Jan. 30 (Bloomberg) -- Morgan Stanley predicted the Taiwan dollar will weaken, even as the Chinese yuan strengthens, because countries dependent on exports are the “most vulnerable” during a global economic slowdown.
The Taiwan dollar will decline almost 5 percent to NT$35.3 this year, Morgan Stanley forecast in a report published yesterday. The New York-based company recommended investors bet on appreciation in the yuan against the dollar with three-month non-deliverable forwards.
Thursday, January 29, 2009
India’s Sensex Declines; Bharti, DLF Fall as Automakers Advance
Jan. 29 (Bloomberg) -- Indian stocks fell, with the benchmark index snapping a two-day, 6.7 percent rally. Bharti Airtel Ltd. and Reliance Communications Ltd., India’s two biggest mobile-phone operators, dropped after they had their price targets cut at Goldman Sachs Group Inc.
DLF Ltd., India’s biggest real estate developer, declined after its share price forecast was reduced at Morgan Stanley, which said weak demand for property will damp profits. DLF will report earnings on Jan. 31.
“We are seeing demand declining and revenue contracting,” said Mahesh Patil, who helps manage the equivalent of $8.8 billion at Birla Sunlife Asset Management in Mumbai. “Cost pressures are high, now with demand declining it will create a problem.”
Mahindra & Mahindra Ltd., the largest local maker of sport- utility vehicles, led automakers higher after the government cut retail fuel prices for the second time in less than two months.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 21.19, or 0.2 percent, to 9,236.28. The S&P CNX Nifty Index on the National Stock Exchange fell 25.55, or 0.9 percent, to 2,823.95. The BSE 200 Index slid 0.5 percent to 1,086.02. S&P CNX Nifty futures for January delivery declined 0.8 percent to 2,823.70.
Bharti fell 3.8 percent to 627.40 rupees. Reliance Communications declined 2.6 percent to 161.85 rupees. Bharti’s 12-month share price estimate was lowered 5.5 percent to 800 rupees while that of Reliance Communications was lowered 25 percent to 170 rupees, according to a Goldman Sachs report released today. Goldman cited the effect on earnings from spending on high-speed networks.
DLF dropped 7.6 percent to 164.05 rupees. The developer’s stock price estimate was cut by 41 percent to 150 rupees a share at Morgan Stanley. The company is expected to report a 26 percent decline in earnings in the December quarter, according to the median estimate of analysts surveyed by Bloomberg News.
Mahindra added 3.9 percent to 294.40 rupees. Tata Motors Ltd., India’s largest truck and busmaker, gained 3.7 percent to 152.05 rupees. Maruti Suzuki India Ltd., the No. 1 carmaker, added 4.6 percent to 544.45 rupees. Gasoline prices will be lowered by 5 rupees (10 U.S. cents) a liter, diesel by 2 rupees a liter, and cooking gas by 25 rupees a bottle effective midnight, Oil Minister Murli Deora said late yesterday.
The following are among the most active shares traded on the Bombay and National stock exchanges. Stock symbols are in parentheses after company names:
Asian Paints (India) Ltd. (APNT IN) dropped 30.8 rupees, or 4 percent, to 749.80, its lowest since April 2007. The nation’s largest paintmaker reported that its founders pledged a 15 percent stake following tightened disclosure norms.
GAIL India Ltd. (GAIL IN) slid 4.25 rupees, or 2.1 percent, to 197. India’s monopoly natural gas distributor said yesterday third-quarter profit declined 59 percent to 2.53 billion rupees. That was below the 5.9 billion rupees median estimate of analysts surveyed by Bloomberg News.
Reliance Power Ltd. (RPWR IN) added 1.9 rupees, or 1.9 percent, to 104.5. The unit of India’s third-largest power generator may win its third so-called ultra mega power project with the lowest bid to build a 4,000 megawatt electricity generation plant. Reliance Power quoted a price of less than 2 rupees a unit to sell power from the coal-fired project in Jharkhand state, said an official of the state-run Power Finance Corp., which manages the bidding on behalf of India’s Power Ministry.
