World Economies

[Neo]

May 28, 2007
World economies

According to the Asian Development Bank, the GDP growth in Central Asian economies was boosted by a favorable external environment as oil and non-oil commodity prices rose. GDP growth strengthened to 12.4 in 2006, up from 11.2 per cent in 2005, and from an average of 9.4 per cent over 2000–2005. The hydrocarbon exporters—Azerbaijan, Kazakhstan, Turkmenistan, and Uzbekistan— accounted for much of the growth. Most non-oil exporters also saw higher growth, benefiting from stronger non-oil commodity prices, and from workers’ remittances from, primarily, Kazakhstan and the Russian Federation. Only the Kyrgyz Republic’s growth was anemic.

Strong domestic demand, together with rising net foreign assets, put upward pressure on prices and the money supply. The region's average consumer price inflation rose slightly to eight per cent in 2006, with higher inflation reported in four countries (Tajikistan, Kyrgyz Republic, Kazakhstan, and Armenia) and a fall reported in two official estimates (Azerbaijan and Uzbekistan). For countries that experienced higher inflation, contributory factors include wage and pension increases, higher food and fuel prices, and credit expansion. Azerbaijan’s officially reported decline in inflation is at odds with alternative estimates that are more consistent with the last couple of years’ surge in spending.

Large current account surpluses were recorded in Azerbaijan, Turkmenistan, and Uzbekistan, as commodity price-driven surges in export revenues outpaced imports. There was a notable slowing of import growth in Azerbaijan as hydrocarbon-related imports of machinery and equipment tapered off with the completion of a number of large projects. Kazakhstan’s more modest current account surplus as a share of GDP was due to the sizable trade surplus being offset by hydrocarbon-related services and income payments. On the capital account, hydrocarbon-related net foreign direct investment (FDI) inflows fell in Azerbaijan but picked up in Uzbekistan.

Export growth recovered in the Kyrgyz Republic and accelerated in Tajikistan but slackened in Armenia. All three countries saw acceleration in import growth fueled by higher energy costs and strong remittance driven growth in demand for consumer imports. Trade deficits were partially offset by strong remittance inflows in other accounts of the balance of payments. On the financing side, net FDI covered around one third (Kyrgyz Republic) to one half (Armenia and Tajikistan) of the current account deficit.

During this year, the biggest deceleration in GDP growth is likely in Central Asia, as lower oil prices work their way through to demand. The slowdown there partly reflects the removal of the onetime impact of large investment projects. Now that they are on stream, their effects register in a higher level of income, but not in a fillip to growth. In 2007, the pace of expansion is expected to moderate in Armenia, Azerbaijan, and Kazakhstan.

A more stable political situation in the Kyrgyz Republic and new mining projects should help lift growth. There is also room for faster growth in Tajikistan. At the same time, fiscal risks were to the fore in some countries of Central Asia. Tajikistan’s external debt position leaves little room for maneuver and the Kyrgyz Republic’s debt indicators make it eligible for relief under the Heavily Indebted Poor Countries initiative.

Azerbaijan

Phenomenal economic growth at 32 per cent was recorded in 2006, powered by soaring production and exports of oil and gas. Very rapid expansion in government spending and the money supply are putting increasing pressures on prices and inflation in the last quarter of the year accelerated to 11 per cent. Oil and gas production from recent investments will continue to underpin remarkable growth projected at 25 in 2007 and 17 per cent in 2008.

Foreign investment, primarily for hydrocarbons, is beginning to taper off as large projects in the sector become operational. The Government is bullish that much higher domestic public investment, especially non oil, will partly offset this decline. Yet rapid and deep structural reform is imperative for such investment and—along with controlling inflation and preventing excessive exchange rate appreciation—is the key challenge.

The general budget deficit is planned to be 1.5 per cent of GDP in 2007. A major concern is whether the economy has the capacity to absorb this increase. However, due to the lagged impact of fiscal policy, the decision to reduce expenditure when inflation accelerates may be too late to combat the threat of a marked increase in inflation. The announcement of increases in the prices of utility services—such as electricity, gas, water, and public transport—by up to 50 per cent will add considerable pressure to inflation in 2007, expected to be 14 per cent.

With the substantial increase in oil and gas export revenues, and as import growth is expected to ease, the current account surplus is set to rise to 20.5 per cent of GDP in 2007 and 24.6 per cent in 2008. In addition, the authorities have said that there will be no imports of natural gas from a state-owned Russian gas company in 2007, having rejected an increase in the price of natural gas from that company. The income balance will likely deteriorate as rising oil and gas profits are repatriated. Moreover, the Russian Government issued a decree in November 2006, which restricts activities of migrant workers in its territory. With over two million Azerbaijani migrant workers there, this will likely stanch remittances from the Russian Federation.

Kazakhstan

The economy continued to expand at a high and steady rate in 2006. Inflation intensified in 2006, and the consumer price index was up by 8.6 per cent for the year. It is put at eight per cent 2007 and 2008, despite NBK’s efforts, and the inflationary pressures remain the same. Strong prices for oil and gas, rapid growth of domestic consumption, and a rebound in investment continued to propel the economy. Money supply grew by 80per cent over the year, fueled by a huge increase in credit to the private sector.

GDP growth in 2006 was 10.6per cent and is projected to stay high at nearly nine per cent in 2007 and 2008. But these very strengths carry within them the seeds of future challenges—immediately, keeping rising inflation in check, and improving banks’ risk management of their loan portfolios; further out, diversifying the economy, pushing through structural reforms, enhancing competitiveness, and ensuring more equitable development. These measures, plus fiscal and monetary policy coordination, are needed to ensure sustainable growth.

Soaring world commodity prices helped ramp up the value of exports by 35.2 per cent to $38.3 billion in 2006. Crude oil and oil-related products made up just over two thirds of total exports, and metals and metal-related products about one sixth. Exports are projected to rise by 15 and 9.3 per cent in 2007 and 2008, respectively, largely on higher production from existing oil fields and new production from the Kashagan oil field in 2008 as well as increased export transport capacity through the Baku-Tbilisi-Ceyhan oil pipeline. Non-oil exports are also expected to increase, mainly on metals and metal-related products, as well as grain.

Imports leaped by 31.7 per cent, largely driven by purchases of machinery and equipment, non precious metals, and petrochemical products in 2006. As a result, the trade surplus increased by 41 per cent. But the deficit on the services, income, and transfers account widened sharply. In 2007, rising incomes and excess domestic demand will spill over into imports, projected to rise by 20.4 and 13.3 per cent, largely due to purchases of machinery and equipment for ongoing oil investment projects. Strong exports will keep the trade account in surplus. With the deficit rising in services, income, and current transfers as payment outflows grow, the current account is expected to be in deficit, though it will be readily financed by foreign direct investment and external borrowings.

The liberalisation of capital account on January 1, 2007—full convertibility of the will likely take some of the upside pressure off the currency as domestic investors seek out overseas investments. In view of large oil-related cash inflows in the coming years, risks are associated mainly with an overheating economy. The focus of monetary policy should be to minimize inflationary pressures. Effective monetary and fiscal policy coordination is also needed to damp excess demand. While the rapid expansion of domestic credit demonstrates confidence in the domestic financial system, it also creates a potential risk in terms of the quality of the loan portfolio of local commercial banks. NBK and AFN recognize this risk, though, and are developing appropriate measures.

