Carl-Peter Forster, chief executive officer of Tata Motors Ltd. (TTM), owner of the Jaguar and Land Rover brands, has resigned after less than two years at the helm citing “unavoidable personal circumstances.”
Forster, who joined Tata Motors in 2010, will remain as a non-executive member on the company’s board, the Mumbai-based Tata Motors said in an e-mailed statement today. India’s biggest automaker by revenue hired Forster from General Motors Co. (GM) where he was head of European operations.
Tata Motors’ American depositary receipts plunged 9.2 percent to $15.35 yesterday in New York. Forster’s resignation is a “setback” as the company struggles to boost sales at home in India, while the debt crisis in Europe slows demand for Jaguar cars, according to Deepesh Rathore, managing director for IHS Automotive in India.
“He was one of the strong pillars for JLR,” said Pramod Amthe, an analyst with Royal Bank of Scotland Group Plc in Mumbai. “His exit as the head of the business is definitely negative. Investors may not get the same level of comfort they used to get from talking to Carl.”
Prakash Telang, managing director of the company’s Indian operations, and Ralf Speth, chief executive officer of Jaguar Land Rover, will represent their respective units on Tata Motors’ board, according to today’s statement.
“The board respects Carl-Peter’s personal circumstances that led to this move,” Chairman Ratan Tata said in an e-mailed statement today. “We would like to thank him for his contributions to the successful development of our company.”
World’s Cheapest Car
Passenger-vehicle sales at Tata Motors slumped 33 percent in August from a year earlier after India’s central bank raised its benchmark interest rate to 8 percent in July, the highest among Asia’s biggest economies.
Jaguar sales declined 23 percent to 4,372 in July, according to a company statement. Almost 25 percent of Jaguar and Land Rover sales come from the U.K., where the economy grew at the slowest pace in the second quarter since it contracted in the first three months of 2010. North America and Europe account for about 22 percent each of sales, according to a company presentation.
Deliveries of the Nano, the world’s cheapest car, plunged 85 percent to 1,202 units in August, Tata Motors said in a statement on Sept. 1. The Society of Indian Automobile Manufacturers said this week it may cut the industry’s sales forecast after economic growth slowed to the least in six quarters in the three months ended June.
Nano sales haven’t picked up, while “the Indica and Indigo brands are laggards in their respective segments,” said IHS Automotive’s Rathore. “A double dip in Europe will be catastrophic for Jaguar and Land Rover.” The Indica is a hatchback and the Indigo is a sub-compact sedan on the same platform.
Successor
Tata Motors shares declined 3.3 percent to 764.9 rupees at the 3:30 p.m. close in Mumbai. The shares have declined 42 percent this year, compared with a 18 percent decline in the BSE India Sensitive Index. Forster’s resignation was announced after market hours.
“I would expect Forster’s position to be filled up in the next two to three months if the company wants to keep their plans on track,” said Rathore.
Tata Motors bought Jaguar Land Rover from Ford Motor Co. in 2008 for $2.5 billion.
To contact the reporters on this story: Siddharth Philip in Mumbai at sphilip3@bloomberg.net; Malavika Sharma in New Delhi at msharma52@bloomberg.net.
To contact the editor responsible for this story: Kae Inoue at kinoue@bloomberg.net.
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Friday, September 9, 2011
Thursday, September 8, 2011
Asian Stocks Rise, Paring Weekly Loss, on U.S. Jobs Plan, Lower China CPI By Anna Kitanaka - Sep 8, 2011
Asian stocks rebounded after U.S. President Barack Obama unveiled a $447 billion package to stimulate jobs growth and China said inflation was easing.
Hynix Semiconductor Inc. led technology stocks higher on speculation the company will benefit from production cuts by smaller rivals. Unimicron Technology Corp. jumped 6.8 percent in Taipei after saying sales rose last month. China Construction Bank Corp., the nation’s second-largest lender by market value, gained 1.2 percent. Futures on the Standard & Poor’s 500 Index climbed 0.6 percent even as Federal Reserve Chairman Ben S. Bernanke failed to outline any extra measures to shore up flagging economic growth in a speech yesterday.
