March 21 (Bloomberg) -- European stocks rose for a fifth day on speculation mergers and acquisitions will increase. British Airways Plc, Iberia Lineas Aereas de Espana and Nutreco Holding NV climbed as investors bet they will be takeover targets.

``There's a lot more activity with buyouts, which is supportive of equities,'' said Daniel Broby, who helps manage $14 billion as chief investment officer at Bankinvest in Copenhagen. ``It is okay to resume buying again.''

The Dow Jones Stoxx 600 Index climbed 0.4 percent to 368.75 in London. The Stoxx 50 added 0.2 percent and Euro Stoxx 50, a measure for the 13 nations sharing the euro, was little changed.

So far this year, mergers and acquisitions in Europe have totaled $323 billion, according to data compiled by Bloomberg. Deals reached a record $1.4 trillion in 2006.

CNP Assurances SA had the biggest gain since 2000 as the insurer reported an increase in earnings. British building companies Wolseley Plc and Balfour Beatty Plc rose after U.K. Chancellor of the Exchequer Gordon Brown announced recording spending on public services.

National benchmarks advanced in 16 of 18 western European markets. The U.K.'s FTSE 100 added 0.6 percent. France's CAC 40 was little changed and Germany's DAX rose 0.2 percent.

British Airways, Europe's third-largest airline, advanced 3.3 percent to 519.5 pence on expectations it may receive a bid from Emirates, the largest Arab airline.

``British Airways, which was earlier tipped as a candidate to bid for Iberia, is now rumored to attract the interest of Emirates,'' said Jawaid Afsar, a trader at Securequity Ltd. in Sheffield, England.

`Very Surprising'

Laura Goodes, a spokeswoman at British Airways, said the company never comments on market speculation. Tim Clark, president of Emirates, denied interest in buying British Airways and said the takeover talk was ``very surprising.''

Iberia, Spain's biggest airline, advanced 3.4 percent to a record 3.70 euros on speculation the so-called open skies agreement may lead to a bid from Deutsche Lufthansa AG. Yesterday the shares soared 8.8 percent.

At present there is no agreement, offer or proposal of any kind, Madrid-based Iberia said today.

for info:
http://www.bloomberg.com/apps/news?pid=20601085&sid=aetsVwF1R9R8&refer=europe

 

[Ichiro]

23mar-European Stocks Rally on Fed Statement; Daimler, Siemens Gain

By Sarah Jones and Alexis Xydias

March 22 (Bloomberg) -- European stocks headed for the longest rally this year after the Federal Reserve in the U.S. indicated it's no longer inclined to raise interest rates.

DaimlerChrysler AG and Siemens AG, which make a large proportion of sales in the world's biggest economy, led a sixth day of gains in the Dow Jones Stoxx 600 Index. Eiffage SA and Valeo SA rose on takeover speculation.

``It's reassuring that we are coming to the end of this tightening bias,'' said Fabrice Theveneau, head of pan-European equity research at Societe Generale in Paris. ``We are seeing more energy coming into the market with merger and acquisition activity. The Fed is just adding to the good news.''

The Stoxx 600 added 1.2 percent to 373.31 at 12:04 p.m. in London. The Stoxx 50 rose 1.5 percent and Euro Stoxx 50, a measure for the 13 nations sharing the euro, gained 1.7 percent.

Asian stocks climbed to a three-week high and U.S. stocks yesterday posted the biggest gain in eight months after the Fed dropped a reference to ``additional firming'' in its statement.

Fed officials held the benchmark interest rate at 5.25 percent for a sixth meeting, matching the estimates of all 94 economists surveyed by Bloomberg.

Next Plc climbed to a record after the clothes retailer said annual profit rose. AXA SA and Allianz SE led Europe's largest insurers higher after Merrill Lynch & Co. recommended investors increase their holdings in the industry.

National benchmarks rose in all 18 western European markets that were open. The U.K.'s FTSE 100 added 0.7 percent. France's CAC 40 gained 1.4 percent and Germany's DAX rose 1.9 percent.

`Good Buy'

``Stocks are well priced if the Fed keeps rates unchanged or even lowers them once,'' said Joaquin Garcia Huerga, who helps manage $1.5 billion at Ahorro Corporacion Gestion in Madrid ``Companies also seem to be feeling that stocks are a good buy. We see more mergers and acquisitions.''

DaimlerChrysler, which makes most of its sales in the U.S, climbed 2.4 percent to 58.38 euros. Siemens surged 3.3 percent to 82.35 euros. UBS AG, which counts the Americas as its largest market after Europe, added 2.5 percent to 73.3 Swiss francs.

Eiffage, France's third-biggest construction company, gained 8.6 percent to 92.52 euros. The shares surged as much as 17 percent on speculation that Sacyr Vallehermoso SA, Spain's fifth- largest builder, will make a takeover approach.

info:http://www.bloomberg.com/apps/news?pid=20601085&sid=agpEsFBs.4n0&refer=

 

[Ichiro]

23mar-Asian Stocks Rise to 3-Week High on Fed Stance; Sony Advances

By Darren Boey and Chua Kong Ho

March 22 (Bloomberg) -- Asian stocks climbed to a three- week high after the U.S. Federal Reserve abandoned its bias toward an increase in interest rates. Sony Corp. and Samsung Electronics Co. led gains among exporters.