Tajikistan

The economy expanded at 7 per cent in 2006, despite higher costs of oil and gas. Burgeoning remittances spurred demand, as supply shocks from higheroil, utility, and food prices pushed inflation back into two-digit territory. Implementation of large infrastructure projects and a favorable outlook for aluminum production (the dominant industry) should propel growth to 7.5 per cent in 2007. Medium-term economic prospects are promising, if the expansion in externally financed infrastructure projects is supported by the broad development reforms.

http://www.dawn.com/2007/05/28/ebr8.htm

 

[Neo]

June 11, 2007

Balkan economies

The Balkan economies continue to grow despite political risks and external shocks. Consumption is the main source of growth, with investments also increasingly contributing. High exports are accompanied by high imports and external balances remain strongly negative. Price and exchange rate stability, however, remain manageable because of strong growth of productivity and downward pressure on wages from excess supply of labour. The expectation of sustained growth is supporting growth of foreign investments in privatized assets but also increasingly in green-field projects.

Fast rising prices of assets and declining interest rates due to strong credit expansion are proving worrisome for the central banks, which fear asset bubbles and weaknesses in the banking sector. These challenges are met with a tightening of monetary policy, which has led to some moderation of growth rates. Overall prospects are positive for growth and stability in the short and medium run. The main risks to positive expectations emanate from remaining political problems and from doubts about the process of EU integration and accession.

The major political risk is connected with the upcoming decision on the Kosovo status. If that risk is managed well and if other political problems are addressed that will make it possible for all the countries in the region to either sign association agreements with the EU or continue or start negotiations on membership in the EU, rather positive economic news should be coming out steadily from the Balkans. That would also help the region to address the serious social risks, especially those connected with high or very high unemployment.

Overall, prospects for growth are good in the short and medium run and prospects for stability are risky in the short run and good in the medium run. The region as a whole should be included in the EU by 2015, except perhaps for Kosovo and Turkey.

Growth in Bulgaria and Romania (which joined the EU on 1 January 2007) was also accelerating throughout 2006. Everywhere, except Hungary, GDP growth has been driven predominantly by domestic demand. External trade, which significantly boosted GDP growth in 2005, has been losing significance and continues to be a drag on growth in Bulgaria and Romania. Growth forecasts in 2007 and 2008 are looking very good. It is expected that household consumption will continue to rise strongly. Rising employment and wages will be supportive. Rising remittances of migrant workers would be adding to fast rising consumer spending. Gross fixed capital investment is expected to remain strong. With the exception of Hungary, fiscal policies will not interfere with real growth. The slight deceleration of growth in the EU-15 expected in 2007 is not likely to restrict the growth of both exports and overall GDP too much as further gains on industrial unit labour costs are expected. Given the ongoing structural changes and quality improvements in production and exports, the NMS should continue to gain market shares even despite further currency appreciation.

However, growth in imports responding to growing domestic demand will be reducing the contribution of trade to GDP growth. In Bulgaria and Romania, the contributions of external trade to growth will be negative and large. These two countries will be running very high current account deficits and rely on rising private foreign debt in order to finance consumption and investments. The rates of inflation are quite low and firmly under control. Interest rate differentials versus the major international currencies are also low, falling, or even negative.

Incentives for potentially destabilizing speculative capital inflows (and outflows) are therefore weak. Nominal currency appreciation is likely to continue, signifying the economic strength rather than potential weakness. The estimates of GDP growth rates for Bulgaria and Romania may be less certain. Both countries are growing turbulently. But, as in the Baltic countries, their growth is to a large extent induced by booming household consumption which is credit-driven and fed by excessive imports.

Slovakia

In 2007 Slovakia will face the perhaps enviable problem of managing success, with economic growth set to accelerate towards 8per cent just when the authorities are aiming to meet the tough Maastricht criteria so as to adopt the euro on schedule. The main challenge on this front will be preventing buoyant growth from generating inflationary pressures. Nevertheless, the impact of any such demand-pull inflationary effects should be strongly counterweighed by falling energy prices and currency strength.

More positively, rapid GDP expansion will assist the government in bringing the budget deficit in below 3per cent of GDP, leading us to attach an increasing probability to Slovakia entering the eurozone in 2009 within our core view of 2009-2010.

Although domestic demand will remain strong in 2007, the drivers of growth will shift firmly to the export sector, as output is launched at the new car plants owned by Peugeot-Citroen and Kia. As exports take off and imports of capital goods used in the construction of the plants fall back, the current account deficit is set to narrow substantially from as much as 8per cent of GDP in 2006. Combined with ongoing foreign direct investment inflows, these strong growth and export fundamentals will underpin a continuing appreciation of the Slovak currency – potentially igniting concerns of locking into the eurozone at an overvalued rate.

BMI expects the business environment to remain favourable in 2007, with robust growth, macroeconomic stability and the prospect of becoming the first central European country to join the eurozone all supporting investor confidence.

Meanwhile, the risk of a substantial reversal under the new government of the previous administration’s liberal market reforms is expected to be low with, crucially, the 19per cent flat tax system having been largely left unchanged. Nevertheless, as wages continue to converge with Western European levels, Slovakia will face increasing competition for foreign direct investment from lower-cost new EU entrants, Romania and Bulgaria.

As with many CEE states, there has been a rapid run-up in Slovakia’s external debt in recent years, and we expect this to continue, so that obligations to non-residents reach US$48bn by the end of the decade However, we do not think that this poses a significant risk to macroeconomic stability Real GDP and export growth have been strong and the koruna has been appreciating – which has kept debt ratios in check – while at the same time the banking sector is highly robust

Eurozone growth made headlines in 2006, with the regional economy set to have expanded at its fastest pace since the start of the decade. The positive impact of strong eurozone performance is expected on the Central European (CE4) states: the Czech Republic, Poland, Hungary and Slovakia, and assess the outlook for 2007

Growth on the Slovakian automotive market is being led by commercial vehicle sales encouraged by high levels of capital investment in the industrial and transportation sectors BMI is forecasting a slowdown in growth from 5per cent in 2007 to 2per cent by 2010. The commercial vehicle market is likely to sustain double digit growth, which is forecast at 202per cent in 2010, down from an expected 325per cent in 2006. Due its small size and modest growth projection, Slovakia’s pharmaceutical market is not the most attractive in Central and Eastern Europe but a 37per cent growth is expected through to 2010.

http://www.dawn.com/2007/06/11/ebr9.htm

 

[Neo]

Turkmenistan

The economy continued to grow rapidly in 2006, but the exact figure was likely lower than the official estimate. The country is heavily dependent on exports of gas and oil, a situation unlikely to change soon. Growth in 2007 is seen coming in at 8.5pc, little changed from a year earlier. The key development challenges are to effectively channel oil and gas revenues toward productive investment, implement market-oriented reforms, and rebuild human capital.

The economic situation stayed very healthy in 2006, with GDP growth of over 20pc (based on official data). However, official statistics tend to overestimate growth, and actual rate was likely around 9pc, according to ADB staff estimates. Either way, growth was sustained by increased gas prices and exports.

While the gas and oil industry grew rapidly in 2006, the cotton crop experienced shortfalls for the sixth consecutive year. According to the International Monetary Fund, inflation moderated somewhat from 10.7pc in 2005 to 9.0pc in 2006. This was achieved through wage freezes, cuts in pension payments, price controls, and restrictions on cash withdrawals from banks, resulting in a situation of repressed inflation.

The fiscal surplus edged up from 0.9pc of GDP in 2005 to 1.1pc reportedly due to improved revenue collections, but the non-oil fiscal deficit as a share of non-oil GDP was estimated at 9.5pc in 2005. Another large surplus of $1.5 billion on the trade balance account was estimated due to booming oil and gas export revenues. Although both exports and imports grew in 2006, exports grew much faster, propelled by surges in both volumes and prices of natural gas.

The current account surplus was estimated to have grown to 5.7pc of GDP, while gross official international reserves were estimated at $6 billion, equivalent to some 15 months of merchandise imports. Although there are no official labour statistics, unemployment is likely to be high because many school graduates are unable to find jobs, as opportunities are few and they lack the necessary skills.

