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Sunday, 30 December, 2012
LPG price soars to Rs 225 per kg
ISLAMABAD ONLINE
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He price of Liquefied Petroleum Gas (LPG) has been raised across the country and now it has reached Rs 225 per Kg from 180. According to Media reports, the market sources claimed that 11.8 KG LPG Cylinder price was Rs1699 and now it has reached at RS 1820. It is pertinent to mention here that the domestic cylinder price was Rs 578.85 in 2006. The market sources further claimed that the price of LPG has reached RS 225 KG in Murree, Mansehra, Muzaffarabad, Gilgit and tribal areas while it has been reached from 165 to 180 Kg in Islamabad, Rahimyar Khan, Faisalabad and Dera Ismail Khan.
‘Energy shortage caused Rs 200b annual loss to textile sector’ ISLAMABAD ONLINE
Power and gas outages in the country have yielded into Rs 200 billion annual losses to the textile sector during last four years. According to letter written from the ministry of Textile Industry to the ministry of Water and power, Petroleum and Natural Resources, textile sector has been termed as export oriented sector that not only contributes in billion of rupees to the national economy but also provided jobs to millions of people in the country. Sources revealed that though export of raw cotton, cotton yarn and export of low value-added textiles had increased, yet the value-added apparel and home textile exports declined considerably during the last four years. Bumper cotton production was recorded in the country during this period of time, however due to gas and power shortage, the industry was unable to consume the crop for value-added production. Due to tariff concession, easy market access, improved law and order situation and good energy supply in Bangladesh, Turkey
and Sri Lanka, some textile units have relocated there. Availability of utilities, low utility price and subsidies that have been provided by competitor governments are disadvantaging textile exports of Pakistan. Further, due to poor law and order situation, production losses have increased, but the main reason behind these losses was gas and power shortage in the country, sources maintained. To address the issues of textiles sector and make it self-sustainable, the government
approved first ever Textile Policy (2009-14) in August 2009 that envisaged boosting textile exports to $25 billion in five years. The Cabinet while approving the Textile Policy also approved the proposal that the textile industry will be exempted from load-shedding and would enjoy priority. However, government failed to ensure gas and power to the industry and it failed to meet its production and export targets as was envisaged in the policy, sources maintained.
Commodity prices end year mixed amid US budget impasse LONDON: Commodity prices were mixed this week, heading towards the end of 2012, a year in which the values of raw materials such as oil and gold were determined largely by global economic strains and recovery hopes. Oil prices rose in limited trading amid both the festive season and a stalemate in talks to avert the “fiscal cliff” of US tax hikes and spending cuts. Traders are concerned by political bickering in Washington over a new budget due to take affect on January 1. In recent weeks, Democratic and Republican leaders have rejected offers from the other side and broke for the Christmas holiday blaming each other for failing to find a deal. On Friday, markets were waiting for an 11th-hour meeting between US President Barack Obama and congressional leaders over a deal to avert a potentially catastrophic situation. Traders welcomed news of Obama’s meeting, which was to take place after the president cut short his Christmas vacation in Hawaii. “They are trying to at least come up with something before the year comes to an end, so Obama shortening his holiday and coming back... I think that is a plus point,” IG trading group analyst Yang Weiming told. AGENCIES
Global stocks drop, dollar up as ‘cliff’ deadline looms World stocks declined, the dollar gained and US shares fell for a fifth day as the White House and US lawmakers closed in on the ‘fiscal cliff’ deadline with no deal in place NEW YORK AGENCIES
President Barack Obama and Democratic and Republican lawmakers met Friday as they faced just days to reach a budget deal to avert massive tax increases and spending cuts that could drag the U.S. economy, the world’s biggest, into recession. The two sides are attempting to smooth over sharp differences on raising taxes on the wealthiest Americans and cutting spending on politically sensitive social welfare programs such as Medicare and Medicaid. But investors were skeptical that a deal could be accomplished before the deadline. The MSCI all-world share index .MIWD00000PUS was down 0.5 percent, and the pan-european FTSeurofirst 300 .FTeU3 ended down 0.6 percent. In U.S. trading, the Standard & Poor’s 500 Index .SPX was down 15.67 points, or 1.11 percent, at 1,402.43, marking a fifth straight decline for the longest losing streak
