Asia cbanks ready to boost coactions

HANOI: Southeast Asian leaders, faced with rocketing exchange rates that risk destabilising their economies, called Thursday for more cooperation between regional central banks to calm the currency tensions. While China has kept a tight grip on the yuan, many emerging Asian economies have seen their currencies soar against the US dollar, making their exports less competitive and inviting a massive inflow of foreign capital.The leaders of Thailand and the Philippines believe stronger coordination would give Association of Southeast Asian Nations (Asean) countries more clout as China and the United States trade blows over currency. “It’s important for us to be more coordinated and speak with one voice, particularly with regard to things like...

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First Gulf Bank Q3 profit down

DUBAI: Abu Dhabi-based First Gulf Bank posted a 9.0 per cent drop in net profits for the third quarter on Thursday as it announced allocating new provisions for bad debts. The bank said its net earnings fell to 849 million dirhams (231.3 million dollars) for the quarter ending September 30, compared to 930 million dirhams in the corresponding period last year.Revenues for the core banking operation were up 3.0 per cent in the third quarter to 1.52 billion dirhams, but total revenues for the group as a whole, including its property arm and overseas operation, dropped 8.0 per cent to 1.55 billion dirhams. Revenues from subsidiaries and associates fell 86 per cent to 31 million dirhams in the third quarter, putting pressure on the bank’s overall...

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FWBL promised full govt backing

ISLAMABAD: The National Assembly’s Standing Committee on Finance, Revenue, Planning, and Development met here under the chair of Fauzia Wahab and discussed the performance of the First Women Bank Limited (FWBL).  The Standing Committee took serious note of the problems and the challenges faced and assured its management of solving them at priority basis so that this special purpose public entity could successfully be run and made an asset for Pakistan financial sector and provide fair opportunities to the women of Pakistan.According to National Assembly Spokesman, President, First Women Bank Limited, told the committee that FWBL’s paid up capital stands at Rs284 million and the shareholders equity at Rs1093 million. The bank president further stated that FWBL has Rs11,566 million deposits...

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UBL posts record net

KARACHI: United Bank Limited (UBL) has posted a record consolidated profit before tax of Rs7.907 billion for nine months ending September 30, 2010.According to financial results sent to Karachi Stock Exchange (KSE), the pre-tax profit of the bank also surged to Rs12.804 billion as earning per share also improved to Rs6.50 during the period under review compared to Rs5.66 in 20...

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Silkbanks loss down

KARACHI: Silkbank Ltd has reported a lower loss after tax of Rs700.335 million for the third quarter ending September 30, 2010 compared to Rs1.33 billion in the corresponding period last year. According to financial results of the company dispatched to Karachi Stock Exchange (KSE) here Thursday, the pre-tax loss also declined to Rs0.83 billion as loss per share dropped to Rs0.32 compared to Rs0.99 billion in the same period last ye...

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Swiss franc gains vs dollar

ZURICH: The Swiss franc rose against the dollar on Thursday as the greenback paused for breath after its recent rally on doubts about the size of an expected asset purchase programme by the US Federal Reserve.The franc was up 0.3 per cent against the dollar at 0.9875 per dollar. Commerzbank technical analysts said they expected the dollar to continue to recover from the all-time low of 0.9461 set earlier this month with interim support at 0.9683 and resistance at 0.9932, with a medium-term target of parity. The franc was 0.14 per cent weaker against the euro compared to the New York close, trading at 1.3652 per euro at 0634 GMT. UBS economist Reto Huenerwadel noted that volumes in euro/franc trades were off the highs prompted by the Swiss National Bank’s (SNB) intervention earlier in the year...

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NEW YORK: The dollar fell on Thursday in tandem with Treasury yields, driving back to the weaker end of a well-worn range below $1.40 per euro, on talk Federal Reserve quantitative easing could be larger than expected. A New York Federal Reserve survey of dealers and investors on the size of the stimulus program included scenarios of up to $1 trillion, a figure larger than recent estimates The bigger the move by the US central Bank to effectively print money, the more it will push down US Treasury yields and reduce the attractiveness of dollar-based assets. Dollar selling against the euro and other currencies by reserve managers also sent the US currency lower. “The issue is whether the market believes the Fed will deliver significant quantitative...

