October 2008 Economic Phenomena

Commonground · Oct 25, 2008

Re: October 2008 Economic Phenomena

[Indonesian news source]

OPEC Will Reduce Produksinya
Sabtu, 25 Oktober 2008, 13:20 WIB

The organisation of countries pengeksport OPEC world oil will cut off the production of oil in November came as far as 1 setetengah million barrel perhari This was caused by the price of world oil continued to experience the decline dramatically at least the price of US kind crude oil light could descend was supervised 66 dollar per barrel in the meantime the price of kind oil London Brent could descend until reaching 62.66 dolaar per barrel. As being quoted from BBC Dalam the meeting of the OPEC emergency in viena yesterday the president OPec Chakib Khelil said the decline in the price of this world crude oil was pushed by the crisis finanasial global that resulted in the decline in the request in crude oil. OPEC hoped that with the reduction in this production could stabilise the price of oil that descended dramatically in several last weeks. According to plan anggoata-angota OPec also will come back will carry out the meeting this coming December in Al jazair to overcome the decline in the price of this oil. However according to penagamat oil will despite OPEC reduce his production the price of crude oil could descend until being supervised 60 dollar perbarel that indicated the world recession continued to happen.

http://www.rri-online.com/modules.php?name=Artikel&sid=40221

Treyfish · Oct 25, 2008

Re: October 2008 Economic Phenomena

Customer bankruptcy domestic shipbuilding giant has been "abandoned single"

October 19, 2008 1:33:00

The financial crisis in the shipbuilding industry have a significant impact on

The continued prosperity of the Chinese shipbuilding industry for many years, the financial tsunami have been a serious blow: Recently Chinese shipbuilding giant COSCO Investment (Singapore) of the MPF, a customer bankruptcy, resulting in a lot of investors worried about its future performance and cash flow.

COSCO to invest on the evening of 15 on the SGX asked to respond to that the Group has taken note of the MPF customer has filed for bankruptcy protection, but so far the company has not yet received formal notification MPF.

COSCO Investment, said COSCO to invest in the company by the end of 2006 with the MPF signed a value of 119,000,000 U.S. dollars of contract, since MPF has to pay a total of 98,000,000 U.S. dollars in three payments before the end of 21,000,000 U.S. dollars this year, is expected to be 12 15 payment and the transfer of ships on the same day. However, the COSCO Dalian shipyard has not received MPF companies are unwilling or unable to pay the instructions will continue to perform their duties under the contract.
COSCO Investment, said, according to the contract, if the company does not pay MPF,'s Dalian Shipyard has the right to sell the ship. At current market prices, the income generated from the sale of coverage do not receive enough money. Therefore, MPF non-payment of the company's financial situation has not affected.

Group co-Jun factories close down

Mainland suppliers owed money 300,000,000

Group co-jun two factories to close down the current location of the plant, the town of Dongguan Zhangmutou announced that the Government take full control of the two factories and equipment.

It is reported that the town of Zhangmutou Government officials said that at present, the local government has allocated 24,000,000 yuan for advance since August has been co-Jun arrears of wages of workers, such as labor issues and arrangements for temporary accommodation of the workers live. 17-Jun combined group issued a statement that the High Court of Hong Kong has its own application for liquidation, and the court has appointed a provisional liquidator.

October 15, in co-Jun that the closure of two plants, the original supplier did not know each other very quickly to gather together jun. They come from Dongguan, Shenzhen, Guangzhou, Guizhou and other places. After the initial suppliers in private accounts, that the supplier may be involved in as many as 300 more than the non-payment of the purchase price could be as high as the total amount of 300,000,000 yuan.

Integrated

Local governments have put in the housing market

Ministry senior officials said try to allow

National real estate prices in major cities, local governments recently have taken real estate to the rescue package. In response, yesterday, housing and urban and rural areas, said Vice Minister of Construction Qiu Baoxing, should be allowed to try.

