Wednesday, January 28, 2009
Daily Technical Report on 28 January 2009
The Egyptian Stock index CASE 30 gone up again today and reach 3,892 since the beginning of the session and close at 3,880 just at the resistance area at 3,880 for the second trading session in the raw , if the index continue the upward move will test the area of 4,075 then 4,228 , on the other hand if the index go down it will go for the next support at 3,686 then 3,404.
News
Hermes CEO :Excess cash in our balance sheet of $400 million 28 Jan 09 05:57 PM EFG-Hermes (HRHO), Egypt's largest investment bank by market value, has a solid balance sheet with capital in excess of $400 million and does not need Egyptian Satellites announces the end of buying back treasury stocks 28 Jan 09 02:32 PM Egyptian Satellites (EGSA) announced that the company finished buying back shares (treasury stocks). Naeem Holding announces the end of buying back treasury stocks 28 Jan 09 02:31 PM Naeem Holding (NAHO) announced that the period of buying back shares (treasury stocks) has ended. International Agricultural denies having intention to buy El Nasr 28 Jan 09 02:00 PM International Agricultural Products (IFAP)sent a release to EGX denying its intention to buy El Nasr for Manufacturing Agricultural Crops. Raya sales of mobile phones retreated by 20 % 28 Jan 09 01:35 PM A number of agents for the leading mobile phones companies monitored the sharp recession in sales of mobile devices by at least 25%, such a recession HSBC cuts Mobinil and Telecom Egypt price targets 28 Jan 09 01:15 PM HSBC revised its price targets on several telecom stocks in Egypt including the Egyptian Company for Mobile Services (EMOB), as it downgraded mobinil CMA approves tender offer to buy Alexandria Medical Services 28 Jan 09 11:50 AM CMA sent a release to EGX concerning the approval on the obligatory tender offer submitted from Gamal Abd Alfatah Abd Alrhman Hamada based on Chapter GMC denies any studies to establish a low-cost housing project 28 Jan 09 11:49 AM GMC for Industrial Commercial & Financial Investments (GMCI) sent a release to EGX denying an announcement published on a website stating that the com Holding Construction Company realizes profits of LE 240 million 27 Jan 09 04:19 PM The Holding Construction Company realized profits of LE 240 million versus losses of LE 35 million, while net profits of affiliated companies amounted Spinning and weaving holding company reports a net loss of LE 41 million 27 Jan 09 04:19 PM Results of the Holding Company for Spinning and Weaving were presented during the company's annual general meeting, chaired by the Minister of Investm
Tuesday, January 27, 2009
US STOCKS-Wall St rises as AmEx, other results reassure
AmEx, Texas Instruments offer encouraging results
* Data shows housing, consumer woes persist
* Dow up 0.7 pct; S&P 500 and Nasdaq each up 1 pct
* For up-to-the-minute market news, click [STXNEWS/US] (Updates to close, changes byline)
By Ellis Mnyandu
NEW YORK, Jan 27 (Reuters) - U.S. stocks climbed on Tuesday, with the S&P 500 and the Nasdaq up for a third straight day as a rare bit of encouraging news on the earnings front from companies, including American Express (AXP.N), offset fresh signs that consumers remain glum.
American Express jumped nearly 10 percent and gave the biggest boost to the Dow after the credit card company posted a quarterly profit that surpassed analysts' forecasts.
Chip maker Texas Instruments (TXN.N) , up 3.7 percent, gave the technology sector a welcome reprieve after its quarterly profit fell less than feared. The Philadelphia Semiconductor Index .SOXX rose 3.5 percent, capping its first three-day run-up of 2009.
Analysts said investors were beginning to look beyond some of the gloomy news amid hopes about efforts to stabilize the economy.
"You've had such a fierce down market that when the news flow is OK, you're getting some sort of bounces," said David Katz, chief investment officer at Matrix Asset Advisors in New York. "In terms of American Express, people had braced themselves for a disaster. Although the numbers were poor, they weren't a disaster."
The Dow Jones industrial average .DJI rose 58.70 points, or 0.72 percent, to 8,174.73. The Standard & Poor's 500 Index .SPX gained 9.14 points, or 1.09 percent, to 845.71. The Nasdaq Composite Index .IXIC advanced 15.44 points, or 1.04 percent, to 1,504.90.
After the closing bell, Moody's Investors Service said it may cut its top ratings on General Electric Co (GE.N) and its finance arm, citing increased uncertainty about outlook. The stock fell 4.6 percent to $12.46 in after-hours trading. [ID:nN27473071]
During the regular session, American Express shares rose 9.7 percent to $16.68. Shares of Citigroup (C.N) jumped 6.6 percent to $3.55 after its chief executive reiterated his plan to cut costs. [ID:nN27465219]
Financials by far contributed the greatest boost to the broader market, sending the S&P financial index .GSPF up 3.7 percent.
Worries about the financial sector's health have been the biggest hurdle for the market, fueling unease about stocks' performance in January, which is traditionally seen as a guide to the year's prospects.
Year to date, the benchmark S&P 500 .SPX is down 6.4 percent. After starting 2009 up more than 20 percent from its Nov. 21 bear-market low, the index is now up 12.4 percent
* Data shows housing, consumer woes persist
* Dow up 0.7 pct; S&P 500 and Nasdaq each up 1 pct
* For up-to-the-minute market news, click [STXNEWS/US] (Updates to close, changes byline)
By Ellis Mnyandu
NEW YORK, Jan 27 (Reuters) - U.S. stocks climbed on Tuesday, with the S&P 500 and the Nasdaq up for a third straight day as a rare bit of encouraging news on the earnings front from companies, including American Express (AXP.N), offset fresh signs that consumers remain glum.
American Express jumped nearly 10 percent and gave the biggest boost to the Dow after the credit card company posted a quarterly profit that surpassed analysts' forecasts.
Chip maker Texas Instruments (TXN.N) , up 3.7 percent, gave the technology sector a welcome reprieve after its quarterly profit fell less than feared. The Philadelphia Semiconductor Index .SOXX rose 3.5 percent, capping its first three-day run-up of 2009.
Analysts said investors were beginning to look beyond some of the gloomy news amid hopes about efforts to stabilize the economy.
"You've had such a fierce down market that when the news flow is OK, you're getting some sort of bounces," said David Katz, chief investment officer at Matrix Asset Advisors in New York. "In terms of American Express, people had braced themselves for a disaster. Although the numbers were poor, they weren't a disaster."
The Dow Jones industrial average .DJI rose 58.70 points, or 0.72 percent, to 8,174.73. The Standard & Poor's 500 Index .SPX gained 9.14 points, or 1.09 percent, to 845.71. The Nasdaq Composite Index .IXIC advanced 15.44 points, or 1.04 percent, to 1,504.90.
After the closing bell, Moody's Investors Service said it may cut its top ratings on General Electric Co (GE.N) and its finance arm, citing increased uncertainty about outlook. The stock fell 4.6 percent to $12.46 in after-hours trading. [ID:nN27473071]
During the regular session, American Express shares rose 9.7 percent to $16.68. Shares of Citigroup (C.N) jumped 6.6 percent to $3.55 after its chief executive reiterated his plan to cut costs. [ID:nN27465219]
Financials by far contributed the greatest boost to the broader market, sending the S&P financial index .GSPF up 3.7 percent.
Worries about the financial sector's health have been the biggest hurdle for the market, fueling unease about stocks' performance in January, which is traditionally seen as a guide to the year's prospects.
Year to date, the benchmark S&P 500 .SPX is down 6.4 percent. After starting 2009 up more than 20 percent from its Nov. 21 bear-market low, the index is now up 12.4 percent
CEO confidence plunges around the globe
By Ben Hirschler
DAVOS, Switzerland (Reuters) - Confidence among leaders of the world's top companies meeting in Davos has nosedived to a new low, with recession and a worsening credit crisis torpedoing faith in corporate prospects.
The findings from a poll of more than 1,100 CEOs sets a grim backdrop to a four-day meeting of the world's business and political elite which opens on Wednesday in the Swiss ski resort.
Bankers are thin on the ground this year but policymakers will work behind the scenes ahead of a summit of the G20 group of big and emerging countries in April and a G8 summit in July. Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao will both address the meeting later on Wednesday.
The annual PricewaterhouseCoopers (PwC) survey suggests the need for action is urgent, as a crisis that started in the banking system takes a growing toll on revenues, profits, expansion plans and jobs across all regions and industries.
Worldwide, just 21 percent of CEOs said they were very confident of growing revenue in the next 12 months, down from 50 percent a year ago.
And hopes for a short "V"-shaped recession appear to have evaporated with most business leaders expecting no more than a slow and gradual recovery over the next three years.
"The three-year view is a bit better but the bad news is it is not that much better. Compared to the 21 percent confidence over the next 12 months, it's only 34 percent over three years," said Tony Poulter, global head of consulting at PwC.
"The message is: there is a long term but we are not going to see it dawning immediately."
LEHMAN FALLOUT
Poulter said the situation had deteriorated significantly since September, following the collapse of Lehman Brothers and sale of Merrill Lynch.
Back in September, only 46 percent of business leaders interviewed thought the banking crisis would affect them but by December that had risen to 67 percent.
Worryingly, even this gloomy picture -- with confidence the lowest in the survey's seven-year history -- may be over-optimistic, given the slew of further bad news since it was completed in early December.
More than 70,000 job cuts were announced on Monday this week alone, with Caterpillar Inc axing 20,000 after the heavy equipment said it had "pretty much hit a wall in December."
In contrast to last year, corporations based in previously hot emerging markets were equally gloomy, a fact which PwC said had exposed the idea of the "decoupling" of developed and developing world markets as a myth.
