US Data Drove Asian Stocks Down

Most Asian stocks fell on Monday after the US economy released on Friday a worse than expected Jobs report, which drove the Asian markets to its lowest in two weeks. Meanwhile Japans market is closed today due to holiday.

The MSCI Asia Pacific Excluding Japan Index declined 0.4 per cent to 475.53 as of 12:18 p.m. in Hong Kong, heading for its lowest close since Dec. 29. Two stocks fell each that advanced on the index. The gauge climbed to a two-month high on Jan. 4 as data on U.S. manufacturing and services industries boosted optimism that a recovery in the world’s largest economy is strengthening.China’s Shanghai Composite Index slid 0.4 per cent. South Korea’s Kospi Index fell 0.7 per cent. Taiwan’s Taiex Index was little changed. Japanese markets are closed for a holiday.Indonesia’s Jakarta Composite Index slumped 3.5 per cent. Australia’s S&P/ASX 200 Index was little changed and New Zealand’s NZX 50 Index climbed 0.2 per cent.

Obama discusses Pak-Afghan with NATO secretary general

WASHINGTON: U.S. President Barack Obama has discussed the war against terrorism and the current situation in Afghanistan and Pakistan with visiting NATO Secretary General Anders Fogh Rasmussen at the White House here.

“The two leaders discussed progress in implementing our shared strategy for Afghanistan and Pakistan and ways to further strengthen the international community’s efforts,” the White House said in a statement.

During the meeting, Mr. Obama thanked Mr. Rasmussen for the significant NATO commitment to promote peace and stability around the world, particularly in Afghanistan where nearly 50,000 non-US ISAF troops, trainers, and civilians are serving alongside Americans.

Mr. Obama and Mr. Rasmussen also discussed goals for the November 19-20 NATO Summit in Lisbon, including unveiling a new NATO Strategic Concept that reinforces the allied commitment

Punjab fears food crises after massive grain loss in floods

Staff Report

LAHORE: The Punjab government has expressed fear of food crises in the province after the loss of 5 million tons of grain in the recent floods.

According to sources, a report has been sent to the Ministry of Food and Agriculture saying that 5 million tons of grain worth billions of rupees have been lost in the flood water from the stocks of flood affected districts in Punjab.

Sources added that after this colossal waste of grain, the Punjab government has asked the federal government to abandon plans to export grain overseas. SAMAA

Local stocks end up; Index closes at 10,201 points

KARACHI: Stocks at Karachi Stock Exchange rose on thin trade on Monday amid hopes of strong corporate results while dealers said investors were waiting for the introduction of a leverage product in the market.

The Karachi Stock Exchange”s benchmark 100-share index, ended 0.47 percent, or 48 points, higher at 10,201.85points on turnover of 67.79 million shares.

“Investors are accumulating selective shares on hopes of healthy profits but volumes will only increase once a leverage product is introduced,” said Sajid Bhanji, a dealer at Arif Habib Ltd.

Results for the year ending June 30 are due to be announced in the coming weeks.

Dealers said volume is likely to improve after the expected reintroduction of margin buying.

The Karachi Stock Exchange authorities and the Securities and Exchange Commission of Pakistan (SECP) met this month to discuss the reintroduction of margin buying and the KSE sentits recommendations to the SECP on Friday.

Stocks drop on weak consumer sentiment, bank earns

NEW YORK: Investors are finding disappointment everywhere and taking out their frustration on stocks.

Stocks slumped Friday after banks” second-quarter earnings fell short of expectations and a new survey found that consumers are becoming more pessimistic. The Dow Jones industrial average lost 261 points, and all the major market indexes dropped more than 2.5 percent. Interest rates fell in the Treasury market as investors once again sought the safety of government securities.

The market fell at the opening after Citigroup Inc. and Bank of America Corp. released earnings. The two banks, like JPMorgan Chase Co. a day earlier, reported higher earnings as losses from failed loans fell. But they are also seeing lower trading revenue because of the stock market”s plunge this spring. The drop in revenue raised questions about how banks will be able to make big profits if trading is curtailed by new federal regulations.

Stocks fell further after a twice-monthly survey from the University of Michigan and Reuters found that consumers” gloom is increasing. An index of consumer sentiment compiled from the survey fell to 66.5 in early July from 76. That was a bigger drop than expected.

“It”s mostly about the poor consumer confidence numbers,” said Anthony Conroy, managing director and head trader for BNY ConvergEx Group. “The possibility of a double dip also starts to come to mind” for investors, he said, referring to a phrase that describes the economy falling back into recession.

The unexpectedly low reading on consumer confidence “spooks people and reinforces fears that the economy is slowing too much too fast,” said Scott Marcouiller, chief technical market strategist at Wells Fargo Advisors. He noted that stocks had just enjoyed a seven-day winning streak, which makes them vulnerable to a big drop. And light volume, typical for a summer Friday, exacerbated the losses.

