US Dollar Index Fails to Clear Support, Breaks Above a Declining Channel
[unable to retrieve full-text content]Forex Technical Update USD Index daily chart 5/2/2012 The daily USD Index chart shows a market that has been flattened after a rally from Aug. 2011 to Jan. 2012. In April, the market fell from about 80.40 down to a previous support pivot near 78.80 ForexNews.com
Rabu, 02 Mei 2012
Euro’s Economic Woes Continue to Haunt as US Dollar Leads Majors
Euro’s Economic Woes Continue to Haunt as US Dollar Leads Majors
Fundamental Headlines
- Euro-area Unemployment at 15-year High as Slump Deepens â€" Bloomberg
- Yen Surges Past Dollar as Pre-NFP Labor Market Reading Disappoints â€" DailyFX
- Factory Orders Suffer Largest Drop in 3 Years â€" Reuters
- Europe Stocks Fall on Downbeat Data â€" WSJ
- Treasury: No Decision on Floating-Rate Notes â€" WSJ
European Session Summary
Volatility is starting to pick back up. Volume has been light the past few days given the holidays across Asia and Europe, which has yielded tighter ranges despite significant developments on the economic front across the globe the past few days. However, Wednesday’s price action, especially during the European/New York crossover session, has taken on a more familiar feeling as liquidity has started to come back into the market.
With that said, the return of European liquidity hasn’t been positive for higher yielding currencies and risk-correlated assets. European traders have sold off the commodity currencies as global PMI data continues to disappoint overall (there have been some bright spots but the negative has outweighed the positive here) while the Australian Dollar has been hit hard the past few sessions following the Reserve Bank of Australia’s surprise 50-basis point rate cut yesterday.
To me, the big news out of Europe, one that has had a material impact on intraday trading today, is that the Euro-zone’s unemployment has broken to a fresh 15-year high. This comes as the German economy saw its unemployment rate tick up to 6.8 percent after the economy shed 19K jobs in April. The slow deterioration of the German labor market is collateral damage from slowed growth out of Germany’s major trading partners, mainly those within the Euro-zone itself. The poor print coupled with worse than expected Euro-zone PMI revisions has battered market confidence â€" market participants now turn to the European Central Bank tomorrow to see if new measures are unveiled at their monthly policy meeting.
Taking a look at credit, Greek, Italian, and Spanish 10-year bonds are trading sharply lower on the day, whose respective yields have risen to 19.882 percent, 5.533 percent, and 5.819 percent. On the shorter-end of the curve, Portuguese, Irish, and Spanish debt has continued to weaken, with the Portuguese 2-year note falling 15.4-basis points to a 6.840 percent yield.
EURUSD 5-min Chart: May 2, 2012
Charts Created using Marketscope â€" Prepared by Christopher Vecchio
Overall, the US Dollar was the top performer on the day, gaining 0.62 percent against the worst performers, the Euro and the Swiss Franc. The commodity currencies were weaker as well, with the Australian, Canadian, and New Zealand Dollars shedding 0.23 percent, 0.24 percent, and 0.49 percent, respectively, against the US Dollar. The Japanese Yen was the next strongest, down 0.10 percent.
24-Hour Price Action
Key Levels: 13:30 GMT
Thus far, on Wednesday, the Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) is trading higher, at 9892.13 at the time this report was written, after opening at 9861.90. The index has traded mostly higher, with the high at 9902.06 and the low at 9860.32.
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
Follow him on Twitter at @CVecchioFX
To be added to Christopher’s e-mail distribution list, send an e-mail with subject line "Distribution List" to cvecchio@dailyfx.com
ForexNews.comChina Life Insurance – ADR (LFC) – Bear of the Day
China Life Insurance â€" ADR (LFC) â€" Bear of the Day
We are downgrading our recommendation on China Life Insurance Co., Ltd. (LFC - Analyst Report) to Underperform from Neutral due to the lack of any significant growth catalyst amid the prevailing interest rate, market and currency risks. China Life's full year 2011 earnings declined steeply from the prior year, due to low premium income and increased impairment losses.
Operating cash flow also declined substantially due to increased claim expenses and adverse changes in the fair values of securities. Despite a strong brand name, significant competition on the domestic front limits earnings growth.
Our six-month target price of $ 36.00 equates to 25.9x our earnings estimate for 2012. Combined with the $ 0.81 per ADR annual dividend, this target price implies an expected total return of a negative 8.7% over that period. This is consistent with our Underperform recommendation on the ADRs.
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Read the full analyst report on LFC
ForexNews.comSelasa, 01 Mei 2012
How Stephen Harper is remaking the Canadian myth
How Stephen Harper is remaking the Canadian myth
Stephen Harper's contribution to a April 24, 2012 art auction in support of Canadian Olympians. Harper was sent a large gold maple leaf, which he sent back personalized with his signature and the words Go Canada Go. -Submitted image
Stephen Harper is reinventing Canada
The $ 20 bill is the most common currency in the land. The paper version in your wallet features Bill Reid’s iconic sculpture The Spirit of Haida Gwaii. The futuristic new polymer note, unveiled Wednesday, will honour the military instead.
