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Fed. 14day RP + 8.00B [ even sofar..
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Gold de-hedging slows to a modest 31 T in Q3-GFMS
Wed Nov 28, 2007 6:17am EST
LONDON, Nov 28 (Reuters) - Gold de-hedging slowed markedly in the third quarter of this year, with 0.98 million ounces or 31 tonnes taken off the global producer hedge book, a study from precious metals consultant GFMS showed.
Total outstanding producer hedge positions stood at 32.61 million ounces, or 1,014 tonnes, in delta-adjusted terms at the end of the third quarter -- the lowest since mid-1992, GFMS said on Wednesday.
The study, compiled on behalf of Societe Generale, showed that the momentum of de-hedging had fallen from exceptional levels seen in the previous quarter.
Hedging allows producers to sell as yet unmined output at a set price on forward markets, guaranteeing a minimum price. But companies have preferred to buy back previously hedged output to take advantage of rising bullion prices, which hit 28-year peaks earlier this month.
Gold de-hedging hit a record high in the second quarter of this year, with 5.2 million ounces or 161 tonnes removed from producers' hedge books compared with the first quarter.
The outright elimination of two substantial hedge books, Newmont Mining (NEM.N: Quote, Profile, Research) and Lihir, led the reduction for that quarter, with activity slowing substantially this time around.
GFMS said that although a handful of producers collectively removed a large chunk of volume from the global hedge book, the end-Q3 gold price -- which rose $92.50 quarter on quarter -- helped to increase the average delta used to value the options portion of the book.
Spot gold <XAU=> was quoted at around $797 an ounce on Wednesday, having hit 28-year highs in early November at $845.50 per ounce.
(Reporting by Veronica Brown, editing by Michael Roddy)
http://www.reuters.com/article/marketsNews/idUKL2858742620071128?rpc=44
Beige Book: Full text
Summary of Commentary on
Current Economic Conditions
Reports from the twelve Federal Reserve Districts suggest that the national economy continued to expand during the survey period of October through mid-November but at a reduced pace compared with the previous survey period. Among Districts, seven reported a slower pace of economic activity while the remainder generally pointed to modest expansion or mixed conditions.
District reports indicated relatively soft retail spending; most retailers said that they were expecting a slow holiday season, with only small gains in sales volumes compared with last year. By contrast, tourist activity expanded further in most Districts. Providers of nonfinancial services to consumers and businesses generally saw continued solid growth in demand, although a few Districts pointed to reduced demand for transportation services. Reports from the manufacturing sector were mixed across Districts and sectors, suggesting little change in activity on net. Producers in the agricultural and natural-resources sectors saw robust demand, with sales of agricultural products spurred in part by rapid growth in export demand. The glut of available homes continued, keeping downward pressure on prices and construction activity. The demand for commercial real estate remained strong in most areas but showed signs of leveling off in some. Reports from banks and other financial institutions suggested slower growth in overall loan demand, with some Districts noting a reduction in the volume of commercial and industrial lending.
Upward pressures on the prices of final goods and services remained modest overall but were significant for products and services that rely heavily on food and energy inputs. Increases in the costs of energy and selected raw materials pushed up production and transportation costs for firms in various manufacturing and services sectors, although this was offset in part by price declines for lumber and transportation equipment. Food prices remained on an upward trajectory. Outside of products and services that rely heavily on energy and food inputs, final prices were reported to be largely stable or down a bit. Wage increases were moderate in general; upward wage pressures eased in a few areas where labor markets loosened slightly, although they remained strong for assorted groups of skilled workers.
Consumer Spending and Tourism
Reports on retail spending were downbeat in general, with several significant exceptions. Most Districts characterized sales as weak or indicated that they had softened, with a few reporting that the volume of sales had fallen relative to the preceding survey period or a year earlier. However, the Boston, Philadelphia, Minneapolis, and Kansas City Districts highlighted a pickup in retail sales relative to the preceding survey period. Among product categories, several Districts noted continued solid growth in sales of consumer electronics, while a few also noted that demand for luxury goods continued to rise at a healthy pace. By contrast, sales of automobiles and light trucks were flat to down, with contacts from several Districts expecting declines going forward.
Looking ahead, the reports were slightly pessimistic about prospects for the holiday retail season. Most Districts reported that retailers expect growth in retail sales to be modest at best relative to last year, and retailers generally were described as having a "cautious" attitude about the upcoming holiday season. Consistent with this assessment, the Richmond, Dallas, and San Francisco Districts reported early-season price discounting by retailers. In the Boston and Minneapolis Districts, retailers expressed cautious optimism for holiday sales, but they generally expect consumer spending to weaken in 2008. Several reports indicated that retail inventories have risen a bit of late and were higher than desired levels during the survey period.
Activity in the travel and tourism sector generally was at a high level and increased further in some cases. The Richmond, Minneapolis, and Kansas City Districts reported that tourist bookings grew or were above normal seasonal expectations during the survey period, and tourism activity in New York City remained at a high level. The Atlanta District reported that Florida's tourist trade was up, spurred in large part by foreign visitors. In contrast, visitor travel and business at major tourist destinations in the San Francisco District, including Hawaii and Southern California, have declined a bit from the high levels established in 2006.
