STOCK MARKET WATCH, Thursday 7 September

[ozymandius]

Thursday September 7, 2006

COUNTING THE DAYS
DAYS REMAINING IN THE * REGIME 867 DAYS
DAYS SINCE DEMOCRACY DIED (12/12/00) 2086 DAYS
WHERE'S OSAMA BIN-LADEN? 1786 DAYS
DAYS SINCE ENRON COLLAPSE = 1745
Number of Enron Execs in handcuffs = 19
ENRON EXECS CONVICTED = 6
Enron execs conveniently deceased = 3
Other Arrests of Execs = 54


U.S. FUTURES & MARKETS INDICATORS
NASDAQ FUTURES-----------------------------S&P FUTURES




AT THE CLOSING BELL WHEN BUSH TOOK OFFICE on January 22, 2001
Dow - 10,578.24
Nasdaq - 2,757.91
S&P 500 - 1,342.90
Oil - $27.69/bbl
Gold - $266.70/oz.

AT THE CLOSING BELL ON September 6, 2006

Dow... 11,406.20 -63.08 (-0.55%)
Nasdaq... 2,167.84 -37.86 (-1.72%)
S&P 500... 1,300.26 -12.99 (-0.99%)
Gold future... 641.80 -5.10 (-0.79%)
30-Year Bond 4.95% +0.02 (+0.41%)
10-Yr Bond... 4.80% +0.02 (+0.42%)






GOLD, EURO, YEN, Loonie and Silver


PIEHOLE ALERT

Heads Up!
Preliminary info on appearances by Bush & Co. throughout the country. Details & links are added as they become available so check back. And if you know more, are organizing something, or would like to, contact [e-mail]

For information on protests and other actions Citizens For Legitimate Government

[ozymandius]

1. WrapUp by Chris Puplava

HOUSING AND RETAIL TRENDS LIKELY TO WEIGH ON FUTURE EMPLOYMENT GROWTH

I have been writing fairly consistently on the housing situation and how it relates to the economy. It is my belief that the determination of a soft versus hard landing, or even a “goldilocks economy” for that matter, will be largely determined by the extent of the housing deceleration. Housing has been important to the economy on two fronts; job creation and consumer spending via mortgage equity withdrawal (MEW). These two factors and how they relate to the economy can be seen in the following charts.

-charts-

The current construction employment has not made up such a large percentage of total employment since the late 1950s, the highest levels in over 50 years. In Figure 2 we see that GDP has not seen such a large percentage of growth coming from home sales in more than 35 years. For these reasons housing needs to be monitored closely to gauge where the economy is heading.

-cut-

Although both the WLI and the PMI point to flat to weak economic growth, both retail and housing employment numbers and trends point to further economic weakness ahead that may lead to economic contraction instead of expansion. Over the last 40 years, whenever the total nonfarm employment YOY % growth rate falls into negative territory we have had a recession.

http://www.financialsense.com/Market/wrapup.htm

[ozymandius]

2. Today's Reports

8:30 AM Initial Claims 09/02
Briefing Forecast 315K
Market Expects 315K
Prior 316K

10:00 AM Wholesale Inventories Jul
Briefing Forecast 0.8%
Market Expects 0.7%
Prior 0.8%

10:30 AM Crude Inventories 09/01
Briefing Forecast NA
Market Expects NA
Prior 2481K

[UpInArms]

21. Initial Claims @ 315,250 - last wk rev'd up 3,000 to 319,000

8:29 AM ET 9/7/06 U.S. 4-WK AVG. CONTINUING CLAIMS 6-MONTH HIGH 2.49MLN

8:29 AM ET 9/7/06 U.S. CONTINUING JOBLESS CLAIMS UP 15,000 TO 2.49MLN

8:29 AM ET 9/7/06 U.S. INITIAL CLAIMS FALL TO 6-WEEK LOW

8:29 AM ET 9/7/06 U.S. 4-WEEK AVG. INITIAL CLAIMS DOWN 3,000 TO 315,250

8:29 AM ET 9/7/06 U.S. WEEKLY INITIAL JOBLESS CLAIMS FALL 9,000 TO 310,000

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B3B199802%2D3412%2D4E1C%2DBBEA%2D14A88D742E3F%7D&dist=newsfinder&symbol=&siteid=mktw

WASHINGTON (MarketWatch) - In a sign that the labor market isn't creating enough of the right kind of jobs, the number of people collecting state unemployment benefits over the past four weeks rose to the highest level since February, the Labor Department said Thursday. The number of continuing jobless claims rose by 15,000 to 2.49 million in the week ending Aug. 26, bringing the four-week average of continuing claims to a six-month high of 2.49 million. Meanwhile, the number of new filings for state unemployment benefits fell by 9,000 to 310,000 in the week ending Sept. 2. It's the lowest figure for initial jobless claims in six weeks, reflecting a modest level of layoffs. The four-week average of initial claims - which smoothes out weekly noise and distortions in the data - fell by 3,000 to 315,250.

[AnneD]

39. Morning Marketeers,

:donut: and lurkers. I just ticks me to no end when they revise these numbers up in silence when they had no problem trumpeting those bogus numbers last week. If they can't tell the truth about something like this, what else are they lying about? Could they be lying about:the extent of wiretapping, corruption. We now know what some of us long suspected....secret CIA prisons. Talk about Geneva Code violations...oh wait, the Geneva Convention is just a quaint idea, like the Bill Of Rights, the Declaration of Independence, and the Constitution. Frankly, I am sick and tired of waking up every morning ashamed and embarrassed to be an American. I want an impeachment and I want it now. I want Bush to be impeached, Cheney to be investigated, impeached or have a massive HA-in no particular order. I would like these things to happen before they can nominate successors so Nancy Pelosi can assume the presidency as it is clearly written in the Constitution (after the Nov elections of course). Quaint document my Aunt Bernice's bloomers!

On a more subtle note, they had Nellie Connelly's funeral services yesterday. Politicians on both sides of the aisle came to pay their respects to one of our dearest first ladies. Speaking of fitting deaths, she died at her desk writing thank you letters. While most of the world remembers her as being in the car with JFK when he was assassinated, we remember her as gracious and kind. She was loved by everyone in Texas. Every living Governor was there (save for Ann Richards-which makes me wonder about her health during her treatment). They just don't make many like that, esp to be in politics. She will be deeply missed.

Happy hunting and watch out for the bears.

[Ghost Dog]

32. July wholesale inventories rise 0.8 pct

http://news.yahoo.com/s/nm/20060907/bs_nm/economy_wholesale_dc

WASHINGTON (Reuters) - Inventories at U.S. wholesalers rose by a slightly larger-than-expected 0.8 percent in July on bigger stockpiles of autos and electrical equipment, a Commerce Department report on Thursday showed.Wall Street analysts had forecast a 0.6 percent advance in stocks after a 0.8 percent gain in June.

Inventories of durable goods -- products meant to last three or more years - rose for the 35th straight month, climbing 0.9 percent on the back of a 2.7 percent increase in stocks of electrical supplies.

Auto inventories grew 0.3 percent after a 0.5 percent fall in the prior month as sales fell by 0.3 percent . The auto inventories-to-sales ratio, a gauge of how long it would take to empty stocks at the current pace of sales, remained unchanged from June at 1.39 months.

Stockpiles of non-durable items such as food and clothing inched up 0.5 percent July after rising 1.0 percent the previous month, boosted by a 1.2 percent jump in petroleum.

Meanwhile, sales at wholesalers inched up 0.4 percent in July after a 1.2 percent gain the previous month. The overall wholesale inventories-to-sales ratio also remained unchanged from June, holding at 1.15 months.

[54anickel]

42. U.S. crude supply falls; gasoline supply up: Energy Dept.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B0C588216%2D7116%2D4336%2DAF73%2D659F7F9ABF0F%7D&dist=newsfinder&siteid=google

SAN FRANCISCO (MarketWatch) -- The Energy Department said crude supplies fell 2.2 million barrels to 330.6 million for the week ended Sept. 1. Motor gasoline inventories stocks rose for a third week in a row, up 700,000 barrels to total 206.9 million barrels. Distillate supplies climbed 3.1 million barrels to 139.9 million. Following the news, October crude fell 30 cents to $67.20 a barrel. October unleaded gas shed 1 cent to $1.63 a gallon and October heating oil was at $1.897 a gallon, down 1.4 cents

[ozymandius]

3. Oil hovers near 5-month low

LONDON (Reuters) - Oil prices slipped to their lowest level in five months before recovering slightly on Thursday as dealers took a pause from a three-day decline ahead of U.S. data expected to show healthy fuel stocks.

Oil has slumped more than 6 percent in two weeks as the end of the U.S. driving season and a perception of easing geopolitical and weather risks prompted traders to re-assess fundamentals.

U.S. light crude for October delivery rose 31 cents to $67.81 a barrel by 0931 GMT after hitting an intraday low of $67.41, the weakest since April 10 and one cent below the 200-day moving average, a key support indicator for speculators.

