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Alcoa Master Agreement Ratified

June 26, 2010 By vani Leave a Comment

NEW YORK–(Business Wire)–
Alcoa announced today that a new four-year contract covering 5,400 employees at
10 Company locations in the United States has been ratified by members of the
United Steelworkers (USW).

“This new agreement is a good outcome for our employees, shareholders, customers
and communities. We believe that this was a successful negotiations process,
with contributions by both sides, and we are pleased that our employees ratified
the contract,” said Mick Wallis, president of Alcoa North American Rolled
Products and chair of the Company`s Employee Relations Council.

“Now that we have a new long-term agreement, we can focus our energy and efforts
on meeting the challenges of our businesses and working together to build a
better future for these plants.”

The new agreement was approved after voting yesterday.

The previous contract expired May 31. Alcoa and the USW reached a tentative
agreement after two weeks of bargaining in May. More information about the
negotiations can be found at www.alcoanegotiations.com.

About Alcoa

Alcoa is the world`s leading producer of primary aluminum, fabricated aluminum
and alumina. In addition to inventing the modern-day aluminum industry, Alcoa
innovation has been behind major milestones in the aerospace, automotive,
packaging, building and construction, commercial transportation, consumer
electronics and industrial markets over the past 120 years. Among the solutions
Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as
well as Alcoa wheels, fastening systems, precision and investment castings, and
building systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral part of
Alcoa`s operating practices and the product design and engineering it provides
to customers. Alcoa has been a member of the Dow Jones Sustainability Index for
eight consecutive years and approximately 75 percent of all of the aluminum ever
produced since 1888 is still in active use today. Alcoa employs approximately
59,000 people in 31 countries across the world. More information can be found at
www.alcoa.com.

Alcoa
Investors:
Matthew E. Garth, 212-836-2674
or
Media:
Kevin G. Lowery, 412-553-1424
Mobile: 724-422-7844

Filed Under: International News Tagged With: Alcoa, Alcoa Wheels, Alumina, Aluminum Industry, better future, Commercial Transportation, Dow Jones, Dow Jones Sustainability, Dow Jones Sustainability Index, Employee Relations, Extrusions, Fastening Systems, forgings, Industrial Markets, Investment Castings, Light Metals, Mick Wallis, Tentative Agreement, United Steelworkers, york business

German stocks – Factors to watch on June 22

June 23, 2010 By vani Leave a Comment

June 22 (Reuters) – The following are some of the factors that may move German stocks on Tuesday:

Energy

BASF (BASF.DE)

The world’s biggest chemical maker is set to sign a deal with private equity owners of Cognis [COGN.UL] on a takeover of the German maker of additives, according to German dailies Welt and Sueddeutsche Zeitung.

Climate Corps 2010: Searching for Energy Savings at News Corp. Climate

June 17, 2010 By vani Leave a Comment

Behemoth printing presses scaling two whole floors tower above me in this multi-floor room. High-tech machines insert today’s advertisements in between completed newspapers. Massive paper rolls arrive via train and are stacked five high, each one of them weighing a ton. I can’t help but think, “I’m glad New York City does not lie on a fault line!”

And so went my first day as an EDF Climate Corps fellow at News Corporation’s Bronx printing facility where nearly 1 million copies of the Wall Street Journal and New York Post are printed daily. I’ll be spending 10 weeks with News Corp. and Dow Jones analyzing ways this 400,000-square-foot building can cut down its energy consumption.

I’ll also spend a portion of my summer working with News Corp.’s Global Energy Initiative at News Corp. Headquarters near Rockefeller Center. During this time, I’ll be benchmarking other companies that are creating sustainable development funds as well as researching how to most effectively engage employees around the globe on sustainability initiatives.

My Initial Observations:

* Lighting: “Is this thing on?” — Yes it is. The entire building is … ON. And quite bright! One thing I’m beginning to love, however, is things can happen quickly here if you want them to. By the end of my first week, I had scheduled a building walk through with a lighting retrofit company. We will meet next week to discuss the replacement of all the old light bulbs with HQEE (high quality, energy efficient) bulbs. The initial estimated cost of this project falls around $240,000. Government incentives will take care of 50 percent of the total, bringing the investment down to $120,000. Based on the number of bulbs in the building (over 700), that would make for annual energy savings of $116,000, giving this project a payback period of just one year. Talk about low-hanging fruits!

* HVAC: I think the estranged Dr. Evil put it best when he said, “It’s frickin’ freezing in here, Mr. Bigglesworth.” The building is extremely cold, which is probably costing a pretty penny in a New York City summer. I’ve spoken with the HVAC foreman about increasing some of the temperatures so that the plant isn’t so cold, especially when people are not at work. Turning each A/C unit up just one degree in a building this size could have a monumental effect on the building’s energy consumption and result in some dramatic cost savings.

One thing is for sure — there is no shortage of work to be done, both at the Bronx printing facility as well as companywide. I’m thrilled to be working for a company that promotes corporate sustainability with such zeal, as most notably demonstrated by the launch of the “Cool Change” program in 2007. Next Monday I will be visiting the Dow Jones Headquarters in Princeton, NJ. The company will be holding the public groundbreaking ceremony of its solar panel parking carport, the largest single-site solar panel project undertaken by a company to date.

Filed Under: International News Tagged With: Annual Energy, Dow Jones, energy consumption, Energy Efficient Bulbs, Energy Initiative, energy savings, fault line, government incentives, initial observations, light bulbs, new york post, News Corp, news corporation, Payback Period, Printing Facility, Printing Presses, Quality Energy, rockefeller center, Sustainability Initiatives, wall street journal

Stora Enso Plans Temporary Lay-Offs at Sawmills in Finland

June 16, 2010 By vani Leave a Comment

HELSINKI, Finland, June 15, 2010 (GLOBE NEWSWIRE) — Stora Enso will start
co-determination negotiations concerning possible temporary lay-offs at its
Finnish sawmills, which are at Kitee, Uimaharju,Varkaus and Honkalahti. The
planned lay-offs are in response to the threat that wood cost levels in Finland
will become even more uncompetitive if current trends continue.

“We are increasingly concerned by the trend in Finnish raw material prices. We
need to prepare ourselves to take rapid corrective actions if raw material
prices continue to escalate and can no longer be compensated by increases in
end-product prices or efficiency improvements,” says Hannu Kasurinen, EVP, Stora
Enso Wood Products.

The total number of employees affected by the co-determination negotiations in
Finland is about 500. The negotiations address the plan to curtail production at
individual sawmills if necessary through temporary lay-offs between 1 September
and 31 December 2010. In Finland Stora Enso has a total capacity of about 1.3
million cubic metres of sawn timber per year.

Stora Enso is a global paper, packaging and wood products company producing
newsprint and book paper, magazine paper, fine paper, consumer board, industrial
packaging and wood products. The Group is the world leader in forest industry
sustainability. We offer our customers solutions based on renewable raw
materials. Our products provide a climate-friendly alternative to many
non-renewable materials, and have a smaller carbon footprint. Stora Enso is
listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso
employs some 27,000 people worldwide, and our sales in 2009 amounted to EUR
8.9billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV, STERV)
and Stockholm (STE A, STE R). In addition, the shares are traded in the USA as
ADRs (SEOAY) in the International OTCQX over-the-counter market.

