DTN News - FINANCIAL NEWS: Global Markets Jump After Greek Vote Eases Fears

DTN News - FINANCIAL NEWS: Global Markets Jump After Greek Vote Eases Fears
*Global markets jump as Angela Merkel tells election victor Antonis Samaras she is confident Greece will abide by bailout pledges, and world leaders gather in Mexico for the G20.
Source: DTN News - - This article compiled by Roger Smith from reliable sources The Globe & Mail
(NSI News Source Info) TORONTO, Canada - June 18, 2012: Asian stock markets were up sharply Monday after elections in Greece eased fears of global financial turmoil, but analysts warned that the economic crisis shaking the 17 nations that use the euro was far from over. Stock markets rejoiced at the narrow victory by Greek conservatives who favour upholding an austerity program that their recession-mired country entered into in exchange for a financial bailout from international lenders.

Tokyo’s benchmark Nikkei 225 index was up 1.9 per cent at 8,731.57. Hong Kong’s Hang Seng rose 1.6 per cent to 19,548.83. Australia’s S&P/ASX200 added 1.8 per cent to 4,129.20 and South Korea’s Kospi rose 2.1 per cent at 1,897.62.

On Wall Street, Dow Jones industrial average futures were up 62 points on Sunday night, suggesting the market could open higher Monday. The euro rose to $1.2700 (U.S.) from $1.2637 late Friday in New York. The U.S. dollar rose to 79.22 yen from 78.71 yen.

The New Zealand and Australian dollars were also higher. Both currencies typically rise when investors have more appetite for risk. The Australian dollar was trading above $1.01 and the New Zealand dollar was trading above 79 cents.

Masahiro Yamaguchi, a manager at Mizuho Securities Co. in Tokyo, said the perk in Tokyo stocks came from a sense of relief that the worst had been avoided in Greece.

“There’s is a rebound simply because the risks are now reduced,” he said. “There’s a sense that, at least, things are okay for now. The solution is far from basic.”

On Sunday, pro-bailout parties in Greece won enough seats to form a coalition government.

Greece has been dependent on rescue loans to operate since May 2010, after it was shut out of international markets following years of profligate spending and falsifying financial data.

The country is mired in a fifth year of recession, with unemployment spiralling above 22 per cent and tens of thousands of businesses shutting down.

Greece had to agree to austerity measures to get its bailout. Measures included deep spending cuts on everything from health care to education and infrastructure as well as tax hikes and cuts in salaries and pensions. Anger at the measures has sent Greeks into the streets in frequent strikes and protests, some of them violent.

Some analysts said the election results could overstate the willingness of Greeks to embrace austerity.

“Overall, the Greek election result, while welcome, does not imply that the Greek people are embracing the tough reforms tied to the bailout package. It merely meant that fear overruled anger,” analysts at DBS Bank Ltd. in Singapore wrote in a market commentary.

No one is sure how bad a Greek exit from the euro would have been. Greece would almost have certainly defaulted on its debt, triggering losses for European banks that own its government bonds. The outcome of the election, however tenuous, gives Greece a chance to breathe life into its moribund economy.

“It will be tough, but Greece will survive because I think the tourist industry and the agriculture sector will help it recover from its dire straits right now,” said Francis Lun, managing director of Lyncean Holdings in Hong Kong.

Japanese vehicle makers soared on hopes that Europe, a huge export market, would avoid deepening economic turbulence. Mazda Motor Corp. jumped 4 per cent and Yamaha Motor Co. gained 4.5 per cent.

Steelmakers and shipyards also gained ground. South Korea’s top shipbuilder, Hyundai Heavy Industries, rose 3.1 per cent. Japan’s JFE Holdings Inc. added 4 per cent and Kobe Steel rose 3.3 per cent.

Samsonite International SA rebounded 5.8 per cent after it issued a statement saying its luggage is safe, following a Hong Kong Consumer Council report last week that found carcinogens in the handles of some models, which caused its shares to dive 16 per cent.

But stock market operator Hong Kong Exchanges and Clearing Ltd. fell 2.8 per cent as investors worried a $2.2-billion bid announced last week for the London Metal Exchange was too high.

Benchmark oil for July delivery was up 91 cents to $84.94 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 12 cents to end at $84.03 a barrel in New York on Friday.

  DTN STOCK MARKET


*Link for This article compiled by Roger Smith from reliable sources The Globe & Mail
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DTN News - LOCKHEED MARTIN DEFENSE NEWS: F-35 Costs ~ Chorus Of Dismay Over $1,000Bn Tag

DTN News - LOCKHEED MARTIN DEFENSE NEWS: F-35 Costs ~ Chorus Of Dismay Over $1,000Bn Tag

Source: DTN News - - This article compiled by Roger Smith from reliable sources By Jeremy Lemer - FT.com

(NSI News Source Info) TORONTO, Canada - June 20, 2011: For years the F-35 programme, managed by Lockheed Martin, has been an easy target for criticism. Development and production costs for the combat jet have spiralled and delivery schedules set in stone one moment have been ripped up the next.

Since the start of 2011, though, Lockheed had adopted a more positive tone, arguing that efforts to reshape what is the Pentagon’s largest procurement project were finally paying off in better test results and improved performance.

But in recent weeks the company has come under pressure over a new issue. A fresh estimate of the total life cycle costs – the money required to operate and sustain the aircraft – has triggered a wave of angst among politicians and Pentagon officials.

