U.S. to become top oil producer by 2015.... Start The Research Traders
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CRWE...CTS Products.com capitalizes on the explosion of internet commerce by offering an online electronic consumer storefront for an ever expanding array of consumer products, currently numbering over two hundred thousand. This site is constantly adding new distributors and manufacturers to its stable of high quality suppliers.
http://www.ctsproducts.com/
HESG..5 MMs left .0009 ...:)
HESG..5 MMs left .0009 ...:)
The chart is showing good signs here. I checked the latest 10Q and it looks good also..imo.
CRWE About Crown Trading Systems.
Crown Trading Systems delivers powerful and reliable computer systems enabling a person to view data and information from hundreds of sources, move, maximize and manage different applications between monitors with a single click, across a simultaneous panorama view of 2 to 16 computer monitors and 150 plus windows from a single computer. With broadband access to the Internet, this can now be accomplished in any setting from a home, business or government location.
http://www.crowntradingsystems.com/
HESG up 10% on 54 M Vol.
HESG up 10% on 54 M Vol.
by looking looking at the chart the biggest volume this stock has had in the last year is like around 80k in a single day. If we could have a 500k day there is no telling how high this could go..
CRWE showing all the signs for moving higher....
CRWE showing all the signs for moving higher....
HESG .0008 x .0009 on the open here.
HESG .0008 x .0009 on the open here.
CRWE About Crown Trading Systems.
Crown Trading Systems delivers powerful and reliable computer systems enabling a person to view data and information from hundreds of sources, move, maximize and manage different applications between monitors with a single click, across a simultaneous panorama view of 2 to 16 computer monitors and 150 plus windows from a single computer. With broadband access to the Internet, this can now be accomplished in any setting from a home, business or government location.
http://www.crowntradingsystems.com/
With the stock being traded on low volume and all the news here lately is showing the company is growing. I would not be surprised to see this trading at .50 in the next month or so imo...
CRWE Domains and link..
http://crwedomains.com/
CRWE Domains and link..
http://crwedomains.com/
HESG Reported On Dec 04th .
Health Sciences Group in Negotiations to Joint Venture and Acquire Two Montana Marijuana Growers and Caregivers Companies
INDIAN HARBOR BEACH, FL, Dec 04, 2009 (MARKETWIRE via COMTEX) -- Health Sciences Group, Inc. (PINKSHEETS: HESG) would like to announce that it is in strong negotiations to acquire a minority stake in two separate Montana-based marijuana growing, distribution and care giving operations.
"This is part of our strategy, acquiring existing operations as well as starting new operations. We feel that the profits in Medical Marijuana are in growing and transportation of marijuana," states Thomas Gaffney, CEO of Health Sciences Group.
Gaffney continues, "We are still working with Medical Marijuana, Inc. on doing business in California and we are also exploring operation businesses in Colorado."
The deals would more or less be partnerships. HESG would fund the operations for expansion and growth of the existing business. The negotiations are moving quickly and we expect them to close no later than the end of December 2009 or the first of the year.
"With these acquisitions, HESG would be the first public company with actual operation of a Medical Marijuana business," states Gaffney. "Once the preliminary documents are decided and signed we will announce the names; until then we are keeping the names of the Companies under wraps. The public can expect the names of the companies to be exposed by the middle of next week."
In the State of Montana you must be licensed as an actual caregiver to grow marijuana. Combined, each of these operations have approximately 100 patients combined.
Below is a portion of the Montana medical Marijuana Act.
Montana Medical Marijuana Act
INITIATIVE NO. 148
NEW SECTION. Section 1. Short title. [Sections 1 through 9] may be cited as
the "Medical Marijuana Act".
NEW SECTION. Section 2. Definitions. As used in [sections 1 through 9], the
following definitions apply:
(1) "Debilitating medical condition" means: (a) cancer, glaucoma, or
positive status for human immunodeficiency virus, acquired immune
deficiency syndrome, or the treatment of these conditions; (b) a
chronic or debilitating disease or medical condition or its treatment
that produces one or more of the following:
(i) cachexia or wasting syndrome;(ii) severe or chronic pain;(iii)
severe nausea;(iv) seizures, including but not limited to seizures
caused by epilepsy; or(v) severe or persistent muscle spasms,
including but not limited to spasms caused by multiple sclerosis or
Crohn's disease; or
(c) any other medical condition or treatment for a medical condition
adopted by the department by rule. (2) "Department" means the
department of public health and human services. (3) "Marijuana" has the
meaning provided in 50-32-101. (4) "Medical use" means the acquisition,
possession, cultivation, manufacture, use, delivery, transfer, or
transportation of marijuana or paraphernalia relating to the
consumption of marijuana to alleviate the symptoms or effects of a
qualifying patient's debilitating medical condition. (5) "Physician"
means a person who is licensed under Title 37, chapter 3. (6) (a)
"Caregiver" means an individual, 18 years of age or older who has
agreed to undertake responsibility for managing the well-being of a
person with respect to the medical use of marijuana. A qualifying
patient may have only one caregiver at any one time.
(b) The term does not include the qualifying patient's physician. (7)
"Qualifying patient" means a person who has been diagnosed by a physician
as having a debilitating medical condition. (8) "Registry identification
card" means a document issued by the department that identifies a person as
a qualifying patient or caregiver. (9) (a) "Usable marijuana" means the
dried leaves and flowers of marijuana and any mixture or preparation of
marijuana.
(b) The term does not include the seeds, stalks, and roots of the plant.
(10) "Written certification" means a qualifying patient's medical records
or a statement signed by a physician stating that in the physician's
professional opinion, after having completed a full assessment of the
qualifying patient's medical history and current medical condition made in
the course of a bona fide physician-patient relationship, the qualifying
patient has a debilitating medical condition and the potential benefits of
the medical use of marijuana would likely outweigh the health risks for the
qualifying patient.
ABOUT HEALTH SCIENCES GROUP, INC.
Health Sciences Group, Inc. is a provider of health and wellness services to consumers, physicians and other healthcare professionals through its website, www.igohealthy.org, and health focused publications. The Health Sciences network consists of its public website, www.igohealthy.org, and iGoHealthy Magazine. The Company operates in three segments: Online Services, Publishing and Other Services. The Company is recently exploring options of corporate growth within the Legal Medical Marijuana Industry.
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Health Sciences Group, Inc. to be materially different from the statements made herein.
CONTACT:
Health Sciences Group, Inc.
Thomas Gaffney
President and CEO
(321) 604-1451
Email Contact
SOURCE: Health Sciences Group, Inc.
CONTACT: http://www2.marketwire.com/mw/emailprcntct?id=54862AB9F069CDA6
Copyright 2009 Marketwire, Inc., All rights reserved.