The Washington-based Institute for International Finance, a grouping of the world's biggest banks, said on Tuesday it expects private capital flows to emerging markets to drop by nearly two-thirds to $165 billion this year
DAVOS, Switzerland (Reuters) - Confidence among leaders of the world's top companies meeting in Davos has nosedived to a new low, with recession and a worsening credit crisis torpedoing faith in corporate prospects.
The findings from a poll of more than 1,100 CEOs sets a grim backdrop to a four-day meeting of the world's business and political elite which opens on Wednesday in the Swiss ski resort.
Bankers are thin on the ground this year but policymakers will work behind the scenes ahead of a summit of the G20 group of big and emerging countries in April and a G8 summit in July. Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao will both address the meeting later on Wednesday.
The annual PricewaterhouseCoopers (PwC) survey suggests the need for action is urgent, as a crisis that started in the banking system takes a growing toll on revenues, profits, expansion plans and jobs across all regions and industries.
Worldwide, just 21 percent of CEOs said they were very confident of growing revenue in the next 12 months, down from 50 percent a year ago.
And hopes for a short "V"-shaped recession appear to have evaporated with most business leaders expecting no more than a slow and gradual recovery over the next three years.
"The three-year view is a bit better but the bad news is it is not that much better. Compared to the 21 percent confidence over the next 12 months, it's only 34 percent over three years," said Tony Poulter, global head of consulting at PwC.
"The message is: there is a long term but we are not going to see it dawning immediately."
LEHMAN FALLOUT
Poulter said the situation had deteriorated significantly since September, following the collapse of Lehman Brothers and sale of Merrill Lynch.
Back in September, only 46 percent of business leaders interviewed thought the banking crisis would affect them but by December that had risen to 67 percent.
Worryingly, even this gloomy picture -- with confidence the lowest in the survey's seven-year history -- may be over-optimistic, given the slew of further bad news since it was completed in early December.
More than 70,000 job cuts were announced on Monday this week alone, with Caterpillar Inc axing 20,000 after the heavy equipment said it had "pretty much hit a wall in December."
In contrast to last year, corporations based in previously hot emerging markets were equally gloomy, a fact which PwC said had exposed the idea of the "decoupling" of developed and developing world markets as a myth.
The Washington-based Institute for International Finance, a grouping of the world's biggest banks, said on Tuesday it expects private capital flows to emerging markets to drop by nearly two-thirds to $165 billion this year
Monday, January 26, 2009
reuters
TREASURIES-Longer maturities down ahead of auctions 9:26am EST
UPDATE 1-Moog Q1 profit beats Street; trims '09 rev view 9:23am EST
Caterpillar Finance's CDS widen 85 bps after earnings 9:22am EST
REFILE-FEATURE-U.S. Jews struggle to come to grips with Madoff 9:21am EST
US STOCKS-Higher open eyed on pharma M&A, GE rating view 9:20am EST
UPDATE 1-Rohm and Haas says Dow won't close deal by Jan 27 9:17am EST
TOPWRAP 2-Job cuts mount but banks help ease investor fears 9:16am EST
UPDATE 2-Smurfit-Stone files for Chapter 11 bankruptcy 9:15am EST
Bank of Canada sets minimum bid rate for term PRA 9:09am EST
UPDATE 1-Home Depot to cut 7,000 jobs, exit Expo business 9:08am EST
UPDATE 1-Goldman: Big US banks at risk of becoming new utilities 9:08am EST
REUTER MONEYGRAPH-IMF SDR RATES-Jan 26 US 1.49413 9:06am EST
UPDATE 1-Covidien profit excluding items tops forecasts 9:05am EST
Valero to shut Texas City refinery during 40-day work 9:05am EST
DIARY-Federal Reserve Events 9:05am EST
US STOCKS SNAPSHOT-Futures rebound after S&P comment on GE 9:02am EST
UPDATE 2-Copper miner Freeport-McMoRan reports qtly loss 9:02am EST
UPDATE 2-Sprint Nextel to cut up to 8,000 jobs, take charge 9:01am EST
CANADA STOCKS-Toronto index could follow oil to higher open 8:55am EST
UPDATE 2-Brazil posts 1st current acct deficit since 2002 8:53am EST
UPDATE 1-Tyson Foods posts loss, hurt by chicken 8:52am EST
UPDATE 1-WellCare expects "materially" lower '08 net income 8:52am EST
COLUMN-Failed bank regulation marks end of Basle II: John Kemp 8:51am EST
UPDATE 2-Kimberly-Clark sees '09 net hit by pension, currency 8:47am EST
UPDATE 1-Ecuador sees oil at $55 per barrel in 2009 8:41am EST
UPDATE 3-Wyeth ends Crucell talks before takeover by Pfizer 8:39am EST
Chicago Fed nat'l activity index plummets in Dec 8:30am EST
FOREX-Yen dips; euro, pound rise vs dlr as risk aversion ebbs 8:29am EST
UPDATE 2-Alberto Culver Q1 profit beats view; ups payout 8:27am EST
UPDATE 1-Tailwind Financial to buy Allen-Vanguard for $35 mln 8:25am EST
WRAPUP 1-Pfizer to buy Wyeth for $68 billion, cuts dividend 8:24am EST
Latest on the Reuters Global Investing blog 8:23am EST
Ecuador sees oil at $55 per barrel in 2009 8:22am EST
UPDATE 2-CAT net tumbles; massive job cuts slated 8:15am EST
UPDATE 1-McDonald's profit tops Wall Street view 8:13am EST
US STOCKS-Lower open seen as Caterpillar woes weigh 8:12am EST
UPDATE 1-Quest Diagnostics Q4 profit beats Street estimates 8:12am EST
RPT-PREVIEW-Fed focus turns to credit easing at policy meeting 8:10am EST
COLUMN-A new direction in global financial regulation: John Kemp 8:08am EST
UPDATE 1-ING Canada slips to loss on impairment 8:04am EST
UPDATE 1-Sealed Air 4th-quarter profit falls 8:04am EST
RPT-FEATURE-In Brazil's industrial hub, crisis starts to bite 8:04am EST
One term or two? U.S. economy is key, experts say 8:00am EST
California's 'train wreck' a golden opportunity? 8:00am EST
FACTBOX-Facts about U.S. foreign assistance 8:00am EST
RPT-FEATURE-U.S. retail cuts helped some inventory companies 8:00am EST
UPDATE 1-Czech FinMin mandates 3 banks for eurobond 7:59am EST
WRAPUP 1-Halliburton nears $559 million Nigeria settlement 7:58am EST
UPDATE 1-UK's Brown warns against financial protectionism 7:56am EST
SNAPSHOT - Financial Crisis - 1245 GMT 7:52am EST
US STOCKS SNAPSHOT-Futures lose ground on Caterpillar comments 7:50am EST
MOVES-Aegon, Baring Asset Management, GMT Communications 7:50am EST
US STOCKS SNAPSHOT-Futures lose ground on Caterpillar comments 7:49am EST
UPDATE 2-Eaton fourth-quarter profit tops estimates 7:48am EST
UPDATE 1-Applied Industrial Q2 profit falls; cuts FY09 outlook 7:46am EST
UPDATE 2-Danaher fourth-quarter profit tops estimates 7:37am EST
FACTBOX-Production cuts by major global steel firms 7:33am EST
UPDATE 3-Philips posts first loss since 03, axes 6,000 jobs 7:32am EST
UPDATE 1-Regions Financial may cut dividend by 90 pct - analyst 7:32am EST
PRESS DIGEST - Canada - Jan 26 7:31am EST
Czech FinMin mandates banks for eurobond 7:26am EST
UPDATE 2-Pfizer to buy Wyeth for $68 billion, cuts dividend 7:18am EST
PG&E Calif. Diablo Canyon 1 reactor shut-NRC 7:18am EST
GLOBAL MARKETS-Risk worries persist but European shares gain 7:16am EST
FACTBOX-Europe's fiscal stimulus plans 7:16am EST
FOREX-Euro, sterling trim losses as shares rise 7:11am EST
Financials push European stocks up, Barclays jumps 7:03am EST
Lending drops at big U.S. banks- WSJ 7:00am EST
Barclays profits letter boosts banks, lifts FTSE 6:52am EST
Crucell not seeking alternative buyer -source 6:52am EST
UPDATE 1-Pfizer net profit falls, hurt by charges 6:51am EST
UPDATE 1-PrivateBancorp posts wider-than-expected Q4 loss 6:47am EST
DIARY - MidEast/African holidays to December 2009 6:35am EST
DIARY - Asian Holiday Holidays to December 2009 6:34am EST
UPDATE 4-ING to take government guarantees,CEO steps down 6:25am EST
DIARY - European Market Holidays to December 2009 6:21am EST
METALS INSIDER: "…We are in the midst of crisis…" 6:19am EST
DIARY - Americas Market Holidays to December 2009 6:18am EST
TAKE-A-LOOK-World Economic Forum in Davos 6:16am EST
EADS shares up after signs of French govt support 6:08am EST
Deals of the day -- mergers and acquisitions 6:00am EST
German business star awaits sentence for tax dodge 5:59am EST
Europe shares extend gains, boosted by banks 5:45am EST
Ex-divs to take 0.06 points off FTSE 100 on Jan 28 5:43am EST
U.S. stock futures creep up; eyes on earnings 5:39am EST
UPDATE 2-Polo Resources says gets offer approach; shares up 5:07am EST
UPDATE 3-Barclays says not seeking capital after $11 bln hit 4:53am EST
Europe shares tick up as financials bounce 4:49am EST
REFILE-Repsol says finds 3 new gas fields in Algeria 4:38am EST
Brown falls in polls as UK economy enters recession 4:32am EST
FTSE higher as Barclays letter boosts banks 4:21am EST
UPDATE 6-Pfizer nears $68 bln deal to buy Wyeth - sources 4:13am EST