According to the latest report on the F-35 programme prepared by the Pentagon, maintaining the fleet of jets through their entire working lives will cost more than $1,000bn, a number that several influential congressmen have described as “jaw-dropping” and “unsustainable”.

“If we live the estimates, we cannot afford to pay that much,” Ashton Carter, the Pentagon’s top procurement official, told a senate hearing in May, adding that “our objective is to make sure that those estimates do not come true”.

Vice-Admiral David Venlet, who manages the F-35 for the Department of Defence, has said that his unit will prioritise refining and reducing estimated sustainment costs in 2011 – in the same way it focused on fixing the development and manufacturing plans for the jet in 2010.

All of that could spell trouble for an aircraft that was pitched as a cost effective way to upgrade the US fleet. Lower maintenance and support costs were key to that goal as they regularly add up to 70 per cent of the total bill for owning a weapons system.

For years Lockheed insisted that the running costs of the aircraft would be less than equivalents such as the F-16. But those numbers have fallen by the wayside. The Pentagon now expects the F-35 to cost about 33 per cent more than the F-16s it aims to replace.

Lockheed has pushed back against those numbers, describing them as “sensationalised”. Executives point out that the $1,000bn figure is based on operating 2,443 aircraft over 52 years, from more than 50 bases and include adjustments for inflation and fuel costs.

“It is a big model that has come up with a big number,” Bob Stevens, chief executive of Lockheed, said in May. “But when you come up with a big number like that … there are sufficiently large opportunities to reduce that number by making streamlining decisions along the way.

“How much do the spares cost? How many aircraft are you buying? How many spares are you buying? How many bases are going to operate it? What is the staffing at the bases? Is the staffing … government – or contractor – supported? And really, on and on.”

For Lockheed Martin, the stakes are high. The F-35 is its single largest programme and will be the key driver of its revenues and profits over the next 30 years.

Still, Lockheed says that it will not be able to produce its own counter-estimates until about 2015, when it has collected about 200,000 flight hours worth of data, which will feed into “more realistic” assumptions.

In the meantime patience is wearing thin. Buying the F-35 was supposed to cost $233bn, or an average of $69m each, with delivery to the services starting in 2008. But cost estimates have soared to about $385bn, or $133m each, and the service entry date remains unclear.

Earlier in the year the Pentagon announced a new plan for the combat jet, adding extra funding and test aircraft to the development phase, slowing the speed at which production ramps up and placing one variant on “probation”.

Bill Sweetman, editor in chief for Defense Technology International, who has followed the F-35 for years, argues that whatever the eventual total, if sustainment costs do not come down it could spell trouble for the programme.

“These sorts of figures make the service chiefs go weak at the knees because they will have to reduce numbers to stay within budget, as there is no more money,” says Mr Sweetman. But if numbers are cut then costs per aircraft will inevitably spiral.

“People are waking up. This isn’t just another defence acquisition,” he says. “The $1,000bn dollar figure is an indicator that you have a spent a fortune and there are a lot of sunk costs but that is not that much compared to what you will pay.”

Senator John McCain concurs. “In my view, the program is now at a watershed moment,” he said in May. “With austere defence budgets for as far as the eye can see, the [F-35] programme must show now it can deliver [F-35] aircraft as needed on time and on budget.”

Both Congress and the Pentagon have limited options. “There are not good alternatives to the [F-35] for either our services or our international partners,” Mr Carter said bluntly last month. “We looked … We want the aeroplane.”

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*Link for This article compiled by Roger Smith from reliable sources By Jeremy Lemer - FT.com

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DTN News: Japan Revises Its Role In The China Market

DTN News: Japan Revises Its Role In The China Market

Source: DTN News / Financial Times

(NSI News Source Info) TOKYO, Japan - July 5, 2010: For more than two decades, much of the work of the Shanghai office of Japan’s Osaka Prefecture was helping small Japanese parts suppliers join the shift of manufacturing capacity from their high-cost homeland to far cheaper China.

These days staff spend more time helping small to medium enterprises make contact with Chinese customers so they can make up for a dearth of Japanese domestic demand, says office chief representative Katsuaki Tanaka.

“In the past, China was called the world’s workshop – now it’s the world’s market,” Mr Tanaka says. “And (Japanese) companies of all types want to operate in this market.”

Shifting demands on Mr Tanaka’s time are part of a historic broadening and deepening of the economic relationship between East Asia’s pre-eminent powers.

Even the most cautious Japanese companies are keenly aware of China’s potential as a source of sales, a message highlighted by Beijing’s success in mustering its financial resources to shrug off the effects of the global economic slowdown. The growing sophistication of Chinese manufacturing and the maturity of Japanese-invested operations means industrial supply chains are ever more tightly enmeshed. China is no longer just a cheap place to do final assembly of Japanese products for shipment elsewhere.

“Previously, parts and intermediate products came in and finished goods were exported to Japan but now the flow goes both ways,” says Yasuo Onishi, president of the Shanghai office of the Japan External Trade Organisation.

China looks likely to surpass Japan as the world’s second-largest economy in market dollar terms this year. Chinese per capita incomes remain low but plenty of urban consumers are able to sample high-value goods and services.

Japanese businesses from restaurants and resorts, to pharmaceuticals providers and sake brewers look to tap into Chinese growth. New investment in Shanghai is mostly in the service sector, says Mr Onishi.

Japan’s advanced environmental technology means it could well play a central role in China’s efforts to cut pollution and greenhouse gas emissions.