-0-
SUBJECT CODE: Medical and Healthcare:Alternative
Medical and Healthcare:Facilities and Providers
Pharmaceuticals and Biotech:Drugs
Medical and Healthcare:Healthcare
Medical and Healthcare:Medical Devices
Medical and Healthcare:Health and Nutrition
HESG Reported On Dec 04th .
Health Sciences Group in Negotiations to Joint Venture and Acquire Two Montana Marijuana Growers and Caregivers Companies
INDIAN HARBOR BEACH, FL, Dec 04, 2009 (MARKETWIRE via COMTEX) -- Health Sciences Group, Inc. (PINKSHEETS: HESG) would like to announce that it is in strong negotiations to acquire a minority stake in two separate Montana-based marijuana growing, distribution and care giving operations.
"This is part of our strategy, acquiring existing operations as well as starting new operations. We feel that the profits in Medical Marijuana are in growing and transportation of marijuana," states Thomas Gaffney, CEO of Health Sciences Group.
Gaffney continues, "We are still working with Medical Marijuana, Inc. on doing business in California and we are also exploring operation businesses in Colorado."
The deals would more or less be partnerships. HESG would fund the operations for expansion and growth of the existing business. The negotiations are moving quickly and we expect them to close no later than the end of December 2009 or the first of the year.
"With these acquisitions, HESG would be the first public company with actual operation of a Medical Marijuana business," states Gaffney. "Once the preliminary documents are decided and signed we will announce the names; until then we are keeping the names of the Companies under wraps. The public can expect the names of the companies to be exposed by the middle of next week."
In the State of Montana you must be licensed as an actual caregiver to grow marijuana. Combined, each of these operations have approximately 100 patients combined.
Below is a portion of the Montana medical Marijuana Act.
Montana Medical Marijuana Act
INITIATIVE NO. 148
NEW SECTION. Section 1. Short title. [Sections 1 through 9] may be cited as
the "Medical Marijuana Act".
NEW SECTION. Section 2. Definitions. As used in [sections 1 through 9], the
following definitions apply:
(1) "Debilitating medical condition" means: (a) cancer, glaucoma, or
positive status for human immunodeficiency virus, acquired immune
deficiency syndrome, or the treatment of these conditions; (b) a
chronic or debilitating disease or medical condition or its treatment
that produces one or more of the following:
(i) cachexia or wasting syndrome;(ii) severe or chronic pain;(iii)
severe nausea;(iv) seizures, including but not limited to seizures
caused by epilepsy; or(v) severe or persistent muscle spasms,
including but not limited to spasms caused by multiple sclerosis or
Crohn's disease; or
(c) any other medical condition or treatment for a medical condition
adopted by the department by rule. (2) "Department" means the
department of public health and human services. (3) "Marijuana" has the
meaning provided in 50-32-101. (4) "Medical use" means the acquisition,
possession, cultivation, manufacture, use, delivery, transfer, or
transportation of marijuana or paraphernalia relating to the
consumption of marijuana to alleviate the symptoms or effects of a
qualifying patient's debilitating medical condition. (5) "Physician"
means a person who is licensed under Title 37, chapter 3. (6) (a)
"Caregiver" means an individual, 18 years of age or older who has
agreed to undertake responsibility for managing the well-being of a
person with respect to the medical use of marijuana. A qualifying
patient may have only one caregiver at any one time.
(b) The term does not include the qualifying patient's physician. (7)
"Qualifying patient" means a person who has been diagnosed by a physician
as having a debilitating medical condition. (8) "Registry identification
card" means a document issued by the department that identifies a person as
a qualifying patient or caregiver. (9) (a) "Usable marijuana" means the
dried leaves and flowers of marijuana and any mixture or preparation of
marijuana.
(b) The term does not include the seeds, stalks, and roots of the plant.
(10) "Written certification" means a qualifying patient's medical records
or a statement signed by a physician stating that in the physician's
professional opinion, after having completed a full assessment of the
qualifying patient's medical history and current medical condition made in
the course of a bona fide physician-patient relationship, the qualifying
patient has a debilitating medical condition and the potential benefits of
the medical use of marijuana would likely outweigh the health risks for the
qualifying patient.
ABOUT HEALTH SCIENCES GROUP, INC.
Health Sciences Group, Inc. is a provider of health and wellness services to consumers, physicians and other healthcare professionals through its website, www.igohealthy.org, and health focused publications. The Health Sciences network consists of its public website, www.igohealthy.org, and iGoHealthy Magazine. The Company operates in three segments: Online Services, Publishing and Other Services. The Company is recently exploring options of corporate growth within the Legal Medical Marijuana Industry.
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Health Sciences Group, Inc. to be materially different from the statements made herein.
CONTACT:
Health Sciences Group, Inc.
Thomas Gaffney
President and CEO
(321) 604-1451
Email Contact
SOURCE: Health Sciences Group, Inc.
CONTACT: http://www2.marketwire.com/mw/emailprcntct?id=54862AB9F069CDA6
Copyright 2009 Marketwire, Inc., All rights reserved.
-0-
SUBJECT CODE: Medical and Healthcare:Alternative
Medical and Healthcare:Facilities and Providers
Pharmaceuticals and Biotech:Drugs
Medical and Healthcare:Healthcare
Medical and Healthcare:Medical Devices
Medical and Healthcare:Health and Nutrition
Looking good bro. Lets close green today.
CRWE and HESG on watch today !
CRWE and HESG on watch today !
Sugar Falls as Credit Concerns Erode Demand; Orange Juice Rises
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By Yi Tian and Catarina Saraiva
Dec. 9 (Bloomberg) -- Sugar futures fell for a fourth day after Standard & Poor’s downgraded Spain’s credit outlook, raising concerns that the economic recovery may be slower, dimming the outlook for demand. Orange juice gained.
The Reuters/Jefferies CRB Index of 19 raw materials sank as much as 1.5 percent after S&P cited a “prolonged period of economic weakness” ahead for Spain. Standard & Poor’s shifted its outlook for the nation’s bonds to “negative” from “stable” a day after Fitch Ratings downgraded Greece’s debt.
“Any information that’s presented that relates to overall economic health for any county is going to have some impact,” said Nicole Thomas, a commodity analyst for McKeany-Flavell Co., a consulting company and brokerage in Oakland, California. “We may just be testing some of our support levels at this moment.”
Raw-sugar futures for March delivery fell 0.07 cent, or 0.3 percent, to 22.15 cents a pound on ICE Futures U.S. in New York after earlier gaining as much as 1.9 percent. A 4.2 percent drop in the four sessions since Dec. 3 has trimmed the most-active contract’s gain this year to 88 percent.
Sugar has advanced as adverse weather hindered cane harvests this year in Brazil and India, the second-biggest producer and largest consumer of the sweetener. Brazil is the world’s biggest provider of the commodity.
