* China September inflation dips* S&P cuts Spain credit rating* Futures up: Dow 82 pts, S&P 7.8 pts, Nasdaq 15 ptsBy Chuck MikolajczakNEW YORK, Oct 14 (Reuters) - U.S. stock index futures rose
on Friday, shrugging off a credit rating downgrade of Spain,
propelled by strong earnings from Google Inc and hopes the euro
zone will continue progress toward a solution to its debt
crisis.* Google’s shares gained 7 percent to $559 after
its results late on Thursday trounced Wall Street expectations,
helped by strong advertising sales and deft cost controls.* China’s consumer inflation dipped to 6.1 percent in
September, retreating further from three-year highs and easing
some concerns about demand in the region a day after data
showed the country’s trade surplus narrowed.* Standard and Poor’s cut Spain’s credit rating on Friday,
underlining the challenges facing Europe’s big powers as they
prepare to meet counterparts from the Group of 20 nations over
the euro zone debt crisis.* Investors will look for clues into the health of the U.S.
consumer on Friday with data on retail sales and consumer
confidence. The Commerce Department releases September retail
sales at 8:30 a.m. (1230 GMT), and economists in a Thomson
Reuters survey expect a 0.7 percent rise from a flat reading in
August. Excluding automobiles, sales are seen up 0.3 percent
compared with a 0.1 percent rise in the prior month.* Also at 8:30 a.m. (1230 GMT), the Labor Department
releases import-export prices for September. Economists expect
a 0.3 percent drop in imports and a 0.2 percent rise in
exports. In the prior month, import prices fell 0.4 percent and
export prices rose 0.5 percent.* At 9:55 a.m. (1355 GMT) the Thomson
Michigan Surveys of Consumers releases its preliminary October
consumer sentiment index. Economists expect the reading to rise
to 60.2 from 59.4 in the final September report.* S&P 500 futures rose 7.8 points and were above
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures gained 82
points, and Nasdaq 100 futures rose 15 points.* Mattel Inc , the world’s largest toy company,
reported higher-than-expected quarterly sales, helped by
favorable exchange rates and strong sales of its Barbie dolls.* European shares were higher, boosted by
better-than-expected results from Google and forecast-beating
earnings from Syngenta offsetting weakness in banks
as ratings agency actions weighed on the sector.* Asian equity markets were lower on concerns about
sluggish global growth after weaker-than-expected China trade
data on Thursday.* The Dow and S&P 500 slipped on Thursday after JPMorgan’s
earnings and China’s soft trade data revived worries about the
impact of slower growth on profits.
* Maersk to take over vessels in Q4 2011* More deals seen as shipping markets struggle - analystCOPENHAGEN, Oct 14 (Reuters) - Maersk Tankers, part of
Danish oil and shipping group A.P. Moller-Maersk (MAERSKb.CO)
said on Friday it had acquired two product tanker vessels from
struggling peer Torm .Maersk Tankers said in a statement it would take over two
LR2 (Long Range) product tankers in the fourth quarter of 2011.The parties had agreed not to disclose the sales price, but
according to Maersk, the vessels had been acquired at
“attractive” levels.”Growing our fleet at attractive price is in alignment with
Maersk Tankers’ strategy to reinforce our market leading
position in the LR2 segment,” said Maersk Tankers’ chief
commercial officer Klaus Rud Sejling in a statement.The company’s strategy is to grow at the bottom of the cycle
through buying second-hand tonnage, Maersk Tankers said.The shipping industry will face tougher financing conditions
in the next 24 months as banks tighten credit lines with more
asset sales and ship seizures expected as a rout in seaborne
earnings also takes its toll.Shipping companies especially in the crude oil tanker and
dry bulk sectors, hit by weak earnings and an oversupply of
vessels, have already found it hard to find financing.”Maersk is right buying into the product tanker market and
there will be more opportunities to acquire assets,” said Pareto
analyst Martin Korsvold.”We will see more downwards pressure on assets as the
banking market is very difficult at the moment,” Korsvold said.”Some don’t have enough cash to make collateral and you will
see bankruptcies,” Korsvold said. He added particularly the
crude tanker market would be affected.The sale had no impact on Torm’s profit and loss statement,
but would have a positive effect on the liquidity of about $20
million, Torm said. The sale would not change Torm’s financial
guidance for 2011, it said.