in three months. The Dow Jones industrial average .DJI was down 158.20 points, or 1.21 percent, at 12,938.11, while the Nasdaq Composite Index .IXIC was down 25.59 points, or 0.86 percent, at 2,960.31. “There’s a pretty good chance that we won’t have something in hand by yearend,” said Jonathan Golub, chief U.S. equity strategist at UBS, in New York. “It should be pretty obvious that that is now the majority case.” Golub, however, said investors were still counting on a deal that would avoid most of the tax hikes and spending cuts next year even if it does come after the deadline. Allowing $600 billion of higher taxes and spending cuts to start in January would prevent U.S. debt spilling beyond a $16.4 trillion agreed limit. Analysts fear the measures could wipe as much as 4 percent off the country’s growth rate. energy companies were
among the biggest decliners on Wall Street, with shares of exxon Mobil (XOM.N) down 2 percent at $85.10 and the S&P energy index .GSPe leading sector losses. DOLLAR RISES: The U.S. dollar edged up to a two-week high against major currencies as investors waited to see if U.S. politicians can strike a last-minute budget deal. “Headline risk is likely to remain a driver of FX markets in the near term,” said eric Theoret, FX strategist at Scotia Capital in Toronto. An agreement on the U.S. budget would be viewed as positive for riskier currencies such as the euro and Australian dollar, while a deadlock is deemed positive for the safe-haven and highly liquid dollar. Against a basket of currencies at 79.930, the dollar was last up 0.1 percent at 79.665 .DXY. At the same time, expectations that Japan will inject new stimulus into its economy pushed the yen to yet another two-year low for a third straight day. The dollar was steady against the yen at 86.06 yen, having earlier risen to 86.63 yen, its strongest since August 2010. In the U.S. bond market, benchmark Treasury debt prices rose for a third consecutive session on safe-haven buying as the faded hopes for a deal on the fiscal cliff. Benchmark 10-year notes traded 12/32 higher in price, with yields falling to 1.69 percent, marking the lowest in two weeks and down from 1.73 percent late Thursday. Benchmark notes posted their biggest daily dip in yield in over
seven weeks and were down about 8 basis points on the week. OIL EASES: U.S. February crude slipped 7 cents, or 0.08 percent, to settle at $90.80. Trade was choppy, awaiting news on the U.S. budget talks, but the market was pressured by data showing that fuel stockpiles rose sharply and crude stocks fell less than expected last week. Brent February crude fell 18 cents, or 0.16 percent, to settle at $110.62. In other commodity markets,
U.S. gold futures for February delivery settled down $7.80, or 0.5 percent, at $1,655.90 an ounce in New York. Traditionally a safe haven and inflation hedge that investors rush to in times of trouble, gold has lately behaved like a risk asset often rising and falling with the stock market and sometimes following the dollar.
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Oil slips slightly amid 'fiscal cliff' uncertainty NEW YORK AGENCIES
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IL prices slipped slightly Friday as traders eyed an 11th-hour "fiscal cliff" meeting at the White House ahead of a New Year's eve deadline. New York's main contract, West Texas Intermediate light sweet crude for February delivery, edged seven cents lower to settle at $90.80 a barrel. Brent North Sea crude for February delivery dipped 18 cents a barrel in London trade down to $110.62. After opening in positive territory in New York trade, prices turned lower following a weekly US energy Department report that said the country's crude supplies fell by 600,000 barrels in the week ended December 21 -- less than analysts had expected. But markets seemed largely focused on a White House gathering between President Barack Obama and senior lawmakers aimed at preventing the United States from going over the so-called fiscal cliff, a mix of steep increases and budget cuts due to kick in Tuesday. experts warn that failure to reach a deal by the end of the year could take the US economy back into recession. And that could deal a blow to energy demands for the world's biggest consumer of crude. President Barack Obama wants taxes on American families earning more than $250,000 a year to go up but to spare the middle class. Republicans, however, want to extend George W. Bush-era tax cuts due to expire for everyone.
Business 02
Apple to drop patent claims against Samsung phone NEW YORK AGENCIES
Apple has agreed to drop its patent claims against Samsung's Galaxy S III Mini after the South Korean rival said it would not sell the gadget in the United States, a court filing showed Friday. The announcement is the latest twist in a patent battle between the two
tech titans. Last month, Apple asked that a series of Samsung products -- including the Galaxy S III -- be added to the patent infringement suit between the mobile giants. "Apple will agree to withdraw without prejudice its request to include the Galaxy S III Mini in this case given Samsung's representation that it is not making,
using, selling, offering to sell or importing that product into the United States," the company said in its latest federal court filing in San Jose, California. Samsung, the world's top mobile and smartphone maker, was ordered by a US jury in August to pay Apple $1.05 billion in damages for illegally copying iPhone and iPad features for its flagship Galaxy S smartphones.