Heavy rain in the Brazilian state of Sao Paulo yesterday led more mills to stop processing sugar cane, Michael McDougall, a Newedge USA LLC senior vice president in New York, said today in a report.
Brazil Crop
Output in the Center South region, which accounts for about 90 percent of Brazil’s sugar production, will be 28.9 million metric tons this year, down from a Nov. 16 projection of 29.3 million tons, according to Ricardo Nogueira, an analyst at broker FCStone Group Inc. in Kansas City. He said excess rainfall has cut yield.
In another ICE market, orange-juice futures for January delivery rose 1.25 cents, or 1 percent, to $1.265 a pound. The most-active contract has climbed 86 percent this year, partly on forecasts for a smaller orange crop in Florida, the world’s largest producer of the fruit after Brazil.
To contact the reporters on this story: Yi Tian in New York at ytian8@bloomberg.net. Catarina Saraiva in New York at asaraiva5@bloomberg.net.
Last Updated: December 9, 2009 16:44 EST
Copper Falls in New York After S&P Cuts Spain’s Credit Outlook
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By Millie Munshi
Dec. 9 (Bloomberg) -- Copper prices fell after Standard & Poor’s lowered Spain’s credit outlook to “negative,” fueling concern that the global economic recovery may stall.
Fitch Ratings yesterday downgraded Greece’s debt, and government-owned Dubai World last week said it’s in talks with banks to restructure $26 billion of loans. Copper prices, down 4.1 percent since Dec. 2, plunged a record 54 percent last year as frozen credit markets deepened the longest recession in at least seven decades.
“You’ve got all these credit-related fears right now, and people are shedding riskier assets,” said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. “To see copper pull back is not surprising.”
Copper for March delivery fell 4.15 cents, or 1.3 percent, to $3.1235 a pound on the New York Mercantile Exchange’s Comex unit. The metal sank 2.9 percent in the previous four sessions.
Earlier, copper gained as much as 0.9 percent on supply concerns as workers blocked the entrance to a mine in Chile after wage talks ceased.
At state-owned Codelco’s Chuquicamata mine, workers blocked a road to the site and stopped production, according to Hernan Guerro, a union president. Codelco is the world’s biggest copper producer and Chile is the largest source of the metal.
Jose Pablo Arellano, Codelco’s chief executive officer, declined to say if production had stopped at Chuquicamata. Talks with workers have been “interrupted,” he said in Santiago.
“News of supply problems will lend some support to prices,” said Michael Gross, an OptionSellers.com trader in Tampa, Florida.
Traders will continue to “focus on the larger macroeconomic themes,” Gross said.
On the London Metal Exchange, copper for three-month delivery dropped $31, or 0.4 percent, to $6,945 a metric ton ($3.15 a pound). Among other LME-traded metals, lead and zinc fell. Nickel, tin and aluminum gained.
To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net.
Last Updated: December 9, 2009 15:04 EST
Soybeans Fall as Importers May Shift to Cheaper Brazil Supply
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By Jeff Wilson
Dec. 9 (Bloomberg) -- Soybeans fell the most in a week on speculation that importers will shift from U.S. supply to shipments from South America, where farmers are expected to begin harvesting a record crop in February.
Brazil and Argentina, the two biggest growers after the U.S., may produce a record 116 million metric tons next year, up 30 percent, the U.S. Department of Agriculture says. Brazil will harvest 64.6 million tons, the most ever and up from 57.2 million this year, the Agriculture Ministry said yesterday. Before this month, soybean prices rallied 14 percent since the end of September on record Chinese purchases of U.S. exports.
“The Brazilian-crop estimate was a credible psychological shot across the bow of the soybean rally,” said Greg Wagner, a senior market analyst for AgResource Co. in Chicago. “We have a huge South American supply coming on in the next two months” that will slow demand for U.S. supplies, Wagner said.
Soybean futures for January delivery declined 15.5 cents, or 1.5 percent, to $10.285 a bushel on the Chicago Board of Trade, the biggest decline since Dec. 2. Prices have slipped 3 percent this month.
“Pretty soon the U.S. will be priced out of the world soybean market,” Wagner said. “As time goes on, there will be increased market concerns that China will switch some U.S. purchases” to supplies from South America, Wagner said.
U.S. exporters sold 110,000 metric tons of soybeans to China for delivery before Aug. 31, the U.S. Department of Agriculture said today. Sales to all customers from Sept. 1 to Nov. 26 were up 58 percent to about 27.8 million tons, including 17 million to China. The USDA has forecast the domestic crop will be a record. The U.S. is the world’s largest grower and exporter of soybeans.
Soybeans, the second-biggest U.S. crop, were valued last year at $27.4 billion, government figures show. Corn was the largest at $47.4 billion.
To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net.
Last Updated: December 9, 2009 15:33 EST
Corn Falls as Lower Crude-Oil Price May Slow Demand for Ethanol
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By Jeff Wilson
Dec. 9 (Bloomberg) -- Corn fell to a one-month low on speculation that demand for ethanol made from the grain will slow after a plunge in energy prices.
Crude oil fell to a two-month low after a U.S. government report showed gasoline stockpiles rose last week to the highest level since April. Total daily fuel demand in the four weeks ended Dec. 4 was down 3 percent from a year earlier. Average ethanol production slipped in September to 725,000 barrels a day from 727,000 in August, the Energy Department said Nov. 30.
“Grain prices are following energy prices lower today,” said Greg Wagner, a senior market analyst for AgResource Co. in Chicago. “September ethanol production was quite disappointing, given that producers had their best margins this year.”
Corn futures for March delivery fell 1.5 cents, or 0.4 percent, to $3.835 a bushel on the Chicago Board of Trade, after touching $3.79, the lowest level for a most-active contract since Nov. 9.
Prices are down 8.1 percent this month, after surging 27 percent in the previous three months as heavy rain delayed the U.S. harvest. Corn is down 5.8 percent this year as U.S. farmers are forecast to harvest the second-biggest crop ever.
Corn, valued at $47.4 billion in 2008, is the biggest U.S. crop, government data show.
To contact the reporter on this story: Jeff Wilson in Chicago at jwilson29@bloomberg.net
Last Updated: December 9, 2009 15:42 EST
Cocoa Advances to a 20-Year High in London as Demand Rebounds
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By M. Shankar
Dec. 9 (Bloomberg) -- Cocoa climbed to the highest price in at least two decades in London as some investors sought to diversify their assets by buying commodities.
Cocoa for December delivery rose to 2,204 pounds ($3,572) a metric ton on the Liffe exchange, the highest closing price since at least 1989.
“Money is coming back into defensive commodities such as cocoa and coffee,” said William Adjadj, a trader with Sucden Financial Ltd. in Paris. Standard & Poor’s cut its outlook for Spain’s debt rating, a day after Fitch Ratings lowered its rating for Greece.
