Economy has improved: Prime Minister
>> Nov 15, 2009
Speaking at the 33rd FPCCI Export Trophy ceremony held at the Governor House he claimed that the economic health of the country had improved despite international and domestic adversities. He exhorted the business community to compete in the international market effectively, while keeping these principles in their mind.
CCP opposes Competition Amendment Bill
Competition (Amendment) Bill, 2009 has been presented before the National Assembly to amend the Competition Ordinance 2007.
In this regard, the Competition (Amendment) Bill, 2009 has proposed amendment of section 38 of the ordinance.
When the amendment Bill was moved before the Parliament, the Ministry of Finance sought viewpoint of the CCP on the proposed amendment.
The CCP has opposed the Competition (Amendment) Bill, 2009 with the plea that there is no need of further amendments in the Competition Ordinance 2007.
It is not the appropriate time to introduce such kinds of amendments, as penalties under the existing law are enough for smooth implementation of the new law.
The CCP had further informed the Ministry of Finance that the amendment should not be incorporated in the Competition Ordinance 2007 at this stage.
The prescribed penalties are enough under the law, it would be appropriate to access the enforcement of the law and after the adequate experience gained by the Commission in its implementing, say two to three year, before any amendment can be rationally proposed.
The law has been carefully drafted incorporating best international practices.
The amendments proposed by the private member of the National Assembly would appear to be highly unsuitable under current circumstance of country.
At this stage, it is crucial to pass the Competition Ordinance 2007 by the National Assembly to check cartelization, deceptive marketing practices and collusive behaviour by certain undertakings. Read more...
Booming precious metal prices drive gold rush
CHICAGO: With gold futures closing at a new high, commodities investors will be watching the market closely to see if the gold rush continues Thursday.
While market analysts have been surprised by the trend, investors concerned with the dollar hitting a 15-month low continue to mine the market. The effect has hit Main Street
The price of the gold hit a record $1,119 an ounce on Wednesday — confounding market analysts who thought there was no way gold would remain so expensive when it first cracked the unheard-of $1,000 mark last year.
The remarkable run has implications far beyond savvy investors. In New York
‘They’re bringing in jewelry from the ‘70s and ‘80s they don’t wear anymore,’ he said. ‘They’re following the news and see prices are high. They realize they have a little cache, and want to take it out of the vault.’
Typically, gold is a safe place for investors to park their money, not something they buy to make money. It doesn’t earn any interest, and because it’s always sought-after, its value tends to be fairly stable. For example, when gold first reached $1,000 it was in March 2008, shortly after the collapse of investment bank Bear Stearns. Investors bought it up then because they feared for the stability of the financial system.
This time is different. Investors — think of them as the ‘09ers — are buying gold to protect themselves against the falling dollar.
Currencies are weak investments around the world because of record-low interest rates. Foreign banks that hold substantial amounts of US debt, such as China India
The surge has been remarkable. Gold is up 7 per cent just this month, and 26 per cent for the year. Some forecasters see it going to $1,200, $1,500 or beyond — unless the buying frenzy comes to a halt.
Some analysts are panning the gold speculation.
‘You just don’t see increases like this over the short term’ that last, says Steve Condon, director of investor advisory services for Truepoint Capital in Cincinnati
The rising price of gold has put a dramatic dent in jewelry sales, already suffering from the recession. Far fewer customers are looking to buy gold jewelry because of the soaring price, Perry said.
‘I think it will just about kill the gold jewelry business’ if the price rises and remains above $1,500 an ounce, Perry said. He predicted silver would become the primary metal used in jewelry if gold prices drive customers out of the market.
For the most part, though, demand for gold is coming from investors and speculators, not from people who actually want to use it. Demand for gold for jewelry and for industrial and dental uses was already falling during the second quarter, according to the latest data available from the World Gold Council.
Perry said customers looking to sell their gold should go to dealers with plenty of experience and expect to get, on average, about 70 per cent of the current price. And there are other ways to get into gold than selling family heirlooms.
There are gold funds, publicly traded gold mining companies and gold bullion or coins, depending on what makes someone the most comfortable. No way is certain to be the safest or most lucrative.
And of course, there’s no guarantee the bubble won’t burst.
Gold prices could fall when interest rates rise, the dollar strengthens, or when optimism about the economy takes hold again, as happened briefly the first time gold reached $1,000. If that happens, the damage could be long-lasting: Gold reached $850 an ounce in 1980, then took 28 years to return to that level. (Gold’s peak in 1980 is about $2,300 in 2009 dollars.) Anyone who’s not sure whether this is a good time to buy can take heart from a Goldman Sachs forecast on Wednesday that said gold prices could reach $1,200 by year’s end. But it’s hard to forget what happened with crude oil prices, which shed more than half their value in less than a year after peaking at $147 a barrel in July 2008.