While there is currently some uncertainty about the likely direction of the post-Niyazov economy, it will likely maintain its heavy reliance on exports of natural gas and cotton, according to the Asian Development Outlook 2007. With potential discovery of new gas fields (though not proven), Turkmenistan would both increase exports of natural gas to the Russian Federation and Ukraine, at the same time as attempting to diversify its gas export destinations, to include, most likely, the People’s Republic of China and, possibly, Afghanistan, India, and Pakistan.

According to the ADB staff assessment, three growth scenarios can be formulated for 2007–2008. With political turmoil, growth could decelerate to 3–4pc. Without it, two possibilities emerge. Under a “no reform” scenario, GDP could grow by 8–9pc a year on the back of higher exports of natural gas with continued stagnation in agriculture.

Under a “with reform” scenario, growth could increase to 10–11pc. Reforms in this context would include liberalizing prices, eliminating subsidies, improving the business environment, revamping the education and health sectors, upgrading delivery of other basic services, and developing rural areas.Unemployment is likely to be high because many school graduates are unable to find jobs, as opportunities are few and they lack the necessary skills. A central element of the social protection system remains the provision to the entire population of basic consumer goods and utilities free of charge or at subsidized rates. While this enables people to meet a minimum subsistence level and alleviates income poverty, non-income poverty indicators continue to worsen.

Social services, including education and health, have been hit by under-financing, a shortened compulsory education period, excessive state intervention in school curricula, a reduction in the number of university students, and deteriorating health services.

Uzbekistan

Continued strong—but narrowly based—growth was driven by increased net exports, a pickup in workers’ remittances, and productivity gains in agriculture. According to the Asian Development Outlook 2007, major challenges over the medium term are to continue managing monetary and fiscal policies to cope with inflationary pressures, integrate the economy with the rest of the sub-region, advance structural reforms in banking, restructure state enterprises, and remove state controls hindering private development. Economic growth in 2007 is projected at somewhat higher than 7pc, a rate maintained for the past three years. Further diversification from commodities and energy would also help sustain growth.

The Asian Development Bank's latest report reveals that the economy has shown robust performance over the past three years, and continued to do so in 2006, turning in GDP growth of 7.3pc. Exports showed real vibrancy, fuelled by favourable price movements in international commodity markets, and to a degree, heady growth of non commodity exports.

Productivity gains in the agriculture sector also contributed. The transformation of large, agricultural cooperatives into private farms nearly finished, with 666 of them becoming 74,000 small private farms during the year. This change has improved the incentive structure for production—and so productivity—especially in fruits and vegetables.

Official data indicate that consumer price inflation has declined since 2004, with the official inflation rate estimated to be at 6.8pc in 2006. The central bank intends to limit broad money supply growth to about 30pc through sterilization and use of other indirect monetary instruments. The authorities intend, too, to maintain a prudent fiscal policy to combat inflation.

Despite their cautious fiscal stance, the authorities have to tackle the risk of higher inflation due to the mounting foreign exchange inflows and rapid reserves accumulation. In 2005, partial sterilization led to a sharp increase in broad money supply of over 50pc.

Vigorous export performance coupled with surging remittances has led to a huge current account surplus of 19.5pc of GDP. Gross official reserves are reported to be equivalent to 12-month of imports. International prices of the country’s major exports look favourable for the next couple of years.

Buoyant exports are seen boosting the economy. Growth in the forecast period is pencilled in at over 7pc.

http://www.dawn.com/2007/06/25/ebr8.htm

 

[Bushroda]

Samba for growth
John Collett
June 27, 2007
SYDNEY MORNING HERALD

Party time ... Brazil has one of the world's fastest-growing economies.

Have you ever heard of BRICs? The abbreviation stands for "Brazil, Russia, India and China". The term was coined by Goldman Sachs in 2003.

A paper by Nick Ferres, an investment strategist at Goldman Sachs JBWere Asset Management, says the gross domestic product of BRICs will exceed that of the six biggest developed economies (US, Japan, Great Britain, France, Germany and Italy) by 2040.

The four BRIC countries have large populations and are growing their economies quickly but are taking different routes to industrialisation.

Brazil and Russia are rich in natural resources, while China is a manufacturer and India's growth is being led by the services sector.

Ferres says that India is the "sleeping giant" of the BRICs economies. It is fast catching up to China's rate of industrialisation and is on track to being one of the world's three largest economies (with China and the US) within 30 years.

India is home to some large and successful companies, including the global IT giant Infosys.

The growth of China is "unprecedented in world history", Ferres says. Annual growth has averaged more than 9.4 per cent over the past 27 years. China was an economic force 400 years ago and its resurgence is due to its transformation from a largely agrarian and centrally-planned economy to a dynamic market economy.

We are familiar with what is happening in India and China but Australian investors will not know much about Brazil. It is already the ninth-largest economy in the world and is growing at about 7.5 per cent a year.

Goldman Sachs expects Brazil's economy to be larger than Italy's by 2025 and and to overtake France's by 2031.

Russia is the largest energy exporter by volume (ahead even of Saudi Arabia) and supplies most of Europe's energy needs, particularly gas.

Of course, emerging markets are considered the riskiest places to invest in the world. The returns on the sharemarkets of the four countries can be stellar, only to turn dire soon afterwards.

They are really still the wild frontiers of investing but the rewards are there for patient investors with big appetites for risk. But are they the places to be investing right now?

There is little doubt that the Chinese stockmarket is in a bubble, as is India's. China's market had risen by 135 per cent in the year to the end of February, and then shed 9 per cent in a matter of days before recovering.

The Indian sharemarket fared even worse, dropping 16 per cent.

Shane Oliver, the chief economist of AMP Capital Investors, says the economic fundamentals of both countries remain sound but it expects continuing volatility and temporary pullbacks rather than grinding bear markets.

But a Standard & Poor's survey of fund managers that invest in emerging markets shows a growing wariness about the outlook for Asian emerging markets, particularly the Chinese and Indian financial markets.

Almost six out of 10 fund managers said that Latin American markets now offer the most attractive opportunities.

The fund managers have been rolling out funds that invest in China and, to a much lesser extent, India. But there are only a couple of BRICs funds that are available to small investors.

Goldman Sachs JBWere launched its Keystone funds in April. The funds invest in emerging Asia, emerging European and in the BRICs economies.

Last November, Macquarie launched its Globalis BRICs Advantage - one version is hedged for currency movements and the other is unhedged.

The Keystone funds are different from the usual managed funds in that there is a capital-raising period, after which they are closed off to new investors.

The funds provide capital protection for investors who stick to the course until maturity.

"Investors should really only consider investing directly in a specialist emerging markets fund, such as a BRICs fund, if they have a long investment time frame, patience, the ability to ride out short-term periods of pronounced market volatility and have a high tolerance for risk," says Phillip Gray, the editorial and communications manager at funds researcher Morningstar.

 

[genmirajborgza786]

UK interest rates raised to 5.75%
The Bank of England has raised UK interest rates from 5.5% to 5.75%, its fifth rate rise since last August.
Its Monetary Policy Committee (MPC) warned that inflation remains a danger, saying "most indicators of pricing pressure remain elevated".

Some analysts have taken that to mean there may be a further rise this year.

The higher rates will add between £15 and £20 a month to an average £100,000 repayment mortgage, but may be good for savers who should earn higher interest.

Charities have expressed concern that higher mortgage costs will leave many borrowers facing difficulties.


HAVE YOUR SAY
There are many of us who lived through much higher interest rate periods than this
Denis, Leeds


"We're seeing more and more people coming in for help with mortgage or secured loan arrears," said Sue Edwards from Citizens Advice.

