Market Update

UK Stocks Rise on Rio Tinto Stake Purchase

123jump.com Staff
01 Feb, 2008
New York City

A surprise stake at a 21% premium in Rio Tinto but a team of two aluminum companies lifted the mood investors. Stocks rallied led by asurge in mining companies.Rio Tinto increaesd 13%, BHP soared 10%, Vedanta Resources added 9%, and Antofagasta increased 7%. Xstrata, involved in talks with Rio added 5%. Purchasing Managers Index showed a decline in manufacturing activity in January. British Land fell on downgrade. Biffa and FKI rose on takeover speculations.

European Markets Soar on Rio Tinto Stake

123jump.com Staff
01 Feb, 2008
New York City

European stock markets gained 2% or more after two aluminum companies teamed to bid for a stake in Rio Tinto. The 12% stake purchased by Chinalco and Alcoa at 21% premium lifted mood across the region. U.K., France, the Netherlands, and Norway gained nearly 2.5%. Mining companies across the region closed higher. ThyssenKrupp gained 6% after it reported to buyback stocks and may be make acqusitions. Vinci in Paris traded higer on quarterly sales rise.

U.S. Stocks Recover on Microsoft Offer

123jump.com Staff
01 Feb, 2008
New York City

Microsoft bid for Yahoo dominated trading as investors digested possibilities of other hostile offers on the back of recent declines in stock prices. Dow Jones finished higher today, up 4.4% for the week. Exxon reported record earnings for the quarter and for the year on the rising demand and prices of crude oil. Chevron also reported solid increase in earnings. construction spending declined in December and in 2007. Payroll declined in December by 17,000 sparking fears of recession.

Yahoo Bid, Jobs Data, Range Bound Stocks

123jump.com Staff
01 Feb, 2008
New York City

U.S. stocks traded in a tight range as market grappled with two merger deals and employment data and earnings from Google, Chevron, and Exxon Mobil. Microsoft made an unsolicited $44.6 billion offer for Yahoo. The offe values the company at $31 per share, or 62% from close on Thursday. Chinalco and Alcoa together purchased 12% stake valued at $14 billion in Rio Tinto. The stake is widely viewed to thwart BHP from a taking over Rio Tinto. Exxon Mobil and Chevron fell after reporting earnings.

Microsoft Offers $44.6 B for Yahoo

123jump.com Staff
01 Feb, 2008
New York City

Microsoft offers $31 per share or $44.6 billion for Yahoo after it failed to convince Yahoo management of a friendly takeover. Yahoo stock jumped 50% after the offer from Microsoft. Microsoft bid reflects its desparation to catch in the online ad space which has been dominated by a one player, Google. The expensive offer may take years to pay. The takeover if successful, will be the second largest in the techonology sector.

Chinalco, Alcoa Acquire 12% Stake in Rio Tinto

123jump.com Staff
01 Feb, 2008
New York City

Chinalco and Alcoa have teamed to acquire 12% stake in UK mining company Rio Tinto. The surprise investment appears to have been made to prevent BHP from acquiring Rio Tinto. Chinalco will control 9% and Alcoa will control 3% in Rio Tinto. The 12% stake was acquired with an investment of $14 billion and purchased at 60 pounds per share, a 21% premium from closing price on yesterday. Alcoa contributed $1.2 billion in the stake purchase.

Chinalco Stake in Rio Tinto, HK Stocks Rebound

123jump.com Staff
01 Feb, 2008
New York City

Stocks in Hong Kong recovered ahead of the holiday season. Snowfall in China has disrupted transportation network stranding hundreds of thousands of people. Several mining facilities and commodities facilities are likely close down. Jiangxa Copper will shutdown 43% or 300,000 tons of smelting capacity as a result of power outages until mid-February.

Mizuho Loan Losses Spread Fear

123jump.com Staff
01 Feb, 2008
New York City

In Friday trading, Japanese shares declined as investors continued to worry about the loan losses news from Japanese banks. Japan''s second-biggest bank Mizuho fell 5% after reporting a subprime loss of 275 billion yen and cutting its outlook for 2008 by 26%. Concerns over the U.S. jobs data and an 8% decline in Sony shares to a 14-month low also hurt trading sentiment.

Japan Faces Higher Energy Costs

123jump.com Staff
12 Feb, 2008
New York City

Investors in Japan focused on rising subprime losses in the U.S. and surging metal and oil prices in the region. AIG sharply increased its losses from risky loans to $5.9 billion from $1.1 billion reported three months ago. Copper and oil rose as investors worried that bad weather conditions in China will hurt production. Indonesia is expected to lower by 90% LNG shipments to Japan.

Alumina Earnings Fell, Coal Mines Resumes

123jump.com Staff
31 Jan, 2008
New York City

Australian stocks gained as market turnover improved and sentiment recovered in Asia. Alumina 2007 earnings in 2007 fell 14.6%. Woolworth and Foodstuff were ordered by court to not make an offer for Warehouse Group before March. MFS asserted that Stell sale talks are on target. Rio Tinto announced full production shcedule at two of its coal mines and also expanded its smelting capacity in Canada. Origin Energy second quarter gas and oil sales increased to $126 million.

Markets in Europe Decline in January

123jump.com Staff
31 Jan, 2008
New York City

European stocks declined in January on the continued turmoil in credit market. Most markets fell between 10% and 14% in January, one of the worst performances for the month. Unemployment in Germany fell in January to the lowest level in fifteen years to 8.1%. Credit Agricole, AXA, Dexia, and Allianz fell on the worries on economic growth recession in the U.S. FItch cut its bond rating outlook on Friends Provident, stock plunged 11%. Akzo jumped 7% after sales rose at recently acquired ICI.

MBIA Comments, MasterCard Lift Stocks

123jump.com Staff
31 Jan, 2008
New York City

U.S. stocks rebounded from morning losses after unemployment claims rose at the end of the last review. Stocks made about turn in the afternoon, MasterCard reported sharply higher earnings and the bond insurer MBIA in a earnings conference call asserted that it has adequate capital to retain its AAA rating. Hedge fund Pershing Square has asserted that the company may not have capital to fund its future losses. MBIA estimated $3 billion of future losses, half of what Pershing has estimated.

Home Prices Rise at a Slower Pace

123jump.com Staff
31 Jan, 2008
New York City

Nationwide, mortgage lender, reported that home prices in the UK fell for the third month in a row in January. According to the lender the average price of a house has fallen from

U.S. Stocks Rebound, MasterCard Surges

123jump.com Staff
31 Jan, 2008
New York City

U.S. stocks recovered from the morning losses. MasterCard reported fourth quarter earnings of $1.37 per share on a revenue rise of 27.8% to $1.07 billion. Gross dollar volume in the quarter rose 15.2%. The strength in the consumer spending helped market to reverse the earlier decline. MBIA reported large loss on the account of more write-down in credit derivatives. Jobless claims rose at the end of the last review period.

December Fiscal Deficit Falls

123jump.com Staff
31 Jan, 2008
New York City

December fiscal deficit in India declined on 9% higher tax revenues keeping the government to meet its annual deficit target of 3.1% to GDP. Stocks in India fell as investors worried that global economic slowdown may hurt international investors sentiment. More than 60 stocks on BSE are now tradning below 50% of clsoing price at the end of 2007. Hindalco net profit decline 16% on 1.5% decline in revenue.