The MSCI Asia Pacific Index rose 0.4 percent to 122.51 at 11:31 a.m. in Tokyo. The gauge reversed an earlier decline of as much as 0.5 percent after Bernanke spoke. The measure is on course to fall 1.4 percent this week, its first weekly decline since Aug. 19. About two stocks rose for each that fell on the 1,017-member index.
Japan’s Nikkei 225 (NKY) Stock Average climbed 0.1 percent, reversing an earlier loss of 0.7 percent after the Cabinet Office said Japan’s economy contracted more than the government initially estimated.
South Korea’s Kospi Index fell 0.2 percent. Australia’s S&P/ASX 200 Index increased 1 percent.
Hong Kong’s Hang Seng Index rose 0.8 percent while the Hang Seng China Enterprises Index increased 1.5 percent after China’s inflation eased to 6.2 percent last month from a three-year high the month before. China’s Shanghai Composite Index rose 0.8 percent.
To contact the reporter on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED
Hynix Semiconductor Inc. led technology stocks higher on speculation the company will benefit from production cuts by smaller rivals. Unimicron Technology Corp. jumped 6.8 percent in Taipei after saying sales rose last month. China Construction Bank Corp., the nation’s second-largest lender by market value, gained 1.2 percent. Futures on the Standard & Poor’s 500 Index climbed 0.6 percent even as Federal Reserve Chairman Ben S. Bernanke failed to outline any extra measures to shore up flagging economic growth in a speech yesterday.
The MSCI Asia Pacific Index rose 0.4 percent to 122.51 at 11:31 a.m. in Tokyo. The gauge reversed an earlier decline of as much as 0.5 percent after Bernanke spoke. The measure is on course to fall 1.4 percent this week, its first weekly decline since Aug. 19. About two stocks rose for each that fell on the 1,017-member index.
Japan’s Nikkei 225 (NKY) Stock Average climbed 0.1 percent, reversing an earlier loss of 0.7 percent after the Cabinet Office said Japan’s economy contracted more than the government initially estimated.
South Korea’s Kospi Index fell 0.2 percent. Australia’s S&P/ASX 200 Index increased 1 percent.
Hong Kong’s Hang Seng Index rose 0.8 percent while the Hang Seng China Enterprises Index increased 1.5 percent after China’s inflation eased to 6.2 percent last month from a three-year high the month before. China’s Shanghai Composite Index rose 0.8 percent.
To contact the reporter on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED
Wednesday, September 7, 2011
Asia Stocks Swing Between Gain, Loss as Share Sales Temper Stimulus Hopes By Anna Kitanaka and Satoshi Kawano - Sep 7, 2011
Asian stocks swung between gains and losses as job declines in Australia and share sale concerns countered speculation the U.S. will do more to stimulate economic growth.
Samsung Electronics Co., which counts America as its second-biggest market, rose 1.3 percent in Seoul. Commonwealth Bank of Australia slumped 1.5 percent in Sydney. Belle International Holdings Ltd., a Chinese retailer of women’s shoes, tumbled 8.7 percent after saying some staff may sell its shares. Woori Investment & Securities Co., a South Korean brokerage, sank 15 percent in Seoul on speculation it may sell new shares.
The MSCI Asia Pacific Index climbed 0.1 percent to 121.74 at 11:52 a.m. in Tokyo, having swung between a gain of 0.9 percent and a loss of 0.1 percent. Belle International and Korean brokerages led declines amid concern that share sales will dilute shareholder value.
“Concerns about the U.S. and Europe are easing for now,” saidMitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “Foreign investors’ risk sentiment is rebounding, judging from a sharp increase in oil futures. The bias is for stocks dependent on foreign demand, especially export-related ones, to be bought.”
Japan’s Nikkei 225 (NKY) Stock Average rose 0.5 percent. South Korea’s Kospi Index was little changed. Australia’s S&P/ASX 200 Index dropped 0.3 percent after a statistics bureau report showed the nation’s employers unexpectedly cut workers for a second straight month in August. Hong Kong’s Hang Seng Index dropped 0.7 percent.
Vietnam’s Ho Chi Minh Stock index jumped 2.8 percent. The gauge has risen for 10 days straight, it’s longest streak of gains since August 2008.
