Tuesday, June 16, 2009

Wall Street slides on mixed data, Best Buy drags

Wall Street slides on mixed data, Best Buy drags
Dow up in '09
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By Rodrigo Campos
NEW YORK (Reuters) - Stocks accelerated their drop on Tuesday as mixed economic data fed worries that the economic recovery may be anemic, while Best Buy's (BBY.N) disappointing results pointed to a still weak consumer.
While a rebound in May housing starts pointed to some stabilization in that sector and a smaller-than-expected rise in producer prices suggested inflation pressures were muted, another report showed industrial production logged a steeper-than-expected slide last month.
The Federal Reserve report also said May's capacity utilization rate for total industry, a measure of slack in the U.S. economy, slumped to its lowest level on records dating back to 1967.
"You're starting to get a host of mixed messages on the economy and for the market to move higher, you need decidedly more positive news," said David Chalupnik, head of equities at FAF Advisors in Minneapolis.
"We've moved from kind of all negative news to a mixture of better- and worse-than-expected news, and for the market to have a sustained improvement, we need consistently good news on the economic front."
Best Buy Co Inc (BBY.N), the largest U.S. consumer electronics retailer, posted a slide in same-store sales, a key measure of retail performance, and its shares dropped 7.1 percent to $35.93.
The news continued to point to a cutback in discretionary purchases. The S&P retail index .RLX tumbled 3.2 percent.
The Dow Jones industrial average .DJI dropped 77.69 points, or 0.90 percent, to 8,534.44, just off a drop of 1 percent to a session low of 8,521,37. The Standard & Poor's 500 Index .SPX fell 9.62 points, or 1.04 percent, to 914.10. The Nasdaq Composite Index .IXIC lost 13.86 points, or 0.76 percent, to 1,802.52.
Big industrial manufacturers' shares took a hit, with blue-chip 3M (MMM.N) down 1.7 percent at $58.32.
The broad S&P 500 index is still up 35.1 percent from the 12-year closing low of March 9, though its rally wilted in June.
(Editing by Jan Paschal)

Source: Reuters

Treasury won't pitch new insurance regulations: sources

Treasury won't pitch new insurance regulations: sources
By Patrick Rucker and Kevin Drawbaugh
WASHINGTON (Reuters) - The U.S. Treasury Department will not propose a new regulatory framework for the insurance industry when it outlines sweeping new rules for the financial services sector, sources familiar with the plans said on Tuesday.
Rep. Barney Frank, chairman of the House Financial Services Committee, said on Tuesday that the Treasury Department is not ready to weigh in on the key question of an 'optional federal charter' for insurers, said industry sources who heard him speak.
Speaking at a fundraiser hosted by the American Council of Life Insurers, Frank said that his committee would begin to debate key insurance questions around September, said the industry sources.
When the Treasury Department outlines its regulatory reform plans on Wednesday it is expected to fault the fragmented nature of insurance regulation. It may propose forming a federal clearinghouse to gather information about the sector.
The nation's 6,000 insurers are presently regulated by state and territorial governments. Congress and international industry groups have complained in the past about the absence of a central source for insurance market information.
Legislation has been introduced in Congress in recent years, but not approved, to create a federal insurance information office to provide advice and expertise to the administration and Congress and track industry developments.
At present, the insurance industry is regulated at the state level and many large insurance companies would prefer to answer to a single, federal overseer.
Many Democrats and Republicans have expressed general support for such a plan.
"Only ostriches can now deny the need for establishing a federal insurance resource center and a basic federal insurance regulatory structure," Rep. Paul Kanjorski said at a Tuesday hearing to discuss reform of the insurance industry.
Kanjorski, chairman of the House Financial Services panel on insurance, has introduced legislation that would create a federal insurance clearinghouse that could become a precursor to a federal charter.
(Reporting by Patrick Rucker and Kevin Drawbaugh; Editing by Andrea Ricci)

Source: Reuters

Large U.S. corporate bankruptcies accelerate

By Chelsea Emery
NEW YORK (Reuters) - Large U.S. corporate bankruptcies have accelerated in recent weeks as the U.S. economic slowdown claims more victims, according to industry data.
Eight public companies with assets of more than $1 billion have filed for bankruptcy protection in the last four weeks, compared with five multibillion-dollar company bankruptcies in the prior four-week period, according to data compiled by BankruptcyData.com and reviewed by Reuters.
That is the largest number of multibillion-dollar public company bankruptcies in a four-week period since the year began, according to the data.
BankruptcyData.com tracks companies that have some form of publicly traded security such as stocks or bonds.
"Corporate revenue is down in the United States and when topline revenue is down, there's less money to spread through expenses," said Brian Hamilton, co-founder and chief executive officer of financial information company Sageworks Inc.
The last few weeks have brought filings from long-term lodging facility operator Extended Stay Inc, which had assets of $7.13 billion before its bankruptcy, and theme park operator Six Flags Inc, which had assets of about $3.03 billion.
The largest Chapter 11 bankruptcy case so far this year is that of General Motors Corp, which filed for creditor protection on June 1, with assets of more than $91 billion.
The widespread credit crunch and economic slowdown have taken such a toll on corporations and individuals that bankruptcy courts are struggling to manage the load.
Barbara Lynn, chair of the bankruptcy committee of the Judicial Conference of the United States, recommended at a congressional hearing that Congress authorize 13 new permanent bankruptcy judgeships and make 22 temporary bankruptcy judgeships permanent.
"In the 12-month period ending March 31, 2009, there were approximately 1.2 million bankruptcy petitions filed -- nearly double the number of petitions filed in 2006," Lynn said.
MORE TO COME
Hamilton of Sageworks said he expects to see more bankruptcies for companies in the auto or real estate industries.
"We all know the automakers are having great difficulty, but if you're producing parts for the automakers you're also having difficulties," said Hamilton, adding that "anything around real estate is probably going to have difficulty for the latter part of 2009."
(Reporting by Chelsea Emery, with additional reporting by Diane Bartz in Washington, editing by Matthew Lewis)