Nonfinancial Services
Reports on nonfinancial services generally were consistent with expanding economic activity, with the primary exception of transportation services. Several Districts pointed to continued strong demand growth for health-care services, while the Richmond, St. Louis, and Minneapolis Districts noted an ongoing expansion for providers of legal and other professional services. The Dallas District reported steady demand for legal services but noted a shift toward litigation related to bankruptcy filings, which may signal a slowing economy. In the San Francisco District, demand for advertising services was held down by weak demand from sellers of automobiles and home furnishings. Providers of temporary staffing services saw strong demand in the Richmond District as well as a pickup from the legal and financial industries in New York City, but demand for temp workers was reported as "sluggish" overall by Dallas.
Available reports on the transportation sector suggest that the level of activity declined somewhat compared with the previous survey period. The Cleveland District reported that trucking volumes were "steady to declining" and that employment has fallen a bit; Dallas noted that overall shipping activity has weakened; and Atlanta reported lower shipping volumes for autos and materials for home construction.
Manufacturing
Manufacturing activity was mixed across subsectors but appeared to be largely stable on balance. Demand remained weak or fell further for machinery and manufactured materials related to home construction, such as lumber and concrete, and automakers have scaled back their production activities this year. By contrast, demand rose solidly for various other types of capital goods, such as non-automotive transportation equipment, information technology products, and machinery used in the agriculture, energy extraction, and mining industries. Chicago reported that steel production increased, in part because of reduced import competition of late, but Cleveland characterized steel shipping volumes as "flat" in that District. Among nondurable products, several Districts noted continued robust demand for food and significant gains for paper and plastics. However, Dallas reported "stable" demand for food and a drop in sales of corrugated boxes, and St. Louis noted that food manufacturers plan to lay off workers in that District. The reports generally indicated that increases in demand were especially strong for products and firms with significant export markets, for which sales have been boosted in part by the lower exchange value of the U.S. dollar.
Reports on capacity utilization suggested that manufacturers on net were operating near long-term average levels, albeit with substantial variation evident across sectors depending on the strength of product demand. The reports also suggested little change in utilization rates during the survey period. A few Districts reported on capital spending by manufacturers and other businesses, noting tentative plans for continued moderate capacity expansion, but with the proviso that actual spending will reflect realized needs as they develop.
Real Estate and Construction
Demand for residential real estate remained quite depressed, with only a few tentative and scattered signs of stabilization amidst the ongoing slowdown. Most Districts pointed to further increases in the inventory of available homes, with the earlier tightening of credit conditions for mortgage lending continuing to create barriers for some buyers. Consequently, prices on new and existing homes sold were reported to be down on a short-term or year-earlier basis in most Districts. The pace of homebuilding remained very low in general, and builders continued to shelve projects and lay off workers in many areas; contacts generally do not expect a significant pickup in homebuilding until well into next year at the earliest. Among scattered positive signs, however, co-op and condo sales in New York City picked up during the survey period, Richmond reported favorable readings on home sales in a few areas, and Kansas City reported that home inventories fell a bit in the Denver metro area. Weak home demand had mixed effects on conditions in rental markets: Chicago reported that builders' conversions of new homes to rental property put downward pressure on rents, while Dallas noted that demand for apartments picked up, in part because some potential homebuyers are unable to qualify for mortgages.
Demand for commercial, industrial, and retail space generally remained at high levels and expanded further in some areas, although signs of leveling off were evident in several Districts. Vacancy rates on commercial and industrial space remained relatively low in most Districts and declined in some, even where substantial new space has been added of late. Rents have risen accordingly in many areas. In the extreme, New York reported a 30 percent increase in asking rents on Manhattan office space over the past 12 months; however, this represents a smaller increase than in previous surveys, and a recent increase in vacancy rates there is likely to further temper that trend going forward. A few Districts reported emerging signs of declining demand for commercial space: this included assorted indicators of weaker demand in the major metro areas in the Boston District, reduced leasing activity in Philadelphia, commercial construction activity that was described as "flat to down slightly compared with a year ago" in Atlanta, and reduced transactions and rising vacancy rates in some parts of the San Francisco District. Construction of commercial and public buildings and infrastructure projects remained high in most Districts, however, partly offsetting low residential building activity and helping to limit losses in overall construction employment.
Banking and Finance
Lending to businesses generally was at high levels, but the reports suggested a slower rate of growth than in previous survey periods. Commercial and industrial lending activity changed little or declined in the Cleveland, Atlanta, St. Louis, Kansas City, and San Francisco Districts, although it increased noticeably in the Philadelphia District and continued to show modest growth according to Chicago. Lending standards for construction projects and commercial real estate transactions tightened further in the New York and St. Louis Districts, and they remained tight more generally and reportedly held down the volume of lending for these categories in the Boston District. The reports indicated slight increases in delinquencies on commercial and industrial loans and slightly larger increases for commercial mortgages in many areas.