Tata Steel Ltd. (TATA IN) rose 6.5 rupees, or 3.7 percent, to 183.70. India’s largest steelmaker aims to revive fourth- quarter earnings by lowering fuel costs and increasing exports.
The company has renegotiated lower coking coal rates for this quarter, Managing Director B. Muthuraman said yesterday. Tata Steel plans to triple exports to 330,000 tons in the period as local demand wanes for hot-rolled coils, Chief Operating Officer H.M. Nerurkar said.
DLF Ltd., India’s biggest real estate developer, declined after its share price forecast was reduced at Morgan Stanley, which said weak demand for property will damp profits. DLF will report earnings on Jan. 31.
“We are seeing demand declining and revenue contracting,” said Mahesh Patil, who helps manage the equivalent of $8.8 billion at Birla Sunlife Asset Management in Mumbai. “Cost pressures are high, now with demand declining it will create a problem.”
Mahindra & Mahindra Ltd., the largest local maker of sport- utility vehicles, led automakers higher after the government cut retail fuel prices for the second time in less than two months.
The Bombay Stock Exchange’s Sensitive Index, or Sensex, fell 21.19, or 0.2 percent, to 9,236.28. The S&P CNX Nifty Index on the National Stock Exchange fell 25.55, or 0.9 percent, to 2,823.95. The BSE 200 Index slid 0.5 percent to 1,086.02. S&P CNX Nifty futures for January delivery declined 0.8 percent to 2,823.70.
Bharti fell 3.8 percent to 627.40 rupees. Reliance Communications declined 2.6 percent to 161.85 rupees. Bharti’s 12-month share price estimate was lowered 5.5 percent to 800 rupees while that of Reliance Communications was lowered 25 percent to 170 rupees, according to a Goldman Sachs report released today. Goldman cited the effect on earnings from spending on high-speed networks.
DLF dropped 7.6 percent to 164.05 rupees. The developer’s stock price estimate was cut by 41 percent to 150 rupees a share at Morgan Stanley. The company is expected to report a 26 percent decline in earnings in the December quarter, according to the median estimate of analysts surveyed by Bloomberg News.
Mahindra added 3.9 percent to 294.40 rupees. Tata Motors Ltd., India’s largest truck and busmaker, gained 3.7 percent to 152.05 rupees. Maruti Suzuki India Ltd., the No. 1 carmaker, added 4.6 percent to 544.45 rupees. Gasoline prices will be lowered by 5 rupees (10 U.S. cents) a liter, diesel by 2 rupees a liter, and cooking gas by 25 rupees a bottle effective midnight, Oil Minister Murli Deora said late yesterday.
The following are among the most active shares traded on the Bombay and National stock exchanges. Stock symbols are in parentheses after company names:
Asian Paints (India) Ltd. (APNT IN) dropped 30.8 rupees, or 4 percent, to 749.80, its lowest since April 2007. The nation’s largest paintmaker reported that its founders pledged a 15 percent stake following tightened disclosure norms.
GAIL India Ltd. (GAIL IN) slid 4.25 rupees, or 2.1 percent, to 197. India’s monopoly natural gas distributor said yesterday third-quarter profit declined 59 percent to 2.53 billion rupees. That was below the 5.9 billion rupees median estimate of analysts surveyed by Bloomberg News.
Reliance Power Ltd. (RPWR IN) added 1.9 rupees, or 1.9 percent, to 104.5. The unit of India’s third-largest power generator may win its third so-called ultra mega power project with the lowest bid to build a 4,000 megawatt electricity generation plant. Reliance Power quoted a price of less than 2 rupees a unit to sell power from the coal-fired project in Jharkhand state, said an official of the state-run Power Finance Corp., which manages the bidding on behalf of India’s Power Ministry.
Tata Steel Ltd. (TATA IN) rose 6.5 rupees, or 3.7 percent, to 183.70. India’s largest steelmaker aims to revive fourth- quarter earnings by lowering fuel costs and increasing exports.