Coca-Cola seeks 50 pct stake in Japan bottler 4:11am EST
Kirin HD <2503.t>-2008 group forecast 4:08am EST
FACTBOX-Details of ING's government loan guarantee 4:08am EST
UPDATE 1-Intercytex to cut 50 pct jobs to stay afloat 4:07am EST
FOREX-Euro, pound pressured on econ, bank worries 4:05am EST
European stocks turn positive; ING, Barclays jump 3:41am EST
CORRECTED-Recession hits Silicon Valley as layoffs pile up 3:23am EST
Defensives lead Europe shares lower; Barclays jumps 3:15am EST
Hilton launches mid-market extended stay brand 3:01am EST
Satyam to look at funding options, L&T stake 2:55am EST
Market Chatter -- Corporate finance press digest 2:53am EST
Voestalpine eyes two railway buys in U.S. -paper 2:45am EST
Europe Factors-Shares set to fall on earnings concerns 2:43am EST
UPDATE 1-Barclays 2008 profit includes 8 bln stg write downs 2:41am EST
GLOBAL MARKETS-Japan stocks slip to 3-month low, dollar gains 2:20am EST
Long-dated JGBs gain, smooth auction expected 2:18am EST
Europe stock index futures hit by company earnings 2:12am EST
UK Stocks -- Factors to watch on Jan 26 2:00am EST
Nikkei at 3-mth closing low on earnings fear, yen 1:51am EST
FOREX-Dollar climbs vs sterling, euro on risk aversion 1:12am EST
Nikkei at 3-mth closing low on earnings fears, yen 1:11am EST
DIARY - Economic Indicators in Germany from January 27 1:01am EST
DIARY - European Central Bank (ECB) events to March 31 1:00am EST
DIARY - Today in Germany - January 26 1:00am EST
RPT-GLOBAL MARKETS WEEKAHEAD-Crisis talks on the slopes 1:00am EST
DIARY - Germany - to February 23 1:00am EST
CORRECTED - CORRECTED-UPDATE 3-ABInBev sells down Tsingtao stake to Asahi 12:39am EST
Bankruptcy fears grip U.S. auto-parts firms - WSJ 12:30am EST
PRESS DIGEST - New York Times business news - Jan 26 12:30am EST
UBS U.S. tax case widens, settlement talks on- WSJ 12:29am EST
PRESS DIGEST - Wall Street Journal - Jan 26 12:14am EST
UPDATE 1-Toyota sees 2009 global output down 20 pct-paper 12:13am EST
Nikkei edges up as Kyocera gains but earnings a worry 12:06am EST
Walgreen picks insider Wasson to be next CEO 12:01am EST
US business climate worst in 27 yrs, slump deepening-survey 12:01am EST
ADHD drugs can cause hallucinations in some kids 12:01am EST
DIARY - Belgium to March 31, 2009 12:00am EST
UPDATE 1-Moog Q1 profit beats Street; trims '09 rev view 9:23am EST
Caterpillar Finance's CDS widen 85 bps after earnings 9:22am EST
REFILE-FEATURE-U.S. Jews struggle to come to grips with Madoff 9:21am EST
US STOCKS-Higher open eyed on pharma M&A, GE rating view 9:20am EST
UPDATE 1-Rohm and Haas says Dow won't close deal by Jan 27 9:17am EST
TOPWRAP 2-Job cuts mount but banks help ease investor fears 9:16am EST
UPDATE 2-Smurfit-Stone files for Chapter 11 bankruptcy 9:15am EST
Bank of Canada sets minimum bid rate for term PRA 9:09am EST
UPDATE 1-Home Depot to cut 7,000 jobs, exit Expo business 9:08am EST
UPDATE 1-Goldman: Big US banks at risk of becoming new utilities 9:08am EST
REUTER MONEYGRAPH-IMF SDR RATES-Jan 26 US 1.49413 9:06am EST
UPDATE 1-Covidien profit excluding items tops forecasts 9:05am EST
Valero to shut Texas City refinery during 40-day work 9:05am EST
DIARY-Federal Reserve Events 9:05am EST
US STOCKS SNAPSHOT-Futures rebound after S&P comment on GE 9:02am EST
UPDATE 2-Copper miner Freeport-McMoRan reports qtly loss 9:02am EST
UPDATE 2-Sprint Nextel to cut up to 8,000 jobs, take charge 9:01am EST
CANADA STOCKS-Toronto index could follow oil to higher open 8:55am EST
UPDATE 2-Brazil posts 1st current acct deficit since 2002 8:53am EST
UPDATE 1-Tyson Foods posts loss, hurt by chicken 8:52am EST
UPDATE 1-WellCare expects "materially" lower '08 net income 8:52am EST
COLUMN-Failed bank regulation marks end of Basle II: John Kemp 8:51am EST
UPDATE 2-Kimberly-Clark sees '09 net hit by pension, currency 8:47am EST
UPDATE 1-Ecuador sees oil at $55 per barrel in 2009 8:41am EST
UPDATE 3-Wyeth ends Crucell talks before takeover by Pfizer 8:39am EST
Chicago Fed nat'l activity index plummets in Dec 8:30am EST
FOREX-Yen dips; euro, pound rise vs dlr as risk aversion ebbs 8:29am EST
UPDATE 2-Alberto Culver Q1 profit beats view; ups payout 8:27am EST
UPDATE 1-Tailwind Financial to buy Allen-Vanguard for $35 mln 8:25am EST
WRAPUP 1-Pfizer to buy Wyeth for $68 billion, cuts dividend 8:24am EST
Latest on the Reuters Global Investing blog 8:23am EST
Ecuador sees oil at $55 per barrel in 2009 8:22am EST
UPDATE 2-CAT net tumbles; massive job cuts slated 8:15am EST
UPDATE 1-McDonald's profit tops Wall Street view 8:13am EST
US STOCKS-Lower open seen as Caterpillar woes weigh 8:12am EST
UPDATE 1-Quest Diagnostics Q4 profit beats Street estimates 8:12am EST
RPT-PREVIEW-Fed focus turns to credit easing at policy meeting 8:10am EST
COLUMN-A new direction in global financial regulation: John Kemp 8:08am EST
UPDATE 1-ING Canada slips to loss on impairment 8:04am EST
UPDATE 1-Sealed Air 4th-quarter profit falls 8:04am EST
RPT-FEATURE-In Brazil's industrial hub, crisis starts to bite 8:04am EST
One term or two? U.S. economy is key, experts say 8:00am EST
California's 'train wreck' a golden opportunity? 8:00am EST
FACTBOX-Facts about U.S. foreign assistance 8:00am EST
RPT-FEATURE-U.S. retail cuts helped some inventory companies 8:00am EST
UPDATE 1-Czech FinMin mandates 3 banks for eurobond 7:59am EST
WRAPUP 1-Halliburton nears $559 million Nigeria settlement 7:58am EST
UPDATE 1-UK's Brown warns against financial protectionism 7:56am EST
SNAPSHOT - Financial Crisis - 1245 GMT 7:52am EST
US STOCKS SNAPSHOT-Futures lose ground on Caterpillar comments 7:50am EST
MOVES-Aegon, Baring Asset Management, GMT Communications 7:50am EST
US STOCKS SNAPSHOT-Futures lose ground on Caterpillar comments 7:49am EST
UPDATE 2-Eaton fourth-quarter profit tops estimates 7:48am EST
UPDATE 1-Applied Industrial Q2 profit falls; cuts FY09 outlook 7:46am EST
UPDATE 2-Danaher fourth-quarter profit tops estimates 7:37am EST
FACTBOX-Production cuts by major global steel firms 7:33am EST
UPDATE 3-Philips posts first loss since 03, axes 6,000 jobs 7:32am EST
UPDATE 1-Regions Financial may cut dividend by 90 pct - analyst 7:32am EST
PRESS DIGEST - Canada - Jan 26 7:31am EST
Czech FinMin mandates banks for eurobond 7:26am EST
UPDATE 2-Pfizer to buy Wyeth for $68 billion, cuts dividend 7:18am EST
PG&E Calif. Diablo Canyon 1 reactor shut-NRC 7:18am EST
GLOBAL MARKETS-Risk worries persist but European shares gain 7:16am EST
FACTBOX-Europe's fiscal stimulus plans 7:16am EST
FOREX-Euro, sterling trim losses as shares rise 7:11am EST
Financials push European stocks up, Barclays jumps 7:03am EST
Lending drops at big U.S. banks- WSJ 7:00am EST
Barclays profits letter boosts banks, lifts FTSE 6:52am EST
Crucell not seeking alternative buyer -source 6:52am EST
UPDATE 1-Pfizer net profit falls, hurt by charges 6:51am EST
UPDATE 1-PrivateBancorp posts wider-than-expected Q4 loss 6:47am EST
DIARY - MidEast/African holidays to December 2009 6:35am EST
DIARY - Asian Holiday Holidays to December 2009 6:34am EST
UPDATE 4-ING to take government guarantees,CEO steps down 6:25am EST
DIARY - European Market Holidays to December 2009 6:21am EST
METALS INSIDER: "…We are in the midst of crisis…" 6:19am EST
DIARY - Americas Market Holidays to December 2009 6:18am EST
TAKE-A-LOOK-World Economic Forum in Davos 6:16am EST
EADS shares up after signs of French govt support 6:08am EST
Deals of the day -- mergers and acquisitions 6:00am EST
German business star awaits sentence for tax dodge 5:59am EST
Europe shares extend gains, boosted by banks 5:45am EST
Ex-divs to take 0.06 points off FTSE 100 on Jan 28 5:43am EST
U.S. stock futures creep up; eyes on earnings 5:39am EST
UPDATE 2-Polo Resources says gets offer approach; shares up 5:07am EST
UPDATE 3-Barclays says not seeking capital after $11 bln hit 4:53am EST
Europe shares tick up as financials bounce 4:49am EST
REFILE-Repsol says finds 3 new gas fields in Algeria 4:38am EST
Brown falls in polls as UK economy enters recession 4:32am EST
FTSE higher as Barclays letter boosts banks 4:21am EST
UPDATE 6-Pfizer nears $68 bln deal to buy Wyeth - sources 4:13am EST
Coca-Cola seeks 50 pct stake in Japan bottler 4:11am EST
Kirin HD <2503.t>-2008 group forecast 4:08am EST
FACTBOX-Details of ING's government loan guarantee 4:08am EST
UPDATE 1-Intercytex to cut 50 pct jobs to stay afloat 4:07am EST
FOREX-Euro, pound pressured on econ, bank worries 4:05am EST
European stocks turn positive; ING, Barclays jump 3:41am EST
CORRECTED-Recession hits Silicon Valley as layoffs pile up 3:23am EST
Defensives lead Europe shares lower; Barclays jumps 3:15am EST
Hilton launches mid-market extended stay brand 3:01am EST
Satyam to look at funding options, L&T stake 2:55am EST
Market Chatter -- Corporate finance press digest 2:53am EST