"Local governments have a responsibility to be able to make some policy options, the city government should be given a certain degree of freedom, if there is anything further to correct the problem, too late. At present, the Ministry of Construction of housing and urban and rural areas are being closely observed in various cities to the policies and activities And the effects of policy, the right time will come up with normative views. "Sina Finance
Analysis

The financial crisis hit the shipbuilding industry

Financing remains tight ship industry, the largest natural enemies, in Singapore, Deutsche Morgan Grenfell Securities analyst said the current global financial crisis intensified, so that a new ship and rig construction project financing crunch emerged, leading to the international shipping industry began to take Going down the root cause.

The analyst told reporters that the global credit crisis meeting on the impact of the shipbuilding industry has two main aspects.

First, the loan-to-time crisis brought about by the global financial crunch, making the owner in the face of the high cost of the ship when the financing difficulties and lead to abandon the ship. Abandoned by the loss of the deposit is not a small number, if not indeed can not, will not abandon the ship owner.

The second loan crisis on the shipping industry indirectly affect the shipbuilding industry. Into the current economic recession, the demand for bulk commodities trade will decline in the shipping industry through the recession delivered to the shipbuilding industry. Shipping freight rates in the market indexes since early last month has dropped by 67%. The market is now faced with orders not to delay the transfer and cancellation of orders for the possibility of the dilemma.

:tiphat:
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sharon sanders · Oct 27, 2008

Re: October 2008 Economic Phenomena

Asian markets swooned for the second straight trading day as fearful investors pulled out of the region's equity and currency markets, leading to a 12.7% drop in Hong Kong and a 6.4% drop in Tokyo.

<cite>Associated Press</cite>Hong Kong's Hang Seng Index traded sharply lower Monday.

In Japan, investors reacted with disappointment to government efforts to bolster the economy. Japan's finance minister verbally intervened in the market by suggesting the government is willing to counter the strengthening yen.
Hong Kong's benchmark index fell to its lowest level since May 2004, as investors fled shares of property companies, financial institutions and oil producers to avoid risk.
Markets in Shanghai, the Philippines and Taiwan also fell, while Mumbai and Bangkok were down intraday.
In Europe, the pan-European Dow Jones Stoxx 600 index fell 5% to 188.82, a level not seen since early 2003. The U.S. looked set for a dismal opening: The S&P 500 index futures contract was trading 4.3% lower at 828.70.
"Funds continue to offload their holdings due to redemption purposes and this is not going to end in the near term," said Louis Wong, research head at Phillip Securities in Hong Kong.

more.....

http://online.wsj.com/article/SB122506973693870831.html?mod=testMod

sharon sanders · Oct 27, 2008

Re: October 2008 Economic Phenomena

TODAY'S MARKETS
<small>OCTOBER 27, 2008, 5:17 P.M. ET</small>

Late Drop Leaves Dow Down 200

Stocks slid Monday, including one of the swiftest, bloodiest late-day drops yet in a month that's been chock full of them.
The Dow Jones Industrial Average ended with a 203.18-point loss, off 2.4%, at 8175.77, in a disappointing end to a session that had included triple-digit intraday gains. The blue-chip measure slid about 423 points from its daily high, set around 1:45 p.m. Eastern, with more than a third of its decline coming in just the last 10 minutes of trading.
View Slideshow

<cite>Reuters </cite>Share traders reacted to a rough open Monday in Frankfurt.

The session had been a back-and-forth one, with traders weighing new signs of global recession against promising signals for the U.S. financial sector and the housing market. But the more the market retreated from its highs, the more that the selling seemed to feed on itself, with some players apparently forced out of unprofitable positions to raise cash.
Recently, such activity has often produced an avalanche of selling. As hedge funds and other deep-pocket players unload stock to cover margin calls from their brokers, the market falls further, forcing others to sell. Additionally, many automated programs trading firms use are set to get end-of-day prices, which can create an even more frenzied bottleneck once traders start rushing for the exits.

more..

http://online.wsj.com/article/SB122510512018871623.html?mod=testMod

AlaskaDenise · Oct 27, 2008

Re: October 2008 Economic Phenomena

Why is it that Moscow's stocks are so much worse? They have lost almost 80% of their value since the high around the first of June.

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October 2008 Economic Phenomena

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