The company has renegotiated lower coking coal rates for this quarter, Managing Director B. Muthuraman said yesterday. Tata Steel plans to triple exports to 330,000 tons in the period as local demand wanes for hot-rolled coils, Chief Operating Officer H.M. Nerurkar said.
Japan Heads for Worst Postwar Recession as Production Collapses
Jan. 30 (Bloomberg) -- Japan headed for its worst postwar recession in December as factory output slumped an unprecedented 9.6 percent, unemployment surged and households cut spending.
The drop in production eclipsed the previous record of 8.5 percent set only a month earlier, the Trade Ministry said today in Tokyo. The jobless rate soared to 4.4 percent from 3.9 percent, the biggest jump in 41 years.
Recessions in the U.S. and Europe and a slowdown in China have smothered demand for Japanese cars and electronics. Toyota Motor Corp., Sony Corp. and Honda Motor Co. are shutting factory lines and firing thousands of workers as plummeting sales abroad wipe out earnings.
“Japan’s economy is falling off a cliff,” said Junko Nishioka, an economist at RBS Securities Japan Ltd. in Tokyo. “There’s really nothing out there to drive growth.”
The Nikkei 225 Stock Average fell 3.2 percent as of 9:31 a.m. in Tokyo. The yen traded at 89.71 per dollar from 89.99 before the reports were published. The Japanese currency’s 18 percent gain in the past year has compounded exporters’ woes by eroding the value of their profits earned overseas.
Household spending slid 4.6 percent, a 10th month of declines, a separate report showed. Consumer prices excluding fresh food rose 0.2 percent in December from a year earlier, slowing from 1 percent in November.
The month-on-month decline in production was steeper than the 8.9 percent economists predicted and the biggest since the figures were first compiled in 1953. Output tumbled 11.9 percent in the three months to December, the ministry said, the fourth straight quarterly drop.
‘Profound Impact’
“There’s a global synchronized recession and manufacturers are responding aggressively,” said Jan Lambregts, head of Asian research at Rabobank International in Hong Kong. “That’s going to have a profound impact” on economic growth.
The International Monetary Fund said this week that Japan’s gross domestic product will shrink 2.6 percent this year, the bleakest projection for any Group of Seven economy except the U.K. That contraction would be Japan’s worst since World War II.
Japan’s recession began in November 2007, a government panel that dates the economic cycle said yesterday. The slump may last more than three years to become the longest on record, Hiroshi Yoshikawa, a Tokyo University professor who heads the committee, said in an interview this month.
Exports tumbled a record 35 percent in December, decimating corporate earnings and bringing the global recession home to Japanese households as companies cut work hours and fire employees.
Toyota, which is forecasting its first loss in 71 years, will halt its home production for 14 extra days this quarter.
‘Frightening’
“If the production cuts ended with the carmakers that would be one thing, but the carmakers drag down the steelmakers and the suppliers along with them,” RBS’s Nishioka said. “The numbers are frightening.”
Last month’s increase in the jobless rate was the sharpest since 1967, the statistics bureau said, as manufacturers fired mostly temporary staff. Some 400,000 non-regular workers will be out of jobs by the end of March, the Japan Manufacturing Outsourcing Association reported this week, which was about five times more than a December estimate by the Labor Ministry.
“This deep recession could compel companies to cut full- time workers,” said Noriaki Matsuoka, an economist at Daiwa Asset Management Co. in Tokyo. “The jobless rate could rise to around 5 percent, giving us more reasons not to expect consumer spending to support the economy.”
Parliamentary gridlock has stymied the ruling Liberal Democratic Party’s efforts to pass a 10 trillion yen ($111.2 billion) stimulus package that seeks to encourage consumer spending. The Bank of Japan, which last month lowered interest rates to 0.1 percent, has little room to counter the downturn.
The drop in production eclipsed the previous record of 8.5 percent set only a month earlier, the Trade Ministry said today in Tokyo. The jobless rate soared to 4.4 percent from 3.9 percent, the biggest jump in 41 years.
Recessions in the U.S. and Europe and a slowdown in China have smothered demand for Japanese cars and electronics. Toyota Motor Corp., Sony Corp. and Honda Motor Co. are shutting factory lines and firing thousands of workers as plummeting sales abroad wipe out earnings.