Voestalpine eyes two railway buys in U.S. -paper 2:45am EST
Europe Factors-Shares set to fall on earnings concerns 2:43am EST
UPDATE 1-Barclays 2008 profit includes 8 bln stg write downs 2:41am EST
GLOBAL MARKETS-Japan stocks slip to 3-month low, dollar gains 2:20am EST
Long-dated JGBs gain, smooth auction expected 2:18am EST
Europe stock index futures hit by company earnings 2:12am EST
UK Stocks -- Factors to watch on Jan 26 2:00am EST
Nikkei at 3-mth closing low on earnings fear, yen 1:51am EST
FOREX-Dollar climbs vs sterling, euro on risk aversion 1:12am EST
Nikkei at 3-mth closing low on earnings fears, yen 1:11am EST
DIARY - Economic Indicators in Germany from January 27 1:01am EST
DIARY - European Central Bank (ECB) events to March 31 1:00am EST
DIARY - Today in Germany - January 26 1:00am EST
RPT-GLOBAL MARKETS WEEKAHEAD-Crisis talks on the slopes 1:00am EST
DIARY - Germany - to February 23 1:00am EST
CORRECTED - CORRECTED-UPDATE 3-ABInBev sells down Tsingtao stake to Asahi 12:39am EST
Bankruptcy fears grip U.S. auto-parts firms - WSJ 12:30am EST
PRESS DIGEST - New York Times business news - Jan 26 12:30am EST
UBS U.S. tax case widens, settlement talks on- WSJ 12:29am EST
PRESS DIGEST - Wall Street Journal - Jan 26 12:14am EST
UPDATE 1-Toyota sees 2009 global output down 20 pct-paper 12:13am EST
Nikkei edges up as Kyocera gains but earnings a worry 12:06am EST
Walgreen picks insider Wasson to be next CEO 12:01am EST
US business climate worst in 27 yrs, slump deepening-survey 12:01am EST
ADHD drugs can cause hallucinations in some kids 12:01am EST
DIARY - Belgium to March 31, 2009 12:00am EST
Oil rebounds towards $47, OPEC cuts support
LONDON (Reuters) - Oil rose toward $47 a barrel on Monday, reversing earlier losses of more a than a dollar on the perception that supply cuts by OPEC oil producers are beginning to put a floor under prices.
U.S. light crude for March delivery rose 33 cents to $46.80 a barrel by 1109 GMT. The contract rose $2.80, or 6.41 percent, to $46.47 a barrel on Friday, crowning a rebound in the front-month contract from below $33 a barrel a week ago.
London Brent crude rose 39 cents to $48.76 a barrel.
"The OPEC cuts are not sufficient to cause prices to move up, but they are enough to stabilize the market until demand begins to recover," Christopher Bellew, broker at Bache Commodities in London, said.
"Essentially the market is range-bound between $40 and $50, basis Brent," he said.
The main driver of a $2 rally in oil prices on Friday was evidence of OPEC making good on most of its pledged 2.2 million barrel a day (bpd) production cut this month.
Oil consultant Petrologistics estimated OPEC output would fall by 1.55 million barrels per day in January.
OPEC has pledged to cut output by a total of 4.2 million barrels per day since September to try to halt a more than $100 fall in oil prices since July.
These supply cuts are starting to have some impact, but the fragile state of the global economy and weak energy demand is preventing any sustained rally in the oil market.
An International Monetary Fund official said on Sunday the agency would cut its 2009 global growth forecast again, this time to between 1-1.5 percent from a previous estimate of 2.2 percent, as economic conditions deteriorate.
Oil demand is closely tied to economic growth and many economists now predict a fall in energy use this year as recession hits most of the large developed economies.
Crude oil speculators on the New York Mercantile Exchange trimmed new long positions in the week to January 20, according to U.S. Commodity Futures Trading Commission data.
(Reporting by Peg Mackey, Christopher Johnson and Jane Merriman in London and Fayen Wong in Perth; editing by Anthony Barker and Sue Thomas)
U.S. light crude for March delivery rose 33 cents to $46.80 a barrel by 1109 GMT. The contract rose $2.80, or 6.41 percent, to $46.47 a barrel on Friday, crowning a rebound in the front-month contract from below $33 a barrel a week ago.
London Brent crude rose 39 cents to $48.76 a barrel.
"The OPEC cuts are not sufficient to cause prices to move up, but they are enough to stabilize the market until demand begins to recover," Christopher Bellew, broker at Bache Commodities in London, said.
"Essentially the market is range-bound between $40 and $50, basis Brent," he said.
The main driver of a $2 rally in oil prices on Friday was evidence of OPEC making good on most of its pledged 2.2 million barrel a day (bpd) production cut this month.
Oil consultant Petrologistics estimated OPEC output would fall by 1.55 million barrels per day in January.
OPEC has pledged to cut output by a total of 4.2 million barrels per day since September to try to halt a more than $100 fall in oil prices since July.
These supply cuts are starting to have some impact, but the fragile state of the global economy and weak energy demand is preventing any sustained rally in the oil market.
An International Monetary Fund official said on Sunday the agency would cut its 2009 global growth forecast again, this time to between 1-1.5 percent from a previous estimate of 2.2 percent, as economic conditions deteriorate.
Oil demand is closely tied to economic growth and many economists now predict a fall in energy use this year as recession hits most of the large developed economies.
Crude oil speculators on the New York Mercantile Exchange trimmed new long positions in the week to January 20, according to U.S. Commodity Futures Trading Commission data.
(Reporting by Peg Mackey, Christopher Johnson and Jane Merriman in London and Fayen Wong in Perth; editing by Anthony Barker and Sue Thomas)
Financials push European stocks up, Barclays jumps
FRANKFURT, Jan 26 (Reuters) - European shares were higher at midday, led by financials after updates from Barclays (BARC.L) and ING (ING.AS) triggered a recovery in the battered sector on Monday.
At 1200 GMT, the FTSEurofirst 300 .FTEU3 index of leading European shares was up 1.2 percent at 769.68 points after falling in 12 of the past 13 sessions.
Barclays rocketed 56 percent after saying it did not need to raise fresh funds, and had seen a good start to 2009 with high customer activity.
ING rose 22 percent after saying it would tap into 22 billion euros ($28.5 billion) of Dutch state loan guarantees for its troubled loan portfolio, and that its chief executive was stepping down.
"The news about Barclays was certainly better than expected and, to a certain extent, supports sentiment in the market," said Heinz-Gerd Sonnenschein, equity strategist at Postbank in Bonn, Germany.
"It is good that banks come clean with their situation and that is rewarded. However, a general all-clear for the market cannot be given," he said.
BNP Paribas (BNPP.PA) rose 13 percent after it forecast a fourth-quarter loss of around 1.4 billion euros. Societe Generale (SOGN.PA) and Lloyds (LLOY.L) were up 9.4 and 21.5 percent, respectively.
The DJ Stoxx banks index .SX7P has lost 17.2 percent so far this year as fears about banks' funding situation returned.
Governments have launched huge stimulus packages and created rescue funds for banks to help limit the impact of a recession that has gripped some of the world's biggest economies.
Dutch electronics giant Philips Electronics (PHG.AS) rose 5.2 percent after posting its first quarterly loss since 2003 but saying it would accelerate its restructuring programme.
Across Europe, Britain's FTSE .FTSE was up 1.2 percent, while Germany's DAX .GDAXI and France's CAC .FCHI both rose 1.1 percent
At 1200 GMT, the FTSEurofirst 300 .FTEU3 index of leading European shares was up 1.2 percent at 769.68 points after falling in 12 of the past 13 sessions.
Barclays rocketed 56 percent after saying it did not need to raise fresh funds, and had seen a good start to 2009 with high customer activity.
ING rose 22 percent after saying it would tap into 22 billion euros ($28.5 billion) of Dutch state loan guarantees for its troubled loan portfolio, and that its chief executive was stepping down.
"The news about Barclays was certainly better than expected and, to a certain extent, supports sentiment in the market," said Heinz-Gerd Sonnenschein, equity strategist at Postbank in Bonn, Germany.
"It is good that banks come clean with their situation and that is rewarded. However, a general all-clear for the market cannot be given," he said.
BNP Paribas (BNPP.PA) rose 13 percent after it forecast a fourth-quarter loss of around 1.4 billion euros. Societe Generale (SOGN.PA) and Lloyds (LLOY.L) were up 9.4 and 21.5 percent, respectively.
The DJ Stoxx banks index .SX7P has lost 17.2 percent so far this year as fears about banks' funding situation returned.
Governments have launched huge stimulus packages and created rescue funds for banks to help limit the impact of a recession that has gripped some of the world's biggest economies.