But while China replaced the US as Japan’s biggest export market last year, Japanese groups face problems. Companies from Japan operating in China are keen to expand but the proportion mak ing a profit there has fallen in the past 50 years to just above 50 per cent in 2009, says a Jetro survey. Japanese businesses in China appear vulnerable to labour unrest and their technological edge could be eroded by Beijing’s demands that they share secrets with local partners.

Still, the rise of cash-rich Chinese companies eager to expand abroad has created another role for Osaka Prefecture’s Shanghai office. “We are trying to get Chinese enterprises to invest in Osaka,” notes Mr Tanaka.

DTN News: Financial News June 9, 2010 ~ U.S Debt To Rise To $19.6 Trillion By 2015

DTN News: Financial News June 9, 2010 ~ U.S Debt To Rise To $19.6 Trillion By 2015 **Analysis: It is imperative that US economy should remain stable and steady. Any down trend effect would impact world wide that has been witnessed a year ago on US mortgage crisis which created a global financial crisis that hit the world in 2008, last updated June 2, 2009 with closure of thousands of multiple factories in China. Financial crises directly result in a loss of paper wealth, they do not directly result in changes in the real economy unless a recession or depression follows. Many economists have offered theories about how financial crises develop and how they could be prevented. There is little consensus, however, and financial crises are still a regular occurrence around the world. DTN News remain convinced that global economic integration benefited all nations respectively. By Roger Smith DTN News Defense-Technology News

Source: DTN News / Reuters Reporting by Donna Smith; Editing by Kenneth Barry

(NSI News Source Info) WASHINGTON - June 9, 2010: The U.S. debt will top $13.6 trillion this year and climb to an estimated $19.6 trillion by 2015, according to a Treasury Department report to Congress. The report that was sent to lawmakers Friday night with no fanfare said the ratio of debt to the gross domestic product would rise to 102 percent by 2015 from 93 percent this year. "The president's economic experts say a 1 percent increase in GDP can create almost 1 million jobs, and that 1 percent is what experts think we are losing because of the debt's massive drag on our economy," said Republican Representative Dave Camp, who publicized the report. He was referring to recent testimony by University of Maryland Professor Carmen Reinhart to the bipartisan fiscal commission, which was created by President Barack Obama to recommend ways to reduce the deficit, which said debt topping 90 percent of GDP could slow economic growth. The U.S. debt has grown rapidly with the economic downturn and government spending for the Wall Street bailout, the wars in Afghanistan and Iraq and the economic stimulus. The rising debt is contributing to voter unrest ahead of the November congressional elections in which Republicans hope to regain control of Congress. The total U.S. debt includes obligations to the Social Security retirement program and other government trust funds. The amount of debt held by investors, which include China and other countries as well as individuals and pension funds, will rise to an estimated $9.1 trillion this year from $7.5 trillion last year. By 2015 the net public debt will rise to an estimated $14 trillion, with a ratio to GDP of 73 percent, the Treasury report said.

(Reporting by Donna Smith; Editing by Kenneth Barry)

Related News:

*U.S. Debt to Rise to $19.6 Trillion by 2015 - ABC News

*US debt to rise to $19.6 tn by 2015-International Business-News

*U.S debt to rise to $19.6 trillion by 2015 Reuters

*U.S. debt to rise to $19.6 trillion by 2015‎ - Weasel Zippers (blog)

DTN News: Stocks Drop After Euro Slumps, Dow Falls Below 10K / Europe's Markets Suffer New Falls On Debt Worries

DTN News: Stocks Drop After Euro Slumps, Dow Falls Below 10K / Europe's Markets Suffer New Falls On Debt Worries

*Stocks tumble on worries about debt in Europe, tensions on Korean peninsula; Dow below 10K

*Europe's markets suffer new falls on debt worries....By BBC News

* DTN Stock Market....Comprehensive Daily Related News on The Stock Markets of Today

