http://www.moneyhowto.com/ ru MoneyHowTo.com Global Investors Community. Making Money Instructions DataLife Engine http://www.moneyhowto.com/2008/11/26/china_slashes_interest_rate_to_spur_slowing_growth.html http://www.moneyhowto.com/2008/11/26/china_slashes_interest_rate_to_spur_slowing_growth.html BEIJING (AP) -- China announced its biggest interest rate cut in 11 years on Wednesday to spur private borrowing and support a multibillion-dollar stimulus package to boost slowing economic growth.

The 1.08 percentage-point rate cut -- the fourth cut in three months -- reflects the government's urgency about raising private consumption and investment to supplement state spending on the stimulus package.

"This is the most aggressive monetary easing in recent years and should bode well for China's market performance," said Jing Ulrich, chairwoman of China equities for JP Morgan & Co., in a report to clients.

The 4 trillion yuan ($586 billion) stimulus aims to insulate China from a global slowdown by injecting money into the economy through spending on new highways and other public facilities. But its ultimate goal is to increase consumer spending, which a rate cut is meant to encourage.

Beijing is trying to shore up consumer and investor confidence and reverse a sharp downturn in growth. China's economy is expected to expand by at least 9 percent this year, down from 11.9 percent last year. But communist leaders worry about rising job losses -- especially in export industries hit by weak global demand -- and possible unrest.

China has avoided a big hit so far from the global financial crisis because its banks are healthy and exports strong. But conditions are expected to worsen in coming months as export demand weakens and growth]]> gdz Wed, 26 Nov 2008 05:51:24 -0600 http://www.moneyhowto.com/2008/11/17/japan_slides_into_recession_1st_time_since_2001.html http://www.moneyhowto.com/2008/11/17/japan_slides_into_recession_1st_time_since_2001.html TOKYO (AP) -- Japan's economy slid into a recession for the first time since 2001, the government said Monday, as companies sharply cut back on spending in the third quarter amid the unfolding global financial crisis.

Government officials and economists warned that the world's second-largest economy could contract further in coming months.

Japan's economy shrank at an annual pace of 0.4 percent in the July-September period after a declining an annualized 3.7 percent in the second quarter. That means Japan, along with the 15-nation euro-zone, is now technically in a recession, defined as two straight quarters of contraction.

"What we're starting to see is the extent of deterioration in external demand start to weigh more heavily on the Japanese economy," said Glen Maguire, chief Asia economist at Societe Generale. "And I think looking forward, there's every indication that dynamic is going to continue."

The result was worse than expected. Economists surveyed by Kyodo News agency had predicted gross domestic product would gain an annualized 0.1 percent.

Japan's Economy Minister Kaoru Yosano said following the data's release that "the economy is in a recessionary phase."

But the worst may be yet to come, especially with dramatic declines in demand from consumers overseas]]> gdz Mon, 17 Nov 2008 04:35:03 -0600 http://www.moneyhowto.com/2008/05/16/the_worlds_greatest_value.html http://www.moneyhowto.com/2008/05/16/the_worlds_greatest_value.html In the period between 2004 and 2007, the Chinese stock market index rose more than 450%. On the streets of Shanghai I witnessed lines of Chinese citizens waiting outside brokerages to deposit funds so they could trade on the big stock market boom. The hyperbole surrounding the Great Chinese Miracle approached that of Japan, Inc., nearly two decades ago.

This was it -- missing out on China would be the greatest mistake investors of our generation could make.

You know what happened next, don't you?
In the past eight months, the Shanghai Stock Index has declined by nearly 50%. Speculators from Shanghai, Beijing, and all over China have seen their brokerage accounts get smoked.

It's a bit of a fortunate accident for foreign investors that shares trading on Chinese exchanges are largely limited to Chinese investors. Still, the whiff of opportunity a year ago has suddenly turned into the stench of decay. For people who are fundamentally opposed to overpaying for great investments, you couldn't ask for a better situation: Companies based in the world's most important growth economy are suddenly trading at a fraction of their former prices.

