U.S. officials to meet in N. Korea

A State Dept. envoy’s visit to Pyongyang this week appears aimed at restarting six-party talks on N. Korea’s nuclear programs. The communist country failed to disclose an inventory of its nuclear activities when it was due Dec. 31. Pyongyang had pledged to halt its nuclear programs in return for aid. The U.S. is trying to prod talks rather than provoke confrontation.

INDONESIA: The country extradited 4 rebel soldiers suspected in the attempted assassinations of East Timor’s president and prime minister, the police chief said.

BRAZIL: Rescue workers found 2 more bodies near the site where a boat ferrying people home from a religious festival sank in the country’s Amazon region. The discovery raised the death toll to 17, with dozens still missing.

HONG KONG: Chinese government suggestions that it may allow mainland insurance companies to invest in property could unleash billions of dollars in deals for commercial buildings and embolden developers and foreign investors who want a more active market.

Property investment typically gives insurers the steady income they need to balance long-term liabilities.

But Beijing wants to cool property prices, particularly in a housing sector fueled by an influx of eight million people into cities each year, so it has been wary about giving the green light to the prospective new players.

A slump of over 40 percent in the Shanghai stock market since a peak in October, however, has instilled a sense of urgency, with regulators realizing that insurance companies, flush with $300 billion for investment, need to diversify risk beyond stocks, bonds and deposits.

Yuan Li, a top executive at the China Insurance Regulatory Commission, told a news briefing Wednesday that the authority was studying the possibility of allowing insurers to expand investment into infrastructure and property but gave no time frame.

Such a move could put as much as $30 to 40 billion in investment into Chinese commercial property, said Stuart Leckie, an actuary and Chinese pensions expert who heads the advisory firm Stirling Financial.

“Its not going to happen this week or this month, but maybe over the next five years,” Leckie said, adding that his estimate was based on global industry norms of portfolio allocations of 10 to 15 percent to property.

Mainland Chinese insurers have long been property investors on the sly - taking advantage of being allowed to own their own headquarters and branch offices, but leasing out a lot of the space.

Top-notch offices in Shanghai and Beijing give an annual rental yield of about 8 percent, compared to 3 percent in Tokyo and 4 percent in Hong Kong.

Some insurers, though still technically barred from investing in property, are already getting a nod for specific projects.

The industry leader, China Life Insurance, owns 20 percent of the Oriental Plaza shopping, office and apartment complex in Beijing.

The second-biggest life insurer, Ping An Insurance Group, entered a $127 million joint venture in 2006 to build shopping centers anchored by Wal-Mart Stores.

Big investment by insurers would benefit developers of commercial properties like Guangzhou RF Properties and the Hong Kong developers Sun Hung Kai Properties and Cheung Kong.

It would also encourage foreign investors lured by fast economic growth in China, but who need to know that domestic funds can buy their buildings when it is time to exit and take profits.

“Its certainly going to create more liquidity, but it also creates more competition for foreign players,” said David Dudley, regional capital markets director for the consultants Jones Lang LaSalle in Hong Kong.

Because of a scarcity of big property investors in China, many office and retail buildings are sold by “strata” with buyers taking individual floors, complicating any sale of a whole block.

China has an estimated $678 billion worth of investment-grade property, compared to $1.3 trillion in Japan, according to UBS, and has drawn property funds run by Morgan Stanley, ING and Deutsche Bank.

Beijing is putting up more barriers to foreign property investors, including requirements for the creation of an onshore company and ministerial approval for deals. Newcomers to the market could try to team up with Chinese insurers, analysts say.

Such a deal was struck last year by the property fund manager Aetos Capital, which hired China Life to source deals as a possible precursor to a full-scale tie-up on building purchases.

Technologycompanies dominatedan annual list of the world’s most powerful brands, with internet search leader Google retaining the top spot and Research in Motion’s Blackberry brand one of the fastest risers.

Research from international consulting firm Millward Brown, published Monday, put the value of Google’s brand at $86 billion US, a 30 per cent increase in its value from the previous year.