Source: Reuters

Fed's Warsh warns of false optimism on U.S. economy

By Ros Krasny
NEW YORK (Reuters) - A top Federal Reserve official warned on Tuesday not to take recent gains across a range of asset prices as proof the U.S. economy is on the verge of a strong recovery.
"The panic's hasty retreat should not be confused with robust recovery," Federal Reserve Governor Kevin Warsh said in prepared remarks to the Institute of International Bankers annual meeting in New York.
"The rather indiscriminate bounce off the bottom -- across virtually all assets and geographies -- may be more indicative of a one-time reset, which may or may not be complete."
Warsh said private demand, the true arbiter of economic performance, "remains weak" even while government spending has surged, and the the jobless rate is likely to peak at a higher rate, and linger longer at those high rates, than in recent recessions.
"The 'jobless recovery' may prove to be a familiar and vexing refrain," he said.
"I would expect business capital expenditures and consumer spending to continue to disappoint for the next several quarters," Warsh added.
Rising exports will also not provide an easy way for the U.S. economy to return to growth, he said. "The global economy runs the risk of being mired in a period of slower growth for several years to come."
RISK OF RISKING RATES
Looking forward, the Fed "will not ... compromise price stability" by monetizing large U.S. budget deficits, he said, warning that higher interest rates were a risk.
"Financial markets may extract penalty pricing if fiscal authorities are unable to demonstrate a credible return to sustainable budgets," the policy-maker said.
The Fed will be operating at a time when political pressures call for "still more-aggressive macroeconomic policies," Warsh noted.
Warsh did not foresee the fast end to the recession that many economists now anticipate, but looked for the huge fiscal and monetary stimulus to finally kick in.
"On balance, I would not be surprised if these countervailing forces -- unprecedented public support and underwhelming private demand -- fight to a draw by the fourth quarter," he said.
STABILITY AT A COST?
Warsh also warned of a trade-off between policies designed to create stability, especially after the tumult of the past couple of years, and the overall prospects for the U.S. economy. Continued...
Source: Reuters

BRIC demands more clout, steers clear of dollar talk

BRIC demands more clout, steers clear of dollar talk
By Gleb Bryanski and Guy Faulconbridge
YEKATERINBURG, Russia (Reuters) - The leaders of the world's biggest emerging markets demanded a greater say in the global financial system on Tuesday at their first summit, but steered clear of any assault on the U.S. dollar's dominance.
The summit of Brazil, Russia, India and China (BRIC) ended with a short statement by Russian President Dmitry Medvedev and a communique which demanded more power for developing nations in international financial institutions and the United Nations.
But it did not mention two key Moscow initiatives -- a smaller role for the U.S. dollar and a supranational reserve currency although a Russian delegation source told Reuters that BRIC finance ministries and central banks were tasked to work on reserve currencies proposals.
"We are committed to advance the reform of international financial institutions, so as to reflect changes in the world economy," a joint communique issued by the BRIC countries said.
"The emerging and developing economies must have a greater voice and representation in international financial institutions," it said. "We also believe that there is a strong need for a stable, predictable and more diversified international monetary system."
In the run-up to the summit, the Kremlin said reserve currencies would be discussed and that the world needed more reserve currencies, including widened International Monetary Fund Special Drawing Rights (SDRs).
But China -- which holds nearly $2 trillion in foreign currency reserves -- was silent, indicating little unity on any potential challenge to the greenback.
Analysts say the BRIC four are united by strong economic growth in recent years but not much else. Their political standpoints and global priorities differ widely and diplomats question whether the forum can forge strong, united positions.
The U.S. dollar slid on Tuesday on Russia's comments, which came a day after Finance Minister Alexei Kudrin said the dollar's status as the world's main reserve currency would be unlikely to change in the near term.
"The existing set of reserve currencies, including the U.S. dollar, have failed to perform their functions," President Dmitry Medvedev told a news conference in the Russian city of Yekaterinburg, ahead of the BRIC summit.
"We will not do without additional reserve currencies," Medvedev said, adding that a new supranational reserve currency was also an option as the IMF's SDRs gained a bigger role.
BUILDING UP BRIC
The BRIC term was coined by Goldman Sachs economist Jim O'Neill in 2001 to describe the growing power of emerging market economies, but Tuesday's summit was an attempt to give the grouping a bigger voice in the world.
"We talked about making the decision-making process on the most important international issues -- on the economic agenda, the international political agenda on security -- fairer," said Medvedev in his final statement after the meeting.
"The BRIC summit must create the conditions for a fairer world order." Continued...
Source: Reuters

U.S. Chamber wants hands-off systemic risk regulator

WASHINGTON (Reuters) - The "systemic risk" regulator envisaged under a U.S. overhaul of financial regulations should not add an unnecessary layer of hands-on supervision, the U.S. Chamber of Commerce said on Tuesday.
The Chamber, the nation's largest business lobbying group, said it does not oppose a systemic risk regulator, but said it should take a bird's eye view of policing risk across the economy and not duplicate the work of other regulators.
"It's a very different thing to have the authority to identify risk than to have a regulator that's second guessing business," said David Hirschmann, president of the chamber's Center for Capital Markets Competitiveness.
The chamber laid out its views on reforms a day ahead of the Obama administration's planned announcement of its proposals on Wednesday.
Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers outlined the plan in the Washington Post on Monday, advocating stronger consumer and investor protections, new "systemic risk" policing powers for the Federal Reserve, and increased capital standards for financial firms.
Hirschmann said the chamber supports plans to require hedge funds to register with regulators, to add more transparency to the clearing of over-the-counter derivatives, and to increase the coordination of regulators.
But the chamber would not support the creation of a resolution authority that has broad power to unwind a troubled systemic financial firm or the creation of a financial products safety commission that "cannibalizes current regulatory expertise," Hirschmann said.
He also reiterated the chamber's long-standing view that it opposes "proxy access," a proposal moving its way through the U.S. Securities and Exchange Commission that would give shareholders greater say in nominating directors to public companies.
Regarding the systemic risk regulator, Hirschmann said the chamber likes the idea of a council of regulators with the Federal Reserve possibly leading the council, but does not want the body to duplicate the activities of other regulators.
"We need to overhaul the system," Hirschmann said. "We hope the administration is not listening to people who only want to tinker at the edges."
The chamber's views hold significant sway with Congress, which is hoping to pass sweeping legislation by the end of the year. But the overhaul faces many uphill battles, especially if lawmakers attempt to restructure regulatory agencies and strip responsibilities from them.
The administration has said it supports streamlining bank regulators, which could mean merging the Office of Thrift Supervision, which mainly regulates mortgage lenders, with the Office of the Comptroller of the Currency, which regulates some of the nation's largest banks.
It is less clear what will happen with the Securities and Exchange Commission and the Commodity Futures Trading Commission, which potentially have overlapping responsibilities, especially in the derivatives markets.
Hirschmann said lawmakers need to first fix the regulators by giving them more access to the markets and firms they regulate, but said "fewer regulators makes more sense than more."
(Reporting by Karey Wutkowski; Editing by Tim Dobbyn)