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LONDON: Sterling rose one per cent against a broadly weaker dollar and outperformed the euro on Thursday as investors looked to push the currency higher in a choppy market, offsetting disappointing UK housing data. Nationwide data showing UK house prices in October fell for the third month in four earlier knocked the pound to session lows, but traders said persistent buying from Middle East accounts helped it rebound higher.The pound climbed to a 10-day high of $1.5954, with gains accelerating after stop loss orders were triggered through $1.5900 and $1.5910 as the dollar weakened versus a basket of currencies. By 1504 GMT, it was up 1 per cent at $1.5935. “These are intra-day fast money flows. There’s a lot of stop hunting going on, people...

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Forex reserves down at $16.88bn

KARACHI: Pakistan’s foreign exchange reserves fell to $16.88 billion in the week ending Oct 22, down from a record $17.10 billion the previous week, the central bank said Thursday. Reserves held by the State Bank of Pakistan (SBP) fell to $13.09 billion from $13.26 billion, while those held by commercial banks also fell to $3.79 billion from $3.84 billion, said Syed Wasimuddin, chief spokesman of the SBP. “These were regular debt payments,” said Wasimuddin. Pakistan’s reserves hit a record high in the week ending Oct 15 because of an increase in remittances from overseas Pakistanis and a narrowing trade deficit. They were further boosted last month after the IMF sent Pakistan $450 million and said that the money would go toward the budget...

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Germany Feels First Chinese Rare Earths Squeeze

German high-tech companies have reported their first supply shortages of rare earths following a rapid diminution of Chinese export quotas on the precious metals, which are used in everything from wind turbines to mobile phones and hybrid cars. According toSpiegel Online, China 's blockade of shipments of rare earth metals is already causing some German companies to suffer shortages. German companies say they are being pressured by Chinese officials to increase their investment in China if they want to be assured of access to rare earth minerals. Since 2005, China has imposed a "rapid diminution of export quotas" on a number of rare metals and is planning afull export ban as of 2015. Although reserves are sufficient, over 95% of production...

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Japan's Igarashi Says Yen Sales Most Effective When 'Surprise'

Currency-market intervention is most effective when it’s a “surprise,” a senior Japanese Finance Ministry official said, sending a warning to traders that Japan is prepared to act again to stem the yen’s advance. “A surprise move would probably be effective to some extent,” Japanese Vice Finance Minister Fumihiko Igarashi said in an interview in Tokyo yesterday. “We can’t make an announcement in advance that we will act, but, on the other hand, we can’t say that we won’t act either.” Group of 20 finance authorities said last weekend that while countries should refrain from “competitive devaluations” of exchange rates, advanced economies should also be vigilant about excessive currency moves. Taking that as a cue, Finance Minister Yoshihiko...

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China's energy demand growth to ease in Q4

BEIJING - Energy demand growth in China in the fourth quarter is expected to slow as governments step up efforts to save energy and cut emissions, National Energy Administration official Wang Siqiang said Monday. Growth in energy demand eased in the third quarter on government curbs, Wang noted.Growth in coal imports will slow in the fourth quarter as China's appetite for coal has shrank and supply will be plentiful during the period, he said. China will import 120 million tons of coal this year, up 16 percent year on year, he estimated. He also forecast China to produce 200 million tons of crude oil and 95 billion cubic meters of natural gas this year. Total power generating capacity will be 950 million kilowatts by the end of the year,...

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Pound Falls as UK Mortgage Approvals Declined in September

The Great Britain pound fell today against the Japanese yen after report showed the number of the mortgage approval decreased more than expected. The pound gained against the US dollar, which fell against all other currencies. The number of new mortgages approved for home purchase during the September was 31,104, compared to the August value of 31,781. The analysts expected the value near 31,600. The analysts also expect the house prices to continue their decline. The bad economic reports may spur the Bank of England to perform the quantitative easing sooner than anticipated. The preliminary GDP report tomorrow should...

