China stimulus package start kicking off

China’s industrial-production growth slowed in the first two months of the year as exports slid at a record pace. Bank lending jumped as the nation’s 4 trillion stimulus began to take effect. Output rose 3.8 percent in January and February from a year earlier, slowing from a 5.7 percent increase in December. New lending quadrupled in February to 1.07 trillion yuan from a year earlier, the central bank said.

The export engine has died, China is in a ‘help themselves’ mode, pump-priming like crazy to increase fixed- asset investment and keep retail spending going.

Premier Wen Jiabao is aiming to achieve 8 percent economic growth this year through tax cuts and spending on roads, railways and energy pipelines. He must contend with rising unemployment, falling house prices and the risk a surge in lending will result in bad debt for banks.

Exports fell a record 25.7 percent in February, consumer prices fell for the first time in six years, and a report today showed retail sales grew at the slowest pace in two years in the first two months of the year.

Spending on real-estate development grew only 1 percent in the first two months from a year earlier as home prices fell.

Among more upbeat indicators, bank lending has responded to calls by the government to support the spending package and the broadest measure of money supply climbed at the fastest pace in more than five years in February.

A more-than-estimated 26.5 percent jump in urban fixed asset investment in January and February was also interpreted by some economists as a sign Wen’s package may help him achieve his 8 percent GDP growth target.

The world is looking to see if China’s growth can support commodity prices and demand from its Asian neighbors. Benchmark steel prices in China surged 46 percent between November and February and iron ore imports the world’s largest buyer of the steelmaking ingredient gained 22 percent last month.

China’s construction equipment sales may jump 20 percent in the second half as orders recover on the government stimulus.

China’s vehicle sales surged 25 percent in February after the government cut taxes on some models. General Motors Corp. has raised its forecast for the auto industry’s sales growth in China this year to as much as 10 percent from less than 3 percent.

Gross domestic product grew 6.8 percent in the fourth quarter, the least since 2001, with industrial production expanding 5.4 percent in November, the weakest pace in almost a decade. The International Monetary Fund expects the economy to grow 6.7 percent this year.

Oil rises as traders covering position

Crude oil rose for the first day in three as traders closed out bets that prices would fall amid speculation OPEC may cut output for a fourth time.

Investors purchased contracts to profit from so-called short sales after crude dropped 7.4 percent yesterday as U.S. inventories showed a bigger-than-expected gain. Algerian Energy Minister Chakib Khelil said yesterday OPEC is likely to reduce output again at this weekend’s meeting. Other ministers have called for the group to halt reductions.

Crude has sold off quite a bit so people are covering their positions. Traders are also buying as insurance if there is an OPEC announcement of a cut. But if OPEC continues saying they want to see how compliance is, we going to see it drift lower.

Crude oil for April delivery rose as much as 83 cents, or 2 percent, to $43.16 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil for April settlement rose as much as 90 cents, or 2.2 percent, to $42.30 a barrel on London’s ICE Futures Europe exchange.

Bill Gates still the richest man

The world has 332 fewer billionaires now than a year ago, according to Forbes magazine. Just as heartbreaking: The world's richest people aren't as rich as they were a year ago. While Bill Gates the chairman of software behemoth Microsoft Corp. has regained the title of world's richest man, worth $40 billion, although Forbes says he lost $18 billion last year.

And New York City Mayor Michael Bloomberg was the only billionaire among the top 20 whose net worth rose during the past year.

But Warren Buffett slipped to second place, after losing $25 billion in the past year due to the decline in value of Berkshire Hathaway stock.

Forbes annual snapshot of the world's wealth found the total number of billionaires fell to 793 from 1,125. Forbes said this marks the first time since 2003 that the number dropped from one year to the next.

Even among those who have managed to remain billionaires, there's been a vast decrease in wealth, the magazine said the total net worth of this year's list is $2.4 trillion, down $2 trillion from $4.4 trillion last year.

The average billionaire is now worth $3 billion, down from $3.9 billion in 2008. (newsday/forbes)

Result Trade 11 march 2009

This my result Trade 11 march 2009

China export slump increase demand for dollar dan yen

The dollar and the yen strengthened after a Chinese government report showed exports slid by a record last month, reviving demand for the two currencies as a refuge from the financial turmoil.

The U.S. and Japanese currencies gained versus higher yielders such as the Australian dollar after China’s customs bureau said the trade surplus narrowed to the least since February 2006, adding to concern the global recession will deepen. The euro ended a three-day gain versus the yen on speculation European Central Bank council member Erkki Liikanen will signal policy makers may cut interest rates further.

The dollar rose to $1.2652 per euro from $1.2682 late in New York yesterday. The U.S. currency traded at 98.47 yen from 98.67 yen. The yen advanced to 124.56 per euro from 125.13 yen.

Australia’s dollar dropped to 64.20 U.S. cents from 64.59 cents late yesterday. China’s trade surplus narrowed to $4.8 billion in February. Exports tumbled 25.7 percent from a year earlier and imports fell 24.1 percent.

Result Trade 10 March 2009

This result trade 10 march 2009

Sterling UP After sharp Anjlok Ads

Movement of sterling exchange rate against U.S. dollars in trade today (10/03) experienced slight improvement. Today sterling yesterday after a sharp decline in line with the process of takeovers by Lloyds Bank of the UK government.

In the trade these days is up sterling 1.3846 dollars at the position. Sterling this position have increased compared to the closing of U.S. exchanges early days earlier in the level of 1.3775 dollars.

In the trade yesterday setrling exchange rates had decreased sharply to the lowest position since 26 January, at the level of 1.3740 dollars.

Analyst Research Vibiz dar Vibiz Consulting sterling rate movements that day is still colored potential retreat. Later on the evening of the data will be released in the UK manufacturing and production is still estimated to be decreasing.

Analyst Research Vibiz from Vibiz Consulting estimates that the sterling exchange rate movements on trade this week will likely be in the range 1.3688 - 1.3950 dollars.