Source: Reuters

BRIC draft communique does not mention dollar: sources

BRIC draft communique does not mention dollar: sources
By Gleb Bryanski and Guy Faulconbridge
YEKATERINBURG, Russia (Reuters) - The draft communique of Brazil, Russia, India and China does not mention the role of U.S. dollar or a supranational reserve currency, sources with knowledge of the document told Reuters on Tuesday.
The sources said the draft communique calls for a "diversified, stable and predictable currency system" as well as for a bigger role by emerging economies in international financial institutions. The communique is yet to be signed by BRIC leaders.
The leaders of Brazil, Russia, India and China, known as BRIC, are seeking to use their economic clout to get a bigger say in how the world's financial system is run.
In a run-up to the summit, Russia said reserve currencies will be discussed at the meeting but China -- which holds nearly $2 trillion in foreign currency reserves -- was silent, indicating little unity on any potential challenge to the greenback.
"The existing set of reserve currencies, including the U.S. dollar, have failed to perform their functions," President Dmitry Medvedev told a news conference in the Russian city of Yekaterinburg, ahead of the BRIC summit.
"We will not do without additional reserve currencies," Medvedev said, adding that a new supranational reserve currency was also an option as the International Monetary Fund's Special Drawing Rights (SDR) gained a bigger role.
The U.S. dollar slid on Tuesday on the Russian comments, which came a day after Finance Minister Alexei Kudrin said the dollar's status as the world's main reserve currency would unlikely change in the near term.
Chinese President Hu Jintao has remained silent on the Kremlin's currency ideas which could ultimately indicate more about the divisions of the BRIC club rather than its strength.
The four BRIC countries, which account for 15 percent of the $60.7 trillion global economy, are expected to issue a communique after the summit on Tuesday and BRIC leaders are scheduled to speak to the media at 9:45 a.m. EDT.
The initial response from the developed world to Russia's initiative came from Japan where Finance Minister Kaoru Yosano reiterated his view that the dollar will remain the world's key reserve currency.
U.S. DOLLAR
Medvedev's chief economic aide, Arkady Dvorkovich, called on the International Monetary Fund (IMF) to expand the basket of SDRs to include the Chinese yuan, commodity currencies such as the rouble, Australian and Canadian dollars and gold.
The SDR is an international reserve asset allocated to member countries with its exchange rate determined by a basket of currencies, at the moment including dollar, euro, yen and sterling. A review of the basket is due in November 2010.
Dvorkovich said BRIC leaders will discuss new reserve currencies at the summit but called for caution in the currency debate, saying it was in no-one's interest to ruin the dollar. He said new reserve currencies were inevitable.
"The world economy will grow ... In the future we are sure growth will resume. This growing pie should be divided in a fairer way. We are not talking about excluding the dollar but the share of other currencies should increase," he said. Continued...
Source: Reuters

U.S. housing starts jump in May, inflation muted

U.S. housing starts jump in May, inflation muted
By Lucia Mutikani
WASHINGTON (Reuters) - New U.S. housing starts and permits surged in May from record lows, while producer prices rose at a slower pace despite higher gasoline prices, boosting prospects for the economy's recovery from recession.
The Commerce Department said on Tuesday housing starts jumped 17.2 percent to a seasonally adjusted annual rate of 532,000 units, as ground-breaking for multifamily units surged 61.7 percent after falling 49.4 percent in April.
A separate report from the Labor Department showed prices paid at the farm and factory gate increased by 0.2 percent versus a 0.3 percent April rise. Prices compared with a year ago notched their steepest falls since 1949.
U.S. stock indexes were slightly higher, while Treasury debt prices extended losses and the U.S. dollar fell against the euro.
"It's a sign that housing is stabilizing, but it's too early to say that we've seen the bottom. We'd probably need to see several months of stronger sales and better housing starts to give a convincing signal that we're going to see a housing recovery," said Gary Thayer, senior economist at Wells Fargo Advisors in St. Louis.
Housing market data, including new and existing home sales have shown signs of bottoming in the slide, but the surge in mortgages rates following a spike in Treasury debt yields could hamper the sector's recovery.
Benchmark government bond yields jumped to an eight-month high last week on concerns the government's effort to pull the economy out of a 18-month old recession would push the country budget deficit to unsustainable levels and undermine the value of its assets.
The housing market's collapse is the main trigger of the longest U.S. decline in output since the Great Depression. A survey on Monday showed U.S. home builder sentiment eased in June as builders and buyers fretted over rising mortgage costs.
Compared to the same period last year, housing starts dived 45.2 percent. New building permits, which give a sense of future home construction, rose 4.0 percent, the biggest advance since June last year, to 518,000 units in May.
Building completions fell 3.3 percent to 811,000 units, dragged down by single family homes which fell 9.4 percent to a record low 491,000 units. Completions for multifamily units rose 7.7 percent in May.
PRICE PRESSURES MUTED
The slower pace of increase in May producer prices was a relief for investors who of late have been preoccupied with inflation in the wake of the surge in government bond yields.
Compared with the same period last year, producer prices fell 5.0 percent for the largest decline since August 1949, the Labor Department said.
"This is still consistent with inflation being a very moderate risk at this time," said Zach Pandl, economist at Nomura Securities in New York.
Core producer prices, which exclude food and energy costs, dropped 0.1 percent in May compared with a forecast for a 0.1 percent rise, and after a 0.1 percent increase in April. This was the largest decline in monthly core producer prices since October 2006, when they fell 0.5 percent. Continued...
Source: Reuters