General Electric was again ranked second with a value of $71.4 billion US, followed by Microsoft at $70.89 billion US and Coca-Cola at $58.2 billion US. China Mobile ranked fifth at $57.2 billion US.

Millward Brown bases its BrandZ rankings on the financial performance of the companies and the results of interviews with consumers globally.

While the top five brands remained unchanged from a year ago, a number of technology and telecommunications companies moved up in the rankings, the company said.

IBM moved from ninth to sixth, and Apple zoomed up from 16th to seventh, with its brand value rising 123 per cent from the previous year to $55.2 billion.

Rounding out the top 10 were U.S. fast-food giant McDonald’s, Finnish cellphone maker Nokia and tobacco brand Marlboro.

Waterloo, Ont.-based Research in Motion’s Blackberry brand had the biggest year-to-year change among companies in the top 10, rising 390 per cent to $13.7 billion US, according to Millard Brown.

Blackberry, which came in at No. 51, was one of two brands with Canadian origins to make the top 100. Royal Bank of Canada was No. 34 on the list, with a brand valued at $18.99 billion US.

Technology companies and mobile phone operators accounted for 28 of the top 100 brands and accounted for more than half the total brand value growth, the report found.

But not all technology companies fared well in the rankings. U.S. phone maker Motorola’s brand dropped 30 per cent in value from the previous year, the largest drop of any brand still in the top 100. Internet search portal Yahoo and online retailer eBay also dropped in value from the previous year. Post a commentPeople have commented on this story Recommend this story People have recommended this story Story Tools: | | Text Size: | | Story comments (0) Sort: Most recent | First to last | Most recommended

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(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window) People who read this also read … Consumer Headlines 00 The Bank of Canada is widely expected by economists to cut interest rates by one-half of a percentage point on Tuesday in a bid to give the economy a boost. 00 Technology companies dominated an annual list of the world’s most powerful brands, with internet search leader Google retaining the top spot and Research in Motion’s Blackberry brand one of the fastest risers. 00 U.S.-based Marvel Entertainment is bringing its pantheon of superheroes to Dubailand, the United Arab Emirates theme park poised to become the largest of its kind. 00 The United Nations secretary general says the world must urgently increase food production to ease skyrocketing prices and has pledged to set up a task force on a crisis threatening to destabilize developing nations. 00 Skype, the internet calling subsidiary of eBay Inc., is introducing its first plan for unlimited calls to overseas phones on Monday. Consumer Life Features «www.cbc.ca» «www.cbc.ca» «www.cbc.ca» «www.cbc.ca» «www.cbc.ca»

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Action Insight | Written by ActionForex.com | Nov 14 07 13:59 GMT |
Forex Mid-Day Technical Report Euro Firm, Sterling Pressured, Dollar Mixed

Euro remains firm across the board after solid GDP data. On the other hand, Sterling is hammered on increased expectation of rate cut from BoE in early 08. Dollar remains mixed in general after weaker than expected PPI report which showed 0.1% mom, 6.1% yoy growth in Oct comparing to expectation of 0.3% mom, 6.3% yoy. Retail sales rose 0.2% in Oct, inline with expectation while ex-auto sales rose missed expectation by rising 0.2% only.

Sterling was firm in early European, supported by solid job report that showed claimant count dropped another -9k in Oct while average earnings growth accelerated to 4.1% yoy in Sep. However, Sterling reversed sharply after the released of «www.bankofengland.co.uk». The report forecasts inflation in UK will settle at its target of 2.0%, after being pushed to above 2.0% by energy prices, assuming at least on rate cut in 2008. This prompted increased expectation that BoE will act as soon as Q1.