“Japan’s economy is falling off a cliff,” said Junko Nishioka, an economist at RBS Securities Japan Ltd. in Tokyo. “There’s really nothing out there to drive growth.”
The Nikkei 225 Stock Average fell 3.2 percent as of 9:31 a.m. in Tokyo. The yen traded at 89.71 per dollar from 89.99 before the reports were published. The Japanese currency’s 18 percent gain in the past year has compounded exporters’ woes by eroding the value of their profits earned overseas.
Household spending slid 4.6 percent, a 10th month of declines, a separate report showed. Consumer prices excluding fresh food rose 0.2 percent in December from a year earlier, slowing from 1 percent in November.
The month-on-month decline in production was steeper than the 8.9 percent economists predicted and the biggest since the figures were first compiled in 1953. Output tumbled 11.9 percent in the three months to December, the ministry said, the fourth straight quarterly drop.
‘Profound Impact’
“There’s a global synchronized recession and manufacturers are responding aggressively,” said Jan Lambregts, head of Asian research at Rabobank International in Hong Kong. “That’s going to have a profound impact” on economic growth.
The International Monetary Fund said this week that Japan’s gross domestic product will shrink 2.6 percent this year, the bleakest projection for any Group of Seven economy except the U.K. That contraction would be Japan’s worst since World War II.
Japan’s recession began in November 2007, a government panel that dates the economic cycle said yesterday. The slump may last more than three years to become the longest on record, Hiroshi Yoshikawa, a Tokyo University professor who heads the committee, said in an interview this month.
Exports tumbled a record 35 percent in December, decimating corporate earnings and bringing the global recession home to Japanese households as companies cut work hours and fire employees.
Toyota, which is forecasting its first loss in 71 years, will halt its home production for 14 extra days this quarter.
‘Frightening’
“If the production cuts ended with the carmakers that would be one thing, but the carmakers drag down the steelmakers and the suppliers along with them,” RBS’s Nishioka said. “The numbers are frightening.”
Last month’s increase in the jobless rate was the sharpest since 1967, the statistics bureau said, as manufacturers fired mostly temporary staff. Some 400,000 non-regular workers will be out of jobs by the end of March, the Japan Manufacturing Outsourcing Association reported this week, which was about five times more than a December estimate by the Labor Ministry.
“This deep recession could compel companies to cut full- time workers,” said Noriaki Matsuoka, an economist at Daiwa Asset Management Co. in Tokyo. “The jobless rate could rise to around 5 percent, giving us more reasons not to expect consumer spending to support the economy.”
Parliamentary gridlock has stymied the ruling Liberal Democratic Party’s efforts to pass a 10 trillion yen ($111.2 billion) stimulus package that seeks to encourage consumer spending. The Bank of Japan, which last month lowered interest rates to 0.1 percent, has little room to counter the downturn.
Asian Stocks Fall on Renewed Recession Concern; Toshiba Plunges
Jan. 30 (Bloomberg) -- Asian stocks fell for the first time in four days, led by banks and technology companies, as a record slump in Japanese production and lower profit forecasts renewed concern that the global recession is deepening.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, slumped 4.7 percent as reports showed the country’s factory output slumped 9.6 percent in December and unemployment surged. Toshiba Corp., Japan’s No. 1 chipmaker, and Nintendo Co., which makes the Wii game console, tumbled more than 12 percent after reducing earnings forecasts. Rio Tinto Group, the world’s third- biggest mining company, fell 3.1 percent on lower metal prices.
The MSCI Asia Pacific Index dropped 1.9 percent to 83.10 as of 10:47 a.m. in Tokyo. The measure snapped a three-day, 5.8 percent climb that came as the U.S., Japan and Australia widened efforts to end the global financial crisis that has dragged the world’s largest economies into recession.
“Expectations for government measures have been fully priced into the market, and investor focus is returning to the deterioration of the global economy,” Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which manages the equivalent of $53 billion, said in an interview with Bloomberg Television.