STORA ENSO OYJ

Jari Suvanto

Ulla Paajanen-Sainio

-0-
CONTACT: Stora Enso Oyj
Hannu Kasurinen, EVP, Stora Enso Wood Products
+358 2046 21222
Ulla Paajanen-Sainio, Head of Investor Relations
+358 2046 21242
Paeivi Kauhanen, Director, Communications in Finland
+358 2046 21380
www.storaenso.com
www.storaenso.com/investors

Filed Under: International News Tagged With: adrs, cubic metres, Customers Solutions, Dow Jones, Dow Jones Sustainability, Dow Jones Sustainability Index, Efficiency Improvements, Finland Helsinki, Forest Industry, Ftse4good Index, Global Paper, helsinki finland, Industrial Packaging, lay offs, Otcqx, Raw Material Prices, Renewable Materials, Renewable Raw Materials, Sawmills, Stora Enso

South African Markets – Factors to watch on June 14

June 15, 2010 By vani Leave a Comment

June 14 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Monday.

- – - -

GLOBAL MARKETS

Asian stocks rose to a one-month high on Monday, led by a rally in the technology sector, while the euro rebounded in thin trade, squeezed higher by dealers closing out of bets against the currency. [ID:nSGE65D03W]

SOUTH AFRICAN MARKETS

South Africa’s rand weakened against the dollar on Friday and stocks retreated from their highest level in a week after disappointing U.S. retail sales data dragged global markets lower.

Trading in South Africa was thin as the World Cup kicked off in Johannesburg with a match between the hosts and Mexico.

At 1522 the rand ZAR=D3 traded at 7.7278 to the greenback, 0.47 percent weaker than its previous 7.6920 close in New York.

The Johannesburg JSE’s blue chip Top-40 index .JTOPI slipped 0.83 percent to 23,990.30, while the broader All-share index fell 0.68 percent to 26,949.81. [ID:nLDE65A1SU]

GOLD XAU=

Gold rose further on Monday as investors bet a rebound in the euro could be short-lived and concerns about a global economic recovery lingered.

Although jewellers may buy gold on dips, the metal was likely to trade in range unless it passes key resistance around $1,250 an ounce. Gold struck a record at $1,251.20 last week on fears the euro zone’s sovereign debt crisis may spread. [GOL/]

WALL STREET

U.S. stocks rose in a late rally on Friday as a strong forecast from a chip maker lifted tech shares and helped alleviate concerns about the economy’s health after an unexpected drop in retail sales.

The Dow Jones industrial average .DJI gained 38.54 points, or 0.38 percent, to 10,211.07. The Standard & Poor’s 500 Index .SPX rose 4.76 points, or 0.44 percent, to 1,091.60. The Nasdaq Composite Index .IXIC climbed 24.89 points, or 1.12 percent, to 2,243.60. [.N]

EMERGING MARKETS

For the top emerging markets news, double click on [nTOPEMRG]

- – - -

Some of the main stories out of the South African press:

BUSINESS DAY

- Pick n Pay’s (PIKJ.J) pyramid structure under fire

- Fifa to probe transport as thousands stay away

BUSINESS REPORT

- Eskom scores a reprieve for Cup

- Central Rand Gold (CRGJ.J) accused of voodoo as goat and cow are sacrificed

THE STAR

-Gautrain a roaring success

(Reporting by Tiisetso Motsoeneng)

Filed Under: International News Tagged With: Asian Stocks, chip maker, Company Announcements, currency market, Debt Crisis, DJI, Dow Jones, Dow Jones Industrial, Dow Jones Industrial Average, Euro Zone, Greenback, IXIC, Market Moves, Markets News, Nasdaq Composite Index, retail sales data, share index, South African Markets, sovereign debt, thin trade

ECB’s Orphanides: Inflation not a concern: report

June 14, 2010 By vani Leave a Comment

(Reuters) – Inflation in the euro zone is not a worry despite the slightly higher forecasts in the recent European Central Bank staff projections, Governing Council member Athanasios Orphanides was quoted as saying on Sunday.

Orphanides also told the Dow Jones news agency that once the European Union’s facility to help troubled members is in place, the need for the ECB to buy bonds might end as those market segments would probably improve.

“The upward revision in the inflation forecast is primarily driven by energy and other commodity price increases. It does not reflect an underlying inflation concern,” Orphanides, who also heads the central bank of Cyprus, said in an interview with Dow Jones.

“Indeed, core inflation in the euro area has been trending down. In light of these developments, I do not view high inflation as a concern.”

Inflation expectations also remained well anchored, he said.

ECB staff projections released on Thursday showed inflation estimates at 1.4 to 1.6 percent for this year and in the range of 1.0 to 2.2 percent for next, compared with the ECB’s target of inflation below, but close to 2 percent.

Orphanides also told the news agency that talk of a Greek default was ill-informed.

“There is an element of absurdity in talking about a high probability of default by the Greek government right now,” Orphanides was quoted as saying, commenting on a Wall Street Journal survey last week, which put the default probability at 73 percent.

Orphanides also said European financial surveillance must be improved and added putting together a new agency for this purpose might be needed.

“One attractive idea is the creation of an independent fiscal agency that monitors and assesses fiscal policies across the euro area,” he said and added that sanctions and incentives for complying with rules must also be made more effective.

Orphanides also commented on the ECB’s Securities Markets Programme, through which it is buying bonds in segments hit particularly hard, indicating the ECB could end this soon, if the European Union rescue package calms markets.

In the first weeks of the programme, the ECB has bought about 40.5 billion euros worth of bonds, but has not given details of the purchases. It has not disclosed how long the programme would run.

“I could envision that, when the European Financial Stability Facility is fully operational, there will be improvements in the market segments that have not been functioning well over the past several weeks,” he said.

“Clearly, once these improvements are in place, there would no longer be a need to continue with a specific programme.”

Euro-zone countries have agreed on a 440 billion euro European Financial Stability Facility to lend money in emergency to states shut out of credit markets.

(Reporting by Sakari Suoninen; Editing by Louise Heavens)

Filed Under: International News Tagged With: Athanasios, Bank Of Cyprus, bank staff, Central Bank Of Cyprus, commodity price, Concern Report, Core Inflation, Default Probability, Dow Jones, Dow Jones News, Euro Zone, Fiscal Agency, Greek government, inflation expectations, Journal Survey, market segments, orphanides, target, upward revision, wall street journal

ECB’s Orphanides: Inflation not a concern -press

June 14, 2010 By vani Leave a Comment

June 13 (Reuters) – Inflation in the euro zone is not a worry despite the slightly higher forecasts in the recent European Central Bank staff projections, Governing Council member Athanasios Orphanides was quoted as saying on Sunday.

