FTSE slides 2 pct as banking woes intensify

* Banks push FTSE 100 down 2 pct
* Barclays announces further job cuts, HSBC falls
* Miners down as metal prices fall

By Phakamisa Ndzamela
LONDON, Jan 14 (Reuters) - Britain's blue-chip shares fell 2 percent by midday on Tuesday, with financials weighing heavily, as capital raising concerns at HSBC and job losses at Barclays threw a spotlight on the ailing banking sector.
Banks faltered after Morgan Stanley said HSBC (HSBA.L), Europe's biggest bank, may have to raise as much as $30 billion in capital and halve its dividend.
By 1209 GMT, the FTSE 100 was down 88.41 points at 4,130.74. The UK benchmark is down 2.8 percent so far this month and fell more than 31 percent last year, its worst annual drop since its launch in 1984.
Morgan Stanley said HSBC's earnings will fall this year and its relative capital position is not as strong as in the past. [ID:nLE245760]
"The HSBC news is a catalyst for more selling," said John Prior, an associate director of market strategy at Killik & Co.
"The situation is a big concern. We are telling our clients to come out of HSBC at the moment. We just think with this issue hanging around there's not much upside for the price," Prior added.
Barclays was the biggest loser among banks on the FTSE 100 down 11.7 percent after announcing a further 2,100 job cuts to add to the 2,500 job losses announced on Tuesday. [ID:nWLA4976]

FTSE 100 hit by banks to close 5 pct lower

* FTSE 100 slides 5 pct, lowest close for over a month
* Banks hammered on credit outlook, sector down 10 pct
* Miners, oils down as commodity prices fall

By Simon Falush
LONDON, Jan 14 (Reuters) - Britain's blue-chip shares tumbled 5 percent to their lowest close in over a month on Wednesday led by financials which were thumped on anxiety over their balance sheets.

HK shares snap 6-day slump but HSBC weighs down index

* HK shares turn course after six-day slide
* China banks recover after RBS sells stake in BOC
* HSBC drops after broker cuts profit estimate,target price
(Updates to close)
By Parvathy Ullatil
HONG KONG, Jan 14 (Reuters) - Hong Kong shares pared early gains to finish 0.3 percent higher after a sharply lowered target price and earnings estimates on HSBC Holdings sent shares in Europe's top bank to their lowest in more than seven years.
Index heavyweight HSBC (0005.HK) tanked 4.1 percent to HK$70, even slipping below that level at one point earlier Wednesday, after Morgan Stanley cut its target price by 31 percent to HK$52.
The U.S. investment bank cut its profit estimate for the British-based lender by 17 percent for 2008 and 39 percent for 2009 and expects the bank to halve its dividend. Morgan Stanley also predicts a $20 billion to $30 billion capital need at HCBC.
"If HSBC cut its dividend by half, its dividend yield will fall to 5 percent from 10 percent and given the bank's huge exposure to UK and U.S. market, 5 percent yield is not attractive any more," said Steven Leung, director with UOB Kay Hian.
"If the stock can't recover to HK$72 or HK$73 by tomorrow the situation can get pretty ugly."
Slumping HSBC shares offset gains in Chinese banking counters after the third equity selldown in a major lender this year eliminated some of the overhang on the sector. [ID:nHKF079859]
The benchmark Hang Seng Index .HSI closed 36.56 points higher at 13,704.61, snapping a six-day slide, its longest since September 2008.
But the index finished well off its early highs as HSBC extended losses in the afternoon session, dragging down with it shares in local arm Hang Seng Bank (0011.HK) which fell 4 percent.
Mainboard turnover rose to HK$66.2 billion ($8.5 billion) from HK$47.3 billion on Tuesday. The China Enterprises Index .HSCE of top mainland firms outperformed, climbing 2 percent to 7,219.04.
CHINA BANKS OUTPERFORM

HK shares to open down 4.2 pct at 7-week low

HONG KONG, Jan 15 (Reuters) - Hong Kong shares will open 4.2 percent lower at a seven-week low on Thursday with concerns over earnings at banks slamming heavyweight HSBC (0005.HK) again after the stock hit a seven-year low the previous session.
HSBC is set to open 5 percent lower at HK$66.50, still reeling from a Morgan Stanley report that cut its earnings estimates and target price and warned that the UK-based lender may need $20 billion to $30 billion to shore up its capital.
The Hang Seng Index .HSI will open 568.38 points lower at 13,136.23.
Concerns over steep losses this year and signs of a mounting recession beat down stocks across the board with only 11 of the total 1,097 issues traded set to open higher on Thursday.
China Enterprises Index .HSCE of top locally listed mainland firms is indicated to open down 5 percent at 6,860.98. (Reporting by Parvathy Ullatil; Editing by Nick Macfie) (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
ASIA-PACIFIC STOCK MARKETS: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS] S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW] Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS: Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/] ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary
[WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts EQUITYPOLL1
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data ASIATODAY A multimedia version of Reuters Top News is available at:
LIVE PRICES & DATA: World Stocks <0#.INDEX> Currency rates Dow Jones/NASDAQ .DJI .IXIC Nikkei .N225 FTSE 100 .FTSE Debt <0#USBMK=> EURIBOR Hong Kong Dollar LME price overview

HK shares trim gains to 0.3 pct as HSBC slides

HONG KONG, Jan 14 (Reuters) - Hong Kong shares pared early gains to finish slightly higher after a sharply lowered target price and earnings estimates on HSBC Holdings sent shares in Europe's top bank to their lowest in more than seven years.
Index heavyweight HSBC (0005.HK) tanked more than 4 percent at one point on Wednesday after Morgan Stanley cut its target price by 31 percent to HK$52.
Slumping HSBC shares offset gains in Chinese banking counters after the third equity selldown in a major lender this year eliminated some of the overhang on the sector. [ID:nHKF079859]
The benchmark Hang Seng Index .HSI unofficially closed 0.3 percent or 34.95 points higher at 13,703.00, snapping a six day slide. The index finished well off its early high of 14,019.03
The China Enterprises Index .HSCE of top mainland firms outperformed, climbing 2 percent to 7,224.08.
(Reporting by Parvathy Ullatil; Editing by Jonathan Hopfner) (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
ASIA-PACIFIC STOCK MARKETS: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS] S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW] Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS: Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/] ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary
[WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts EQUITYPOLL1
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data ASIATODAY A multimedia version of Reuters Top News is available at:
LIVE PRICES & DATA: World Stocks <0#.INDEX> Currency rates Dow Jones/NASDAQ .DJI .IXIC Nikkei .N225 FTSE 100 .FTSE Debt <0#USBMK=> EURIBOR Hong Kong Dollar LME price overview