* DTN Financial News....Comprehensive Daily News on The Financial World of Today

Source: DTN News / AP Stephen Bernard and Tim Paradis, AP Business Writers,

(NSI News Source Info) NEW YORK - May 25, 2010: The Dow Jones industrials plunged below 10,000 Tuesday after traders dumped stocks on expectations that the world economy will weaken in the coming months. The Dow fell about 190 points in afternoon trading. It has fallen about 1,330 points, or nearly 12 percent, from its recent high of 11,205, reached April 26. The Dow and broader stock indexes all fell more than 1 percent. Investors also exited the euro and commodities including oil and again sought safety in Treasurys. That drove interest rates lower. The benchmark 10-year note's yield fell to its lowest level since April 2009. Investors were anxious about problems beyond the financial crisis in Europe. Tensions between North and South Korea reminded traders that political issues can be a threat to economic growth. And analysts said that even the still unresolved oil spill in the Gulf of Mexico contributed to investors' foul mood. Still, uncertainty over the impact that Europe's debt problems could have on the rest of the world in the coming months remains the biggest driver of investor pessimism, said Jonathan Corpina, president of Meridian Equity Partners. The largest concern is that painful austerity measures that European governments are being forced to take could lead to a prolonged economic slump in the region and cause another global recession. And investors fear that even those measures won't contain the crisis, Corpina said. "It seems like the Europeans are playing 'tag, you're it ' -- first it was Greece and now it's maybe Spain or Portugal," said Corpina, a New York Stock Exchange floor trader. "We know someone else is next. The problem is that it seems like every plan in place isn't going to satisfy the needs." A warning of hard times came from Britain's Queen Elizabeth, who opened the new session of Parliament with a speech delivered on behalf of Britain's new coalition government. The queen, said there would be budget cuts because "the first priority is to reduce the deficit and restore economic growth." Other European countries are imposing budget cuts as well, trying to control their debts. Investors are concerned that these steps will stifle economic growth, and that other countries including the U.S. will inevitably see their own growth stunted. European Union leaders warned Tuesday that the continent's economy would stagnate unless governments make major reforms to promote growth. The problem is, though, that large debts in some countries make it difficult to implement stimulus measures to rally economies. Traders have been selling the euro heavily in recent weeks because of uneasiness over whether steep budget cuts in countries like Greece, Spain and Portugal will drag down an economic recovery on the continent. Italy was set to become the latest European nation to announce spending cuts to reduce its deficit. The euro approached a four-year low, which it set last week. The euro dropped to $1.2285, close to the low of $1.2146 it touched last week. Investors are not focusing on current signs of growth, but are instead trying to gauge where the global economy will be later this year. Pessimism, particularly about Europe, has replaced a hopeful tone among traders early in the year. "Market participants feel like they're walking on eggshells," said Oliver Pursche, executive vice president at Gary Goldberg Financial Services in Suffern, N.Y. "Every small piece of potentially bad news is being exaggerated and mentally being fast-forwarded to the worst-case scenario." Markets were also hurt by reports that North Korean leader Kim Jong Il ordered his military to combat alert because of rising tensions on the Korean peninsula. North Korea also said it would cease communication and relations with Seoul. South Korea has said North Korea was responsible for the sinking of a South Korean warship two months ago. Major indexes in Japan and Hong Kong fell more than 3 percent. Meanwhile, the monthlong effort to cap the Gulf oil well that has spewed millions of gallons of oil is also rattling investors, Corpina said. Oil is now starting to come ashore across a 150-mile swath of the Gulf Coast, endangering wildlife and livelihoods in commercial fishing and tourism. "The worry is that the situation is getting worse and there's no real fix," he said. "First we were just talking about the oil industry being affected. Now it's the environment and fishing industries. Next we'll be talking about the hotel and leisure industries." A disappointing report on U.S. home prices added to the downcast mood. The Standard & Poor's/Case-Shiller 20-city home price index fell 0.5 percent in March from February, a sign that the housing market remains weak even as mortgage rates are still near historic lows. A better-than-expected report on consumer confidence didn't stop the selling. The Conference Board's consumer confidence index rose for the third straight month, climbing to 63.3 in May from 57.7 last month. The Dow fell 190.07, or 1.9 percent, to 9,876.50 by early afternoon. Only one of the 30 Dow stocks, Home Depot Inc., rose, and that was just by pennies. The Standard & Poor's 500 index fell 20.13, or 1.9 percent, to 1,053.52. The index hit its lowest level of the year in early trading, dropping to 1,040.78. The Nasdaq composite index fell 42.75, or 1.9 percent, to 2,170.80. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.14 percent from 3.20 percent late Monday. It fell as low as 3.07 percent, its lowest level since April 2009. The yield on the 30-year bond briefly fell below 4 percent for the first time since October, before rising slightly. It is down to 4.04 percent from 4.08 percent late Monday. Crude oil fell $2.16 to $68.05 a barrel on the New York Mercantile Exchange, in part a reflection of expectations that weak economic growth will curtail demand for fuel. Top Stories *Stocks Sink Amid Global Economy Woes; Dow Below 10,000 - AP *Bullard: Europe's woes unlikely to spur recession - AP *Oil sinks as stock markets, euro fall - AP *Falling home prices raise fears of new bottom - AP

*Europe's markets suffer new falls on debt worries....By BBC News *DTN Stock Market....Comprehensive Daily Related News on The Stock Markets of Today *DTN Financial News....Comprehensive Daily News on The Financial World of Today

DTN News: Financial News May 10, 2010 ~ EU Sets Up Massive Euro Defense Against Markets

