Monday, December 21, 2009

Financial News Flash


India Must Tighten Monetary Policy to Curb Prices, Ex-Governor Jalan Says India’s central bank needs to drain cash from the economy to check speculation in commodities, former Governor Bimal Jalan said, after food price inflation climbed to an 11-year high this month.

Sensitive Index Decliness to Six-Week Low, Led by Construction Companies India’s stocks fell to a six-week low, led by Jaiprakash Associates Ltd. and other construction stocks after former Governor Bimal Jalan said the nation’s central bank needs to drain cash from the economy.

Reliance Snaps Eight-Day Losing Streak as Investors Buy `Underperformer' Reliance Industries Ltd. snapped an eight-day losing streak in Mumbai trading as investors bought the underperforming shares, undeterred by a report that India’s regulator has asked the government to act against the explorer.

Oil Gains After Nigeria, Iraq Pipeline Attacks, U.S. Dollar Pares Advance Crude oil rose for a second day after attacks on energy facilities in Nigeria and Iraq, OPEC’s third- and seventh-largest oil producers.

Gold Advances After Third Weekly Decline Increases Demand From Investors Gold climbed for a second day as the metal’s longest losing streak since June and a weaker dollar boosted investor demand.

India's Uranium Need to Grow 10-Fold by 2020, Nuclear Power's Ghai Says India’s need for uranium will increase 10-fold by 2020 as Asia’s third-largest energy consumer boosts nuclear power generation, the country’s monopoly atomic generator forecast today.

Ten-Year Government Bonds Decline on Rate Outlook, Yields at 14-Month High India’s 10-year bonds fell, pushing yields to their highest close in 14 months, on speculation the fastest food price gains since 1998 will prompt the central bank to raise borrowing costs.

India to Hold 3G Auction on Schedule in January, Give Spectrum by August India’s auction of airwaves for third-generation mobile-phone services will be held as planned in January and winners will get spectrum by August 2010, Telecommunications Minister Andimuthu Raja said today.

Dollar Near 3-Month High on U.S. Economy Optimism, Europe Credit Concern The dollar traded near a three-month high against the euro as signs that the world’s largest economy is gaining traction and lingering credit concerns in Europe buoyed demand for the greenback.

India's Rupee Drops as Dollar Rebound Speculation Stokes Importer Demand India’s rupee fell for a second day on speculation local importers stepped up dollar purchases amid expectations the greenback will add to this month’s gains versus the major currencies.

Treasury Yield Curve Steepens to Record on Outlook for Economic Recovery The difference between 2- and 10- year Treasury notes widened to a record as investors bet an accelerating economic recovery will fuel inflation and damp demand for government debt as the U.S. borrows record amounts.

Stocks Climb, Bonds Fall on Global Economic Recovery; Carbon Permits Drop Stocks rose and bonds dropped around the world on evidence that the economic recovery is gathering momentum. Carbon-permit prices fell as leaders agreed not to set binding emissions targets at the Copenhagen climate summit.

Credit Suisse Names Sim Global Head of M&A in Shake-Up of Advisory Groups Credit Suisse Group AG, Switzerland’s biggest bank by market value, named Boon Sim global head of mergers and acquisitions in a shake-up of its teams advising U.S. and European companies on takeovers.

Dubai World Didn't Present Standstill Offer to Restructure Debt at Meeting Dubai World did not present a “standstill” offer to banks at a meeting today as the state- owned holding company provided part of a plan to restructure about $22 billion of debt, a Dubai World spokesman said.

Last-Minute Shopping May Counter U.S. Snowstorm; Sales Forecast Unchanged Last-minute shopping in the days leading up to Christmas may make up for lost weekend sales on the U.S. East Coast after record snowfalls shut stores early and kept shoppers at home, the National Retail Federation said.

Dollar Strength Signaled in Stock Correlation First Time Since Lehman Died The dollar is rallying in tandem with stocks and commodities for the first time since before Lehman Brothers Holdings Inc.’s bankruptcy last year sparked the financial crisis, signaling the worst may be over for the greenback.

E*Trade Names Druskin Interim CEO After Failing to Find Layton Successor E*Trade Financial Corp. named Robert Druskin as chairman and interim chief executive officer after failing to find a permanent replacement on time for Donald Layton, who helped save the online brokerage from collapse.

source: Bloomberg