STOCK MARKET WATCH, Wednesday November 15

WEEKLY CHARTS

SUMMARY

For last week we said: "After today's and yesterday's price action we can safely conclude that--at the very minimum--half of the scenario#2 has been played out. Going forward, the rest of the scenario can unfold in three different ways which are illustrated below and are labeled as 2a, 2b, and 2c. In sub-scenario 2a, the major indices will experience a minor pullback over the next day or two, which will be followed by a resumption of today's rally. In scenario#2b, the major indices will reverse to the downside, and over the next 1-3 trading days they will make marginal new lows--just to fool the bears--and then they will reverse again, this time to the upside and they will go on to make marginal new highs--just to fool the bulls! In scenario#2c, the major indices will reverse to the downside over the next couple of days, they will violate support, and by next week they will end up at the first downside targets. The first two sub-scenarios are the most likely.

http://www.financialsense.com/Market/wrapup.htm

8:30 AM NY Empire State Index Nov
Briefing Forecast 11.0
Market Expects 14.0
Prior 22.9

10:30 AM Crude Inventories 11/10
Briefing Forecast NA
Market Expects NA
Prior 435K

2:00 PM FOMC Minutes Oct 25

http://biz.yahoo.com/c/e.html

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B25975DA3%2D436E%2D480A%2DAF85%2D23748CBEFF02%7D&dist=rss&siteid=mktwdist%3Drss&siteid=mktw

NEW YORK (MarketWatch) - The dollar slightly extended its gains early Wednesday after the New York Federal Reserve Bank said the Empire State index rose by about four points to a five-month high of 26.7 in November. Economists expected a decline to about 15.4 in November from 22.9 in October. At 2 p.m. Eastern time, the Federal Open Market Committee will release the minutes from its October interest-rate meeting. The euro was last down 0.2% at $1.2779, while the dollar edged up 0.4% at 118.13 yen.

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http://www.marketwatch.com/news/story/Story.aspx?guid={86A9BE03-C300-4491-8753-8AAC94AAA592}&siteId=mktw

WASHINGTON (MarketWatch) -- Business conditions for manufacturers in the New York region improved in November, with the Empire State index rising by about four points to a five-month high of 26.7, the New York Federal Reserve Bank reported Wednesday.

The diffusion index improved for a third straight month, surprising economists who had expected a decline to about 15.4 in November from 22.9 in October. See Economic Calendar.

...

The November Empire State was equivalent to a 59% reading in the ISM, said Ian Shepherdson, chief U.S. economist for High Frequency Economics, in an email. "Usually, the trend in the Empire State index and the ISM is broadly similar, but the gap between them is now enormous."

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The New York Fed's indexes for new orders, shipments, unfilled orders and employees all improved in November, as did the long-term outlook.

Specifically, the new orders index rose to 22.4 from 11.8, while the shipments index increased to 26.6 from 22.5 and the unfilled orders index improved to a reading of 10.2 from negative 1.5 in October.

The employee index rose to 24.5 from 19.4, marking the highest in more than a year.

The prices paid index increased to 34.9 from 30.8, while the prices received index fell to 17.0 from 17.5.

The future business conditions index improved to 37.8 from 30.2, with 51% of firms expecting business to get better in the next six months.

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http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B7D78AD7D%2D1339%2D4C4B%2D94F0%2D959977B002EC%7D&dateid=39036%2E4402113889%2D884635997&siteid=mktw

SAN FRANCISCO (MarketWatch) -- The Energy Department said crude supplies rose 1.3 million barrels to 336 million for the week ended Nov. 10. Motor gasoline supplies fell 3.7 million barrels to 200.3 million. Distillate inventories stocks fell for a sixth-straight week, down 3.6 million barrels to total 135 million barrels. Following the news, December crude rose by 67 cents to $58.95 a barrel. December unleaded gas added 2.52 cents to $1.57 a gallon and December heating oil was at $1.696 a gallon, up 3.28 cents.

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http://news.yahoo.com/s/ap/20061115/ap_on_bi_go_ec_fi/fed_minutes

WASHINGTON (Watch out - AP) - Keeping the economy from overheating with inflation remains the top concern of Federal Reserve policymakers, records of their most recent secret deliberations show.

The record of their Oct. 24-25 meeting, released Wednesday, revealed that in their discussions about the economy's health and even as they decided to hold interest rates steady, the Fed members worried somewhat more about the risk of inflation than the danger of the economy cooling down too much.

"All members agreed that the risks to achieving the anticipated reduction in inflation remained the greatest concern," the Fed minutes said.

The minutes also revealed that Fed policymakers debated the pros and cons of "inflation targeting" — numerically spelling out acceptable bounds for inflation. No decisions were reached and the discussion was expected to be resumed in 2007 at the at the Fed's first meeting of the year in late January.

Ben Bernanke, who took over as Fed chairman in February succeeding
Alan Greenspan, favors the notion of an inflation target and believes it would help the central bank communicate more effectively with Wall Street and Main Street.

Even with their concern about inflation risks, Fed policymakers still stuck to their forecast that slowing economic growth and a calming down of once surging energy prices will eventually lessen inflation pressures.

"Nearly all members expected that the economy would expand close to or a little below its potential growth rate and that inflation would ebb gradually from its elevated levels," the minutes stated.

/... The helicopter been opening its mouth, again, I see.

http://asia.news.yahoo.com/061115/3/2syab.html

WASHINGTON (Reuters) - Reducing U.S. inflation to counter any expectations of higher prices was the Federal Reserve's greatest concern when policy-makers met last month, according to minutes of the talks released on Wednesday.

"All members agreed that the risks to achieving the anticipated reduction in inflation remained of greatest concern," minutes of the Fed's policy-setting Federal Open Market Committee October 24-25 meeting said.

"Members noted that a significant amount of data would be published before the next committee meeting in December, giving the committee ample scope to refine its assessment of the economic outlook before judging whether any additional firming was needed to address those risks," the minutes said.

Fed participants expressed concern that inflation expectations could begin to drift up if core inflation remained elevated for a protracted period.

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SINGAPORE - Oil prices regained ground Wednesday as the market adjusted to declines the day before and traders awaited release of the weekly U.S. inventory report.

Light sweet crude for December delivery rose 21 cents to $58.49 a barrel in midafternoon Asian electronic trading on the New York Mercantile Exchange. On London's ICE Futures exchange, December Brent crude gained 31 cents to $59.15 a barrel ahead of its expiration later Wednesday.

After declining 25 percent from a summer peak above $78 a barrel, oil prices have hung close to the $60 level over the past month, even as the Organization of Petroleum Exporting Countries announced a 1.2 million barrel a day production cut and violence in Nigeria raised supply worries.

"For the first time in a while the market appears in a somewhat somnolent state: comfortable with current price levels and lulled by the lack of urgency from the geopolitical sphere," Mike Fitzpatrick, a vice president for energy risk management at Fimat USA, told Dow Jones Newswires.

http://news.yahoo.com/s/ap/oil_prices

Retail gasoline prices rose across the nation in the last week, led by California, which saw its first increase at the pump in 13 weeks. But experts said Monday that the jump did not signal a big upward trend, adding that prices would probably not rise significantly, barring supply problems, before February.