Obama Plan
Futures on the Standard & Poor’s 500 Index slid 0.3 percent today. In New York, the index rose 2.9 percent yesterday as President Barack Obama prepared to unveil his proposals for promoting job growth in an address to a joint session of Congress today. He plans to propose injecting more than $300 billion into the economy next year, mostly through tax cuts, infrastructure spending and direct aid to state and local governments.
Equities also advanced on prospects Federal Reserve Chairman Ben S. Bernanke will today signal that policy makers will consider further stimulus measures to spur the economy. Bernanke is scheduled to address the U.S. economic outlook at a speech in Minneapolis. Fed policymakers will meet for two days from Sept. 20 to discuss the economy and appropriate responses.
Woori Investment Plunges
Among stocks that declined, Woori Investment & Securities tumbled 15 percent to 11,100 won in Seoul, the biggest drop on the MSCI Asia Pacific Index. Woori Investment may sell new shares to raise 500 billion won this year, Newstomato earlier reported, citing unidentified industry officials.
Also in South Korea, Daewoo Securities Co. plunged 15 percent to 11,700 won after it announced plans to sell 1.4 trillion won of new shares.
In Hong Kong, Belle International, a Chinese maker of women’s shoes, tumbled 8.7 percent to HK$14.84, the second- biggest drag on the Hang Seng Index. The company said managers, including Chief Executive Officer Sheng Baijiao, plan to sell shares in the company.
To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Satoshi Kawano in Tokyo at skawano1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Samsung Electronics Co., which counts America as its second-biggest market, rose 1.3 percent in Seoul. Commonwealth Bank of Australia slumped 1.5 percent in Sydney. Belle International Holdings Ltd., a Chinese retailer of women’s shoes, tumbled 8.7 percent after saying some staff may sell its shares. Woori Investment & Securities Co., a South Korean brokerage, sank 15 percent in Seoul on speculation it may sell new shares.
The MSCI Asia Pacific Index climbed 0.1 percent to 121.74 at 11:52 a.m. in Tokyo, having swung between a gain of 0.9 percent and a loss of 0.1 percent. Belle International and Korean brokerages led declines amid concern that share sales will dilute shareholder value.
“Concerns about the U.S. and Europe are easing for now,” saidMitsushige Akino, who oversees about $600 million in Tokyo at Ichiyoshi Investment Management Co. “Foreign investors’ risk sentiment is rebounding, judging from a sharp increase in oil futures. The bias is for stocks dependent on foreign demand, especially export-related ones, to be bought.”
Japan’s Nikkei 225 (NKY) Stock Average rose 0.5 percent. South Korea’s Kospi Index was little changed. Australia’s S&P/ASX 200 Index dropped 0.3 percent after a statistics bureau report showed the nation’s employers unexpectedly cut workers for a second straight month in August. Hong Kong’s Hang Seng Index dropped 0.7 percent.
Vietnam’s Ho Chi Minh Stock index jumped 2.8 percent. The gauge has risen for 10 days straight, it’s longest streak of gains since August 2008.
Obama Plan
Futures on the Standard & Poor’s 500 Index slid 0.3 percent today. In New York, the index rose 2.9 percent yesterday as President Barack Obama prepared to unveil his proposals for promoting job growth in an address to a joint session of Congress today. He plans to propose injecting more than $300 billion into the economy next year, mostly through tax cuts, infrastructure spending and direct aid to state and local governments.
Equities also advanced on prospects Federal Reserve Chairman Ben S. Bernanke will today signal that policy makers will consider further stimulus measures to spur the economy. Bernanke is scheduled to address the U.S. economic outlook at a speech in Minneapolis. Fed policymakers will meet for two days from Sept. 20 to discuss the economy and appropriate responses.
Woori Investment Plunges
Among stocks that declined, Woori Investment & Securities tumbled 15 percent to 11,100 won in Seoul, the biggest drop on the MSCI Asia Pacific Index. Woori Investment may sell new shares to raise 500 billion won this year, Newstomato earlier reported, citing unidentified industry officials.
Also in South Korea, Daewoo Securities Co. plunged 15 percent to 11,700 won after it announced plans to sell 1.4 trillion won of new shares.