Five stocks declined for each that rose on the MSCI gauge, which has fallen 5.6 percent this month. The Nikkei 225 Stock Average gained 1.8 percent, while Australia’s S&P/ASX 200 Index fell 1 percent to 3,490.00.
The Standard & Poor’s 500 Index dropped 3.3 percent in New York yesterday, breaking a four-day winning streak, as reports showed new home sales fell to an all-time low and the number of Americans receiving jobless benefits surged to a record.
Record Decline
The MSCI Asia Pacific Index’s declines this year extended last year’s record 43 percent tumble. The slump has cut the average valuation of companies on the benchmark measure by 38 percent in the past year to 10 times reported profit.
Mitsubishi UFJ lost 4.7 percent to 502 yen. Mizuho Financial Group Inc., Japan’s second-largest bank, slumped 4.1 percent to 235 yen.
Japanese manufacturers cut production by 9.6 percent last month as recessions in the U.S. and Europe and a slowdown in China weakened demand for Japanese cars and electronics, the Trade Ministry said today. The drop eclipsed November’s record 8.5 percent decline.
Toshiba tumbled 16 percent to 325 yen after reversing its full-year profit outlook to a loss as the global recession damped demand for chips used in consumer electronics. Nintendo tumbled 12 percent to 28,300 yen after cutting cut its full-year net income forecast by 33 percent.
Kyocera Corp., the world’s fourth-largest solar-cell maker, dropped 5 percent to 5,920 yen. The company slashed its full- year profit target by 64 percent, citing a downturn in the global electronics market.
Rio fell 3.5 percent to A$39.29. BHP Billiton Ltd., the world’s largest mining company lost 1.7 percent to A$30.13. A measure of six metals traded in London dropped 2.2 percent, with both copper and nickel falling 3 percent.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, slumped 4.7 percent as reports showed the country’s factory output slumped 9.6 percent in December and unemployment surged. Toshiba Corp., Japan’s No. 1 chipmaker, and Nintendo Co., which makes the Wii game console, tumbled more than 12 percent after reducing earnings forecasts. Rio Tinto Group, the world’s third- biggest mining company, fell 3.1 percent on lower metal prices.
The MSCI Asia Pacific Index dropped 1.9 percent to 83.10 as of 10:47 a.m. in Tokyo. The measure snapped a three-day, 5.8 percent climb that came as the U.S., Japan and Australia widened efforts to end the global financial crisis that has dragged the world’s largest economies into recession.
“Expectations for government measures have been fully priced into the market, and investor focus is returning to the deterioration of the global economy,” Soichiro Monji, chief strategist at Tokyo-based Daiwa SB Investments Ltd., which manages the equivalent of $53 billion, said in an interview with Bloomberg Television.
Five stocks declined for each that rose on the MSCI gauge, which has fallen 5.6 percent this month. The Nikkei 225 Stock Average gained 1.8 percent, while Australia’s S&P/ASX 200 Index fell 1 percent to 3,490.00.
The Standard & Poor’s 500 Index dropped 3.3 percent in New York yesterday, breaking a four-day winning streak, as reports showed new home sales fell to an all-time low and the number of Americans receiving jobless benefits surged to a record.
Record Decline
The MSCI Asia Pacific Index’s declines this year extended last year’s record 43 percent tumble. The slump has cut the average valuation of companies on the benchmark measure by 38 percent in the past year to 10 times reported profit.
Mitsubishi UFJ lost 4.7 percent to 502 yen. Mizuho Financial Group Inc., Japan’s second-largest bank, slumped 4.1 percent to 235 yen.
Japanese manufacturers cut production by 9.6 percent last month as recessions in the U.S. and Europe and a slowdown in China weakened demand for Japanese cars and electronics, the Trade Ministry said today. The drop eclipsed November’s record 8.5 percent decline.
Toshiba tumbled 16 percent to 325 yen after reversing its full-year profit outlook to a loss as the global recession damped demand for chips used in consumer electronics. Nintendo tumbled 12 percent to 28,300 yen after cutting cut its full-year net income forecast by 33 percent.