The price of a gallon of self-serve regular gasoline in California rose 6.8 cents to $2.464, according to the Energy Department's weekly survey of filling stations. Even with the increase, which reflected a rise in recent days in the price of wholesale gasoline on the spot market, the California average was still 11.8 cents lower than a year earlier.

Nationally, retail prices rose 3.2 cents during the week to $2.232, still a 6.4-cent decline from a year earlier.

http://www.latimes.com/business/la-fi-gas14nov14,1,1475055.story?coll=la-headlines-business

Nato advisers have warned the military alliance that it needs to guard against any attempt by Russia to set up an “Opec for gas” that would strengthen Moscow’s leverage over Europe.

A confidential study by Nato economics experts, sent to the ambassadors of its 26 member states last week, warned that Russia may be seeking to build a gas cartel including Algeria, Qatar, Libya, the countries of Central Asia and perhaps Iran.

The study, by Nato’s economics committee, said Russia was seeking to use energy policy to pursue political ends, particularly in dealings with neighbours such as Georgia and Ukraine.

On Monday night, Dmitry Peskov, deputy Kremlin spokesman, insisted there was “no substance at all” to the suggestion that Russia was seeking a gas cartel. “I think the authors of such an idea simply fail to understand our thesis about energy security,” he said.

http://www.ft.com/cms/s/af125540-7358-11db-9bac-0000779e2340.html

Nov. 15 (Bloomberg) -- US Airways Group Inc., formed by the merger of two carriers a year ago, proposed to take over Delta Air Lines Inc. in an $8 billion combination that would create the world's largest airlines when Delta emerges from bankruptcy.

Delta's creditors would receive $4 billion in cash and 78.5 million shares of US Airways worth about $4 billion based on the stock's closing price yesterday, US Airways said in a statement today. The proposal comes 14 months after US Airways combined with America West Holdings Corp. to emerge from its own bankruptcy.

Delta, which sought bankruptcy protection in September 2005, has cut unprofitable flights, reduced labor costs and shed aircraft to prepare to exit court supervision next year. Delta Chief Executive Officer Gerald Grinstein didn't reply to a September 26 letter proposing the merger, US Airways said.

-cut-

The merged airline, which would operate under the Delta name, would surpass AMR Corp.'s American Airlines as the world's largest carrier based on miles flown by paying passengers through September. US Airways, based in Tempe, Arizona, said a merger would provide $1.65 billion in annual cost savings for the two companies.

http://www.bloomberg.com/apps/news?pid=20601087&sid=awHeAgi9YECY&refer=home

FRANKFURT (Reuters) - Deutsche Boerse AG dropped its bid for Euronext on Wednesday, clearing the way for a transatlantic merger between New York Stock Exchange operator NYSE Group Inc. and Euronext.

Deutsche Boerse, which had been pursuing a pan-European tie-up for the best part of this year, said a deal that would have been supported by both sides was no longer feasible.

The management of Euronext, which runs the Paris, Amsterdam, Brussels and Lisbon stock exchanges, has repeatedly rebuffed the Frankfurt stock exchange operator in preference for the NYSE's bid.

-cut-

Confirming what sources had told Reuters on Tuesday, Deutsche Boerse said in a statement it would "stop all preparatory steps including the regulatory and merger control processes."

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=OBR&Date=20061115&ID=6199739

http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061115:MTFH73438_2006-11-15_08-12-53_L15169960&type=comktNews&rpc=44

LONDON, Nov 15 (Reuters) - European stocks opened stronger on Wednesday, buoyed by technology shares, after a rally on Wall Street pushed the Dow Jones industrial average <.DJI> to a record closing high as interest rate concerns waned.

By 0810 GMT, the pan-European FTSEurofirst index <.FTEU3> of 300 leading shares was up 0.4 percent at 1,469.5 points.

Across Europe, the FTSE .FTSE rose 0.5 percent, while Germany's DAX <.GDAXI> added 0.5 percent to reach a fresh 5-1/2 year high. France's CAC 40 <.FCHI> nudged 0.5 percent higher.

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Asian stocks outside of Japan hit a record high on Wednesday as exporters rallied on expectations of a strong U.S. holiday shopping season. <-- :eyes:

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http://www.ft.com/cms/s/c12de078-7461-11db-8dd7-0000779e2340.html

Tokyo shares ended the day flat, as some investors took profits following Tuesday’s across the board rally.

The benchmark Nikkei 225 average closed down 46.08, or 0.28 per cent, to 16,243.47, while the broader Topix index ended down 0.28 per cent at 1,592.00.

Investors sold shares after the Nikkei rose 1.7 per cent the previous day due to better-than-expected gross domestic product data, which underlined the strength of Japan’s economic recovery. Shares of stocks largely affected by domestic demand were slightly lower on profit-taking.

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http://asia.news.yahoo.com/061115/kyodo/d8ldcaqg0.html

(Kyodo) _ Benchmark 10-year Japanese government bond and futures prices rose with the yields down Wednesday on buying in line with the rise in U.S. bond prices Tuesday.

In interdealer trading, the yield on the No. 283 1.8 percent issue fell 0.030 percentage point from Tuesday's close to 1.690 percent.

The price of the key December futures contract for 10-year bonds rose 0.16 point to 134.61 on the Tokyo Stock Exchange, with the yield down 0.014 percentage point to 1.886 percent.

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http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061115:MTFH73562_2006-11-15_08-19-16_HFB077794&type=comktNews&rpc=44

HONG KONG, Nov 15 (Reuters) - Hong Kong blue chips rallied 1.1 percent to a record close on Wednesday as China mania resumed, with investors piling into cellular operator China Mobile (0941.HK: Quote, Profile, Research) and China Construction Bank (0939.HK: Quote, Profile, Research).

Mainland lenders again fuelled Hong Kong-listed shares in mainland companies, or H shares, to their fifth-straight record close.

The benchmark Hang Seng index <.HSI> cracked a moderately tough resistance level of 19,000 to end at 19,093.00.

The China Enterprises index of H-shares <.HSCE> jumped 1.8 percent to 8,240.23.

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http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20061115:MTFH73459_2006-11-15_08-13-45_SHA100291&type=comktNews&rpc=44

SHANGHAI, Nov 15 (Reuters) - China's central bank said on Wednesday that it would issue as much as 3 billion yuan ($381 million) in three-month bills in its open market operation on Thursday, following its hike in bank reserve requirements.

The size of the issue was cut sharply from 20 billion yuan of such bills issued on Thursday last week.

On Tuesday this week, the central bank sold 10 billion yuan of one-year bills. A total of 37 billion yuan of central bank bills matures this week, so the bank is likely to conduct a net injection of 24 billion yuan for the week.

Last week, the central bank injected a net 26 billion yuan into the banking system.

The latest reserve ratio hike of 0.5 percentage point in bank reserve requirements took effect on Wednesday and will lock up around 160 billion yuan.

Traders believe the central bank is being relatively generous with funds this week to facilitate the reserve rise, but that it will resume net drains next week.

/..

http://news.xinhuanet.com/english/2006-11/15/content_5334535.htm

BEIJING, Nov. 15 (Xinhua) -- China has used foreign direct investment (FDI) of 48.576 billion U.S. dollars in the first ten months, 0.34 percentage point higher year-on-year.

In the ten months, China approved a total of 33,068 overseas-funded companies, down 6.32 percent from the same period last year, said the Ministry of Commerce.