In Hong Kong, Belle International, a Chinese maker of women’s shoes, tumbled 8.7 percent to HK$14.84, the second- biggest drag on the Hang Seng Index. The company said managers, including Chief Executive Officer Sheng Baijiao, plan to sell shares in the company.
To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Satoshi Kawano in Tokyo at skawano1@bloomberg.net
To contact the editor responsible for this story: Nick Gentle at ngentle2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Tuesday, September 6, 2011
Asian Stocks Rebound From Three-Day Drop as Aussie, Metals Prices Advance By Shiyin Chen - Sep 6, 2011
Asian stocks rebounded from a three- day drop that left valuations at the cheapest level since 2008, and copper rose for the first time in five days. The Australian dollar gained after the economy grew at a faster-than-forecast pace and Treasury 10-year yields climbed above 2 percent.
The MSCI Asia Pacific Index added 1.3 percent at 12:06 p.m. in Tokyo. Standard & Poor’s 500 Index futures gained 0.5 percent. Copper increased 0.6 percent and oil advanced 0.4 percent. The Dollar Index snapped a six-day rally and the Aussie jumped 0.8 percent. The Swiss franc was little changed against the euro at 1.2047 after sinking as much as 9.9 percent yesterday. Treasury 10-year yields rose three basis points.
Valuations on MSCI’s Asia Pacific Index fell to 11.7 times estimated profits yesterday, the lowest level since November 2008, amid a sell-off that has wiped out $2.5 trillion from global equity values this month. Data today showed Australia’s economy grew at a faster-than-forecast 1.2 percent last quarter. The Federal Reserve will release its Beige Book survey of the U.S. economy today, while President Barack Obama will address Congress tomorrow on his plan to boost job growth.
“Asia was already quite cheap and after the drop in August, it looks even cheaper,” Wilfred Sit, Asia chief investment officer for Baring Asset Management, said in a Bloomberg Television interview from Hong Kong. “Over the long term, Asia’s fundamentals remain very strong but there’s still a possibility of macro shocks.”
Stocks Rebound
Seven shares advanced for every one that declined on MSCI’s Asia Pacific Index, helping the gauge pare its loss this year to 12 percent. Japan’s Nikkei 225 (NKY) Stock Average rallied 1.4 percent after retreating yesterday to its lowest level since April 2009. South Korea’s Kospi Index jumped 1.9 percent, Taiwan’s Taiex Index added 1.2 percent, while Australia’s S&P/ASX 200 Index climbed 2.1 percent.
Hyundai Motor Co. (005380) rallied 2.1 percent after Chang Kyun Han, president of its European operations, said the company aims to increase its European market share to 3 percent this year from the 2.8 percent it had in the first half by selling more than 400,000 vehicles. Hynix Semiconductor Inc. and Elpida Memory Inc. jumped more than 5.5 percent each, pacing gains among exporters.
S&P 500 futures expiring in September indicate the U.S. stocks gauge may rebound from its three-day, 4.4 percent slump. The index fell as much as 2.9 percent yesterday before closing 0.7 percent lower. A private report showed U.S. services industries grew faster than the median forecast of economists in a Bloomberg survey.
Obama’s Plan
Obama is set to explain his plans in a Sept. 8 address to Congress as unemployment remains at 9.1 percent more than two years after the recession’s official end. Chicago Fed President Charles Evans is scheduled to speak in London today, while Chairman Ben S. Bernanke will speak on the U.S. economic outlook tomorrow in Minneapolis. Treasury 10-year notes fell for the first time in a week, sending yields up to 2.03 percent.
The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell 0.2 percent after climbing 2.9 percent in the previous six sessions amid signs growth in the world’s largest economy is stalling and on concern Europe’s sovereign-debt crisis is worsening. The dollar weakened to $1.4030 per euro from $1.3998 yesterday. It slipped 0.3 percent to 77.41 yen, following a 1 percent jump yesterday.
“The dollar tends to weaken when appetite for risk increases because it’s a currency that’s preferred when people are risk averse,” said Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG.
Australia’s Growth
The Aussie strengthened after today’s gross domestic product report. The economy was forecast to have expanded 1 percent in the second quarter from the previous three months, according to the median forecast of 25 estimates in a Bloomberg News survey.