Best Buy sales and forecast disappoint, shares fall

Best Buy sales and forecast disappoint, shares fall
By Jessica Wohl
CHICAGO (Reuters) - Best Buy Co Inc posted lower first-quarter earnings and weaker-than-expected sales on Tuesday and also implied earnings for the rest of the year would be worse than forecast, dragging its shares down 3 percent.
The top U.S. specialty consumer electronics retailer said it gained market share after main rival Circuit City closed its doors. Still, fewer customers visited its U.S. stores in the quarter as consumers continue to cut back on discretionary purchases.
Best Buy saw demand rise when Circuit City shut down but has also faced increased pressure from Wal-Mart Stores Inc and others adding laptop computers, flat-screen televisions and other products to their stores.
The company's lower profit still topped analysts' expectations. Analysts said they were pleased to see improvements in gross margin and the market share gains.
Gross profit rose to 25.3 percent of revenue from 23.7 percent a year earlier, aided by the inclusion of Best Buy Europe and a 70-basis-point increase in gross profit in the U.S. business, where Best Buy had bettrol over promotions and lower freight and logistics costs.
"The sales environment hasn't necessarily gotten better and so it's going to be interesting to see how much Best Buy can continue to push on the gross margin and the expense line if sales deteriorate further from these levels," said Brad Thomas, an analyst with KeyBanc Capital Markets who has a "buy" rating on Best Buy shares.
Sales at stores open at least 14 months declined the most during May, which faced a tough comparison to a year earlier, when consumers came into Best Buy's stores to spend government stimulus checks.
The company estimated that as of April 30 its U.S. market share grew by nearly 2 percentage points from a year earlier.
Sales of gaming items, digital cameras, appliances and movies fell, while notebook computers, mobile phones and repair services sold well.
"They're definitely sort of playing defense right now, but when the consumer starts to come back they're going to be in a great position," said FTN Equity Capital Markets analyst Anthony Chukumba, who rates the shares "buy."
He said if and when consumers start shopping again, Best Buy could surpass its profit forecast for the year.
PROFIT FALLS
Best Buy said it earned $153 million, or 36 cents per share, in the fiscal first quarter ended on May 30, down from $179 million, or 43 cents per share, a year earlier.
Excluding restructuring charges, Best Buy said adjusted earnings fell to 42 cents per share from 43 cents per share. Analysts had expected Best Buy to earn 34 cents per share on that basis, according to Reuters Estimates.
Best Buy has cut jobs and slowed new store openings while also expanding sales of mobile phones as it works on remaining at the top of consumers' minds in the downturn. Continued...
Source: Reuters

GM says reaches deal to sell Saab to Koenigsegg

GM says reaches deal to sell Saab to Koenigsegg
By Veronica Ek and Sven Nordenstam
STOCKHOLM (Reuters) - Sweden's Koenigsegg, a niche manufacturer of some of the world's fastest and most expensive sports cars, has struck a deal to buy loss-making Saab Automobile from General Motors, the companies said on Tuesday.
In one of the most unlikely pairings in automotive history, the tiny sports car firm of 45 staff is expected to take over a company that employs around 3,400, a cherished Swedish brand that became a national icon for stability and reliability.
GM Europe said on its website the deal, set to close by the end of the third quarter, includes an expected $600 million of financing from the European Investment Bank, guaranteed by the Swedish government. Other terms were not disclosed.
"Additional support is to be provided by GM and Koenigsegg Group AB to fund Saab's operations and product program investments. This includes plans to launch several new products that are in the final stages of development," GM Europe said.
Like its U.S. parent, Saab has been in bankruptcy protection. It has said it needs $1 billion to see it through the crisis and has asked creditors to write off 75 percent of its 10.6 billion crown ($1.4 billion) debt, most of which is owed to GM.
Koenigsegg, which produces powerful roadcars that cost around $1 million, came out of nowhere to emerge as a front-runner to buy Saab.
But analysts are skeptical a tie-up makes sense, noting that Christian von Koenigsegg, founder of the firm bearing his name, has no evident experience owning or running a firm so large.
Last year Koenigsegg made 18 cars, Saab more than 93,000.
"There are no economies of scale between Saab and Koenigsegg. This is a constellation of buyers that probably have different interests than GM, which was driven by volume," said Mikael Wickelgren, an automotive expert at Skovde University, in southwestern Sweden not far from Saab's headquarters.
"This will be a business where one would assume that the owners want to chisel out a personality for Saab. The logic would be in the special and unique. Otherwise I cannot understand this deal."
Koenigsegg has backing from Norwegian entrepreneur Bard Eker, whose holding company owns 49 percent of the car maker.
Halldora von Koenigsegg, spokeswoman for the company and wife of its founder, said a memorandum of understanding had been signed but declined to comment further.
TWO DECADES UNDER GM
The deal would see Saab, which was put up for sale earlier this year, emerge from two decades under its U.S. parent. GM is already in the middle of offloading two other brands -- Saturn and its Hummer SUV line -- as it works to restructure its operations in bankruptcy.
Saab's roughly 220 U.S. dealerships have until Friday to sign an agreement which allow their franchises to be transferred to a new owner, a person familiar with the matter said. Dealers have been asked to prepare for an orderly wind-down should the automaker be unable to close a deal to sell the brand. Continued...
Source: Reuters

Eager hedge funds on hunt as investors take cover

MONACO (Reuters) - Investors say they are getting more promotional material from hedge funds than ever before, as funds seek to replenish assets withdrawn or lost because of negative performance during the financial crisis.
Investors such as family trusts, pension funds and high net worth individuals say the sales drive intensified in the run-up to the GAIM hedge fund industry conference which began here on Tuesday.
"Normally a few funds would contact me to arrange meetings before the conference, but this year about thirty called or emailed," said one manager from a family trust, who declined to be named because his employer prefers to remain anonymous.
"I wouldn't have time to see them all even if I wanted to."
Fund of hedge funds, too, say the hedge fund sales drive has intensified.
"The marketing has been much more aggressive this year, I have been bombarded. I had so many emails and calls I've had to be really selective about who I answer," Clariden Leu portfolio manager Mark Schindler told Reuters.
Several end investors also said they had eschewed a 'spot me', the hand-held device which GAIM conference organizers offer delegates so they can find people among the throng of hedge fund managers, investors and fund service providers.
"The problem is, everyone can locate you too. I have $10 million I want to invest, but I want to choose who I talk to," said a private investor. "If I had one of those things I'd be swamped by managers looking for an allocation."
"Things are even more hectic for the guys with $50 million -- everyone knows who they are."
MANAGERS MAKE THE RUNNING
One family trust manager said that in order to ensure she had control over post-conference contacts rather than ending up on numerous fund mailing lists, she had printed her business cards without her telephone number or email.
Paradoxically, in spite of the apparent step up in funds' marketing efforts, there are notably fewer hedge fund sales staff at the conference this year than in 2008, as a glance at the attendance list showed.
"You can see funds are cutting back, most of the sales people that were here last year have been left at home this year," said Schindler.
That means it is largely being left to the fund managers and executives to talk potential investors through their investment strategy, a role they have typically avoided in the past as a distraction from the day-to-day running of their funds.
"This year people who are actually managing the money have come to talk about their funds, it's something we rarely saw before," Schindler said.
This year, however, fund managers may find end investors more difficult to locate than in the past - even with the aid of a 'spot-me' device.