DTN News: Financial News May 10, 2010 ~ EU Sets Up Massive Euro Defense Against Markets Source: DTN News / By RAF CASERT and ELENA BECATOROS (AP) (NSI News Source Info) BRUSSELS, Belgium - May 10, 2010: The European Union and the International Monetary Fund have pledged nearly $1 trillion to defend the embattled euro, hoping to turn back relentless attacks on the eurozone's weakest nations and allow the continent to resume its hesitant economic recovery. Central banks around the world joined the coordinated effort to prevent Europe's debt crisis from derailing the global economy's rebound from recession. The U.S. Federal Reserve reopened a program to ship billions of U.S. dollars overseas in a bid to pump more short-term cash into the financial system and make sure banks have the dollars they need. Other central banks, including the Bank of Canada, the Bank of England, the European Central Bank, the Swiss National Bank, and the Bank of Japan also are involved in the temporary dollar swap plan. Separately, the ECB jumped into the bond market, saying it is ready to buy eurozone bonds to shore up liquidity in "dysfunctional" markets. Markets, rattled for weeks by the prospect Greece would default on its mountain of debt, heaved a sigh of relief. The euro climbed to $1.2963, up from the 14-month low of $1.2523 it hit late last week. Japan's Nikkei 225 stock average rose 1.3 percent to 10,499.25 and Hong Kong's Hang Seng index climed 0.8 percent to 20,080.18. Futures suggested Wall Street would welcome the euro defense. Dow futures jumped 233 points, or 2.3 percent, to 10,568, and S&P and Nasdaq futures were both up more than 2.7 percent. Under the three-year plan, the EU Commission will make euros60 billion ($75 billion) available while countries from the 16-nation eurozone would promise backing for euros440 billion ($570 billion). The IMF would contribute an additional sum of at least half of the EU's total contribution, or euros250 billion. "We shall defend the euro whatever it takes," EU Commissioner Olli Rehn said after an 11 hour-meeting of EU finance ministers that capped a hectic week of chaotic sparring between panicked governments and aggressive markets. Officials hope the massive sums will deter currency speculators from betting on a euro collapse after political posturing and soothing words failed to convince investors that Greece's financial implosion could be contained. Markets had battered the euro and Greek government bonds even as EU leaders insisted for days that Greece's problems were a unique combination of bad management, free spending and statistical cheating that doesn't apply to other euro-zone nations. In the end, even longtime skeptic Germany realized Europe had to show the money after financial attacks on Greece's debt seemed poised to spread to other weak European nations such as Portugal and Spain. Fear of default led to investors demanding high interest rates that Greece could not pay, forcing it to seek a bailout. Many feared market skepticism would make Portugal and Spain pay more and more to borrow, worsening their plight. "We now see herd behaviors in the markets that are really pack behaviors, wolf pack behaviors," Swedish Finance Minister Anders Borg said Sunday. If unchecked, "they will tear the weaker countries apart. So it is very important that we now make progress." Spain and Portugal have committed to "take significant additional consolidation measures in 2010 and 2011," a statement from EU finance ministers said. The two countries will present them to EU finance ministers at their meeting on May 18. "We are facing such exceptional circumstances today and the mechanism will stay in place as long as needed to safeguard financial stability," the ministers said. Some eurozone nations, meanwhile, blamed the fragile governments and a lack of European cooperation for the crisis. "I'm against putting all the blame on speculation," said Austrian Finance Minister Josef Proell. "Speculation is only successful against countries that have mismanaged their finances for years." Seperately, eurozone leaders on Saturday gave final approval for a euros80 billion ($100 billion) rescue package of loans to Greece for the next three years to stave off default. The International Monetary Fund also approved its part of the rescue package — euros30 billion ($40 billion) of loans — in Washington Sunday. The Fed's move to back the euro defense plan reopens a program put in place during the 2008 global financial crisis under which dollars are shipped overseas through the foreign central banks. In turn, these central banks can lend the dollars out to banks in their home countries that are in need of dollar funding. Swap agreements generally allow one central bank to borrow a currency from another, offering an equivalent amount of its own as collateral. The Fed said action is being taken "in response to the reemergence of strains in U.S. dollar short-term funding markets in Europe" and to "prevent the spread of strains to other markets and financial centers." A so-called "swap" line with the Bank of Canada provides up to $30 billion. Figures weren't provided for the other central banks. AP Business Writer Emma Vandore in Brussels, and Associated Press writers Elaine Ganley in Paris, Matt Moore in Frankfurt, Daniel Wagner and AP Business Writer Jeannine Aversa in Washington contributed to this report.

DTN News: Financial News March 26, 2010 ~ Markets Mixed After Greece Rescue Deal

DTN News: Financial News March 26, 2010 ~ Markets Mixed After Greece Rescue Deal Source: DTN News / AFP (NSI News Source Info) LONDON, UK - March 26, 2010: The euro firmed on Friday but stock markets fell in a mixed and cautious reaction to an unprecedented EU plan to rescue Greece from its debt crisis. The European single currency climbed away from 10-month lows against the dollar reached on Thursday after the 16 eurozone countries agreed to offer Greece loans in combination with the International Monetary Fund. That ended a policy spat between France and Germany that had been weighing heavily on the European currency in recent weeks as they tried to come up with a plan to help Athens put its public finances in order. The euro was at 1.3381 dollars in early London deals, up from 1.3277 dollars in New York late on Thursday. Related article:ECB chief supports EU's Greek rescue plan "The positive aspect of the (Greece) agreement is that following the long struggle, at least some form of agreement has now been reached," said Commerzbank analyst Ulrich Leuchtmann. "That means that the dive in the euro against the dollar has been stopped for the time being. The agreement is however hardly reason for a significant correction." Despite the relief brought by the agreement in Brussels, analysts said the euro would likely remain under pressure as market attention turns to other weak eurozone members such as Portugal, Ireland and Spain who face similar problems to Greece. "The combination of the fact that Greece will have to borrow money only at market rates, ongoing worries about other EU countries' fiscal problems and ECB President (Jean-Claude) Trichet putting somewhat of a dampener on sentiment by criticizing IMF involvement in the deal, has kept the euro under pressure," Credit Agricole analyst Mitul Kotecha said on Friday. "Although Trichet later reversed his comments, the damage was already done and any relief to euro/dollar will be short-lived." European stocks markets meanwhile fell early Friday, with Frankfurt's DAX 30 index shedding 0.40 percent to 6,108.57 points in Germany, the eurozone's biggest economy. The Paris CAC 40 lost 0.36 percent to 3,985.92 points and London's FTSE 100 index slid 0.39 percent to 5,705.32. On Thursday, the FTSE closed at its highest level for 21 months, at 5,727.65 points following robust British retail sales data. Related article:EU's economic 'government' lost in translation "Markets have given a lukewarm response to the EU rescue package," said ODL Securities stock markets analyst Owen Ireland. "The negative momentum from a poor finish to the US markets (on Thursday) may be running over into today's session, so it will be the US GDP figures that will confirm today's direction," he added. Immediately after the Greece deal was announced, the euro hit a fresh 10-month low of 1.3268 dollars, with investors concerned by comments from ECB head Jean-Claude Trichet, who said the plan to offer Greece loans involving the IMF was "very, very bad." The single currency then recovered after Trichet clarified his comments and welcomed the Greek deal, including its IMF component. Trichet hailed the EU plan to offer financial relief to Greece jointly with the IMF as both "workable" and "courageous." "I'm happy that the heads of state and government could work out a solution to take coordinated action if needed," Trichet said after EU leaders approved the unprecedented EU-IMF tie-up to offer loans to Greece as "a last resort." "It's a workable solution," Trichet said, adding that it had also been a "courageous one." He added that in light of Greek efforts to reduce its ballooning deficit and debt, "I am confident the mechanism worked out ... will not need to be activated and that Greece will regain the confidence of the market."