HK shares snap six days slump; China banks rally

* HK shares turn course after six day slide
* China banks recover after RBS sells stake in BOC
* HSBc drops after broker cuts profit estimate,target price
(Updates to midday)
By Parvathy Ullatil
HONG KONG, Jan 14 (Reuters) - Hong Kong shares were on course to end a six-day losing spell on Wednesday, rising 1.4 percent, with Chinese banks outperforming after an equity selldown in Bank of China (3988.HK) eliminated an overhang on the sector.
However index heavyweight HSBC Holdings (0005.HK) fell 2.3 percent to HK$71.3, its lowest level since after the September 11, 2001 attacks on the United States, following a Morgan Stanley report that slashed its target price to HK$52.
The U.S. investment bank cut its profit estimate for the UK-based lender by 17 percent for 2008 and 39 percent for 2009 and said HSBC may have to raise $20 billion to $30 billion to shore up its capital.
The benchmark Hang Seng Index .HSI ended the morning session 194.99 points higher at 13,863.04 after a six day slide, its longest since September, 2008.
Mainboard turnover rose to HK$43.8 billion ($5.6 billion) as compared with HK$25 billion by midday Tuesday.
"Most markets in Asia Pacific have moved up today on hopes that Tuesday's mixed performance on Wall Street indicates the market has hit a bottom after a five day fall," said Andrew To, sales director with Taifook Securities.
"If the HSI can hold above 13,800 points for a few days, it should form a good support and trigger short covering. We may rechallenge 15,000 points around Chinese New Year," he said.

HK shares snap 6-day slump but HSBC weighs down index

* HK shares turn course after six-day slide
* China banks recover after RBS sells stake in BOC
* HSBC drops after broker cuts profit estimate,target price
(Updates to close)
By Parvathy Ullatil
HONG KONG, Jan 14 (Reuters) - Hong Kong shares pared early gains to finish 0.3 percent higher after a sharply lowered target price and earnings estimates on HSBC Holdings sent shares in Europe's top bank to their lowest in more than seven years.
Index heavyweight HSBC (0005.HK) tanked 4.1 percent to HK$70, even slipping below that level at one point earlier Wednesday, after Morgan Stanley cut its target price by 31 percent to HK$52.
The U.S. investment bank cut its profit estimate for the British-based lender by 17 percent for 2008 and 39 percent for 2009 and expects the bank to halve its dividend. Morgan Stanley also predicts a $20 billion to $30 billion capital need at HCBC.
"If HSBC cut its dividend by half, its dividend yield will fall to 5 percent from 10 percent and given the bank's huge exposure to UK and U.S. market, 5 percent yield is not attractive any more," said Steven Leung, director with UOB Kay Hian.
"If the stock can't recover to HK$72 or HK$73 by tomorrow the situation can get pretty ugly."
Slumping HSBC shares offset gains in Chinese banking counters after the third equity selldown in a major lender this year eliminated some of the overhang on the sector. [ID:nHKF079859]
The benchmark Hang Seng Index .HSI closed 36.56 points higher at 13,704.61, snapping a six-day slide, its longest since September 2008.
But the index finished well off its early highs as HSBC extended losses in the afternoon session, dragging down with it shares in local arm Hang Seng Bank (0011.HK) which fell 4 percent.
Mainboard turnover rose to HK$66.2 billion ($8.5 billion) from HK$47.3 billion on Tuesday. The China Enterprises Index .HSCE of top mainland firms outperformed, climbing 2 percent to 7,219.04.
CHINA BANKS OUTPERFORM
(3988.H Beijing-controlled Bank of China K) rose 2.7 percent after Royal Bank of Scotland (RBS.L) sold $2.4 billion worth of shares, its entire holding in China's No.2 lender

HK shares seen lower on earnings worries; autos eyed

HONG KONG, Jan 15 (Reuters) - Hong Kong shares are seen
lower on Thursday with concerns over earnings at banks driving
down HSBC (0005.HK) again after the stock hit a seven-year low
in the previous session.

A Morgan Stanley earnings downgrade sent HSBC shares
tumbling 4.1 percent in Hong Kong and 8 percent in London. The
U.S. investment house said the UK-based lender may need $20
billion to $30 billion to shore up its capital.

Worries about steep losses at banks worldwide and poor
retail sales data also sent U.S. stocks to six-week lows on
Wednesday.

Investors will watch refinery stocks after China, in a
surprise move, decided to trim gasoline and diesel prices by a
few percent on Thursday. This is the first adjustment since
bringing in a new fuel price system last month, a reform that
could see pump prices change much more frequently.

The latest change will cut gasoline price ceilings by 140
yuan ($20.48) per tonne and diesel price ceilings by 160 yuan
($23.41) per tonne from midnight on Wednesday.

The Hang Seng Index .HSI ended Wednesday 0.3 percent
higher at 13,704.61, snapping a six-day slide that wiped out
gains made in its year-end rally.

STOCKS TO WATCH

* Chinese automobile stocks will be eyed after China
unveiled a wide-ranging plan to boost the domestic auto
industry, including halving the sales tax on small cars and
subsidies to encourage car owners to trade their old models for
newer, fuel-efficient ones.

The government said it favoured consolidation of the
sprawling industry and would promote mass production of
electric-powered vehicles.

* Pou Sheng International, a sportswear retailing arm of
Yue Yuen Industrial (0551.HK), said on Thursday it planned to
expand its store network in China via a deal worth about HK$793
million ($101.7 million).

Pou Sheng (3813.HK) said it would buy the 70 percent of
Farsighted International Ltd (FIL) not already owned by the
firm for HK$428.6 million in cash and the issue of 393.6
million new shares at HK$0.925 each.