Wait, isn't the Chinese dream dead?
No.

But the market collapsed! Someone must know something!]]> gdz Fri, 16 May 2008 18:59:49 -0500 http://www.moneyhowto.com/2008/02/05/brazilian_steel_maker_banks_on_booming_local_economy.html http://www.moneyhowto.com/2008/02/05/brazilian_steel_maker_banks_on_booming_local_economy.html China is urbanizing. Oil platforms are going up in the world's oceans. And Brazilian automakers are ramping up for a growing middle class.

The world's steel producers are trying to keep up.

Companhia Siderurgica Nacional (NYSE:SID - News), Brazil's third-largest steel producer, is stepping up to the challenge.

The Rio de Janeiro company expects to spend $6 billion over the next six years to add new steel mills. The new mills will add 9 million tons to its current crude steel capacity of 5.6 million tons a year.

It's also investing in its mines and ports to increase its iron ore export capacity.

But even as global demand rises, CSN is looking first to its expanding domestic market. About three-quarters of sales are within Brazil.

In addition to expanding its core steel and mining business, CSN is building a cement plant to supply booming Brazilian construction markets.

"The middle class is growing, and the consumption is growing as well," said Jose Marcos Treiger, head of]]> gdz Tue, 05 Feb 2008 18:30:40 -0600 http://www.moneyhowto.com/2008/01/23/ukraine_pm_charge_more_for_gas_transit.html http://www.moneyhowto.com/2008/01/23/ukraine_pm_charge_more_for_gas_transit.html KIEV, Ukraine (AP) -- Prime Minister Yulia Tymoshenko said Wednesday that Kiev should charge Russia more for transit of the gas it sends to Europe via Ukraine, a statement that is likely to aggravate already uneasy relations with Moscow.

Late last year, Ukraine agreed to a 40 percent increase in the price for gas imported from Russia, and now pays $179.50 per thousand cubic meters.

Most of the gas Ukraine uses is imported from the energy-rich Central Asian nation of Turkmenistan. The gas is imported through a Swiss-based trading company, RosUkrEnergo, half of which is owned by Russia's state-owned monopoly Gazprom and half by two Ukrainian businessmen.

Tymoshenko argued that since Ukraine is now paying more for gas, it should also earn more for shipping it to Europe.

"The time has come for Ukraine and Russia to have a discussion regarding the cost of transiting Russian gas through Ukrainian territory to Europe," Tymoshenko said after a Cabinet meeting, according to her office.

Ukraine currently charges $1.70 per 1,000 cubic meters for every 100 kilometers, the same transit price]]> gdz Wed, 23 Jan 2008 19:00:35 -0600 http://www.moneyhowto.com/2008/01/23/russia_no_harsh_sanctions_on_iran.html http://www.moneyhowto.com/2008/01/23/russia_no_harsh_sanctions_on_iran.html MOSCOW (AP) -- Russia said Wednesday a draft U.N. resolution on Iran's disputed nuclear program does not call for any harsh sanctions, and the Iranian president said new measures would not deter the country in its pursuit of nuclear technology.

EU foreign policy chief Javier Solana planned to meet with Iran's senior nuclear negotiator later Wednesday in talks that would probably address the new draft resolution, European Union officials said.

Russian Foreign Minister Sergey Lavrov said the draft encourages countries to be vigilant in their dealings with Iran to prevent the illegal transfer of nuclear material, but it "does not foresee any harsh sanctions."

"It calls for countries to be vigilant while maintaining trade and economic and transport and other ties with Iran so that they are not used for the transfer of forbidden nuclear material," he said at a news conference a day after the draft was approved by the five permanent Security Council members and Germany.