On the first anniversary of Stephen Harper’s majority government, much attention has focused on tax and spending cuts, the law-and-order agenda, the Prime Minister’s promotion of free trade and the increasing estrangement of Quebec.
But the Conservatives are also bent on transforming the idea of Canada, by changing the national myth.
Many of this country’s most cherished symbols and values â€" the flag, the Charter of Rights and Freedoms, peacekeeping, public health care, multiculturalism â€" are the product of Liberal policies.
The Harper government seeks to supplement, or even supplant, those symbols with new ones, and old ones revived. These new symbols are rooted in a robust, even aggressive nationalism that celebrates the armed forces, the monarchy, sports, the North and a once overshadowed Conservative prime minister.
ForexNews.comVideo: Delta buys oil refinery
Video: Delta buys oil refinery
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Energy
AP Video
Published Tuesday, May. 01, 2012 5:31PM EDT
Delta Air Lines says it is buying an oil refinery for $ 150-million (U.S.), a move it hopes will save $ 300-million in fuel costs
ForexNews.comGold: What’s with the hysteria?
Gold: What’s with the hysteria?
If you’ve ever read some of the comments on this blog for articles about gold â€" particularly negative articles about gold â€" you’ll know that investors have strong opinions when it comes to the commodity. These opinions are certainly much stronger than for any stock, and they have always intrigued me: Why do gold investors get their backs up about views that run counter to their own?
More related to this story
The question becomes even more urgent with some of the commentary revolving around investor Whitney Tilson’s flip-flop on Barnes & Noble Inc. BKS-N Mr. Tilson had been short the stock (meaning that he stood to profit if the share price fell), but switched to a long position (meaning that he stood to profit if the share price rose) just before it struck a deal with Microsoft Corp. MSFT-Q that sent the shares up 52 per cent on Monday.
The reason for the switch? Mr. Tilson apparently read an interesting thesis on why Barnes & Noble was worth holding â€" ie, one that ran counter to his own thesis â€" and was convinced.
As Kid Dynamite noted on his blog, the “key to successful investing and trading, to me, is to seek out conflicting opinions rather than conforming opinions. When you do this, you can figure out what might be wrong with your thesis, and either gain a measure of comfort if the conflicting views are weakly formed, or change your view if they make a lot of sense. Tilson did the latter â€" I respect that.â€
Which brings us back to gold GC-FT. If reader comments on gold-related blog items is any indication (hey, maybe this post will bring a few fresh examples of what I’m talking about), gold investors are awfully sensitive to any view that challenges their own, and this can’t be healthy. It can’t be healthy for the gold market if investors’ views are entrenched, and it can’t be healthy for gold investors either if they refuse to accept that they just might be wrong â€" because eventually they will be.
Meanwhile, gold investors seem to love Ron Paul, who recently ran for the Republican presidential nomination. He has an extraordinarily high allocation to gold in his investment portfolio and has delivered extreme views on the role of gold in the monetary system, advocating for a return to the gold standard.
Yet, his debate on Bloomberg Television with Paul Krugman should give gold fans pause. As Mr. Krugman noted on his blog in response to the debate, “If Ron Paul got on TV and said “Gah gah goo goo debasement! theft!†â€" which is a rough summary of what he actually did say â€" his supporters would say that he won the debate hands down....â€
It’s called confirmation bias, and it’s not a great approach for investors.
ForexNews.comUK police hold 7 over qat "terrorism funding"
UK police hold 7 over qat "terrorism funding"
* Arrests part of parallel investigation with U.S. authorities
* Network suspected of exporting narcotic qat to north America
* Qat trade seen as funding source for militant groups (Adds background, details)
LONDON, May 1 (Reuters) - British police said on Tuesday they had arrested seven people on suspicion of financing terrorism overseas and money laundering through the illegal export of the narcotic qat to north America.
Six men and one woman were held in early morning raids in London, the Welsh capital Cardiff and in Coventry in the English midlands, police said.
The raids were part of an investigation run in parallel with the U.S. Homeland Security Investigations directorate into a network suspected of exporting qat to the U.S and Canada.
"The arrests were a part of a pre-planned, intelligence-led operation into suspected fund-raising for terrorism overseas," London's Metropolitan Police said.
Qat is grown and widely chewed in the Horn of Africa and in Yemen. It is habit-forming and excessive use can cause insomnia, stress, depression and apathy. The plant, whose leaves must be consumed fresh, is legal in Britain but is a controlled substance in the United States and Canada.
Police did not disclose the origin of the smuggled qat or where they believed the funding was targeted, but international authorities have previously said profits from the qat trade are used to finance militant groups like al Shabaab in Somalia.
A U.N. Monitoring Group report last year estimated qat traders using one Mogadishu airfield in an area controlled by al Shabaab would have paid the militant group around $ 500,000 in taxes over a 10-month period in 2010.