The number of newly approved overseas-funded companies dropped 0.97 percent year-on-year to 3,047 in October, but the FDI actually used in the month rose 15.92 percent in October to 5.987 billion U.S. dollars.

In the period, top ten countries and regions investing in China's mainland include Hong Kong, Japan, the United States, Taiwan and Germany. And 83.96 percent of the actual overseas investment came from the ten countries and regions.

China actually used FDI of 60.325 billion U.S. dollars last year.

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http://business.guardian.co.uk/story/0,,1947799,00.html

China must make greater efforts to encourage consumer spending in the hope of reining back its surging trade surplus before it creates dire consequences for the local environment, the World Bank said yesterday.

The development bank also warned the country's export-led boom would cause imbalances in the economy. To keep up growth averaging 10%, the bank said, Chinese leaders depended on an unsustainable increase in manufacturing output.

Rising labour costs and increases in the price of raw materials meant Chinese companies were spending more to create the same output than rival countries such as India. The bank said attempts by the government to squeeze investment growth were helping the situation but needed to be matched by growth in consumer spending.

...

Though wages have improved significantly in China, most workers have preferred to save more rather than spend more on consumer goods or services.

Younger people in the cities have started to spend more using credit cards and other forms of credit, but the vast majority have kept their wallets tightly shut. Much of the saving is a reaction to the declining role of the state as an employer. Most benefits, such as healthcare, which in rural areas remains basic where it exists at all, were provided by employers. However, more than 50% of the economy has been privatised over the past 10 years and few of the new private sector employers have stepped in to replace state funding.

/...

:donut: and lurkers. Good for the chinese consumers. They are showing good fiduciary responsibility. For all you minimalist/limited gov types out there...if you don't help with health care and pensions-this is what consumers should/will be doing-saving to pay for care instead of buying your useless trinkets. End of story.

About court yesterday...I subletted my previous apartment from this guy. The owner, whom I have become friends with, was going to sell the property to him if he could get a loan. In order to get the loan, he had to install plumbing in the rest room and plumbing in the kitchen and some add some electricty. They signed a six month contract. The guy was a total scam artist and is trying to put a mechanics lean on the house. I witnessed a lot of the work he didn't do and invalidated the evidence he presented. She has a good attorney but it is costing her. I feel badly, but I was a help to her.

And speaking of hellish landlords. Our landlord refuses to take my check, yes refuses. He insisted on moving my plants around because the fire department was going to fine him. We did that. Then he came out and said we only have one parking space and can only have one car. Well there are 10 apts and 9 spots so I can see that BUT, since the parking lot has been repaired, hubby works nights and I work days, AND several of the residents don't have cars, I can't see the problem. I spoke with the other tenants and it is not a problem. He then confronted me when I came home on the 13th and demanded a letter form me stating that I knew the rules (parking, plants)before he would accept my check. I did that and my rent and note have still not been picked up. Another couple have left. They told us he was acting like a butt to them too. I don't know the reasons for all of this but he can surely handle it in a more grown up manner than this passive aggressive non sense. Just tell us you don't want us and let us find a place. I am going to try to physically had him the rent with a witness today. We have done nothing wrong and yet he is trying to kick us out. What a mess. I will be trying to find a place. I suspect he doesn't like hubby's ethnicity or my straightforwardness at knowing my rights. It should be interesting.


Happy hunting and watch out for the bears.

http://www.ft.com/cms/s/f60f1314-7418-11db-8dd7-0000779e2340.html

The US needs to reassess its strategy towards south-east Asia while countries in the region should take concrete steps to enhance their competitiveness in order to optimise trade and investment between the two, the US Chamber of Commerce recommends in its first report on ways to boost mutual business links.

“ is our fourth-largest trading partner and we’ve hardly scratched the surface,” Tom Donohue, the president and chief executive of the US Chamber of Commerce, told the Financial Times while in Jakarta on a regional tour. “It’s got potential written all over it as well as challenges.”

The study, Southeast Asia: dynamic opportunities for US competitiveness, written in conjunction with the regional American Chambers of Commerce and to be released in Singapore on Wedenesday, sets out the steps the chamber thinks the US and the 10 members of the Association of South East Asian Nations should take to ensure an expansion of trade and investment between them.

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Recommendations for the US government include investing in capacity-building initiatives that support regional economic reform and integration, providing resources to bolster programmes in the region by institutions such as the US Export-Import Bank, raising awareness across the US of economic opportunities in south-east Asia and streamlining visa procedures.

South-east Asian nations need to establish predictable investment regimes, promote good corporate governance, increase protection of intellectual property, harmonise standards, integrate customs procedures and establish a more open and transparent agricultural market.

/..

http://www.hindustantimes.com/news/181_1844723,0002.htm

Banking sector stocks, led by State Bank of India, climbed on the bourses on Wednesday on fund-based buying on easing interest rate worries and robust growth in industrial production, lifting the segment index to a record high of 7,091.01.

The BSE Bank index was top performer among the key indices and surged by 196.21 points at 7,060.23 after touching an all-time high of 7,091.01 points. The robust showing was on the back of strength in shares of SBI, HDFC Bank and ICICI Bank, extending support to benchmark Sensex, which touched a record high of 13,506.08 points.

Stock brokers said overnight surge in US stocks and a steep fall in US core producer prices, which eased worries of rate hike by the Federal Reserve and reports that RBI has permitted the largest private sector bank ICICI Bank to open new branches, cheered the trading sentiments.

Fall in inflation and robust growth in industrial production in September was another factor behind current bull run in banking stocks, they said.

/...

http://www.irna.ir/en/news/view/menu-234/0611150899184232.htm

Encouraged by a robust performance in the industrial production, services sectors, like hotels and tourism, had more than expected increase in corporate earnings, 77 percent of India's top CEOs feel that India's GDP growth may well cross 8.5 percent in the current fiscal.

An overwhelming majority of over 250 CEOs and CMDs surveyed by ABB said India would not only maintain the eight percent growth trajectory but would aspire to achieve much higher growth and could come closer to China, said a ASSOCHAM release here today.

However, about 18 percent of those polled by the ABB survey said it could be a difficult call for the country's economy to sustain over eight percent economic growth, especially when the news from the agriculture front is not all that encouraging. As against 3.9 percent in the last financial year, the growth in the farming sector may not exceed three percent this year owing to late sowing in Khariff crops and the rub-off impact on the Rabi crops as well.

However, an overall feeling among the corporate honchos is that given the low share of the farm sector in the GDP (19.9 percent), the growth story would continue.

Industry which has 26.1 percent weightage in the GDP has shown a tremendous performance in the first six months of 2006-07. The IIP went up by 10.9 percent in April-September, 2006 as compared to 8.5 percent in the corresponding period last year.

Manufacturing topped the table with 12.1 percent growth while electricity generation significantly improved by 6.6 percent.

Significantly, faced with a large demand from the growing manufacturing sector, the electricity generation lived up to the expectations and logged a growth of 11.3 percent in September.

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http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39036.5206365741-884642659&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

Europe’s top car maker Volkswagen led a strong performance on the Xetra Dax yesterday, rising 5.3 per cent to €84.25 after Porsche said it was raising its stake in its German rival. Porsche said it planned to raise its holding to 29.9 per cent - the most it can own without launching a formal bid. Porsche shares fell 3.7 per cent to €880, despite the company also reporting a 70 per cent rise in full-year profit. Technology and telecoms stocks put in strong performances, lifted by earnings and renewed investor confidence in the sector.