Source: Reuters

Smithfield Foods loss less than expected

By Bob Burgdorfer
CHICAGO (Reuters) - Smithfield Foods Inc (SFD.N) posted a smaller-than-expected quarterly loss on Tuesday on better-than-anticipated margins in its hog and pork businesses, but high feed costs weighed on results.
Profits on pork sales were down due to the recession, but the packaged meats segment of that unit had record earnings.
Influenza A H1N1, commonly called swine flu, did not affect the quarter, which ran through May 3, but did hurt business later in May. The flu's impact on domestic sales is lessening, but continues to restrict exports, specifically to China, the company said.
While feed costs should moderate going forward, Smithfield said it would reduce its sow herd an additional 3 percent following a previous 10 percent reduction.
"I am pleased to report that we are continuing discussions regarding refinancing with various lenders, well in advance of current maturities," Chief Executive C. Larry Pope said in a statement.
The company's financials and debt have been a concern of analysts and on Tuesday it reported more than $1.1 billion in liquidity at the end of the fiscal year and had pared debt by more than $890 million.
"Both the hog production and pork processing businesses posted better margins than we anticipated," Ken Goldman, J.P. Morgan analyst, said in a note.
The Smithfield, Virginia-based company reported a loss of $78.8 million, or 55 cents per share, for the fourth quarter that ended May 3, compared with a year-ago profit of $2.4 million, or 2 cents per share
Revenue was $2.85 billion, compared with the year ago's $2.87 billion.
This year's quarterly results include a one-time gain of $13.1 million for foreign tax credits.
Wall Street analysts on average expected a 62-cent-per-share loss, according to Reuters estimates.
For the fiscal year, the company lost $190.3 million, or $1.35 per share, its first yearly loss since 1975.
To cope with recent losses, the company reduced its sow herd, closed plants, restructured operations, and negotiated new debt agreements.
The hog unit, the largest in the United States, had an operating loss of nearly $171 million, compared with a year ago loss of $129 million. The pork unit, also the nation's largest, earned $110.7 million, down from $138.5 million a year ago.
Smithfield has warned that its hog unit would likely lose money for much of the current fiscal year, which began in May. Continued...
Source: Reuters

Etihad engine deal eclipses Airbus, Boeing

By Tim Hepher and Niclas Mika
PARIS (Reuters) - An engine deal from Abu Dhabi's Etihad Airways worth more than $5 billion could be the biggest news to come from this week's Paris Air Show, where the global recession has frozen sales of planes from Airbus or Boeing Co.
The two planemakers were riding high at the last Paris show, in 2007, when orders topped 2,700 planes for the year, yet Airbus arrived in Paris this week with a 2009 total of just 11 and Boeing had none.
Airlines faced with falling demand and tight credit are cancelling and deferring orders as fast as planemakers can book new ones.
Airbus sales boss John Leahy put on a brave face on Tuesday, sticking with a target of 300 orders for the year after Vietnam Airlines said it would buy 16 A321 single-aisle jets and signed a tentative deal for two A350s, which would take the deal's value to $1.9 billion.
"Of course, the figure could be less, but I'm keeping this target," Leahy said.
Boeing's commercial planes marketing chief Randy Tinseth told Reuters Television: "It's clearly a very difficult time for our airline customers in the light of the worldwide recession. We're working closely with them to better understand their needs and wants."
Etihad's deal for 123 engines from GE Aviation on Tuesday stemmed from orders for Airbus and Boeing planes it made last year and stole the headlines from the planemakers.
Etihad CEO James Hogan said the deal included 78 engines from GE to power Boeing 787s and 45 engines to go on Airbus A380 superjumbos from the Engine Alliance, a joint venture between GE and United Technologies Corp. unit Pratt & Whitney.
DELIVERIES ON TRACK
Boeing's Tinseth said the still tight credit markets were not expected to hit its delivery target of 480-485 planes this year but stopped short of forecasting for 2010.
"It doesn't look like we'll have any deliveries delayed or canceled as a result of airlines not being able to get funding or the price of that funding," Tinseth said, but added there was "a lot of volatility and uncertainty" in the future.
Planemakers enjoyed a huge upswing in aircraft deals that peaked in 2007, swelling their order backlogs and leaving Airbus and Boeing with several years of business to work through.
Airbus Chief Executive Tom Enders said his company would move ahead with its next model, the A350, telling reporters it would cost about 11 billion euros ($15.3 billion).
He said Airbus did not expect to have to offer buyers more than 1 billion euros in financing this year despite tough credit conditions.
"We will see in 2010 what the depth of the crisis is," Enders said. Continued...
Source: Reuters

Russia to urge caution on reserve FX at BRIC summit

Russia to urge caution on reserve FX at BRIC summit
By Gleb Bryanski and Chris Buckley
YEKATERINBURG, Russia (Reuters) - Russia will advocate a cautious approach to changing the system of global reserve currencies when the world's biggest emerging economies hold their first formal summit on Tuesday, the Kremlin's top economic aide said.
Brazil, Russia, India and China -- which account for 15 percent of the $60.7 trillion global economy -- will focus on ways to reshape the financial system after the economic crisis.
Russian President Dmitry Medvedev will raise the issue of a global reserve currency at the meeting, top economic aide Arkady Dvorkovich, said.
"There is an understanding that the last thing we need now is turmoil on financial markets," Dvorkovich told a news briefing. "No one wants to ruin the dollar, including us."
The meeting is scheduled to last about 2 hours.
Dvorkovich said BRIC leaders -- who control nearly $3 trillion in foreign currency reserves -- would also discuss the idea of investing their reserves in each other's currencies.
Before the BRIC meeting, Medvedev told the leaders of a summit of the Shanghai Cooperation Organization (SCO) -- which includes China -- that the grouping should think about using their national currencies for trade with each other.
"We must strengthen the international currency system not only by strengthening the position of the dollar, but also by creating new reserve currencies and possibly ... the creation of supranational payment tender and ways to make settlements."
Medvedev added that members should think about investing in each other's financial instruments.
Chinese officials have in recent days played down talk of a discussion on a new supranational reserve currency to reduce dependency on the U.S. dollar.
DRAGON
Goldman Sachs, which coined the BRIC term in 2001, now predicts that in 20 years' time the four countries could together dwarf the G7 and China's economy will overtake the United States in total size.
"These four countries are all quite influential in international economic development, and I think if in the meeting they raise some proposals and initiatives, that would be fair and reasonable," said Wu Hailong, a senior Chinese Foreign Ministry official.
"Especially, some countries have proposed establishing a super-sovereign currency, and I think their impetus is ensuring the security of each country's foreign currency reserves."
Detractors say the idea overstates their potential and that the four BRIC countries are as divided as they are united. Immediate agreement on practical steps among the members of this loose and untested bloc appears unlikely. Continued...
Source: Reuters

