Showing posts with label markets. Show all posts
Showing posts with label markets. Show all posts
19 September 2011 Last updated at 21:06 GMT Oil rig Oil markets are concerned that economic weakness in Europe could affect demand for crude World share markets have fallen, and oil and the euro are also down, on fresh worries about a Greek default.

The Dow Jones index closed 0.9% down, the FTSE 100 ended 2% lower, and France's Cac and Germany's Dax sank about 3%.

Brent crude fell $2.5 to $109.61 a barrel on concerns that a slowing world economy will cut demand for oil.

The falls came after a weekend meeting of European officials ended without a deal on ways to tackle the debt crisis.

"The market is bracing itself for the worst possible outcome, which is a disorderly Greek default," said Stephen Gallo, head of market analysis at Schneider Foreign Exchange in London.

In addition to Brent's fall, US crude was down $2.34 to $85.62 a barrel.

Oil analyst Jonathan Barratt of Commodity Broking Services said the eurozone concern was hitting demand.

"Look at what's happening in Europe. People are beginning to see that it is taking a lot longer than anticipated to resolve the issue," he said.

"Longer uncertainty means the demand outlook for oil remains weak."

On Sunday, Greek Prime Minister George Papandreou chaired cabinet crisis talks, a day after cancelling a trip to the US amid growing fears over the debt crisis in the country.

The talks focused on new austerity measures to enable Greece to secure the country's next bailout loan.

Without the next loan Greece will not be able to meet its debt payments next month.


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MEXICO CITY — For 30 years, Estela Moran has sold almost every edible part of a cow at her meat stand in a neighborhood market. The sale of tripe, feet, tongue and prime beef has put three of her sons through college.

But all is not well at El Torito, the small market in a lower-class Mexico City neighborhood where Moran works. Several stands are vacant. Others are used just for storage. Moran's sales, she said, have gradually declined as U.S.-style supermarkets have flourished.

Across from her post, other meat sellers haven't been at the market in days.

"I don't know where they are," the 60-year-old Moran said as she packed leftover meat in plastic bags. "I'll be here selling until I get sick or I can't do it anymore. We don't earn much, but it's a living. I have customers that depend on me."

Mexico City's neighborhood markets, the rowdy, smelly vibrant landmarks of concrete and corrugated tin that sell everything from cactus salads to pinatas, are struggling as more Mexicans migrate to the relatively more orderly, cleaner, air-conditioned and foreign-owned supermarkets.

Shoppers say supermarkets have easier access, have a wider variety of items, and are safer.

"I know that by coming here we're making a foreign company richer, and the market vendors poorer," said 57-year-old Maria Teresa Hernandez as she left her local Wal-Mart with bags full of chocolate, juices and underwear. "But they have everything here."

Others, however, say the abundant offering of fresh fruits and produce at low prices is what keeps them going back to the local markets.

Most of the markets, like El Torito, were built 50 years ago and have not aged gracefully. A city government survey showed recently that 200 of the 318 markets need urgent repairs to their plumbing and electrical wiring.

More troubling for the more than 70,000 vendors is a steady decline in sales.

Once a staple of this megacity's daily life, the markets sold 80 percent of the city's groceries in the 1950s and '60s compared to 30 percent now, according to the city's Office of Economic Development.

A 2002 study by the National Autonomous University of Mexico estimated that sales had declined nearly 60 percent over a decade.

Nearly 10 years later, university professor Gerardo Torres Salcido says sales have surely dropped even further.

"There are markets that are basically dead," said Guadalupe Loaeza, a columnist for the daily Reforma newspaper and an author who has chronicled Mexican life. "Many are in bad conditions. There are rats and leaks. I remember many years ago no one went to the supermarkets. Now everyone goes to them."

The debate over the future of the markets was reignited in April when Mexico City's mayor, Marcelo Ebrard, successfully pushed an ordinance banning the construction of supermarkets and convenience stores in the middle of neighborhoods, where the markets are located. The ordinance, though, has a three-year life span and will have to be re-approved. Other government officials have proposed ideas such as installing debit card machines in the cash-only markets.

Still, some of the old-style markets thrive.

Even at an off-peak hour, La Merced market in the city's historic center was bursting with activity on a recent afternoon. The city's biggest retail market is a seemingly endless maze of stands. It anchors a commercial area that spills onto the street, where shoppers can find everything from pirated porn to Mexican flags made in China and grilled corn on the cob.

Next to a post of spices, belts are sold. Next to the chili-based mole sauces, children's toys hang. Next to plastic dinosaurs, a taco stand fries up tripe.

The pathways between the stands resemble this city's horrible car traffic, except the human jams here are caused by the carts carrying produce or mobile vendors hawking soda.

Cumbia, salsa and '80s American music booms from stereos some vendors keep. TV shows and movies thunder at high volume. Wires covered in dust are suspended above the stands. Flies hover near the produce.