The technology sector is getting more popular, and is both attractively valued and not yet overbought, Morgan Stanley in a note. Infineon, the German semiconductor maker, gained 3.4 per cent to €9.79 after Qimonda, its New-York listed memory chip unit, reported better than expected fourth-quarter results. STMicroelectronics, Infineon’s Franco-Italian rival, gained 3.2 per cent to €14.24.

The FTSE Eurofirst 300 gained 0.6 per cent to 1,470.83, while Frankfurt’s Xetra Dax gained 0.7 per cent to 6,430.89 and the CAC 40 added +0.6% 5511.53 in Paris.

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http://mwprices.ft.com/custom/ft2-com/html-story.asp?dateid=39036.5154976852-884642157&guid={505EC99B-A594-4E32-A7DC-F63F345FBDB5}

Vodafone and British Airways pushed London higher on Wednesday, a day which saw strong performances from stock markets around the world. Vodafone rebounded from Tuesday’s losses, adding 2.6 per cent to 139.25p after broker upgrades from UBS and Bernstein Research. British Airways, Europe’s third-largest airline, rose 4.7 per cent to 485.5p - its highest level since June 1999 - after it said it had agreed a pensions funding plan with the trustees of its New Airways Pension Scheme. Traders said the deal could help it secure a credit rating upgrade to investment grade status.

On the downside, platinum miner Lonmin fell 4.1 per cent to 2,956p after it said it had agreed to buy AfriOre, a South African mining company. Lonmin more than doubled its annual earnings after soaring platinum prices, but fell short of some investors’ expectations due to cost pressures.

London’s FTSE 100 index closed up 0.7 per cent at 6,229.8.

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http://allafrica.com/stories/200611150409.html

NEW Partnership for Africa's Development (NEPAD) has concluded arrangements to hold a conference in Nigeria to examine the role of SMEs as the vital and critical sector which drives most economies in Africa and the world in general .

Addressing a press conference weekend, Chairman of NEPAD Business Group Nigeria, Mr. Goodie Ibru said President Olusegun Obasanjo is expected to declare the conference open in Abuja as the conference will identify strategic measures which can be used to address the challenges and constraints facing the SMEs in Nigeria and Africa in general.

According to him "An array of key players, various stakeholders across the private sector in particular and from the public sector as well have been invited because of the role of the SMEs as vehicle for the economic transformation and development of our nation and continent. The deliberation is expected to focus on the Macro economic policy issues pertinent to SMEs, Financial Support Matters for SMEs; and SME Development Strategies".

Ibru stated that the objectives the conference seeks to achieve include: To affirm the critical role of the SMEs in industrialisation and employment generation; Identify and design creative solutions to the underlying infra- structural, institutional macro-economic and micro-economic policy, technological, financial and marketing constraints militating against the thriving of SMEs in Africa.

Others include: To consider, adopt and adapt innovative strategies including but not limited to franchising, incubation schemes and venture capital financing that have worked so well in other regions; To examine and draw out the lessons in SMEs development in other regions.

Speaking further, Ibru noted that the role of the private sector in realising the NEPAD vision cannot be overemphasized.

In his words "The unique selling point of NEPAD is that it is built on fulcrum of partnership between Africa and various local and international stakeholders. It is against this backdrop that the private sector is partnering with the government in the realisation of key NEPAD objectives through the instrumentality of the NEPAD Business Group. The holding of this conference is both a demonstration of the commitment of the Nigeria private sector to realising the NEPAD vision and an expression of our commitment to growing SMEs, as critical component of our industrialisation effort both in Nigeria and Africa".

The conference which is expected to hold in Abuja will commence from November 20 -22, 2006. While answering question on the reform programmes of the present administration, he said "The Obasanjo's reform programme is proper as NEEDS is achieved on NEPAD objectives. Every country in the world has its economic reforms tailored towards NEPAD's goals.

/...

:donut: :donut: :donut:

It's a light posting day for me. I'll check back this afternoon.

Have a great day!

Ozy :hi:

it seems. :hi:

http://quotes.ino.com/chart/?s=NYBOT_DX&v=i

Last trade 85.55 Change +0.25 (+0.29%)

Dollar Strengthens Across the Board...Will It Continue?

http://www.dailyfx.com/story/dailyfx_reports/daily_technicals/Dollar_Strengthens_Across_the_Board___Will_1163589224665.html

EURUSD – The larger triangle scenario continues to play out. This pattern favors a decline in what would complete the 5 wave triangle. Bearish targets going forward are at the 38.2% fibo of 1.2483-1.2902 at 1.2742 and the 61.8% at 1.2644. Often times, alternating legs of triangles will be equal to each other (or close to it) by a Fibonacci multiple. The C leg of the triangle was from 1.2938 to 1.2483 for a price distance of 455 pips. 61.8% of 455 is 281 – a decline from the top of leg E of the triangle, beginning at 1.2902, would travel 281 pips at 1.2621 (just below the 61.8% retracement of 1.2483-1.2938 at 1.2644). The long wicks on the daily candles indicate strong selling pressure as well.

<snip>

USDJPY – The tight range between 117.12 and 118.58 continues. The last 4 days have alternated as up day, down day, up day, down day, and today is so far an up day. A triangle has formed since the end of October and the upper end of the triangle is now resistance near 118.25. Triangle resistance is reinforced by recent daily highs that stretch to 118.58. It takes a rally through there to give scope to additional bullish potential. The lower end of the triangle at 117.30 is support, which is strengthened by the 11/13 low at 117.12.

<snip>

GBPUSD – Cable continues to plummet. The pair found interim support at the 11/6 low at 1.8945 (as we outlined yesterday) but has collapsed through there as well. Focus now shifts to the 10/20 high at 1.8859 and the 61.8% of 1.8515-1.9178 at 1.8769. The rhythm on the daily chart is telling. That is, recent declines in GBPUSD have lasted 4 to 5 days and been sharp (like this one). Today is the third day of the current decline, so the 61.8% at 1.8769 looks feasible. Former support at 1.8945 is now resistance.

...more...

US Markets Show Little Hesitation on Bearish Economic Data

http://www.dailyfx.com/story/dailyfx_reports/cross_markets_data_reaction/US_Markets_Show_No_Hesitation_1163548411219.html

How Did the Markets React?

US markets showed little initial hesitation following this morning’s weak economic data, sending bonds higher while offering stocks and US dollar lower following the news. Traders immediately reacted to the fact that Producer Prices fell by the largest amount on record, dropping 1.6 percent through the month of October. Such a pronounced decline in price levels was enough to send bonds significantly higher on reduced fears of higher interest rates through the medium term; yields on the 10-year Treasury Note stopped just 2 basis points short of 9-month lows. Expectations of lower interest rates were not enough to drive stock markets higher, however, as poor retail sales results worsened outlook on consumer spending. Indeed, the renewed bearishness forced equity indices to gap lower on the open before a later rally saw them close at or near record-highs. The US dollar posted similar price movements, falling significantly in the moments following the release but eventually closing higher on the day. Currency traders seemingly took the opportunity to take profits on the extended anti-dollar move, closing out positions ahead of Thursday’s consumer price inflation data.