-cut-

U.S. weekly inventory data due later on Thursday is expected to show a 1.3 million-barrel drop in crude stocks, but a 1.3 million-barrel build in distillates, which include heating oil, jet fuel and diesel. Gasoline stocks were seen down 800,000 barrels.

http://news.yahoo.com/s/nm/markets_oil_dc

[ozymandius]

4. OPEC steers steady course for Vienna meeting

GENEVA (AFP) - The Organisation of Petroleum Exporting Countries appeared set to keep production quotas unchanged at its regular meeting on Monday, but a recent dip in oil prices is fuelling speculation about future shifts in output.

OPEC ministers have signalled in recent weeks that they see little reason to cut output or change the group's official production quota of 28 million barrels day, a 25-year high, before the end of the year.

"Despite the recent fall in oil prices, the current OPEC President has recently stated that the current price is 'satisfactory' for its members and sustainable in that it doesnt harm economic growth," analyst Kevin Norrish of Barclays Capital underlined.

-cut-

"I'm not sure how far it's going to go actually but it looks like there might be some kind of psychological change in the market taking place," said Simon Wardell of Global Insight.

http://news.yahoo.com/s/afp/20060907/bs_afp/opecenergyoilcommodities_060907100140

[Ghost Dog]

31. Lawmakers grill BP on pipeline spill

http://news.yahoo.com/s/ap/20060907/ap_on_bi_ge/alaska_pipeline_hearing

WASHINGTON - BP executives received stern warnings Thursday from members of Congress outraged at the company's admittedly deficient maintenance of leak-prone Alaskan oil pipelines.

The executives apologized and pledged to fix operational lapses on the North Slope that led to the region's biggest ever oil spill in March and the partial shutdown last month of the country's largest oil field.

Lawmakers said BP's mistakes in Alaska — as well as its responsibility for a deadly refinery fire last summer — were particularly unacceptable given the industry's record profits and the relatively inexpensive measures that might have prevented the oil spill.

With Congress aiming to wrap up its current session by the end of the month, Thursday's House hearing was not expected to result in any specific legislative action; it did, however, offer lawmakers an opportunity to talk tough to Big Oil at a time of soaring prices and ahead of November elections.

"We don't need prices suddenly kicked higher because the company responsible for bringing a vital part of this country's oil to market isn't taking care of the pipelines," Rep. Joe Barton (news, bio, voting record), R-Texas, said in remarks prepared before the hearing.

"If a company — a very successful company — can't do the basic maintenance needed to keep Prudhoe Bay's oil field operating safely and without interruption," he added, "then maybe it shouldn't be operating the pipeline."

/...

[Ghost Dog]

36. Oil bounces off five-month low, copper up again

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=38967.3865509259-881329229&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

US benchmark crude oil futures touched a five month low on Thursday before rebounding ahead of the latest weekly US crude and petroleum product inventory data that is expected to show a fall in commercial oil stockpiles. West Texas Intermediate for October delivery touched $67.41 a barrel in electronic trade, it lowest level since mid April, but had reversed its losses later in the morning session to reach $67.73, up 23 cents on the day. October ICE Brent crude futures added 26 cents to $67.19 a barrel in mid-morning London trade, after hitting a three-month low of $66.80 earlier in the session. Reuters reported that the US weekly inventory data is expected to show a 1.3m barrel fall in crude stockpiles, but a 1.3m barrel build in inventories of distillates, which include heating oil, jet fuel and diesel. Gasoline stocks were predicted to fall 800,000 barrels.

Copper prices rose for a fourth consecutive session as demand for metals pick up in the third quarter, a period when Europe and the US traditionally increase economic activity. The three-month copper price struck a intra-day high of $8,110 a tonne on the London Metal Exchange, up $70 on the previous close. Copper hit a record $8,800 in May.

[ozymandius]

5. European bourses lower on inflation fears

European equities fell on Thursday as interest rate concerns resurfaced, with comments due from US Federal Reserve and European Central Bank officials, while the Bank of England is seen keeping UK rates on hold.

By mid morning the the losses had widened, and the FTSE Eurofirst 300 fell 0.9 per cent to 1,352.2, while Frankfurt's Xetra Dax shed 0.8 per cent to 5,769.16. In Paris, the CAC 40 lost 1 per cent to 5,063.01 and London's FTSE 100 slipped 1 per cent to 5,870.3.

Losses in the previous session sharpened after US reports showed higher-than-expected wage inflation together with slowing growth in residential construction. This underlined investors' worst fears that the Fed may need to keep lifting interest rates going into an economic slowdown.

http://news.yahoo.com/s/ft/20060907/bs_ft/fto090720060502006384

[Ghost Dog]

11. FTSE led down by Partygaming; Tomkins hits construction

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20060907:MTFH73010_2006-09-07_10-16-08_IRE736938&type=comktNews&rpc=44

LONDON, Sept 7 (Reuters) - Britain's FTSE 100 (.FTSE: Quote, Profile, Research) fell on Thursday with Partygaming (PRTY.L: Quote, Profile, Research) leading the losers after Sportingbet's (SBT.L: Quote, Profile, Research) chairman was detained by U.S. authorities and depressed by a sharp decline in the construction sector after a warning from Tomkins (TOMK.L: Quote, Profile, Research).

Sentiment was subdued also ahead of the Bank of England's decision on interest rates at 1100 GMT.

The Bank of England was expected to leave interest rates on hold at 1100 GMT although traders said there were nagging worries of an outside chance that the central bank may surprise markets with a rate rise. Political turbulence surrounding British Prime Minister Tony Blair's departure had no effect on the market, traders said.

"We've known Blair was on his way out. The economic picture is not going to change, especially with Brown in charge," said a dealer.

By 0949 GMT, the FTSE 100 was down 0.97 percent, or 57.4 points, at 5872, in line with a decline in markets across continental Europe. The U.S. weekly jobless claims and wholesale inventories out today may offer a little more direction from across the Atlantic, traders said.

"The market's had a great run, and buyers are now stepping away," one said.

/...

[Ghost Dog]

16. (Bank of England) Rates stay on hold

http://today.reuters.co.uk/news/articlebusiness.aspx?type=businessNews&storyID=2006-09-07T113342Z_01_LAC002152_RTRUKOC_0_UK-ECONOMY-BRITAIN-BANK.xml

LONDON (Reuters) - The Bank of England left interest rates unchanged on Thursday but analysts say growing inflationary pressures mean higher borrowing costs are likely before the end of the year.

The decision to leave rates at 4.75 percent was widely predicted after last month's surprise rate hike and prompted little reaction from markets, leaving them to concentrate on an expected announcement this afternoon of a departure date for Prime Minister Tony Blair.

Nevertheless, with the economy growing robustly, inflation above target and house prices showing little sign of cooling, most economists think another rate rise is just a matter of time.

Money markets show investors fully expect rates to rise to 5 percent in November when the bank issues new forecasts on growth and inflation.

/...

[Ghost Dog]

33. Bets are off as FTSE falls further in midday trade

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=38967.3209722222-881322801&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

London equities fell on Thursday as online gaming stocks took a hammering on news that the chairman of Sportingbet has been detained by the US authorities. Shares in Sportingbet were suspended at 238½ p after the company revealed Peter Dicks was stopped in the early hours of Thursday morning while in the US on non-Sportingbet business. The detention followed the arrest in July of David Carruthers, the former chief executive of BetonSports. The US Department of Justice said BetonSports failed to pay federal betting taxes of $3.3bn and is seeking a forfeiture of $4.5bn from the company. Shares in BetonSports have been suspended since July. The news sent shockwaves through the online gaming sector, pushing PartyGaming 9.6 per cent lower to 106p, 888 Holdings down 15.2 per cent to 145p and Empire Online off 7.3 per cent to 67p. In the wider market, the FTSE 100 fell 1 per cent to 5,872.3, mirroring a poor show on Wall Street overnight, while the FTSE 250 dropped 0.8 per cent to 9,621.8.

:eyes:

[Ghost Dog]

50. FTSE ends around 1-mth low as miners fall

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=londonMktRpt&storyID=2006-09-07T164833Z_01_L07063436_RTRIDST_0_MARKETS-BRITAIN-STOCKS-UPDATE-3.XML

LONDON, Sept 7 (Reuters) - Britain's FTSE 100 (.FTSE: Quote, Profile, Research) index suffered sharp losses for the second straight session on Thursday, hit by weak sentiment towards global equities on interest rate worries, with miners such as BHP Billiton (BLT.L: Quote, Profile, Research) and Rio Tinto (RIO.L: Quote, Profile, Research) among the biggest losers.

Shares in PartyGaming (PRTY.L: Quote, Profile, Research) headed the list of FTSE 100 losers and fell 10 percent after online bookmaker Sportingbet (SBT.L: Quote, Profile, Research) said its chairman had been detained by U.S. authorities, which added to concerns that the U.S. was cracking on the lucrative industry.

BP (BP.L: Quote, Profile, Research) fell 1.9 percent and Royal Dutch Shell (RDSa.L: Quote, Profile, Research) lost 1.4 percent as U.S. crude oil prices slipped to their lowest level in five months to $67.2 a barrel ahead of U.S. data expected to show healthy fuel stocks.

The FTSE 100 ended down 1.2 percent or 71.2 points at 5,858.1, its lowest close since Aug. 11. Banks took a knocking, with HSBC (HSBA.L: Quote, Profile, Research), Standard Chartered (STAN.L: Quote, Profile, Research) and Barclays (BARC.L: Quote, Profile, Research) all down between 0.7 and 1.3 percent.