Dutch electronics giant Philips Electronics (PHG.AS) rose 5.2 percent after posting its first quarterly loss since 2003 but saying it would accelerate its restructuring programme.
Across Europe, Britain's FTSE .FTSE was up 1.2 percent, while Germany's DAX .GDAXI and France's CAC .FCHI both rose 1.1 percent
U.S. stock futures creep up; eyes on earnings
U.S. stock index futures pointed to a flat to slightly higher open on Wall Street on Monday, as investors braced for monthly housing data and a flurry of corporate results. * At 1017 GMT, futures for the S&P 500 SPc1 were flat, Dow Jones DJc1 futures were up 0.3 percent and Nasdaq 100 NDc1 futures were up 0.1 percent.
* Economic indicators on tap for Monday include a report on existing home sales from the National Association of Realtors, while on the earnings front, nearly 30 big companies will report earnings, including American Express Co (AXP.N), Caterpillar Inc (CAT.N) and McDonald's Corp (MCD.N). * President Barack Obama's top economic adviser would not rule out on Sunday that more money may be needed to stabilize the U.S. financial system as a deep recession increases banks' losses. Lawrence Summers, head of the National Economic Council, also said there was no question that tax cuts passed under former President George W. Bush needed to be repealed, though he would not be pinned down on exactly when. [ID:nN25339491] * Pfizer Inc (PFE.N), the No.1 drugmaker, was close to a $68 billion purchase of U.S. rival Wyeth (WYE.N) in a move to diversify its revenue base, sources familiar with the situation said. The boards of the U.S. rivals held separate meetings on Sunday to finalize an agreement and an announcement was seen as imminent, said three sources with direct knowledge of the talks.
* The International Monetary Fund will cut its 2009 global growth forecast again, this time to between 1 percent and 1.5 percent, as economic conditions deteriorate further, an IMF official said on Sunday. "It will be revised to 1 to 1.5 percent in 2009, which is huge," Axel Bertuch-Samuels, deputy director of the IMF's monetary and capital markets department, told Reuters on the sidelines of a conference in the United Arab Emirates.
* Chrysler LLC on Sunday urged its U.S. dealers to slash costs and order more of its vehicles as the automaker races to restructure in order to secure additional government aid.
* Toyota Motor (7203.T) expects to produce 6.5 million vehicles globally on a parent company basis this year, down more than 20 percent from an estimated 8.2 million last year, the Chunichi newspaper reported.
* Visteon Corp (VC.N), one of Ford Motor Co's (F.N) biggest parts suppliers, has hired legal and financial advisers to prepare for possible bankruptcy proceedings, the Wall Street Journal reported, quoting people familiar with the matter.
* Smurfit-Stone Container Corp (SSCC.O), a major corrugated packaging maker, said its U.S. and Canadian operations filed for chapter 11 bankruptcy protection to restructure its debt. * Boeing Co (BA.N) will be in focus after a source said on Sunday the French state plans to inject 5 billion euros ($6.5 billion) into banks with the aim of financing airplane purchases to help European planemaker Airbus (EAD.PA). [ID:nLP55915]
* In Europe, Philips Electronics (PHG.AS) (PHG.N) swung to a fourth quarter net loss and said it would cut 6,000 jobs [ID:nLQ757333], while Dutch financial group ING (ING.AS) revealed plans for 7,000 job losses as it took a 2008 loss of 1 billion euros ($1.3 billion) and tapped into 22 billion euros of Dutch state loan guarantees. [ID:nLQ108896] (Reporting by Blaise Robinson; Editing by Hans Peters)
* Economic indicators on tap for Monday include a report on existing home sales from the National Association of Realtors, while on the earnings front, nearly 30 big companies will report earnings, including American Express Co (AXP.N), Caterpillar Inc (CAT.N) and McDonald's Corp (MCD.N). * President Barack Obama's top economic adviser would not rule out on Sunday that more money may be needed to stabilize the U.S. financial system as a deep recession increases banks' losses. Lawrence Summers, head of the National Economic Council, also said there was no question that tax cuts passed under former President George W. Bush needed to be repealed, though he would not be pinned down on exactly when. [ID:nN25339491] * Pfizer Inc (PFE.N), the No.1 drugmaker, was close to a $68 billion purchase of U.S. rival Wyeth (WYE.N) in a move to diversify its revenue base, sources familiar with the situation said. The boards of the U.S. rivals held separate meetings on Sunday to finalize an agreement and an announcement was seen as imminent, said three sources with direct knowledge of the talks.
* The International Monetary Fund will cut its 2009 global growth forecast again, this time to between 1 percent and 1.5 percent, as economic conditions deteriorate further, an IMF official said on Sunday. "It will be revised to 1 to 1.5 percent in 2009, which is huge," Axel Bertuch-Samuels, deputy director of the IMF's monetary and capital markets department, told Reuters on the sidelines of a conference in the United Arab Emirates.
* Chrysler LLC on Sunday urged its U.S. dealers to slash costs and order more of its vehicles as the automaker races to restructure in order to secure additional government aid.
* Toyota Motor (7203.T) expects to produce 6.5 million vehicles globally on a parent company basis this year, down more than 20 percent from an estimated 8.2 million last year, the Chunichi newspaper reported.
* Visteon Corp (VC.N), one of Ford Motor Co's (F.N) biggest parts suppliers, has hired legal and financial advisers to prepare for possible bankruptcy proceedings, the Wall Street Journal reported, quoting people familiar with the matter.
* Smurfit-Stone Container Corp (SSCC.O), a major corrugated packaging maker, said its U.S. and Canadian operations filed for chapter 11 bankruptcy protection to restructure its debt. * Boeing Co (BA.N) will be in focus after a source said on Sunday the French state plans to inject 5 billion euros ($6.5 billion) into banks with the aim of financing airplane purchases to help European planemaker Airbus (EAD.PA). [ID:nLP55915]
* In Europe, Philips Electronics (PHG.AS) (PHG.N) swung to a fourth quarter net loss and said it would cut 6,000 jobs [ID:nLQ757333], while Dutch financial group ING (ING.AS) revealed plans for 7,000 job losses as it took a 2008 loss of 1 billion euros ($1.3 billion) and tapped into 22 billion euros of Dutch state loan guarantees. [ID:nLQ108896] (Reporting by Blaise Robinson; Editing by Hans Peters)
Gold inched down to hover around $890, pausing from a rally late last week
By Miho Yoshikawa
TOKYO (Reuters) - Gold inched down to hover around $890, pausing from a rally late last week when it rose 5 percent on strong investment demand that is seen intact amid signs that the economic downturn will persist.
By 0436 GMT, spot gold was down nearly 1 percent at $890.60 an ounce against New York's notional close of $898.10.
On Friday, the precious metal reached record highs in both sterling and euro terms, signaling bullion's strength against not only the U.S. dollar, but currencies across the board.
"Gold is again attracting attention as a safe-haven and a good place to place your money," said Koji Suzuki, a senior analyst at SBI Futures Co Ltd.
One sign of this came in news that the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, which rose to a new record of 832.57 tonnes of gold by January 23, was up 13.46 tonnes from 819.11 tonnes on January 22.
For details of gold holdings by the ETF listed in New York and also co-listed on other exchanges, click on:
http://www.exchangetradedgold.com/iframes/usa.php
Changes in gold ETF holdings are closely watched by market participants because sharp inflows in gold ETFs could be a bullish signal as it shows longer-term retail investors are entering the market.
Activity in Asia was subdued, however, as many financial markets were closed on Monday to mark the Lunar New Year holiday, including China's stock, money and foreign exchange markets.
In one of the latest comments on the U.S. economy, President Barack Obama's top economic adviser, Lawrence Summers, would not rule out on Sunday the chance that more money may be needed to stabilize the U.S. financial system as the deep recession swells banks' losses.
U.S. gold futures for February delivery inched down to $891.7 yen per ounce from $895.80, its settlement on Friday on the COMEX division of the New York Mercantile Exchange.
Oil fell on Monday, cutting into a 14 percent three-day gain as traders set aside the latest evidence of OPEC's production cuts to focus on forecasts for a deepening global economic downturn and the stronger dollar.
The dollar stayed close to a 23-year high against the sterling and a six-week high versus the euro both reached late last week, when dismal British and euro zone data led investors to shift money from European currencies to the greenback.
The euro slid 0.6 percent to $1.2896, while sterling fell 1.3 percent versus the dollar to $1.3623.
Gold's strong performance last week helped boost the benchmark December contract on the Tokyo Commodity Exchange, which rose as high as 2,565 yen per gram, up 132 yen or over 5 percent, before drifting down to 2,562 yen at 0345 GMT. Continued...
TOKYO (Reuters) - Gold inched down to hover around $890, pausing from a rally late last week when it rose 5 percent on strong investment demand that is seen intact amid signs that the economic downturn will persist.
By 0436 GMT, spot gold was down nearly 1 percent at $890.60 an ounce against New York's notional close of $898.10.
On Friday, the precious metal reached record highs in both sterling and euro terms, signaling bullion's strength against not only the U.S. dollar, but currencies across the board.
"Gold is again attracting attention as a safe-haven and a good place to place your money," said Koji Suzuki, a senior analyst at SBI Futures Co Ltd.
One sign of this came in news that the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, which rose to a new record of 832.57 tonnes of gold by January 23, was up 13.46 tonnes from 819.11 tonnes on January 22.
For details of gold holdings by the ETF listed in New York and also co-listed on other exchanges, click on:
http://www.exchangetradedgold.com/iframes/usa.php
Changes in gold ETF holdings are closely watched by market participants because sharp inflows in gold ETFs could be a bullish signal as it shows longer-term retail investors are entering the market.
Activity in Asia was subdued, however, as many financial markets were closed on Monday to mark the Lunar New Year holiday, including China's stock, money and foreign exchange markets.