Consumer lending was little changed on net, while residential mortgage lending continued its downward slide. More stringent credit conditions remained a constraint for residential mortgage lending in general, with additional tightening during the survey period reported by Chicago, Kansas City, and Dallas; scattered reports suggested slightly stricter standards on consumer loans as well. Mortgage delinquencies increased significantly in many areas, and some Districts pointed to slight deterioration in credit quality for consumer loans.
Agriculture and Natural Resources
Most Districts reported strong demand for agricultural products and favorable production conditions, with the primary exception of an ongoing drought in the Richmond and Atlanta Districts. Demand and sales were reported to be quite strong for a wide variety of tree and row crops, dairy products, and livestock. Several Districts noted that the rise in overall demand has been propelled in part by the lower exchange value of the U.S. dollar, which has spurred strong increases in export sales. Harvest and growing conditions were quite favorable in most areas. High corn production and yields were reported by Chicago, Kansas City, and Dallas. St. Louis and Minneapolis described healthy early-season conditions for winter wheat crops, while Kansas City described that crop's progress as normal. By contrast, dry weather undermined pasture conditions and created a need for supplemental feedings to livestock herds in the Kansas City and Dallas Districts. Moreover, drought conditions continued in the Southeast, and this reduced or delayed crop plantings and held down crop yields in the Richmond and Atlanta Districts.
Reports on the natural-resources sector indicated further growth from very high levels of activity. High oil prices have stimulated expanded drilling in the Atlanta and Dallas Districts; Minneapolis reported increased activity in the energy and mining sectors since the last report; and Kansas City reported that "energy activity remained robust." However, Cleveland reported a slight decline in production of natural gas.
Prices and Wages
Increases in prices of final goods and services generally remained modest, except for food and energy. Increases in the costs of energy and petroleum-related materials created upward pressures on transportation costs and the prices of some manufactured items; many producers responded by increasing final sales prices, although limited pricing power forced some to absorb cost increases in profit margins. In addition, food prices continued on their pronounced upward march, and some Districts highlighted price increases on various imported goods resulting from the lower exchange value of the U.S. dollar. Increases in final prices for products related to food and energy were moderate in general, however, and they were accompanied, in large part, by stable or declining prices for other products and services, including various construction materials and assorted retail merchandise.
Labor markets remained relatively tight overall but loosened in some areas, and wage pressures were largely unchanged from the previous survey period. Most reports suggested that wage increases continued at a moderate pace, with numerical reports in the range of 3 to 4 percent on an annual basis. Dallas and San Francisco reported that labor market tightness eased somewhat, relieving upward wage pressures in some areas, but Kansas City noted that wage pressures picked up. Wage gains remained especially rapid for assorted groups of workers with specialized skills used in expanding sectors, such as engineers in the San Francisco District.
Beige Book: Full text
Summary of Commentary on
Current Economic Conditions
Reports from the twelve Federal Reserve Districts suggest that the national economy continued to expand during the survey period of October through mid-November but at a reduced pace compared with the previous survey period. Among Districts, seven reported a slower pace of economic activity while the remainder generally pointed to modest expansion or mixed conditions.
District reports indicated relatively soft retail spending; most retailers said that they were expecting a slow holiday season, with only small gains in sales volumes compared with last year. By contrast, tourist activity expanded further in most Districts. Providers of nonfinancial services to consumers and businesses generally saw continued solid growth in demand, although a few Districts pointed to reduced demand for transportation services. Reports from the manufacturing sector were mixed across Districts and sectors, suggesting little change in activity on net. Producers in the agricultural and natural-resources sectors saw robust demand, with sales of agricultural products spurred in part by rapid growth in export demand. The glut of available homes continued, keeping downward pressure on prices and construction activity. The demand for commercial real estate remained strong in most areas but showed signs of leveling off in some. Reports from banks and other financial institutions suggested slower growth in overall loan demand, with some Districts noting a reduction in the volume of commercial and industrial lending.
Upward pressures on the prices of final goods and services remained modest overall but were significant for products and services that rely heavily on food and energy inputs. Increases in the costs of energy and selected raw materials pushed up production and transportation costs for firms in various manufacturing and services sectors, although this was offset in part by price declines for lumber and transportation equipment. Food prices remained on an upward trajectory. Outside of products and services that rely heavily on energy and food inputs, final prices were reported to be largely stable or down a bit. Wage increases were moderate in general; upward wage pressures eased in a few areas where labor markets loosened slightly, although they remained strong for assorted groups of skilled workers.
Consumer Spending and Tourism
Reports on retail spending were downbeat in general, with several significant exceptions. Most Districts characterized sales as weak or indicated that they had softened, with a few reporting that the volume of sales had fallen relative to the preceding survey period or a year earlier. However, the Boston, Philadelphia, Minneapolis, and Kansas City Districts highlighted a pickup in retail sales relative to the preceding survey period. Among product categories, several Districts noted continued solid growth in sales of consumer electronics, while a few also noted that demand for luxury goods continued to rise at a healthy pace. By contrast, sales of automobiles and light trucks were flat to down, with contacts from several Districts expecting declines going forward.