The Bank of England kept interest rates on hold at 4.75 percent but analysts said growing inflationary pressures meant higher borrowing costs were likely before the end of the year. Sterling fell half a percent to hit a one-month low against the dollar as the greenback strengthened against the euro, with added pressure from turbulence in the ruling Labour party.

Stocks were little impacted by political news. "A bit of political uncertainty might not have helped," said Robert Parkes, UK strategist at HSBC. "Everyone knows Tony Blair is going to go, but it might focus investors' minds a bit more on exactly how Gordon Brown's going to run the country."

/Humphhh. More...

[Ghost Dog]

34. European bourses lower midday on inflation fears

http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=38967.3339699074-881323809&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

European equities fell on Thursday as interest rate concerns resurfaced, hitting riskier assets like technology stocks, while financials fell as the main indices dropped close to four-week lows. LVMH, the French luxury goods group, said it expected little impact from tougher airline security measures in its full-year results and reiterated its goal for a significant rise in 2006 earnings. The company reported a 46 per cent rise in first-half net profit, with double-digit growth at its core Louis Vuitton leather goods brand. The shares fell 3.2 per cent to €77.85 however, after a couple of broker downgrades. KBC lowered its rating from “buy” to “accumulate” saying the results were disappointing, while Societe Generale cut from “hold” to “sell”. Christian Dior, which owns a controlling stake in LVMH, fell 3.1 per cent to €78.55. By midday, the FTSE Eurofirst 300 fell 0.7 per cent to 1,354.18, while Frankfurt’s Xetra Dax shed 0.5 per cent to 5,781.56. In Paris, the CAC 40 lost 0.8 per cent to 5,074.76 and London’s FTSE 100 slipped 1 per cent to 5,871.3.

[Ghost Dog]

48. European stocks tumble as miners, carmakers slide

http://investing.reuters.co.uk/news/articleinvesting.aspx?type=eurMktRpt&storyID=2006-09-07T163714Z_01_L07761825_RTRIDST_0_MARKETS-EUROPE-STOCKS-UPDATE-3.XML

LONDON, Sept 7 (Reuters) - European shares slid to their lowest close in more than three weeks on Thursday, dragged down by weaker car and mining stocks as investors continued to fret over global inflation and the outlook for U.S. interest rates.

Bucking the weaker trend, InBev (INTB.BR: Quote, Profile, Research) rose after forecast-beating results, while online gaming stocks slumped on fears of a U.S. crackdown after a second Internet gaming executive was detained by U.S. authorities.

<snip>

The FTSEurofirst 300 <.FTEU3> index of top European shares ended down 0.9 percent down at 1,351.32 points. That marked its lowest close since mid-August, and its third straight losing session as investors locked in the profits of a 10-percent rally over the past two months.

Across Europe, the FTSE 100 (.FTSE: Quote, Profile, Research) dropped 1.2 percent as the Bank of England kept interest rates on hold, and as Prime Minister Tony Blair said he planned to step down within a year. France's CAC 40 <.FCHI> fell 1.1 percent, while the DAX <.GDAXI> dropped 0.7 percent.

<snip>

Among top decliners were car-related shares, with BMW (BMWG.DE: Quote, Profile, Research) down 1.6 percent as the world's largest premium carmaker reported a 10.9-percent fall in group vehicle sales in August.

Volkswagen (VOWG.DE: Quote, Profile, Research) fell 2.1 percent, DaimlerChrysler (DCXGn.DE: Quote, Profile, Research) dropped 1 percent, and Renault (RENA.PA: Quote, Profile, Research) slid 2.1 percent.

Car parts firms also dropped, with Tomkins (TOMK.L: Quote, Profile, Research) down 15 percent after warning its profit would be below forecasts. Valeo (VLOF.PA: Quote, Profile, Research) fell 4.2 percent, while GKN (GKN.L: Quote, Profile, Research) dropped 2.9 percent.

Mining stocks dropped, with Anglo American (AAL.L: Quote, Profile, Research), Salzgitter (SZGG.DE: Quote, Profile, Research) and Finland's Rautaruukki (RTRKS.HE: Quote, Profile, Research) down more than 2 percent after the Finnish steel maker posted a bigger-than-expected fall in second-quarter profit.

BHP Billiton (BLT.L: Quote, Profile, Research) fell 2.8 percent, and Rio Tinto (RIO.L: Quote, Profile, Research) dropped 2.6 percent as copper futures fell in New York. Oil stocks also weighed, with BP (BP.L: Quote, Profile, Research) down 1.9 percent and Total (TOTF.PA: Quote, Profile, Research) 1.6 percent lower as crude oil dropped.

/more, including online gambling...

[ozymandius]

6. GM puts power behind warranties

DETROIT -- To convince consumers that the quality and durability of its vehicles have improved dramatically, General Motors Corp. says it will back its 2007 models with a five-year/100,000-mile powertrain warranty.

"For those who haven't driven a GM car or truck in a while, this is our way of saying `Come on back and see what we've done,'" GM Chairman and Chief Executive Rick Wagoner said at a news conference Wednesday.

"We've been telling everyone how strong GM's cars and trucks are in terms of value, design, quality and durability. Now we're going to back it up."

Wagoner said a common complaint comes from people who say they owned a GM vehicle 20 years ago, had a problem and wouldn't set foot in a GM dealership again.

more

[ozymandius]

7. SEC now investigating over 100 firms for backdating

SAN FRANCISCO — U.S. Securities and Exchange Commission (SEC) Chairman Christopher Cox told a Senate committee Wednesday (Sept. 6) that his agency is now investigating more than 100 companies concerning possible fraudulent reporting of stock option grants, 25 percent more companies than he said the SEC was investigating a little more than one month ago, according to a transcript of the session.

"The companies are located throughout the country, and include Fortune 500 companies as well as smaller cap issues," Cox told the committee on banking, housing and urban affairs. "They span multiple industry sectors."

During a news conference here July 20 to announce the indictment of three former Brocade Communications Systems Inc. in connection with an alleged stock options backdating scheme at that company, Cox said the SEC was investigating more than 80 companies.

-cut-

Dozens of companies have been implicated in the scandal over historical stock options granting practices in the past several months. Most of the allegations have centered on the practice of backdating stock options—retroactively granting options on dates when a company's stock price is relatively low, maximizing the potential for profit by the option holder.

http://www.eetimes.com/news/latest/showArticle.jhtml?articleID=192600002

[ozymandius]

8. IMF: Precious metals have peaked

Mexico City, September 6th.- The International Monetary Fund (IMF) said Wednesday the prices of precious metals have peaked and could descend in the short term, after posting all-time highs in the past years because a a voracious appetite on the part of China.

"In the future, we can expect the prices of precious metals to decline in relation to current record high levels," the IMF said in its semester world economic outlook report.

very short

[54anickel]

37. Uhmm, yeah - right. Notice that little qualifier - "short term". Oh and

what's this regarding China's "voracious appetite". Do they see that coming to an end or something?

China sees value in record reserves
http://www.ft.com/cms/s/cbf44132-3e01-11db-bd60-0000779e2340.html

China’s swelling foreign exchange reserves, which are on track to top a record $1,000bn within weeks, could be used to moderate the impact of any economic slowdown or financial crisis, according to the country’s leaders.

Wen Jiabao, prime minister, and Zeng Qinghong, a vice-president, have both made public comments this week putting a largely positive spin on the potential uses of the reserves, which reached $955bn (€735bn, £500bn) at the end of July.

snip>

Mr Zeng, China’s fifth-ranked leader, told a local paper that “a greater proportion” of the reserves could be spent on imports of strategic raw materials and “high-tech equipment to modernise state enterprises”.

snip>

Some officials have pushed, for example, for the reserves to be used to fund China’s strategic oil reserves.

The composition of the foreign exchange reserves are a state secret, but about 70 per cent is believed to be held in US dollars, about 20 per cent in euros, and the rest in other currencies, predominantly yen.

more...

[Ghost Dog]

43. Minister: China not deliberately pursuing trade surplus

http://www.chinadaily.com.cn/china/2006-09/07/content_683960.htm

(Reuters) HANOI - China's Finance Minister Jin Renqing said on Thursday his country was not deliberately pursuing a large trade surplus with its trading partners and hoped to rely on domestic demand as the major driver of growth.

In a copy of a speech at a two-day meeting of finance ministers of the Asia-Pacific Economic Cooperation forum in Vietnam, Jin also said China aimed to increase imports and further adjust its growth model.

"China does not deliberately pursue a large trade surplus," Jin told finance ministers in a closed meeting.

"The driver of China's sustainable economic development is its big domestic demand and large domestic market," he said.

Jin said that to help address global trade imbalances, Beijing would step up imports and intensify its battle against piracy.

While changes could not be expected to take place overnight, China's imports had risen rapidly in the first half of the year just as export growth had decelerated, he said.

Consumption was already playing a bigger role in driving the economy than previously, he said.

/...

[Ghost Dog]

44. China moves up to sixth place after IMF quota revamp

http://www.domain-b.com/finance/banks/imf/20060907_quota_revamp.html

Mumbai: China will have the sixth largest quota (voting power) at the International Monetary Fund once an IMF proposal to give emerging economies greater say at the global lending body takes effect.