DTN News: JAL Says Still Neutral On Delta Or American Tie-Up ~ Financial News

DTN News: JAL Says Still Neutral On Delta Or American Tie-Up ~ Financial News * JAL wants to make decision on Delta/American soon-president

* New management's first briefing since bankruptcy filing

*Source: DTN News / Reuters (NSI News Source Info) TOKYO, Japan - February 1, 2010: The new president of Japan Airlines Corp (9205.T) said the bankrupt carrier has not yet decided whether to stick with partner American Airlines (AMR.N) or defect to Delta Air Lines (DAL.N) and its SkyTeam group. "We are still neutral," Masaru Onishi, also the carrier's new chief operating officer, told a news conference on Monday, a little less than two weeks after it filed for bankruptcy. Onishi is part of a new management team led by chief executive Kazuo Inamori, the 77-year-old founder of electronics maker Kyocera Corp (6971.T). One of the new management's first major decisions will be whether to stay with Oneworld alliance partner American Airlines (AMR.N) or switch to rival Delta. Both U.S. carriers have been wooing JAL aggressively with offers of financial aid. JAL, Asia's largest carrier by revenues, filed for bankruptcy protection last month with about $25 billion in debt, and vowed to slash about a third of its work force and cut unprofitable routes as part of a state-supported restructuring plan. Some Japanese media had previously reported that JAL had already made a decision to end its alliance with American and join hands with Delta.

(Reporting by Nobuhiro Kubo; Editing by Michael Watson)

DTN News: Financial News TODAY January 30, 2010 ~ FACTBOX - Five Political Risks To Watch In Japan

DTN News: Financial News TODAY January 30, 2010 ~ FACTBOX - Five Political Risks To Watch In Japan *Source: DTN News / Reuters By Linda Sieg (NSI News Source Info) TOKYO, Japan - January 30, 2010: Japan's ballooning public debt is stoking market concern as the government of Prime Minister Yukio Hatoyama struggles to give the economy the stimulus it needs without compromising the need for fiscal prudence. Standard and Poor's cut its outlook for Japan's sovereign credit rating to negative this week, and with some foreign hedge funds betting that the country's debt burden will cause more problems in years to come, spreads on sovereign credit default swaps JPGV5YUSAC=R widened to 90 basis points -- the most in 10 months -- before falling back a bit. Following is a summary of key political risks to watch: * FISCAL DILEMMA The government is trapped between the need to prevent the economy from slipping back into recession and Japan's huge public debt, already nearing 200 percent of GDP. Sliding tax revenues mean government income now covers less than half of spending. Efforts to cut budget waste to find funds for new programmes have so far fallen short of target despite the Democrats' pledge to boost growth without issuing much more debt. The appointment of Naoto Kan as finance minister this month raised doubts about government resolve to hold down spending given his concern about deflation and the recovery, but Kan has also said fiscal discipline is needed. Standard Poor's on Tuesday cut its outlook on Japan's AA long-term sovereign debt rating to negative, saying the policy bind could lead to a downgrade unless measures were taken to stem fiscal and deflationary pressure. The sovereign credit default swap spread widened on the news, but the impact on JGBs <0#jpbmk=> was limited because the vast majority are held by domestic investors. By making JGBs less attractive to foreigners, the downgrade will be a long-term drag on JGB prices, however, analysts said. What to watch: -- The government aims to release a mid-term fiscal reform plan by May or June and to unveil a growth strategy in June. -- Data showing a risk of persistent deflation could prompt calls for extra stimulus ahead of the upper house poll, although the government would be sensitive to any rises in bond yields. -- A political funding scandal embroiling Democratic Party Secretary-General Ichiro Ozawa could also tempt the government to spend more to woo voters turned off by the affair. * PRESSURE ON CENTRAL BANK? The Bank of Japan said this week deflation would be milder than previously forecast but left the door open to further easing to support a fragile economic recovery. December data showed the biggest drop in consumer prices on record. Kan, a vocal BOJ critic, said this week the BOJ could do more to fight deflation. The central bank could face extra pressure if the economy falters ahead of the mid-year upper house poll. The government criticised the BOJ for being too rosy on the economy when the bank upgraded its assessment in November. The BOJ later caved in to pressure and last month adopted a new fund supply operation at which it offers 10 trillion yen ($111 billion) in three-months loans to banks at 0.1 percent. It then declared that it wouldn't tolerate deflation. The BOJ is independent by law but is required to work closely with the government to align policy. Tension over strategy raise the risks for markets, making policy harder to forecast. What to watch: -- Persistent deflation could pressure the BOJ to buy more government bonds or expand the new fund supply operation. Increased JGB purchases would push up bond prices and so bring down long-term interest rates. -- Government rhetoric on the role of the central bank will give clues on how much influence the Democrats will seek to have. * YEN INTERVENTION Finance Minister Kan's early comments have led some analysts to argue the government will be less tolerant of a rising yen, although others say intervention is highly unlikely for now. Kan jolted markets in his first news briefing as finance chief, saying he hoped the yen would weaken further and that many Japanese firms were in favour of dollar/yen around 95 yen JPY=. He later toned down those comments, saying currency levels should be determined by markets, but many market participants still see Kan as favouring a weaker yen in contrast with his predecessor. What to watch: -- Attention will be on comments by government officials regarding possible currency intervention. Picking a level that would trigger intervention is tricky. Intervening could also be difficult at a time when the Group of Seven is encouraging flexibility in foreign exchange rates, particularly in China. -- Another way of countering a surge in yen strength could be for the Bank of Japan to take more easing steps as it did in December after the yen hit a 14-year high on the dollar. Possible steps could be increasing the amount of a new fixed-rate funding operation or extending its maturity; or increasing JGB issuance. * FUNDING SCANDALS The funding scandal ensnaring Ozawa is threatening the Democratic Party's chances of a mid-year election win that would clear the way for smoother policymaking. [ID:nTOE60L015] Ozawa is credited by many with engineering the Democrats' big election win last August and his skills are thought vital to winning the mid-year poll, passing laws and deciding policies. The Democrats need to win an outright majority in the upper house election to reduce the clout of two small parties whose cooperation is currently needed to enact legislation smoothly. A ruling bloc loss would create a parliamentary deadlock. Hatoyama is beset by criticism over his own funding scandal, though fewer voters think he should resign, in contrast to the majority who want Ozawa to step down. [ID:nTOE60J03B] What to watch: -- Further falls in voter support for the Democrats could pressure Ozawa to resign; Hatoyama could also face calls to quit. -- The scandal could delay passage of a $1 trillion budget for the year from April 1, though opposition parties risk a public backlash if they stall amid the weak economy. * U.S. BASE DISPUTE Hatoyama is in an increasingly tight spot over a dispute with Washington over a plan to relocate a U.S. Marine base to a less crowded part of Okinawa after an anti-base candidate's win in a local mayoral election on Jan. 24. The dispute, which Hatoyama has vowed to settle by the end of May, has frayed ties with ally Washington and fanned doubts among voters about Hatoyama's leadership skills.