Looking ahead, the reports were slightly pessimistic about prospects for the holiday retail season. Most Districts reported that retailers expect growth in retail sales to be modest at best relative to last year, and retailers generally were described as having a "cautious" attitude about the upcoming holiday season. Consistent with this assessment, the Richmond, Dallas, and San Francisco Districts reported early-season price discounting by retailers. In the Boston and Minneapolis Districts, retailers expressed cautious optimism for holiday sales, but they generally expect consumer spending to weaken in 2008. Several reports indicated that retail inventories have risen a bit of late and were higher than desired levels during the survey period.
Activity in the travel and tourism sector generally was at a high level and increased further in some cases. The Richmond, Minneapolis, and Kansas City Districts reported that tourist bookings grew or were above normal seasonal expectations during the survey period, and tourism activity in New York City remained at a high level. The Atlanta District reported that Florida's tourist trade was up, spurred in large part by foreign visitors. In contrast, visitor travel and business at major tourist destinations in the San Francisco District, including Hawaii and Southern California, have declined a bit from the high levels established in 2006.
Nonfinancial Services
Reports on nonfinancial services generally were consistent with expanding economic activity, with the primary exception of transportation services. Several Districts pointed to continued strong demand growth for health-care services, while the Richmond, St. Louis, and Minneapolis Districts noted an ongoing expansion for providers of legal and other professional services. The Dallas District reported steady demand for legal services but noted a shift toward litigation related to bankruptcy filings, which may signal a slowing economy. In the San Francisco District, demand for advertising services was held down by weak demand from sellers of automobiles and home furnishings. Providers of temporary staffing services saw strong demand in the Richmond District as well as a pickup from the legal and financial industries in New York City, but demand for temp workers was reported as "sluggish" overall by Dallas.
Available reports on the transportation sector suggest that the level of activity declined somewhat compared with the previous survey period. The Cleveland District reported that trucking volumes were "steady to declining" and that employment has fallen a bit; Dallas noted that overall shipping activity has weakened; and Atlanta reported lower shipping volumes for autos and materials for home construction.
Manufacturing
Manufacturing activity was mixed across subsectors but appeared to be largely stable on balance. Demand remained weak or fell further for machinery and manufactured materials related to home construction, such as lumber and concrete, and automakers have scaled back their production activities this year. By contrast, demand rose solidly for various other types of capital goods, such as non-automotive transportation equipment, information technology products, and machinery used in the agriculture, energy extraction, and mining industries. Chicago reported that steel production increased, in part because of reduced import competition of late, but Cleveland characterized steel shipping volumes as "flat" in that District. Among nondurable products, several Districts noted continued robust demand for food and significant gains for paper and plastics. However, Dallas reported "stable" demand for food and a drop in sales of corrugated boxes, and St. Louis noted that food manufacturers plan to lay off workers in that District. The reports generally indicated that increases in demand were especially strong for products and firms with significant export markets, for which sales have been boosted in part by the lower exchange value of the U.S. dollar.
Reports on capacity utilization suggested that manufacturers on net were operating near long-term average levels, albeit with substantial variation evident across sectors depending on the strength of product demand. The reports also suggested little change in utilization rates during the survey period. A few Districts reported on capital spending by manufacturers and other businesses, noting tentative plans for continued moderate capacity expansion, but with the proviso that actual spending will reflect realized needs as they develop.
Real Estate and Construction
Demand for residential real estate remained quite depressed, with only a few tentative and scattered signs of stabilization amidst the ongoing slowdown. Most Districts pointed to further increases in the inventory of available homes, with the earlier tightening of credit conditions for mortgage lending continuing to create barriers for some buyers. Consequently, prices on new and existing homes sold were reported to be down on a short-term or year-earlier basis in most Districts. The pace of homebuilding remained very low in general, and builders continued to shelve projects and lay off workers in many areas; contacts generally do not expect a significant pickup in homebuilding until well into next year at the earliest. Among scattered positive signs, however, co-op and condo sales in New York City picked up during the survey period, Richmond reported favorable readings on home sales in a few areas, and Kansas City reported that home inventories fell a bit in the Denver metro area. Weak home demand had mixed effects on conditions in rental markets: Chicago reported that builders' conversions of new homes to rental property put downward pressure on rents, while Dallas noted that demand for apartments picked up, in part because some potential homebuyers are unable to qualify for mortgages.
Demand for commercial, industrial, and retail space generally remained at high levels and expanded further in some areas, although signs of leveling off were evident in several Districts. Vacancy rates on commercial and industrial space remained relatively low in most Districts and declined in some, even where substantial new space has been added of late. Rents have risen accordingly in many areas. In the extreme, New York reported a 30 percent increase in asking rents on Manhattan office space over the past 12 months; however, this represents a smaller increase than in previous surveys, and a recent increase in vacancy rates there is likely to further temper that trend going forward. A few Districts reported emerging signs of declining demand for commercial space: this included assorted indicators of weaker demand in the major metro areas in the Boston District, reduced leasing activity in Philadelphia, commercial construction activity that was described as "flat to down slightly compared with a year ago" in Atlanta, and reduced transactions and rising vacancy rates in some parts of the San Francisco District. Construction of commercial and public buildings and infrastructure projects remained high in most Districts, however, partly offsetting low residential building activity and helping to limit losses in overall construction employment.