* China Southern Airlines (600029.SS), the country's
largest carrier by fleet size, estimated on Wednesday that it
would report a loss for 2008.

In a brief statement, the airline cited the slowdowns in
the global and Chinese economies, which cut traffic demand, as
well as high domestic fuel prices during the year.

China Southern, which posted net profit of 1.85 billion
yuan ($271 million) in 2007, will release 2008 earnings in
mid-April. -------------MARKET SNAPSHOT @ 00:11 GMT
-----------------------

INSTRUMENT   LAST     PCT CH GNET CHG

S&P 500           .SPX       842.62  -3.35%  -29.170

USD/JPY                  89.16    0.17%   0.150

10-YR US TSY YLD    2.206    --      0.000

SPOT GOLD                $812.45  0.23%   1.900

US CRUDE          CLc1       $37.23  -0.13%  -0.050

DOW JONES         .DJI       8200.14 -2.94%  -248.42

ASIA ADRS         .BKAS      87.99   -3.22%  -2.93
 -------------------------------------------------------------
> Wall Street falls on bank anxiety, Apple down after bell 
[.N] > Oil falls on U.S. stock build, weak demand             
 [O/R] > TREASURIES-Prices up as weak retail sales send stocks
down[US/] > Euro down on Greece downgrade, risk appetite fades

[USD/] > Gold falls on weak demand, dollar rise; ECB eyed

[GOL/]
 (Reporting by Parvathy Ullatil; Editing by Clarence
Fernandez)
 (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))

ASIA-PACIFIC STOCK MARKETS:
 Pan-Asia......[STXNEWS/AS]  Japan........[.T]
S.Korea....[.KS]
 S.E. Asia............[.SO]  Hong Kong...[.HK]
Taiwan.....[.TW]
 Australia/NZ.........[.AX]  India.......[.BO] China......[.SS]

OTHER MARKETS:
 Wall Street...........[.N] Gold.........[GOL/]
Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R]
JP bonds...[JP/]
 ADR Report..........[ADR/] LME metals..[MET/L] US
bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News
Europe...[STXNEWS/EU]

DIARIES & DATA: IPO diary & data    Asia
earnings diary [ASIA/EQTY] U.S. earnings diary  [RESF/US]
 European diary

[WEU/EQTY]
 Taiwan diary        [TW/DIARY]  Wall Street Week Ahead 
[.N/O]
 Eurostocks Week Ahead  [.EU/O]  World forecasts  EQUITYPOLL1

TOP NEWS:

For top Asian company news, double click on:     
[nTOPEQA]
 U.S. company news    [TOP/EQU]  European company news
[TOP/EQE]
 Forex news           [TOP/FRX]  Global Economy news
[TOP/MACRO]
 Technology news     [TOP/TECH]  Telecoms news     
[TOP/TELCO]
 Media news         [TOP/MEDIA]  Banking news        
[TOP/FIN]
 Politics/General news  [TOP/G]  Asia Macro data   
ASIATODAY

HK shares to open down 4.2 pct at 7-week low

HONG KONG, Jan 15 (Reuters) - Hong Kong shares will open 4.2 percent lower at a seven-week low on Thursday with concerns over earnings at banks slamming heavyweight HSBC (0005.HK) again after the stock hit a seven-year low the previous session.
HSBC is set to open 5 percent lower at HK$66.50, still reeling from a Morgan Stanley report that cut its earnings estimates and target price and warned that the UK-based lender may need $20 billion to $30 billion to shore up its capital.
The Hang Seng Index .HSI will open 568.38 points lower at 13,136.23.
Concerns over steep losses this year and signs of a mounting recession beat down stocks across the board with only 11 of the total 1,097 issues traded set to open higher on Thursday.
China Enterprises Index .HSCE of top locally listed mainland firms is indicated to open down 5 percent at 6,860.98. (Reporting by Parvathy Ullatil; Editing by Nick Macfie) (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
ASIA-PACIFIC STOCK MARKETS: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS] S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW] Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS: Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/] ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary
[WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts EQUITYPOLL1
TOP NEWS:
For top Asian company news, double click on: [nTOPEQA] U.S. company news [TOP/EQU] European company news [TOP/EQE] Forex news [TOP/FRX] Global Economy news [TOP/MACRO] Technology news [TOP/TECH] Telecoms news [TOP/TELCO] Media news [TOP/MEDIA] Banking news [TOP/FIN] Politics/General news [TOP/G] Asia Macro data ASIATODAY A multimedia version of Reuters Top News is available at:
LIVE PRICES & DATA: World Stocks <0#.INDEX> Currency rates Dow Jones/NASDAQ .DJI .IXIC Nikkei .N225 FTSE 100 .FTSE Debt <0#USBMK=> EURIBOR Hong Kong Dollar LME price overview