British police were also searching seven other residential properties in London, Coventry and Worthing on England's southern coast and business premises in Coventry. (Reporting by Tim Castle in London and David Clarke in Nairobi; Editing by Alessandra Rizzo)
ForexNews.comMitsui & Co., Ltd. UK Regulatory Announcement: Miscellaneous
Mitsui & Co., Ltd. UK Regulatory Announcement: Miscellaneous
LONDON--()--
This announcement is for our U.S. $ 5,000,000,000 Euro Medium Term Note Programme authorised by UKLA.
To Whom It May Concern
Mitsui & Co., Ltd.
Participation in Browse LNG Project in Australia
Mitsui & Co., Ltd. (“Mitsuiâ€) is pleased to announce that it is participating in Browse LNG Project (“Projectâ€) promoted by Woodside Petroleum (“Woodsideâ€) through Japan Australia LNG (MIMI) Pty Ltd (“MIMIâ€) which is a 50-50 joint venture between Mitsui and Mitsubishi Corporation (â€Mitsubishiâ€). Japan Australia LNG (MIMI Browse) Pty Ltd (“MIMI Browseâ€), subsidiary of MIMI, has signed the Sales and Purchase Agreement with Woodside Browse Ltd (“Woodside Browseâ€, subsidiary of Woodside) on April 30, 2012 (Western Standard Time in Australia). The closing of the transaction is expected in the third quarter of 2012, after the satisfaction of customary conditions including obtaining the Australian governmental approvals and other project partners’ waiver of their pre-emption rights.
The Project aims to commercialize natural gas and condensate from the Browse gas and condensate fields located off the coast of Western Australia. Gas and condensate will be brought to Kimberley, after which they will be processed, liquefied and shipped under the operatorship of the Woodside’s subsidiary. Currently, under the assurance and commercial evaluation phase, assessment of front end engineering and design and selection of EPC contractors are being carried out with the aim to make the final investment decision by June 2013.
MIMI Browse has agreed to jointly promote the marketing with Woodside Browse for the LNG offtaken by MIMI Browse and Woodside Browse, targeting potential LNG customers including those in Japan. MIMI Browse has also agreed to support Woodside Browse for procuring financing for development of the Project.
By participating in the Project and applying the expertise gained through its participation in North West Shelf LNG project, Mitsui will further enhance its LNG business in Australia, and aims to contribute to the reliable supply of energy to Japan and the East Asian region.
For further information, please contact:
Mitsui & Co., Ltd.
Investor Relations Division Tel: +81-3-3285-7910
Corporate Communications Division Tel: +81-3-3285-7540
Notice:
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui’s current assumptions, expectations and beliefs in light of the information currently available to it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
This announcement is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside of Japan, regarding the shares, bonds or other securities issued by us.
Contractual Coverage
| Buyer | Â | MIMI Browse |
| Seller | Â | Woodside Browse |
| Acquired Assets |  | Working interest of the Project owned by Woodside Browse 1. East Browse Joint Venture: 16% out of 50% working interest owned by Woodside 2. West Browse Joint Venture? 8% out of 25% working interest owned by Woodside (*) Both JVs have been under unitization negotiation. MIMI Browse’s assumed interest in the Browse LNG project is approx. 15%. |
| Purchase Price | Â | USD 2.0 billion |
| Operator | Â | Woodside Energy Ltd (subsidiary of Woodside and parent company of Woodside Browse? |
| Â |
Project Overview
| Project Partners | Â | Woodside Browse, BHP Billiton Petroleum?North West Shelf? Pty Ltd, BP Developments Australia Pty Ltd, Chevron Australia Pty Ltd, Shell Development (Australia) Proprietary Limited |
| Location of Gas and Condensate Fields | Â | Browse Basin, 425km off Broome in Western Australia |
| Proposed LNG Plant Location | Â | James Price Point in Kimberley, Western Australia |
| LNG Production |  | 12 million tons per annum (4 million tons × 3 trains) ?Potential expansion to 25 million tons per annum |
| Reserve (estimated by Woodside?Energy? | Â | Gas: 15.5 trillion cubic feet Condensate: 417 million barrels |
| FID | Â | Planned first half 2013 |
| Â |
Summary of MIMI Browse
| Registered Company Name | Â | Japan Australia LNG (MIMI Browse) Pty Ltd |
| Head Office | Â | Perth, Australia |
| Establishment | Â | April 20, 2012 |
| Ownership | Â | Japan Australia LNG (MIMI) Pty Ltd 100% |
| Â |
Summary of Woodside
| Registered Company Name | Â | Woodside Petroleum Ltd |
| Location | Â | Perth, Australia |
| Listed Stock Exchange | Â | Australian Securities Exchange |
| Employees* | Â | 3,856 |
| Business activities | Â | Oil and Gas Exploration and Production |
| Consolidated Assets* | Â | Approx. USD 22.7 billion |
| Daily Production* | Â | Approx. 177 thousand barrels |
| Â |
* Financial year 2011
For diagrams omitted, please see our home page. (http://www.mitsui.com/jp/en/release/2012/1198038_3607.html)
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