Banking and Finance
Lending to businesses generally was at high levels, but the reports suggested a slower rate of growth than in previous survey periods. Commercial and industrial lending activity changed little or declined in the Cleveland, Atlanta, St. Louis, Kansas City, and San Francisco Districts, although it increased noticeably in the Philadelphia District and continued to show modest growth according to Chicago. Lending standards for construction projects and commercial real estate transactions tightened further in the New York and St. Louis Districts, and they remained tight more generally and reportedly held down the volume of lending for these categories in the Boston District. The reports indicated slight increases in delinquencies on commercial and industrial loans and slightly larger increases for commercial mortgages in many areas.
Consumer lending was little changed on net, while residential mortgage lending continued its downward slide. More stringent credit conditions remained a constraint for residential mortgage lending in general, with additional tightening during the survey period reported by Chicago, Kansas City, and Dallas; scattered reports suggested slightly stricter standards on consumer loans as well. Mortgage delinquencies increased significantly in many areas, and some Districts pointed to slight deterioration in credit quality for consumer loans.
Agriculture and Natural Resources
Most Districts reported strong demand for agricultural products and favorable production conditions, with the primary exception of an ongoing drought in the Richmond and Atlanta Districts. Demand and sales were reported to be quite strong for a wide variety of tree and row crops, dairy products, and livestock. Several Districts noted that the rise in overall demand has been propelled in part by the lower exchange value of the U.S. dollar, which has spurred strong increases in export sales. Harvest and growing conditions were quite favorable in most areas. High corn production and yields were reported by Chicago, Kansas City, and Dallas. St. Louis and Minneapolis described healthy early-season conditions for winter wheat crops, while Kansas City described that crop's progress as normal. By contrast, dry weather undermined pasture conditions and created a need for supplemental feedings to livestock herds in the Kansas City and Dallas Districts. Moreover, drought conditions continued in the Southeast, and this reduced or delayed crop plantings and held down crop yields in the Richmond and Atlanta Districts.
Reports on the natural-resources sector indicated further growth from very high levels of activity. High oil prices have stimulated expanded drilling in the Atlanta and Dallas Districts; Minneapolis reported increased activity in the energy and mining sectors since the last report; and Kansas City reported that "energy activity remained robust." However, Cleveland reported a slight decline in production of natural gas.
Prices and Wages
Increases in prices of final goods and services generally remained modest, except for food and energy. Increases in the costs of energy and petroleum-related materials created upward pressures on transportation costs and the prices of some manufactured items; many producers responded by increasing final sales prices, although limited pricing power forced some to absorb cost increases in profit margins. In addition, food prices continued on their pronounced upward march, and some Districts highlighted price increases on various imported goods resulting from the lower exchange value of the U.S. dollar. Increases in final prices for products related to food and energy were moderate in general, however, and they were accompanied, in large part, by stable or declining prices for other products and services, including various construction materials and assorted retail merchandise.
Labor markets remained relatively tight overall but loosened in some areas, and wage pressures were largely unchanged from the previous survey period. Most reports suggested that wage increases continued at a moderate pace, with numerical reports in the range of 3 to 4 percent on an annual basis. Dallas and San Francisco reported that labor market tightness eased somewhat, relieving upward wage pressures in some areas, but Kansas City noted that wage pressures picked up. Wage gains remained especially rapid for assorted groups of workers with specialized skills used in expanding sectors, such as engineers in the San Francisco District.
Fed.(2)3) 7day RP + 13.00B [net Drain -7.75B shell game ]
Fed.(3) 1day RP + 5.00B
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Fed.(2)3) 7day RP + 13.00B [net Drain -7.75B shell game ]
Fed.(3) 1day RP + 5.00B
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
W@G2 QQQQ 11/28/07 for a 11/30/07
51.60 bob3
51.50 rayrohn
51.20 Farooq
51.00 frenchee
49.96 The Cap'm
Fed. 43day RP + 8.00B [ net Drain sofar
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
#msg-24798917 [ PR on 28day 9B ]
Fed. 43day RP + 8.00B [ net Drain sofar
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
#msg-24798917 [ PR on 28day 9B ]
Fed. 1day RP + 14.75B [net Add +4.50B ]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Sloshing:
http://www.gmtfo.com/RepoReader/OMOps.aspx
Fed. 1day RP + 14.75B [net Add +4.50B ]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Sloshing:
http://www.gmtfo.com/RepoReader/OMOps.aspx
Citi Sells Stake to Abu Dhabi Authority
Monday November 26, 10:05 pm ET
Citigroup to Sell $7.5 Billion in Equity Units to Abu Dhabi Investment Authority
NEW YORK (AP) -- Citigroup Inc. said late Monday that it has reached an agreement to sell equity units with mandatory conversion into common shares to the Abu Dhabi Investment Authority in the amount of $7.5 billion.
"This investment, from one of the world's leading and most sophisticated equity investors, provides further capital to allow Citi to pursue attractive opportunities to grow its business," Acting Chief Executive Win Bischoff said in a statement.
The Abu Dhabi Investment Authority has agreed not to own more than a 4.9 percent stake in Citi and will have no special rights of ownership or control and no role in the management or governance of Citi, including no right to designate a member of the company's board of directors.