“Indeed, core inflation in the euro area has been trending down. In light of these developments, I do not view high inflation as a concern.”

Inflation expectations also remained well anchored, he said.

“Clearly, once these improvements are in place, there would no longer be a need to continue with a specific program. (Reporting by Sakari Suoninen; Editing by Louise Heavens)

Filed Under: International News Tagged With: Athanasios, bank staff, Buy Bonds, commodity price, Core Inflation, council member, Dow Jones, Dow Jones News, ecb, Euro Zone, European Union, financial stability, Governing Council, inflation expectations, market segments, news agency, orphanides, reuters, securities markets, upward revision

Stocks look to Europe and U.S. economy

June 14, 2010 By vani Leave a Comment

(Reuters) – Stock investors will keep a close eye on Europe this week, looking for signs the debt crisis may be stabilizing, while industrial production, housing starts and inflation data may offer more clues on the U.S. economic outlook.

On Friday, an official said the European Union has reached agreement with Greece on how to move forward with pension reform, while Spain’s economy ministry said it has not made and will not make a request for economic aid from the EU.

Market sentiment has been plagued for weeks by worries that European debt problems, including those in Greece, Spain and Hungary, could affect the global economy.

The Standard & Poor’s 500 index .SPX is now down 10.3 percent from its April 23 closing high for the year, and considered in correction territory.

“We’ve gone through a period of extreme nervousness … and problems haven’t gone away, but I think right now, global investors are little less jittery,” said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.

The Chicago Board Options Exchange’s Volatility Index .VIX or VIX, a measure of Wall Street’s anxiety, slid 5.82 percent to end at 28.79 on Friday after rising more than 20 percent a week ago.

The three major U.S. stock indexes finished with gains for the week, with the Dow Jones industrial average .DJI up 2.8 percent, the S&P 500 up 2.5 percent and the Nasdaq Composite Index .IXIC up 1.1 percent.

“I will be looking to see if the euro holds gains that we saw in the last couple of days,” Dickson said.

The euro fell against the dollar on Friday. But that was its first daily decline since Monday, when it hit $1.1876 — its lowest level since 2006.

HOUSING STARTS, PPI AND CPI

Wall Street will keep a weather eye this week on the recovery in the U.S. housing sector, still deemed fragile with the expiration of a federal tax credit for home buyers.

U.S. housing starts and building permits for May will be released on Wednesday. Economists polled by Reuters forecast that housing starts will slip to an annual pace of 650,000 units in May from April’s pace of 672,000 units.

Analysts said, however, that much of the week’s economic news could be less troubling for the market.

“I think the take-away for investors will be that the economy continues to expand, albeit at a very slow pace and inflation remains very benign,” said Hugh Johnson, chief investment officer at Johnson Illington Advisors in Albany, New York.

The data could show “that the concerns should be about deflation, not inflation,” he said.

Both the Producer Price Index and the Consumer Price Index for May are expected from the U.S. government next week.

The overall PPI for May, also due on Wednesday, is forecast to fall 0.5 percent, compared with a 0.1 percent dip in April. Core PPI, excluding volatile food and energy prices, is forecast to edge up 0.1 percent in May, compared with a gain of 0.2 percent in April.

Wednesday’s data menu will include industrial production, which is forecast to rise 0.9 percent for May, compared with a gain of 0.8 percent in April.

The overall CPI for May, due on Thursday, is seen down 0.2 percent, compared with a 0.1 percent drop in April. Core CPI for May is forecast to rise just 0.1 percent, following no change in April.

EXERCISE YOUR OPTIONS

One high-profile item on Wall Street’s agenda will be the initial public offering of the CBOE (CBOE.O), North America’s last independent major financial exchange. The IPO is expected to be priced on Monday evening, with the stock set to start trading on Tuesday. For details, see [nN11109696]

Investors will pay close attention on Wednesday when Federal Reserve Chairman Ben Bernanke speaks on financial reform.

Stocks got a boost last week after Bernanke said the economic recovery appeared to be on solid footing and he expects the economy to keep growing.

Only a handful of Standard & Poor’s 500 companies are scheduled to report financial results this week. Among them are Best Buy Co(BBY.N) and FedEx Corp(FDX.N).

This Friday marks the so-called “quadruple witching” period, a term used by professional traders for the quarterly settlement and expiration of four different types of June equity futures and options contracts.

The event, which starts on Thursday, can lead to greater volume and volatility as players adjust or exercise their derivative positions.

(Reporting by Caroline Valetkevitch; Additional reporting by Doris Frankel; Editing by Jan Paschal)

Filed Under: International News Tagged With: Chicago Board Options, Chicago Board Options Exchange, Chief Market Strategist, Davidson Co, Debt Crisis, Dow Jones, economy ministry, Federal Tax Credit, global economy, Global Investors, housing starts, Inflation Data, IXIC, Lake Oswego Oregon, market sentiment, Nasdaq Composite Index, stock indexes, Stock Investors, Volatility Index Vix, Weather Eye

RPT-Wall St Week Ahead: Stocks look to Europe, U.S. economy

June 14, 2010 By vani Leave a Comment

June 13 (Reuters) – U.S. stock investors will keep a close eye on Europe this week, looking for signs the debt crisis may be stabilizing, while industrial production, housing starts and inflation data may offer more clues on the U.S. economic outlook.

Market sentiment has been plagued for weeks by worries that European debt problems, including those in Greece, Spain and Hungary, could affect the global economy.

The Standard & Poor’s 500 index .SPX is now down 10.3 percent from its April 23 closing high for the year, and considered in correction territory.

The Chicago Board Options Exchange’s Volatility Index .VIX or VIX, a measure of Wall Street’s anxiety, slid 5.82 percent to end at 28.79 on Friday after rising more than 20 percent a week ago.

“I will be looking to see if the euro holds gains that we saw in the last couple of days,” Dickson said.

The euro EUR= fell against the dollar on Friday. But that was its first daily decline since Monday, when it hit $1.1876 — its lowest level since 2006.

HOUSING STARTS, PPI AND CPI

Wall Street will keep a weather eye this week on the recovery in the U.S. housing sector, still deemed fragile with the expiration of a federal tax credit for home buyers.

Analysts said, however, that much of the week’s economic news could be less troubling for the market.

The data could show “that the concerns should be about deflation, not inflation,” he said.

Both the Producer Price Index and the Consumer Price Index for May are expected from the U.S. government next week.

Wednesday’s data menu will include industrial production, which is forecast to rise 0.9 percent for May, compared with a gain of 0.8 percent in April.

The overall CPI for May, due on Thursday, is seen down 0.2 percent, compared with a 0.1 percent drop in April. Core CPI for May is forecast to rise just 0.1 percent, following no change in April.

EXERCISE YOUR OPTIONS

Investors will pay close attention on Wednesday when Federal Reserve Chairman Ben Bernanke speaks on financial reform.

Stocks got a boost last week after Bernanke said the economic recovery appeared to be on solid footing and he expects the economy to keep growing.