"People are really stretching themselves to the limit to buy a house and take on a mortgage," she told the BBC.

"A small increase in interest rates could just tip them over the edge."

More to come

This rate rise may not be the last one, with Ross Walker at Royal Bank of Scotland warning that the statement from the MPC could herald more bad news for borrowers.

"The content of the statement is very similar to what was published in May when they last raised rates," he said.


"The markets will take this as a sign that there's probably more to come," he concluded.

But Trevor Williams from Lloyds TSB Corporate Markets said another rate rise would be too much.

"The effects of the earlier increases haven't yet come through," he said.

"We are at a very delicate stage and the danger now is that they overdo it," he added.

'Step too far'

The British Chambers of Commerce agreed that the Bank of England should take its time.

"It should allow more time for previous interest rate increases to have their effect before rushing to raise interest rates further, thus inflicting lasting damage on the economy," said the BCC's economic adviser David Kern.


Business groups say that the Consumer Prices Index (CPI) was likely to return to the 2% target by the end of the year even without this increase.

The CPI slowed to 2.5% in May from 2.8% in April.

Firms are worried that rising interest rates will continue to increase the strength of the pound against the US dollar, thus making life more difficult for exporters.

The pound is currently trading near a 26-year high against the dollar, and is unlikely to weaken significantly while rates are set to go higher, analysts said.

According to some observers, including the Royal Institution of Chartered Surveyors (RICS), the rate rise will depress the housing market.

"This latest increase in UK interest rates will further dampen housing demand going forward as first time buyers find their borrowing constrained," said RICS senior economist David Stubbs.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6272776.stm

Published: 2007/07/05 15:06:28 GMT

© BBC MMVII

 

[genmirajborgza786]

Russia's economic might: spooky or soothing?
By Jorn Madslien
Business reporter, BBC News




The Russians are displaying their wealth with pride, whether on the streets of Moscow or on the global geopolitical arena.

Retail sales in the country soared 13% last year, well ahead of the rest of Europe.

And almost half the Russian people believe it important to be fashionably dressed, according to a recent Wall Street Journal survey.

But unlike many fashion victims in the West, Russia's elite can really afford to strut.

Last year, the number of so-called "high net worth individuals" - people whose spending power exceeds $1bn (£500m) - in Russia rose 15.5% - compared with an 8% swelling in their number globally, according to the Merrill Lynch and CapGemini World Wealth Report.

Similarly, President Vladimir Putin's confident swagger on the international stage is that of a man who has delivered what his people want: stability, prosperity and national pride.

Regional growth

"There's been a fantastic transfer of wealth to Russia," observes Accenture energy analyst, Mark Spelman.

In just four years, Russia's GDP has almost trebled, from $345bn in 2002 to $984bn in 2006, and the economy is now growing at almost 7% per year - up from less than 5% four years ago.

Inflation, meanwhile, has slipped from almost 16% in 2002 to single-digit figures.

Exports have trebled - largely thanks to metals, oil and gas - to about $300bn, by far outpacing import growth. This has enabled Russia to pump up its foreign cash reserves.

In 2002, the reserves stood at $44bn. By 2006, they had ballooned to more than $295bn.

Hence, as far as the Russian people is concerned, it seems President Putin can do nothing wrong. "Putin has the highest [voter] approval rating of anyone in the world," says Mr Spelman.

"Everyone's focussing on the fact that there are more billionaires in Moscow than there are in London, but what we're actually also seeing is that the disposable income of skilled people in Russia is going up.

"You see a lot of infrastructure, a lot of housing, shopping malls. The commodity boom is now percolating beyond Moscow."

Agrees Global Insight Russia analyst Natalia Leshchenko: "Living standards are slowly beginning to improve, also for the poorest, and that's why Putin is popular."

International image problem

Internationally, though, the Russians' confident demeanour is often met with a mixture of suspicion and fear, as well as perhaps a dash of envy, and at times even a desire to join the party.


At the grassroots level, big-spending Russians are often scoffed at. One particularly stark example was seen in Austria last winter, when luxury hotels in the alpine resort Kitzbuhel agreed to limit the number of Russian visitors to one in ten.

On a loftier scale, Russia has come under fire for employing an aggressive energy policy as a lever to aid its political power beyond Russia's own borders.

"It's done some very clever things and some very clumsy things," observes Ms Leshchenko.

In particular, concerns remain in the West about Russia's apparent ruthlessness after it cut supplies to neighbouring countries that refused to switch from paying subsidised prices to paying international market prices for their gas.

This "backfired", according to Ms Leshchenko. "It's an image problem for Russia, which is partly unfair and partly well deserved."

Indeed, agrees Mr Spelman, "it is much more nuanced than it has been presented. Why should Russia subsidise gas deliveries to former Soviet nations?"

Strategic control

However, Mr Spelman acknowledges that Russia is quite prepared to use its energy reserves strategically.


There is no doubt about Russia becoming more powerful economically
Global Insight Russia analyst Natalia Leshchenko

Back in the 19th century, Russia used its army as a weapon of foreign policy. Then, during the Cold War in the 20th century, it applied its nuclear and rocket science to influence its friends and enemies.

These days, its main leaver is natural gas, observes Mr Spelman, adding that 56% of the world's proven gas reserves are in Russia.

"But whereas the West is concerned about the security of supply, Russia is genuinely concerned about security of demand," he says. In other words, Russia needs both the West's custom and foreign investment.

And as long as Western investors play along with the Kremlin's desire for control of national assets through majority ownership there is plenty of scope for profits to be made for foreign partners - despite the impressions created by, say, the ousting of Shell from the Sakhalin-II project.

Moreover, when Russia's state controlled gas monopoly goes on the acquisition trail abroad, it is not merely motivated by the Kremlin's desire for power. Commercial concerns also range high.

Ownership of downstream assets gives Gazprom better control of the demand for its gas, which is crucial to secure proper investment in exploration, extraction and transport - the upstream parts of the business.


Sensible approach

Gazprom's at times haphazard behaviour could be seen as symptomatic of the Russian government's own ability to manage the economy.


Indeed, though Russia's economy has grown at breakneck speed in recent years, much of this has been more on the back of luck than skill.

Strong global demand for commodities, with the subsequent boom in energy and metals markets, has accounted for much of Russia's wealth creation in recent years.

However, it is quite possible to be both lucky and smart, points out Ms Leshchenko.

"Russia remains very much a resource-based economy," she says, acknowledging that Russia has "undoubtedly benefited" a great deal from this.

"But at least they did not squander the money."

"There is no doubt about Russia becoming more powerful economically," she adds, while stressing that its policies have been "rather sound" and not nearly as aggressive as some of the Kremlin's pronouncements in other areas.


Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6265068.stm

Published: 2007/07/04 23:05:03 GMT

© BBC MMVII

 

[genmirajborgza786]

China's eco-city faces growth challenge
By Steve Schifferes
Globalisation reporter, BBC News, Chongming Island, China



China's plans to build an "eco-city" of 500,000 people on a huge island in the Yangtze Delta have been widely heralded. But local planners seem to have different priorities from the world leaders who have flocked to see the project.

The sleepy island of Chongming lies across the Yangtze Delta from the dynamic metropolis of Shanghai, the centre of China's global ambitions.

It takes an hour's ride on a slow ferry across the river - with inland cargo boats slipping by in the fog - to reach the island, which is criss-crossed with canals and fields where peasant agriculture still takes place.



Chongming is the size of Manhattan, and its wetlands form one of the most important migratory bird sanctuaries in China, known as Dongtan.

Currently this section of the island is deserted, except for a few visitors who make their way to the isolated nature reserve.