* Loans, M2 growth slow as Beijing keeps monetary policy
tight
(Adds details, quotes)By Langi Chiang and Koh Gui QingBEIJING, Oct 14 (Reuters) - China’s foreign exchange
reserves grew at a surprisingly tepid clip last quarter to $3.2
trillion after the stockpile suffered a drop of nearly $61
billion in September on an outflow of speculative funds and a
skidding euro.Data also showed China’s bank lending and money growth
cooled more than forecast in September, suggesting Beijing kept
monetary policy on a tight leash in the month to contain price
pressures.”Particularly in September, there was a big drop in stock
markets, global investors repatriated some money from emerging
countries including China,” said Banny Lam. “But this is
temporary.”Although China’s ballooning reserves are often seen as a
sign of its growing wealth, some analysts say they underscore
Beijing’s problem of excess cash, which fuels price pressures.In a sign that inflation-wary Beijing kept monetary
conditions tight in September, banks were shown to have lent 470
billion yuan ($73.6 billion) in yuan loans, lower than August’s
548.5 billion yuan.Money and loan growth take centre stage in China’s monetary
policy as they are controlled by Beijing to manage inflation.The broad M2 measure of money supply, M2, rose 13 percent
from a year ago, slowing further from 13.5 percent in August.That is the slowest pace since October 2001, and marked the
sixth month in a row M2 growth came in below the
government’s own target for 2011 of 16 percent.Economists had expected foreign exchange reserves to hit
$3.305 trillion at the end of September and expected loan
currency loans of 532.5 billion yuan and M2 growth of 13.8
percent.Lending and money growth have slowed steadily this year as
the People’s Bank of China steered monetary conditions back to
normal after unleashing an extraordinary surge in bank credit in
2009 to counter the global financial crisis.However, official lending data published by Beijing is not
all encompassing.A thriving underground lending market that charges
exorbitant rates has blossomed as lenders and borrowers look for
ways to beat the rules and satiate firms’ thirst for cash.Data out on Friday showed annual inflation eased a shade in
September to 6.1 percent from August’s 6.2 percent, but still
within sight of three-year highs of 6.5 percent hit in July.Many analysts say elevated price pressures should deter
Beijing from loosening policy reins anytime soon, although a
slight relaxation including boosting lending to small firms is
likely if push comes to shove.But any further policy tightening is also unlikely at this
point. Data earlier this week showed China’s exports growth
slowing to seven-month lows as Europe’s debt crisis chilled
global demand.Since October 2010, Beijing has raised interest rates five
times and banks’ reserve requirement ratios nine times.
($1 = 6.382 Chinese Yuan)
Taobao Mall, China’s largest business to consumer (B2C)
e-commerce platform, said on Monday it will increase its annual
membership fees from 6,000 yuan ($944) to between 30,000 yuan to
60,000 yuan depending on the type and scale of the business.The fee hike caused thousands of Taobao Mall shop owners to
protest online Tuesday night by buying up goods from bigger
stores and then asking for refunds, Xinhua said. Asking for
refunds would lower the rankings of the shops and prompted some
big outlets to temporarily stop selling products, it said.On Wednesday, 40,000 people claiming to be Taobao Mall
businessmen gathered in an online chat room to discuss more ways
of disrupting the website, the report said.Taobao Mall said in a statement on Wednesday that the matter
has been referred to the police.”We are willing to accept any views and suggestions towards
our rules but we will not tolerate serious harm committed
against innocent businesses because of different views,” Taobao
Mall said in the statement.Alibaba Group, which is 40 percent owned by Yahoo Inc
, operates Taobao, Taobao Mall and Alibaba.com
.The business owners claimed that the fee increase would
cripple their businesses but will have little effect on the
bigger brands that have stores on the platform, Xinhua reported.A portion of the new fees will be returned to the shop
owners if they satisfy certain standards and criteria.Taobao Mall had 32.8 percent of China’s 54.2 billion yuan
B2C online marketplace in the second-quarter, according to data
from Analysys International. 360buy, Taobao Mall’s nearest
rival, had 12.4 percent of the market.
Oct 12 (Reuters) - The Harrisburg, Pa., city council passed
a resolution on Tuesday night authorizing a Chapter 9
bankruptcy filing, a city official said on Wednesday.The Pennsylvania state capital faces a $300 million debt
crises tied to a project to revamp its incinerator and has been
plagued with cash flow problems.Mark Schwartz, the council’s attorney in this matter, said
on Wednesday that the bankruptcy filing would give the city
“bargaining power” with its creditors and with the state, which
is considering a takeover plan.”They were tired of being humiliated and denigrated,” he
said of the council members who voted for bankruptcy on
Tuesday.Chapter 9 is “a much better forum if you really want to
address the financial problems of the city,” he added.The bankruptcy court for the middle district of
Pennsylvania confirmed on Wednesday they have received a faxed
bankruptcy petition from Harrisburg, but that it has not been
filed yet.The state legislature is considering a bill that would call
for an eventual takeover of the city and the forced
implementation of a fiscal rescue plan.In July, the City Council rejected a state-approved rescue
plan, which called on it to renegotiate labor deals, cut jobs,
and sell or lease its most valuable assets, including the
incinerator and parking garages.In August, the council rejected a similar plan that had
been crafted by Mayor Linda Thompson, saying that both plans
were overly burdensome for Harrisburg residents and did not ask
enough of the county, bondholders and the bond insurer, Assured
Guaranty.On Wednesday, a spokesman for Thompson said that the
council’s actions could accelerate the state approving a
takeover of Harrisburg.”(The bankruptcy) is hugely unpopular, but the council…is
an independent body,” said mayoral spokesman Robert Philbin.He also said the city’s solicitor had raised questions
about the legality of the vote during the meeting on Tuesday.
The solicitor, Jason Hess, was not immediately available for
comment.However, City Controller Dan Miller said on Wednesday the
filing was the right move for Harrisburg.”I think it’s the only real option that we had,” said
Miler, adding that the previous plans rejected by city council
would have benefited creditors at the expense of the city.”They wanted to sell all of our assets and make Harrisburg
destitute for decades to come,” he said.