<snip>

The proposal has to be ratified at the meeting of IMF's board of governors during the annual IMF-World Bank meeting in Singapore next week.

The amendments would put China at No6 position among the 184 member countries, up from its eighth position now.

The voting rights or quotas of member countries are determined on the basis of the amount of money they contribute to the IMF.

China's quota in the IMF will be raised to 3.719 per cent from the current 2.980 per cent; South Korea's quota would go up to 1.346 per cent from 0.764 per cent while Mexico's quota will be increased to 1.449 per cent from the current 1.210 per cent. Turkey's quota will also go up to 0.548 per cent from 0.451 percent.

The IMF board is working on a new formula for a further round ofsend this article to a friend quota adjustments for more countries. Major emerging countries from the Middle East, Asia and Latin America are opposed to the IMF voting reform package.

[54anickel]

52. They don't need no stinkin' IMF voting rights. They got all the votes

they need right here....coming up on a trillion any day now

[Ghost Dog]

9. Tokyo stocks fall quite dramatically

http://www.ft.com/cms/s/d41128dc-3e27-11db-bd60-0000779e2340.html

Japanese stocks fell sharply on Thursday, hit by the overnight slide on Wall Street and the latest woes at Sony.

The Nikkei 225 was down 1.7 per cent to 16,012.41. The Topix fell 1.8 per cent to 1,613.46.

The fall in US shares hit exporters and domestically focused stocks alike, as many economists are beginning to doubt the Japanese economy’s ability to sustain its growth without the boost from US demand.

Among export-focused stocks, electrical machinery was down 2 per cent, with transport equipment 2.1 per cent lower.

Sony, the consumer electronics and entertainment giant, slid another 1.6 per cent to Y4,970, following the news that the European launch of its PlayStation 3 game will be delayed until after the crucial Christmas shopping season.

Matsushita Electric Industrial, the world’s biggest maker of consumer electronics under the Panasonic brand, slipped 1.6 per cent to Y2,490.

Toyota, Japan’s biggest carmaker, was down 1.9 per cent to Y6,210. Nissan, its largest rival, also fell 1.8 per cent to Y1,317. Honda, the third biggest in Japan, was down 2.8 per cent to Y3,890.

One of the sharpest slides among domestically focused stocks was for retailers, which fell 1.7 per cent. Seven & I, which operates restaurants, convenience outlets and department stores, was down 2 per cent to Y4,010.

Sumitomo Rubber, the tyre maker, slumped 4.9 per cent to Y1,198 after Morgan Stanley lowered its target price to Y1,300 from Y1,400. The brokerage cited worries about demand in North America and Japan.

The fall in oil prices to near three-month lows pushed down Inpex, Japan’s biggest upstream oil company, by 3.1 per cent to Y969,000.

/...

[Ghost Dog]

24. Japanese architect pleads guilty in scandal

http://www.washingtonpost.com/wp-dyn/content/article/2006/09/06/AR2006090600277.html

TOKYO (Reuters) - An architect at the center of a scandal over unsafe buildings in Japan pleaded guilty on Wednesday to fabricating data on the ability of structures he designed to withstand earthquakes, Kyodo news agency said.

The scandal, in which quake-resistance data was falsified for apartment buildings and hotels, leaving them vulnerable to even moderate tremors, outraged the public in the earthquake-prone country.

Hidetsugu Aneha, who has been stripped of his architect's license, pleaded guilty at the first hearing of his trial in the Tokyo District Court to fabricating data.

Aneha, 49, has previously admitted fabricating data for nearly 100 apartment buildings and hotels to cut costs for contractors out of fear that he would lose their business.

/...

[ozymandius]

10. Fed sees mixed picture for US economy

The US economy is expanding at an uneven pace amid a cooling of the housing and car markets, with inflation pressures easing in some cases, a Federal Reserve report showed last night.

The widely watched Beige Book survey, used by the central bank for its policymaking meetings, appeared to confirm the world's largest economy is cooling but not collapsing.

The once red-hot residential property market 'weakened throughout the nation, but commercial real estate and construction strengthened in most districts,' the Beige Book said. Home prices were 'relatively flat or declining' in many areas, especially in the 'high end of the market,' the report added.

-cut-

'Some slowing in economic growth was seen in the Boston, New York, Philadelphia, Kansas City, and Dallas districts, though Dallas still characterized growth as strong. Most other districts reported continued modest growth, though Atlanta described activity as 'mixed,' Richmond observed that growth was 'slow,' while San Francisco noted a 'solid' growth pace,' the report said.

http://www.rte.ie/business/2006/0907/fed.html

[54anickel]

23. Fed Says Difficult for Companies to Pass Along Energy Costs

http://www.bloomberg.com/apps/news?pid=20601087&sid=ae27ZRY.F_z8&refer=home

Sept. 6 (Bloomberg) -- The Federal Reserve said companies last month had difficulty passing along higher energy prices to customers as economic growth slowed in some areas, adding to the case for keeping interest rates unchanged.

Consumer spending rose ``slowly'' in most of the country, given a ``uniformly weak'' housing market, while some Fed districts reported ``scattered labor shortages and associated upward wage pressures'' in professions such as technology and trucking, the central bank said in its regional survey known as the beige book for the color of its cover.

The report may reflect the expectations of Fed officials, who on Aug. 8 left the benchmark U.S. interest rate at 5.25 percent, ending two years of increases, on hopes inflation would ease. Investors see little chance the Fed will raise rates again this year. Central bankers have suggested they will resume increases if higher inflation persists.

``Manufacturers found little ability to pass through higher costs into the prices of manufactured goods,'' even with ``widespread'' reports of ``sustained increases in the cost of metals, energy and petroleum-based products and other raw materials,'' the Fed said today.

more...

[ozymandius]

12. Have a great day folks!

And a great morning. :donut: :donut: :donut:

This thread is always a great read when I arrive home from work. Thanks to everyone who contributes to the discussion and information gathering.

Ozy :hi:

[Ghost Dog]

13. Cheers, Ozy!

Getting interesting gain recently, indeed :hi:

[Ghost Dog]

14. ADB upgrades economic growth forecasts for Asia

http://www.mb.com.ph/BSNS2006090773791.html

(Asia Development Bank)

China and India are expected to push developing Asia’s economic growth to a better than expected 7.7 percent this year despite high oil prices, the Asian Development Bank said in a report released yesterday.

The forecast is contained in an update of the Philippines-based lender’s annual publication, the Asian Development Outlook, which had projected 7.2 percent and 7.0 percent growth for this year and next in its earlier edition published on April 6.

The region’s outlook "is supported by strong performances by (China) and India, since together these two economies account for over 50 percent of regional GDP (gross domestic product)," it said.

China’s economy, which grew at 10.9 percent in the six months to June is now expected to grow by 10.4 percent for the entire year and 9.5 percent in 2007, higher than the ADB’s original forecasts of 9.5 percent and 8.8 percent, respectively.

India’s 2006 growth forecast was upgraded by 0.2 percentage points to 7.8 percent amid buoyant export growth, while the 2007 forecast of 7.8 percent was maintained.

"The remaining economies of Asia are expected to grow by more modest averages" of 5.5 percent this year and 5.1 percent in 2007, it added.

<snip>

The report said East Asia grew at a fast tempo and was expected to hit 8.2 percent for the whole year, reflecting greater than expected strength of fixed investment and exports in China, which also lifted Hong Kong.

South Asia should grow by 7.5 percent this year after averaging 7.7 percent annually since 2002, outpacing Southeast Asia by about two percentage points and almost matching that of East Asia, it said. (AFP)

[Demeter]

15. Enron Continues---Legal Manuveurs Pro and Con Via NYTimes

--------------------------------------------------------------------------------

http://www.nytimes.com/2006/09/07/business/07lay.html?_r=1&oref=slogin&pagewanted=print
September 7, 2006

U.S. Seeking Shift in Law in Lay’s Case

By ALEXEI BARRIONUEVO

The Justice Department has asked Congress to help it make one more attempt at recovering more than $40 million from the estate of Kenneth L. Lay, the former chief executive of Enron who was convicted of fraud and then died of a heart attack before he could be sentenced.

The department said it was opposing the long-accepted practice of federal courts to throw out convictions of criminal defendants who die while an appeal is pending, saying the practice strips the government of its ability to collect money or civil fines.

In a motion filed on Wednesday, the Justice Department said it was asking Congress to pass a law drafted by government lawyers that would amend the criminal code and do away with the “doctrine of abatement” that has stymied efforts to collect funds from the families of dead defendants.

The doctrine originally arose to preclude further collection of fines after the death of a defendant but grew to include the “radical relief of vacating otherwise valid verdicts, pleas, and judgments and the dismissal of the valid indictments on which they are based,” the government said in the motion.

The proposed law, if adopted, would be retroactive to July 1 and would apply to Mr. Lay’s case.

--------------------------------------------------------------------------------

http://www.nytimes.com/2006/09/07/business/07legal.html
September 7, 2006
Ex-Officials of Justice Dept. Oppose Prosecutors’ Tactic in Corporate Criminal Cases

By LYNNLEY BROWNING

A group of former top Justice Department officials have asked the United States attorney general to curtail the tactics of federal prosecutors that encourage companies and people to disclose legal communications to avoid indictment.