No one knows when a seemingly unstoppable rally will end badly.— AP
Read more...
123 US banks go bust
Sunday, November 15, 2009
WASHINGTON: Regulators seized three more US banks on Friday, bringing the total number of bank failures this year to 123, the highest annual level since 1992.
Bank regulators closed Orion Bank of Naples, Fla, Century Bank, Federal Savings Bank of Sarasota, Fla and Pacific Coast National Bank of San Clemente, California.
The failures on Friday are estimated to cost the FDIC’s insurance fund a total of $986.4 million. The Federal Deposit Insurance Corp said Orion Bank had total assets of $2.7 billion and total deposits of about $2.1 billion. The 23 branches of Orion Bank will reopen on Saturday as branches of Lafayette, Louisiana-based Iberia bank, the FDIC said. Century Bank had total assets of $728 million and total deposits of about $631 million. Century Bank, FSB’s 11 branches also will reopen on Saturday as branches of Iberia bank. Pacific Coast National Bank had total assets of $134.4 million and total deposits estimated at $130.9 million, according to the FDIC. It had two branches, which will reopen on Monday as branches of Sunwest Bank of Tustin, California.
FDIC Chairman Sheila Bair has said the pace of bank failures will remain elevated through next year, especially as the commercial real estate sector continues to suffer.
Last year, 25 US banks failed, compared to just three in all of 2007. The FDIC said depositors of the failed banks can continue to access their money by writing checks or using ATM or debit cards. The FDIC insurance fund’s balance, which is used to insure bank accounts up to $250,000, went negative at the end of the third quarter, drained by a rising tide of bank failures.
Thar coal project to tackle energy crisis: KCCI
Sunday, November 15, 2009
By our correspondent
KARACHI: Long-delayed Thar coal energy project gained momentum as Sindh Chief Minister Syed Qaim Ali Shah signed an agreement under Public-Private Partnership mechanism to execute the programme. The chief minister also prioritised work for Hyderabad-Mirpurkhas dual-carriage highway.
Welcoming these initiatives, Karachi Chamber of Commerce and Industry President Abdul Majid Haji Muhammad said both ventures held significance and would prove a milestone in the prosperity and development of Sindh and Pakistan, said a press release issued here on Saturday.
“The Hyderabad-Mirpurkhas dual-carriage highway will reduce travelling time between the two cities and benefit commuters, business travellers and residents of these areas. Commodities will be swiftly transported between the two cities and to other destinations,” he said.
Commenting on the Thar coal energy project, the KCCI president said it had been neglected since its proposal in 1992. “The execution of the project is important because it will control and curtail energy crisis and provide cheaper energy as compared to contemporary energy solutions available in the country.”
UBL Capital Fund-I rated ‘AA+’
Sunday, November 15, 2009
KARACHI: UBL Capital Protected Fund-I, a closed-end fund managed by UBL Fund Managers, has recently been assigned a Capital Protection Fund Rating (CPFR) of ‘AA+ (cpf)’ by JCR-VIS Credit Rating Company.
This rating indicates a very high probability of timely repayment of principal investment. The risk is modest but may vary slightly from time to time because of changes in economic conditions.
Launched in April 2008, UCPF-I is a three-year fixed-term fund that aims to provide high returns by capturing potential upward market movements by investing in equity markets.
In August this year, the fund announced stock dividend and issued bonus certificates in the proportion of three certificates for every 100 certificates for its investors which translated into three per cent of the par value of Rs10 per certificate.
Gold sparkles, hitting historic peak above $1,123
Sunday, November 15, 2009
LONDON: Gold blazed a record-breaking trail above $1,123 this week due to buoyant equities and the weak greenback, which makes it cheaper for buyers using stronger currencies and tends to boost demand.
Elsewhere, crude dived close to one-month lows as oil traders switched focus to weak demand and rising inventories in key energy consuming nation the United States, analysts said.
PRECIOUS METALS: The price of gold surged to an all-time pinnacle of $1,123.38 per ounce here on Thursday. “The metal remained supported by stronger equities and the weaker dollar,” said James Moore, analyst at specialist metals website TheBullionDesk.com. The metal also won support from fears over a possible spike in inflation, as gold is widely regarded by investors as a safe store of value.
Gold, which has risen more than 20 per cent in value this year, has a bright future thanks to improving demand caused by the financial crisis, according to industry experts. However, the glamorous commodity pared gains ahead of the weekend as many traders cashed in profits.