The Abu Dhabi Investment Authority will receive units that will be convertible into Citi shares at a price of up to $37.24 a share between March 15, 2010, and Sept. 15, 2011.
The investment was expected to close within the next several days.
Every Breath You Take
Futures (2) + World Indices
http://www.cme.com/dta/del/globex.html
http://money.cnn.com/data/premarket/
World Indices (2) Mini Charts
Updates every 60sec ~ Watch the dates!!
http://www.wwfn.com/commentary/oscharts.html
http://www.allstocks.com/markets/World_Charts/Asian_Stock_Markets/asian_stock_markets.html
Fed Taking Action to Counter Cash Crunch
Edit: only about 8.00B, not a big deal IMHO.
Monday November 26, 12:30 pm ET
By Jeannine Aversa, AP Economics Writer
Fed Announces Step to Counter Any End-Of-Year Cash Crunch
WASHINGTON (AP) -- To help alleviate any end of year cash crunch, the Federal Reserve announced Monday that it will conduct a series of special operations starting this week.
The Federal Reserve Bank of New York, in a brief statement, said it will make the first such operation on Wednesday, for about $8 billion. The operation, essentially makes available short-term, six-week loans, maturing on Jan. 10, to financial institutions, and thus boosts cash available to them.
The Fed didn't say when its next operation would be conducted. "The timing and amounts of subsequent term operations spanning the year-end will be influenced by market and reserve developments," the Fed said in its statement.
The Fed has engaged in such special operations in previous years, most recently in 2005.
By making sure there is ample cash, or liquidity, in the U.S. financial system, the Fed hopes to remove any upward pressure on its key short-term interest rate called the federal funds rate. The current target for the funds rate, the interest banks charge each other on overnight loans, is 4.50 percent. It is the Fed's main tool for influencing overall economic activity because the funds rate affects many other interest rates charged to people and businesses.
The end of year typically can be a time when financial institutions scramble for cash and the recent credit crisis has heightened concern.
The move was designed to reassure the markets.
Separately, the New York Fed announced some steps Monday to make it easier for financial institutions to borrow Treasury securities from the central bank. There's been increased demand for super-safe Treasury securities. A meltdown that started in the "subprime" mortgage market made to borrowers with spotty credit and has since spread to other more creditworthy borrowers has spooked investors and has increased their appetite for super-safe Treasuries.
Fed Taking Action to Counter Cash Crunch
Edit: only about 8.00B, not a big deal IMHO.
Monday November 26, 12:30 pm ET
By Jeannine Aversa, AP Economics Writer
Fed Announces Step to Counter Any End-Of-Year Cash Crunch
WASHINGTON (AP) -- To help alleviate any end of year cash crunch, the Federal Reserve announced Monday that it will conduct a series of special operations starting this week.
The Federal Reserve Bank of New York, in a brief statement, said it will make the first such operation on Wednesday, for about $8 billion. The operation, essentially makes available short-term, six-week loans, maturing on Jan. 10, to financial institutions, and thus boosts cash available to them.
The Fed didn't say when its next operation would be conducted. "The timing and amounts of subsequent term operations spanning the year-end will be influenced by market and reserve developments," the Fed said in its statement.
The Fed has engaged in such special operations in previous years, most recently in 2005.
By making sure there is ample cash, or liquidity, in the U.S. financial system, the Fed hopes to remove any upward pressure on its key short-term interest rate called the federal funds rate. The current target for the funds rate, the interest banks charge each other on overnight loans, is 4.50 percent. It is the Fed's main tool for influencing overall economic activity because the funds rate affects many other interest rates charged to people and businesses.
The end of year typically can be a time when financial institutions scramble for cash and the recent credit crisis has heightened concern.
The move was designed to reassure the markets.
Separately, the New York Fed announced some steps Monday to make it easier for financial institutions to borrow Treasury securities from the central bank. There's been increased demand for super-safe Treasury securities. A meltdown that started in the "subprime" mortgage market made to borrowers with spotty credit and has since spread to other more creditworthy borrowers has spooked investors and has increased their appetite for super-safe Treasuries.
OT: SUBPRIME----very funny
OT: SUBPRIME----very funny
That will bode well l'd expect
but maybe just more confusion on the toxic crap...it's the bankers that get the cash....more dilution dollar.
Fed. 1day RP + 10.25B [net Add +4.00B ]
Fed. 1day RP + 10.25B [net Add +4.00B ]
Honest Money Gold and Silver Report: Market Wrap
by Douglas V. Gnazzo
November 25, 2007
http://www.safehaven.com/article-8888.htm
Honest Money Gold and Silver Report: Market Wrap
by Douglas V. Gnazzo
November 25, 2007
http://www.safehaven.com/article-8888.htm
Fed. Ops: 34.25B Matures this week.
Mon: 6.25B 3day
Wed: 20.00B 7day
Thu: 8.00B 14day
Float: 46.25B
=========================================================
Temp Ops:
Perm Ops:
=========================================================
Public Debt:
Limit ~ $9,815 T
11/21 ~ $9,113 T
Fed. Ops: 34.25B Matures this week.