HK Hot Stocks-Standard Chartered, China Southern fall

HONG KONG, Jan 15 (Reuters) - By 0245 GMT the Hang Seng Index .HSI had fallen 4.4 percent to 13,098.05.
Concerns over steep losses this year and signs of a mounting recession beat down stocks across the board, with only 49 of the total 1,097 issues traded higher in Thursday morning trade.
The China Enterprises Index .HSCE of top locally listed mainland firms had fallen 4.4 percent to 6,901.05.
Here are some of the stocks on the move in early trade-
* Shares in London-based lender Standard Chartered (2888.HK) (STAN.L) dived 6.6 percent on Wednesday, underperforming other regional banking stocks after Mervyn Davies stepped down as chairman of the Asia-focused bank.
The stock fell to HK$90.60, recovering slightly from the day's low of HK$88.5.
Davies, who led the bank as chief executive from 2001 to 2006 and is credited with playing an important role in restructuring the bank following the setbacks it suffered during the Asian financial crises of 1997-1998, will take up a role as British minister for trade and investment.
"...this is nonetheless an unexpected if not unwelcome development, amidst unsettled markets and uncertain macro outlooks for several of Standard Chartered's key markets," said Goldman Sachs analyst Roy Ramos.
* China Southern Airlines (600029.SS), the country's largest carrier by fleet size, sank 6.2 percent after the air carrier said it estimated it would report a loss for 2008.
The airline blamed its poor performance on the slowdowns in the global and Chinese economies, which cut its passenger volume growth to single digits for the first time in five years, as well as high domestic fuel prices during the year.
In 2007, China Southern posted a net profit of 1.85 billion yuan ($271 million). It is due to release its 2008 earnings report in mid-April. (Reporting by Parvathy Ullatil; Editing by Clarence Fernandez) (parvathy.ullatil@thomsonreuters.com; +852 2843-6415))
ASIA-PACIFIC STOCK MARKETS: Pan-Asia......[STXNEWS/AS] Japan........[.T] S.Korea....[.KS] S.E. Asia............[.SO] Hong Kong...[.HK] Taiwan.....[.TW] Australia/NZ.........[.AX] India.......[.BO] China......[.SS]
OTHER MARKETS: Wall Street...........[.N] Gold.........[GOL/] Currency..[FRX/] Eurostocks...........[.EU] Oil...........[O/R] JP bonds...[JP/] ADR Report..........[ADR/] LME metals..[MET/L] US bonds...[US/] Stocks News US...[STXNEWS/US] Stocks News Europe...[STXNEWS/EU]
DIARIES & DATA: IPO diary & data Asia earnings diary [ASIA/EQTY] U.S. earnings diary [RESF/US] European diary
[WEU/EQTY] Taiwan diary [TW/DIARY] Wall Street Week Ahead [.N/O] Eurostocks Week Ahead [.EU/O] World forecasts EQUITYPOLL1
TOP NEWS

TOPWRAP 2-U.S. bank crisis deepens as ECB rate cut expected

* European Central Bank seen cutting interest rates
* Equity markets slide on bank news and weak data
* Citigroup shares plunge as banking crisis returns
* U.S. govt close to giving Bank of America new aid-source (For more on the global economic crisis, click [nCRISIS])
By Sakari Suoninen and Tetsushi Kajimoto
FRANKFURT/TOKYO, Jan 15 (Reuters) - Bank of America and Citigroup faced fresh turmoil as investors questioned if they had the capital strength to cope with a global crisis that is set to push the European Central Bank to cut rates later on Thursday.
Data across the developed world pointing to a deepening recession and fears that more public money in the United States may be needed to keep banks afloat weighed on financial markets.
Asian equities followed European and U.S. markets to fall to multi-week lows. Tokyo's Nikkei average slipped close to 5 percent after news that Japan's core machinery orders fell at a record pace in November. [ID:nT164777] [ID:nT230571]
Shares in Bank of America (BAC.N) and Citigroup (C.N), two of America's biggest banks, fell as they faced a fresh crisis of confidence over whether they have enough capital to cover haemorrhaging losses from toxic assets and the struggling global economy.
"The large banks in the U.S. are not lending, and they're desperate to conserve capital," said Dan Alpert at Westwood Capital in New York. "Banks only remain going concerns because the federal government is topping up their equity."
The financial crisis began in credit markets in 2007, when bank lending dried up in the face huge losses in the U.S. housing market. The global economy has deteriorated relentlessly since, pushing the biggest developed countries into recession and raising alarm bells over rising job losses.
Citigroup, whose shares dived 23 percent on Wednesday, plans to report quarterly results six days ahead of schedule on Friday and analysts are looking for a fifth straight multibillion-dollar loss. [ID:nN14490234]
The bank was also widely expected to provide details of a reorganisation of the company designed to ensure its survival.
Bank of America is close to receiving billions of dollars of support from the U.S. government, a source familiar with the matter said, as it tries to digest Merrill Lynch & Co Inc, the investment bank and brokerage it bought on Jan. 1.
Merrill has billions in troubled assets -- ranging from commercial real estate to subprime mortgages -- that suffered during a brutal fourth quarter.
Citigroup has already been propped up with $45 billion in government funds from the Troubled Asset Relief Program (TARP), while Bank of America and Merrill have received $25 billion

USD/JPY 22-1-09

บทวิเคราะห์จาก FX Instructor ครับ ยิงฟันยิ้ม
As I had expected, the USDJPY fabricated a cogent bearish drive yesterday. The brace hit my abbreviate ambition at 88.90 even further, bottomed at 87.12 but bankrupt college at 89.37. Early today in Asian affair the brace connected it's bearish scenario, traded about 88.80 at the time I wrote this comment. The bent charcoal bearish targeting 86.15 area. CCI in oversold breadth and branch up on 4h blueprint so watch out for a accessory upside burden testing 89.50 and 90.15 attrition area. Please bang actuality to see the chart.
USDJPY Daily Supports and Resistances:
S1= 87.61
S2= 85.85
S3= 84.58
R1= 90.64
R2= 91.91
R3= 93.67

Asian shares hit 6-week low

By Rafael Nam
HONG KONG (Reuters) - Asian shares hit a six-week low on Thursday and safe-haven Japanese bond futures rose to their highest since Lehman Brothers collapsed in September as a U.S. banking crisis deepened, sparking fears of prolonged financial turmoil.
Bank of America Corp and Citigroup Inc shares plunged on Wednesday as investors questioned whether the firms have enough capital to cover losses from toxic assets.
The market turbulence is an another blow to major economies that are facing the toughest conditions in decades as evidenced by the latest data out of the United States, Germany and Japan.
The European Central Bank is expected to slash interest rates later in the day, though uncertainty about how deep a cut to expect helped send the euro to multi-week lows on Wednesday.
"A continued flow of bad economic data is pointing to steeper global recession, worsening concerns about corporate earnings," said Lee Sun-yeob, a market analyst at Goodmorning Shinhan Securities in Seoul.
"Increasingly bearish prospects for global banks' results are also pressuring sentiment."
The MSCI index of Asia-Pacific shares excluding Japan dropped 5 percent as of 0515 GMT (12:15 a.m. EST), heading to its biggest percentage daily fall since mid-November.
The last time worries about Citigroup's fate undermined global equity markets was in November, when the U.S. government stepped in to prop up the lender with government funds.
The MSCI index on Thursday hit its lowest since December 8, down almost 9 percent for the year. The deep falls over the past week and a half are rapidly denting a rally that still has shares up about 17 percent since hitting five-year lows in November.
Policymakers worldwide have responded since late last year by slashing interest rates and boosting spending, but the actions have yet to fully convince investors.
Among the latest factors worrying investors were data on Wednesday showing December U.S. retail sales tumbled and Germany's economic growth slipped to a three-year low in 2008.
In Japan, core machinery orders fell by a record amount in November, data showed on Thursday.
"The problems are global and there isn't any real good news around," said Martin Angel, a dealer at Patersons Securities Ltd. in Australia. "You are just not going to escape it."
Japan's Nikkei average dropped 4.5 percent, with Nissan Motor Co slipping 3.4 percent on news it will post an annual operating loss because of sliding sales and a soaring yen.
Benchmark stock markets in South Korea, Australia and Hong Kong fell 4-5 percent each