In one of the latest comments on the U.S. economy, President Barack Obama's top economic adviser, Lawrence Summers, would not rule out on Sunday the chance that more money may be needed to stabilize the U.S. financial system as the deep recession swells banks' losses.
U.S. gold futures for February delivery inched down to $891.7 yen per ounce from $895.80, its settlement on Friday on the COMEX division of the New York Mercantile Exchange.
Oil fell on Monday, cutting into a 14 percent three-day gain as traders set aside the latest evidence of OPEC's production cuts to focus on forecasts for a deepening global economic downturn and the stronger dollar.
The dollar stayed close to a 23-year high against the sterling and a six-week high versus the euro both reached late last week, when dismal British and euro zone data led investors to shift money from European currencies to the greenback.
The euro slid 0.6 percent to $1.2896, while sterling fell 1.3 percent versus the dollar to $1.3623.
Gold's strong performance last week helped boost the benchmark December contract on the Tokyo Commodity Exchange, which rose as high as 2,565 yen per gram, up 132 yen or over 5 percent, before drifting down to 2,562 yen at 0345 GMT. Continued...
News in brief
News in briefBy Compiled by Daily New EgyptFirst Published:
Egypt puts import fee on sugar
The Egyptian government has imposed a duty of LE 500 ($90) a ton on imports of white sugar to protect the local sugar industry, Trade and Industry Minister Rachid Mohamed Rachid said on Thursday. –Reuters
Cement prices at LE 500
Cement prices are up almost 20 percent to around LE 500 per ton for a second week, Al-Mal financial newspaper reported on Sunday. Additionally, 20,000 tons of imported steel has been released from the ports. –Reuters
Alcotexa sells 280 T of cotton in a week
The Alexandria Cotton Exporters' Association (Alcotexa) said on Sunday it had committed to sell 280 tons of cotton in the week ended Jan. 24. An Alcotexa statement broke down the sales as 165 tons of Giza 88 and 115 tons of Giza 86.
The new commitment brings Alcotexa's export commitments for the season 2008/2009, which began in September, to 11,551 tons of cotton worth $30.8 million, the statement said. –Reuters
LE 400 mln go to domestic trade body
Trade Minister Rachid Mohamed Rachid said that the government allocated LE 400 million to the domestic trade body in order to develop local trade and improve the quality of specialized markets. –Al-Akhbar
Banks lend LE 5 billion to various sectors
A number of banks lent LE 5 billion to various sectors, including oil, real estate and financial services. The National Bank of Egypt alone lent LE 4 billion to finance a real estate project in Sixth of October City. –Al-Alam Al-Youm
Al Yasmeen Residence in last phase of construction
Mena for Touristic and Real Estate Investments has started the construction works of the last phase on its project Al Yasmeen Residence in Sudan. The project is comprised of 500 villas and has total investments of around LE 700 million. The company will not replicate the project’s model in Sudan again. –Al-Mal
Egypt, Britain partner on vocational education
A memorandum of understanding was signed Sunday between Egypt's National Authority for Quality Assurance and Accreditation of Education (NAQAAE) and Britain's Technical and Vocational Education and Training (TVET UK). NAQAAE chairman Magdi Qassem said the MOU aims to draw up an integrated system for quality assurance and accreditation of technical education in Egypt.
The proposed system is applied in all European countries, including the United Kingdom, in addition to the United States, he added. The system allows students to use their skills and raise their vocational awareness, he said. Qassem said that the system also helps cut down the vocational education fees. –MENA
Oil workers donate full day's wage for Gazans
Egypt's oil workers have donated a full day's wage to Palestinians in Gaza.
Mohamed Mahmoud Saafan, secretary general of the Oil Workers Syndicate, told MENA Sunday that the donation shows Egypt's support for the Palestinians.
He said that the workers have also showed willingness to donate LE 1 million to help cover the education fees of 100 Gazan students, who lost their parents in the Israeli assaults.
The Egyptian Oil Sector has also agreed to treat 100 wounded Gazans at the sector's medical centers, he added. Saafan said that the workers have also called for joining hands in supporting President Hosni Mubarak's efforts to solve the Gaza crisis, rebuild the strip and heal the Palestinian rift. –MENA
Ready-made garments sales, petrochemical exports down
Sales of ready-made garments in Egypt declined by 70 percent year-on-year this month due to the economic slowdown, reported Bloomberg.
In other news, Egypt's petrochemicals exports may decline 40 percent year-on-year this year due to the global financial crisis. Exports have already decreased by 30 percent in the past two months. –Bloomberg
Eye on the market
Akil Bashir, chairman of Telecom Egypt, announced that the fixed line subscribers in Egypt reached 11.9 million subscribers in fiscal year 2008, reported Mubasher.
The Holding Company for Food Industries announced that it will spend LE 4.4 billion on developing its subsidiaries and establishing new production lines to increase their capacities. This amount will be financed through the Holding Company's internal sources and by external banks. The new investments include the construction of a factory to produce beet sugar this year, reported Al-Akhbar.
Faisal Islamic Bank scored LE 600 million increase in the Owner Equity in fiscal year 2008 from the levels of the previous year at LE 680 million. Also, deposits grew by 9 percent to LE 21.5 billion, reported Al-Mal.
Pyramisa Hotels And Touristic Villages will establish two real estate projects in Sixth of October City with total area of 50 feddans and total investment cost of LE 300 million. The second project is targeted at the lower end, reported Mubasher.
The Holding Company for Pharmaceuticals reported its financial results for fiscal year 2007/08, recording a net profit of LE 564 million against LE 516 million the previous year, reported Al-Mal.
The General Committee for Agricultural Construction and Development Projects offered 24,700 feddans for agricultural investments after completing its infrastructure. The offered plots of land lie in the eastern lakes in Sinai, Toshka wells, eastern Suez, El Hamam and El Dabaa in Matruh and Kastel and Adnedaya in Aswan, reported Mist News.
The Holding Company for Chemical Industries approved in the last general assembly meeting the investments in El Nahda Cement and Sodium Carbonate Production with total investment cost of LE 2.8 billion, according to Al-Akhbar.
Egypt puts import fee on sugar
The Egyptian government has imposed a duty of LE 500 ($90) a ton on imports of white sugar to protect the local sugar industry, Trade and Industry Minister Rachid Mohamed Rachid said on Thursday. –Reuters
Cement prices at LE 500
Cement prices are up almost 20 percent to around LE 500 per ton for a second week, Al-Mal financial newspaper reported on Sunday. Additionally, 20,000 tons of imported steel has been released from the ports. –Reuters
Alcotexa sells 280 T of cotton in a week
The Alexandria Cotton Exporters' Association (Alcotexa) said on Sunday it had committed to sell 280 tons of cotton in the week ended Jan. 24. An Alcotexa statement broke down the sales as 165 tons of Giza 88 and 115 tons of Giza 86.
The new commitment brings Alcotexa's export commitments for the season 2008/2009, which began in September, to 11,551 tons of cotton worth $30.8 million, the statement said. –Reuters
LE 400 mln go to domestic trade body
Trade Minister Rachid Mohamed Rachid said that the government allocated LE 400 million to the domestic trade body in order to develop local trade and improve the quality of specialized markets. –Al-Akhbar
Banks lend LE 5 billion to various sectors
A number of banks lent LE 5 billion to various sectors, including oil, real estate and financial services. The National Bank of Egypt alone lent LE 4 billion to finance a real estate project in Sixth of October City. –Al-Alam Al-Youm
Al Yasmeen Residence in last phase of construction
Mena for Touristic and Real Estate Investments has started the construction works of the last phase on its project Al Yasmeen Residence in Sudan. The project is comprised of 500 villas and has total investments of around LE 700 million. The company will not replicate the project’s model in Sudan again. –Al-Mal
Egypt, Britain partner on vocational education
A memorandum of understanding was signed Sunday between Egypt's National Authority for Quality Assurance and Accreditation of Education (NAQAAE) and Britain's Technical and Vocational Education and Training (TVET UK). NAQAAE chairman Magdi Qassem said the MOU aims to draw up an integrated system for quality assurance and accreditation of technical education in Egypt.
The proposed system is applied in all European countries, including the United Kingdom, in addition to the United States, he added. The system allows students to use their skills and raise their vocational awareness, he said. Qassem said that the system also helps cut down the vocational education fees. –MENA
Oil workers donate full day's wage for Gazans
Egypt's oil workers have donated a full day's wage to Palestinians in Gaza.
Mohamed Mahmoud Saafan, secretary general of the Oil Workers Syndicate, told MENA Sunday that the donation shows Egypt's support for the Palestinians.
He said that the workers have also showed willingness to donate LE 1 million to help cover the education fees of 100 Gazan students, who lost their parents in the Israeli assaults.
The Egyptian Oil Sector has also agreed to treat 100 wounded Gazans at the sector's medical centers, he added. Saafan said that the workers have also called for joining hands in supporting President Hosni Mubarak's efforts to solve the Gaza crisis, rebuild the strip and heal the Palestinian rift. –MENA
Ready-made garments sales, petrochemical exports down
Sales of ready-made garments in Egypt declined by 70 percent year-on-year this month due to the economic slowdown, reported Bloomberg.
In other news, Egypt's petrochemicals exports may decline 40 percent year-on-year this year due to the global financial crisis. Exports have already decreased by 30 percent in the past two months. –Bloomberg
Eye on the market
Akil Bashir, chairman of Telecom Egypt, announced that the fixed line subscribers in Egypt reached 11.9 million subscribers in fiscal year 2008, reported Mubasher.
The Holding Company for Food Industries announced that it will spend LE 4.4 billion on developing its subsidiaries and establishing new production lines to increase their capacities. This amount will be financed through the Holding Company's internal sources and by external banks. The new investments include the construction of a factory to produce beet sugar this year, reported Al-Akhbar.