On the other hand, Euro is lifted by stronger than expected Q3 GDP data which showed 0.7% qoq, 2.6% yoy growth comparing to expectation of 0.6% qoq, 2.5% qoq. The comparative strength between Euro and Sterling is also seen in the sharp rally in EUR/GBP cross. EUR/USD

Daily Pivots: (S1) 1.4538; (P) 1.4585; (R1) 1.4650; «www.actionforex.com»

EUR/USD’s rise from 1.4518 extends further to as high as 1.4713 today. At this point, intraday bias remains on the upside as long as 1.4633 minor support holds. Retest of 1.4751 high should be seen. correction from 1.4751 has likely completed after drawing support from 4 hours 55 EMA and short term rising channel. Break of 1.4751 will confirm rise from 1.4014 has resumed for next upside target of 1.5 psychological resistance.

On the downside, below 1.4633 will flip intraday bias back to the downside and suggest that consolidation from 1.4751 is possibly still in progress and will bring another fall to 1.4519 before completion. Though, rise from 1.4014 should still be in force as long as 1.4414 clusters support (50% retracement of 1.4124 to 1.4751 at 1.4438) remains intact.

The long term view remains unchanged. Regardless of internal structure, medium term up trend from 1.1639 remains in force and is treated as resumption of long term up trend from 0.8223 (00 low) to 1.3668 (04 high), with subsequent correction ended at 1.1639. Such rally is expected to extend further to 61.8% projection of 0.8223 to 1.3668 from 1.1639 at 1.5004 which will overlap with 1.5 psychological resistance. A break below 1.3851 is resistance turned support is needed to be the first signal that such rally has completed. Otherwise, medium term outlook remains bullish.

GBP/USD

Daily Pivots: (S1) 2.0566; (P) 2.0663; (R1) 2.0804; «www.actionforex.com»

Cable retreats sharply after rebound from 2.0523 was limited at 2.0845 earlier today. Break of 2.0670 minor support turns intraday bias is flipped to the downside for the moment and retest of 2.0520/38 cluster support (50% retracement of 1.9879 to 2.1161 at 2.0520) could be seen. However, as long as this cluster support holds, rise from 1.9879 should still be in progress. Above 2.0845 will encourage a retest of 2.1161 high.

However, decisive break of 2.0520/38 cluster support will indicate that whole rise from 1.9652 has already completed, after touching medium term rising channel resistance. In such case, focus will be back to medium term rising channel support (now at 1.9986). But otherwise, rise from 1.9879 remains in force as long as 2.0520/38 cluster support holds.

In the bigger picture, medium term rally from 1.7047, regardless of internal structure, is treated as resumption of long term up trend from 1.3680 (01 low) to 1.9554 (04 high) with subsequent correction ended at 1.7047. Break of 61.8% projection level at 2.0677 now encourages further medium term rally to next projection target of 100% projection 1.3680 (01 low) to 1.9554 (05 high) from 1.7047 (05 low) at 2.2921. On the downside, decisive break of the medium term rising channel is needed to signal that such medium term rally has made a top. Otherwise, medium term outlook remains bullish.

USD/CHF

Daily Pivots: (S1) 1.1235; (P) 1.1267; (R1) 1.1306; «www.actionforex.com».

USD/CHF weakens today and is now pressing 1.1187 low. At this point, further decline is still expected as long as 1.1300 resistance holds. Sustained trading below 1.1187 will encourage further fall to test next important medium term support at 1.1100 (95 low). On the upside, above 1.1300 will indicate that a short term bottom is possibly formed and bring recovery to 4 hours 55 EMA (now at 1.1353) and above. But upside should be limited below 1.1597 support turned resistance and bring another fall.

In the bigger picture, medium term down trend from 1.3283 (05 high) has now breached medium term support of 1.1288. The current preferred interpretation is that fall from 1.3282 was initially contained at 1.1919 and turned into sideway triangle consolidation that completed at 1.2467, where the medium term down trend resumed. With this interpretation, next downside target is 1.1100 clusters support (95 low and 100% projection of 1.3283 to 1.1919 from 1.2467 at 1.1103). Hence, downside could be supported there initially on oversold condition and bring rebound.