These terms "will be enforced until the International Atomic Energy Agency's concerns are resolved]]> gdz Wed, 23 Jan 2008 18:57:20 -0600 http://www.moneyhowto.com/2008/01/23/chinese_ipos_raise_100b_in_2007.html http://www.moneyhowto.com/2008/01/23/chinese_ipos_raise_100b_in_2007.html NEW YORK (AP) -- Chinese initial public offerings raised more than $100 billion from overseas and domestic capital markets during 2007, according to a report released by an Chinese IPO research group.

The report was prepared by the research wing of Zero2IPO Group, a service provider for the Chinese venture-capital and private-equity industry.

According to the report, there were 242 Chinese IPOs on domestic and overseas markets during the year, totaling $104.83 billion.

On overseas markets, including the Nasdaq Stock Market and New York Stock Exchange, 118 Chinese IPOs raised $39.74 billion. There were 86 Chinese IPOs on overseas markets in 2006 and 81 in 2005.

The number of Chinese IPOs on the New York Stock Exchange rose to 18 in 2007, from 3 in 2006 and 1 in 2005. On the Nasdaq, the number of Chinese IPOs increased to 11 in 2007, from 6 in 2006 and 7 in 2005.

Domestically, 124 Chinese IPOs raised $65.09 billion during the year, compared with the 65 Chinese IPOs that raised $17.11 billion in 2006.]]> gdz Wed, 23 Jan 2008 18:54:15 -0600 http://www.moneyhowto.com/2008/01/22/asian_markets_rebound_after_fed_cut.html http://www.moneyhowto.com/2008/01/22/asian_markets_rebound_after_fed_cut.html TOKYO (AP) -- Asian stock indexes rose sharply Wednesday, rebounding from steep losses in the previous two days after a surprise interest rate cut by the U.S. Federal Reserve.

Japan's benchmark Nikkei 225 index gained 423.82 points, or 3.37 percent, to 12,996.87 points on the Tokyo Stock Exchange in early trading. It had fallen 5.7 percent Tuesday -- its biggest percentage drop in nearly 10 years -- on fears of a recession in the U.S.

The Korea Composite Stock Price Index rose as much as 3.1 percent in the opening minutes of trading. The Kospi slightly pared gains to trade up 2.7 percent at 1,652.39 about 30 minutes into the session. The Kospi fell 4.4 percent Tuesday and 3.0 percent Monday.

European stocks fell sharply at their opening Tuesday, then rose in volatile trading ahead of the Fed's decision to cut its key rate to 3.5 percent from 4.25 percent, and rose even more afterward. The U.K.'s FTSE 100 finished up 2.9 percent at 5,740.10, while France's CAC 40 gained 2.1 percent to 4,842.54. In Germany, the DAX ended barely down, off 0.3 percent at 6,769.47, as utilities RWE and E.On fell but financials such as Deutsche Bank rose.

The surprise Fed move was aimed at fears that trouble in financial markets from the U.S. subprime crisis was spreading to the broader economy. Interest rate cuts tend to boost stocks. The Canadian central]]> gdz Tue, 22 Jan 2008 18:56:13 -0600 http://www.moneyhowto.com/2008/01/21/chinese_bank_shares_fall_sharply.html http://www.moneyhowto.com/2008/01/21/chinese_bank_shares_fall_sharply.html BEIJING (AP) -- Shares in China's banks fell sharply Monday after news reports said its No. 2 lender, Bank of China, might write down holdings of U.S. mortgage securities and two others increased reserves for possible losses.

The reports were the first indication that Chinese lenders, which have so far avoided damage from the U.S. credit crisis, might face problems due to their holdings of subprime securities.

Also Monday, China's banking regulator warned that lenders might face risks from fluctuations in fast-rising real estate prices.

Bank of China is expected to announce a "significant writedown" on its $7.95 billion in U.S. subprime mortgage securities, Hong Kong's South China Morning Post newspaper reported, citing unidentified sources.

Bank of China spokesman Wang Jianping declined to comment. He said the bank would release details of its assets in late March when it announces annual earnings.