Only a handful of Standard & Poor’s 500 companies are scheduled to report financial results this week. Among them are Best Buy Co(BBY.N) and FedEx Corp(FDX.N).

The event, which starts on Thursday, can lead to greater volume and volatility as players adjust or exercise their derivative positions.

An early look at the soon-to-expire June open interest on the S&P 500 indicates a potential pinning at the 1,100 strike price, said Scott Fullman, director of derivative investment strategy at broker-dealer WJB Capital Group, in New York. (Wall St Week Ahead runs every Sunday. Questions or comments on this column can be e-mailed to: caroline.valetkevitch(at)thomsonreuters.com) (Reporting by Caroline Valetkevitch; Additional reporting by Doris Frankel; Editing by Jan Paschal)

UPDATE 1-Japan retail fund value drops $54 bln on debt crisis

June 12, 2010 By vani Leave a Comment

TOKYO, June 11 (Reuters) – The value of investment trust
funds targeting Japanese retail investors fell by $54 billion in
May — the largest drop since October 2008 — as Europe’s debt
crisis weighed on global shares and lifted the yen, data from an
industry body showed on Friday.

Market turmoil stemming from debt woes in Greece and other
European countries pushed down Japan’s broader Topix index
by 11 percent and the Dow Jones industrial average
.DJI by 8 percent during the month.

In addition, the value of publicly placed investment funds
known as “toushin” was also hit by the strength of the yen,
especially versus the euro. It surged by more than 10 percent
against the European currency in May.

Still, Japanese retail investors’ appetite for investment
funds failed to slow down, with the toushin market seeing net
inflows for the 14th straight month at 141.8 billion yen, the
Investment Trusts Association of Japan data showed.

Japanese individuals, who hold some $15 trillion in personal
assets with more than half kept in low yielding savings
accounts, have been keen to take exposure in foreign instruments
to collect higher returns.

Japanese retail money went into equities funds, such as
Nomura Asset Management’s global auto equities funds, which
attracted 91.5 billion yen on the day of the launch in May.

The overall value of publicly placed toushin fell by 4.89
trillion yen ($53.5 billion), or 7.5 percent, to 60.5 trillion
yen in May from the previous month when it topped a pre-Lehman
level of 65.4 trillion yen.

Retail investors did not panic even though the market
turmoil pushed down share prices and lifted the yen, and they
might have pulled out from money reserve funds and shifted into
equities funds, said Katsuhiro Konishi, the association’s
secretary general.

“I believe retail investors were calm during the crisis,”
Konishi told a news conference. “It’s likely that investors
bought equities funds on price dips during the crisis.”

The value of equities funds fell 4.11 trillion yen, or 7.7
percent, to 49.5 trillion yen in May.

Nevertheless, retail investors poured a large amount of
money into equities funds in May, lifting net inflows into
equities funds to 920.9 billion yen from 256.9 billion in April.

The value of bond funds slipped 779 billion yen, or 6.6
percent, to 11 trillion yen due to heavy outflows from money
reserve funds.

Following is a breakdown of the data:

Net money flow (in yen):

May April

Overall: +141.8 bln +908.4 bln

Stocks: +920.9 bln +256.9 bln

Bonds: -779.2 bln +651.5 bln

Value in public placed toushin (in yen):

May April mth/mth

Overall: 60.51 trln 65.39 trln -7.5%

Stocks: 49.51 trln 53.62 trln -7.7%

Bonds: 10.99 trln 11.77 trln -6.6%

Value of privately placed toushin (in yen):

May April mth/mth

Overall: 29.52 trln 30.93 trln -4.6%

Stocks: 28.84 trln 30.26 trln -4.7%

Bonds: 680.0 bln 668.4 bln +1.7%

May April mth/mth

Value of ETFs: 2.30 trln 2.52 trln -8.7%

Assets in foreign currencies (in yen):

May April

Overall: 27.52 trln 29.98 trln

Stock: 5.65 trln 6.37 trln

Bond: 16.56 trln 17.77 trln

Others: 5.31 trln 5.84 trln
($1=91.40 Yen)
(Reporting by Chikafumi Hodo)

Filed Under: International News Tagged With: bln, Broader Topix Index, Debt Crisis, Debt Woes, DJI, Dow Jones, european countries, Friday Market, global auto, Investment Funds, Investment Trust, konishi, launch, Market Turmoil, Nomura Asset Management, personal assets, reserve funds, Retail Investors, reuters, share prices

Bombardier Aerospace: Bombardier Aerospace Announces its Plan to Acquire ExelTech Hangar

June 10, 2010 By vani Leave a Comment

MONTREAL, QUEBEC–(Marketwire – June 9, 2010) – Bombardier announced today the
acceptance of its offer to purchase the Saint-Laurent facilities of ExelTech Aerospace
Inc. following the latter’s bankruptcy. The acquisition will increase Bombardier’s
Global Completion Centre (GCC) capabilities for its Global 5000 and Global Express XRS
business jets. The world-class GCC is a fully integrated completion facility with the
capability to define, engineer, fabricate, certify and deliver customized interior
installations. Bombardier’s GCC is known for its superior quality and workmanship, as
well as for its customer-centric focus.

Bombardier’s Global business jets are recognized throughout the industry as the ultimate
in design and performance. “The acquisition of the ExelTech facility positions us to
better serve our customers with the highest quality completions for our flagship Global
business aircraft,” said Steve Ridolfi, President, Bombardier Business Aircraft.

Bombardier forecasts that the 115,000 sq.-ft. (10,684 sq.-m.) facility will be
operational by the fall of 2010.

The acquisition of this facility from RSM Richter Inc., in its capacity of receiver of
ExelTech Aerospace Inc., is subject to closing conditions including obtaining the
approval of the Superior Court of Quebec, as is customary for this type of transaction.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from commercial
aircraft and business jets to rail transportation equipment, systems and services,
Bombardier Inc. is a global corporation headquartered in Canada. Its revenues for the
fiscal year ended Jan. 31, 2010, were $19.4 billion, and its shares are traded on the
Toronto Stock Exchange (BBD). Bombardier is listed as an index component to the Dow
Jones Sustainability World and North America indexes. News and information are available
at www.bombardier.com http://www.bombardier.com .

Bombardier, Global, Global 5000 and Global Express XRS are either registered or
unregistered trademarks of Bombardier Inc. or its subsidiaries.