Facebook stocks lower as Instagram loses users NEW YORK: Facebook shares fell Friday after a report said its photosharing app Instagram had lost millions of users following the release of planned policy changes since dropped on an outcry from users. According to audience tracker AppData.com, over the past week the number of daily Instagram users fell by 3.5 million to an average of 12.4 million users per day. Facebook shares sank about 2.5 percent lower in early trade, before rebounding to $25.71 in the early afternoon, off 1.2 percent. earlier this month, Instagram backed off planned policy changes that appeared to clear the way for the mobile photo sharing service to sell pictures without compensation, amid protests from users. Changes to the privacy policy and terms of service had included wording that appeared to allow people's pictures to be used by advertisers at Instagram or Facebook worldwide, royalty-free. Twitter and Instagram forums buzzed over the phrasing, as users debated whether to delete their accounts before the new rules kicked in. AGENCIES
KARACHI: Chairman Mehran group, Gul Mohammad Lot was honoured with a gold medal and Best Businessman of the Year by the president of Pakistan Asif Ali Zardari, at the 36th FPCCI Export Awards Ceremony at the Governor House.
Saudi Arabia passes record $221b budget for 2013: state TV RIYADH: Saudi Arabia's council of ministers on Saturday agreed a record budget for 2013 with revenues expected to hit $221 billion (167 billion euros), state television Al-ekhbariyah said. Revenues in the oil-rich Gulf state are projected to reach 829 billion riyals ($221.06 billion), while expenditure is planned at 820 billion riyals ($218.7 billion), the news channel reported. "The council of ministers has passed the largest budget in the history of the kingdom," it added. AGENCIES
KARACHI: The Consul General of the SriLanka W Jnadasa, hosted a dinner at Consulate premises. Picture shows PSBF President Tarek M Khan, Founder Chairman Majyd Aziz, Barrister Abdul R Sattar, and Tasneem Bandukwala, with others guests.
Wall Street ends sour week with fifth straight decline Stocks fell for a fifth straight day, dropping 1% and marking the S&P 500's longest losing streak in three months as the federal govt edged closer to the ‘fiscal cliff’ with no solution in sight NEW YORK AGENCIES
President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debtreduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans. The Dow closed below 13,000 for the first time since December 4. "I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington." In a sign of investor anxiety, the CBOe Volatility Index .VIX, known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time. The Dow Jones industrial average .DJI dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index .SPX lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index .IXIC fell 25.59 points, or 0.86 percent, to end at 2,960.31. For the week, the Dow fell 1.9 percent. The S&P 500 also lost 1.9 percent for the week, marking its worst weekly
performance since mid-November. The Nasdaq finished the week down 2 percent. In contrast, the VIX jumped 22 percent for the week. Pessimism continued after the market closed, with stock futures indicating even steeper losses. S&P 500 futures dropped 26.7 points, or 1.9 percent, eclipsing the decline seen in the regular session. All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth. An S&P energy sector index .GSPe slid 1.8 percent, with exxon Mobil (XOM.N) down 2 percent at $85.10, and Chevron Corp (CVX.N) off 1.9 percent at $106.45. The S&P material sector index
.GSPM fell 1.3 percent, with U.S. Steel Corp (X.N) down 2.6 percent at $23.03. Decliners outnumbered advancers by a ratio of slightly more than 2 to 1 on the New York Stock exchange, while on the Nasdaq, two stocks fell for every one that rose. "We've been whipsawing around on low volume and rumors that come out on the cliff," said eric Green, senior portfolio manager at Penn Capital Management in Philadelphia, who helps oversee $7 billion in assets. With time running short, lawmakers may opt to allow the higher taxes and across-the-board federal spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year. Standard & Poor's said an impasse on the cliff wouldn't affect the sovereign credit rating of the United States.
"We're not as concerned with January 1 as the market seems to be," said Richard Weiss, senior money manager at American Century Investments, in Mountain View, California. "Things will be resolved, just maybe not on a good timetable, and any deal can easily be retroactive." Trading volume was light throughout the holidayshortened week, with just 4.46 billion shares changing hands on the New York Stock exchange, the Nasdaq and NYSe MKT on Friday, below the daily average so far this year of about 6.48 billion shares. On Monday, the U.S. stock market closed early for Christmas eve, and the market was shut on Tuesday for Christmas. Many senior traders were absent this week for the holidays. Highlighting Wall Street's sensitivity to developments in Washington, stocks
tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution. The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December. "economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity." Barnes & Noble Inc (BKS.N) rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc (PSON.L)(PSO.N) had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013. Shares of magicJack VocalTec Ltd (CALL.O) jumped 10.3 percent to $17.95 after the company gave a strong fourthquarter outlook and named Gerald Vento president and chief executive, effective January 1. The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc (AeZ.TO)(AeZS.O) surged 13.8 percent to $2.47 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AeZS-108 treatment.
Sunday, 30 December, 2012