Demonstration city

It is here that Shanghai plans to build a demonstration eco-city which will ultimately house 500,000 people, designed by the UK engineering consultancy firm Arup.



Peter Head, Arup's project director, says that the project can be a model for the world.

"Significant global climate change, environmental issues, water shortages and the need for the use of cleaner and renewable energy demand the creation of a new approach to urban development," he explained in his office in Shanghai.

The eco-city, to be linked to the mainland by an 18-mile long bridge-tunnel which also spans two smaller islands, will initially house between 20,000 and 50,000 people.



Conventional cars will be banned in the city centre, while the plans include capturing and purifying water, waste management recycling, reducing landfills that damage the environment, and creating combined heat and power systems.

Mr Head says he has been impressed by the speed and determination of the Chinese authorities, who moved at "three times the speed" of Western planning departments.

China's centralised planning system has been behind the extraordinary transformation of Shanghai in the last decade into a Western-style metropolis.

Development boom

Dongtan is just one of nine new towns planned by the city of Shanghai to relieve overcrowding in a city of more than 20 million people.


Shanghai also plans to relocate much of its shipbuilding industry - the largest in China - on one of these islands, making space for the WorldExpo 2010 site, while providing employment for many of the island's residents.

And it plans to rehouse many of the 650,000 inhabitants of the island in modern housing, to make room for eco-tourism and eco-farming.

But some observers, such as Professor Chen of Tongji University, think that the local planners are more concerned with raising the income and standard of living of the region than ensuring ecological development.

They say that the new ecologically-sound housing developments may not be affordable by locals and could become suburban housing for the rich.



Already many have been purchased by overseas Chinese.

And they are concerned that the development of shipyards, power plants and bridge- tunnel systems may stimulate rather than retard the over-development of the region.

Certainly in a tour of the project run by Shanghai's planners, growth and expansion of this quiet backwater seemed to be the central theme.

Final obstacle

But ultimately, the development of Dongtan Eco-city is dependent not on ecology but politics.

After the rapid development of the master plan for the city, final authorisation of the funds for the project has stalled.

Arup's Peter Head says the problem is that all big projects are now awaiting approval from the new boss of Shanghai, who was only appointed in March, following the sacking of the former Shanghai Chinese communist party chief in October on corruption charges.

With China's high-profile commitment to showing it is serious about tackling environmental issues, it would be surprising if the project did not go through.

But its contribution to global warming is likely to remain controversial.





This is part of a series on how globalisation is changing China's largest city, Shanghai. Further articles will explore the issue of migrant labour and the future economic development of the region.


Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6756289.stm

Published: 2007/07/05 22:40:36 GMT

© BBC MMVII

 

[genmirajborgza786]

China's new economic frontier
By Nils Blythe
Business correspondent, BBC News, Chongqing, China



Drive from Chongqing airport towards the city centre and the first things you notice are the cranes.
A grim mixture of mist and man-made pollution usually makes it difficult to see very far in this sprawling metropolis on the banks of the Yangtse River.

But even in the gloom I count fifty huge construction sites before we are halfway to our hotel.

The population of the city is expected to grow by 40,000 people this month, and every month for years to come.

The municipality of Chongqing, which includes a chunk of surrounding countryside, already has a population of 31 million.

That is more than half the number of people who live in Britain.

And there seems almost no limit to Chongqing's ambition for future growth.

Good wages

This is China's new economic frontier.

The country's extraordinary development began in the coastal cities, powered by a seemingly limitless supply of cheap labour.

But as costs and wages have risen in those areas, businesses are looking west for new, cheaper places to operate.

Chongqing lies more than a thousand miles inland.

And the city authorities - ever eager to attract new investment - claim that wage rates for many jobs here are half of those in some of the coastal cities.

But Chongqing still has no difficulty in attracting new migrants from the vast rural hinterland of China's south west.

Many come hoping to get work in a factory.

I was introduced to a young assembly worker, newly arrived from a tiny village.

His pay is £80 a month.

And although he admitted that he had found the transition to city life quite difficult, the money was far more than he could hope to earn at home.

Beast of burden

Less well educated migrants - or less lucky ones - may end up working as "bang bang men".


You see them everywhere in Chongqing, carrying everything from building materials to shop supplies or tourists' suitcases.

The "bang bang" is a stout pole, which is placed across the shoulders.

A load is attached by rope and carried up the city's steep lanes and alleys by the human beast of burden.

I was taken to a tiny flat crammed with bunk beds, home to more than 20 "bang bang" men, to hear about their working lives.

For example, how heavy are the loads?

Often more than a hundred kilos, a young man told me.

And what do you weigh yourself, I asked - 58 kilos, he told me.

After much conferring, they reckoned that typical earnings for a "bang bang man" were about £40 a month.

Most of them said that they were able to send money home to their families in the countryside.

And they were looking forward to Chinese New Year, on 18 February.

It is the only time when most of China's 150 million migrant workers get a chance to go back to their families in the rural areas.

Mass migration

But although the work looked back-breaking to me, the "bang bang men" I met were a cheerful lot.

And, incidentally, quite knowledgeable about English Premiership football.

(One of them told me that Arsenal's young star Cesc Fabregas was his favourite player.)

Perhaps the optimistic spirit of Chongqing was best summed up for me by Yin Ming Shan, the founder of the Lifan motorcycle and car-making business in the city's suburbs.

He was jailed in the early 1960s for holding politically "incorrect" views.

Then he survived Chairman Mao's Cultural Revolution, when to be even a little richer than your neighbours would lead to forcible "re-education" in the impoverished Chinese countryside.

Now in his late 60s, Yin Ming Shan employs about 12,000 people in Chongqing, many of them migrant workers from the countryside.

I ask him if he is proud of what he has achieved.

Yes, he says. But one day soon he would like to be employing 50,000 people.

That's a lot of people.

But this is the city where almost that number of new migrant workers arrive every single month.

Nils Blythe and Hugh Sykes will be reporting daily from China for the PM programme on BBC Radio 4 for two weeks, starting on Monday 5 February.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6325223.stm

Published: 2007/02/05 06:47:42 GMT

© BBC MMVII

 

[genmirajborgza786]

Shanghai: Creating a global city
By Steve Schifferes
Globalisation reporter, BBC News, Shanghai, China



Shanghai is the ultimate poster-child for the effects of globalisation on cities and regions.

China's largest city languished for 30 years as the Chinese economy was closed to outside influence, and the country went through the political turmoil of the cultural revolution.

All this was dramatically changed when the country opened up its markets to the West in the 1980s, and Shanghai was given the green light to "get rich".

In the last 15 years, the city has been transformed into a glittering metropolis of 21 million people, with more skyscrapers than New York and a public transport system that will soon overtake London's in size.

The city has tripled in size and its influence now extends throughout the whole Yangtze Delta region, the richest area in China.

But it is not just the size and speed of its transformation, but also its glittering economic achievements, that have grabbed the attention of the world.

The Shanghai region, including the two adjoining provinces, accounts for 30% of China's foreign exports and attracts 25% of all foreign investment into the country, while 20% of its manufacturing output is produced here.

The GDP, or gross domestic product, of the Shanghai region alone is $450bn (£225bn), equivalent to half the size of the entire economy of India.

More than 500 multinational companies, ranging from General Motors to Volkswagen, have their regional corporate headquarters in Shanghai.


And it has become one of the leading financial sectors in East Asia, with major Western banks flocking to its new financial centre, built from scratch in the new district of Pudong.

Each year, more foreign investment flows into Shanghai alone than to any other developing country. Again, this is twice the amount invested in the whole of India.

And the rate of economic growth has been phenomenal, with Shanghai's economy growing at a rate of 12% per year, much faster than China as a whole.