Contacts:
Bombardier Business Aircraft
Haley Dunne
1-514-855-7595
haley.dunne@aero.bombardier.com mailto:haley.dunne@aero.bombardier.com
www.bombardier.com http://www.bombardier.com

Filed Under: International News Tagged With: Aerospace Inc, Bombardier Aerospace, Bombardier Business Aircraft, Bombardier Inc, business jets, Completion Centre, Completion Facility, Dow Jones, Dow Jones Sustainability, Exeltech Aerospace, Global Corporation, Interior Installations, Marketwire, Montreal Quebec, Rail Transportation Equipment, Ridolfi, Rsm Richter Inc, Superior Court Of Quebec, Toronto Stock Exchange, Transportation Solutions

Bombardier Aerospace Announces its Plan to Acquire ExelTech Hangar

June 10, 2010 By vani Leave a Comment

MONTREAL, QUEBEC, Jun 09 (MARKET WIRE) —
Bombardier announced today the acceptance of its offer to purchase the
Saint-Laurent facilities of ExelTech Aerospace Inc. following the
latter’s bankruptcy. The acquisition will increase Bombardier’s Global
Completion Centre (GCC) capabilities for its Global 5000 and Global
Express XRS business jets. The world-class GCC is a fully integrated
completion facility with the capability to define, engineer, fabricate,
certify and deliver customized interior installations. Bombardier’s GCC
is known for its superior quality and workmanship, as well as for its
customer-centric focus.

Bombardier’s Global business jets are recognized throughout the industry
as the ultimate in design and performance. “The acquisition of the
ExelTech facility positions us to better serve our customers with the
highest quality completions for our flagship Global business aircraft,”
said Steve Ridolfi, President, Bombardier Business Aircraft.

Bombardier forecasts that the 115,000 sq.-ft. (10,684 sq.-m.) facility
will be operational by the fall of 2010.

The acquisition of this facility from RSM Richter Inc., in its capacity
of receiver of ExelTech Aerospace Inc., is subject to closing conditions
including obtaining the approval of the Superior Court of Quebec, as is
customary for this type of transaction.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from
commercial aircraft and business jets to rail transportation equipment,
systems and services, Bombardier Inc. is a global corporation
headquartered in Canada. Its revenues for the fiscal year ended Jan. 31,
2010, were $19.4 billion, and its shares are traded on the Toronto Stock
Exchange (BBD). Bombardier is listed as an index component to the Dow
Jones Sustainability World and North America indexes. News and
information are available at www.bombardier.com.

Bombardier, Global, Global 5000 and Global Express XRS are either
registered or unregistered trademarks of Bombardier Inc. or its
subsidiaries.

Contacts:
Bombardier Business Aircraft
Haley Dunne
1-514-855-7595
haley.dunne@aero.bombardier.com
www.bombardier.com

Filed Under: International News Tagged With: Aerospace Inc, Bombardier Aerospace, Bombardier Business Aircraft, Bombardier Inc, business jets, Commercial Aircraft, Completion Centre, Completion Facility, Dow Jones, Dow Jones Sustainability, Exeltech Aerospace, Global Corporation, Interior Installations, Montreal Quebec, Rail Transportation Equipment, Ridolfi, Rsm Richter Inc, Superior Court Of Quebec, Toronto Stock Exchange, Transportation Solutions

GLOBAL MARKETS-World stocks, oil rise on China exports, Bernanke

June 10, 2010 By vani Leave a Comment

NEW YORK, June 9 (Reuters) – World stocks jumped about 1 percent and oil prices surged on Wednesday as comments by Federal Reserve Chairman Ben Bernanke and unofficial data on Chinese exports raised hopes that a global economic recovery is on sure footing.

The euro rose from multi-year lows for a second straight day, boosted by renewed optimism that Europe’s debt crisis will not put the brakes on global growth, and as traders continued to book profits following the currency’s slide.

The keener appetite for risk drove crude oil prices up 4 percent above $74 a barrel, as U.S. data that showed a hefty drawdown in crude oil inventories added to the picture of rising demand.

Chinese exports grew 50 percent in May from a year earlier, according to sources, well above expectations for growth of 32 percent. The unofficial data was seen as a sign that the economy of the world’s second-largest oil user was roaring ahead. China is to report the official export data on Thursday as part of broader trade data. [ID:nBJD003776]

Bernanke, in testimony to the U.S. House of Representatives Budget Committee, said the economic recovery appeared to be on solid footing and that while a double-dip recession “can never be entirely ruled out,” he expects the economy to continue growing. [ID:nWAL9HE68B]

“Bernanke is more positive about the economy than the consensus is, at a time when some people are starting to question whether we could get a double dip,” said Carl Birkelbach, chairman of Birkelbach Investment Securities in Chicago.

The three major U.S. stock indexes all rose more than 1 percent, and European shares snapped a three-day losing streak to close up 1.85 percent.

The Dow Jones industrial average .DJI was up 108.68 points, or 1.09 percent, at 10,048.66. The Standard & Poor’s 500 Index .SPX was up 12.74 points, or 1.20 percent, at 1,074.74. The Nasdaq Composite Index .IXIC was up 29.53 points, or 1.36 percent, at 2,200.10.

Tech lifted the Nasdaq after Texas Instruments Inc (TXN.N) said second-quarter earnings and revenue would be at the high end of its forecast on strong broad-based demand, particularly from industrial customers. [ID:nN08218836]

The stock gained 1.7 percent to $24.28 while the PHLX Semiconductor index .SOXX rose 2.2 percent.

The MSCI’s all-country world stock index .MIWD00000PUS rose 1.3 percent.

The pan-European FTSEurofirst 300 .FTEU3 index closed up 18.09 points at 998.44 points.

“It’s a relief rally. I think we’re due a technical recovery,” said Giuseppe-Guido Amato, strategist at Lang & Schwarz.

“Whether it’s a one-day wonder we don’t know. The only sure thing is high volatility. Q1 earnings were good, and Q2 may be good, but macro trumps micro now. The acceleration of the recovery is fading. There is a chance of a double dip.”

The China data, as well as a weaker dollar, helped oil and and metal prices gain, boosting commodity shares. Among gainers were miners Anglo American (AAL.L), BHP Billiton (BLT.L), Fresnillo (FRES.L), Rio Tinto (RIO.L) and Xstrata (XTA.L) and energy shares Total (TOTF.PA), Repsol (REP.MC) and StatoilHydro (STL.OL) .

BP (BP.L), however, fell 4.3 percent to its lowest close since since October 2008 as traders cited concern over its dividend payment. The company is coming under increasing pressure from U.S. politicians following an oil spill in the Gulf of Mexico.

BP is down more than 40 percent from a mid- April peak, wiping about 50 billion pounds ($72 billion) off its market capitalization.

The euro rose against the dollar for a second straight session, boosted by options-related demand and renewed market hopes that Europe’s debt crisis may not put the brakes on global growth.

The euro EUR= was up 0.57 percent at $1.204, after falling below $1.19 on Monday, its weakest since 2006. The euro has shed nearly 16 percent against the dollar so far this year.

Few were ready, however, to declare the currency’s woes over. Banks’ overnight deposits at the European Central Bank hit a record on Wednesday, highlighting widespread worries about the health of the financial system. [ID:nLDE6580FO]

Steven Butler, head of FX trading at Scotia Capital, said that while the euro in the short term could reach $1.2110, “I still think there’s downside.”

“And overall, this move over the past few months has seen new lows hit, then consolidation and a nasty bounce back before we make another assault downward,” he added.

Traders said option expiries at $1.1900 and $1.1850 added to euro demand as investors bought the currency to protect their positions.