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รายได้หรือยอดขาย

การเติบโตของยอดขายในอดีต คือ ควรเติบโตอย่างสูงหรือสูงพอสมควรและสม่ำเสมอถึงจะดี

มีปัจจัยใดบ้างที่ส่งผลกระทบต่อยอดขาย คือ พฤติกรรมผู้บริโภค ตัวแปรอื่นๆ ซึ่งจะส่งผลทั้งด้านดีและด้านลบ เพื่อประเมินธุรกิจในอนาคตได้

แนวโน้มการเติบโตของยอดขายในอนาคต คือ ดูจากแผนงานของผู้บริหาร และปัจจัยอื่นๆข้างต้นโดยสามารถสังเกตได้จาก เกณการเติบโต 15-20%

อัตราการเติบโตของยอดขายเทียบกับอุตสาหกรรม คือ นำการเติบโตมาเทียบกับอุตสาหกรรม หรือคู่แข่งโดยควรสูงกว่าค่าเฉลี่ยโดยรวม

ความสามารถในการทำกำไร

อัตรากำไรจากการดำเนินงาน คือ ให้ดูที่งบการเงินงวดต่างๆ จาก “กำไรก่อนดอกเบี้ยภาษี” ในส่วนนี้จะบอกถึงความสามารถในการควบคุมการจัดการต้นทุนในแง่การผลิต จะต้องมีค่าสูงพอสมควรแล้วลองนำไปเทียบกับยอดขายว่าสูงเพียงพอหรือไม่อย่างไร

อัตรากำไรสุทธิ คือ ควรมีกำไรสุทธิที่มีมากเพียงพอ และควรจะคงที่หรือเพิ่มขึ้นทุกไตรมาตร หรือทุกปี

อัตราการเพิ่มขึ้นของกำไรสุทธิเทียบกับยอดขาย คือ บอกถึงประสิทธิภาพการลงทุนที่ดี โดยอย่างน้อย ยอดขายเพิ่ม 10 กำไร ควรเท่ากันหรือมากกว่า(ยิ่งดี)

Dilution Effect ที่มีต่อกำไรต่อหุ้น คือ (เน้น) ปัจจัยการลดทอนราคาหุ้นโดยตรง เช่นการออก warrant มากไม่ดี , การเพิ่มทุน มากไม่ดี ส่วนมากจะมาจากแผนขยายงาน ลงทุนเพิ่ม, การจัดสรรหุ้นให้พนักงาน (ESOP) ราคาถูก และมากไม่ดี


การจัดการด้านการเงิน

การบริหารสภาพคล่องของธุรกิจ คือ ดูที่รายการในงบดุลโดยควรมีสินทรัพย์หมุนเวียน มากกว่า หนี้สินหมุนเวียน มากพอสมควรอย่างน้อยๆเมื่อเทียบกันแล้วมากกว่าหลาย 10% และควรมีเงินสดอยู่ในบัญชีที่มากพอสมควร ไม่ควรมาก(ไม่ได้นำไปลงทุนเพิ่ม)หรือน้อยเงินไป(สภาพคล่องน้อยเกินไป) และหากยอดขายสูงขึ้นเงินสดควรสูงขึ้นด้วยในระดับเดียวกัน

ความสามารถในการสร้างกระแสเงินสด คือ หลังจากการทำกำไรสามารถเปลี่ยนเป็นเงินสดได้มากหรือไม่ โดยควรมีค่าเป็นบวก และเพิ่มขึ้นทุกปี (หากเป็นลบไม่ดี)

การจัดหาเงินทุนสอดคล้องกับการลงทุนในสินทรัพย์หรือไม่ คือ เป็นการมองถึงความระมัดระวังของการจัดหาเงิน ให้ดูที่งบดุล ว่าบริษัทมี หนี้สินไม่หมุนเวียน รวมกับส่วนของผู้ถือหุ้น แล้วต้องมากกว่า สินทรัพย์ไม่หมุนเวียน

สัดส่วนการกู้หนี้ยืมสิน คือ กิจการที่มีหนี้มากก็จะมีความเสี่ยงมาก

นโยบานการจ่ายเงินปันผล คือ การจัดสรรกำไรให้นักลงทุน ประเด็นแรก มีการจ่ายเงินปันผลสม่ำเสมอ ประเด็นที่สอง การปันผลต้องไม่กระทบต่อการลงทุนและสภาพคล่องและไม่กู้เงินมาจ่ายปันผล








อัตราส่วนราคาต่อกำไร

Historical & Prospective คือ เปรียบเทียบค่า PE ปัจจุบัน กับ อนาคตโดยอนาคตควรน้อยกว่าค่าปัจจุบัน

PE Ratio ต่ำกว่า 10 เท่าอยู่ในเกณฑ์ปลอดภัย

PE Ratio หากต่ำกว่า 5 เท่าบ่งบอกถึงแนวโน้มของธุรกิจที่ไม่สดใส การทำกำไรไม่ชัดเจน

PE Ratio ระดับ 15-20 เท่าเป็นเขตอันตราย

กิจการที่มีอัตราการเติบโตของกำไรสูงมักที่ค่า PE Ratio สูงกว่าระดับค่าเฉลี่ย

Infosys, Wipro fall after Nortel bankruptcy filing

BANGALORE, Jan 15 (Reuters) - Shares in leading Indian outsourcers such as Infosys Technologies (INFY.BO) and Wipro (WIPR.BO) fell on Thursday after one of their clients Nortel Networks Corp (NT.TO) filed for bankruptcy.