By 2020, Shanghai's economy is expected to have expanded five-fold, making it bigger than New York in 1997, the richest economic region in the world.

Consumer and property boom

The rapid economic growth has also transformed the economic prospects of individuals.


Per capita income rose from $125 per year in the 1950s, and $1,000 per year in 1977, to $3,000 in 1997 and $6,000 in 2005.
The growing urban middle-class also fuelled a consumer boom and a property boom in the city.

Western shops dominate the pedestrianised shopping street of Nanjing Lu, while the more elegant shops of the former French concession include the world's busiest H&M women's clothing store.

And fancy restaurants by famous chefs now line the Bund, the curving waterfront that was the financial centre of Shanghai in the 1930s.

Dislocations

The growth of Shanghai has been accompanied by vast human dislocations.


More than one million households have been displaced to flats on the outskirts of the city in order to make way for the massive developments in the centre.
And almost four million migrant labourers have flooded into Shanghai from rural areas in the past 20 years to take advantage of the economic opportunities. They now make up one in four of the workforce.

These migrants have lacked any legal rights to health or education, and have suffered much poorer living conditions than native residents.

Even for local residents, the high property prices are forcing people out of the centre, making many postpone marriage and family life.

Ambitious Future

The city government of Shanghai is nothing if not ambitious.


To ensure Shanghai dominates foreign trade, it is building the world's largest container port on an island 30km offshore, linked by a six-lane bridge.

It also has bold plans to decentralise development by creating nine new towns around Shanghai, each with 500,000 residents.

And it plans to increase the use of public transport, raise education levels and encourage internet usage among its residents.

And just as Beijing used the 2008 Olympics to focus on its development, Shanghai plans to focus its World Expo 2010, which is expected to bring 70 million visitors to the city - on the redevelopment of the riverfront.

But the biggest obstacle to Shanghai's future development may be political.

Just as Shanghai's takeoff to growth was stimulated when Shanghai mayor Jiang Zemin took power in the 1990s, the new leadership of the Chinese Communist Party is attempting to curb its wings.

In October, the party secretary for Shanghai, Chen Liangyu, was arrested on corruption charges and was only replaced in March by an outsider, Xi Jinping.

Analysts believe that the move was intended to curb Shanghai's power, and was also related to the policy of the new party leadership to shift development from the rich coastal regions further inland, in order to narrow income disparities.

But Shanghai, with its entrepreneurial tradition and focus on getting rich, has always bounced back. This time, chances are it will more than just that.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6618163.stm

Published: 2007/05/07 23:30:39 GMT

© BBC MMVII

 

[genmirajborgza786]

Euro interest rates still at 4%
The European Central Bank (ECB) has kept eurozone interest rates on hold at 4% following its latest meeting.
Rates in the region have doubled in 18 months as the central bank has sought to keep inflation in check while economic growth picks up.

But the decision is expected to be only a temporary reprieve, with euro rates expected to rise later in the year.

The prospects of higher rates has pushed the euro to recent highs against the US dollar and Japanese yen.

More rises expected

At its news conference following the rates decision, the ECB said its governing council would "closely monitor" inflation - the same wording as used last month and indicating that rates may rise later in the year but not next month.

ECB president Jean-Claude Trichet did not use the term "strong vigilance", which usually indicates that rates will rise in the following month.

The central bank uses specific language to guide the market on the direction of interest rates, which are now at their highest level in the 13-member bloc for six years.

"Our monetary policy is still on the accommodative side, with overall financing conditions favourable, money and credit growth vigorous, and liquidity in the euro area ample," said Mr Trichet said.


ECB rate hike expectations should underpin the European currency
Carole Laulhere, Societe Generale

With the region enjoying a recovery in economic growth, observers say the ECB is likely to want to get interest rates back up to the level of other industrialised nations, such as the UK and the US, in order to curb excessive price rises and wage inflation.

Winners and losers

After the announcement, the euro reached historic highs against the yen at 167.3, while one euro bought $1.363, up from $1.361 on Wednesday and not far off the all-time high of $1.368, set on 27 April.

"ECB rate hike expectations should underpin the European currency," said Carole Laulhere at Societe Generale.

While this could benefit currency investors and savers looking for higher interest rates on bank deposit accounts, homeowners are likely to be hit by higher mortgage costs.

Manufacturers could also struggle as the stronger currency makes exports from the eurozone more expensive.

"That's one of the reason the ECB has staggered the interest rate increases, so as not to completely dampen consumer and business confidence in the economy, which is just starting to exit a long period in the doldrums," said Bob Munro, chief economist at foreign exchange consultancy HiFX.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/6272690.stm

Published: 2007/07/05 13:22:30 GMT

© BBC MMVII

 

[genmirajborgza786]

Market Data

Last Updated: Friday, 06 July, 2007, 00:00 GMT 01:00 UK

Search company or market:


FTSE 100 Index 15 min delay

*All Times GMT Select time span for charts: One month Three months Twelve months Intra-day
index value change % 52 wk-h 52 wk-l
6635.20 37.90 0.57 6732.40 5681.70
Click name to view detailed share information

Top 5 winners

value change %

Xstrata
3170.00 61.00 1.96

BHP Billiton
1462.00 25.00 1.74

Yell Group
474.25 8.00 1.72

Rio Tinto
4001.00 57.00 1.45

Capita Group
741.50 10.00 1.37


Top 5 losers

value change %

Wolseley
1183.00 32.00 2.63

MAN GROUP USD0.03
599.00 16.00 2.60

VODAFONE GRP. ORD USD0.11 3/7
162.10 4.00 2.41

BT Group
328.75 8.00 2.38

British Airways
431.00 9.50 2.16
More index pages
Click name to view detailed information and chart
Global
time index value change %
BBC Global 30 Fri 01:04 5988.19 1.98 0.03
Europe / Africa
time index value change %
London

FTSE 100 Thu 23:52 6635.20 37.90 0.57
FTSE 250 Thu 23:52 11802.80 31.40 0.27
FTSE 350 Thu 23:52 3485.70 18.30 0.52
FTSE All Share Thu 23:52 3428.06 17.27 0.50
FTSE Techmark Thu 23:52 1723.66 1.31 0.08
Pan European

FTSEurofirst 300 Thu 23:52 1609.67 10.51 0.65
DJ Eurostoxx 50 Thu 20:30 4491.87 32.37 0.72


Amsterdam AEX Thu 17:07 550.80 3.45 0.62


Frankfurt

Dax Thu 17:32 7987.13 88.13 1.09
MDax Thu 17:32 11211.24 36.45 0.32
SDax Thu 17:32 6617.98 7.85 0.12
TecDax Thu 17:32 963.38 7.42 0.76


Paris Cac 40 Thu 17:10 6059.53 38.55 0.63


Brussels Bel 20 Thu 17:07 4640.24 17.70 0.38


Madrid IBEX Thu 16:35 14907.40 82.30 0.55


Zurich

SMI Thu 16:31 9219.37 75.14 0.81
SPI Thu 16:41 7539.74 52.14 0.69


Moscow RTS Thu 17:07 1973.12 29.83 1.54


Johannesburg All Share Thu 16:01 28896.36 52.05 0.18

South Asia
time index value change %
Bombay BSE Sensex Thu 20:14 14861.89 18.35 0.12


Karachi KSE-100 Thu 23:08 13976.60 550.10 4.10


Colombo CSE All Share Thu 15:07 2539.20 20.00 0.78
Asia Pacific
time index value change %
Sydney All Ordinaries Thu 23:07 6392.20 59.60 0.94
Hong Kong Hang Seng Thu 23:07 22252.99 34.44 0.16
Tokyo Nikkei Thu 23:07 18221.48 52.76 0.29
Singapore STI Thu 23:07 3551.68 6.73 0.19
Americas
time index value change %
New York

Dow Jones Thu 22:28 13565.84 11.46 0.08
Nasdaq Thu 22:17 2656.65 11.70 0.44


Chicago Mercantile Ex.