Investors were also awaiting a European Central Bank policy meeting on Thursday to see if the ECB will announce fresh steps to ease strains from the euro zone’s debt crisis. [ID:nLDE6560K2]

The ECB is also expected to publish a new set of economic forecasts for the region that are likely to signal somewhat stronger activity, despite worries that debt problems and government austerity measures will sharply brake growth.

U.S. Treasuries fell slightly before the second installment of this week’s $70 billion worth of bond auctions.

After Tuesday’s well-received offering of three-year debt, the U.S. Treasury will sell $21 billion worth of 10-year notes at 1 p.m. (1700 GMT). Dealers usually sell ahead of offerings to clear room on balance sheets and make prices more attractive at auction.

The benchmark 10-year U.S. Treasury note US10YT=RR was down 13/32, with the yield at 3.2367 percent. The 2-year U.S. Treasury note US2YT=RR was down 2/32, with the yield at 0.766 percent. The 30-year U.S. Treasury bond US30YT=RR was down 29/32, with the yield at 4.1655 percent.

Crude oil CLc1 rose $2.69, or 3.74 percent, to $74.68 per barrel.

Risk-averse investors have streamed into gold, sending prices for the precious metal to a record high in U.S. dollars, on persistent fears that the euro zone debt problems will spread. (Additional reporting by Steven C. Johnson, Ryan Vlastelica and Burton Frierson in New York and Brian Gorman in London)

Filed Under: International News Tagged With: book profits, Budget Committee, China Exports, chinese exports, Crude Oil Inventories, Crude Oil Prices, Debt Crisis, Double Dip Recession, Dow Jones, Dow Jones Industrial, Dow Jones Industrial Average, european shares, Federal Reserve Chairman, Federal Reserve Chairman Ben Bernanke, Markets World, Nasdaq Composite Index, reuters world, stock indexes, Unofficial Data, world stocks

Bombardier Aerospace Announces its Plan to Acquire ExelTech Hangar

June 10, 2010 By vani Leave a Comment

Bombardier’s Global business jets are recognized throughout the industry
as the ultimate in design and performance. “The acquisition of the
ExelTech facility positions us to better serve our customers with the
highest quality completions for our flagship Global business
aircraft,” said Steve Ridolfi, President, Bombardier Business
Aircraft.

Bombardier forecasts that the 115,000 sq.-ft. (10,684 sq.-m.) facility
will be operational by the fall of 2010.

The acquisition of this facility from RSM Richter Inc., in its capacity
of receiver of ExelTech Aerospace Inc., is subject to closing conditions
including obtaining the approval of the Superior Court of Quebec, as is
customary for this type of transaction.

About Bombardier

A world-leading manufacturer of innovative transportation solutions, from
commercial aircraft and business jets to rail transportation equipment,
systems and services, Bombardier Inc. is a global corporation
headquartered in Canada. Its revenues for the fiscal year ended Jan. 31,
2010, were $19.4 billion, and its shares are traded on the Toronto Stock
Exchange (BBD). Bombardier is listed as an index component to the Dow
Jones Sustainability World and North America indexes. News and
information are available at www.bombardier.com.

Bombardier, Global, Global 5000 and Global Express XRS are either
registered or unregistered trademarks of Bombardier Inc. or its
subsidiaries.

Contacts:
Bombardier Business Aircraft
Haley Dunne
1-514-855-7595
haley.dunne@aero.bombardier.com
www.bombardier.com

Sonoco to Present at J.P. Morgan Diversified Industries Conference

June 8, 2010 By vani Leave a Comment

HARTSVILLE, S.C.–(Business Wire)–
Sonoco (NYSE: SON), one of the largest diversified global packaging companies,
will speak to the investment community on Wednesday, June 9, 2010, at the J.P.
Morgan 5th Annual Diversified Industries Conference held in its conference
center at 383 Madison Avenue in New York City.

Harris E. DeLoach, Jr., chairman, president and chief executive officer, and
Charles J. Hupfer, senior vice president and chief financial officer, are
scheduled to speak at 2:30 p.m. Eastern Time. The audio presentation will be
Webcast and can be accessed via the Internet at http://www.sonoco.com, under the
“Latest News” section.

About Sonoco

Sonoco, founded in 1899, is a $3.6 billion global manufacturer of consumer and
industrial packaging products and provider of packaging services, with more than
300 operations in 35 countries serving customers in some 85 nations. The Company
is a proud member of the Dow Jones Sustainability World Index. For more
information on Sonoco, visit our Web site at http://www.sonoco.com.

Sonoco
Roger Schrum, 843-339-6018
roger.schrum@sonoco.com
www.sonoco.com

Filed Under: International News Tagged With: Audio Presentation, chief executive officer, Diversified Industries, Dow Jones, Dow Jones Sustainability, Dow Jones Sustainability World Index, eastern time, Global Manufacturer, Harris E Deloach, Industrial Packaging, Investment Community, J P Morgan, Madison Avenue, Nyse, Packaging Companies, Packaging Products, Packaging Services, Proud Member, Schrum, senior vice president

US STOCKS-Futures edge up after German data, Friday sell-off

June 8, 2010 By vani Leave a Comment

June 7 (Reuters) – U.S. stock index futures were slightly higher on Monday, reversing sharp declines in the last session, as solid German data eased concerns about a wobbly European economy and the S&P looked to bounce off a key technical level.

Stocks | Global Markets

* Futures moved higher after German data showed industrial orders jumped far more than expected in April, with indications of a rise in investments adding to signs that Europe’s largest economy is on the path to durable growth. For details, see [ID:nLDE656107]

* Traders also pointed to critical support levels for the S&P 500 in the wake of Friday’s sell-off in the absence of U.S. economic and earnings news. The index has tumbled 12.5 percent since its April 23 high for the year.

* On Friday, the S&P 500 fell below 1,070, which was considered a support level for the index and closed just below the intraday low the market reached during the so-called “flash crash” on May 6.

* “It has been a headline-driven market so we are going to have to wait for some headlines for either a move for stability or a continuation of the weakness,” said Andre Bakhos, director of market analytics at Lek Securities in New York.

* “We got whaled on Friday so we are looking for a little stability. There are very few headlines to do it. We are sitting at support so people may be picking away at things.”

* S&P 500 futures SPc1 rose 1.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 gained 20 points, and Nasdaq 100 futures NDc1 rose 4.75 points.

* Apple Inc (AAPL.O) shares gained 1 percent to $258.63 in premarket trading ahead of what is widely expected to be the unveiling of its newest iPhone on Monday. [ID:nN07149473]

* U.S.-listed shares of BP Plc (BP.L)(BP.N) gained 4.4 percent to $38.78 premarket after the company said it was capturing most of the oil gushing from its gushing Gulf of Mexico well, and that an additional capture system would be ready in mid-June.