Bonds – US 10-Year Treasury Notes

Bonds erased previous weakness following the morning’s news releases, rallying as many as 22/32 points off of overnight lows. Such a strong move underlined the bearish implications of the economic data, with investors fleeing riskier investments for the safety of fixed income markets. Given that personal consumption accounts for approximately two-thirds of domestic GDP, a continued slide in retail spending certainly bodes poorly for the future of US expansion. As such, bonds look to continue their recent strength if upcoming data shows likewise soft price inflation data. Due on Thursday, US officials will report on levels of consumer price inflation through the month of October. If CPI numbers print below expectations, we can expect bond yields to continue through 2006 lows. The prognosis for the US dollar is similar, with any weak data likely to spark a further Greenback decline.

...more...

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B4BD02409%2DE1FA%2D4341%2DB847%2D28426EE56DA8%7D&dist=rss&siteid=mktwdist%3Drss&siteid=mktw

NEW YORK (MarketWatch) -- The dollar briefly edged higher versus the euro and yen after the minutes from the latest Federal Open Market Committee meeting showed members remained concerned about the outlook for inflation. "Nearly all FOMC members viewed the current rates of core inflation as uncomfortably high and stressed the importance of further moderation," the minutes said. Fed officials appeared slightly less worried that the slowing housing market would lead the economy into a recession. The euro traded at $1.2804 vs. $1.2811 before the release of the minutes. The dollar was at 118 yen vs. 117.94 yen.

/. Didn't appear to last long, though

More on yesterday's story:

http://news.independent.co.uk/business/news/article1984471.ece

An eleventh-hour intervention by the British Government has halted the $2.4bn (£1.3bn) flotation of the defence contractor KBR, a subsidiary of Halliburton, which owns Devonport dockyard.

...

KBR is one of the Ministry of Defence's most important contractors, and its 51 per cent stake in DML is one of its most profitable assets. UK-listed Weir Group and Balfour Beatty are the other shareholders in DML.

The British Government believes that, separated from its giant parent company, KBR may not meet the standards of financial stability that it requires of companies entrusted with managing defence assets. Devonport is the main centre for refitting the Royal Navy's nuclear submarines.

...

In a revised prospectus last night, KBR said: "On 13 November, the MoD asked us to withdraw this offering pending the MoD's financial analysis of KBR on a stand-alone basis. The MoD also advised us that if we proceed with this offering without satisfying the MoD, the MoD will have little option but to take steps to cause the MoD to use its power to safeguard the essential security interests of the United Kingdom with respect to the Devonport Royal Dockyard."

...

In the first nine months of this year, Devonport contributed 46 per cent of KBR's operating income, one of the main attractions to investors considering taking part in the flotation. Halliburton is selling a 20 per cent stake in KBR and previously set the price range for the shares at $15-$17. That would net the parent company $418m-$473m and value KBR at up to $2.4bn.

/...

http://www.atimes.com/atimes/China_Business/HK15Cb01.html

BEIJING - China's state assets watchdog has approved the sale of a 50% stake in Xugong, a leading Chinese construction machinery manufacturer, to Carlyle Group, a private equity firm from the United States, the Economic Observer weekly said in its latest issue.

This may put an end to a year-long debate over whether China should sell controlling stakes in key state-owned enterprises to foreign investors.

The State Assets Supervision and Administration Commission has approved Carlyle's revised bid for Xugong. The deal is awaiting approval by the Ministry of Commerce (MOC) to take into effect, the report said, quoting a source close to the deal.

Carlyle originally offered US$370 million for a 80% stake in Xugong. The deal was submitted to the MOC for approval last December but was turned down amid rising concerns that foreign control of key Chinese firms could threaten the country's economic security.

The parties signed a new deal in mid-October, in which Carlyle reduced its stake to 50%, at a cost of 1.8 billion yuan ($229 million). Carlyle also loses the board chairmanship to Xugong, but will have equal representation on the board.

The new deal has been approved by the congress of employees as well as the Xuzhou city government and the government of east China's Jiangsu province, where the company is located.

/...

http://www.bloomberg.com/apps/news?pid=20601012&sid=aXVhtt7Io100&refer=commodities

Nov. 15 (Bloomberg) -- Copper fell for a second straight day in London after stockpile gains and a slowdown in the pace of Chinese industrial production fueled speculation that there will be an oversupply of the metal next year.

Inventory monitored by the London Metal Exchange gained 150 tons to 152,075 tons, the LME said in a daily report. Stockpiles have risen 70 percent this year to the highest level since April 2004. China's industrial output rose at the slowest pace in almost two years in October, the National Bureau of Statistics said today. China is the biggest copper user.

...

Copper for delivery in three months on the LME fell as much $85, or 1.2 percent, to $6,760 a ton. It was down $25, or 0.4 percent, to $6,820 as of 12:04 p.m. in London. The metal has dropped 22 percent since trading at an all-time high of $8,800 on May 11.

China's industrial output rose 14.7 percent from a year earlier, after gaining 16.1 percent in September. That was lower than every forecast of 20 economists surveyed earlier by Bloomberg News. Demand for metals including copper move in line with industrial activity.

Copper gained earlier this year as lower production at mines in Mexico and Indonesia prompted speculation that there may be a supply squeeze. Since then, increasing stockpiles monitored by commodity exchanges in London, Shanghai and New York changed some analysts' views. The stockpiles tracked by the exchanges climbed to 215,959 tons, according to data complied by Bloomberg.

/...

Dow 12,235.06 Up 17.05 (0.14%)
Nasdaq 2,439.65 Up 8.99 (0.37%)
S&P 500 1,394.90 Up 1.68 (0.12%)
10-Yr Bond 4.6070% Up 0.0390
NYSE Volume 545,783,000
Nasdaq Volume 444,140,000

10:00 am : Major averages extend their reach to the upside as buyers remain an active bunch. Even though industry leadership is evenly split, the five sectors trading higher are also among the most influential of the 10 S&P 500 sectors. Pacing the way is Industrials (+0.7%), as transportation stocks get a big boost amid speculation US Airways' (LCC 55.10 +4.17) proposed $8 bln merger with Delta Air Lines (DALRQ 1.71 +0.24) will spark more industry consolidation. The AMEX Airline Index is up 4.1% at a new 52-week high. Technology is also providing some notable leadership amid strong follow-through interest in chip stocks. Yesterday, the PHLX Semiconductor Sector Index surged 2.8%, which lifted the closely-watched index into positive territory for the year. DJ30 +26.01 NASDAQ +9.73 SOX +1.0% SP500 +2.97 NASDAQ Dec/Adv/Vol 1117/1390/218 mln NYSE Dec/Adv/Vol 1145/1551/100 mln

09:40 am : Decent follow-through buying seen at the onset of trading as momentum from yesterday's late-day rally carries over into today's open. Given the market's preoccupation with the pace of economic growth, an unexpected rise in the November NY Empire State Index is serving as a reminder that the manufacturing sector is still holding up reasonably well. Be that as it may, early market gains are modest at best as investors remain more focused on what this afternoon's release (14:00 ET) of the FOMC minutes from the October 25 meeting will say about inflation and the pace of economic activity. DJ30 +14.01 NASDAQ +5.35 SP500 +1.31 NASDAQ Vol 86 mln NYSE Vol 48 mln

09:15 am : S&P futures vs fair value: +0.4. Nasdaq futures vs fair value: +1.0.