Faisal Islamic Bank scored LE 600 million increase in the Owner Equity in fiscal year 2008 from the levels of the previous year at LE 680 million. Also, deposits grew by 9 percent to LE 21.5 billion, reported Al-Mal.
Pyramisa Hotels And Touristic Villages will establish two real estate projects in Sixth of October City with total area of 50 feddans and total investment cost of LE 300 million. The second project is targeted at the lower end, reported Mubasher.
The Holding Company for Pharmaceuticals reported its financial results for fiscal year 2007/08, recording a net profit of LE 564 million against LE 516 million the previous year, reported Al-Mal.
The General Committee for Agricultural Construction and Development Projects offered 24,700 feddans for agricultural investments after completing its infrastructure. The offered plots of land lie in the eastern lakes in Sinai, Toshka wells, eastern Suez, El Hamam and El Dabaa in Matruh and Kastel and Adnedaya in Aswan, reported Mist News.
The Holding Company for Chemical Industries approved in the last general assembly meeting the investments in El Nahda Cement and Sodium Carbonate Production with total investment cost of LE 2.8 billion, according to Al-Akhbar.
All quiet in DavosBy Richard Quest First Published: January 25, 2009
All quiet in DavosBy Richard Quest First Published: January 25, 2009
Richard Quest.
I like to arrive in Davos a few days before the World Economic Forum begins when I can experience the picturesque Swiss town without the thousands of delegates. During the Davos week, getting a hotel room here is impossible. Many stay in apartments, or worse, in nearby towns (oh the shame of it!)
This year I made a bit of Quest Personal History (QPH)! I am so early I am the only person staying in my hotel. The existing guests checked out (a group of German skiers) and the manager asked me what time I wanted him to come in to make my breakfast, since I am the only person here.
In all my years of travel for CNN Business Traveler, I have stayed in big hotels, small hotels, grand hotels, shocking hotels…but I have never been the ONLY guest staying in a hotel. By this evening, other early birders will have arrived and I shall have to ‘share’ my hotel!
In the days ahead I shall write about the issues at Davos. Until then I shall enjoy another moment of QPH…today I will ski!
I know of no real research into this; but delegates always ask each other, “have you ever actually skied during Davos?” The answer is usually long and rambling about why best intentions have been thwarted; panels, meetings, lunches “got in the way.”
This year I will get up the mountain, then when the question is asked I can be very smug and say “of course I have skied, oh, and I even had the hotel to myself!”
Hotels and skiing…this is indeed going to be an historic Davos meeting!
Tune in to CNN International each evening at 1900 GMT to catch Richard’s new show, “Quest Means Business.”
For more information on Davos please visit www.cnn.com/davos
Richard Quest.
I like to arrive in Davos a few days before the World Economic Forum begins when I can experience the picturesque Swiss town without the thousands of delegates. During the Davos week, getting a hotel room here is impossible. Many stay in apartments, or worse, in nearby towns (oh the shame of it!)
This year I made a bit of Quest Personal History (QPH)! I am so early I am the only person staying in my hotel. The existing guests checked out (a group of German skiers) and the manager asked me what time I wanted him to come in to make my breakfast, since I am the only person here.
In all my years of travel for CNN Business Traveler, I have stayed in big hotels, small hotels, grand hotels, shocking hotels…but I have never been the ONLY guest staying in a hotel. By this evening, other early birders will have arrived and I shall have to ‘share’ my hotel!
In the days ahead I shall write about the issues at Davos. Until then I shall enjoy another moment of QPH…today I will ski!
I know of no real research into this; but delegates always ask each other, “have you ever actually skied during Davos?” The answer is usually long and rambling about why best intentions have been thwarted; panels, meetings, lunches “got in the way.”
This year I will get up the mountain, then when the question is asked I can be very smug and say “of course I have skied, oh, and I even had the hotel to myself!”
Hotels and skiing…this is indeed going to be an historic Davos meeting!
Tune in to CNN International each evening at 1900 GMT to catch Richard’s new show, “Quest Means Business.”
For more information on Davos please visit www.cnn.com/davos
should focus on long-term gains, says expertBy Menna TaherFirst
should focus on long-term gains, says expertBy Menna TaherFirst Published: January 25, 2009
CAIRO: As marketing tools progress, companies try to find innovative ways to attract costumers. From buy-one-get-one-free offers to seasonal discounts, companies are always vying for consumers' attention.
Although advertisements influence consumer choices, giveaways and promotions are another key tactic. Vodafone, Mobinil and Etisalat, for example, are constantly announcing new promotions in the competitive battle between mobile operators.
Holidays, when a flurry of text messages are being sent back and forth, are high time for special offers. This past New Year's, Vodafone offered a 25-50 percent discount on all international calls.
Mobinil’s Twinkle offer, for example, gives parents using the Star line free unlimited calls to their children. Along with the offer is a mobile designed for kids with special features such as two special call buttons: one for mom and another for dad.
Another campaign that has been the talk of the town is C&CO's PercentAGE campaign, where customers get a percent discount based on their age. For once, the older you are the better.
Ahmed Ragab, commercial director and managing partner of C&Co., said he got the idea from a store in France. The objective of the campaign is to reach out to potential older customers.
Most companies offer promotions when they are overstocked, he said, but "our philosophy is different: It is not supplier-oriented but consumer-based."
According to Ragab, the sales pitch has been effective. "It gained 150 percent over expectation and enabled the company to acquire a [significant] market share.”
The people behind the idea thought younger customers would bring in their parents and even grandparents to get a bigger discount. Moreover, because they employed a strategy new to Egypt’s market, they gained much from word-of-mouth advertising.
Some younger customers reportedly approached random older people on the street and asked if they’d pretend to be relatives. "One man brought his dead grandmother's ID," said Ragab, "but in order to use the offer, the ID carrier should be present."
However, it's not always easy or effective for company's to offer promotions.
"Promotions should be done carefully," said Ahmed Tolba, an AUC marketing professor. "Companies might use promotions at the early stages to drive trial, then use them occasionally to excite consumers, but avoid over-using them to protect brand image," he added.
Ola Bakeer, who has been working in marketing since 1995, said that "when marketing a product, research has to be conducted by the marketing group and the ideas for different campaigns are gathered.
"It is also important to study the competitor, and how they market their product. After that one has to search for possible outlets to display an item.”
If you’re marketing a laundry detergent, for instance, companies should partner with supermarkets to display their product in the storefront.
Another key is the target audience. "When marketing for medical products, doctors and pharmacist are targeted, while marketing for beauty products, one would offer giveaways to beauty salons," Bakeer said.
One idea Bakeer and her team came up with is to offer flavored bonbons with children's medicine so kids can start to like the taste of medicine.
It’s also always fun — and effective — to engage consumers in a competition. Mountain Dew campaign in the summer of 2006 had a team driving around Cairo’s streets in Mini Coopers, giving passersby's holding cans of Mountain Dew gifts or money.
At the time of the campaign, it was common to spot a group of people putting their cans of Mountain Dew on display. However, when the campaign ended, most of those who drank six bottles a day stopped or cut their consumption short.
"Marketing is all about long-terms gains," Tolba said. "It is important that you keep satisfying your customers to drive loyalty and ensure long-term sales and profits."
Ghabbour extends drop on profit fears, Egypt index downBy ReutersFirst
Ghabbour extends drop on profit fears, Egypt index downBy ReutersFirst Published: January 25, 2009
CAIRO: Shares of Ghabbour Auto, Egypt's largest car maker by market value, posted their second largest daily fall in two months on Sunday, weighing on Egypt's market, on fears profits could slow.
Shares of the company, which said last year its profit growth could ease as Egypt's economy weakens, shed 6.14 percent to LE 13 ($2.34). It was the tenth straight session of declines for the stock, which has fallen 16.31 percent this year to Thursday's close.
The firm said in November it would not likely continue to match the 88 percent growth in net profit it posted in the third quarter as a worsening economy hits car sales.
"The automotive industry in the world is facing a lot of problems, so this normally has an effect on Ghabbour," said Karim Hosny, trader at Pharos Securities.
Shares of Orascom Construction Industries, Egypt's largest builder by market value, shed 5.42 percent to LE 101.40, extending declines to a fourteenth straight session.
Orascom Construction shares have dropped 23.62 percent this year to Thursday's close, the third worst performers this year on the CASE 30 index.
Shares of Orascom Telecom, the largest Arab mobile operator by market value, shed 8.53 percent to LE 21.23. Down 23.80 percent this year to Thursday's close, they are the second-worst performers on the index.
Shares of both firms were falling to match declines in their global depositary receipts, traded in London, late Thursday and Friday, when Egypt's local bourse was closed, traders said.
"Some investors who want to short Egypt's market have no other means of doing so then selling Orascom Construction and Orascom Telecom, which are the most actively traded," he says. "Some people anticipate the market will go down further."
The CASE 30 index fell 4.38 percent to 3,643.34 points, its thirteenth session of declines. The Hermes index dropped 3.64 percent to 355.60 points and the broader CIBC index shed 2.96 percent to 265.1 points. –Reuters
CAIRO: Shares of Ghabbour Auto, Egypt's largest car maker by market value, posted their second largest daily fall in two months on Sunday, weighing on Egypt's market, on fears profits could slow.
Shares of the company, which said last year its profit growth could ease as Egypt's economy weakens, shed 6.14 percent to LE 13 ($2.34). It was the tenth straight session of declines for the stock, which has fallen 16.31 percent this year to Thursday's close.
The firm said in November it would not likely continue to match the 88 percent growth in net profit it posted in the third quarter as a worsening economy hits car sales.
"The automotive industry in the world is facing a lot of problems, so this normally has an effect on Ghabbour," said Karim Hosny, trader at Pharos Securities.