Mon: 6.25B 3day
Wed: 20.00B 7day
Thu: 8.00B 14day
Float: 46.25B
=========================================================
Temp Ops:
Perm Ops:
=========================================================
Public Debt:
Limit ~ $9,815 T
11/21 ~ $9,113 T
EZ, waiting game of giants
l take a pass on this one, will look for other M&A's.
Bolivia's Congress raises mining taxes
Fri Nov 23, 2007 10:27pm EST
http://www.reuters.com/article/marketsNews/idINN2316961620071124?rpc=44&sp=true
By Eduardo Garcia
LA PAZ, Nov 23 (Reuters) - Bolivia's Congress approved a reform to the mining tax code late on Friday that will substantially increase taxes on mining companies operating in the South American country.
Mining ministry spokesman Alfredo Zaconeta told Reuters the reform means mining companies will have to pay 37.5 percent of their income to the Bolivian state, up from 25 percent in the past.
The decision will affect several major global mining companies working in Bolivia, including U.S.-based Apex Silver Mines Ltd. (SIL.A: Quote, Profile, Research) and Coeur d'Alene Mines Corp. (CDM.TO: Quote, Profile, Research) (CDE.N: Quote, Profile, Research).
The tax reform also broadens the scope of the Complementary Mining Tax (CMT) -- which acts like a royalty -- to include minerals that currently do not pay the levy, like indium and wolfram.
Zaconeta said the royalty tax will be directly proportional to the price of the mineral in the international market.
Currently, it ranges from 1 percent to 10 percent.
The reform also aims to close a legal loophole that grants miners hefty discounts on income tax payments, Zaconeta said.
After taking office as the country's first president of indigenous descent in January 2006, leftist President Evo Morales drastically raised taxes on natural gas operations and nationalized reserves of the fuel.
He has repeatedly pledged to carry out similar reforms in the mining sector.
The tax hike and efforts to revitalize state-run mining company COMIBOL are at the heart of government plans to tighten the state's grip on Bolivia's vast reserves of tin, zinc, wolfram, lead, silver and gold. (Reporting by Eduardo Garcia; editing by Louise Heavens)
Bolivia's Congress raises mining taxes
Fri Nov 23, 2007 10:27pm EST
http://www.reuters.com/article/marketsNews/idINN2316961620071124?rpc=44&sp=true
By Eduardo Garcia
LA PAZ, Nov 23 (Reuters) - Bolivia's Congress approved a reform to the mining tax code late on Friday that will substantially increase taxes on mining companies operating in the South American country.
Mining ministry spokesman Alfredo Zaconeta told Reuters the reform means mining companies will have to pay 37.5 percent of their income to the Bolivian state, up from 25 percent in the past.
The decision will affect several major global mining companies working in Bolivia, including U.S.-based Apex Silver Mines Ltd. (SIL.A: Quote, Profile, Research) and Coeur d'Alene Mines Corp. (CDM.TO: Quote, Profile, Research) (CDE.N: Quote, Profile, Research).
The tax reform also broadens the scope of the Complementary Mining Tax (CMT) -- which acts like a royalty -- to include minerals that currently do not pay the levy, like indium and wolfram.
Zaconeta said the royalty tax will be directly proportional to the price of the mineral in the international market.
Currently, it ranges from 1 percent to 10 percent.
The reform also aims to close a legal loophole that grants miners hefty discounts on income tax payments, Zaconeta said.
After taking office as the country's first president of indigenous descent in January 2006, leftist President Evo Morales drastically raised taxes on natural gas operations and nationalized reserves of the fuel.
He has repeatedly pledged to carry out similar reforms in the mining sector.
The tax hike and efforts to revitalize state-run mining company COMIBOL are at the heart of government plans to tighten the state's grip on Bolivia's vast reserves of tin, zinc, wolfram, lead, silver and gold. (Reporting by Eduardo Garcia; editing by Louise Heavens)
The State of Global Mining
By Jackie Steinitz
24 Nov 2007 at 12:52 AM GMT-05:00
http://www.resourceinvestor.com/pebble.asp?relid=38126
The State of Global Mining
By Jackie Steinitz
24 Nov 2007 at 12:52 AM GMT-05:00
http://www.resourceinvestor.com/pebble.asp?relid=38126
Nuff said 'lncumbents'
United States will stand alone as the only industrialized country not to have signed the pact.
Definition:
somebody in office: somebody currently holding an official post, especially in a church or political organization
no political stuff here but l could not take a pass on this issue.
Fed. 3day RP + 6.25B [net Drain -8.75B]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Sloshing:
http://www.gmtfo.com/RepoReader/OMOps.aspx
Fed. 3day RP + 6.25B [net Drain -8.75B]
http://www.ny.frb.org/markets/omo/dmm/temp.cfm
Sloshing:
http://www.gmtfo.com/RepoReader/OMOps.aspx
W@G2 QQQQ 11/21/07 for a 11/23/07
50.60 bob3
49.89 frenchee
49.90 The Cap'm
Jim Rogers and Maria ( 8 min run )
http://www.cnbc.com/id/15840232?video=597238697&play=1
Gold rush begins for bars marking Chinese new year
Created: 2007-11-22
Author:Zhang Fengming
http://www.shanghaidaily.com/sp/article/2007/200711/20071122/article_338946.htm
THE gold rush returns - pre-sales of gold bars marking the new Chinese lunar year are already sizzling before they are due to hit the counter today.