S&P 500 Thu 22:38 1525.40 0.53 0.03
Russell 2000 Thu 22:38 850.13 1.93 0.23


Buenos Aires General Thu 23:44 2247.15 16.54 0.74


Sao Paulo Bovespa Thu 23:44 55932.34 232.65 0.42


Mexico IPC Thu 23:44 31519.90 n/a n/a
All prices carried by BBC News Online enjoy indicative status only. The BBC accepts no responsibility for their accuracy or for any use to which they may be put. All share prices and market indexes delayed at least 15 minutes, NYSE 20 minutes. 52 week high and low values are calculated from close price data. Click here for terms and conditions

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[genmirajborgza786]

Market Data

Last Updated: Friday, 06 July, 2007, 00:01 GMT 01:01 UK

Search company or market:
Dow Jones Industrial Average 15 min delay
*All Times GMT Select time span for charts: One month Three months Twelve months Intra-day
index value change % 52 wk-h 52 wk-l
13565.84 11.46 0.08 13676.32 10739.35

Click name to view detailed share information
Top 5 winners
value change %
HONEYWELL INTERNATIONAL INC
58.36 1.16 2.03
HOME DEPOT
39.83 0.63 1.61
INTL BUSINESS MACHINES
108.05 1.47 1.38
BOEING CO
98.36 0.71 0.73
HEWLETT-PACKARD
45.90 0.32 0.70
Top 5 losers
value change %
GEN MOTORS
36.76 1.22 3.21
AMER EXPRESS
61.38 1.04 1.67
AT&T CP NEW
40.96 0.54 1.30
J.P. MORGAN CHASE & CO
48.79 0.55 1.11
WAL-MART STORES
48.09 0.38 0.78
More index pages
Click name to view detailed information and chart
Global
time index value change %
BBC Global 30 Fri 01:05 5988.23 1.94 0.03
Europe / Africa
time index value change %
London

FTSE 100 Thu 23:52 6635.20 37.90 0.57
FTSE 250 Thu 23:52 11802.80 31.40 0.27
FTSE 350 Thu 23:52 3485.70 18.30 0.52
FTSE All Share Thu 23:52 3428.06 17.27 0.50
FTSE Techmark Thu 23:52 1723.66 1.31 0.08
Pan European

FTSEurofirst 300 Thu 23:52 1609.67 10.51 0.65
DJ Eurostoxx 50 Thu 20:30 4491.87 32.37 0.72
Amsterdam AEX Thu 17:07 550.80 3.45 0.62
Frankfurt
Dax Thu 17:32 7987.13 88.13 1.09
MDax Thu 17:32 11211.24 36.45 0.32
SDax Thu 17:32 6617.98 7.85 0.12
TecDax Thu 17:32 963.38 7.42 0.76
Paris Cac 40 Thu 17:10 6059.53 38.55 0.63
Brussels Bel 20 Thu 17:07 4640.24 17.70 0.38
Madrid IBEX Thu 16:35 14907.40 82.30 0.55
Zurich
SMI Thu 16:31 9219.37 75.14 0.81
SPI Thu 16:41 7539.74 52.14 0.69
Moscow RTS Thu 17:07 1973.12 29.83 1.54
Johannesburg All Share Thu 16:01 28896.36 52.05 0.18

South Asia
time index value change %
Bombay BSE Sensex Thu 20:14 14861.89 18.35 0.12


Karachi KSE-100 Thu 23:08 13976.60 550.10 4.10


Colombo CSE All Share Thu 15:07 2539.20 20.00 0.78

Asia Pacific
time index value change %
Sydney All Ordinaries Thu 23:07 6392.20 59.60 0.94

Hong Kong Hang Seng Thu 23:07 22252.99 34.44 0.16


Tokyo Nikkei Thu 23:07 18221.48 52.76 0.29

Singapore STI Thu 23:07 3551.68 6.73 0.19
Americas
time index value change %
New York

Dow Jones Thu 22:28 13565.84 11.46 0.08
Nasdaq Thu 22:17 2656.65 11.70 0.44
Chicago Mercantile Ex.

S&P 500 Thu 22:38 1525.40 0.53 0.03
Russell 2000 Thu 22:38 850.13 1.93 0.23

Buenos Aires General Thu 23:44 2247.15 16.54 0.74
Sao Paulo Bovespa Thu 23:44 55932.34 232.65 0.42
Mexico IPC Thu 23:44 31519.90 n/a n/a
All prices carried by BBC News Online enjoy indicative status only. The BBC accepts no responsibility for their accuracy or for any use to which they may be put. All share prices and market indexes delayed at least 15 minutes, NYSE 20 minutes. 52 week high and low values are calculated from close price data. Click here for terms and conditions

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Market Data

Last Updated: Friday, 06 July, 2007, 00:01 GMT 01:01 UK

Search company or market:


Nasdaq Index 15 min delay

*All Times GMT Select time span for charts: One month Three months Twelve months Intra-day
index value change % 52 wk-h 52 wk-l
2656.65 11.70 0.44 2644.95 2020.39
Click name to view detailed share information
Top 5 winners
value change %
LOCAL.COM CORP
12.17 4.06 45.77
BEACON POWER
1.67 0.17 11.64
NEUROCHEM INC
7.11 0.61 9.00
CHARTER COMMUNIC'A'
4.52 0.28 6.65
XM SATELLITE RADIO'A'
12.33 0.67 5.72
Top 5 losers
value change %

AVANIR PHARMACEUTICL
2.57 0.15 5.56
FIRST SOLAR INC
94.03 2.95 3.03
SANMINA CORP
3.22 0.08 2.44
AVANEX CORP
1.83 0.04 2.15
SEPRACOR INC
42.00 0.66 1.54
More index pages
Click name to view detailed information and chart
Global
time index value change %
BBC Global 30 Fri 01:07 5986.18 3.99 0.07
Europe / Africa
time index value change %
London
FTSE 100 Thu 23:52 6635.20 37.90 0.57
FTSE 250 Thu 23:52 11802.80 31.40 0.27
FTSE 350 Thu 23:52 3485.70 18.30 0.52
FTSE All Share Thu 23:52 3428.06 17.27 0.50
FTSE Techmark Thu 23:52 1723.66 1.31 0.08
Pan European

FTSEurofirst 300 Thu 23:52 1609.67 10.51 0.65
DJ Eurostoxx 50 Thu 20:30 4491.87 32.37 0.72
Amsterdam AEX Thu 17:07 550.80 3.45 0.62
Frankfurt
Dax Thu 17:32 7987.13 88.13 1.09
MDax Thu 17:32 11211.24 36.45 0.32
SDax Thu 17:32 6617.98 7.85 0.12
TecDax Thu 17:32 963.38 7.42 0.76
Paris Cac 40 Thu 17:10 6059.53 38.55 0.63
Brussels Bel 20 Thu 17:07 4640.24 17.70 0.38
Madrid IBEX Thu 16:35 14907.40 82.30 0.55
Zurich
SMI Thu 16:31 9219.37 75.14 0.81
SPI Thu 16:41 7539.74 52.14 0.69
Moscow RTS Thu 17:07 1973.12 29.83 1.54
Johannesburg All Share Thu 16:01 28896.36 52.05 0.18
South Asia
time index value change %
Bombay BSE Sensex Thu 20:14 14861.89 18.35 0.12


Karachi KSE-100 Thu 23:08 13976.60 550.10 4.10


Colombo CSE All Share Thu 15:07 2539.20 20.00 0.78
Asia Pacific
time index value change %
Sydney All Ordinaries Thu 23:07 6392.20 59.60 0.94
Hong Kong Hang Seng Thu 23:07 22252.99 34.44 0.16
Tokyo Nikkei Thu 23:07 18221.48 52.76 0.29
Singapore STI Thu 23:07 3551.68 6.73 0.19
Americas
time index value change %
New York

Dow Jones Thu 22:28 13565.84 11.46 0.08
Nasdaq Thu 22:17 2656.65 11.70 0.44
Chicago Mercantile Ex.