09:00 am : S&P futures vs fair value: +0.6. Nasdaq futures vs fair value: +1.5. Still shaping up to be a slightly higher open for the indices as futures continue to trade above fair value. Be that as it may, there is little conviction on the part of buyers since all they have to hang their hat on for the moment, ahead of today's FOMC Minutes and tomorrow's CPI report no less, is a low-ranking regional manufacturing report hitting a five-month high.

08:33 am : S&P futures vs fair value: +1.3. Nasdaq futures vs fair value: +2.0. Futures versus fair value have improved since the last update and now indicate a slightly higher open for stocks as investors preoccupied with the pace of economic growth digest a report that suggests manufacturing conditions are not deteriorating significantly. The November NY Empire Index unexpectedly rose to 26.7 (consensus 14.0). Bonds, which were relatively unchanged ahead of the data, have weakened in response to the report. The 10-yr note is now down 6 ticks to yield 4.58%.

http://www.marketwatch.com/news/story/Story.aspx?guid=%7BD05A7682%2D523C%2D4341%2D8213%2DDE3B227E6A09%7D&siteid=

NEW YORK (MarketWatch) -- Maximus once said that death smiles at us all, and all we can do is smile back. The same can be said for the modern-day financial fray.
The mainstream media will have us believe that life has never been better for industrial America. The Dow Jones Industrial Average is at all-time highs, interest rates are low, inflation remains in check and earnings are trending in a positive direction.

So why doesn't it feel like we're in a societal sweet spot?

I speak to a lot of folks around the globe. Many are in finance, others are not. All seem to think that it now takes thrice the effort to make half the pay.
Yes, there are plenty of "haves," those who skew the demand for luxury items and trophy homes. And there are the "have nots," on the other side of our societal barbell, who have seemingly drifted from our collective conscious.

In between, where the middle class once existed, the meat of America is struggling to find its way to the right side of the fork.

There is a word for coincident inflation in things we need healthcare, energy and education and deflation in things we want, be it plasmas, cell phones or laptops. It's called stagflation. While that assertion will raise eyebrows in academic circles, it's a concept that will become all too familiar with time. And rest assured, by the time you see it on the front page of tomorrow's paper, it'll already be baked into the marketplace.

Webster's defines stagflation as an inflationary period accompanied by rising unemployment and a lack of growth in consumer demand and business activity. And that, on the surface, would seem to be a far cry from our current condition.
But this is a concept that should be quite familiar to readers of Minyanville. We've spoken about it at length as we've edged along the road to unlimited equity devotion. And it remains very much in play, albeit not in the conventional sense.
To understand where we are, we must understand how we got here. There's a distinct difference between legitimate economic growth and debt-induced demand. That DNA won't show itself in the flickering ticks, but it continues to manifest in everyday life.

/...

by Richard Daughty, the angriest guy in economics -- World News Trust

Nov. 14, 2006 -- Nervously peering through the periscope of the Impregnable Mogambo Bunker (IMB), I see that Total Fed Credit is back to its old ways last week, and was up -- but not by too much -- as the increase was only $1.8 billion. But enough, hopefully, to keep things simmering until an economic miracle happens, which is what it will take at this point.

Elsewhere in the banks, I squint my eyes to discern that reserves are up by a billion or so, but still ludicrously, comically inadequate in comparison with the banks' enormous liabilities and assets, and so it constitutes a kind of "theater of the absurd" to even pay attention to it anymore.

Chuckling to ourselves at the revelation, we abruptly swing over to look at the Treasury, and we relieve the dramatic tension by humorously noting that they believe that a miracle is found in issuing bonds "like it is going out of style," as they foisted another $10 billion of U.S. government debt on some unsuspecting idiots last week! This brings the total national debt up past a staggering $8.6 trillion, to a new, all-time, we-oughta-be-ashamed record. I gulp.

Wiping the sweat of fear from my eyes, I can also see a new mountain of money stacked up against the sky, as, to help things along, they even printed up more actual cash, taking the supply of greenback money up another $2.6 billion! In one week!

more

http://www.worldnewstrust.com/index.php?option=com_content&task=view&id=610

Until tomorrow when some fascist FEDhead says inflation isn't even a remote concern.

The FED is just a propaganda network used by the big banks to keep citizens dumb. And, it doesn't even work because the repuke's propaganda is so unbelievably full of sht.

OH well, back to the completely rigged and propped up markets.

http://news.yahoo.com/s/ap/20061115/ap_on_bi_st_ma_re/wall_street

NEW YORK (AP again) - Stocks extended their run-up Wednesday as Wall Street grew more confident that the Federal Reserve has inflation in hand, and as investors examined an $8 billion bid from US Airways Group Inc. for Delta Air Lines Inc.

Minutes from the Fed's Oct. 24-25 meeting showed the central bank's governors remain more worried about inflation than the risk the economy would slow too quickly under higher interest rates. Investors seemed to be buying on the notion that the Fed had struck a balance between taming inflation and keeping the economy from falling into recession.

/...

Dow 12,267.88 Up 49.87 (0.41%)
Nasdaq 2,444.29 Up 13.63 (0.56%)
S&P 500 1,398.35 Up 5.13 (0.37%)
10-Yr Bond 4.6130% Up 0.0450
NYSE Volume 2,330,783,000
Nasdaq Volume 1,760,388,000

3:00 pm : Albeit still trading in positive territory, stocks are now trading at their lowest levels of the afternoon as a renewed wave of selling pressure within the last 30 minutes nearly halves recent gains on all three major indices. After further analysis of the Fed's growing emphasis on inflation, the mention that core inflation remains "uncomfortably high" appears to be garnering some added interest since the last update. After all, tomorrow brings the all-important October core-CPI number and, in the event the data offer some surprises with respect to the direction of Fed policy, such inflation concerns will leave investors questioning the sustainability of a four-month rally in equities. To wit, the market appears to have run into some "round-number resistance" as the S&P 500 peaked just above the 1400 level right around the release of the minutes. DJ30 +30.14 NASDAQ +9.72 SP500 +3.14 NASDAQ Dec/Adv/Vol 1203/1810/1.63 bln NYSE Dec/Adv/Vol 1279/1939/1.23 bln

2:30 pm : Indices initially spiked lower following the release of the FOMC minutes, after "all members agreed that the risks to achieving the anticipated reduction in inflation remained of greatest concern" and nearly all participants viewed the current rates of core inflation as "uncomfortably high." To wit, Mr. Lacker dissented again because he believed that further tightening was needed to help "ensure that core inflation declines to an acceptable rate in coming quarters." However, Fed officials also noting that the housing market problems "did not seem to be spilling over into consumer spending," that the labor market remains tight and that "investment spending also appeared to be holding up well," is currently acting as an offset to a unanimous concern about inflation risks. As a result, the indices almost as quickly regained momentum and are currently back near their best levels of the day. DJ30 +55.07 NASDAQ +18.16 SP500 +6.20 NASDAQ Dec/Adv/Vol 1038/1947/1.45 bln NYSE Dec/Adv/Vol 1154/2053/1.09 bln