* In merger news, Spain’s Grifols SA (GRLS.MC) agreed to buy Talecris Biotherapeutics Holdings Corp (TLCR.O), which produces plasma-based protein therapies, for $3.4 billion in a move to expand its business in blood products. Talecris jumped 45.3 percent to $24.01 in light premarket trade. [ID:nLDE6560AA]

* Reliance Communications Ltd (RLCM.BO) and AT&T Inc (T.N) have talked about the U.S. telecommunications giant taking a significant minority stake in the Indian company, the Wall Street Journal reported, citing sources. [ID:nSGE6560AL] (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

Filed Under: International News Tagged With: aapl, Bp Plc, Critical Support, Dow Jones, Dow Jones Industrial, Dow Jones Industrial Average, Driven Market, Earnings News, European Economy, German Data, global markets, iPhone, last session, Lek Securities, Market Analytics, Nasdaq 100, Nasdaq Futures, reuters, Stock Futures, Stock Index Futures

US STOCKS-Markets to open sharply lower after payrolls data

June 5, 2010 By vani Leave a Comment

NEW YORK, June 4 (Reuters) – U.S. stock index futures were sharply lower on Friday, with the S&P 500 and Nasdaq set to drop more than 2 percent at the open, after the May payrolls report showed private hiring slowed sharply.

The Labor Department said 431,000 jobs were added to the U.S. economy, but of that total, 411,000 workers were hired for the U.S. Census. Wall Street looked for payrolls to rise by 513,000. For details, see [ID:nN032434311]

“This shows that the economy is a lot weaker than most people had suspected,” said Gary Shilling, president of an investment research firm in Springfield, New Jersey. “It raises the risk of a double-dip recession.”

The data came a day after a private employment report and weekly jobless claims data showed an improved labor market, though not as much as expected.

S&P 500 futures SPc1 fell 23.9 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 sank 190 points and Nasdaq 100 futures NDc1 plummeted 44.25 points.

Futures was already in negative territory before the payrolls report, tracking European equities on concerns about Societe Generale’s (SOGN.PA) derivatives business. Also, investors worried about the sovereign debt crisis spreading after a spokesman for Hungary’s prime minister said the country was at some risk of a Greek-style fiscal crisis. The euro fell to a four-year low against the dollar. [ID:nLDE65317T]

BP Plc (BP.N) (BP.L) made strides in its bid to stop the massive oil spill in the Gulf of Mexico and capture oil spewing from a ruptured well. Still, BP’s U.S.-listed shares fell 2.9 percent to $38.14 premarket. [ID:nN0444097]

Policymakers from the Group of 20 nations expressed concern Friday about the health of the world economy as they closed ranks behind the euro zone’s efforts to tackle a debt crisis that has rattled global markets. [ID:nTOE65300H]

Martek Biosciences Corp (MATK.O) reported second-quarter earnings late Thursday that beat expectations and forecast full-year revenues above consensus. [ID:nSGE6520IR]

Three top Federal Reserve officials said Thursday it may soon be time to begin raising interest rates as the U.S. economic recovery gathers momentum despite persistently high unemployment. [ID:nN03253532]

Wall Street rose for a second straight day on Thursday, with the Nasdaq advancing 1 percent on a late-day surge in technology shares. (Editing by Jeffrey Benkoe)

Filed Under: International News Tagged With: Bp Plc, Debt Crisis, Double Dip Recession, Dow Jones, Employment Report, Euro Zone, European Equities, fiscal crisis, Gary Shilling, Massive Oil Spill, Nasdaq 100, Negative Territory, Private Employment, Societe Generale, sovereign debt, Springfield New Jersey, Stock Index Futures, U S Census, Weekly Jobless Claims, World Economy

U.S. stock futures signal drop on recovery doubts

June 2, 2010 By vani Leave a Comment

* U.S. stock index futures pointed to a sharply lower open on Wall Street on Tuesday following a long holiday weekend, as mounting doubts over the pace of the global economic recovery hit stocks worldwide.

Stocks | Bonds | Global Markets

* Futures for the S&P 500 SPc1 were down 1.7 percent, Dow Jones DJc1 futures down 1.4 percent and Nasdaq 100 NDc1 futures down 1.3 percent at 0840 GMT.

* Investors were rattled by data showing manufacturing growth in China and South Korea slowed down in May as the pace of new orders eased amid growing uncertainty over what damage Europe’s debt crisis may do to Asia’s export-dependent economies. [ID:nSGE65003E]

* Manufacturing activity in the euro zone expanded in May at a considerably more sluggish pace than April’s 46-month high as firms let off the production accelerator, a survey showed on Tuesday. [ID:nSLAVGE65K]

* European stocks tumbled 2 percent in morning trade, with BP (BP.L) plummeting 13 percent following the company’s failed attempt to stem the worst oil spill in U.S. history over the weekend. BP stock has lost more than a third of its value since the oil spill started six weeks ago.

* Adding to investor concerns, the European Central Bank said euro zone banks face another 195 billion euros ($239 billion) in potential writedowns to the end of 2011 in a second round of losses from the financial crisis. [ID:nLAG006303]

* Advanced economies face years of anaemic growth and the risk of a double-dip recession as their citizens cope with sluggish employment and highly indebted governments, economist Nouriel Roubini said on Monday. [ID:nN31251246]

* Dubai Holding Commercial Operations Group (DHCOG) posted a $6.2 billion loss for 2009 on Tuesday due to Dubai’s property crash and said it had access to emergency funding if needed.

DHCOG said it was in talks with banks to roll over debt, was considering asset sales and was renegotiating balances owed to trade creditors after the crash put its cash flow under severe pressure. [ID:nLDE65003U]

* Prudential’s (PRU.L) bid for rival AIG’s (AIG.N) Asian unit appeared close to collapse after AIG rejected the British insurer’s lowered offer of $30.38 billion in cash and shares. [ID:nTOE64U07Y]

* Apple Inc (AAPL.O) said it sold 2 million iPads since launching the touch-screen tablet in the United States nearly two months ago and taking it to nine international markets this past weekend.

* Investors awaited a flurry of macro data, including April construction spending as well as the Institute for Supply Management’s May manufacturing index.

* U.S. stocks fell on Friday, capping off their worst month in over a year as a downgrade by Fitch of Spain’s credit rating reignited worries about euro-zone debt issues.

* The Dow Jones industrial average .DJI dropped 122.36 points, or 1.19 percent, to 10,136.63. The Standard & Poor’s 500 Index .SPX fell 13.65 points, or 1.24 percent, to 1,089.41. The Nasdaq Composite Index .IXIC declined 20.64 points, or 0.91 percent, to 2,257.04. (Reporting by Blaise Robinson; Editing by Sharon Lindores)

Filed Under: International News Tagged With: asset sales, Commercial Operations, Debt Crisis, Dependent Economies, Double Dip Recession, Dow Futures, Dow Jones, economic recovery, Euro Zone, European Stocks, investor concerns, long holiday, Nasdaq 100, Nasdaq Futures, Oil Spill, Operations Group, Sluggish Pace, Stock Futures, Stock Index Futures, Stocks Bonds

Trader’s `b’ for `m’ error behind huge Dow Jones share plunge

May 7, 2010 By vani Leave a Comment

New York, May 7 (ANI): A trade error is believed to have been behind the Dow Jones Industries average and shares in Procter and Gamble and Accenture dropping overnight.