The bars are scheduled to go on sale today in Beijing, which has an allotment of one ton among total nationwide sales of three tons. Sales to retail buyers in Shanghai are scheduled to start this weekend.
The issuer - China Gold Coin Inc, the country's sole wholesaler of gold bars and coins - plans to sell 300 kilograms to 500 kilograms of the bars in Shanghai and in neighboring provinces of Zhejiang and Jiangsu.
The bullions, each marked with a rat to denote next year's animal symbol according to the Chinese lunar calendar, will be sold by weight of 50, 100, 200, 500 and 1,000 grams.
"Sales are quite hot," said Shanghai Gold Coin Investment Co, a subsidiary of China Gold Coin which sells the gold bars.
The company said some regular buyers have already booked their pieces.
Six years ago, China Gold Coin became the country's first producer of investment-grade gold bars. Every time the bullions hit the market, they were sold out quickly due to the traditional view of gold as a safe haven and alternative investment option.
The bars are also sold with a buy-back guarantee, with prices based on gold prices in local and international markets plus a two-percent commission.
On seeing the lucrative market, lots of jewelers and commercial banks also launched gold bars, some of which can't be sold back to issuers.
The bars glitter as an investment alternative with the current state of the stock market, which is undergoing a correction, soaring property prices and relatively low bank interest rates for deposit accounts.
The benchmark Shanghai Composite Index has tumbled 11 percent this month, although the index has also doubled this year.
Investors are concerned that the short-term correction will continue, although analysts say the long-term bull run is far from ending.
Gold stands out when investors are seeking investment alternatives especially when inflationary pressure is high. China's consumer price index, the main gauge of inflation, rose 6.5 percent in October.
Few people have sold back the bullions to the issuer even though gold prices have almost doubled since the bars were first launched in the Year of the Goat.
"More buyers see the bullions as a long-term investment and as collections rather than a means to cash in short-term profits," China Gold Coin said.
Goldcorp Inc. Commences Drilling on Corex's Zuloaga Property, Mexico
Wednesday November 21, 6:00 am ET
http://ca.us.biz.yahoo.com/iw/071121/0331297.html
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Nov 21, 2007 -- Corex Gold Corp. (the "Company") (CDNX:CGE.V - News) is pleased to announce that Goldcorp Inc. ("Goldcorp") (Toronto:G.TO - News)(NYSE:GG - News) has begun a first phase drill program on the Company's Zuloaga property, Mexico.
Goldcorp has mobilized a core rig from Major Drilling, and on November 3rd commenced a first phase exploration drill program. The drill program is a three (3) core hole program of 800 meters each (2400 meters total). Goldcorp is currently half way through the first hole, which is designed to test a target that has been identified by way of mapping and sampling. Mapping to date consists of approximately 23 km2 at 1:20,000 scale and 5 km2 at 1:5,000 scale. A total of 147 rock-chip samples were also collected, and have been forwarded to ALS Chemex for analyses.
Under the Earn-In Agreement between the Company and a subsidiary of Goldcorp, Goldcorp can Earn-In a 70% interest in the Zuloaga Property by spending US$4,000,000 on exploration over a 5-year period and paying Corex US$150,000 over an 18 mo. period. Goldcorp shall have the option to increase its interest from 70% to 80% upon paying 100% of the expenditures associated with placing the Property or any part thereof, into commercial production based on a mine development project approved for all or part of the property, with 20% of such expenditures to be repayable to Goldcorp from related project cash-flows, or arranging the proportionate share of a debt financing.
The Company had granted an option to Hemis Corporation to acquire 49% of the Company's interest in a portion of Zuloaga property, but Hemis' option has now terminated before it was exercised.
China grants U.S. battle group shore rights in Hong Kong
By Chris Oliver
Last Update: 6:43 AM ET Nov 22, 2007Print Subscribe to RSS Enable Live Quotes
HONG KONG (MarketWatch) - Some of the 8,000 sailors aboard the USS Kitty Hawk carrier group will be able to enjoy shore leave in Hong Kong during the Thanksgiving holiday after Chinese officials reversed an earlier decision to turn the warships away. China's Foreign Ministry announced late Thursday it was granting permission for the ships to dock in Hong Kong for the Thanksgiving holiday on humanitarian grounds. The warships, comprising the aircraft carrier Kitty Hawk and its five support vessels, were originally scheduled to arrive in Hong Kong on Wednesday, as part of planned shore leave to coincide with the U.S. holiday. China did not provide an explanation for its earlier decision to bar the ships entry to Hong Kong, the former British territory which reverted to Chinese sovereign territory in 1997. "We have decided to allow the Kitty Hawk strike group to stay in Hong Kong during Thanksgiving, and it is a decision out of humanitarian consideration only," wire reports cited Chinese Foreign Ministry spokesman Liu Jianchao as saying.