Bank of China shares fell 4.1 percent in Shanghai market and by 6.4 percent in Hong Kong. China's biggest banks are listed in both cities, with shares in Shanghai off-limits to most foreign investors, while]]> gdz Mon, 21 Jan 2008 18:33:53 -0600 http://www.moneyhowto.com/2008/01/10/brazilian_stock_market.html http://www.moneyhowto.com/2008/01/10/brazilian_stock_market.html Last year Brazil seemed poised to shrug off its reputation as the laggard of the BRICs, the four hot emerging economies roped together by Goldman Sachs (NYSE:GS) back in 2001. São Paulo's Bovespa was one of the world's best-performing stock markets in dollar terms, flanking China (Shenzhen and Shanghai) and Bombay on the winners' podium.

Such performance may be hard to sustain. The Bovespa index - up 73 per cent over the year - was propelled by gains for its two largest stocks: oil giant Petrobras and Vale (formerly CVRD), the world's biggest iron ore producer. Their impact was magnified by the Bovespa's peculiar weighting strategy - by traded volume, rather than market capitalisation. Between them, the pair accounted for around three-quarters of the index's gains in the second half of the year.

Take them away, and the picture is mixed. Much of the $32bn raised in Brazilian equity markets last year - the third-highest haul in the world, behind only the Americans and Chinese, according to Dealogic - was poured into the regular engines of a vibrant consumer economy: banks, carmakers, healthcare and education. But this has inflated valuations of companies with dubious track records. Many of the 25 or so recently-listed housebuilders, for example, are trading at big premiums to net asset value without any proven development history. Other sectors also look frothy - the two biggest retailers, B2W Varejo and]]> gdz Thu, 10 Jan 2008 18:52:15 -0600 http://www.moneyhowto.com/2007/12/14/japanese_business_confidence_drops.html http://www.moneyhowto.com/2007/12/14/japanese_business_confidence_drops.html TOKYO (AP) -- Confidence at Japanese major companies fell to its lowest in more than two years, a closely watched Bank of Japan survey showed Friday, amid anxiety about the stronger yen and a possible slowdown in the U.S. economy.

The quarterly "tankan" survey's sentiment index for large manufacturers fell from 23 in September to 19, below the 21 mark predicted by analysts. A similar index for large non-manufacturers in the survey, which polls more than 10,000 companies nationwide, fell from 20 to 16. Both figures were the lowest since September 2005.

The indices measure the percentage of companies reporting positive business conditions minus those who are negative. A decline means a growing portion of companies are pessimistic.

Economy Minister Hiroko Ota said a stronger yen, which erodes exporters' overseas income, and rising oil prices weighed on business confidence. But she said the results did not change her view that Japan's economy is on an upward trend.

"The worsening of the BOJ tankan reflects the recent rise in oil, commodities prices and a stronger yen," Ota told a news conference. "These factors must be kept in mind in judging the overall economic trend."]]> gdz Fri, 14 Dec 2007 04:05:10 -0600 http://www.moneyhowto.com/2007/12/05/reports_chinese_auto_exports_soar.html http://www.moneyhowto.com/2007/12/05/reports_chinese_auto_exports_soar.html SHANGHAI, China (AP) -- China's auto exports soared in the first 10 months of the year, according to Commerce Ministry figures, but revenues from passenger car sales overseas are lagging due to falling prices, reports said Wednesday.

China exported a total of 413,500 complete finished vehicles -- including cars, buses and trucks -- in the first 10 months of the year, up 64 percent over the same period of 2006. Exported vehicle sales totaled US$4.8 billion (euro3.3 billion), an increase of 117 percent year-on-year, the Commerce Ministry said in a report on its Web site.

The bulk of Chinese auto exports go to developing nations such as Russia, Iran and Kazakhstan.

The volume of passenger car exports more than tripled, while their dollar value rose only 174 percent from the same period a year earlier to US$948 million (euro643.1 million), the report said. It gave no export volume figure, only the rate of increase.