The unusual request, in a letter delivered Tuesday to Attorney General Alberto R. Gonzales, is the latest attack upon prosecutorial guidelines that were adopted after the collapse of Enron and other corporate scandals. Any revision to the guidelines would change the way the government pursues white-collar cases.

The letter was signed by Richard L. Thornburgh, an attorney general under Presidents Ronald W. Reagan and George H. W. Bush, and by Kenneth W. Starr, a former solicitor general, as well as by eight others, including three former deputy attorneys general.

It was released a week before the Senate Judiciary Committee is scheduled to hold a hearing on the disclosure of communications between lawyers and clients.

MAKES ME WONDER WHAT THORNBURGH HAS TO HIDE!


--------------------------------------------------------------------------------
http://www.nytimes.com/2006/09/02/business/02enron.html

September 2, 2006

Former Enron Executive Seeks to Withdraw His Guilty Plea

By BLOOMBERG NEWS

HOUSTON, Sept. 1 (Bloomberg News) — A former executive of the Enron Corporation has asked a judge to let him withdraw a guilty plea because he was charged under the same legal theory rejected by an appeals court in reversing four other Enron-related convictions.

The former executive, Christopher F. Calger, a former vice president at Enron’s energy trading division, said in a filing on Thursday in Federal District Court in Houston that his 2005 plea should be withdrawn because he did what his supervisors asked him to do for Enron’s benefit.

Mr. Calger, like four investment bankers at Merrill Lynch & Company, was accused of depriving Enron of his “honest services.” The convictions of the bankers were thrown out last month.

Mr. Calger may be the first of several former Enron executives who were charged under the same theory to ask for review of their cases, a former prosecutor said.



THIS LAST ITEM SUGGESTS THAT THE DAILY COUNT ON CONVICTED EXECS. MAY HAVE TO BE REDUCED SOON.

[Ghost Dog]

17. US stock futures fall as inflation, housing weigh

http://today.reuters.com/news/articleinvesting.aspx?type=bondsNews&storyID=2006-09-07T114250Z_01_N07214186_RTRIDST_0_MARKETS-STOCKS-CORRECTED.XML

NEW YORK, Sept 7 (Reuters) - U.S. stock futures pointed to a lower market open on Thursday on persistent concerns over global inflation and further signs of a deterioration of the U.S. housing market.

Stocks fell on Wednesday, with the Nasdaq posting its sharpest drop in seven weeks, as investors dumped shares on signs that wage inflation may force the Federal Reserve to lift interest rates again.

"Inflation fears around the world are being highlighted," said Peter Cardillo, chief market analyst and chief strategist at SW Bach and Co. in New York, citing Wednesday's news of higher-than-expected labor costs and comments from the European Central Bank on increasing inflation risks.

While risks to the growth outlook were balanced in the short term, inflation risks pointed up, said Yves Mersch, an ECB Governing Council member.

Inflation pressures were chiefly due to the impact of high oil prices and wage rises.

/...

[skids]

18. Wage inflation? Where at?

I gotta get me some of that!

[Ghost Dog]

20. Um, like yesterday's Fed 'Beige Book'? It says here:

On the inflation front, the report said wage pressures were seen in some areas but they were "most often limited to certain sectors and most pronounced for workers with specialized skills."

...Yeah, sure, for example CEOs with special skills in negotiating their own pay, pensions, 'golden handshakes' and the like... ...Or maybe those 'clever' enough to marry into the boss's family...

...Or maybe they mean all those privatised 'special forces' 'security contractor' personnel...

ed. Ah, and hedge funds. Hedge funds! Set yourself up as a high-powered hedge fund manager, (& screw them all) of course!

[UpInArms]

19. daily dollar watch

http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Last trade 85.44 Change +0.39 (+0.46%)

Dollar Strengthens on Sustained Inflationary Risks

http://www.dailyfx.com/story/dailyfx_reports/daily_fundamentals/Dollar_Strengthens_on_Sustained_Inflationary_1157576227962.html

US Dollar -

It was dollar strength yet again on the day as traders continued to pare back positioning in dollar shorts and higher unit labor costs confirmed the still looming pressures of inflation in theUS economy. According to the US Labor Department, workers have been paid a higher level of compensation to offset the higher rate of productivity that has been witnessed in the quarter. Nonfarm productivity rose 1.6 percent, in line with consensus figures and higher than the 1.1 percent witnessed in the previous period. As a result, with a higher rate of business productivity, unit labor costs have risen, 4.9 percent, rising above the 4 percent forecasted by the market. Increasing unit labor costs are suggestive that inflation may continue to persist in the world’s largest economy, fueling higher rates of spending as consumers now have more disposable income on higher pay rates. Granted, the figure doesn’t necessarily translate into an automatic decision by the Federal Reserve, but it will likely keep policy makers on their toes come year end. Already signaling a potential end to the overall tightening scheme that has preoccupied the markets for the past two years, the central bank will likely keep this piece of information in reserve as they wait for further signals from upcoming economic data. The market seems to have settled on the notion as futures contracts are pricing in a thin likelihood that rates will continue to rise before December.

...more...

[Ghost Dog]

22. Euro Down Across The Board Despite High German Data Early Thursday

http://www.tradingmarkets.com/.site/news/FOREX%20NEWS/361271/

(RTTNews) - The Euro weakened against most other major currencies early Thursday in New York trading. This came as German industrial production data printed higher than the market consensus. Industrial production for the month of July rose 1.2%, compared to a 0.4% decrease in June.

<snip> The Euro dropped to 1.2708 against the dollar, its lowest level since August 14. This came as the market awaits remarks by the Fed's Yellen on economic outlook later in the day. As of 9 am ET, the Euro was worth 1.2708 dollars.

Meanwhile, the Euro showed choppy trading against its Swiss counterpart. The pair remained in a tight range throughout overnight trading and into the early morning hours. This came as Swiss GDP data printed slightly below the market consensus. However, the Euro ticked down to a morning low of about 1.5807 against the franc. Soon after, the European currency traded up against the Swiss franc. As of 9 am ET, the Euro was worth 1.5834 francs.

Against the British pound, the Euro showed mixed trading. The Euro strengthened to a 3-week high of about 0.6806 against its British counterpart during the early morning hours. However, the European currency lost ground against the pound soon after and entered a low range. This came as the Bank of England released its decision to hold rates at 4.75%. As of 9 am ET, the Euro was worth 0.6791 of a pound.

In the meantime, the European currency dropped against its Japanese counterpart. The pair held steady throughout overnight trading and into the early morning hours. This came as the Japanese leading index printed in line with economists' estimates. However, the Euro lost ground against the yen soon after. The European currency edged down to 147.89 against the Japanese yen, its lowest level since August 13. As of 9 am ET, the Euro was worth 147.89 yen.

[54anickel]

25. Yen Jumps After Mirow Says IMF to Discuss Currency's Weakness

http://www.bloomberg.com/apps/news?pid=20601087&sid=azbMtITg7Vfs&refer=worldwide

Sept. 7 (Bloomberg) -- The yen jumped against the dollar and euro after German Deputy Finance Minister Thomas Mirow said the currency's weakness will be discussed when finance ministers and central bank governors meet in Singapore next week.

The yen rallied in April after Group of Seven officials said Asian countries, especially China, need to let their currencies strengthen and should rely less on exports. Japan's currency earlier weakened on speculation the country's central bank will tomorrow leave interest rates unchanged, prompting investors to buy higher yielding assets abroad.

``There's growing unease outside Japan about the yen's weakness and government officials will have something to say about it,'' said Carsten Fritsch, a currency strategist at Commerzbank AG in Frankfurt. ``People were caught a bit off guard by the comments and they're pushing the yen higher.''

The yen traded at 116.21 against the dollar at 10:20 a.m. in London, compared with 116.65 late yesterday in New York. It also traded at 148.59 per euro from 149.39.

The yen has slid 6 percent since reaching 109 per dollar on May 17, the highest since September 2005. It also dropped to a record 150.73 versus the euro on Aug. 31.

more...

[54anickel]

26. Boomers won't drive consumption

http://www.dallasnews.com/sharedcontent/dws/bus/columnists/all/stories/0907dnbusDiMartino.2f8929f.html

snip>

"Baby boomers do not drive consumption. Baby boomers trade. We trade one house for another; one car for another; one office for another. The group that drives consumption are the people who go from zero to one."

Absent this entry-level age group, pricing power dries up.

What a simple concept. Too bad it's lost on the current generation of corporate America, because it's certainly not lost on the 77 million or so baby boomers.

A 57-year-old recently retired Rhode Island reader e-mailed to say that his cohorts are generally looking to downsize to 1,800-square-foot ranch homes or single-level condominiums.

He suggested that the builders who insist on erecting 6,000-square-foot McMansions are missing a huge segment of the market and would be well served by reading AARP magazine.

A few days ago, a reader from Missouri echoed this sentiment, saying a soft landing is simply not in the cards for the economy this time around, that "the demographics show that there's nowhere for the economy to 'land.' "

more...

[AnneD]

45. Hubby and I have been looking...

for a nice home, townhome, or condo that would be within our budget. There are none. All that is out there are McMansions which I refuse to buy and the only mortagages they offer us (due to our modest income)for the McMansion's are ARM's (not on your life). Anything like a fixer upper is either out in the boonies or in a drug infested area in town. We just want something small like a 2 bedroom, close in the city with a small yard for my Westhighland terror and small mutt.