The cost of protecting Asia-Pacific corporate and sovereign bonds from default dropped, with the Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan decreasing 4 basis points to 160.5 basis points, Royal Bank of Scotland Group Plc prices show. The index is on course for its first decline since Sept. 1, according to data provider CMA, which is owned by CME Group Inc. and compiles credit-default swap prices quoted by dealers in the privately negotiated market.
The Markit iTraxx Japan index decreased 4 basis points to 151, Deutsche Bank AG prices show, while the Markit iTraxx Australia index declined 3 basis points to 177 basis points, according to Credit Agricole CIB. Both indexes are also headed for the first decline since Sept. 1, CMA prices in New York show.
Copper for three-month delivery rose 0.5 percent to $8,985 a metric ton on the London Metal Exchange, following a four-day, 3.7 percent loss. Nickel climbed 1.8 percent, also gaining for the first time in five days.
Crude gained 0.4 percent to $86.33 in New York, rebounding from the lowest level in more than a week. October futures had dropped 3.2 percent in the previous two day.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
The MSCI Asia Pacific Index added 1.3 percent at 12:06 p.m. in Tokyo. Standard & Poor’s 500 Index futures gained 0.5 percent. Copper increased 0.6 percent and oil advanced 0.4 percent. The Dollar Index snapped a six-day rally and the Aussie jumped 0.8 percent. The Swiss franc was little changed against the euro at 1.2047 after sinking as much as 9.9 percent yesterday. Treasury 10-year yields rose three basis points.
Valuations on MSCI’s Asia Pacific Index fell to 11.7 times estimated profits yesterday, the lowest level since November 2008, amid a sell-off that has wiped out $2.5 trillion from global equity values this month. Data today showed Australia’s economy grew at a faster-than-forecast 1.2 percent last quarter. The Federal Reserve will release its Beige Book survey of the U.S. economy today, while President Barack Obama will address Congress tomorrow on his plan to boost job growth.
“Asia was already quite cheap and after the drop in August, it looks even cheaper,” Wilfred Sit, Asia chief investment officer for Baring Asset Management, said in a Bloomberg Television interview from Hong Kong. “Over the long term, Asia’s fundamentals remain very strong but there’s still a possibility of macro shocks.”
Stocks Rebound
Seven shares advanced for every one that declined on MSCI’s Asia Pacific Index, helping the gauge pare its loss this year to 12 percent. Japan’s Nikkei 225 (NKY) Stock Average rallied 1.4 percent after retreating yesterday to its lowest level since April 2009. South Korea’s Kospi Index jumped 1.9 percent, Taiwan’s Taiex Index added 1.2 percent, while Australia’s S&P/ASX 200 Index climbed 2.1 percent.
Hyundai Motor Co. (005380) rallied 2.1 percent after Chang Kyun Han, president of its European operations, said the company aims to increase its European market share to 3 percent this year from the 2.8 percent it had in the first half by selling more than 400,000 vehicles. Hynix Semiconductor Inc. and Elpida Memory Inc. jumped more than 5.5 percent each, pacing gains among exporters.
S&P 500 futures expiring in September indicate the U.S. stocks gauge may rebound from its three-day, 4.4 percent slump. The index fell as much as 2.9 percent yesterday before closing 0.7 percent lower. A private report showed U.S. services industries grew faster than the median forecast of economists in a Bloomberg survey.
Obama’s Plan
Obama is set to explain his plans in a Sept. 8 address to Congress as unemployment remains at 9.1 percent more than two years after the recession’s official end. Chicago Fed President Charles Evans is scheduled to speak in London today, while Chairman Ben S. Bernanke will speak on the U.S. economic outlook tomorrow in Minneapolis. Treasury 10-year notes fell for the first time in a week, sending yields up to 2.03 percent.
The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell 0.2 percent after climbing 2.9 percent in the previous six sessions amid signs growth in the world’s largest economy is stalling and on concern Europe’s sovereign-debt crisis is worsening. The dollar weakened to $1.4030 per euro from $1.3998 yesterday. It slipped 0.3 percent to 77.41 yen, following a 1 percent jump yesterday.