The market”s retreat following a big gain fit with its pattern since late April, when the major indexes hit 2010 highs and then tumbled amid a variety of economic worries. But it wasn”t just the economic data that set investors off Friday.

“You get a few bad earnings numbers and it”s a lot of excuses to take profits if you got them,” Marcouiller said.

Citigroup”s shares were off 6.3 percent while Bank of America was off 9.2 percent. General Electric Co. fell 4.6 percent beating despite delivering stronger earnings and a healthy outlook. The company also reported a drop in revenue.

Stocks had struggled to a mixed finish Thursday after being down for much of the day on disappointing regional manufacturing reports for the Northeast. Much of the deficit was erased late in the day as news began to circulate that Goldman Sachs Group Inc. had settled civil fraud charges with the government over its dealings with subprime mortgage securities.

However, while investors were relieved that Goldman was putting the case behind it, they were again confronted Friday by larger ongoing worries: the economy and the future of the banking industry now that Congress has approved the banking industry overhaul bill.

The Dow fell 261.41, or 2.5 percent, to 10,097.90. The Standard Poor”s 500 index fell 31.60, or 2.9 percent, to 1,064.88. The Nasdaq composite index fell 70.03, or 3.1 percent, to 2,179.05.

For the week, the Dow is down 1 percent, the SP 500 is down 1.2 percent, and the Nasdaq is down 0.8 percent.

About four stocks fell for every one that rose on the New York Stock Exchange, where consolidated volume came to 5.4 billion shares, up from Thursday”s 4.6 billion.

Bond prices rose in what”s known as a flight to safety. That sent their yields lower. The yield on the benchmark 10-year Treasury note, which helps set interest rates on mortgages and other kinds of loans, fell to 2.93 percent from 3.00 percent late Thursday.

The formal announcement of Goldman”s $550 million settlement came after the stock market closed on Thursday. Goldman was the only major financial company to show a gain Friday. It was up 95 cents, or 0.7 percent, at $146.17.

Bank of America”s stock fell $1.41, or 9.2 percent, to $13.98. Citigroup was off 26 cents, or 6.3 percent, at $3.90. Both companies beat analysts” expectations. However, the drop in their revenue as a result of the stock market”s slide had investors worried about how banks would make money in the future under new government regulations.

Google Inc. fell $34.41, or 7 percent, to $459.61 after its earnings fell short of analysts” expectations.

GE lost 70 cents or 4.6 percent to $14.55.

The Dow ended its seven-day winning streak on Thursday. It was down as much as 126 points early in the day, but closed down just 7 as word spread about the Goldman Sachs settlement.

A government report on consumer prices for June was mainly in line with analysts” expectations. The Consumer Price Index dipped 0.1 percent last month, largely due to lower energy bills.

The euro climbed above $1.29 as it recovers following a steep plunge earlier this year amid fears that government debt in many European nations would send the continent back into recession.

Overseas, Britain”s FTSE 100 fell 0.9 percent, Germany”s DAX index fell 1.8 percent, and France”s CAC-40 fell 2.1 percent. Japan”s Nikkei stock average tumbled 2.9 percent.

Dollar jumps to Rs85.80 in interbank

KARACHI: The rising foreign exchange reserves are proving a failure in giving support to the rupee which is steadily on decline compared to the US dollar.

Dollar witnessed further rise on Monday against rupee as it closed paisas 12 up at its highest at Rs85.80 in the interbank.

According to forex market dealers, demand for dollar rose that led to the increase in its price. They said importers today bought 7.5 billion dollars, pushing rupee down.

In open market dollar was bought at Rs85.80 and sold for Rs85.90.

Strict measures on card to stop sugar hoarding

ISLAMABAD: Federal Minister for Finance, Dr. Abdul Hafeez Sheikh said the Economic Coordination Committee (ECC) would adopt strict measures to stop sugar hoarding.

He was talking to Geo News Monday.

He pointed out that monthly consumption of sugar was 278000 tones and the stocks were of 1246000 tones, enough till October.

The government would foil all bids to create artificial shortage of the commodity, he warned.

It is time for senior players to go: Afridi

ISLAMABAD: Pakistans Twenty20 captain Shahid Afridi, dejected with the performance of some senior players has requested the national selectors to bring in some young blood in the team.

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It is time for senior players to go: Afridi

Queen Elizabeth has died, oh sorry!

LONDON: The BBC apologised unreservedly Tuesday after a radio presenter jokingly announced that the Queen had died.

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Queen Elizabeth has died, oh sorry!

Travoltas 2 dogs killed in airport accident

BANGOR, Maine: A service vehicle at Maine’s Bangor International Airport has struck and killed two dogs owned by John Travolta.

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Travoltas 2 dogs killed in airport accident

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