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Tuesday, December 1, 2009


Asian markets rise, led by Japanese exporters
Shares for Japan's exporters led advancement in Asian-Pacific markets Tuesday. After Japan's Nikkei 225 closed with a 2.4% gain, the central bank announced a plan to inject liquidity into the financial system to counter a soaring yen and deflationary pressure. Meanwhile, South Korea's Kospi Composite and Taiwan's Taiex climbed 0.9%. Hong Kong's Hang Seng Index, China's Shanghai Composite and India's Sensex rose 1.3%. Australia's S&P/ASX 200 added 0.4%, and Singapore's Straits Times Index gained 1.4%. The Wall Street Journal (01 Dec.)

Dubai rejects assumption it is responsible for Dubai World debt
As creditors assumed that Dubai, United Arab Emirates, would guarantee the debt of Dubai World, the emirate rejected the idea. "Creditors need to take part of the responsibility for their decision to lend to the companies," said Abdulrahman al-Saleh, director general of the Department of Finance in Dubai. "They think Dubai World is part of the government, which is not correct." Dubai World said it is looking at a $26 billion debt restructuring, which would affect its property firms the most. The Wall Street Journal (30 Nov.)

Dubai scare reveals world's shaky recovery:
The financial problems of government-owned Dubai World show the world has not completely emerged from crisis. Some experts said the company's request for a six-month debt standstill is nothing more than another real estate bust. "I don't see what the big deal is," wrote Willem Buiter, an economist at the London School of Economics and Political Science. But news of the request sent currency traders scrambling for the security of the U.S. dollar, while share prices in Asia and the U.S. took hits. TIME (30 Nov.)

Treasury might penalize lenders that don't help curb foreclosures
The U.S. Treasury said it might sanction or penalize lenders that accepted state aid if they do not do enough to help struggling homeowners avoid foreclosure. The move is the latest in the Obama administration's effort to reduce the foreclosure rate. Some mortgage servicers also are being required to speed up their decision process for altering mortgage terms. JPMorgan Chase, Morgan Stanley and Citigroup were cited as among the best performers in the Making Home Affordable program. The Washington Post (01 Dec.)

*and you think Dubai's default is big. Wait till US municipalities start defaulting due to wall street's pillaging.
Municipal bond market heads toward $400 billion year
Preliminary data from Thomson Reuters show that the municipal bond market had its third-most-active November in history as local governments in the U.S. floated $37.76 billion in debt, a 46.7% increase compared with the same month last year. This year, municipalities have sold $373 billion in bonds. For the third time, the municipal bond market could surpass the $400 billion mark for annual sales, depending on December's supply. The Bond Buyer (free content) (01 Dec.)

*Canada's recession may be over (not likely really) but they are so far from recovery they don't even know it. Loonies alright!
Canada struggles out of recession with 0.4% growth in Q3
Statistics Canada gave the official word that the country emerged from recession during the third quarter, but the 0.4% GDP expansion fell short of what experts were expecting. The growth was driven mostly by a jump in imports, at an annual rate of 36%, suggesting considerable vitality on the part of Canada's consumers. The Globe and Mail (Toronto) (01 Dec.)

*India and you, perfect together. India is the place to invest. They have restructured consumer debt and forced counterparties to rescind their ridiculous derivative contracts. We should all take a lesson from their playbook.
India's GDP posts 7.9% expansion in Q3
Marking its strongest growth in six quarters, India's economy expanded 7.9% in the third quarter compared with the same period last year, the statistics bureau said. Manufacturing grew 9.2%, the strongest showing since June 2007. Bloomberg (30 Nov.)

World Bank blacklists Siemens' Russian unit for fraud, corruption
After discovering fraud and corruption by a Russian subsidiary of Siemens, the World Bank barred the unit from bidding on its projects for four years. The World Bank said it uncovered violations in a Moscow transportation project it financed. Siemens admitted the misconduct and agreed to contribute $100 million during the next 15 years to fight fraud and corruption worldwide. Reuters (30 Nov.)

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