While production from Ivory Coast, the world’s biggest cocoa grower, is expected to improve, the West African country’s total output in the 2008-09 season fell by 160,000 tons to 1.22 million tons, according to the International Cocoa Organization.
The pound fell against the dollar and the euro, making the beans cheaper for investors holding those currencies.
Among other agricultural commodities traded on Liffe, robusta coffee for January delivery jumped $18, or 1.3 percent, to $1,373 a ton. Coffee has gained 4 percent this week.
Production from Vietnam National Coffee Corp., the country’s biggest exporter, will drop because the company plans to replant trees, Nguyen Cong Hoang, deputy director general, said today. Vietnam is the biggest grower of robusta beans.
Global coffee output will likely decline to 123 million to 125 million bags in 2009-10 from 128 million bags in the previous season, the International Coffee Organization said in a report today. Demand may expand to 132 million bags this year, compared with 130 million last year, it said.
White, or refined, sugar for March delivery fell $10.10, or 1.7 percent, to $599.80 a ton, the fifth consecutive decline.
To contact the reporter on this story: M. Shankar in London at mshankar@bloomberg.net.
Houses Make Comeback as British Reject ‘Little Box’ Apartments
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By Tim Barwell
Dec. 9 (Bloomberg) -- Houses are making a comeback in the U.K. as buyers reject “little box” apartments and investor demand for rentals evaporates.
Single-family attached homes accounted for about 24 percent of all residences started in England in the first nine months, the highest proportion since 1992, according to the National House-Building Council. Semi-detached homes made up 17 percent of all starts, a level not seen since 1999.
“Most people dream of having a front garden and a back garden, with a little bit of security around them,” said Alistair Leitch, finance director at Bellway Plc in Newcastle, England. “They don’t want to have to park their car 50 yards from home.”
U.K. homebuilders that once rushed to build flats are now trying to meet demand for private homes. The reversal is occurring as banks restrict lending to buy-to-let apartment investors. That helped push prices down by almost a quarter from the 2007 peak through March of this year, the most of any type of British residential property, according to the Nationwide Building Society, the country’s biggest mortgage lender.
In the first nine months of this year, apartments accounted for around 40 percent of all starts in England, the least in six years, according to the House-Building Council, the U.K.’s biggest insurer for new homes. About 60 percent of the properties Bellway plans to build next year will be houses, compared with just over 50 percent in the fiscal year through July, Leitch said. The company sold 4,380 homes in the year.
Revamping Urban Sites
The proliferation in apartments was fueled by a government policy to emphasize high-density development on disused urban sites. The goal was to preserve the limited supply of undeveloped land while increasing the number of dwellings in England. In July 2007, the government announced a target of 3 million new homes by 2020.
The policy worked. As apartment blocks rose, detached houses fell to 12 percent of the total last year from 44 percent in 1997. The proportion of apartments rose to 51 percent from 15 percent in that period.
“The industry gets blamed for building little boxes, but we take our lead from the planners,” Redrow Plc founder and Chairman Steve Morgan said in an interview. “The industry was guided by the government toward a high increase in density.” The rules also created pent-up demand for family housing, he said.
A decade of soaring home prices, coupled with TV programs such as “Location, Location, Location” aimed at amateur property buyers, spurred a 19-fold increase in the buy-to-rent market to 190 billion pounds ($309 billion) from 1997 to 2007, said London-based property broker Savills Plc.
Investor Demand
Investors helped spur development of high-rise apartment blocks in cities such as Birmingham and Leeds that outpaced demand. Leeds City Council said in April that about 13 percent of center apartments are were empty, citing local tax returns.
“With investor demand largely gone, it’s a question of selling new flats to occupiers,” the bulk of whom will be first-time buyers requiring larger mortgages, said Richard Donnell, director of research at London-based property research company Hometrack Ltd.
Apartment prices dropped 22 percent from the peak through March to about 109,708 pounds, compared with a 16 percent decline for detached houses to 211,595 pounds, according to Nationwide.
Apartments became “significantly harder to sell” through 2008, Peter Redfern, chief executive officer of house builder Taylor Wimpey Plc, said in an interview. Prices fell about 30 percent at the low point of the market earlier this year, twice as much as houses, he said.
New Policy
In 2000, the price difference between a newly built apartment and its resale value was 55 percent, according Hometrack. That new-build premium has now vanished for apartments while it remains at about 15 percent for new houses.
To reduce risk, builders are focusing on houses and smaller developments that require less investment upfront.
Lenders and new government policies are also helping promote house construction. In April 2007, the government created new zoning guidance to promote a greater mixture of housing types, sizes and values, easing some of the emphasis on higher density.
Barclays Plc, Britain’s second-largest lender, is now offering five-year fixed-rate mortgages at 5.49 percent with a 30 percent down payment. That compares with 6.39 percent and a 40 percent down payment for a buy-to-rent investor.
Reformed System
“We have reformed the planning system to help local authorities deliver more and better homes,” Communities and Local Government, the department responsible for planning, said in an e-mail. “Changes to the planning policy in 2007 require councils to do more to ensure the right mix of housing is built.”
Taylor Wimpey, the U.K.’s second-largest homebuilder by volume, got around 40 percent of its sales from apartments at the top of the market in 2007. About 23 percent of its land is now slated for flats. The company sold 4,702 properties in the U.K. in the first half of this year.
Clover Bank, a 23-house Taylor Wimpey development near Birmingham in central England, has almost sold out since the first unit was purchased in February. Two properties remained as of Nov. 17, according to the company.
That contrasts with its Latitude project, a 189-apartment block about 13 miles away. A total of 67 apartments, first marketed in 2006, were still for sale the development’s estate agents, Knight Frank LLP said last month. Construction was temporarily halted after the property market stalled, before the work was completed earlier this year.
Bigger Spaces
A 1,289 square-foot free-standing house at Clover Bank costs 259,995 pounds and includes a garden of a similar size, a garage and a driveway. By contrast, a two-bedroom flat in Latitude costs 195,000 pounds for 677 square feet, a communal garden area, and storage area, an open-plan living room and kitchen and a concierge at the entrance to the block.
Barratt Developments Plc, Britain’s biggest homebuilder, sold the largest proportion of flats among the national builders in its last fiscal year through June, at 54 percent, slightly more than competitors Bellway and Redrow. Persimmon Plc has the lowest share of apartments among the U.K.’s seven biggest homebuilders at about 20 percent, according to the company.
Barratt expects to sell around 12,000 homes in its current financial year, with 40 percent to 45 percent being apartments, the company said on Nov. 17. Persimmon expects about 9,000 completions in the year through December.
Apartment Demand
Bellway’s Leitch said flats will remain a substantial part of the London market, where space is limited, but doesn’t expect such a boom in apartments in other town centers and rural areas to return.
“We had a government that wanted more apartments on a piazza, with everyone pouring out in the evenings to have a drink,” Leitch said. “It didn’t happen, did it?”
