Divisions between the world’s leading economies about coping with the rapidly weakening yen look set to prevent any concerted effort to stabilise the Japanese currency at this month’s Group of Seven finance ministers’ meeting in Germany.
But Japanese officials are braced for informal pressure over the depreciating yen at the Essen meeting, even if it is not raised in the final communiqué or discussed formally.
Tokyo’s nerves have been jangled by expressions of concern from senior officials in the US and Europe as the yen has hit 20-year lows in real terms against other major currencies
Read more at FT.com
Thursday, February 1, 2007
Dollar weaker before US jobs data, G7 looms
The dollar was steady against major currencies on Friday, nursing losses as investors awaited monthly U.S. jobs data and kept an eye out for more comments on the weak yen before next week's Group of Seven meeting.
The yen's 16 percent slide in the past three years to record lows against the euro has become the centre of attention before the G7 gathering as European officials have sought to make the currency's woes a major topic of discussion.
But Japanese and U.S. officials have played down the focus on the yen, with U.S. Treasury Secretary Henry Paulson telling Congress this week that the weak yen reflected Japan's low interest rates in trying to shake off years of deflation.
Read more at Reuters South Africa
The yen's 16 percent slide in the past three years to record lows against the euro has become the centre of attention before the G7 gathering as European officials have sought to make the currency's woes a major topic of discussion.
But Japanese and U.S. officials have played down the focus on the yen, with U.S. Treasury Secretary Henry Paulson telling Congress this week that the weak yen reflected Japan's low interest rates in trying to shake off years of deflation.
Read more at Reuters South Africa
Rand a touch weaker, watches US figures
South Africa's rand eased a bit against the dollar early on Friday, and traders expected it to track a 10-cent range ahead of U.S. employment data later in the day.
The rand was at 7.1830 versus the greenback at 0845 GMT, slightly off levels of 7.1601/dollar when New York closed on Thursday.
"The rand is still very much in ranges and really looking like we are going to move in ranges ahead of U.S. non-farm payrolls today," said Rand Merchant Bank trader Jim Bryson.
"We will go with something in the region of 7.16/21, and then we will follow the euro after non-farms," he added.
Read more at Reuters South Africa
The rand was at 7.1830 versus the greenback at 0845 GMT, slightly off levels of 7.1601/dollar when New York closed on Thursday.
"The rand is still very much in ranges and really looking like we are going to move in ranges ahead of U.S. non-farm payrolls today," said Rand Merchant Bank trader Jim Bryson.
"We will go with something in the region of 7.16/21, and then we will follow the euro after non-farms," he added.
Read more at Reuters South Africa
Harmony Q2 h'dline EPS down 33 pct, misses f'casts
Harmony Gold, the world's fifth biggest gold producer, posted a 33 percent slide in second quarter profit on Friday, worse than analysts' expectations, as output dipped and costs rose.
South Africa's Harmony Gold Mining Company Ltd said headline EPS for the three months to end December fell to 44 South African cents from 66 cents the previous quarter.
Harmony was expected to post a 25 percent fall in EPS to 50 cents, according to an average estimate of 9 analysts polled by Reuters. Their estimates were in a range of 20-70 cents.
Harmony said production for the quarter fell 3.8 percent to 18,724 kg while cash costs increased by 6.8 percent to 104,132 rand per kg.
Read more at Reuters South Africa
South Africa's Harmony Gold Mining Company Ltd said headline EPS for the three months to end December fell to 44 South African cents from 66 cents the previous quarter.
Harmony was expected to post a 25 percent fall in EPS to 50 cents, according to an average estimate of 9 analysts polled by Reuters. Their estimates were in a range of 20-70 cents.
Harmony said production for the quarter fell 3.8 percent to 18,724 kg while cash costs increased by 6.8 percent to 104,132 rand per kg.
Read more at Reuters South Africa
Steel sector mergers to continue
The search for size in the steel sector is set to intensify, analysts said on Thursday, with more deals like the merger of Tata Steel and Corus expected in the future as the industry continues to consolidate.
After the €27bn ($35bn) takeover of European steel group Arcelor by Mittal Steel last year, India's Tata Steel agreed to pay €10bn for British rival Corus on Wednesday.
Arcelor Mittal dwarfs it rivals, producing about three times as much as the second-biggest group in the world, Nippon Steel, while Tata/Corus will be either the fifth- or sixth-biggest supplier when the merger is completed.
Read more at FIN24.co.za
After the €27bn ($35bn) takeover of European steel group Arcelor by Mittal Steel last year, India's Tata Steel agreed to pay €10bn for British rival Corus on Wednesday.
Arcelor Mittal dwarfs it rivals, producing about three times as much as the second-biggest group in the world, Nippon Steel, while Tata/Corus will be either the fifth- or sixth-biggest supplier when the merger is completed.
Read more at FIN24.co.za
European stocks at new 6-yr high, FTSE index leads
European shares hit their highest levels in six years on Thursday, boosted by gains in oil firms and pharmaceuticals which helped the FTSE 100 index outperform, while global equities also rose on U.S. rate cut expectations.
The pan-European FTSEurofirst 300 index rose 1.4 percent to 1,535.6, taking the year's gains so far to 3.5 percent after last year's 16 percent rally. U.S. stocks were also trading higher.
BHP Billiton added 3.5 percent and Anglo American rose 2.7 percent. AstraZeneca advanced 3.4 percent as it unveiled plans to cut 4.6 percent of its global workforce and the pharmaceutical firm also met 2006 forecasts.
Read more at Reuters South Africa
The pan-European FTSEurofirst 300 index rose 1.4 percent to 1,535.6, taking the year's gains so far to 3.5 percent after last year's 16 percent rally. U.S. stocks were also trading higher.
BHP Billiton added 3.5 percent and Anglo American rose 2.7 percent. AstraZeneca advanced 3.4 percent as it unveiled plans to cut 4.6 percent of its global workforce and the pharmaceutical firm also met 2006 forecasts.
Read more at Reuters South Africa
JSE hits new all-time high
The JSE ended at an all-time highest level on Thursday after being buoyed by stronger resources and mining stocks.
The market had earlier touched a record trading high of 25 806.820 points.
The all share index ended 1.32% higher at a new closing high of 25 782.380, while platinum and resources gained 3.36% and 1.94% respectively.
The gold mining index added 0.61% while industrials improved 0.43%. Banks and financials climbed 2.80% and 1.79% respectively.
Read more at FIN24.co.za
The market had earlier touched a record trading high of 25 806.820 points.
The all share index ended 1.32% higher at a new closing high of 25 782.380, while platinum and resources gained 3.36% and 1.94% respectively.
The gold mining index added 0.61% while industrials improved 0.43%. Banks and financials climbed 2.80% and 1.79% respectively.
Read more at FIN24.co.za
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