Shares of Orascom Construction Industries, Egypt's largest builder by market value, shed 5.42 percent to LE 101.40, extending declines to a fourteenth straight session.
Orascom Construction shares have dropped 23.62 percent this year to Thursday's close, the third worst performers this year on the CASE 30 index.
Shares of Orascom Telecom, the largest Arab mobile operator by market value, shed 8.53 percent to LE 21.23. Down 23.80 percent this year to Thursday's close, they are the second-worst performers on the index.
Shares of both firms were falling to match declines in their global depositary receipts, traded in London, late Thursday and Friday, when Egypt's local bourse was closed, traders said.
"Some investors who want to short Egypt's market have no other means of doing so then selling Orascom Construction and Orascom Telecom, which are the most actively traded," he says. "Some people anticipate the market will go down further."
The CASE 30 index fell 4.38 percent to 3,643.34 points, its thirteenth session of declines. The Hermes index dropped 3.64 percent to 355.60 points and the broader CIBC index shed 2.96 percent to 265.1 points. –Reuters
Thursday, January 15, 2009
Egypt indexes fall on US, European market woes
indexes fall on US, European market woes By Aziz El-Kaissouni First Published: January 15, 2009
CAIRO: Egyptian indexes fell on Thursday led by selling of Orascom Construction Industries and Orascom Telecom, as foreign investors took their lead from US and European markets that declined a day earlier, traders said.
On Wednesday grim US retail sales data and concerns that banks need even more money to save them from collapse pulled US and European share prices down.
"It was a reflection of the sharp decline in the United States and Europe...and once we broke the 4,500-resistance level (on the CASE 30 index), people started selling on stop-losses, which increased today's decline," said Mohamed Tawfiq of Delta Rasmala Securities.
Declining blue chips dominated trade on Thursday, with shares of market heavyweights Orascom Telecom and Orascom Construction Industries the day's first and second most heavily traded shares.
Mohamed Ashmawy of CIBC brokerage said that that although selling was across the board, Orascom Construction Industries and Orascom Telecom contributed significantly to the index's decline because of their weighting on the index.
The two firms together constitute about 35 percent of the benchmark CASE 30 index, and helped pull it down 3.35 percent to 4,327.01 points.
Orascom Telecom, which said on Wednesday that one of its subsidiaries would buy a Namibian mobile operator for $59 million, and would sell its M-link unit for $77 million, was the day's most heavily traded share by turnover.
Its shares last traded 5.53 percent down at LE 27 per share.
Shares in Orascom Construction Industries, which said on Wednesday it planned to buy back up to 0.9 percent of its shares, fell 4.52 percent to LE 127.49 per share.
The Hermes index lost 2.58 percent to 413.12 points. The broader CIBC index fell 2.30 percent to 297.2 points.
CAIRO: Egyptian indexes fell on Thursday led by selling of Orascom Construction Industries and Orascom Telecom, as foreign investors took their lead from US and European markets that declined a day earlier, traders said.
On Wednesday grim US retail sales data and concerns that banks need even more money to save them from collapse pulled US and European share prices down.
"It was a reflection of the sharp decline in the United States and Europe...and once we broke the 4,500-resistance level (on the CASE 30 index), people started selling on stop-losses, which increased today's decline," said Mohamed Tawfiq of Delta Rasmala Securities.
Declining blue chips dominated trade on Thursday, with shares of market heavyweights Orascom Telecom and Orascom Construction Industries the day's first and second most heavily traded shares.
Mohamed Ashmawy of CIBC brokerage said that that although selling was across the board, Orascom Construction Industries and Orascom Telecom contributed significantly to the index's decline because of their weighting on the index.
The two firms together constitute about 35 percent of the benchmark CASE 30 index, and helped pull it down 3.35 percent to 4,327.01 points.
Orascom Telecom, which said on Wednesday that one of its subsidiaries would buy a Namibian mobile operator for $59 million, and would sell its M-link unit for $77 million, was the day's most heavily traded share by turnover.
Its shares last traded 5.53 percent down at LE 27 per share.
Shares in Orascom Construction Industries, which said on Wednesday it planned to buy back up to 0.9 percent of its shares, fell 4.52 percent to LE 127.49 per share.
The Hermes index lost 2.58 percent to 413.12 points. The broader CIBC index fell 2.30 percent to 297.2 points.
Biting the billet: Kharafi ups Egypt investments with second billet license
Biting the billet: Kharafi ups Egypt investments with second billet licenseBy Theodore MayFirst Published: January 15, 2009
CAIRO: It’s a bold move at a time when the global economy seems have ground to a screeching halt: Al-Kharafi Group announced this week that it was awarded a contract by the Industrial Development Authority to produce an additional 6 million tons of steel billets annually.
This comes less than a year after Al-Kharafi, a privately owned Kuwaiti company, was awarded the first contract for producing steel billets in Egypt.
The newly awarded license is in line with the company’s plans to boost its investments in Egypt.
"We expect to inject new investments worth not less than $3 billion in the tourism sector and the majority will be in the industrial sector," Ibrahim Saleh, the company’s vice chairman, told Reuters late last December.
Al-Kharafi has agreed to pay LE 108 million in licensing fees as part of the deal, which is expected to bring somewhere around $800 billion in investment to the country.
Despite the roiled economic waters, steel industry experts anticipate that the length of time it takes for a steel plant to come online could help companies like Al-Kharafi miss the worst of the storm.
"There is a very long lead time with these plants,” said Patrick Gaffney, vice president for equity research at investment bank EFG-Hermes. “The earliest they could start production would be by late 2011, but I wouldn't be surprised if they didn't start production until 2013 for this second plant.”
Also boosting hopes that the Al-Kharafi project may be successful is that the company plans to produce billets rather than finished steel.
"They're doing billets, which is an input into the steel making process,” explained Gaffney.
Even if the demand for finished steel decreases, production of it is likely to exceed demand. Al-Kharafi will have the opportunity to sell billets for use in all finished steel products.
"As long as there is demand for steel products, then there will be demand for billets,” added Gaffney.
Steel prices have fallen precipitously in the last few months. "Prices have fallen since August of last year,” said Gaffney.
Even with prices low in Egypt, they’re even lower on the international market.
"If you look at where [steel on the international market] is trading, it's below Egyptian prices,” said Gaffney. “But if you include taxes and shipping, Egyptian prices are not too much higher."
Daily News Egypt reported earlier this week that with cheap prices internationally, steel traders are planning to import up to 100,000 tons in the coming months from the Ukraine, Turkey and Greece at a price range of between LE 3,500 and LE 3,700 per ton
The Managing Director of Ezz El Dekheila told Al-Alam Al-Youm earlier this week that he sees stability in steel prices in the Egyptian market and that current demand on steel has increased from the same period last year. This, he says, is an indicator that the Egyptian construction industry has not yet been affected by the global economic slowdown given increasing demand on building units, especially among low- and medium-cost housing.
Prices on the London exchange fell dramatically over the second half of the year, down 70 percent between June and December of last year.
Al-Kharafi’s investment was a bold one given the economic climate and the slumping steel prices. But since it will take several years for the new plants to come online, the markets may have plenty of time to recover
CAIRO: It’s a bold move at a time when the global economy seems have ground to a screeching halt: Al-Kharafi Group announced this week that it was awarded a contract by the Industrial Development Authority to produce an additional 6 million tons of steel billets annually.
This comes less than a year after Al-Kharafi, a privately owned Kuwaiti company, was awarded the first contract for producing steel billets in Egypt.
The newly awarded license is in line with the company’s plans to boost its investments in Egypt.
"We expect to inject new investments worth not less than $3 billion in the tourism sector and the majority will be in the industrial sector," Ibrahim Saleh, the company’s vice chairman, told Reuters late last December.
Al-Kharafi has agreed to pay LE 108 million in licensing fees as part of the deal, which is expected to bring somewhere around $800 billion in investment to the country.
Despite the roiled economic waters, steel industry experts anticipate that the length of time it takes for a steel plant to come online could help companies like Al-Kharafi miss the worst of the storm.
"There is a very long lead time with these plants,” said Patrick Gaffney, vice president for equity research at investment bank EFG-Hermes. “The earliest they could start production would be by late 2011, but I wouldn't be surprised if they didn't start production until 2013 for this second plant.”
Also boosting hopes that the Al-Kharafi project may be successful is that the company plans to produce billets rather than finished steel.
"They're doing billets, which is an input into the steel making process,” explained Gaffney.
Even if the demand for finished steel decreases, production of it is likely to exceed demand. Al-Kharafi will have the opportunity to sell billets for use in all finished steel products.
"As long as there is demand for steel products, then there will be demand for billets,” added Gaffney.
Steel prices have fallen precipitously in the last few months. "Prices have fallen since August of last year,” said Gaffney.
Even with prices low in Egypt, they’re even lower on the international market.
"If you look at where [steel on the international market] is trading, it's below Egyptian prices,” said Gaffney. “But if you include taxes and shipping, Egyptian prices are not too much higher."
Daily News Egypt reported earlier this week that with cheap prices internationally, steel traders are planning to import up to 100,000 tons in the coming months from the Ukraine, Turkey and Greece at a price range of between LE 3,500 and LE 3,700 per ton
The Managing Director of Ezz El Dekheila told Al-Alam Al-Youm earlier this week that he sees stability in steel prices in the Egyptian market and that current demand on steel has increased from the same period last year. This, he says, is an indicator that the Egyptian construction industry has not yet been affected by the global economic slowdown given increasing demand on building units, especially among low- and medium-cost housing.
Prices on the London exchange fell dramatically over the second half of the year, down 70 percent between June and December of last year.
Al-Kharafi’s investment was a bold one given the economic climate and the slumping steel prices. But since it will take several years for the new plants to come online, the markets may have plenty of time to recover
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