On the upside, even though a stronger rebound would be seen in case of a break of 1.1597 resistance, break of 1.1891 resistance is needed to indicate fall from 1.2467 has completed. Otherwise, further decline is still in favor after correction.

USD/JPY

Daily Pivots: (S1) 109.75; (P) 110.37; (R1) 111.51; «www.actionforex.com».

USD/JPY’s rebound from 109.12 extends further to as high as 111.55 today. With a short term bottom in place at 109.12, further recovery could now be seen to 112.04/113.39 resistance zone. But still, upside should be limited there and bring another fall. On the downside, below 110.53 minor support will flip intraday bias back to the downside for 108.99 support first. Sustained break of 108.99 will encourage further decline to next short term target of 100% projection of 124.13 to 111.59 from 117.94 at 105.40.

In the bigger picture, the three wave structure of the up trend from 101.65 to 124.13 suggests that it’s corrective in nature. Such development flipped favor to the case that the rally from 101.65 could indeed be the final leg of a long term triangle formation (147.68, 101.22, 135.20, 101.65, 124.13). The break of falling trend line (147.68, 135.20) was merely a throwover in the last leg. Sustained trading below 108.99 low will add more credence to this case and put key long term support zone of 101.22/65 into focus. On the upside, break of 115.91 resistance is needed to be the first signal that fall from 124.13 has completed. Otherwise, medium term outlook remains bearish.

EUR/JPY

Daily Pivots: (S1) 159.71; (P) 160.91; (R1) 163.14; «www.actionforex.com»

EUR/JPY’s rebound from 158.67 continues today and is now pressing mentioned 164.00 resistance (61.8% retracement of 167.62 to 158.67 at 164.26). At this point, intraday bias remains on the upside as long as 161.81 minor support holds. But still, as long as 164.00 resistance (61.8% retracement of 167.62 to 158.67 at 164.26) holds, the current rebound will be treated as correction to the fall from 167.62 only and further decline is still in favor. Below 161.81 will turn intraday bias back to the downside bring retest of 158.67 low. However, above 164.00/26 cluster resistance will flip favors back to the case that price action from 167.72 is merely consolidation to rise from 149.27. and will bring retest of this high and then 168.93 key resistance.

In the bigger picture, break of trend line support (137.16, 150.75) confirmed that medium term rally rally from 130.60 has made an important medium term top at 168.93. However, subsequent sharp correction from there to 149.27 was supported by long term rising channel. Hence, long term up trend from 88.97 (00 low) remains intact. But break of 168.93 high is needed to confirm such up trend has resumed. Meanwhile, on the downside, break of 149.27 low will also have the long term rising channel taken out, which in turn add much weight to the case that rise from 88.97 has indeed completed at 168.83 and bring much deeper medium term decline.

Forex News Digest

«www.bloomberg.com»

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«c.moreover.com»
Wed, 14 Nov 2007 11:37:00 GMT from Excite Money & Investing

«c.moreover.com»
Wed, 14 Nov 2007 10:49:00 GMT from International Herald Tribune

«c.moreover.com»
Wed, 14 Nov 2007 10:43:00 GMT from CNBC

«www.actionforex.com» Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised
23:30 AUD Australia W’pac consumer confidence -4.20% N/A -0.30%
07:00 EUR Germany GDP Q/Q Q3 0.70% 0.70% 0.30%
07:00 EUR Germany GDP Y/Y Q3 2.40% 2.50% 2.50%
09:30 GBP U.K. Claimant count Oct -9.9k -5.0K -12.8K -13.9k
09:30 GBP U.K. ILO unemployment rate Sep 5.40% 5.40% 5.40%
09:30 GBP U.K. Avg. earnings 3m Y/Y Sep 4.10% 3.90% 3.70%
10:00 EUR Eurozone GDP Q/Q Q3 0.70% 0.60% 0.30%
10:00 EUR Eurozone GDP Y/Y Q3 2.60% 2.50% 2.50%
10:30 GBP BoE Quarterly Inflation Report
13:30 USD U.S. PPI M/M Oct 0.10% 0.30% 1.10%
13:30 USD U.S. PPI Y/Y Oct 6.10% 6.30% 4.40%
13:30 USD U.S. PPI core M/M Oct 0.00% 0.20% 0.10%
13:30 USD U.S. PPI core Y/Y Oct 2.50% 2.60% 2.00%
13:30 USD U.S. Retail sales M/M Oct 0.20% 0.20% 0.60% 0.70%
13:30 USD U.S. Retail sales less auto M/MOct 0.20% 0.30% 0.40% 0.30%
13:30 CAD Canada Leading indicators Oct 0.10% 0.30% 0.40% 0.30%
14:10 USD Bernanke Speaks on FOMC Communications
15:00 USD U.S. Business inventories Sep 0.30% 0.10%