Builders are too quick to blame the government, and the opportunity to profit was equally responsible for the market’s surge, said Hometrack’s Donnell and Alastair Stewart, an analyst at Investec Securities.
“Housebuilders have been merrily building bad properties for the last five years, and they try to put it at the government’s feet,” Stewart said in an interview. “There was a bit of planning involved, but they thought they could flog houses more profitably by stacking small rooms on top of each other.”
Saving Space
Taylor Wimpey is designing a new range of houses, with models that save space and minimize the amount of land needed. They will feature fewer hallways and more open-plan kitchens, Redfern said on Nov. 4. They will be ready next year.
Redrow plans to introduce its own collection of traditional family housing starting in January, having reduced the number of models it sells to 32 from 80.
The return to houses is “a good move” said Chris Millington, an analyst at Numis Securities in London. “There is a shortage of land in the U.K. so we can’t concrete over it, but the consumer wants a driveway and a garden, and clearly when the market got weaker the flats were the ones hit hardest.”
To contact the reporter on this story: Tim Barwell in London at tbarwell@bloomberg.net
Last Updated: December 8, 2009 19:00 EST
Darling Says U.K. Economy Will Recover From Recession Next Year
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By Thomas Penny
Dec. 9 (Bloomberg) -- Chancellor of the Exchequer Alistair Darling said the U.K. economy will recover from its longest recession on record next year as the government’s stimulus measures take hold.
The finance minister forecast growth in 2010 to between 1 percent and 1.5 percent, the same as he estimated in March. He expects growth of about 3.5 percent in 2011 and 2012. For 2009, Darling forecasts the economy will shrink by between 4.75 percent, deeper than his March projection for a contraction between 3.75 percent and 3.25 percent.
Trailing in opinion polls before an election that he must hold by June, Prime Minister Gordon Brown is balancing the need to clamp down on a record budget deficit while extending support to voters struggling in the deepest recession since 1980.
“We must continue to support the economy until the recovery is established,” Darling said in a speech in Parliament in London today. “The choices are between going for growth or putting the recovery at risk. To reduce the deficit while protecting front-line services or cuts, which put these services in danger.”
Darling, delivering his pre-budget statement, will announce his deficit projections later in the speech. In March he expected a shortfall of 175 billion pounds ($285 billion) in the current fiscal year, about 12 percent of gross domestic product and the most in the Group of 20 nations.
Tax Plans
He’s also planning to raise taxes on bonus pay earned by bankers and to maintain spending on health and education programs popular with voters, Treasury officials say.
He confirmed he’d return value added tax to 17.5 percent at the end of this year from 15 percent. He also extended tax relief on empty properties, cut duties on bingo gaming and raised the basic state pension 2.5 percent from April. He also will increase disability benefits by 1.5 percent.
Brown’s Labour government and David Cameron’s Conservatives both have promised measures to bonus payments in the City, London’s financial district. Where the two parties diverge is on just how quickly the government should curb the deficit.
“We can’t solve the problem of the deficit straight away, but what there’s an absence of is a credible plan,” Conservative leader David Cameron said yesterday. “I don’t think anyone’s going to be impressed with a plan that doesn’t at least have some early action in it.”
To contact the reporter on this story: Thomas Penny in London at tpenny@bloomberg.net
Last Updated: December 9, 2009 07:51 EST
Almunia Says EU Ready to Assist Greece in Budget Plan (Update1)
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By John Fraher and Kevin Costelloe
Dec. 9 (Bloomberg) -- The European Union’s economic affairs commissioner said officials are ready to help Greece get to grips with its budget deficit after concerns about its public finances sparked a rout in Greek government bonds.
The European Commission “stands ready to assist the Greek government in setting out the comprehensive consolidation and reform program, in the framework of the treaty provisions for euro-area member states,” said Joaquin Almunia, who is in charge of economic and monetary affairs, in a statement late yesterday. He didn’t say what form any assistance could take.
Greek stocks and bonds tumbled yesterday after Fitch Ratings cut its rating on government debt to BBB+ and two other major ratings companies are threatening to follow suit. Greece, the lowest-rated country in the euro region, is struggling to cut a budget deficit of 12.7 percent.
The benchmark Athens Stock Exchange General Index dropped as much as 6.1 percent, its biggest intraday decline since Nov. 26. The spread between the Greek and German 10-year benchmark bonds widened to 221 basis points from 130 basis points on Oct. 5. That compares with 23 basis points for Finnish 10-year bonds.
Almunia’s comments come as investors debate whether EU governments would bail out Greece if it was unable to pay its bills. Former German Finance Minister Peer Steinbrueck said in February that euro members would “in reality” rescue states in difficulty. Almunia said yesterday that Greece “is a matter of common concern” for euro nations, echoing language he has used since November. He didn’t elaborate further.
No Bailouts?
At the same time, the worst financial crisis since the Great Depression has abated since February and European governments have made no effort to elaborate how a bailout would happen in practice.
“In today’s markets, the risk of using Greece as a showcase of the ‘no bailout clause’ is too dangerous,” said Wim Boonstra, chief economist at Rabobank Nederland. “In the current situation it’s in the interests of the other countries that Greece does not fail.”
Greek Finance Minister George Papaconstantinou said today that the country will not seek an EU aid package and there is “absolutely” no risk it will default on its debt. “We’re moving swiftly to reassure citizens and markets that we’re moving in the right direction,” Papaconstantinou said today in an interview with Bloomberg Television.
‘Fair’ Consolidation
The finance minister said yesterday that his government, which came to power in October promising higher spending and wages, will cut the budget deficit in a “fair” consolidation of public finances.
That’s not enough for some European finance officials, who are increasing pressure on Greece government to take lasting measures to reduce the deficit.
“The situation in Greece is very difficult,” European Central Bank President Jean-Claude Trichet said on Dec. 7. “We all know the figures, and we all know the very important, courageous decisions that have to be taken to put the situation back on track.”
Greece can expect a bail out from the ECB “only at a price,” said Willem Buiter, the former Bank of England official who will join Citigroup Inc. as its chief economist next month.
“They’ll probably go to the IMF, have a credible standby program and then aid from Brussels and bilateral aid from selected sovereign governments in Europe and the U.S. will be available,” Buiter said in a Bloomberg Television interview. “We could see the first all EU-15 sovereign default since Germany had it in 1948.”
Almunia said yesterday that “the commission will continue to monitor the situation in Greece very closely.”
To contact the reporters on this story: John Fraher in London at jfraher@bloomberg.net; Kevin Costelloe in Brussels at kcostelloe@bloomberg.net.
Last Updated: December 9, 2009 04:18 EST
Pound Weakens After Darling Says U.K.’s Deficit Will Increase
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By Keith Jenkins
Dec. 9 (Bloomberg) -- The pound fell against the euro and the dollar on concern U.K. Chancellor of the Exchequer Alistair Darling’s pre-budget measures will fail to bolster the nation’s ailing finances.