Some analysts say he may have to quit if he fails to resolve the row. What to watch: -- U.S. Assistant Secretary of State Kurt Campbell is expected to raise the issue when he visits next week. -- Attention will be on comments by Hatoyama and other cabinet ministers in the run-up to May, when the prime minister may travel to Washington to meet U.S. President Barack Obama. (Additional reporting by Charlotte Cooper; Editing by Andrew Marshall)

DTN News: Financial News TODAY January 19, 2010 ~ Japan Airlines Files For $25 Billion Bankruptcy

DTN News: Financial News TODAY January 19, 2010 ~ Japan Airlines Files For $25 Billion Bankruptcy *Source: DTN News / Reuters By Mayumi Negishi and Mariko Katsumura (NSI News Source Info) TOKYO, Japan - January 19, 2010: Japan Airlines Corp (JAL) (Tokyo:9205.T - News) filed for bankruptcy protection on Tuesday owing more than $25 billion, and vowed to slash 15,700 jobs and unprofitable routes as it tries to survive volatile fuel costs and fickle flyers.Japan Airlines President Haruka Nishimatsu, right, accompanied by Hiroshige Nishizawa, president of Enterprise Turnaround Initiative Corp. , speaks during a press conference in Tokyo, Japan, Tuesday, Jan. 19, 2010 shortly after Japan's flagship carrier filed for bankruptcy in one of the nation's largest corporate failures. Nishimatsu resigned, bowing deeply as he apologized for the company's troubles. A Japan Airlines Corp. (JAL)'s flag flies at the company's headquarters on January 19, 2010 in Tokyo, Japan. Asia's largest carrier JAL filed for bankruptcy protection and is put under the control of the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC) for management reconstruction. JAL, Asia's largest airline by revenues and an ambassador for Japan across the world, will remain in the skies thanks to nearly 1 trillion yen ($11 billion) in state-backed support and faces a sweeping restructuring under a new board and management. Shareholders will be wiped out and creditors will forgive 730 billion yen in debt, with banks waiving 350 billion yen in loans, as part of the deal with the fund, the Enterprise Turnaround Initiative Corp of Japan (ETIC). "JAL lacked strong governance and was unable to keep up with changing times," ETIC Executive Director Akitoshi Nakamura told a packed news conference. "In a sense JAL encapsulates what is a typical problem and hurdle for Japan as a whole." Bankruptcy will only be the beginning for an airline that once symbolized "Japan Inc's" international aspirations and now faces depleted capital, rising fuel prices and shrinking passenger numbers -- all on top of hefty restructuring costs. JAL, which has now been bailed out by the Japanese government four times in the past 10 years, will replace many of its older and less fuel-efficient planes. It also faces tough decisions about foreign capital and alliances. "It's unclear how JAL will be able to grow as a business," said Yasuhiro Matsumoto, credit analyst at Shinsei Securities. "I can't see how JAL is going to build its network domestically and internationally." JAL and two core units filed for court protection from creditors in a procedure similar to Chapter 11 in the United States. Combined, the three firms had 2.3 trillion yen in debt as of the end of September, making it Japan's fourth-largest ever bankruptcy and its biggest by a non-financial firm. Shares of JAL, which have fallen more than 90 percent since the start of the month, closed flat at 5 yen after trading down 2 yen to 3 yen. They will be delisted on February 20. With a market value of about $150 million, JAL is now smaller than minor carriers Croatia Airlines (HRAR.ZA) and Jazeera Airways (Kuwait:JAZK.KW - News) and is worth less than one Boeing 747. "I thought that there was no way that JAL would fail," said Akiko Saito, a 63-year-old retiree returning from Sydney to Tokyo's Haneda Airport. "Even when the value of my JAL shares fell from 800,000 yen to below 120,000 yen, I was convinced that it would recover, and I held on to my stock." JAL bonds maturing in 2013 were priced at the equivalent of just 27.8 cents on the dollar, versus around 70 cents last month, but traders said there was little trading appetite for the bonds on Tuesday. The dollar fell to a session low against the yen on the news. The bankruptcy move could make rival All Nippon Airways Co (Tokyo:9202.T - News) Japan's new flagship carrier, but a debt-free and leaner JAL could eventually become a formidable threat for ANA, according to some analysts. Shares in ANA fell 4.2 percent after rallying to a six-month high last week. DEBT-LADEN The "tough love" for JAL by Prime Minister Yukio Hatoyama's four-month-old Democratic Party-led government signals a shift