Analysts said Nortel's work contributed only a small portion of revenue for the outsourcers, but the news dealt another blow to the export-driven companies that have seen their growth slowing sharply as a global economic turmoil crimped demand.

By 0718 GMT, shares in Infosys, India's second-largest software services exporter, were down 5.2 percent at 1,237 rupees, after having fallen as much as 6.1 percent, in a Mumbai market .BSESN down 3.5 percent.

No. 3 exporter Wipro was down about 5 percent at 231.80 rupees, after having shed as much as 10.5 percent, while the sector leader Tata Consultancy Services (TCS) dropped 5.8 percent to 507.20 rupees.

North America's biggest telephone equipment maker filed for credit protection on Wednesday hoping to save a once highflying business whose decade-long decline has accelerated with the global economic crisis. [ID:nBOM389765] Analysts at JP Morgan wrote in a report that the Nortel move could "potentially impact" Tata Consultancy, Infosys and Wipro as they work with the telecom equipment maker.

As per Chapter 11 filing of Nortel, both Infosys and TCS have trade receivables worth $2.9 million each, while Wipro has receivable worth $3.1 million, JP Morgan said.

"Wipro could see business decline from Nortel, but we would expect the overall impact to be small. For Infosys and TCS, we believe the EPS impact would be even lower," it said.

Officials at the Indian outsourcers were not immediately available for comment. "While Nortel bankruptcy itself should not have a significant impact on the financials of TCS, Infosys and Wipro, we believe it is a concern for the Indian IT sector as it reflects the weak health of the telecom OEM sector," JP Morgan said, referring to original equipment manufacturers for telecom firms. The brokerage said Wipro, with 10 percent exposure to telecom equipment makers, could be hurt more than TCS and Infosys. (Reporting by Sumeet Chatterjee; Editing by Ranjit Gangadharan

การเล่นหุ้นดูอย่างไร

การวิเคราะห์ปัจจัยพื้นฐาน

ข้อมูลเชิงคุณภาพ

1.   ธุรกิจ

2.   ผู้บริหาร

ข้อมูลเชิงปริมาณ

1.   รายได้หรือยอดขาย

2.   ความสามารถในการทำกำไร

3.   การจัดการด้านการเงิน

4.   อัตราส่วนราคาต่อกำไร (PE Ratio)

ธุรกิจ

ธุรกิจทำอะไร คือ ข้อมูลรายละเอียดของสินค้า การบริการ การลงทุน

ผลงานที่ผ่านมา คือ มองชื่อเสียงที่ผ่านมา ความสามารถในการทำธุรกิจ

การวิจัยและพัฒนา คือ ความสามารถในการพัฒนาเพื่อรองรับตลาดในอนาคต

แนวโน้มในอนาคต คือ แนวโน้มยอดขาย แนวโน้มโดยภาพใหญ่ของธุรกิจ

การกระจายของผลิตภัณฑ์ คือ ความหลากหลายของสินค้าเพื่อกระจายตลาดของธุรกิจ

ความสามารถในการแข่งขัน คือ การประเมินอำนาจต่อรอง ความเป็นผู้นำตลาด เมื่อเทียบกับคู่แข่ง

ผู้บริหาร

ความรู้ความชำนาญ คือ การศึกษา ความเก่งเฉพาะด้านโดยดูทั้งทีม

ประสบการณ์ในอดีต คือ ผลงานที่ผ่านมาของผู้บริหาร

เครือข่ายสายสัมพันธ์ คือ สายสัมพันธ์ทางธุรกิจและสังคม

ความเป็นมืออาชีพ คือ มีการกระจายความรับผิดชอบ อุปกรณ์การควบคุมดูแล

วิศัยทัศน์และการมองการณ์ไกล คือ วิศัยทัศน์ที่นำพาธุรกิจไปข้างหน้า แผนงานในอนาคต

กลยุทธ์และแนวการทำธุรกิจ คือ การเติบโตด้วยตัวเอง หรือการควบรวม มองให้เหมาะสมกับธุรกิจนั้นๆ หรือ การจัดหาพันธมิตร