Rumours swirled around the market that a trader had reportedly entered a “b” for billion instead of an “m” for million in a trade involving Procter and Gamble, CNBC reported, citing several sources.

Management consulting powerhouse Accenture also traded at around 41.78 dollars a share when it suddenly plunged to a cent a share. In the next few minutes the share recovered to end the overnight session at 41.09 dollars.

This set off a chain of trades that led to the largest intra-day plunge in the history of the Dow Jones Industrials average.

Shares in Procter and Gamble fell from 61.56 dollars a share to 39.37 dollars a share and then quickly bounced back again.

Procter and Gamble later confirmed the sudden drop in its share price was an error, MarketWatch reports.

According to news.com.au, there was a trading error known as the “fat finger problem” that occurred at a major investment bank, and it was combined with fears over the Greek debt crisis to leave the US market reeling.

The crash began shortly before 2.25 p.m. local time, when in a white-knuckle 20 minutes America”s top 30 firms saw their share prices dive 998.5 points, almost 9 per cent, wiping out billions in market value.

The drop eclipsed even the crashes seen when markets reopened after September 11, 2001 and in the wake of the Lehman Brothers collapse.

By closing time the major US stock market indexes had lost about 3 per cent.

The effect of the drop was felt in Australia, with the local market opening about 3 per cent lower.

The US Commodity Futures Trading Commission and the US Securities and Exchange Commission said in a joint statement after trading closed that they were working closely with other financial regulators and exchanges “to review the unusual trading activity.”

The regulators said they would make the findings of their review public. (ANI)

Filed Under: International News Tagged With: Accenture, closing time, cnbc, Commodity Futures Trading, Commodity Futures Trading Commission, Debt Crisis, Dow Jones, Financial Regulators, Futures Trading Commission, History Of The Dow Jones, Lehman Brothers, news com au, Overnight Session, Procter and Gamble, securities and exchange commission, september 11 2001, share prices, Stock Market Indexes, US stock market, White Knuckle

EXTRA! Wall Street Journal heads into NY hyperdrive

April 26, 2010 By vani Leave a Comment

(Reuters) – The Wall Street Journal is offering some businesses firesale prices for full-page ads in its highly anticipated New York edition to seduce advertisers away from The New York Times.

U.S.

Wall Street Journal Managing Editor Robert Thomson and other executives plan to unveil the edition during a press briefing on Monday morning.

The section will cover local news, culture and sports, and will be incorporated within the Wall Street Journal. It will be circulated in the New York area.

Rupert Murdoch, whose News Corp owns the Journal, is betting that New Yorkers want an alternative to the Times, and he is willing to risk the ire of any shareholders not interested in pulp and ink.

David Joyce, an analyst at Miller Tabak, said investors “tend to hate” the newspaper assets of News Corp.

“They wish it could be spun out, but you have to go into News Corp assuming they’re going to be around. Newspapers, the power and influence that come along with (them), are integral to the News Corp strategy.”

To entice advertisers onto the pages of the New York edition, the Wall Street Journal is deeply cutting the cost of a full-page ad and, as a bonus, throwing in a full-page ad in the New York Post, also owned by News Corp.

Some local businesses can buy a full-page ad for $19,000, according to a Wall Street Journal presentation to advertisers that was shown to Reuters by a source. That is a steep discount to full-page print ads in large newspapers that can cost up to

$90,000.

A Dow Jones source, who spoke on condition of anonymity, said only a few New York area businesses not currently advertising in the Wall Street Journal or the New York Post were being offered the discount.

“With News Corp having a vast array of diversified assets, they can afford to essentially buy market share in the New York newspaper market by offering cut-rate advertising,” said Miller Tabak’s Joyce. “That could perhaps hurt New York Times’ finances.”

WHACKED BY RECESSION

The newspaper industry, already weakened by a migration of advertising to the Internet, has been roiled by one of the worst economic downturns in generations.

Days before the new edition of the Wall Street Journal was due to hit the streets, several newspaper companies, including the New York Times Co, published quarterly financial results that revealed it could be a long road back to ad revenue growth.

The Wall Street Journal, however, showed advertising revenue growth in the first quarter.

“Competitors have been accusing each other of rate cutting since the beginning of time,” Michael Rooney, chief revenue officer of the Wall Street Journal, said in an emailed statement. “The simple fact is that the Times’ ad revenue is down 12 percent and our ad revenue is up 25 percent in the latest quarter.”

Scott Heekin-Canedy, president of the New York Times, told analysts and investors on an earnings call on Thursday that the newspaper was feeling some heat in the New York advertising market. “We are seeing pressure, but we don’t believe it’s so far having any effect on our business,” he said.

On the call, Times Chief Executive Janet Robinson ticked off a litany of strengths, including higher online traffic and national advertising share, to explain why the New York Times was prepared to do battle over the city’s newspaper market.

“We don’t shy away from competition,” Robinson said. “We never have, we never will.”

In an interview on Friday, Heekin-Canedy said the New York Times relies on the strength of its relationships with advertisers. “We do smart discounting and come up with ways besides price to achieve objectives.”

HELLO AMERICA

The Wall Street Journal has long been viewed as a vehicle to reach national audiences.

“A number of our clients that run in the Wall Street Journal are happy for the broad reach against that core audience,” said Scott Kruse, managing director of GroupM, an advertising agency that places ads for clients such as Sprint Nextel Corp and Volkswagen. “A lot of our clients don’t just want New York.”

Kruse said the New York edition of the Wall Street Journal would have a daily circulation of 235,000, which he described as a small add-on for Journal advertisers. “The question is do you really need a local overlay on top of what you are doing.”

Sharon Enright, associate media director for advertising agency RPA, said the Wall Street Journal had approached them about the New York project but, “It doesn’t make sense for us.” Enright said that she and her colleague Marie Zymkowitz buy ads in the Wall Street Journal to reach a national upscale audience.

TODAY NEW YORK, TOMORROW?

Under Murdoch, the Journal has the coffers to fund the experiment. The newspaper already produces a weekly section dedicated to San Francisco and it cranked up distribution in Detroit when the Detroit Free Press and the Detroit News cut home delivery.

“I would not underestimate Mr. Murdoch because he is playing with a large sum of cash,” said Benchmark analyst Edward Atorino.

“Some people are waiting with bated breath, including Janet.”

(Reporting by Jennifer Saba, additional reporting by Yinka Adegoke; Editing by Tiffany Wu, Toni Reinhold)

Filed Under: International News Tagged With: anonymity, David Joyce, Dow Jones, Hyperdrive, Managing Editor, Miller Tabak, Monday morning, new york post, New York Times, new yorkers, News Corp, Page Ads, Power And Influence, Print Ads, recession, reuters, robert thomson, rupert murdoch, Steep Discount, wall street journal

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