"We come to markets because it's part of our tradition," said Pedro Ismael Marquez Hernandez, 37, as he shopped with his wife, mother and young daughter. "It would be sad if we lose that. It's part of our heritage."

Marquez Hernandez said he finds prices at the market more affordable, but admitted that he still prefers to buy some products, such as bathroom items, at the supermarket. Though they are more expensive there, they are a better quality, he said. He also said that sometimes sales at the local grocery stores are too good to pass up.

In this city of nearly 9 million, there are 7-Elevens or the like seemingly every other block. Walmart de Mexico has become the biggest private employer in the country, providing jobs to about 176,000 people, according to the discount giant's website.

Walmart began expanding its presence here in 1991, opening a Sam's Club. It now has 1,880 locations in Mexico, which includes its flagship stores, the Mexican chains it bought and 364 restaurants.

In 2010, it recorded $26 billion ($334.5 billion pesos) in sales from Mexico and its Central American branches.

Edgar Alvarez, director of the association of public markets, blames the markets' decline partly on the government, which he says caters to international companies while discriminating against markets.

When foreign companies open a supermarket, "they fix up sidewalks," he said. "They should do for us what they do for the multinationals."

At the same time, the government doesn't allow the street markets to accept food stamps, which translates into millions of pesos in lost income, Alvarez said.

He said banning construction of supermarkets and convenience stores is a move that is too little, too late.

At Moran's market one recent afternoon, a mutt of a dog ate scraps of chicken. Children ran around aimlessly. Vendors peeled onions. The stands were closing. It was quiet.

In a corner, the market has a shrine to the Virgin Mary. The aroma of mangos and prickly pear fills the air.

Angelina Espejel, who has run a dry cleaning stand at El Torito for eight years, thinks markets will survive whatever is thrown at them. They still serve too many people from the working class, she said.

"Can you imagine the unemployment if the markets disappeared?" Espejel asked.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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BANGKOK – Asian stock markets gave up early gains Wednesday after Moody's Investors Service downgraded Japan's credit rating.

Japan's Nikkei 225 index fell 0.2 percent to 8,714.58 after opening higher. South Korea's Kospi index dropped 1.1 percent to 1,756.81 while Hong Kong's Hang Seng index lost 0.8 percent to 19,725.73.

Australia's S&P/ASX 200 index was 0.6 percent up at 4,197. Shares in mainland China and New Zealand were also higher.

Moody's Investors Service downgraded Japan's government bond rating to Aa3 from Aa2 late Tuesday. The new rating is three notches below Moody's top Aaa rating.

The downgrade puts Moody's Japan rating in line with other major agencies. Both Standard & Poor's and Fitch rate Japan AA-, three notches below their top AAA ratings.

In May, Moody's warned it could downgrade Japan after the world's No. 3 economy slipped back into recession in the first quarter due to tumbling output and exports following the March 11 earthquake and tsunami.

In New York on Tuesday, the Dow Jones industrial average jumped 322 points, following modest gains Monday. Not even an earthquake on the U.S. East Coast on Tuesday afternoon could halt its advance. The Dow dipped about 60 points shortly after the quake hit but soon recovered and soared higher in the last two hours of trading.

Oil rose above $85 per barrel Tuesday following reports of better-than-expected manufacturing activity in China and Europe. Benchmark oil for September delivery was 21 cents higher at $85.65 on the New York Mercantile Exchange.

The contract rose $1.02 to settle at $85.44 per barrel on Tuesday in New York.

In currencies, the euro fell to $1.4405 from $1.4423 in late trading Tuesday in New York. The dollar rose to 76.77 yen from 76.66 Japanese yen


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19 August 2011 Last updated at 20:10 GMT Continue reading the main story Last Updated at 04:41 GMT

Market indexCurrent valueTrendVariation% variationMajor European share markets closed lower on Friday, ending another turbulent week.

Continued fears about a slowdown in the global economy and high levels of debt in the eurozone had driven indexes lower for much of the day.

At one point, European markets were sharply lower, with falls of more than 3% for some leading indexes.

By the close, London's FTSE 100 was down 1%, Paris's Cac was down 1.9% and Frankfurt's Dax was down 2.2%.

The losses leave the 100 index down 13% on the month, with the French and German markets worse hit, losing 18.3% and 24% respectively.

In New York, falls extended in late trade to take the Dow Jones to a close of 1.57%.

Gold remained a favourite with investors flocking to buy into its safe-haven image and spot gold hit a new record of $1,877 before slipping back to $1,846.50.

Alan Brown, Schroders' group chief investment officer, said: "It is the end of a really torrid week."

Investors are worried global growth is slowing, and that major economies may be heading back into recession.

A former governor of the US Federal Reserve, Laurence Meyer, said he thought the US would manage to avoid a downturn: "I think the most likely development is that we get some rebound - modest, disappointing - rebound in the second half.

"We think there are still some underlying strengths and a lot of positive factors, but not enough to keep the economy above trend, not enough to put the unemployment rate on a downward trend."