“The dollar tends to weaken when appetite for risk increases because it’s a currency that’s preferred when people are risk averse,” said Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG.
Australia’s Growth
The Aussie strengthened after today’s gross domestic product report. The economy was forecast to have expanded 1 percent in the second quarter from the previous three months, according to the median forecast of 25 estimates in a Bloomberg News survey.
The cost of protecting Asia-Pacific corporate and sovereign bonds from default dropped, with the Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan decreasing 4 basis points to 160.5 basis points, Royal Bank of Scotland Group Plc prices show. The index is on course for its first decline since Sept. 1, according to data provider CMA, which is owned by CME Group Inc. and compiles credit-default swap prices quoted by dealers in the privately negotiated market.
The Markit iTraxx Japan index decreased 4 basis points to 151, Deutsche Bank AG prices show, while the Markit iTraxx Australia index declined 3 basis points to 177 basis points, according to Credit Agricole CIB. Both indexes are also headed for the first decline since Sept. 1, CMA prices in New York show.
Copper for three-month delivery rose 0.5 percent to $8,985 a metric ton on the London Metal Exchange, following a four-day, 3.7 percent loss. Nickel climbed 1.8 percent, also gaining for the first time in five days.
Crude gained 0.4 percent to $86.33 in New York, rebounding from the lowest level in more than a week. October futures had dropped 3.2 percent in the previous two day.
To contact the reporter on this story: Shiyin Chen in Singapore at schen37@bloomberg.net
To contact the editor responsible for this story: Shelley Smith at ssmith118@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Sunday, September 4, 2011
Oil Drops a Second Day on Signs Economic Growth Slowing in U.S. and China By Ben Sharples - Sep 4, 2011
Oil declined for a second day in New York as investors speculated that signs the U.S. and Chinese economies are weakening indicate fuel demand will falter in the world’s biggest crude-consuming nations.
Futures slipped as much as 0.9 percent, extending a 2.8 percent slide on Sept. 2. Chinese services slowed in August while U.S. employment stagnated, reports showed last week. Crude also fell as Exxon Mobil Corp. and Royal Dutch Shell Plc returned workers to some oil and natural gas platforms after Tropical Storm Lee moved out of the Gulf of Mexico. London-traded Brent narrowed its premium to U.S. prices.
“The sentiment is negative as a result of the employment data and people are starting to think the economy is kaput,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney. “Equity prices are under pressure, crude is under pressure. Confidence will have to be rebuilt.”
Crude for October delivery fell as much as 77 cents to $85.68 a barrel in electronic trading on the New York Mercantile Exchange, and was at $85.84 at 11:23 a.m. Sydney time. The contract dropped $2.48, or 2.8 percent, to $86.45 on Sept. 2. Prices are up 16 percent the past year. There will be no Nymex floor trading today because of the Labor Day holiday.
Brent oil for October settlement decreased 76 cents, or 0.7 percent, to $111.57 on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $25.78 to U.S. futures, compared with a record close of $26.21 on Aug. 19.
Employment, Services
U.S. payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was smaller than initially estimated, the Labor Department said in Washington. The median forecast in a Bloomberg News survey called for a gain of 68,000.
“Oil futures fell on the weaker U.S. data,” economists at Australia & New Zealand Banking Group Ltd., led by Warren Hogan, said in a note today. The bank estimates New York oil will average $100 a barrel in the third quarter. “The potential for some resurrection in the U.S. labor market now increasingly looks reliant on further policy stimulus.”
China’s purchasing managers’ index of non-manufacturing industries dipped to 57.6 from 59.6 in July, the China Federation of Logistics and Purchasing said on its website. A reading above 50 indicates expansion.
Oil Bets
Hedge funds boosted bullish bets on oil by the most since March as Hurricane Irene took aim at the U.S. East Coast, threatening imports, pipelines and refineries. The funds and other large speculators increased wagers that prices will rise by 13 percent in the week ended Aug. 30 to the highest level since July 26, according to the Commodity Futures Trading Commission’s Sept. 2 Commitments of Traders report.