2:00 pm : More of the same for stocks as the market continues to rally into today's last scheduled economic report, the FOMC minutes. Even though the S&P 500 is above the 1,400 level for the first time in six years, the Nasdaq continues to outpace its blue chip counterparts to the upside, getting some additional help from a recent turnaround in computer hardware stocks. It is worth noting that above average volume is lending even more confidence behind today's extension of yesterday's rally. To wit, the Nasdaq surpassed 1.0 bln shares nearly two hours ago. DJ30 +56.75 NASDAQ +18.59 SP500 +6.80 NASDAQ Dec/Adv/Vol 1047/1931/1.31 bln NYSE Dec/Adv/Vol 1106/2055/992 mln

1:30 pm : Stocks continue to put together a respectable advance, especially considering yesterday's huge run-up and amid uncertainty ahead of today's FOMC minutes, which will be crossing the wires in 30 minutes. Bonds, however, continue to languish near session lows after an unexpected rise in the NY Empire State Index diminished hopes the economy is slowing enough to justify a possible interest rate cut anytime soon. To wit, the 10-yr note is still down 11 ticks to yield 4.60% as traders wait to see what the FOMC minutes will say about inflation and the pace of economic activity. The market will also be eyeing the report to see if other Fed officials sympathized with the only voting member (Lacker) to oppose the decision to leave interest rates unchanged for a third straight time. Yesterday, more optimism on the inflation front and a mixed retail sales report renewed hopes of the Fed possibly easing in early 2007, prompting a rally that lifted the 10-year note 11 ticks and pushed its yield to 4.56%.DJ30 +42.74 NASDAQ +15.84 SP500 +5.13 NASDAQ Dec/Adv/Vol 1123/1828/1.19 bln NYSE Dec/Adv/Vol 1159/2000/898 mln

1:00 pm : Major averages continue to claw higher as the bulk of industry leadership remains positive. Energy still paces the way, even as crude oil futures slip below $59/bbl, while Industrials isn't too far behind as airline stocks soar to new heights on takeover speculation. Health Care is also a notable leader to the upside, getting some help from an analyst upgrade on Abbott Labs (ABT 46.95 +0.77), while upbeat analyst commentary is also giving a lift to Consumer Staples. Altria Group (MO 82.44 +1.30) is surging 1.6% after it was upgraded to Buy at Goldman Sachs. DJ30 +33.30 NASDAQ +14.62 SP500 +4.41 NASDAQ Dec/Adv/Vol 1147/1775/1.10 bln NYSE Dec/Adv/Vol 1198/1949/820 mln

12:30 pm : As trading makes its way through the New York lunch hour, the Nasdaq finds itself trading at session highs. A turnaround in the PHLX Semiconductor Sector Index is providing some support, but much of the strength behind the tech-heavy Composite isn't necessarily coming just from tech. Nasdaq-listed retailers like COST (+1.3%), SPLS (+1.4%), BBBY (+1.6%), ROST (+4.8%) and URBN (+1.2%) are at session highs. The Nasdaq is also getting some assistance from Biotech (e.g. BIIB, CELG, GENZ, GILD, MEDI) and Trucking (e.g. CHRW, EXPD).BTK +0.9% DJ30 +19.69 DJTA 1.4% NASDAQ +13.15 SOX +0.4% SP500 +3.27 NASDAQ Dec/Adv/Vol 1185/1720/1.0 bln NYSE Dec/Adv/Vol 1177/1926/736 mln

12:00 pm : Stocks are holding their own in positive territory midday but market gains remain modest at best as investors weigh an upbeat economic report and M&A news against rising oil prices and the temptation to lock in profits following Wednesday's late-day rally. Yesterday, the Dow and Russell 2000 surged to new all-time highs.

Given the market's preoccupation with the pace of economic growth, an unexpected rise in the November NY Empire State Index is serving as a reminder that the manufacturing sector is still holding up reasonably well. There is little conviction on the part of buyers, though, since participants remain cognizant that the FOMC Minutes from the October meeting will be released this afternoon (14:00 ET) and will carry market-moving potential. The report will be studied carefully for signs of concern about inflation or weakness in the economy.

Meanwhile, with rising equity values opening the door to new business expansion, investors are applauding US Airways' (LCC 57.50 +6.57) proposed $8 bln merger with Delta Air Lines (DALRQ 1.68 +0.21). Not only is the deal fueling speculation about more consolidation among air carriers, lifting the AMEX Airlines Index (XAL +5.0%) to a 52-week high and helping the Industrials sector offer some influential leadership, but M&A news points to growing business confidence in a slowing economy. Analyst upgrades on JetBlue Airways (JBLU 15.20 +1.11) and AirTran Holdings (AAI 13.15 +2.08) are providing additional support behind today's best performing S&P industry group (+4.0%), especially in the face of rising oil prices that typically weigh on the group.

Crude for December delivery is now up 1.6% and back above $59/bbl following larger than expected declines in weekly distillate and gasoline supplies. Fortunately for the bulls, the Energy sector is taking full advantage and providing enough notable leadership as today's best performing sector (+1.0%) to help offset the commodity's potential inflationary characteristics. Consumer Discretionary, amid solid follow-through buying efforts in homebuilding, retail and autos, is also acting as a source of support as are modest gains in Health Care, Technology and Consumer Staples. BTK +0.6% DJ30 +16.37 DJTA +1.3% DJUA -0.2% DOT +0.6% NASDAQ +9.19 NQ100 +0.4% R2K +0.7% SOX -0.1% SP400 +0.6% SP500 +2.98 XOI +0.8% NASDAQ Dec/Adv/Vol 1172/1681/862 mln NYSE Dec/Adv/Vol 1143/1941/632 mln

11:30 am : Equities are still on the offensive as seven out of 10 sectors are now posting gains. Further appreciation in oil prices (+1.5%) continues to provide a floor of buying support for the Energy sector, which is now up 1.0%. To wit, Refiners (+2.0%), Oil & Gas Equipment (+1.7%), Drillers (+1.6%) and Explorers (+1.4%) are now aomng today's top ten performers. It is worth noting, though, that the Technology sector is now posting the smallest of gains and runs the risk of turning negative following a recent reversal in the PHLX Semiconductor Sector Index. Semiconductors was among this morning's top ten performing S&P industry groups but is now witnessing declines in half of its 16 components. DJ30 +18.73 NASDAQ +9.25 SOX -0.4% SP500 +3.01 XOI +0.7% NASDAQ Dec/Adv/Vol 1188/1631/726 mln NYSE Dec/Adv/Vol 1176/1833/512 mln

Enron's Causey sentenced to 66 months in prison
Wed Nov 15, 2006 3:17pm ET

HOUSTON (Reuters) - A U.S. judge on Wednesday sentenced former Enron Corp.
chief accounting officer Richard Causey to 66 months in prison for approving
the bogus bookkeeping that led to the company's 2001 collapse.