“The rally in gold looks exhausted at current levels as traders talk of taking money off the table ahead of the weekend,” said ETX Capital trader Manoj Ladwa. “While the long-term trend remains in place, some are happy booking a profit in case of any sharp sell-off.” By late Friday on the London Bullion Market, gold rose to $1,104 an ounce from $1,096.75 a week earlier. Silver slid to $17.32 an ounce from $17.52. On the London Platinum and Palladium Market, platinum was unchanged at $1,359 an ounce at the late fixing on Friday from the previous week. Palladium climbed to $354 an ounce from $330.
OIL: World oil prices sank heavily this week as traders fretted over weak US energy demand, and despite news that the eurozone has officially emerged from recession.
“Prices fall to their lowest level in almost a month, pressurised by a bearish set of US weekly oil data,” said Barclays Capital analyst Kevin Norrish in a research note to clients. “Yesterday’s US data shows a continuation of the trend which has now been in place for a while, whereby the supply system tries to adjust to continued weak demand.” Crude futures had slumped on Thursday on a huge jump in US crude stockpiles indicating weaker American demand for oil. New York crude had dropped $2.34 and London Brent oil shed $1.93. The US Department of Energy said American crude oil reserves surged 1.8 million barrels in the week ending November 6, more than the 200,000 barrels anticipated by the market.
US gasoline or petrol stockpiles unexpectedly jumped by 2.5 million barrels while distillates, which include diesel and heating fuel, rose by around 300,000 barrels. In earlier deals on Friday, prices had traded in positive territory, in line with the weaker dollar, and in a knee-jerk reaction to Thursday’s sharp falls.
The European single currency firmed against the dollar on Friday after news that the eurozone recession has officially ended. Europe’s deepest recession since World War II officially ended on Friday when the world’s biggest single trading bloc joined Japan and the United States in returning to growth, official data showed. Traders also assessed the latest monthly review from the Paris-based International Energy Agency (IEA), a global energy watchdog advising top industrialised nations.
Global oil demand is heading higher than expected as economic recovery gathers pace notably in China, but rising prices could derail expansion, the IEA said earlier this week. By Friday on the New York Mercantile Exchange (NYMEX), light sweet crude for delivery in December sank to $76.41 from $78.85 a week earlier. On London’s InterContinental Exchange (ICE), Brent North Sea crude for December delivery dropped to $75.65 from $77.28.
BASE METALS: Base metals prices mainly fell, holding underneath their recent high points, traders said. “Overall, the base metals remain in limbo, below recent highs, but in most cases seemingly well supported, so we expect them to take the lead from broader market sentiment,” said analysts at BaseMetals.com. By Friday on the London Metal Exchange, copper for delivery in three months fell to $6,492 a tonne from $6,500 a week earlier.
Three-month aluminium firmed to $1,933 a tonne from $1,916. Three-month lead decreased to $2,251 a tonne from $2,315. Three-month tin slipped to $14,680 a tonne from $14,775. Three-month zinc eased to $2,165 a tonne from $2,194. Three-month nickel recoiled to $16,050 a tonne from $17,825.
COCOA: Cocoa prices lost more ground after striking a recent 24-year high on prospects of lower output from leading producer Ivory Coast. By Friday on LIFFE, London’s futures exchange, the price of cocoa for delivery in December dipped to 2,022 pounds a tonne from 2,099 pounds a week earlier. On the New York Board of Trade (NYBOT), the December cocoa contract dropped to $3,117 a tonne from $3,186.
SUGAR: Sugar diverged in cautious trade. By Friday on LIFFE, the price of a tonne of white sugar for delivery in March edged up to 593 pounds from 589.50 pounds a week earlier. On NYBOT, the price of unrefined sugar for March nudged lower to 22.56 US cents a pound from 22.63 cents.
GRAINS AND SOYA: Prices rose in choppy deals as traders tracked weather conditions in the United States. “We continue to have a choppy market,” said analyst Jason Roose at US Commodities. “If we continue to see good weather ... we could see weakness in the market.” By Friday on the Chicago Board of Trade, maize for delivery in December rose to $3.91 a bushel from $3.67 a week earlier. January-dated soyabean meal, used in animal feed, climbed to $9.99 from $9.55. Wheat for December increased to $5.38 a bushel from $4.97.
COFFEE: Coffee prices fell in London and New York. By Friday on LIFFE, Robusta for delivery in January sank to $1,311 a tonne from $1,437 a week earlier. On the NYBOT, Arabica for December eased to 134.50 US cents a pound from 139.95 cents.
RUBBER: Malaysian rubber prices rose due to widespread concerns over tight supplies, dealers said. On Friday, the Malaysian Rubber Board’s benchmark SMR20 climbed to 241.80 US cents per kilo, from 231.95 cents last week.
Subscribe to:
Posts (Atom)