Lee picked up speed and began a move toward the waterlogged U.S. Northeast after making landfall and soaking Louisiana yesterday. The storm was about 30 miles (50 kilometers) north- northeast of Lafayette, Louisiana, moving north at 5 miles per hour as of 4 p.m. local time, the U.S. National Hurricane Center said in its latest advisory.
Crews are resuming production in the western Gulf after inspecting equipment for damage, David Eglinton, a spokesman for Exxon Mobil, based in Irving, Texas, said yesterday in an e- mail. Shell confirmed it began returning staff after evacuating as many as 858 workers.
Tropical-storm force winds remain in the Gulf of Mexico, where 60 percent of oil production and 44 percent of natural gas output is halted, the Bureau of Ocean Energy Management, Regulation and Enforcement said on its website yesterday.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Futures slipped as much as 0.9 percent, extending a 2.8 percent slide on Sept. 2. Chinese services slowed in August while U.S. employment stagnated, reports showed last week. Crude also fell as Exxon Mobil Corp. and Royal Dutch Shell Plc returned workers to some oil and natural gas platforms after Tropical Storm Lee moved out of the Gulf of Mexico. London-traded Brent narrowed its premium to U.S. prices.
“The sentiment is negative as a result of the employment data and people are starting to think the economy is kaput,” said Jonathan Barratt, a managing director of Commodity Broking Services Pty in Sydney. “Equity prices are under pressure, crude is under pressure. Confidence will have to be rebuilt.”
Crude for October delivery fell as much as 77 cents to $85.68 a barrel in electronic trading on the New York Mercantile Exchange, and was at $85.84 at 11:23 a.m. Sydney time. The contract dropped $2.48, or 2.8 percent, to $86.45 on Sept. 2. Prices are up 16 percent the past year. There will be no Nymex floor trading today because of the Labor Day holiday.
Brent oil for October settlement decreased 76 cents, or 0.7 percent, to $111.57 on the London-based ICE Futures Europe exchange. The European benchmark was at a premium of $25.78 to U.S. futures, compared with a record close of $26.21 on Aug. 19.
Employment, Services
U.S. payrolls were unchanged last month, the weakest reading since September 2010, after an 85,000 gain in July that was smaller than initially estimated, the Labor Department said in Washington. The median forecast in a Bloomberg News survey called for a gain of 68,000.
“Oil futures fell on the weaker U.S. data,” economists at Australia & New Zealand Banking Group Ltd., led by Warren Hogan, said in a note today. The bank estimates New York oil will average $100 a barrel in the third quarter. “The potential for some resurrection in the U.S. labor market now increasingly looks reliant on further policy stimulus.”
China’s purchasing managers’ index of non-manufacturing industries dipped to 57.6 from 59.6 in July, the China Federation of Logistics and Purchasing said on its website. A reading above 50 indicates expansion.
Oil Bets
Hedge funds boosted bullish bets on oil by the most since March as Hurricane Irene took aim at the U.S. East Coast, threatening imports, pipelines and refineries. The funds and other large speculators increased wagers that prices will rise by 13 percent in the week ended Aug. 30 to the highest level since July 26, according to the Commodity Futures Trading Commission’s Sept. 2 Commitments of Traders report.
Lee picked up speed and began a move toward the waterlogged U.S. Northeast after making landfall and soaking Louisiana yesterday. The storm was about 30 miles (50 kilometers) north- northeast of Lafayette, Louisiana, moving north at 5 miles per hour as of 4 p.m. local time, the U.S. National Hurricane Center said in its latest advisory.
Crews are resuming production in the western Gulf after inspecting equipment for damage, David Eglinton, a spokesman for Exxon Mobil, based in Irving, Texas, said yesterday in an e- mail. Shell confirmed it began returning staff after evacuating as many as 858 workers.
Tropical-storm force winds remain in the Gulf of Mexico, where 60 percent of oil production and 44 percent of natural gas output is halted, the Bureau of Ocean Energy Management, Regulation and Enforcement said on its website yesterday.
To contact the reporter on this story: Ben Sharples in Melbourne at bsharples@bloomberg.net
To contact the editor responsible for this story: Alexander Kwiatkowski in Singapore at akwiatkowsk2@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Subscribe to:
Posts (Atom)
Posts