We came to an agreement last night that we would live in out little appartment (that is so conviently located) until we are ready to retire in 7 years. We will have a sizeable chunk of money and will be able to buy a house outright or construct one to our likeing in whatever country we end up in. Our rent is only $445 so we feel no need to buy until we are debt free.

[54anickel]

49. Sounds like a wise decision to hold off, at least for now. Your rent

would be considered dirt cheap in these parts. "Debt free is the way to be" if you can pull it off in this day and age. Used to be (way back in the old days) that the only acceptable debt was the home mortgage. Now days with the high cost of education and student loans, the high cost of autos and the increasing need for one due to urban sprawl and sadly lacking public transport through most of the country - debt free ain't quite so easy. Take the cultural changes into consideration such as instant gratification, the social acceptability of debt and the "need" to keep up with the Jones and it becomes nearly impossible.

[Ghost Dog]

51. That concept of 'build your own', eventually, is interesting.

We've been thinking some along those lines here (though Rosa's just too preoccupied now with her mother and her evil sister).

But me, I'm basically a geographer/ecologist. I've been thinking about it, doing some exploring, looking for the right place (eg. natural water supply, well above sea-level, geological stability, a not-too-corrupt local authority and a little fertile land) and researching some eco-oriented architects.

Actually, I understand that a well-developed natural cave may be one of the most intelligent options :hippie:

[AnneD]

55. We have not used...

a credit card in 3 years and we have had all kinds of emergencies. So yes 54anickel, it can be done. And about instant gratification....nothing I could ever buy would make me feel as good or give me the peace of mind at night as knowing I I was debt free.

GhostDog, my sympathies to Rosa, I have an evil sister too. Make up a batch of sangria and I can swap some tales.

I have gone spelunking and yes, a cave is an excellent choice, providing it is not occupied by you know who. Constant temp year round, ecological, etc. Good choice. We may not be in this country if thing don't change. I am looking for a good progressive country with a nice large young population, good supply of raw materials, developed, where the dollar goes a little further, and a national health care system is in place.

I want to be located near good medical facilities (I am getting older you know)in an affordable spot with a small back yard where I can do a bit of gardening. Nothing fancy. An eco friendly house sounds great....

[Ghost Dog]

27. Canada dollar steady after data, bonds tilt lower

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2006-09-07T133641Z_01_N07231559_RTRIDST_0_MARKETS-CANADA-DOLLAR-BONDS.XML

TORONTO, Sept 7 (Reuters) - The Canadian dollar was little changed versus the U.S. dollar on Thursday despite weaker-than-expected domestic building permits data as dealers focused on the key Canadian jobs report due out on Friday.

Domestic bond prices extended losses from the previous session when the Bank of Canada failed to close the door on further interest rate tightening.

At 9:20 a.m. (1320 GMT), the Canadian unit was at C$1.1059 to the U.S. dollar, or 90.42 U.S. cents, down from C$1.1055, or 90.47 U.S. cents, before the data arrived.

/...

[Ghost Dog]

28. Toronto stocks open lower as selloff continues

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2006-09-07T135031Z_01_N07238459_RTRIDST_0_MARKETS-CANADA-STOCKS.XML

TORONTO, Sept 7 (Reuters) - The Toronto Stock Exchange's main index opened lower on Thursday, extending sharp losses from the previous session, amid a broad-based retreat sparked by weak crude oil prices as well as worries over inflation.

Shortly after the open, the Toronto Stock Exchange S&P/TSX composite index <.GSPTSE> was down 61.08 points, or 0.5 percent at 11,938.66. Eight of the TSX index's 10 main groups lost ground.

Shares of gold miners, part of the materials sector, fell 2 percent on soft bullion prices.

Barrick Gold (ABX.TO: Quote, Profile, Research) was down 63 Canadian cents, or 1.7 percent, at C$36.47. The influential energy group was down 0.6 percent as oil prices were steady around $67.60 a barrel following a sharp three-day decline.

<snip>

The key S&P/TSX composite index <.GSPTSE> tumbled nearly 200 points on Wednesday, as continued weakness in crude oil prices triggered a broad selloff on the resource-heavy Canadian bourse after a four-session rally.

/...

[Ghost Dog]

29. NY gold sinks more than 2 pct to near 1-week low

http://yahoo.reuters.com/news/articlehybrid.aspx?type=comktNews&storyID=2006-09-07T134448Z_01_N07388006_RTRIDST_0_MARKETS-GOLD-COMEX-URGENT.XML

NEW YORK, Sept 7 (Reuters) - Gold futures in New York sank more than 2 percent to a near one-week low Thursday morning as investors trimmed holdings in metals due to a firmer U.S. dollar and sluggish oil prices.

At the COMEX division of the New York Mercantile Exchange, December delivery gold <GCZ6> was down $12.00 or 1.9 percent at $629.80 an ounce by 9:38 a.m. EDT (1338 GMT) moments after bottoming at $628.50 which marked its lowest since Friday.

/...

[Ghost Dog]

30. (US) Stocks drop on economic slowdown worries

http://news.yahoo.com/s/ap/20060907/ap_on_bi_st_ma_re/wall_street

Wall Street, already armed with recent economic data pointing to a housing slowdown, was forced to digest sour anecdotal evidence as well. Beazer Homes USA Inc., Hovnanian Enterprises Inc. and KB Home warned that the home-building sector is facing difficulties including cancellations and spikes in inventories.

The major indexes, which all showed declines Wednesday, gave up further ground Thursday. The Nasdaq composite index on Wednesday posted its largest single-day point drop in more than a month amid concerns of rising labor costs and slowing growth in some of the nation's regions.

In the first hour of trading, the Nasdaq fell 8.77, or 0.40 percent, to 2,159.07.

The Dow Jones industrial average fell 37.62, or 0.33 percent, to 11,368.58, and the Standard & Poor's 500 index was off 4.43, or 0.34 percent, at 1,295.83.

Bonds fell, with the yield on the benchmark 10-year Treasury note falling to 4.82 percent from 4.80 percent late Wednesday. The yield hit a five-month low of 4.73 percent Friday. The dollar was mixed compared with most major currencies, while gold fell.

The Russell 2000 index of smaller companies was down 3.79, or 0.53 percent, to 708.25.

/...

[54anickel]

35. Wealthy Americans cautious on retirement investing

http://today.reuters.com/news/articleinvesting.aspx?type=fundsNews2&storyID=2006-09-05T193912Z_01_N05362333_RTRIDST_0_FINANCIAL-FUND-RETIREMENT.XML

BOSTON, Sept 5 (Reuters) - Affluent Americans worry about losing their retirement savings to rising inflation and high health care costs but the painful memories of the bear market of 2000-2003 lead many to invest more conservatively, according to a study released on Tuesday.

A survey commissioned by asset manager MFS Investment Management found that more than half of the respondents nearing retirement age had no retirement income plan in place.

The poll contacted 400 pre-retirees and retirees with at least $100,000 in investable assets each and who use paid financial advisors.

The survey found 35 percent of pre-retirees who were at least 55 years old and 40 percent of retirees who were as old as 75 report that they are investing more conservatively as a result of the bear market.

snip>

Retirees who started planning before age 35 on average retired at age 58 compared with age 60 for those who started planning at 45 and over, the survey said.
:eyes: And just what exactly is that supposed to be proof of? I mean, when did do this planning, when did they retire, what income bracket did they fall into, was this before or after the NAS bust, etc, etc, etc. Sounds like just another coax for the younger crowd to "run, don't walk" to the nearest Ponzi table. "We need more players!!!"

more...

[54anickel]

38. 10:38 numbers and yada - Technical goals defined for the day.

Dow 11,358.81 -47.39 (-0.42%)
Nasdaq 2,156.52 -11.32 (-0.52%)
S&P 500 1,294.86 -5.40 (-0.42%)
10-yr Bond 4.813 +0.012 (+0.25%)
30-yr Bond 4.961 +0.009 (+0.18%)
NYSE Volume 542,365,000
Nasdaq Volume 467,207,000

10:30 am : Indices extend their reach to the downside as sellers remain in complete control of the early action. Adding to the market's recent struggles has been the inability by the Dow, S&P 500 and Nasdaq to find support above key technical levels of 11350, 1295 and 2155, respectively. Separately, July wholesale inventories rose 0.8% as sales rose by just 0.4% after the 1.5% average through the second quarter. However, the report has been largely overlooked, since the sales figures say close to nothing about personal consumption, as traders wait to see what sort of impact the Energy Dept.'s upcoming weekly oil report will have on energy prices.DJ30 -61.07 NASDAQ -17.23 SP500 -7.00 NASDAQ Dec/Adv/Vol 1902/625/422 mln NYSE Dec/Adv/Vol 2180/672/304 mln