«www.actionforex.com»

SAP () disappointed investors Wednesday by reporting first-quarter revenue and software license sales that missed analyst estimates.

It also said a key software project has been delayed.

SAP, based in Walldorf, Germany, said net income fell 22% from the year-earlier quarter to 242 million euros, or $374 million at early Wednesday’s currency exchange rate. Excluding the write-down from its nearly $7 billion acquisition of business intelligence software maker Business Objects, SAP said profit rose 7% from a year ago.

Europe’s largest software maker said revenue rose 14% to 2.46 billion euros, or $3.83 billion.

The consensus estimate of 18 analysts polled by Thomson Reuters called for revenue of 2.46 billion euros, or $3.96 billion.

SAP reported software license revenue of 622 million euros, or $968.5 million.

That’s below the consensus analyst estimate of 679 million euros, or $1.06 billion, according to JMP Securities.

Software licenses, a key gauge of future service revenue and growth, were weakest in the U.S., down 2% when using a constant currency exchange rate.

The company cited dollar weakness against the euro as a factor hurting its performance, since much of its business comes from the U.S.

The company’s top executive also said the U.S. market was slow in general.

“(In) North America, it’s not a secret the market is tougher,” SAP Chief Executive Henning Kagermann said Wednesday in a conference call with analysts. “Customers are more cautious, and the deal size is lower than in past quarters.”

SAP’s U.S. stock fell as much as 5.4% on Thursday before ending the day down 4.2% at 50.23.

Archrival Oracle’s () shares also fell 4.2%.

SAP sells products and services worldwide, so the U.S. downturn shouldn’t be a big problem unless it starts bleeding into foreign markets, said Michael Nemeroff of Wedbush Morgan Securities. He rates SAP a hold.

“We’re a bit disappointed with the quarter, even though we expected the U.S. was going to be weak for SAP,” he said. “We will be more concerned if we see this slowdown spread into Europe.”

SAP said BusinessByDesign its largest development project to date has been delayed “to validate and fine-tune the solution.”

Its launch had been planned for this summer.

BusinessByDesign is intended as a low-cost, on-demand software service for small and midsize firms.

As a result of the setback, SAP said it would cut its investment in the project by 100 million euros, or $156 million, this year in order to expand operating margins. The delay caused SAP to extend its goal for broad adoption of BusinessByDesign by 12 to 18 months.

SAP had hoped to attract 10,000 customers and $1 billion in revenue from the project by 2010. Now it’s shooting for 2011 or 2012.

The company will sign up far fewer clients for the new service this year than the 1,000 or so it had expected, said JMP analyst Patrick Walravens. “Our due diligence suggests the number of customers is around 60 and that problems with multiple data models are hurting the BusinessByDesign solution,” he wrote in a note to investors.

He rates SAP as market underperform, or sell.

BusinessByDesign could turn out to be a key source of growth for SAP, said James Gilman of Cross Research. He rates the stock a hold.

SAP’s BusinessByDesign delay seems to be in order to offer a more feature-rich product, Gilman says.

“On the positive side, we’ll see a margin expansion this year because they will spend less on development costs,” he said. “This is a new initiative with growing pains, but we expect SAP to succeed with BusinessByDesign over time. It will just take longer.”