``Asia's growth is still geared toward trade with the U.S.,'' said Peter Chiang, who helps oversee about $8 billion as chief investment strategist at DBS Asset Management in Singapore. ``The Fed's comments give it more leeway to ease interest rates and provide relief to a market that's worried about a fallout from a slowing U.S. economy.''

Cnooc Ltd. advanced as crude-oil prices rose for a third day, while a rise in gold prices helped lift Newcrest Mining Ltd. Cheung Kong (Holdings) Ltd. and Cosco Pacific Ltd. reported higher earnings, helping lift Hong Kong's Hang Seng Index.

The Morgan Stanley Capital International Asia-Pacific Index added 1.7 percent to 145.84 at 5:04 p.m. in Tokyo. It's set for the highest close since Feb. 27, the day a plunge in Chinese stocks triggered a global rout that erased $3.3 trillion of market value. All of the benchmark's 10 industry groups rose.

The Nikkei 225 Stock Average climbed 1.5 percent to 17,419.20 and the Topix index added 1.4 percent, boosted by gains in Nippon Steel Corp. and JFE Holdings Inc. after Japan's steel exports increased. China's key stock index advanced to a record, completing its recovery from the recent sell-off, while Pakistan was the only market to decline in the region.

info:
http://www.bloomberg.com/apps/news?pid=20601080&sid=aBqsubigwqCg&refer=asia

 

[Ichiro]

23mar-Japan Land Prices Rise for First Time in 16 Years (Update2)

By Finbarr Flynn

March 22 (Bloomberg) -- Land prices in Japan rose for the first time in 16 years as overseas and domestic investors competed to acquire properties in the country's three biggest cities.

Gains in Tokyo, Osaka and Nagoya compensated for a drop in regional areas. Average commercial land prices in the three cities rose 8.9 percent and residential 2.8 percent in the year ending Dec. 31, the Ministry of Land, Infrastructure and Transport said in report released today.

``Japan is becoming a country of cities, and those companies leveraged to urban real estate will do best,'' said Eric Starr, a Japanese stock portfolio manager at Connecticut-based Forest Investment Management LLC, which manages about $820 million in assets. ``I see real estate as a multi-year trade in Japan.''

Land values are still recovering from the collapse of an asset bubble at the start of the 1990s and the ensuing decade of declines. Overseas investors continue to pour money into Japanese real estate, attracted by low interest rates, economic growth and new securitization deals. The investment rush has sparked fears that a new land bubble may emerge in certain areas.

The Bank of Japan said in its Financial System Report last week that it was ``necessary to carefully watch future developments in the real estate markets and their effect on the financial system.'' Japanese interest rates are still the lowest among developed economies after the bank raised rates to 0.5 percent last month.

``The possibility of the Bank of Japan raising interest rates faster than the market expects has emerged with this data,'' said Yoji Otani, an analyst at Credit Suisse Securities Japan Ltd. in Tokyo. ``The current phenomenon in land prices is becoming a problem. The BOJ has good evidence of that now.''

info:
http://www.bloomberg.com/apps/news?pid=20601068&sid=ahAySDWegbzM&refer=economy

 

[Ichiro]

23mar-U.S. Stock-Index Futures Are Little Changed; Motorola Declines

By Sarah Thompson

March 22 (Bloomberg) -- U.S. stock-index futures were little changed after Motorola Inc. said profit and sales this year won't meet its forecast, raising concern that companies' earnings may miss estimates.

Motorola, the world's No. 2 mobile-phone maker, ``may have started investors worrying about first-quarter earnings,'' said Simon Carter, head of North American equities at Aegon Asset Management in Edinburgh, where he helps oversee $3 billion.

Shares of Motorola slid in Europe. Wal-Mart Stores Inc. fell after the world's largest retailer said it will pay $530 million in bonuses to U.S. workers.

Exxon Mobil Corp., the world's biggest investor-owned oil company, rose on higher crude prices. Nike Inc., the world's largest athletic-shoe maker, declined before reporting earnings.

Standard & Poor's 500 Index futures expiring in June decreased 0.7 to 1444.3 at 11:42 a.m. in London. The S&P 500 yesterday had its best performance since July. Dow Jones Industrial Average futures rose 5 to 12,528. Nasdaq-100 Index futures were unchanged at 1825.

The U.S. stock market posted its biggest gain in eight months yesterday, wiping away most of the losses for the year, after the Federal Reserve indicated it is no longer biased toward higher interest rates.

Earnings reports today may add insight on whether Motorola's reduced profit and sales forecast signals that U.S. companies' earnings are heading lower, while a government report on jobless claims will offer guidance on the pace of economic growth.

Jobless Claims

First-time claims for jobless benefits in the U.S. rose last week to 323,000 from 318,000 the prior week, according to the median estimate of 39 economists surveyed by Bloomberg News.

info:
http://www.bloomberg.com/apps/news?pid=20601084&sid=aTvvBlFvLgDQ&refer=stocks