10:00 am : Market is still on the defensive as the bulk of industry leadership remains negative. Pacing the way lower is Materials (-1.0%), led by weakness in Coal & Consumable Fuel (-1.9%), Steel (-1.5%), Construction Materials (-1.4%) and Forest Products (-1.2%) -- four of this morning's 10 worst performing S&P groups. Technology's 0.6% decline, though, is having a much larger impact on the overall market, as evidenced by the Nasdaq again leading the way lower (-0.6%) among the majors. Computer Hardware (-1.6%) remains the weakest link, as Palm's sales warning prompts multiple analyst downgrades, while semiconductors are also getting hit as ATYT's warning weighs even more heavily on its acquirer Advanced Micro Devices (AMD 24.16 -0.37). DJ30 -38.82 NASDAQ -12.51 SP500 -4.17 NASDAQ Dec/Adv/Vol 1639/635/230 mln NYSE Dec/Adv/Vol 1666/478/162 mln

09:40 am : Stocks open modesty lower as the bears continue to look for excuses to take some profits off the table after such a surprisingly huge rally in August. With seasonally weak September being the final month of the quarter and thus typically accompanied by companies that are likely to miss Wall Street forecasts, profit warnings from KB Home (KBH 38.61 -1.78) and Beazer Homes (BZH 37.00 -1.47), coupled with lowered sales expectations from ATI Technologies (ATYT 21.14 -0.26) and Palm (PALM 14.38 -1.15), are combining to give sellers more motivation to keep locking in recent gains. DJ30 -35.70 NASDAQ -9.24 SP500 -3.61 NASDAQ Vol 99 mln NYSE Vol 74 mln

[54anickel]

40. Joni Mitchell Fights Miner to Keep Canadian Paradise Unpaved

http://www.bloomberg.com/apps/news?pid=20601082&sid=aa82vSCh9MMU&refer=canada

Sept. 7 (Bloomberg) -- Canadian folk singer Joni Mitchell, whose first hit 36 years ago was about the perils of paving paradise, is trying to prevent a London miner from muscling in on her piece of it.

Pan Pacific Aggregates Plc plans to build a $100 million industrial-rock mine on British Columbia's Sunshine Coast, where mild temperatures and a rugged shoreline attract vacationers and retirees from around the world.

The quarry would take an ``incredibly beautiful area of wildlife and turn it into an industrial moonscape,'' Mitchell said in a telephone interview from Los Angeles. The singer gained fame in 1970 for ``Big Yellow Taxi,'' whose lyrics railed against developers who ``paved paradise and put up a parking lot.''

Mitchell, 62, is one of more than 4,000 people who signed petitions circulated by two groups opposing the mine. One of them, Save Our Sunshine Coast, led an armada of 70 yachts and sailboats along the coast in July to protest Pan Pacific's plan.

The retirees and second-home owners are facing off against workers who say the region needs the jobs the mine would bring. As the economy shifts toward tourism and retirement services, it's generating jobs that pay less than loggers and mill workers have made.

more...

[54anickel]

41. U.S. Stocks Fall on Housing Slump; KB Home, Beazer Homes Drop

http://www.bloomberg.com/apps/news?pid=20601103&sid=a9oiRI5aftgk&refer=us

Sept. 7 (Bloomberg) -- U.S. stocks dropped for the second day after two homebuilders cut their earnings forecasts, fueling concern that the housing slump may curb economic growth.

KB Home, the sixth-largest U.S. homebuilder, and Beazer Homes USA Inc. slid after the companies said profit will fall short of earlier forecasts as demand wanes. Palm Inc., the maker of Treo mobile phones, declined after first-quarter sales missed the company's forecast.

``The housing bubble is breaking pretty hard here,'' said Michael Bugno, president of equity strategies at Chicago Futures Group. ``Investors are going to get pretty nervous about the economy. It's not going to be market friendly.''

snip>

Shares of homebuilders have plunged 36 percent this year as rising prices and borrowing costs have pushed many Americans out of the housing market.

The real estate slowdown helped convince Federal Reserve policy makers to keep the benchmark lending rate at 5.25 percent last month and central bankers have said they are watching whether the downturn will limit economic expansion.

more...Yellen's due out this afternoon

[TrogL]

46. Loonie Watch

Highlights

Current:



30-day and 90-day vs.greenback:



30-day vs. Euro, Yen, UK Pound and Swiss Franc




Currency Comparison: http://members.shaw.ca/trogl/looniewatch.html

Detailed analysis: http://quotes.ino.com/exchanges/?r=CME_CD

Up-to-the-minute graph: http://quotes.ino.com/chart/?s=CME_CD.H06&v=s

Historical values http://www.x-rates.com/d/USD/CAD/data30.html

2006-08-07 Monday, August 7 0.894294 USD
2006-08-08 Tuesday, August 8 0.892618 USD
2006-08-09 Wednesday, August 9 0.893096 USD
2006-08-10 Thursday, August 10 0.887942 USD
2006-08-11 Friday, August 11 0.892379 USD
2006-08-14 Monday, August 14 0.88968 USD
2006-08-15 Tuesday, August 15 0.890869 USD
2006-08-16 Wednesday, August 16 0.896057 USD
2006-08-17 Thursday, August 17 0.896057 USD
2006-08-18 Friday, August 18 0.890155 USD
2006-08-21 Monday, August 21 0.894214 USD
2006-08-22 Tuesday, August 22 0.89662 USD
2006-08-23 Wednesday, August 23 0.900901 USD
2006-08-24 Thursday, August 24 0.90009 USD
2006-08-25 Friday, August 25 0.90269 USD
2006-08-28 Monday, August 28 0.899281 USD
2006-08-29 Tuesday, August 29 0.90009 USD
2006-08-30 Wednesday, August 30 0.900982 USD
2006-08-31 Thursday, August 31 0.903669 USD
2006-09-01 Friday, September 1 0.904486 USD
2006-09-04 Monday, September 4 0.904486 USD
2006-09-05 Tuesday, September 5 0.900009 USD
2006-09-06 Wednesday, September 6 0.904814 USD


Current values

Last trade 0.9011 Change -0.0035 (-0.39%)
Previous Close 0.9046 Open 0.9046
Low 0.9010 High 0.9046


Blather (from http://quotes.ino.com/exchanges/?r=CME_CD)

The September Canadian Dollar was lower overnight as it consolidates some of Wednesday’s rally but remains above the 10-day moving average crossing at .9031. Stochastics and the RSI are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at .8986 would confirm that a short-term top has been posted. If September extends this summer’s rally, the reaction high crossing at .9076 is the next upside target. Overnight action sets the stage for a lower opening in early-day session trading.


Analysis

I feel old. The little CAN graphic at the top is scaled so I can see par. I remember the last time the loonie was at par. I grew up in Niagara Falls, Ontario so we often had the exchange rate on our minds. We'd run over to the States for cheap gas and even though the greenback was below par, we took it at face value to promote tourism. Pity they wouldn't do the same thing.

I was listening to the CBC yesterday and the loonie's on the move because of changes in oil prices.

[54anickel]

53. My god - it's flatlined today.

[54anickel]

47. 1:38, heading into that "magical" hour. Bonds get a lift

Dow 11,369.30 -36.90 (-0.32%)
Nasdaq 2,167.32 -0.52 (-0.02%)
S&P 500 1,297.67 -2.59 (-0.20%)
10-yr Bond 4.787 -0.014 (-0.29%)
30-yr Bond 4.933 -0.019 (-0.38%)
NYSE Volume 1,363,822,000
Nasdaq Volume 1,166,091,000

1:30 pm : Market settles into a relatively tight trading range but selling remains widespread across most areas. Despite oil prices recently hitting fresh session lows below $67 a barrel, mixed August traffic results have left Airlines (-3.1%) as today's worst performing industry group. Gold (-3.0%) is a close second following an analyst downgrade on Newmont Mining (NEM 49.34 -1.57) while Internet Retail (-2.6%) and Fertilizers (-1.6%) -- two of last month's top ten performing S&P industry groups, are also among today's worst performers. DJ30 -48.11 NASDAQ -4.78 SP500 -4.35 NASDAQ Dec/Adv/Vol 1712/1146/1.14 bln NYSE Dec/Adv/Vol 2151/979/844 mln

1:00 pm : Recent recovery efforts are short-lived as the indices pull back from their best levels of the day. The loss of leadership from the Technology and Energy sectors, which have inched back below the flat line, are largely to blame for the market's inability to find support at improved levels. DJ30 -48.67 NASDAQ -5.44 SOX +0.2% SP500 -4.71 NASDAQ Dec/Adv/Vol 1658/1175/1.07 bln NYSE Dec/Adv/Vol 2095/1025/780 mln

12:30 pm : Major averages continue to sport modest losses as the afternoon session gets underway. However, the renewed wave of buying interest throughout the semiconductor space has been responsible for inching the Tech sector into positive territory and briefly lifting the Nasdaq into the green for the first time since Tuesday. Energy also turning the corner has helped the blue chip indices pare more of their losses while rebounds in retail and homebuilding have helped Consumer Discretionary also regain some upside leadership. The AMEX Housing Sector Index has erased a 2.5% pullback and turned positive due largely to a Q3 earnings surprise from Hovnanian Enterprises (HOV 26.70 +1.23). DJ30 -41.52 NASDAQ -1.20 SOX +0.9% SP500 -3.61 NASDAQ Dec/Adv/Vol 1521/1283/984 mln NYSE Dec/Adv/Vol 1962/1129/714 mln

12:00 pm : Market continues to languish in negative territory midday as a sense that stocks are overbought on a short-term basis invites another day of profit-taking.