Sterling weakened against 14 of the 16 most-traded currencies tracked by Bloomberg after Darling told lawmakers that Britain’s budget deficit will be 611 billion pounds ($990 billion) in the next four years, 5 billion pounds more than previously forecast. The economy will shrink 4.75 percent this year, Darling said, compared with a March estimate of between 3.75 percent and 3.25 percent.
“Sterling still looks vulnerable,” said Ian Stannard, a foreign-exchange strategist at BNP Paribas SA in London. “There are no real measures here to start to tackle concerns that financial markets and investors are likely to have.”
Sterling fell for the fifth consecutive day against the dollar, dropping to $1.6233 as of 4:45 p.m. in London, from $1.6287 yesterday. It traded at $1.6168 earlier, the lowest level since Oct. 15. The pound also weakened to 90.66 pence per euro, from 90.27 pence.
Trailing in opinion polls before an election that he must hold by June, Prime Minister Gordon Brown is balancing the need to clamp down on a record peacetime budget deficit while extending support for voters struggling to keep their jobs. Darling’s proposals, announced to Parliament today, included a 50 percent levy on banker bonuses and an increase in income taxes after the election.
Moody’s Report
“Darling has done too little to rein in the deficit,” said Neil Mellor, a currency strategist at Bank of New York Mellon in London.
Moody’s Investors Service said yesterday the U.S. and U.K.’s top ratings may “test the Aaa boundaries” because their public finances are worsening in the wake of the global financial crisis.
U.K. public debt will climb to 89.3 percent of gross domestic product in 2010, from 75.3 percent this year, according to a June forecasts from the Organization for Economic Cooperation and Development.
The pound’s drop below its 50-day moving average against the dollar may signal it’s poised to extend declines in coming weeks, according to Lloyds Banking Group Plc.
The British currency broke below the threshold of $1.6410 two days ago. The last time it slid below the average, on Sept. 17, it dropped to $1.5708 within the next three weeks.
‘Worrying Parallels’
“There are worrying parallels with late September when a move through the then 50-day moving average of $1.6249 triggered a clearout and squeezed the cross,” Kenneth Broux, a market economist at Lloyds, wrote in an e-mailed report today.
U.K. consumer confidence stayed close to the highest level in 1 1/2 years in November, Nationwide Building Society said today. The index of consumer sentiment was at 73, the same as in October and one point lower than September’s reading. The U.K.’s trade deficit unexpectedly widened to 7.1 billion pounds, the highest level since January, from a revised 6.9 billion pounds in September, the Office for National Statistics said.
The Bank of England’s Monetary Policy Committee, headed by Governor Mervyn King, will leave the key interest rate unchanged at a record low of 0.5 percent tomorrow, according to all 53 economists polled in a Bloomberg survey. The central bank will also maintain its asset-purchase plan, begun in March to help lower borrowing costs, at 200 billion pounds, according to a separate Bloomberg survey.
To contact the reporter on this story: Keith Jenkins in London at Kjenkins3@bloomberg.net
Last Updated: December 9, 2009 12:09 EST
Colombian Peso Falls to a One-Month Low; Chilean Peso Gains
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By Drew Benson
Dec. 9 (Bloomberg) -- Colombia’s peso slid to the weakest level in a month as a cut in Spain’s credit outlook by Standard & Poor’s sapped demand for higher-yielding, emerging-market assets.
The peso fell 1 percent to 2,020.97 per dollar at 2:34 p.m. New York time, from 2,001.13 yesterday. Earlier it touched 2,021.65, its weakest since Nov. 3.
“The main driver continues to be the external context, which is generating nervousness,” said Camilo Perez, an analyst at Banco de Bogota SA, the country’s second-biggest bank.
S&P said it revised Spain’s outlook to negative from stable, citing concern about its public finances.
The yield on Colombia’s 11 percent benchmark bonds due in July 2020 slid three basis points, or 0.03 percentage point, to 8.13 percent, according to Colombia’s stock exchange.
In Chile, the peso climbed 0.9 percent to 500.6 per dollar from 505.22 yesterday. The yield for a basket of Chile’s five- year peso bonds in inflation-linked currency units, called unidades de fomento, rose five basis points to 2.86 percent, according to Bloomberg composite prices.
Argentina’s peso was little changed at 3.8033 per dollar, from 3.8041 on Dec. 7. Markets were closed in Argentina yesterday. The yield on the nation’s 5.83 percent peso bonds due in 2033 slid two basis points to 10.83 percent, according to Citibank Argentina.
Peru’s sol slid 0.4 percent to 2.8765 per dollar, from 2.8646 yesterday. The yield on Peru’s 8.6 percent sol- denominated bond due August 2017 rose four basis points to 4.97 percent, according to Citigroup Inc.’s local unit.
Venezuela’s bolivar climbed 1.7 percent to 5.8 per dollar in the parallel market, traders said. Venezuelans buy dollars in the unregulated market when they can’t get government authorization to purchase them at the official exchange rate of 2.15 per dollar.
To contact the reporters on this story: Drew Benson in Buenos Aires at abenson9@bloomberg.net;
Last Updated: December 9, 2009 14:48 EST
Canadian Currency Gains as Traders Speculate Losses Overdone
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By Chris Fournier
Dec. 9 (Bloomberg) -- Canada’s dollar strengthened against its U.S. counterpart amid speculation that yesterday’s decline to the lowest level in almost two weeks went too far.
“The Canadian dollar was oversold yesterday,” said Firas Askari, head currency trader in Toronto at Bank of Montreal, Canada’s fourth-largest lender. “This is a bit of a catch-up.”
Canada’s currency, nicknamed the loonie for the image of the aquatic bird on the C$1 coin, appreciated 0.9 percent to C$1.0548 per U.S. dollar at 4:43 p.m. in Toronto from C$1.0638 yesterday, when it slid as much as 1.5 percent to touch C$1.0671, the weakest level since Nov. 27. One Canadian dollar buys 94.81 U.S. cents.
The loonie earlier was little changed as U.S. stocks declined and the greenback strengthened after Standard & Poor’s cut the credit-rating outlook for Spain. S&P put Greece’s debt on watch for a downgrade two days ago. The moves sparked concern defaults will spread, and the U.S. dollar gained this week against all but three of its 16 most-traded counterparts tracked by Bloomberg as investors sought a haven. Only the yen and the dollars of New Zealand and Canada rose more.
“We’ll continue to oscillate with the broader dollar,” said Shane Enright, a currency strategist in Toronto at Canadian Imperial Bank of Commerce. “We’re stuck in the middle of a pretty broad range.”