In addition, the Greek finance minister tried to reassure investors that his country's new bailout deal was not in doubt.

Evangelos Venizelos' comments came after four countries demanded collateral in exchange for their contributions to the 109bn-euro (£95bn) loan, after Finland agreed a deal with the Greek government.

Austria, the Netherlands, Slovenia and Slovakia have all said they want to do the same, which could complicate efforts to finalise the rescue deal. This underlined concerns that the eurozone debt crisis could be far from over.

But Mr Venizelos told Greek radio the bailout "is not in doubt, because it is of vital importance to the eurozone".

Continue reading the main story Wile E Coyote
The euro's performance has reminded us of the point where Wile E Coyote runs off the edge of the cliff and fails to fall simply because it does not occur to him to look down”

End Quote Simon Derrick Bank of New York Mellon 'Painful realisation' On Thursday, Morgan Stanley said that the US and Europe were "dangerously close to recession".

The week has been one of steep declines on global stock markets.

Some bank shares across Europe were hit again, with Lloyds down 4.8% in London and France's BNP Paribas down 4.3%.

Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said the latest falls meant the FTSE 100 had fallen 16% so far this year, with debt and growth the two major concerns.

"There is a painful realisation that the rhetoric of the policy makers has yet to translate into any definitive plans, which could go some way in assuaging investors' concerns," he commented.

"There seems to have been little co-ordinated action in an effort either to spur growth or to put in place a roadmap for dealing with the increasingly difficult debt situation of many developed economies, most notably the US and Europe."

A recent poll in Germany suggested three-quarters of those surveyed had little or no faith in Angela Merkel to deal with the eurozone crisis, while a similar poll in France suggested only 33% of people had confidence in Nicolas Sarkozy.

Meanwhile the Spanish government has announced a number of measures designed to cut spending and boost growth as it seeks to reduce its deficit.

The cabinet agreed, for example, a sharp cut in tax on the sales of new properties, to help its battered housing and construction sectors.

Bear market?

In Asia, South Korea's Kospi dropped 6.2%, while Japan's Nikkei 225 fell 2.4% and Australia's benchmark S&P/ASX 200 index ended down 3.5%.

Many analysts are questioning if a bear market - one in which the long-term trend is negative - has now developed and is here to stay.

Continue reading the main story
The most worrying trend on markets in the past 24 hours has not been the collapse in share prices, but it has been the rise in the price of assets perceived by investors to be less risky: gold and US, UK and German government bonds”

End Quote image of Robert Peston Robert Peston Business editor, BBC News "Bear markets tend to happen when sentiments are low and that comes from weakened demand and bad news flow," Chou Chong of Aberdeen Asset Management told the BBC.

Tobias Blattner from Daiwa Capital Markets added that markets had got "a bit ahead of themselves" earlier in the year, when big rises were seen, and were now repricing.

"We are back a little bit unfortunately to the period after Lehman in which markets are acting more on rumours - on European banks for example," he said.

"Unfortunately markets are acting less on fundamentals and more on rumours."

Also on Friday, oil prices recovered from early losses, as the dollar weakened, making commodities more attractive.

Brent crude was up almost $2 at $108.62 a barrel, while US light, sweet crude fell 12 cents to $82.26, after hitting a session low of $79.17.

The price of oil had fallen earlier as investors bet that slower global growth would dent demand for crude.

Bond yields Kevin Peachey explains how you could be affected by market turmoil

On Thursday, there was a sharp rise in the price of bonds issued by countries considered to be the least risky. This caused their yields - the implied cost of borrowing - to plummet to historic lows.

The 10-year US treasury yield briefly dipped below 2% to its lowest level since World War II.

The 10-year German bond yield also fell to a post-war low, while the 10-year UK gilt yield hit the lowest level since the 19th century.

So although the lower cost of borrowing is good news for those countries, the "torrent of money" going into putatively safe US and British government debt is redolent of a worrying trend, according to BBC business editor Robert Peston.

He says it means one of two things: "Either money tends to become harder to obtain by those in the private sector who take the risks which generate economic growth and wealth; or the climate of pervasive anxiety means that even when money is available to consumers and businesses, they don't want to spend or invest it."


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  Strong demand for tablets is helping sales of Intel chips The world's largest chipmaker Intel has posted record quarterly revenues and higher profits due in part to strong emerging market demand for computing.


Revenue for the second quarter was $13bn (£8bn), up more than 20% on a year earlier, while profits rose slightly to $3bn.


The firm said it expected sales in the second half of the year to rise at a similar rate to the first.


It said demand in emerging markets was helping to drive overall sales.


"We achieved a significant new milestone in the second quarter, surpassing $13bn for the first time," said Intel's chief executive Paul Ottelini.


"Strong corporate demand for our most advanced technology, the surge of mobile devices and internet traffic fuelling data centre growth, and the rapid rise of computing in emerging markets drove record results."


However, consumer demand in more developed economies remained weak, he added.


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