Boston Globe, union discuss concessions

Boston Globe, union discuss concessions
By Robert MacMillan and Erin Kutz
NEW YORK/WEYMOUTH, Massachusetts (Reuters) - The Boston Globe and a key union held marathon talks over employee concessions on Monday and will reconvene on Tuesday, raising the possibility of a new outcome to a bitter labor dispute at the 137-year-old daily newspaper.
The Globe and the Boston Newspaper Guild met on Monday to discuss what the paper's management said were ways to implement a 23 percent pay cut in union members' salaries aimed at cutting $10 million in costs at the paper.
The union said the meeting would give it a chance to offer a new concession package.
"Talks are continuing," guild President Dan Totten said in a statement. "They will resume again on Tuesday."
The Globe's owner, The New York Times Co, ordered the cuts after union members earlier this month rejected a package of concessions including an 8.4 percent pay cut, furloughs and curtailed retirement benefits.
The union said that many of its members resented the deep cuts that its employees were making while Times Co management and some Times employees did not have to sacrifice as much.
Globe officials had said that talks were at an impasse and it was going ahead with the 23 percent cuts. Both sides have stuck to their positions in public, but it is unclear whether they are now trying to move closer to a new resolution.
A Globe spokesman was not immediately available for comment.
The meeting, in Weymouth, Massachusetts, southeast of Boston, became another in a series of marathon discussions that the two sides have held in recent months. They began at 11 and ended more than 12 hours later.
On Tuesday, the Globe and the union are supposed to meet before the National Labor Relations Board for the first time. The union filed a complaint over the pay cuts with the NLRB, a government body that investigates unfair labor practices.
It is unknown whether the hearing will continue if the two sides are talking again about a new concession package.
The Times had sought $20 million in cost cuts at the money-losing Globe, including $10 million from the Boston Newspaper Guild. It has said the Globe will record an $85 million operating loss this year.
It has hired investment bank Goldman Sachs to field possible buyers for the paper.
(Reporting by Robert MacMillan in New York and Erin Kutz in Weymouth, Massachusetts; editing by John Stonestreet)

Source: Reuters

RIM aims to cross categories with BlackBerry Tour

RIM aims to cross categories with BlackBerry Tour
TORONTO (Reuters) - Research In Motion is adding another smartphone to its BlackBerry lineup as it aims to win market share among both executives and mainstream consumers despite tough economic conditions.
The new model is known as the BlackBerry Tour and falls somewhere between the BlackBerry Curve, which has proved very popular with consumers, and the BlackBerry Bold, which RIM has aimed at high-end corporate users.
RIM co-Chief Executive Jim Balsillie told Reuters in an interview that the new device will soon launch with Verizon and Sprint in the United States and Telus and BCE's Bell unit in Canada.
Even though the device isn't drastically different from many other BlackBerry handsets in appearance -- it has the familiar candy-bar shape with a full keyboard -- Balsillie said the Tour is a "big step forward".
It is what RIM calls a "world phone," which means it can easily access voice and data services on networks outside the user's home country. This has proven popular with business users in the past.
To appeal to the retail market, the Tour is loaded with multimedia features similar to those found in the BlackBerry Curve and Pearl, including a photo and video camera and media player.
Unveiling products that cross customer categories is proving increasingly important to Waterloo, Ontario-based RIM and it is continuing to make deer inroads into the broader retail market.
However, the company is also being careful not to alienate the corporate users who have been its mainstay and who rely on its smartphones to send wireless e-mail securely.
At the same time, rivals such as Apple and Palm in North America and Nokia in Europe are launching new products and aggressively pricing their phones to lure users.
(Reporting by Wojtek Dabrowski; editing by Peter Galloway)

Source: Reuters

Water risks ripple through the beverage industry

Water risks ripple through the beverage industry
By Martinne Geller
NEW YORK (Reuters) - At New York's Del Posto, diners can share a $130 entree of wild branzino fish with roasted fennel and peperonata concentrato and a $3,600 bottle of Dom Perignon. They cannot share a bottle of Perrier or San Pellegrino water.
The Italian restaurant backed by celebrities Mario Batali and Joseph Bastianich is one of several shunning bottled water, along with the city of San Francisco and New York state.
"The argument for local water is compelling and obvious," said Bastianich, who is phasing out bottled water across his restaurant empire, which stretches to Los Angeles.
"It's about transportation, packaging, the absurdity of moving water all over the world," he said.
As environmental worries cut into sales from traditionally lucrative bottled water, beverage companies such as Coca-Cola (KO.N), PepsiCo (PEP.N), Nestle (NESN.VX) and SABMiller (SAB.L) are becoming more attuned to the risks of negative consumer environmental perceptions.
Water is becoming scarcer, raising a fear that so-far manageable price increases could spike and leading drink companies to take action to maintain access to water and fight their image as water hogs.
"Water is the new oil," said Steve Dixon, who manages the Global Beverage Fund at Arnhold & S. Bleichroeder, repeating what has become a mantra as climate change and population growth tax water supplies.
"As an investor, I'm not concerned about the reality," Dixon said, guessing there will always be enough water overall. "But I'm aware of the perceptions ... and you can't totally shrug it off because perceptions are important."
About a third of the world's people now live in areas of water stress, said Brooke Barton, manager of corporate accountability for Ceres, a network of environmental groups and investors seeking to address sustainability challenges. By 2025, she said it will be more like two-thirds.
COST
Water is still cheap, but that is changing.
"(Water) is currently not a very big cost. The issue is where it will it go in the future," said Andy Wales, head of sustainable development for brewer SABMiller, which used 94.5 billion liters of water in its latest fiscal year. That works out to 4.5 liters for every liter of beer it made.
Water and energy combined only made up 5 percent of its costs, overshadowed by brewing ingredients, bottling materials and labor. Still the brewer said water costs at a Bogota, Colombia plant are rising some 12 percent a year from increased soil being washed into the river as cattle grazing upstream causes deforestation.
New water pricing schemes are emerging, such as the European Union's Water Framework Directive that will tax water from 2010 to encourage more sustainable use.
Some 70 percent of the water the world uses is for agriculture, while industry uses 20 percent. But any industry reliant on agriculture -- from meat to jeans -- has more to wade through than its own use. Continued...
Source: Reuters