The Canadian currency is trading between its 100-day moving average of C$1.07 and C$1.04, a “very solid” level at the stronger end of the range, Enright said. He attributed today’s movement to routine currency flows.
Canada’s dollar will strengthen to C$1.03 by the end of the first quarter, according to the median forecast of 37 economists and analysts surveyed by Bloomberg News.
‘Stronger’ U.S. Dollar
“I think we’re going to see the U.S. dollar go stronger into year-end and early next year,” said John Curran, a Toronto-based senior vice president at CanadianForex Ltd., an online foreign-exchange dealer. “You’re getting a few things out that are unsettling to the markets, such as the Dubai issue, then suddenly you have Greece, now you’ve got Spain.”
On Nov. 25, Dubai said it was seeking a “standstill” agreement on the state-related holding company Dubai World’s debt. Moody’s Investors Service yesterday downgraded six companies controlled by Dubai’s government, including the port operator DP World Ltd.
Depreciation by the Canadian currency through its 100-day moving average of C$1.07 could precipitate a run to C$1.12 within a month, Curran said.
Bond Auction
Canada auctioned C$3.2 billion ($3 billion) of three-year notes today, drawing an average yield of 1.937 percent and receiving bids of C$7.47 billion for the 1.75 percent notes maturing in March 2013, according to a statement on the Bank of Canada’s Web site.
The government’s benchmark three-year note was unchanged, yielding 1.67 percent. The 10-year Canadian security fell, pushing the yield up two basis points, or 0.02 percentage point, to 3.31 percent. The price of the 3.75 percent note due in June 2019 dropped 20 cents to C$103.54.
The Standard & Poor’s 500 Index, a benchmark of U.S. stocks, closed 0.4 percent higher after falling earlier as much as 0.6 percent.
Crude oil for January delivery dropped 2.7 percent to $70.69 a barrel on the New York Mercantile Exchange after a government report showed U.S. fuel inventories climbed as refineries bolstered operating rates. Crude earlier rose 1.7 percent before tumbling as much as 3.4 percent to $70.12, a two- month low.
Raw materials generate more than half of Canada’s export revenue, and crude oil is the nation’s biggest export.
‘Volatile and Tentative’
The U.S. dollar ended the day falling against 11 of the 16 most-traded currencies.
“Markets seem quite volatile and tentative,” said Sacha Tihanyi, a currency strategist in Toronto at Bank of Nova Scotia, Canada’s third-largest lender.
Canada’s trade deficit narrowed in October to C$700 million, compared with a C$927 million shortfall in September, Statistics Canada is likely to report tomorrow, according to the median forecast of 20 economists surveyed by Bloomberg. The figures are due at 8:30 a.m. in Ottawa.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
Last Updated: December 9, 2009 16:47 EST
Mexico’s Peso Gains for First Time in Four Days on U.S. Stocks
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By Tal Barak Harif
Dec. 9 (Bloomberg) -- Mexico’s peso rose for the first time in four days after gains in U.S. stocks prompted investors to buy higher-yielding, emerging-market assets.
The currency strengthened 0.2 percent to 12.8981 per U.S. dollar by 5 p.m. New York time, from 12.9247 yesterday.
The peso climbed after the Standard & Poor’s 500 Index added 0.4 percent as concern credit downgrades will spread eased. Spain had the outlook on its debt lowered by Standard & Poor’s, one day after Greece’s government bonds tumbled following a downgrade by Fitch Ratings.
“The peso is strengthening on the back of stronger U.S. equities and a general view of improved global conditions that are pushing currencies in emerging markets,” said Nick Chamie, head of emerging-market research at RBC Capital Markets in Toronto.
The yield on Mexico’s benchmark bond fell one basis point, or 0.01 percentage point, to 8.13 percent. The price of the 10 percent security due in December 2024 rose 0.10 centavo to 116.17 centavos per peso, according to Banco Santander SA.
The peso fell earlier after President Felipe Calderon nominated Agustin Carstens as the country’s central bank governor, replacing Guillermo Ortiz, whose second six-year term expires at the end of the year. Social Development Minister Ernesto Cordero will be Finance Minister.
‘Right Knowledge’
Cordero “isn’t perceived as having the right knowledge,” said Francisco Diez, director of foreign-exchange trading at RBC Capital Markets in New York. “The optimal scenario would have been for Carstens to stay in the finance ministry and for Ortiz to be replaced by Tames.”
Alonso Garcia Tames, Mexico’s public works development bank chief executive officer, was one of the candidates that investors, economists and the media speculated would replace Ortiz.
Banco de Mexico is forecast to raise borrowing costs next year to offset the inflationary effects of higher taxes approved as part of the 2010 budget as well as expected increases in gasoline and electricity prices.
“Markets would prefer Carstens stay as finance minister, as the next year will be very challenging in terms of budgetary and overall economic policy,” Win Thin, senior currency strategist at Brown Brothers Harriman & Co. in New York, wrote in a report. “Such a move is not a good one for the peso.”
To contact the reporter on this story: Tal Barak Harif in New York at tbarak@bloomberg.net
Last Updated: December 9, 2009 18:14 EST
Pimco Buys Abu Dhabi, Qatar Bonds After Dubai Shock (Update1)
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By Wes Goodman and Bernard Lo
Dec. 10 (Bloomberg) -- Pacific Investment Management Co., which runs the world’s biggest bond fund, is buying the debt of Abu Dhabi, Qatar and Ras Laffan Liquefied Natural Gas Co., said Michael Gomez, co-head of emerging markets at the fund manager.
The bonds fell after Dubai World, the state-run holding company, sought to delay payment on some of its debt, Gomez said. Dubai’s announcement on Nov. 25 spurred an increase in the cost of insuring government and company debt from default around the world. RasGas, a venture between state-run Qatar Petroleum and Exxon Mobil Corp., is one of Qatar’s two producers of gas.
“We’re coming in and buying,” said Gomez, who is based at the company’s main office in Newport Beach, California, in an interview with Bloomberg Television. “In any selloff, we’ll be accumulating even more. We think they’re cheap.”
Gomez also said China will allow the yuan to gain in 2010, reiterating comments from a report he posted on the Pimco Web site on Dec. 3.
“More flexibility will be introduced into the currency,” he said.
China has kept its currency at about 6.83 per dollar since July 2008 to help sustain exports.
Pimco Total Return Fund, run by Bill Gross since its inception in 1987, may this month become the biggest mutual fund in the industry’s history, surpassing the record $202.3 billion reached by Growth Fund of America in 2007, according to researcher Morningstar Inc.
Pimco is a unit of Munich-based insurer Allianz SE.
To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net.
Last Updated: December 9, 2009 19:20 EST
Mexico Annual Inflation Slows Below 4% on Peso, Food (Update1)
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By Thomas Black
Dec. 9 (Bloomberg) -- Mexico’s annual inflation slowed to less than 4 percent in November for the first time in almost two years on a strengthening currency and lower costs for fruit and telephone calls.