With seasonally weak September being the final month of the quarter and thus typically accompanied by companies that are likely to miss Wall Street forecasts, profit warnings from KB Home (KBH 39.91 -0.48) and Beazer Homes (BZH 37.43 -0.94) have added to the market's angst about the pace of economic activity, especially in the cooling housing market.

While one could argue that concerns of a slowing economy are to blame for today's negative disposition, the more likely possibility, since ongoing evidence of an economic slowdown didn't seem to stall the huge run-up in stocks last month that lifted the blue chip averages to their best August performances in six years, is that the market is merely taking a breather after such an impressive and surprising rally during what is historically one of the worst months of the year for stocks.

The absence of sector leadership across the board has been most prevalent in Materials (-1.3%) but a 0.7% decline in the most influential of them all -- Financials, despite a turnaround in the bond market pushing yields to session lows, is having the biggest impact on the market, as evidenced by the Dow and S&P 500 now outpacing the Nasdaq to the downside.

The tech-heavy Composite, which was down as much as 0.9% earlier, has pared almost all of its losses and is close to turning positive following a turnaround in chip stocks. Semiconductors were weak all morning after lowered sales expectations from ATI Technologies (ATYT 21.38 -0.02) weighed heavily on its acquirer Advanced Micro Devices (AMD 24.67 +0.14). However, the latter recently inching into the green, coupled with solid performances from bellwether Apple Computer (AAPL 72.51 +2.48) and a four-year high on Oracle (ORCL 15.96 +0.34), continue to ease some of the concerns about valuations since there has been no real change in fundamentals to justify the market's recent sell-off. DJ30 -47.31 NASDAQ -2.12 SOX +0.3% SP500 -4.32 NASDAQ Dec/Adv/Vol 1694/1065/842 mln NYSE Dec/Adv/Vol 2165/897/616 mln

11:30 am : Not much has changed since the last update, at least for the blue chip averages. The Nasdaq, however, has more than halved its early losses, benefiting from a turnaround in Treasuries (i.e. the 10-yr note is now up 3 ticks, pushing the yield to 4.78% which improves the borrowing power of growth stocks) and strength from some influential tech leaders. Apple Computer (AAPL 71.75 +1.72) is surging 2.5% after UBS raised its price target to $92 from $80 while Oracle (ORCL 16.00 +0.38) breaking out to a more than four-year high has helped the tech-heavy Nasdaq improve its stance. DJ30 -63.12 NASDAQ -7.81 SP500 -6.31 NASDAQ Dec/Adv/Vol 1753/977/720 mln NYSE Dec/Adv/Vol 2177/841/532 mln

11:00 am : Major averages continue to languish near morning lows, failing to take advantage of a spike lower in oil prices. Within the last 30 minutes, crude oil futures slipped as low as $67.06 a barrel (-0.6%), a level not seen since the first week of April, following an unexpected build in gasoline supplies and a larger than anticipated build in distillates. While oil's decline bodes well for consumers, the absence of leadership in the Energy sector -- the biggest profit engine for the S&P 500 over the last several quarters -- has only added to uncertainty about earnings prospects amid continued signs of an economic slowdown. DJ30 -60.36 NASDAQ -11.62 SP500 -6.33 XOI -1.0% NASDAQ Dec/Adv/Vol 1851/806/572 mln NYSE Dec/Adv/Vol 2166/765/420 mln

[54anickel]

54. 3:08 and playin' hot potato heading into the close

Dow 11,342.89 -63.31 (-0.56%)
Nasdaq 2,160.71 -7.13 (-0.33%)
S&P 500 1,295.44 -4.82 (-0.37%)
10-yr Bond 4.799 -0.002 (-0.04%)
30-yr Bond 4.942 -0.01 (-0.20%)
NYSE Volume 1,793,385,000
Nasdaq Volume 1,513,272,000

3:00 pm : Indices slip to afternoon lows after remarks from San Francisco Fed President Yellen fail to live up to their typically dovish disposition. As a voting member of the FOMC, Yellen saying that with inflation already above her comfort zone, the Fed must be ready to hike rates again if necessary, which is reflective of a more hawkish tone than the market is used to hearing from her. DJ30 -42.12 NASDAQ -0.59 SP500 -2.52 NASDAQ Dec/Adv/Vol 1638/1288/1.48 bln NYSE Dec/Adv/Vol 1985/1207/1.12 bln

2:30 pm : Market remains mixed but is currently off its best levels after the market gets wind that Richmond's Jeffrey Lacker was not the only Federal Reserve President calling for a rate hike increase at the August 8 FOMC meeting. Recently appointed Philadelphia Fed President Charles Plosser also requested the Fed increase rates; however, since Plosser is not a voting member, knowledge of his dissention was not publicly known until now. DJ30 -35.64 NASDAQ +1.67 SP500 -1.86 NASDAQ Dec/Adv/Vol 1506/1395/1.35 bln NYSE Dec/Adv/Vol 1874/1296/1.02 bln

2:00 pm : Major averages now trade in split fashion as bargain hunters returning from the sidelines spike the indices to session highs. A 0.7% advance in Consumer Discretionary, as Homebuilding of all areas is now turning in the best performance of the day (+2.5%), is providing the bulk of market support. Heavily shorted homebuilders like KB Home (KBH 41.27 +0.88), which was off as much as 4.3% on the heels of its profit warning, is now up 2.2%, as a sense that a bottom has formed in the year's worst performing S&P industry group (-35.8%) sends the shorts running for cover. DJ30 -17.21 NASDAQ +6.11 SP500 +0.66 NASDAQ Dec/Adv/Vol 1607/1275/1.27 bln NYSE Dec/Adv/Vol 1999/1162/944 mln

1:30 pm : Market settles into a relatively tight trading range but selling remains widespread across most areas. Despite oil prices recently hitting fresh session lows below $67 a barrel, mixed August traffic results have left Airlines (-3.1%) as today's worst performing industry group. Gold (-3.0%) is a close second following an analyst downgrade on Newmont Mining (NEM 49.34 -1.57) while Internet Retail (-2.6%) and Fertilizers (-1.6%) -- two of last month's top ten performing S&P industry groups, are also among today's worst performers. DJ30 -48.11 NASDAQ -4.78 SP500 -4.35 NASDAQ Dec/Adv/Vol 1712/1146/1.14 bln NYSE Dec/Adv/Vol 2151/979/844 mln

1:00 pm : Recent recovery efforts are short-lived as the indices pull back from their best levels of the day. The loss of leadership from the Technology and Energy sectors, which have inched back below the flat line, are largely to blame for the market's inability to find support at improved levels. DJ30 -48.67 NASDAQ -5.44 SOX +0.2% SP500 -4.71 NASDAQ Dec/Adv/Vol 1658/1175/1.07 bln NYSE Dec/Adv/Vol 2095/1025/780 mln

[UpInArms]

56. peeking in to sweep the floor and close the door

Dow 11,331.44 -74.76 (-0.66%)
Nasdaq 2,155.29 -12.55 (-0.58%)
S&P 500 1,294.02 -6.24 (-0.48%)
10-Yr Bond 4.795 -0.006 (-0.12%)

NYSE Volume 2,332,069,000
Nasdaq Volume 1,897,338,000

Stocks closed lower for a second straight session as a belief that stocks are overbought at current levels invited another day of profit-taking.

Kicking things off on a sour note were lowered earnings outlooks from KB Home (KBH 40.42 +0.03) and Beazer Homes (BZH 37.33 -1.04), which wasn't all that surprising. Since seasonally weak September is the final month of the quarter, it is typically accompanied by profit warnings and homebuilders continue to cut their growth forecasts. Nonetheless, even though ongoing evidence of an economic slowdown didn't seem to impede an impressive rally in August, more evidence of a slowing economy today provided an excuse to take some more profits off the table.

Strangely though, underlying concerns about the pace of economic activity, especially in a housing market that continues to cool, actually weighed more heavily on the banks and mortgage lenders responsible for funding years of housing expansion, not homebuilders. To wit, the most influential of the 10 economic sectors -- Financials -- was down 0.7%, which was second only to a 1.1% decline in a Materials sector that ranks last on the depth chart in terms of total weighting on the S&P 500. Throw in the fact that Homebuilding is among the most heavily shorted areas, since it still ranks as this year's worst performing S&P industry group (-38%), and the share prices of stocks like KBH and BZH had 7% swings to turn positive, which helped Homebuilders briefly log the top spot among today's best performers.

Technology was another influential leader to the downside as valuations came into question after the sector led the way last month with a strong 8.4% advance, which helped the Nasdaq log a 4.4% gain.

Also weighing on sentiment Thursday and prompting the bulls to take a breather were surprisingly hawkish comments from San Francisco Fed President Yellen who, after saying inflation is "a bit above my comfort zone" and that central bankers have "a bias toward further firming," did not live up to her typically dovish disposition and consequently spooked buyers into standing pat. DJ30 -74.76 NASDAQ -12.55 SP500 -6.24 NASDAQ Dec/Adv/Vol 1924/1068/1.88 bln NYSE Dec/Adv/Vol 2161/1083/1.47 bln

I'm gonna be pretty scarce for the next few days - a few minutes in the morning and off again I will go - miss you all - hopefully I will see you more next week!