U.S. District Judge Sim Lake set Causey's sentence at 66 months, or five and
a half years. Causey, 46, pleaded guilty to securities fraud in late December
2005, weeks before he was scheduled to go on trial with former Enron founder
en Lay and chief executive Jeff Skilling, both of whom were found guilty in
May. Lay died of a heart attack on July 5.

link

Dow 12,251.71 Up 33.70 (0.28%)
Nasdaq 2,442.75 Up 12.09 (0.50%)
S&P 500 1,396.57 Up 3.35 (0.24%)
10-Yr Bond 4.6150% Up 0.0470
NYSE Volume 2,830,027,000
Nasdaq Volume 2,175,096,000

4:20 pm : The underlying bullish trend was again the market's friend Wednesday as investors rallied around more data suggesting the much-desired soft landing remains on track and A resurgence in merger activity. For a second straight day, the Dow and Russell 2000 closed at new all-time highs.

Given the market's preoccupation with the pace of economic growth, an unexpected rise in the NY Empire State Index served as a reminder that the manufacturing sector is still holding up reasonably well. That stronger than expected early read on November manufacturing conditions, coupled with US Airways' (LCC 59.50 +8.57) proposed $8 bln merger with Delta Air Lines, and Boeing (BA 87.06 +1.32) reportedly poised to receive more than $10 bln worth of additional business, provided a floor of support for the Industrials sector.

In fact, the possibility of more M&A deals waiting in the wings for air carriers helped the majority of airline stocks, which are typically sensitive to oil prices, completely look past a rebound in energy prices. The AMEX Airlines Index surged 5.2% to a new 52-week high.

After logging its biggest three-day decline since mid-September, crude for December delivery closed up 0.8% at $58.76/bbl following larger than expected declines in weekly distillate and gasoline supplies. Fortunately for the bulls, the Energy sector took full advantage and provided enough notable leadership as today's best performing sector to help offset the commodity's waning inflationary influence.

To wit, the minutes from the October 24-25 FOMC meeting noted that, "with energy prices well off the highs reached earlier in the year, members felt that it was no longer appropriate to note that the high level of energy prices had the potential to sustain inflation pressures." Perhaps most noteworthy with regard to this afternoon's report was the fact that it brought few surprises. In particular, there was no mention about concern that a recession might be developing.

Sure, "all members agreed that the risks to achieving the anticipated reduction in inflation remained of greatest concern." Also, nearly all participants viewed the current rates of core inflation as "uncomfortably high," which contributed to some late-day choppiness since tomorrow morning brings the all-important October core-CPI number (8:30 ET). Nonetheless, Fed officials also noting that the "upside risks to inflation had declined" and showing that many participants "drew some comfort" from the fact that the housing market problems "did not seem to be spilling over into consumer spending," and that "investment spending also appeared to be holding up well" kept buyers in control of the action into the close.

Preventing an even stronger rally, though, was a lack of leadership from the rate-sensitive Financials sector. While today's M&A plays into our favorable outlook on the investment banks, the spread between the 2-year and 10-year notes slipping deeper into inversion weighed on the banks. Treasuries sold off after a stronger than expected read on manufacturing conditions diminished hopes the economy is slowing enough to justify a possible interest rate cut anytime soon.BTK +0.9% DJ30 +33.70 DJTA +1.4% DJUA -0.4% DOT +0.6% NASDAQ +12.09 NQ100 +0.4% R2K +0.9% SOX +0.4% SP400 +0.6% SP500 +3.35 XOI +0.5% NASDAQ Dec/Adv/Vol 1191/1862/2.15 bln NYSE Dec/Adv/Vol 1240/2018/1.62 bln

3:30 pm : Recent profit-taking efforts are short lived as buyers get back in the driver's seat heading into the final stretch. The Dow is poised to close at a new record high for a second straight day, as 21 of its 30 components are trading higher, while the S&P 500 is inching toward finishing above the 1400 level for the first time since November 9, 2000. Faring even better are small caps, as evidenced by the Russell 2000 surging 0.9% to an all-time high and extending its year-to-date gain to more than 18%. DJ30 +52.11 NASDAQ +14.14 SP500 +5.10 NASDAQ Dec/Adv/Vol 1205/1829/1.78 bln NYSE Dec/Adv/Vol 1243/1986/1.33 bln

but at almost 8pm - I figure, what does it matter? By the way - since we hear so frequently about this "soft landing", how do we know when we've landed?

Dow 12,251.71 Up 33.70 (0.28%)
Nasdaq 2,442.75 Up 12.09 (0.50%)
S&P 500 1,396.57 Up 3.35 (0.24%)
10-Yr Bond 4.615% Up 0.047
NYSE Volume 2,901,857,000
Nasdaq Volume 2,202,202,000

4:20 pm : The underlying bullish trend was again the market's friend Wednesday as investors rallied around more data suggesting the much-desired soft landing remains on track and a resurgence in merger activity. For a second straight day, the Dow and Russell 2000 closed at new all-time highs.

Given the market's preoccupation with the pace of economic growth, an unexpected rise in the NY Empire State Index served as a reminder that the manufacturing sector is still holding up reasonably well. That stronger than expected early read on November manufacturing conditions, coupled with US Airways' (LCC 59.50 +8.57) proposed $8 bln merger with Delta Air Lines, and Boeing (BA 87.06 +1.32) reportedly poised to receive more than $10 bln worth of additional business, provided a floor of support for the Industrials sector.

In fact, the possibility of more M&A deals waiting in the wings for air carriers helped the majority of airline stocks, which are typically sensitive to oil prices, completely look past a rebound in energy prices. The AMEX Airlines Index surged 5.2% to a new 52-week high.

After logging its biggest three-day decline since mid-September, crude for December delivery closed up 0.8% at $58.76/bbl following larger than expected declines in weekly distillate and gasoline supplies. Fortunately for the bulls, the Energy sector took full advantage and provided enough notable leadership as today's best performing sector to help offset the commodity's waning inflationary influence.

To wit, the minutes from the October 24-25 FOMC meeting noted that, "with energy prices well off the highs reached earlier in the year, members felt that it was no longer appropriate to note that the high level of energy prices had the potential to sustain inflation pressures." Perhaps most noteworthy with regard to this afternoon's report was the fact that it brought few surprises. In particular, there was no mention about concern that a recession might be developing.

Sure, "all members agreed that the risks to achieving the anticipated reduction in inflation remained of greatest concern." Also, nearly all participants viewed the current rates of core inflation as "uncomfortably high," which contributed to some late-day choppiness since tomorrow morning brings the all-important October core-CPI number (8:30 ET). Nonetheless, Fed officials also noting that the "upside risks to inflation had declined" and showing that many participants "drew some comfort" from the fact that the housing market problems "did not seem to be spilling over into consumer spending," and that "investment spending also appeared to be holding up well" kept buyers in control of the action into the close.

Preventing an even stronger rally, though, was a lack of leadership from the rate-sensitive Financials sector. While today's M&A plays into our favorable outlook on the investment banks, the spread between the 2-year and 10-year notes slipping deeper into inversion weighed on the banks. Treasuries sold off after a stronger than expected read on manufacturing conditions diminished hopes the economy is slowing enough to justify a possible interest rate cut anytime soon.BTK +0.9% DJ30 +33.70 DJTA +1.4% DJUA -0.4% DOT +0.6% NASDAQ +12.09 NQ100 +0.4% R2K +0.9% SOX +0.4% SP400 +0.6% SP500 +3.35 XOI +0.5% NASDAQ Dec/Adv/Vol 1191/1862/2.15 bln NYSE Dec/Adv/Vol 1240/2018/1.62 bln

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Take your pick:

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