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SBP lowers fiscal year 2011 growth

KARACHI   : Forecasting a 2 to 3 percent real GDP growth against the target of 4.  5 percent for FY11, State Bank of Pakistan on Monday said the negative shocks stemming from floods have further exposed the existing structural weaknesses in the economy and to address these will require improvement in macroeconomic discipline as well as continued reforms to improve the resilience of the economy. The State Bank in its Annual Report on the State of the Economy for the year 2009-10, said that the required reforms include: improve productivity, strengthen public institutions, improve economic governance and build social safety nets to protect vulnerable segments of the population.  Referring to recent devastating floods in the country, the report pointed out that various FY11...

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Budget deficit rises to Rs 929. 1 billion, against targeted Rs 722. 1 billion in fiscal year 2010

KARACHI   : The overall budget deficit rose to 6.  3 percent of the GDP at Rs 929.  1 billion against the target of Rs 722.  1 billion.   According to State Bank of Pakistan report on economy the government envisaged a narrowing of budget deficit from 5.  3 percent of GDP to 4.  9 percent with a sharp increase in revenues (particularly tax revenues) and containment of current expenditures in the budget estimates for FY10. However, in terms of actual performance, all fiscal targets of the government were missed during the year.   The report said that the worsening of the fiscal outlook was broadly a result of greater than budgeted disbursement of subsidies, increased security outlays on war on terror and below target tax revenue generation,...

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Oil prices may be increased

ISLAMABAD : The government is expected to increase oil prices by nearly Rs 5 per litre from November 1, 2010, in line with the hike in global oil prices, Business Recorder has learnt. Global oil prices are posing rising impact in domestic oil prices by Rs 4-5 per litre which will be passed on to the consumers from November 1, 2010, sources said. The international oil prices are showing rising trends as Brent (London) was traded at $82. 25 a barrel and the basket of Opec (Organisation of Petroleum Exporting Countries) rose from $78. 71 to $79. 26 per barrel of oil on Monday. Average Arab light crude oil price stood at $74. 39 per barrel during September, which forced the government to announce nominal cut in prices of petroleum products in...

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Lenders’ deposits vault to Rs4.71tn

KARACHI: State Bank of Pakistan has released the combined balance sheet of all scheduled banks in the country as of October 1, 2010 which was the first weekend of the current month. According to the data, total deposits in the first nine months of CY10 (January to September), increased by 6.8 per cent to Rs4.71 trillion as compared to Rs4.42 trillion at the beginning of current year. However, in the third quarter of the calendar year (3QCY10) the deposits decreased by 1.2 per cent QoQ against a growth of 5.4 per cent in the previous quarter (April-June-10). In sharp contrast to the deposit performance, gross advances marginally went down by 1 per cent to Rs3.28 trillion on October 1, 2010 against Rs3.321 trillion at beginning of the calendar...

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Indian rupee snaps 7-wk rally on outflow concerns

MUMBAI: The Indian rupee on Friday snapped a seven-week rally and posted its biggest daily loss in a month-and-a-half as traders positioned for dollar outflows post the country’s largest initial public offer allocation.However, most of the foreign funds are likely to have hedged a significant part of their positions, which could reduce the quantum of outflows, traders said. Coal India’s $3.5 billion IPO, the country’s largest, was more than 15 times subscribed on its final day, giving the government power to price the issue towards the top of its range and building momentum for other state offers. The partially convertible rupee closed at 44.59/60 per dollar, 0.65 per cent below Thursday’s close of 44.30/31. This is the rupee’s biggest one-day...

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Won, Singapore dollar rise after Geithner’s remarks

Asian currencies BANGKOK: The South Korean won and the Singapore dollar rose on Friday after US Treasury Secretary Timothy Geithner urged G20 members to avoid a currency war, but there was little reaction in other Asian currencies. Geithner said in letter to a G20 finance ministers’ meeting in South Korea that the group’s members should refrain from currency policies aimed at gaining a competitive edge.The won shot up to 1,122.6 per dollar in afternoon trade after his remarks from 1,135.0 earlier. The Singapore dollar firmed to 1.2974 per dollar from 1.3009 in the morning and 1.3020 late on Thursday. The reaction in other Asian currencies was more modest. The South Korean won rallied after Geithner urged G20 countries not to weaken or prevent...

