| Brokers saddled with huge NPAs, post-crash
MUMBAI: Till three weeks ago, retail brokerages were chasing customers with all kinds of offers, in a bid to goad them churn their portfolios more actively. And after last week's sensational crash in stock prices, brokers are still running after their clients. But this time, armed with legal notices to recover their dues, known in broking parlance as ‘uncovered debits'.
The term is used to denote outstandings on which brokers do not have any collateral that they can seize or liquidate to recover the dues from clients. The legal departments of these brokerages are said to be working overtime since last week as they figure out ways to retrieve the outstanding amount from clients. These disputes could force many high net worth individuals (HNIs) to shift their loyalties. “Clients who have defaulted at one place will go to another broker, and chances are that they will be greeted with open arms there," said an official at a domestic brokerage.
NYMEX Sets Daily Volume Records for Total Natural Gas Futures, Natural ...
NEW YORK, Feb. 12 /PRNewswire-FirstCall/ -- The New York Mercantile Exchange, Inc., a subsidiary of NYMEX Holdings, Inc. (NYSE: NMX) , today announced that it set daily volume records for total natural gas futures traded on electronic and open outcry venues and natural gas futures traded on the CME Globex electronic trading platform. On Friday, total natural futures, via electronic and open outcry trading, reached 233,173 contracts, surpassing the 228,728 contracts traded on November 28, 2001. Yesterday, electronically traded natural gas futures totaled 184,926 contracts, exceeding the 174,481 contracts traded on February 8. NYMEX launched its physically settled futures contracts for trading on CME Globex during regular open outcry trading hours on September 5, 2006, following its initial offering of financially settled, standard-sized and NYMEX miNY energy futures contracts for trading on CME Globex on June 12, 2006.
Xstrata shares rise as speculation grows of Vale offer
Takeover target Xstrata was in focus amid speculation that Brazil's Vale was pressing ahead with a potential offer for the Anglo-Swiss mining group. Last month, Xstrata admitted it was in "dialogue with a number of parties covering a range of topics of mutual interest such as industry consolidation". Market sources claimed that Vale, formerly CVRD, may have had an indicative offer accepted and could already be carrying out due diligence on Xstrata. .
American Express profit hit hard
AMERICAN Express's fourth-quarter profit dropped 10 per cent, with revenue missing analyst forecasts as customers defaulted more often, fanning worries the credit card and travel services company might struggle as the US economy weakens. Shares of American Express, part of the Dow Jones industrial average, fell $US1.30, or 2.7 per cent, to $US46.10 after-hours, after having risen 4.3 per cent during market hours. Net income for the fourth-largest US credit card issuer declined to $US831 million ($936 million), or 71 US cents per share, from $US922 million, or 75 US cents, a year earlier. Profit from continuing operations was also 71 US cents per share. Analysts on average had expected profit of 71 US cents per share. But net revenue, which rose 10 per cent to $US7.36 billion, was below the average forecast of $US7.78 billion, according to Reuters Estimates.
Asian shares mixed at close
The Nikkei average rose 0.67 per cent on Thursday as property stocks such as Mitsubishi Estate rose on land price data and Japanese drug maker Astellas Pharma Inc. climbed on higher profits. But bank shares rang up losses, with Mizuho Financial Co hitting its lowest since October 2005 at one point amid profit worries and global credit concern. The Nikkei ended 113.13 points higher at 16,984.11, recouping all of its earlier losses. The broader Topix index eked out a 0.03 per cent gain to finish at 1,669.33. KUALA LUMPUR
Malaysian share prices closed 0.50 per cent lower on Thursday after a volatile session amid lingering worries over possible global ramifications from the fallout in US credit markets, dealers said. The Kuala Lumpur Composite Index was down 6.21 points at 1,333.28, off a low of 1,323.76 and a high of 1,357.65.
TheStar.com | Golf | When Tiger talks even the bookmakers listen
One of the first rules of gambling used to be simple: don't bet on something to happen that has never happened before. When it comes to Tiger Woods, this rule seems to have been suspended. His recent suggestion that winning a one-season Grand Slam of golf is possible has dropped the odds considerably in Las Vegas and on the Internet bet sites. "I've won more than four tournaments a year. All I have to do is win the right four and I've done those a few times," Woods was quoted after winning the Buick Invitational to start his season. "I think it is possible." He's far from the only one. The Grand Slam proposition bet, which a post-Super Bowl traveller examined in Las Vegas this week, now is 7-1 in the Strip shops taking action. Think about that: A mere 7-1 on one winner of the Masters, U.S.
BMO also hit by credit crunch-related charges of $320M
Bank of Montreal has joined several other Canadian banks in announcing that it will take a fourth-quarter charge as a result of the credit crunch in the U.S. The bank expects pre-tax writedowns for the period of about $320 million in total, which will cut Q4 earnings by about 50 cents a share, BMO said in a release. BMO Financial Group said it would be hit by a $170-million pre-tax charge related to trading and structured credit-related positions and preferred shares and a $135-million pre-tax cost from its exposure to Canadian asset-backed commercial paper. The remaining $15-million writedown is related to losses from a $70-million investment in structured investment vehicles (SIVs), which borrow in the short-term commercial paper market to invest in longer-term vehicles.
Nizhny Novgorod Region
Steppe areas, bogs, and lakes with rare and relict plant species, forest tracts with valuable tree species and rare species of underbrush and grasses, arboretums, old parks and laneways, and unique trees were all declared protected.
The region is taking a series of measures to protect the habitats of animals and birds such as the muskrat, marten, beaver, otter, black stork, golden eagle, and various owls. Bears, moose, wild boars, wolves, lynx, wolverines, foxes, badgers, and grouse are some of the other inhabitants of the forests of Nizhny Novgorod Region.
There are more than 9000 rivers and streams in the region with a total length of 33 000 km. The Volga flows for 260 km through the region, and the Oka for 268 km. Other large rivers include the Sura, Vetluga, Pyana, Kerzhenets, and Pizhma.
Dollar: 1.50 Inevitable?
The FX market instantly interpreted the remarks as a sign that the Chinese will begin diversifying their currency assets away from the greenback pushed the dollar to new lows. As we noted on Wednesday," Although, Mr. Siwei has a history of making broad economic comments that often do not reflect actual policy, and although the National People’s Congress is not involved in directly setting currency targets, today reaction speaks volumes about the extent of anti-dollar sentiment present in the FX market right now." Yet with the market fixated on the 1.5000 figure the EURUSD may necessarily reach its mark. Positioning in the pair is beginning to reach extremes on the IMM, although our own SSI index shows more room to go. Just as oil failed to hit $100/bbl, the EURUSD may do the same for no other reason than simply because everyone expects it to do so.
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