ธรรมาภิบาล คือ มีการชี้แจ้งแบบไม่มีปิดบัง บิดเบื่อน ได้รับรางวัลต่างๆ

Fibonacci

Fibonacci - Who Was He And How Could He Improve My Stock Trading Profits? By Chris Towland The word Fibonacci means a lot of things to a lot of different people. For mathematicians, Fibonacci is an important number sequence. For some painters, sculptors, and other visual artists, Fibonacci is a principle theory of the arts. For traders, businessmen, economists and the like, Fibonacci is a system that can efficiently predict market trends. Yet, for most of us, Fibonacci sounds incredibly complex and something that we ' d rather not discover. But what exactly is Fibonacci? What does it mean and for what is it used? Fibonacci, which means son of Bonacci, is actually a nickname used by the famous Italian mathematician and businessman Leonardo Pisano. Bonacci, on the other hand, is the nickname of his father and it means' good natured 'or' simple '. While Fibonacci was born in Italy, he spent most of his childhood years in Bugia (now Bejaia), a Mediterranean port in Algeria where his father, Guilielmo, worked as a consul for the merchants of Pisa. It is in Bugia where he learned the Arabic numeral system, and later as he traversed the rest of the Mediterranean world, he learned more of the Arabic mathematical system and its practical uses. In 1200, Fibonacci ended his travels and returned to Europe. There he wrote a number of books that disclosed the mathematical skills he had learned in his Mediterranean travels. Among his works that were published are the Practica Geometriae, Flos, Liber quadratorum, Di minor guisa , and his commentary on Book X of Euclid's Elements; the last two mentioned, unfortunately, are already lost. His Liber quadratorum, or Book of Squares, is probably his most magnificent book, but it was not his most popular work. His most popular work was rather the Liber Abaci, his first book that was written in 1202 where he introduced to the Europeans the Arabic numerical and mathematical system. In this book, he also taught the Europeans how to use such mathematical system in accounting and in trading. Most importantly, it is in the Liber Abaci where he introduced the Fibonacci numbers and sequence for which he is best remembered today. The Fibonacci numbers, or sequence, was first used in Liber Abaci as a solution to a problem regarding the ideal population of rabbits. It is a recursive number sequence that starts with 0 and 1, and the succeeding numbers being the sum of the two numbers preceding it. This number sequence efficiently predicted the ideal growth of the population of rabbits. Later, mathematicians and scientist discovered that the Fibonacci number sequence has a lot of other uses aside from just predicting the population growth of rabbits. They have discovered that the Fibonacci sequence, in fact, occurs in many various patterns of nature. What started out as a way of counting rabbits has now found a large number of other uses and applications. And as our present day scholars continue to study about the Fibonacci sequence, more and more uses for it continue to be discovered. Today, there are a variety of applications where the Fibonacci sequence, and its derivatives, are being used. It has found use in many computer programs. A ratio derived from the Fibonacci sequence, called the Golden Mean, has been considered by ancient Greeks to be the ideal aesthetic ratio and is now being widely used by many visual artists in their works. The Fibonacci trading system, which is an efficient way of predicting future trends in the world financial markets, has also become popular to expert traders and aspiring traders as well. Who in the past might have known that such a simple number sequence like the Fibonacci numbers would have a great impact on a lot of things today? Maybe, not even Fibonacci himself. About the Author: To learn more about how you can use Fibonacci to accurately predict major stock market turning points, visit Fibonacci Trading at http:/ / www.fibonacci-trading.com Source: www.isnare.com Permanent Link: http://www.isnare.com/?aid=3374&ca=Finances
Fibonacci - and who he is or how he improve my stock trading profits?
Chris Towland in

It means many different things to different people Fibonacci word. The math is important Fibonacci sequence. Some painters, sculptors and other visual artists, Fibonacci is a principle of art. Traders, businessmen, as well as economists, Fibonacci is a system to predict market trends efficiently. But most of us, the Fibonacci is incredibly complex to find what I want is not pretty. However, Fibonacci Specifically what? What is it used to mean?

Fibonacci, Bonacci son in the sense that, in fact is used in mathematics REONARUDOPISANO Italian businessman who is well known by his nickname. Bonacci, on the other hand, is the nickname of his father, 'nature' or 'good' simple. Fibonacci was born in Italy, he is (now Bejaia), Algeria's father in the Mediterranean port Guilielmo, worked as a consul of the merchants of Pisa Bugia spent most of his childhood years. He passed the rest of the world's Mediterranean Bugia system he learned in Arabic numerals, and will be saved and he learned a lot of practical applications and its system of mathematical Arabic.

The year 1200, he traveled back to Europe and the Fibonacci is finished. His book, he has a number of mathematical skills learned in the Tour of the Mediterranean, he writes. In his work, was published Practica Geometriae, Oh like China, freedom quadratorum, DIMAINA guisa, the Book X that he has to explain to Euclid's Elements, the last one to two, but unfortunately, has already lost We will. His freedom quadratorum, square or reservation, this is probably his most magnificent, in his most popular work was not. Freedom of the most popular work of his abacus is plural, in the year 1202 in Europe when he was in his first book written mathematical system and Arabic numerals. This book, to be used in trading systems and mathematical methods such as accounting, and taught in Europe. Most importantly, it is free in several of his abacus and Fibonacci number, he introduced an array of today is best remembered for.

The number of Fibonacci sequence or rabbit problem in the first free abacus was used as a solution to the ideal population for the plural. This is a recursive sequence code, start with 0 and 1, and the number of replacement, the two leading figures of the total. Predicts that the growth of the population of the rabbit ideal efficient code sequence. Since then, scientists and mathematicians, the Fibonacci sequence is found in many other applications is expected to increase the population of rabbits. They Fibonacci sequence, in fact, many of nature, occurs when a variety of patterns found.

Used as a means to count the rabbit, which began in photos found in many other applications. And we are here for a Fibonacci sequence continue to be discovered, scholars have been studying for many uses. Today, a variety of applications, the Fibonacci sequence, and its derivatives are used. Discovered the use of computer programs. The Fibonacci ratio is derived from the array, which in ancient Greek to be the ratio aesthetic ideal, and is used by many visual artists in their works that are now widely known as the average gold. This is to predict the future trend of world financial markets and Fibonacci trading system is an efficient way, is also popular among traders and aspiring professional traders.

It may know who in the past, today is a simple code sequence as the Fibonacci number will also have a major impact on many? Maybe even his own Fibonacci.

About the Author: To learn more about Fibonacci you can use a major turning point in the stock market to predict exactly how, visit http://www.fibonacci-trading.com in Fibonacci Trading

Satyam has not sought any govt financial help-min

NEW DELHI, Jan 15 (Reuters) - Satyam Computer Services Ltd (SATY.BO) has not sought any financial help from the government and the new board is working on reviving the company, Corporate Affairs Minister Prem Chand Gupta said on Thursday.
"The company has not asked for any package. Three days ago a new board has been appointed. The board consists of eminent persons. They are on the job," Gupta told reporters.
"Now it is for the new board to take a view. They may not need that," Gupta said while elaborating on any government financial help for Satyam (SAY.N).
"If they require funds, they will raise it from banks." (Reporting by Nigam Prusty, Editing by Mark Williams)

UPDATE 1-SABMiller Q3 beer vols dip one pct due to slowdown

* Q3 underlying beer volumes fall one pct
* Consumer demand hit by current global economic slowdown