Madoff customers swamp sentencing judge with letters

By Grant McCool
NEW YORK (Reuters) - Two weeks before the sentencing of Bernard Madoff for his $65 billion swindle, the judge who will decide his fate has received more than 100 angry letters from defrauded investors suggesting his punishment.
"Due to his egregious deeds, Mr Madoff deserves no better than to live under a bridge in a cardboard box, scavenging for his food and clothing, living the existence which he has undoubtedly relegated some unfortunate victims to," Robert Mick said in a letter addressed to U.S. District Judge Denny Chin, who will sentence Madoff on June 29 in Manhattan federal court.
"Instead, he will be allowed to serve his sentence in the relative comfort of prison, being guaranteed food, shelter, clothing, medical care and treatment," Mick, 52 a former customer who lives in Florida, said in the letter dated June 2.
Victims ranging in age from their 30s to their 90s sent emails and letters to the judge and the prosecutors, describing themselves as middle-class people who were duped and lost their life savings and health care in the fraud.
Some wrote their "American Dream" had been shattered by Madoff and the so-called "feeder" funds and his associates who handed over their money to him.
The former trader, investment manager and nonexecutive chairman of the Nasdaq stock market, pleaded guilty on March 12 to criminal charges including securities fraud, money laundering and perjury and he was immediately jailed. He confessed to running a massive worldwide Ponzi scheme of as much as $65 billion over at least 20 years.
A Ponzi scheme is one in which early investors are paid with the money of new clients.
The maximum possible penalties on 11 criminal charges add up to a sentence of 150 years and at the age of 71, Madoff will in all likelihood spend the rest of his life in prison.
Madoff's lawyer, Ira Lee Sorkin, declined comment on the letters and emails.
"We will address them in our submissions to the court or at the time of sentencing," Sorkin said.
Defrauded investor Judith Welling of New York equated Madoff's crimes to those of murderers.
She said Madoff should be incarcerated for the maximum period "in a prison commensurate with his crimes, i.e. with other convicted murderers for that is the ultimate result of his crimes."
Shirley Stone, 87, wrote that she and her 92-year-old husband fell foul of Madoff. "If I could I would charge him with heart break, sadness and tears."
Several correspondents asked the judge if they may speak at the sentencing, including Sheryl Weinstein, who says in an email that she has personally known Madoff for 20 years and she is not among the "anonymous victims" who never met him.
"I think the personal connection may be more difficult for him to ignore. My family and I have lost everything. He knows who we are." Continued...
Source: Reuters

Wall Street sees worst day in a month

Wall Street sees worst day in a month
Dow up in '09
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By Leah Schnurr
NEW YORK (Reuters) - U.S. stocks tumbled, marking
their worst slide in a month on Monday after regional manufacturing data dented optimism about the economy's health and resource shares fell alongside commodity prices.
After a series of signs the economy may be stabilizing, investors are looking for more definitive signals of its improving health. Analysts also said a pullback was unsurprising after a three-month rally.
Economists had expected to see slight improvement in the New York Fed's Empire State index, but the survey showed the factory sector shrank at a much more severe rate in June than the previous month.
"The bottom line is investors were starting to factor in a V-shaped recovery to the economy," said Alan Lancz, president of Alan B. Lancz & Associates Inc, in Toledo, Ohio.
"Not only do prices get ahead of themselves, but there's also a situation where if we don't get that V-shaped recovery, then you have more than just a temporary pullback. That's what might scare investors in the more immediate term."
Manufacturers' shares fell, including 3M (MMM.N), which was down 2.8 percent at $59.31, while Caterpillar (CAT.N) shed 4.3 percent to $36.12.
Oil prices fell from nearly an eight-month high after Russia expressed confidence in the U.S. dollar as the world's reserve currency, increasing the greenback's safe-haven appeal. Commodity prices and the dollar have moved inversely of late. Gains in the dollar makes oil more expensive for holders of other currencies.
Chevron (CVX.N) fell 2.2 percent to $71.08. The S&P energy index .GSPE slid 2.3 percent.
The Dow Jones industrial average .DJI fell 187.13 points, or 2.13 percent, to 8,612.13. The Standard & Poor's 500 Index .SPX lost 22.49 points, or 2.38 percent, to 923.72. The Nasdaq Composite Index .IXIC dropped 42.42 points, or 2.28 percent, to 1,816.38.
While the recent run-up in commodity prices had helped stocks extend their rally, there has also been concern that a surge in oil and other commodities could hamper any budding economic recovery. Higher energy costs are a drag on consumer spending and corporate profits.
In light volume, the indexes racked up their biggest one-day percentage loss since mid-May.
But the broad S&P 500 is still up 36.5 percent from the 12-year closing low of March 9.
A SPIKE IN VOLATILITY
The CBOE Volatility Index .VIX, known as Wall Street's fear gauge, closed above the 30 level for the first time since early June, suggesting more turmoil could be in store. The VIX jumped 9.5 percent to end at 30.81, its biggest percentage gain since late April. Continued...
Source: Reuters