from previous governments under the long-dominant Liberal Democratic Party, which had authored the previous JAL bailouts. "What this shows is that the nation won't just take total care of a company. They've now said they'll let badly run companies fail," said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments. Following similar bankruptcies by overseas airlines such as Delta Air Lines (NYSE:DAL - News) and United Airlines (NasdaqGS:UAUA - News), JAL plans to slash its 51,862 workforce to 36,201 and to cut 14 international routes and 17 domestic routes in three years. The ETIC will support the carrier with about 300 billion yen in capital. The ETIC and the Development Bank of Japan will together provide a 600 billion yen credit line. Fuel-hedging contracts may also be affected by a bankruptcy filing. JAL uses mostly Brent forward contracts and about 40 billion yen is estimated to be exposed in the event of an automatic termination, a source familiar with the matter said. JAL will also need to decide about competing aid offers from Oneworld alliance partner American Airlines (NYSE:AMR - News) and rival Delta, which wants to woo JAL to its SkyTeam group. That decision will be left to the new management, to be led by Kazuo Inamori, the 77-year-old founder of electronics maker Kyocera Corp (Tokyo:6971.T - News), who was tapped last week to become JAL's new chief executive officer to oversee its restructuring. JAL's restructuring plan also calls for increasing fuel-efficiency in its fleet, replacing all 37 of its B747-400 jets and 16 MD90s, both supplied by Boeing (NYSE:BA - News), with 33 small jets and 17 regional ones. ($1=90.43 Yen) (Additional reporting by Nathan Layne, Nobuhiro Kubo, Chris Meyers and Linda Sieg; Writing by Lincoln Feast; Editing by Jean Yoon, Tim Hepher and Elaine Hardcastle)

DTN News: Financial News TODAY January 18, 2010 ~ Japan Airlines Shares Drop 45% As Bankruptcy Fears Grow

DTN News: Financial News TODAY January 18, 2010 ~ Japan Airlines Shares Drop 45% As Bankruptcy Fears Grow *ANALYSIS: By Roland Buerk, BBC News, Tokyo Japan's new government has been agonising for months over how to keep JAL in the air and who should pay the price for its massive debts - the taxpayer, shareholders, staff and pensioners or the banks. A decision is emerging - all of them. Banks that hold JAL's debt are reported to have tentatively agreed to the plan - the alternative could be a total collapse which would imperil their chances of seeing any of the money again. Circling the mess are the global airline alliances, Oneworld and SkyTeam, which are still interested in JAL because of the access it offers to Asia. But reports in Tokyo say both may be rejected for now as their involvement would complicate the process.

*Source: DTN News / BBC (NSI News Source Info) TOKYO, Japan - January 18, 2010: Shares in Japan Airlines (JAL) fell by 45% to a new all-time low on Tuesday as fears grow that the carrier is heading for bankruptcy. The fall came despite an improved offer of investment from American Airlines, up from $1bn to $1.3bn. The US carrier is keen to link into JAL's lucrative Asian routes. Meanwhile, JAL's current and former employees have agreed to cuts in the company's pension scheme payouts. The fund has a $3.6bn (£2.2bn) deficit. Those cuts are crucial to the company gaining any government support. Battle for skies American Airlines' improved offer of help also comes with strings attached. It wants JAL to stay with the Oneworld alliance that American is also a member of, along with British Airways and Qantas. JAL has another, rival, offer of support from the US. Delta Airlines is offering $500m and wants JAL to join its SkyTeam network. Thomas W Horton, chief financial officer of American's parent, AMR Corp, said: "While JAL and the Japanese government might decide to address capital requirements internally - and we certainly would understand and respect that - our offer of capital would be available if this was deemed an appropriate resource to aid in the restructuring of JAL." Staff cuts Japan Airlines applied for a government bail-out in October last year through the state-backed Enterprise Turnaround Initiative Corporation of Japan (ETIC) - a body able to draw on taxpayers' money to prop up the business while it restructures. A decision on that is due before the end of January, but the ETIC requires cost-cutting concessions, which not only include the restructuring of pension arrangements but also potentially severe job cuts of up to a third of the company's 49,000-strong workforce. It will then inject fresh capital into JAL, provided the airline files for bankruptcy and creditors agree to waive around 350bn yen ($3.8bn, £2.36bn) in debts.