Kyocera Corp., the world’s fourth-largest solar-cell maker, dropped 5 percent to 5,920 yen. The company slashed its full- year profit target by 64 percent, citing a downturn in the global electronics market.
Rio fell 3.5 percent to A$39.29. BHP Billiton Ltd., the world’s largest mining company lost 1.7 percent to A$30.13. A measure of six metals traded in London dropped 2.2 percent, with both copper and nickel falling 3 percent.
Tuesday, January 27, 2009
Mexico’s economy to shrink up to 1.8%
Published: January 28 2009 00:43 | Last updated: January 28 2009 00:43
The Mexican economy is heading towards a significant recession this year, contracting by as much as 1.8 per cent as it struggles to cope with the US financial crisis and global downturn, the country’s central bank forecast on Tuesday.
Guillermo Ortiz, the central bank president, said this year’s estimated economic growth now ranged between -0.8 per cent and -1.8 per cent. “The reduced perspectives of the Mexican economy in 2009 stem principally from the severe deterioration of the external environment,” he said.
EDITOR’S CHOICE
Mexico rebuffs ‘failed state’ claims - Jan-18
Mexico’s central bank cuts rates by 0.5% - Jan-17
Mexico poised to cut interest rates - Jan-16
Mexico rules out growth this year - Jan-09
Oil price drop casts cloud over Pemex reform - Dec-08
Mexico helpless as drugs war rages - Dec-03
At the same time, Mr Ortiz said that Mexico was likely to lose between 160,000 and 340,000 jobs this year – a particularly worrying prospect, given that the country’s relatively young population pushes 1m new people into the job market every year.
The central bank estimated inflation would finish the year at less than 4 per cent, within the bank’s target range of 2-4 per cent.
The estimates were well below those of Mexico’s finance ministry, which this month predicted that growth this year would be flat.
They also underline the growing pessimism surrounding the Mexican economy as it begins to suffer from its close economic relationship with the US. About 80 per cent of Mexico’s exports go directly to the US, and their value is equivalent to about 25 per cent of gross domestic product.
Inegi, the national statistics agency, added to the gloom with the news that manufacturing exports in December slumped by 11.5 per cent compared with the same month in 2007. In September, Inegi reported that these exports grew more than 12 per cent compared with a year previously.
The Mexican economy is heading towards a significant recession this year, contracting by as much as 1.8 per cent as it struggles to cope with the US financial crisis and global downturn, the country’s central bank forecast on Tuesday.
Guillermo Ortiz, the central bank president, said this year’s estimated economic growth now ranged between -0.8 per cent and -1.8 per cent. “The reduced perspectives of the Mexican economy in 2009 stem principally from the severe deterioration of the external environment,” he said.
EDITOR’S CHOICE
Mexico rebuffs ‘failed state’ claims - Jan-18
Mexico’s central bank cuts rates by 0.5% - Jan-17
Mexico poised to cut interest rates - Jan-16
Mexico rules out growth this year - Jan-09
Oil price drop casts cloud over Pemex reform - Dec-08
Mexico helpless as drugs war rages - Dec-03
At the same time, Mr Ortiz said that Mexico was likely to lose between 160,000 and 340,000 jobs this year – a particularly worrying prospect, given that the country’s relatively young population pushes 1m new people into the job market every year.
The central bank estimated inflation would finish the year at less than 4 per cent, within the bank’s target range of 2-4 per cent.
The estimates were well below those of Mexico’s finance ministry, which this month predicted that growth this year would be flat.
They also underline the growing pessimism surrounding the Mexican economy as it begins to suffer from its close economic relationship with the US. About 80 per cent of Mexico’s exports go directly to the US, and their value is equivalent to about 25 per cent of gross domestic product.
Inegi, the national statistics agency, added to the gloom with the news that manufacturing exports in December slumped by 11.5 per cent compared with the same month in 2007. In September, Inegi reported that these exports grew more than 12 per cent compared with a year previously.
GE, Molex, RF Micro Devices, Sun, Yahoo: U.S. Equity Preview
Jan. 27 (Bloomberg) -- Shares of the following companies may have unusual fluctuations in U.S. trading tomorrow. Stock symbols are in parentheses, and prices are as of 6:21 p.m. in New York.