Syms-Vornado win Filene's with $62.4 million bid

By Phil Wahba
NEW YORK (Reuters) - The second bankruptcy auction for off-price retailer Filene's Basement was won on Monday by a joint $62.4 million bid by discount clothier Syms Corp (SYMS.O) and developer Vornado Realty Trust (VNO.N), a restructuring expert advising Boston-based Filene's said.
The offer beat out a rival bid by Men's Wearhouse Inc (MW.N) and Crown Acquisitions, a retail real estate investment firm, and includes the leases for 23 Filene's stores, its trade name, inventory and distribution center, said Terry Corrigan of Abacus Advisors. The Men's Wearhouse-Crown bid was for $64.9 million and included the leases to 18 stores.
Syms shares rose 13.3 percent, or 84 cents, to $7.15 late Monday afternoon on Nasdaq. Vornado dropped 4.3 percent to $46.46 and Men's Wearhouse fell 2.9 percent to $19.21 on the New York Stock Exchange.
While the Syms-Vornado bid is lower in dollar terms, the assumption of more leases means fewer creditors can make claims to the money offered, leaving more to Filene's estate, Corrigan said.
"Assuming the bankruptcy judge approves the sale, this is a transformative deal for Syms in our view, it is double barreled, for their retail business and their owned real estate assets," said Andrew Sole, a managing member of Esopus Creek Advisors, which owns about 3.5 percent of Syms common stock.
A spokeswoman for Men's Wearhouse did not immediately respond to a request for comment.
Approval of the sale is subject to a hearing set for 5 p.m. EDT (2100 GMT) Wednesday before U.S. Bankruptcy Judge Mary Walrath in Delaware.
The auction resumed Monday morning in New York after no winner emerged last week, when the auction was ordered reopened by Walrath following objections to the original sale. A Men's Wearhouse affiliate won that original auction with a $67 million bid.
Crown, which had a placed a starting bid for $22 million in the original auction, had complained that the auction was not run in accordance with bid procedures.
Filene's Basement filed for Chapter 11 bankruptcy protection on May 4.
The case is In re: Filene's Basement Inc, U.S. Bankruptcy Court, District of Delaware, No. 09-11525.
(Reporting by Phil Wahba; Editing by Richard Chang)

Source: Reuters

Citigroup says TARP hurts ability to keep talent

Citigroup says TARP hurts ability to keep talent
By Steve Eder and Jonathan Stempel
NEW YORK (Reuters) - Citigroup Inc's (C.N) chairman said on Monday the bank may find it harder to retain and attract top employees while the bank is holding on to federal bailout money.
Richard Parsons, who was named chairman in January, made his comments five days after Citigroup undertook an exchange offer for preferred stock that is expected to leave the government with 34 percent ownership in the third-largest U.S. bank by assets.
Citigroup has taken $45 billion from the government's Troubled Asset Relief Program, and Parsons said there is no timetable for possible repayment. Banks receiving TARP money are subject to limits on what they can pay top employees.
"I do worry we could be competitively disadvantaged if we aren't able to find a way to quickly repay TARP," Parsons said at a forum sponsored by Time Warner Inc (TWX.N), where he used to be chief executive.
Citigroup was not among the 10 large companies that regulators last week authorized to repay their infusions, following the completion in May of "stress tests" to gauge banks' readiness for a deep recession.
Goldman Sachs Group Inc (GS.N), JPMorgan Chase & Co (JPM.N) and Morgan Stanley (MS.N) were among these 10 companies. Bank of America Corp (BAC.N), which also took $45 billion, was not.
Parsons said Citigroup recently filed with the government a capital plan that outlines its strategy to repay TARP.
He declined to provide specifics, saying "so much of it will depend on the cooperation of the markets."
Meanwhile, Citigroup's relationship with the Federal Deposit Insurance Corp is frayed, and according to reports the regulator has pushed to replace Chief Executive Vikram Pandit.
Speaking in Detroit at the National Summit, a gathering of executives and politicians, Pandit said he was unconvinced that capital markets would "go back to the world we were in" prior to the credit crisis.
Still, he said: "I know the slack's going to get picked up by the capital markets, and there are some encouraging signs of that happening."
The bank said it has cut 20 percent of a workforce that once numbered 375,000, and shrunk its balance sheet by nearly 25 percent.
The Obama administration is expected on Wednesday to outline an overhaul of the nation's regulatory framework for financial companies, including Citigroup and others considered too big to fail.
Writing in The Washington Post, Treasury Secretary Timothy Geithner and White House economic adviser Lawrence Summers said the plan would include more stringent capital and liquidity requirements for "the largest and most interconnected" firms, and greater oversight for those thought to pose systemic risk.
Parsons said Citigroup is now better-positioned to withstand another economic downturn. Continued...
Source: Reuters

Oil falls near 2 percent on firmer dollar

Oil falls near 2 percent on firmer dollar
By Edward McAllister
NEW YORK (Reuters) - Oil fell nearly 2 percent a barrel on Monday, extending its retreat from a near eight-month high as the dollar firmed and stock markets tumbled.
U.S. crude settled down $1.42 at $70.62, after optimistic signs of an economic recovery that could bolster flagging fuel demand sent crude above $73 a barrel last week.
Brent crude for July, which expired on Monday, settled down $1.48 at $69.44 a barrel.
Gains in the dollar, which makes oil more expensive for holders of other currencies, helped pressure prices. U.S. stocks slid as the fall in commodity prices drove a sell-off in the shares of natural resource companies. .N
The slumping factory sector in New York state shrank at a more severe rate than in May, the New York federal Reserve said on Monday, another cautionary note for the markets.
"The dollar started the early rout for crude futures, followed by the Fed's report of weaker New York state business conditions," said Phil Flynn, analyst at Alaron Trading in Chicago.
Oil has risen from around $51 at the end of April to hit near eight-month highs on Thursday on economic optimism, stirring concerns that speculation in the market has pushed oil up too high too fast.
French Economy Minister Christine Lagarde said G8 ministers want measures to curb volatility in oil markets, which put at risk growing signs that their economies are heading toward recovery.
OPEC Secretary General Abdullah al-Badri said that a too-quick rise in oil prices could harm a global economic recovery, though he said a price of $80 a barrel would not stem growth.
"Of course we do not want to see oil prices rising too rapidly and certainly not to harm growth in the global economy," al-Badri said in an email response to questions. "We need a stable oil price."
The head of the International Monetary Fund, Dominique Strauss-Kahn, also sounded a cautious tone on Monday, saying the worst of the global crisis was not yet over.
Traders were also keeping a close eye on post-election political turmoil in OPEC nation Iran. Armed men fired on a rally supporting defeated presidential candidate Mirhossein Mousavi on Monday, killing one and wounding many, a witness said.
"Certainly the events in Iran could postpone a correction if they take a turn for the worse," said Edward Meir from MF Global.
In Nigeria, the main militant group said on Monday it had sabotaged an oil pumping station in the Niger Delta operated by Chevron Corp (CVX.N), the fifth attack claimed against the U.S. company in less than a month.
In a preliminary Reuters poll ahead of weekly U.S. government inventory data on Wednesday, analysts expected a 1.8 million-barrel fall in crude oil inventories, a 600,000-barrel rise in gasoline stocks while distillate stocks likely added 900,000 barrels.
(Additional reporting by Gene Ramos and Robert Gibbons in New York, Alex Lawler in London, Chua Baizhen in Singapore; Editing by Lisa Shumaker)

Source: Reuters
 

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