Consumer prices rose 3.86 percent in November from a year earlier, the central bank said today on its Web site, down from 4.5 percent in October. Price rose 0.52 percent in November from October, the bank said. Both results were in-line with Bloomberg surveys.
Inflation has slowed as the Mexican peso strengthens against the dollar, global commodity and food prices ease and consumer demand remains weak, supporting the central bank’s decision to hold its target interest rate at 4.5 percent since July following seven consecutive reductions.
Mexico’s peso fell 0.3 percent to 12.9664 per dollar at 11:29 a.m. New York time.
To contact the reporter on this story: Thomas Black in Monterrey at tblack@bloomberg.net
Last Updated: December 9, 2009 11:31 EST
Euro Faces ‘Bearish Setup’ Against Dollar: Technical Analysis
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By Chris Fournier
Dec. 9 (Bloomberg) -- The euro may drop against the dollar to a level last reached in August if it fails to rally past resistance levels, according to Citigroup Inc.
The euro is facing a “bearish setup” versus the greenback, with a large gap between the 55- and 200-day moving averages, Citigroup’s Tom Fitzpatrick and Aron Gera in New York and Shyam Devani in London wrote in a note to clients today, citing momentum indicators.
“Overall, we continue to expect a test of the 200-day moving average, which is now at $1.4118,” the analysts wrote. That would be a drop of more than 4 percent from yesterday’s close of $1.4704.
Investors should watch the resistance levels at $1.48, then a “double-top neckline” at $1.4827 and the 55-day moving average at $1.4854, according to Citigroup.
“A failure to rally through these levels would be an interesting development suggesting a turn back down is likely,” the analysts wrote.
The dollar breached the neckline of a double top versus the euro earlier this week, the analysts wrote. A double top forms when a currency make two consecutive peaks. A break of the neckline, the trough between the peaks, often indicates a further advance may be coming.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index. Resistance refers to the upper boundary of a trading range, where sell orders may be clustered.
To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net
Last Updated: December 9, 2009 10:53 EST
Dollar May Extend Decline on Easing Risk Aversion, Stock Gains
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By Yasuhiko Seki and Daniel Kruger
Dec. 10 (Bloomberg) -- The dollar may extend its decline from near a one-month high against the euro as signs of an economic recovery and a rebound in U.S. stocks helped ease risk aversion and revived demand for higher-yielding assets.
The 16-nation euro may advance before reports today that economists say will show industrial production in France and Italy rose, adding to signs the eurozone economy is recovering. New Zealand’s dollar rose for a second day as Reserve Bank Governor Alan Bollard said he expects to begin raising interest rates in the middle of next year.
“An improvement of economic conditions support gains in stocks and risk appetite,” said Masashi Nakamura, a Tokyo-based economist at Mizuho Research Institute Ltd. “This may then lead to dollar-selling.”
The dollar traded at $1.4737 per euro as of 8:05 a.m. in Tokyo from $1.4726 yesterday in New York when it touched $1.4668, the strongest level since Nov. 3. The yen was at 129.74 per euro from 129.39. Japan’s currency bought 88.07 per dollar from 87.87.
New Zealand’s dollar rose to 72.26 U.S. cents from 71.89 cents yesterday, when it jumped 1.7 percent. The currency bought 63.57 yen from 63.16 yen.
The U.S. currency and stocks have tended to trade in opposite directions since the start of the financial crisis. The 120-day correlation coefficient between the Dollar Index and the Standard & Poor’s 500 Index was minus 0.47 yesterday. A value of minus one would mean the two move in perfect opposition.
Stocks Gain
The Standard & Poor’s 500 Index increased 0.4 percent yesterday after earlier dropping as much as 0.6 percent. The Dow Jones Industrial Average gained 0.5 percent.
The euro rose against 11 of the 16 most-active currencies on speculation an improving economy will allow the European Central Bank to exit its accommodative policy before the Federal Reserve and the Bank of Japan.
Italian production rose 1.3 percent in October following a 5.3 percent drop the previous month, according to a Bloomberg News survey before the national statistics office releases the data today. Output in France gained 0.7 percent in October from September following a 1.5 percent drop the prior month, according to a separate Bloomberg survey before today’s report.
European Central Bank Governing Council member Axel Weber said this week the ECB’s main refinancing operation will be the last tender to be switched from unlimited funding to its pre- crisis variable-rate allotment procedure.
ECB ‘Unwinding’
The discontinuation of the ECB’s six-month and 12-month tenders “is an unwinding of an ultra-expansionary” liquidity policy, Weber said. “I wouldn’t call this a tightening. We neither wanted to send a restrictive nor an expansionary signal.”
The ECB decided on Dec. 3 to end long-term emergency loans and to tighten the terms of its final 12-month tender as financial markets recover from the worst crisis since the Great Depression. Economists expect the Frankfurt-based central bank to increase borrowing costs in the third quarter of 2010, according to a Bloomberg News survey.
New Zealand’s dollar was the biggest gainer against the U.S. currency today after Reserve Bank Governor Alan Bollard said he expects to begin raising rates around the middle of 2010.
“If the economy continues to recover, conditions may support beginning to remove monetary stimulus around the middle of 2010,” Bollard said in a statement.
New Zealand’s economy will expand 1.9 percent in the first quarter of 2010 from a year earlier, the bank said in new forecasts published today. That’s better than the 1.3 percent pace predicted in September. Annual growth will accelerate to 4.2 percent by the first quarter of 2011, the bank said.
Benchmark interest rates are 3.75 percent in Australia and 2.5 percent in New Zealand, compared with 0.1 percent in Japan and as low as zero in the U.S., attracting investors to the South Pacific nations’ higher-yielding assets. The risk in such trades is that currency market moves will erase profits.
To contact the reporters on this story: Yasuhiko Seki in Tokyo at yseki5@bloomberg.net; Daniel Kruger in New York at dkruger1@bloomberg.net
Last Updated: December 9, 2009 18:16 EST
About Crown Trading Systems, Inc.
Crown Trading Systems delivers powerful and reliable computer systems enabling a person to view data and information from hundreds of sources, move, maximize and manage different applications between monitors with a single click, across a simultaneous panorama view of 2 to 16 computer monitors and 150 plus windows from a single computer. With broadband access to the Internet, this can now be accomplished in any setting from a home, business or government location.
The primary customers for this system was originally create for the financial day traders, but other industries representatives during the CES show in 2008, such as Security and surveillance, casinos, music, film and sports businesses made it one of the busiest spot because of their interest in the system’s technology.
The company goal is to continue inventing and creating innovative technology to reduce energy and cost while making it comfortable for the end user. With the continuation of ideas and development, this company is getting stronger.
I like the model of this company here and to add they are up to date on their filings from what I can see via PinkSheets.