Standard & Poor’s 500 Index futures expiring in March rose 1.4 percent to 850.50. Dow Jones Industrial Average futures added 91 points, or 1.1 percent, to 8,184.
General Electric Co. (GE:US) fell 1.4 percent to $12.87. GE and its finance arm may lose their top-level Aaa ratings as the global recession and credit crisis lessen the chance GE Capital can make a $5 billion profit goal this year, Moody’s Investors Service said.
Molex Inc. (MOLX:US) fell 5.9 percent to $13.15. The maker of electrical components for phones and computers said third- quarter sales may be as low as $500 million. Analysts estimated $616.9 million on average.
RF Micro Devices Inc. (RFMD:US) lost 13 percent to $1.06. The maker of chips for mobile phones predicted that fourth- quarter sales will decline “more than seasonally” due to weak demand for its products. The company suspended detailed quarterly forecasts, citing “uncertainty regarding customer demand.”
Sun Microsystems Inc. (JAVA:US) rose 6.3 percent to $4.24. The world’s fourth-largest maker of server computers reported an unexpected second-quarter profit after cutting jobs to cope with the recession.
VistaPrint Ltd. (VPRT:US) rose 23 percent to $20.01. The online provider of printing services forecast sales of at least $495 million in fiscal 2009. Analysts surveyed by Bloomberg projected an average of $492 million.
Yahoo! Inc. (YHOO:US) rose 4.9 percent to $11.90. The second-biggest search engine forecast first-quarter revenue of no less than $1.53 billion. That exceeded the average analyst estimate of $1.30 billion.
Standard & Poor’s 500 Index futures expiring in March rose 1.4 percent to 850.50. Dow Jones Industrial Average futures added 91 points, or 1.1 percent, to 8,184.
General Electric Co. (GE:US) fell 1.4 percent to $12.87. GE and its finance arm may lose their top-level Aaa ratings as the global recession and credit crisis lessen the chance GE Capital can make a $5 billion profit goal this year, Moody’s Investors Service said.
Molex Inc. (MOLX:US) fell 5.9 percent to $13.15. The maker of electrical components for phones and computers said third- quarter sales may be as low as $500 million. Analysts estimated $616.9 million on average.
RF Micro Devices Inc. (RFMD:US) lost 13 percent to $1.06. The maker of chips for mobile phones predicted that fourth- quarter sales will decline “more than seasonally” due to weak demand for its products. The company suspended detailed quarterly forecasts, citing “uncertainty regarding customer demand.”
Sun Microsystems Inc. (JAVA:US) rose 6.3 percent to $4.24. The world’s fourth-largest maker of server computers reported an unexpected second-quarter profit after cutting jobs to cope with the recession.
VistaPrint Ltd. (VPRT:US) rose 23 percent to $20.01. The online provider of printing services forecast sales of at least $495 million in fiscal 2009. Analysts surveyed by Bloomberg projected an average of $492 million.
Yahoo! Inc. (YHOO:US) rose 4.9 percent to $11.90. The second-biggest search engine forecast first-quarter revenue of no less than $1.53 billion. That exceeded the average analyst estimate of $1.30 billion.
WTO Ruling Says China Must Bolster Its Copyright Law
Jan. 27 (Bloomberg) -- The World Trade Organization said China must destroy counterfeit software or movies that are confiscated by authorities and provide more legal protection to foreign products, in a ruling on a case brought by the U.S.
A WTO panel of judges yesterday sided with the U.S. in two of the three arguments in the complaint filed in 2007, while deciding that China doesn’t need to alter its laws that exempt small-scale counterfeiters from criminal prosecution.
“It’s a mixed victory for the United States,” said Lyle Vander Schaaf, a lawyer at Bryan Cave LLP in Washington.
At stake is an issue that has become one of the biggest irritants in the U.S.-China commercial relationship. Improvements in China’s protection of patents for products such as pharmaceuticals, auto parts and copyrights for movies and software might help American companies even more than changes its currency policies, many analysts say.