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Afghan peace hinges on Pakistan: Gilani

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Friday said Pakistan must be involved in the “negotiation process” as it is part of the solution to the Afghan problem. Talking to office bearers of Diplomatic Correspondent Association of Pakistan (DCAP) here at Prime Minister House, he said, “Without involving Pakistan, no negotiation process can succeed.” The Prime Minister said Pakistan has taken initiative on the Afghanistan issue and is making sincere efforts to ensure peace and security in the region. Gilani said, “Pakistan is part of the solution to Afghan issue and not the problem.”About Pakistan’s role in reconciliation process in Afghanistan, he pointed out that during the last visit of President Hamid Karzai to Islamabad it was...

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America must fully trust Pakistan: Musharraf

CHICAGO: Former President Pervez Musharraf Friday reiterated that US must respect the sentiments of people and government of Pakistan to reduce trust deficit. During his address at the Chicago University, Former President Pervez Musharraf said that Pakistan is a frontline ally in war against terrorism and US knows this very well. Pakistan has paid a heavy price and lost more than it gained, he underlined. He said that US must realise that we must move forward to augment Pak-US relations, as it is better for both the countries.-Onl...

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US announces $2bn mily aid

US has no ally in WoT stronger than Pakistan: ClintonAid to Pakistan spanning over 5yrs subject to Congress OKWASHINGTON: The US has announced a $2bn package of military and security aid to Pakistan on the final day of the latest Washington-Islamabad strategic talks. Secretary of State Hillary Clinton unveiled the five-year deal, which is subject to Congressional approval. Announcement of the military assistance, which would be delivered over five years from 2012 to 2016, came at the formal opening session of the third round of the US-Pakistan Strategic Dialogue, a series of bilateral meetings that began on Wednesday. In a joint press conference with Foreign Minister Shah Mehmood Qureshi US Secretary of State Hillary Rodham Clinton said that...

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FO welcomes Obama’s Pak visit plan

WASHINGTON: US President Barack Obama will not visit Pakistan during his trip to Asia next month, but he is committed to a trip there in 2011, as well as welcoming Pakistani President Asif Ali Zardari to Washington, the White House said on Wednesday.Obama would be traveling to India, Indonesia, South Korea and Japan from next month. Managing the complex US relationship with Pakistan, including Islamabad’s role in the US-led Afghanistan war, is one of Washington’s most difficult foreign policy challenges. Despite a commitment of $7.5 billion in US aid over five years and substantial US aid after Pakistan’s devastating floods, Pakistanis remain skeptical of US intentions. Some commentators had said it would be an insult if Obama failed to visit...

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Asia leads recovery amid risks: IMF

JAKARTA: Asia is leading the global recovery but must beware of some risks like inflation and “excessively easy” domestic finance fuelled by foreign capital inflows, the International Monetary Fund said on Thursday.The Fund’s latest economic outlook for the Asia-Pacific region said growth would moderate in 2011 in the advanced economies while remaining “particularly strong” in China, India and Indonesia. It also said “greater exchange rate appreciation” may be needed to shield countries from hot money inflows. “Greater exchange rate flexibility offers an important buffer against the risk posed by large capital inflows,” the report said. China’s allegedly undervalued yuan has been the target of strong complaints from the United States and Europe,...

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Curfew, operation loom over Karachi

PM rules out Army deployment in metropolisNew extortion group present in city: MalikKARACHI: Sindh Home Department decided to launch an operation amidst curfew in various areas of Karachi adversely affected by the target killings. A high-ranking meeting under the chair of secretary interior, Arif Khan, contemplated the deteriorating situation of law and order and decided on many steps to ameliorate it. The meeting decided to undertake search operation in various badly affected areas after clamping curfew in the areas. The meeting was attended by IG Sindh, Sultan Salahuddin Babar Khattak, CCPO Karachi Fayyaz Leghari, deputy director general Rangers and DIGs of all zones. Briefing the media after meeting, the secretary interior informed that...

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Gold Rises:,Fed intent report knocks USD

LONDON: Gold climbed on Wednesday as the dollar fell sharply against the euro and yen after a report suggested the US Federal Reserve planned to boost growth by purchasing $500 billion in US Treasury debt over six months. Spot gold was bid at $1,344.00 an ounce at 1625 GMT, against $1,336.00 late in New York on Tuesday. US gold futures for December delivery rose $8.30 an ounce to $1,344.30. The precious metal fell 2.5 per cent on Tuesday, its biggest one-day loss since July 1, after China raised its benchmark interest rates by 25 basis points, sparking a dollar recovery. While fresh weakness in the US currency helped prices to rise back above $1,340 an ounce, its move has been relatively muted after Tuesday’s hefty losses. “We’re seeing a pretty...