LONDON, Jan 15 (Reuters) - Brewing giant SABMiller  reported a one percent fall in third-quarter worldwide underlying beer volumes on Thursday, below expectations, with consumer demand hit by the current global economic slowdown.
The volume fall from the London-based brewer of Miller Lite, Peroni and Grolsch for the October-December quarter was below analysts expectations for a 1.3 to 3.0 percent rise and first-half (April-Sept) volumes only marginally ahead.
But the brewer, No 2 in the world after Anheuser-Busch InBev ), said its financial performance in the quarter was in line with its expectations supported by higher beer prices and cost efficiencies.
Analysts said beer volumes were particularly weak in Colombia, Botswana and Russia, but there were strong performances from South Africa, Peru, Ecuador and Romania.
The group which also brews Castle, Snow, and Pilsner Urquell had already cautioned back in November that prospects for its financial year to March 2009 were "increasingly uncertain" due to deteriorating global economic conditions, weakening consumer demand and volatile foreign exchange rates.
Its shares have risen 40 percent in the last three months to close at 10.60 pounds on Wednesday from a low of 758p in late October, but SABMiller now trades on 10.7 times March 2010 earnings and some analysts say it is looking overvalued compared to Heineken  on 10.3 times 2009 earnings.
(Reporting by David Jones)

Home Business & Finance Markets U.S. U.K. Europe Asia Markets News Hot Stocks Bonds News Advances/Declines Most Actives Indices Calendars Deals Small Business Industries Industry Summits Stocks Funds ETFs Currencies Commodities Options Economy Bonds Analyst Research Portfolio News Do More With Reuters RSSRSS Feed Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters UPDATE 2-Delta eyes 2,000 job cuts via early retirement

(Updates with more details, share price)
By Mariko Katsumura
TOKYO, Jan 15 (Reuters) - Delta Air Lines Inc  which took over rival Northwest Airlines last year, said it expects about 2,000 staff to opt for an early retirement programme as it aims to trim capacity as much as 8 percent this year.
The latest move by the world's biggest airline highlights a trend among major airlines fighting for profits as global economic recession weighs on passengers' travel budgets.
In December, Delta, which has about 75,000 staff worldwide, said it would offer employees severance packages, but it didn't say how many jobs it aimed to cut.
"We are expecting a number of around 2,000 because the capacity reduction is going to be around 6 to 8 percent," Delta CEO Richard Anderson told reporters on the sidelines of a media briefing in Tokyo.
"We will know more towards the end of this month, because we gave employees a wide window so that they can make the right decision."
In March 2008, Delta announced 2,000 job cuts and offered voluntary severance packages. More than 4,000 workers took advantage of the packages.
Prior to the merger, Northwest trimmed its staff by about 2,000 workers.
Major airlines, battered by sagging travel demand and losses on fuel hedging costs, have been working to bolster their profitability by cutting capacity and finding new revenue streams. Capacity reductions affect the number of seats for sale and are achieved by cutting flights or replacing large planes with smaller ones.
Japan Airlines (9205.T) plans to cut about 10 percent of its total workforce by end of March while Singapore Airlines (SIAL.SI) is reportedly planning to ask its cargo pilots to take unpaid leave as the carriers face tough operating conditions.
Atlanta-based Delta said last month its domestic capacity would fall 8 percent to 10 percent in 2009, and international capacity would fall 3 percent to 5 percent as travel demand wanes. Systemwise, that would mean a reduction of 6 to 8 percent. [ID:nN021528]
Anderson told reporters on Thursday Delta expects a 10 percent decline in industry revenue this year as the economic slowdown hits travel demand, taking revenue to where it was after the September 11 attacks in 2001.
"But remember, the fuel price is dramatically lower," he said, adding that the carrier expects to save $5 billion this year from the plunge in oil prices since last summer.
"We expect an enormous benefit from lower fuel prices," said Anderson, adding that would help the carrier achieve profitability in 2009.
U.S. crude oil future CLc1 traded around $37 a barrel in New York on Wednesday, down from an all-time high above $147 in July last year.
Delta's shares closed down 7.4 percent at $10.29 in New York on Wednesday. The shares have lost about 10 percent this year. (Editing by Lincoln Feast)

MONEY MARKETS-Dollar spreads

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Dollar funding rates down but spreads widen
* NZ swaps, futures price in deeper rate cuts
By Vidya Ranganathan
SINGAPORE, Jan 15 (Reuters) - Dollar lending rates extended their gradual decline in Asia on Thursday, but swap spreads reversed a week of tightening as economic and banking worries were re-ignited.
In New Zealand, the swap and futures markets were pricing in as much as 200 basis points more of rate cuts after a survey showed business confidence was at a 33-year low in the last quarter of 2008.
The rate on three-month dollar funds in Singapore dropped to 1.09036 percent, barely below 1.0971 percent on Wednesday but still marking its lowest level since early 2004.
But the two-year dollar swap spread, the mark-up of swaps over comparable treasury yields, jumped to 54.5 points, its widest in a week, over concerns about the breakup of Citigroup coming on the heels of awful U.S. jobs and retail sales data.
Other spreads too halted a multi-week narrowing trend. The TED spread, the spread of interbank rates over Treasury bill yields, was steady at 97 basis points at the 3-month tenor, having tightened from a peak of 470 points on Oct. 10.
NEW ZEALAND
Yields have meanwhile fallen sharply this week in New Zealand after the business sentiment report, which was quickly followed by a Standard & Poors warning of a rating downgrade owing to the risks posed by the country's widening external deficit.
The New Zealand Institute of Economic Research survey, released on Tuesday, showed a net 64 percent of firms expected general business conditions to deteriorate in the next six months, while 3 percent of firms expected to reduce prices in the coming quarter.
Analysts said expectations were now for the Reserve Bank of New Zealand to cut its official cash rate by 100 basis points to 4 percent at the end of January, against earlier estimates of a half point easing.
RBC Capital Markets strategist Sue Trinh said the S&P announcement suggested downside risk to her already aggressive forecast for the cash rate to hit 3 percent by mid-2009.
The overnight-indexed swap had discounted that scenario, she said, adding "this doesn't necessarily mean that the market will stop pushing rates lower".
New Zealand bank bill futures <0#NBB:> showed markets pricing in 90-day yields at 3.38 percent, a 100 basis points below actual yields on Thursday. The OIS market showed one-year rate expectations at 3.08 percent.
ANZ-National Bank markets economist Khoon Goh said the survey had caused the across-the-board rally in bills and futures, thereby driving down yields.

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Note from Forex Justice Thursday, 15 May 2008
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