“Intellectual property protection and enforcement will become an even higher priority” for the Obama administration, Myron Brilliant, vice president of the U.S. Chamber of Commerce, said in an interview. “China has taken some steps, but IPR enforcement is not as strong as we would like it to be.”
Still, it’s not clear how much leverage the WTO ruling will give the U.S., because of the mixed decision, Vander Schaaf said.
Copyright Protection
The U.S. lawyers failed to convince the WTO that thresholds for criminal prosecution of those pirating copyrighted goods are so high they effectively allow sales on a commercial scale of illegal items. The issue of those thresholds had dominated complaints by the U.S. against China during the past four years.
China’s Ministry of Commerce said it “welcomed” the judges’ ruling on the threshold for criminal prosecution, while it “regretted” their decision to rule against the country on the two other issues relating to copyright protection and auctioning of counterfeit goods.
“China has always placed a high degree of importance to the protection of intellectual property,” spokesman Yao Jian said in a statement on the ministry’s Web site today. “We will continue to strengthen the work of copyright protection.”
Under WTO rules, both countries can appeal. If the decision is upheld, China must change those laws to conform to the judges’ ruling or the U.S. can ask for authority to retaliate against the Asian nation’s products.
Global Rules
China’s illegal copying of movies, music and software cost companies $3 billion in 2007 sales, according to an estimate by lobby groups representing Microsoft Corp.,Walt Disney Co., and Vivendi SA. The WTO complaint, brought in 2007, is the first by the U.S. against China for breaching intellectual property rights, and yesterday’s ruling is likely to help establish the global rules for patent and copyright protection.
Neil Turkewitz, executive vice president of the Recording Industry Association of America, said he hopes the decision “leads China and other WTO members to enhance their protection of intellectual property.”
A WTO panel of judges yesterday sided with the U.S. in two of the three arguments in the complaint filed in 2007, while deciding that China doesn’t need to alter its laws that exempt small-scale counterfeiters from criminal prosecution.
“It’s a mixed victory for the United States,” said Lyle Vander Schaaf, a lawyer at Bryan Cave LLP in Washington.
At stake is an issue that has become one of the biggest irritants in the U.S.-China commercial relationship. Improvements in China’s protection of patents for products such as pharmaceuticals, auto parts and copyrights for movies and software might help American companies even more than changes its currency policies, many analysts say.
“Intellectual property protection and enforcement will become an even higher priority” for the Obama administration, Myron Brilliant, vice president of the U.S. Chamber of Commerce, said in an interview. “China has taken some steps, but IPR enforcement is not as strong as we would like it to be.”
Still, it’s not clear how much leverage the WTO ruling will give the U.S., because of the mixed decision, Vander Schaaf said.
Copyright Protection
The U.S. lawyers failed to convince the WTO that thresholds for criminal prosecution of those pirating copyrighted goods are so high they effectively allow sales on a commercial scale of illegal items. The issue of those thresholds had dominated complaints by the U.S. against China during the past four years.
China’s Ministry of Commerce said it “welcomed” the judges’ ruling on the threshold for criminal prosecution, while it “regretted” their decision to rule against the country on the two other issues relating to copyright protection and auctioning of counterfeit goods.
“China has always placed a high degree of importance to the protection of intellectual property,” spokesman Yao Jian said in a statement on the ministry’s Web site today. “We will continue to strengthen the work of copyright protection.”
Under WTO rules, both countries can appeal. If the decision is upheld, China must change those laws to conform to the judges’ ruling or the U.S. can ask for authority to retaliate against the Asian nation’s products.
Global Rules
China’s illegal copying of movies, music and software cost companies $3 billion in 2007 sales, according to an estimate by lobby groups representing Microsoft Corp.,Walt Disney Co., and Vivendi SA. The WTO complaint, brought in 2007, is the first by the U.S. against China for breaching intellectual property rights, and yesterday’s ruling is likely to help establish the global rules for patent and copyright protection.
Neil Turkewitz, executive vice president of the Recording Industry Association of America, said he hopes the decision “leads China and other WTO members to enhance their protection of intellectual property.”
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