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Sharif to honor his agreement

Stay clear of politics  Saudis ask LONDON/ ISLAMABAD: Representative of Saudi King Abdullah met with PML-N chief Mian Nawaz Sharif in London for three-hour in which he once again relate the message to abide by the agreement made during the tenure of former President Pervez Musharraf.Sources told Online that three days before a representative of Saudi King met with Nawaz Sharif in UK, during which the message of the Saudi King was conveyed by asking Sharif to abide by his agreement for not participating in politics till 20th December, 2010 and also not to indulge in any talk against former president Musharraf. Due to this agreement, Nawaz Sharif has not made any new statement against former president in or outside the country.PML sources...

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Tax structure makeover afoot: Gilani

PM says Pakistan faces a new phase of challengesISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Monday said that government is reshaping the existing tax structure with a view to widen tax net not only to increase tax-to-GDP ratio but also to mobilise local resources to help out millions of affected people in the country.Premier expressed these views while addressing representatives of NGOs during an interaction here. Prime Minister Gilani said that the country has entered a new phase of fundamental challenges following floods but our resolve stands solid to rebuild a better Pakistan. He was Prime Minister said Ministry of Finance is already reviewing the budget so that maximum resources can be made available to meet the needs of rehabilitation....

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KSE off-mkt news-system from Nov 1

KARACHI: Karachi Stock Exchange (KSE) has decided to introduce a new negotiated deal reporting system (NDRS) for equity and debt market segments, with effect from November 1, to make the reporting of all off market transactions on real-time and more transparent. According to KSE notice issued here Monday, presently, all off market transactions are reported via the special interface provided to members on their NCHS terminal. The members are obliged to report to the exchange all off-market transactions before 5:00PM or in case the deal takes place after market hours they are reported next day before 5:00 pm.The same gets disseminated on the following day to the market, via daily quotations, with quantity, price and members code. All charges...

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Heads bound to heed orders: SC

Supreme Court reminds govt of Article 190 AG told to submit govt stance on NAB (Amend) OrdSpecial Correspondent/ Agencies ISLAMABAD: Supreme Court of Pakistan Monday while hearing a suo moto regarding “alleged withdrawal of executive orders of judges’ restoration”, said that under Article 190 of the Constitution government is bound to follow Courts orders. Chief Justice of Pakistan, heading the 17-member bench, said in its short order that Court’s October 15th restraining order on judges’ restoration issue was binding upon all the constitutional and administrative heads in term of Article 190 of the Constitution. “It is mandatory for all the state institutions under Article 190 to comply with the orders of the court. Article 190 of the Constitution...

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Reformed General Sales Tax

ISLAMABAD : The exemptions, to be retained under the reformed general sales tax (RGST), include newspapers, wheat, pulses, vegetables, peas, salt and water, excluding those sold under brand names or trademarks. Sales tax exemption would be applicable on the goods imported under the President s Salary, Allowances and Privileges Act, 1975; goods imported under the Prime Minister s Salary, Allowances and Privileges Order, 1975; goods imported under the Governor s Salary, Allowances and Privileges, Order, 1975 and goods imported under the Acting Governor s (Allowance and Privileges) Order, 1978. Sources told Business Recorder here on Saturday that the Federal Board of Revenue (FBR) has proposed a list of sales tax exemptions, to be retained under...

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Crude Oil Fails to Break Resistance Gold Slides on Traders Lock in Gains

Crude Oil Fails to Break Resistance Crude Oil (WTI) - $80.73 // $0.52 // 0.64% Commentary: Crude oil is lower in the overnight session as traders continue to take profits after a blistering run from the low-$70’s. The push-pull dynamic between a bullish global economic outlook and ample supplies continues. So far these two factors have offset each other, which has allowed crude oil to stay within its 12-month range between the high-$60’s and low-$80’s. With prices now at the top end, it is only natural that traders would look to lock in gains. The question now becomes, is oil now poised to head toward the lower end of the range or will it breakout to the upside? While another trip into the $70’s is possible, we would look for opportunities...

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