S&P 500 Thu 22:38 1525.40 0.53 0.03
Russell 2000 Thu 22:38 850.13 1.93 0.23
Buenos Aires General Thu 23:44 2247.15 16.54 0.74
Sao Paulo Bovespa Thu 23:44 55932.34 232.65 0.42
Mexico IPC Thu 23:44 31519.90 n/a n/a
All prices carried by BBC News Online enjoy indicative status only. The BBC accepts no responsibility for their accuracy or for any use to which they may be put. All share prices and market indexes delayed at least 15 minutes, NYSE 20 minutes. 52 week high and low values are calculated from close price data. Click here for terms and conditions

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[genmirajborgza786]

Gilts/bonds


Market Data

Last Updated: Friday, 06 July, 2007, 00:18 GMT 01:18 UK

Search company or market:

UK Gilts

Paper rate maturity yield price change
Treas 8½% 16-Jul-2007 5.53% 100.08 0.03

Treas 7¼% 07-Dec-2007 5.91% 100.54 0.01

Treas 5% 07-Mar-2008 5.64% 99.57 0.01

Treas 4% 07-Mar-2009 5.77% 97.22 0.01

Treas 5¾% 07-Dec-2009 5.81% 99.85 0.04

Treas 4¾% 07-Jun-2010 5.81% 97.16 0.03

Treas 6¼% 25-Nov-2010 5.79% 101.35 0.07

Treas 4¼% 07-Mar-2011 5.83% 94.85 0.05

Conv 9% 12-Jul-2011 5.81% 111.26 0.09

Treas 5% 07-Mar-2012 5.72% 97.06 0.07

Treas 5¼% 07-Jun-2012 5.75% 97.83 0.13

Treas 8% 27-Sep-2013 5.71% 111.78 0.14

Treas 5% 07-Sep-2014 5.66% 96.12 0.16

Treas 4¾% 07-Sep-2015 5.59% 94.52 0.20

Treas 8% 07-Dec-2015 5.62% 115.76 0.23

Treas 4% 07-Sep-2016 5.52% 89.17 0.18

Treas 8¾% 25-Aug-2017 5.52% 124.72 0.28

Treas 5% 07-Mar-2018 5.45% 96.21 0.23

Treas 4¾% 07-Mar-2020 5.39% 94.13 0.24

Treas 8% 07-Jun-2021 5.41% 125.10 0.28

Treas 5% 07-Mar-2025 5.21% 97.55 0.27

Treas 4¼% 07-Dec-2027 5.11% 89.13 0.28

Treas 6% 07-Dec-2028 5.11% 111.45 0.31

Treas 4¼% 07-Jun-2032 4.96% 89.79 0.29

Treas 4¼% 07-Mar-2036 4.87% 90.42 0.27

Treas 4¾% 07-Dec-2038 4.83% 98.72 0.32

Treas 4½% 07-Dec-2042 4.76% 95.45 0.32

Treas 4¼% 07-Dec-2046 4.69% 92.11 0.30

Treas 4¼% 07-Dec-2055 4.57% 93.80 0.33

UK interest rates

LIFFE Long Gilt
ThuCls FriHi FriLo FriLst
Sep 103.34




LIFFE 3 Month Sterling Gilt
ThuCls FriHi FriLo FriLst
Sep 93.81




UK Base Rate
Jul Jun

5.50 (5.50)



UK CPI Inflation Rate (1 month)
Jul Jun

0.30 (0.30)



US bonds

Eurodollar Deposits
ThuCls FriLst

5.33 5.33



US Long Bond
ThuCls

92.24



US Federal Funds
ThuCls

5.31



US Prime Rate
Jul Jun

8.25 (8.25)


US Inflation Rate
Jul Jun

2.69 (2.69)


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Currencies



(USA$)


Market Data

Last Updated: Friday, 06 July, 2007, 00:24 GMT 01:24 UK

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UK £ | USA $ | Eurozone € | Travel money
United States Dollar - Euro
Select time span for charts: One month Three months Twelve months Intra-day
$1 buys change % 52 wk-h 52 wk-l
Euro 0.73545 0.00020 0.03 0.80180 0.73100
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Asia Pacific
$1 buys change % 52 wk-h 52 wk-l
Japanese Yen 122.94000 0.01000 0.01 124.15000 113.41000

Australian Dollar 1.16780 0.00060 0.05 1.34970 1.16150

New Zealand Dollar 1.27840 0.00010 0.01 1.65610 1.26870

Hong Kong Dollar 7.81620 0.00130 0.02 7.82740 7.76390

Singapore Dollar 1.51980 0.00220 0.14 1.59720 1.50870

Taiwanese Dollar 32.77500 0.00000 0.00 33.52100 32.01000

Thai Baht 34.02500 0.00000 0.00 38.40000 31.38000

Malaysian Ringgit 3.45450 0.00650 0.19 3.75250 3.36500

Indonesian Rupiah 9010.50000 0.00000 0.00 9379.00000 8640.00000

South Korean Won 921.60000 0.60000 0.07 966.30000 912.90000

South Asia
$1 buys change % 52 wk-h 52 wk-l
Indian Rupee 40.34500 0.00000 0.00 47.01500 40.00000

Pakistani Rupee 60.39000 0.00000 0.00 61.14000 59.86500

Sri Lankan Rupee 111.44000 0.00000 0.00 111.57000 102.00000

Europe / Africa / Middle East
$1 buys change % 52 wk-h 52 wk-l
Pound Sterling 0.49745 0.00020 0.04 0.54990 0.49470

Euro 0.73545 0.00020 0.03 0.80180 0.73100

Danish Kroner 5.47440 0.00030 0.01 5.98850 5.44280

Israeli Shekel 4.23250 0.01750 0.42 4.55650 3.90210

Norwegian Kroner 5.82545 0.00030 0.01 6.78630 5.79580

Saudi Arabian Riyal 3.75070 0.00010 0.00 3.79000 3.63980

South African Rand 7.01760 0.00110 0.02 7.97230 6.69000

Swedish Kronor 6.73640 0.00180 0.03 7.43300 6.66890

Swiss Franc 1.21785 0.00030 0.02 1.27700 1.18770

Turkish Lira 1.29800 0.00000 0.00 1.60630 1.28600



Americas
$1 buys change % 52 wk-h 52 wk-l
Canadian Dollar 1.05645 0.00010 0.01 1.18770 1.04660

Mexican Peso 10.80000 0.00580 0.05 11.25370 10.67900

Brazilian Real 1.91400 0.00000 0.00 2.23400 1.89300


* chart not available


All prices carried by BBC News Online enjoy indicative status only. The BBC accepts no responsibility for their accuracy or for any use to which they may be put. All share prices and market indexes delayed at least 15 minutes, NYSE 20 minutes. 52 week high and low values are calculated from close price data. Click here for terms and conditions

PRODUCTS AND SERVICES
E-mail news Mobiles Alerts News feeds Podcasts BBC Copyright Notice Find out what's most popular now Back to top ^^ Help Privacy and Cookies Policy News sources About the BBC Contact us