The report attributed the discrepancy between the increase in export volume and sales to "unhealthy competition" in the passenger car industry. Among other things, nearly 60 percent of the 1,242]]> gdz Wed, 05 Dec 2007 04:08:45 -0600 http://www.moneyhowto.com/2007/12/05/walmart_raises_stake_in_seiyu_to_95_pct.html http://www.moneyhowto.com/2007/12/05/walmart_raises_stake_in_seiyu_to_95_pct.html TOKYO (AP) -- Wal-Mart Stores has raised its stake in money-losing Japanese retailer Seiyu to 95.1 percent, the retailers said Wednesday, giving it managerial control of the chain and solidifying its foothold in an intensely competitive market.

Wal-Mart Stores Inc., the world's biggest retailer, already owned 50.9 percent in Seiyu Ltd. It offered to buy outstanding shares to gain full ownership in hopes of speeding management decisions for Seiyu's turnaround.

Since entering the Japanese market in 2002, Wal-Mart has been gradually raising its stake in Seiyu, the fifth-biggest retailer here with about 400 stores nationwide.

But Wal-Mart has struggled to make money in this market, where mall-style shopping is increasingly popular although for everyday food and other needs, shoppers tend to go to smaller neighborhood stores.

Still, the move puts to rest questions about whether Wal-Mart may exit Japan after the retailer sold its operations in Germany and South Korea last year.

"We are very pleased with the positive response to this tender offer," Wal-Mart Vice Chairman Mike Duke]]> gdz Wed, 05 Dec 2007 04:05:31 -0600 http://www.moneyhowto.com/2007/12/04/the_russian_front.html http://www.moneyhowto.com/2007/12/04/the_russian_front.html Russian Vote: Where Venezuela's Hugo Chavez failed, Vladimir Putin succeeded. With Sunday's election he has gained unprecedented authority, and it will come at the expense of freedom.

A leader who refuses to yield power is dangerous, even if he is popular, as Putin seemingly is in Russia. There's a reason the U.S. changed its Constitution to limit presidents to two terms. It's healthy to institutionalize peaceful change. Sometimes voters simply don't know they need another choice until it's too late.

In Russia, the voters should have known it was too late years ago. Putin, who said he would not run for a third term, has been dismantling democratic institutions and consolidating power for years.

One of the most egregious examples has been the snuffing out of opposition political parties through registration laws. Parties now must have 50,000 members, a 400% increase beyond the previous benchmark, and gather 200,000 signatures to run.

The 11 parties that remained for Sunday's election for the lawmaking 450-seat Duma body could not stand up to Putin's United Russia party. A change in law that requires parties to take at least 7% of the national vote to gain seats -- the previous threshold was 5%, the standard in many traditional multiparty nations]]> gdz Tue, 04 Dec 2007 06:18:16 -0600 http://www.moneyhowto.com/2007/11/27/german_business_confidence_inflation_up.html http://www.moneyhowto.com/2007/11/27/german_business_confidence_inflation_up.html BERLIN (AP) -- Business confidence in Germany rose in November for the first time since April, a closely watched survey showed Tuesday -- defying analyst expectations for Europe's largest economy.

Separately, the government estimated Germany's annual inflation rose to 3 percent this month -- its highest level in more than 13 years -- due to high prices for oil products, food and beverages.

Data from Germany are important to interest rate decisions by the European Central Bank, which has kept open the possibility of raising its rates even as the U.S. Federal Reserve cuts the cost of borrowing.

Germany's Ifo institute said its business climate index rose slightly to 104.2 from 103.9 in October, after slipping for six straight months. Economists surveyed by Dow Jones Newswires had expected another decline to 103.4.

Companies assessed their current situation more positively than in October, but were "somewhat more cautious" regarding the six-month business outlook, Ifo President Hans-Werner Sinn said.

"The results indicate that the currently strong economy is only gradually cooling," Sinn said.]]> gdz Tue, 27 Nov 2007 18:29:46 -0600