slovakia

Slovakia’s housing market poised to recover

by admin on January 28, 2011

Things are getting better in Slovakia! Buoyed by the economic recovery, average housing prices fell only 1.36% (-2.41% in real terms) y-o-y to Q3 2010.

Continued here:
Slovakia’s housing market poised to recover

EU Ministers Vow to Avoid Continent-Wide Austerity

by on May 18, 2010

By James G. Neuger and Lorenzo Totaro May 18 (Bloomberg) — European finance ministers vowed to avoid a continent-wide austerity drive in the wake of Greece’s debt crisis that would risk thrusting the economy back into a recession and further undercut the euro. Only high-deficit countries including Greece, Spain and Portugal will be ordered to make additional deficit cuts, while budget policies will remain untouched in better-off nations such as Germany and Finland. “Countries with no or little fiscal space will need to frontload or accelerate measures, while others that have more fiscal space should maintain their less-restrictive fiscal stances for the sake of growth in Europe as a whole,” European Union Economic and Monetary Affairs Commissioner Olli Rehn told reporters in Brussels after a two-day meeting of European finance ministers. Concern that a Europe-wide spree of spending cuts would stifle the economic recovery contributed to the euro’s 3.4 percent drop against the dollar in the week since euro leaders offered an unprecedented 750 billion-euro ($926 billion) rescue package for debt-burdened governments. Finance chiefs meet again on May 21 to work out details of the essential part of the emergency lending mechanism, a 440 billion-euro fund backed by national guarantees that would buy distressed countries’ bonds. The ministers also gave preliminary approval to a draft law to tighten hedge-fund regulations that has drawn objections from the U.K. and the U.S. Global Recovery The euro fell today to the lowest against the dollar since April 2006, dropping as much as 0.7 percent to $1.2315. It later rebounded, trading at $1.2354 at 5:10 p.m. in London. The euro-area economy expanded 0.2 percent in the first quarter, faster than the 0.1 percent forecast by economists, as a global recovery boosted exports, offsetting consumers’ reluctance to increase spending. The International Monetary Fund said last month that the region’s economy may expand only 1 percent this year, even as the Washington-based fund raised its global growth forecast for this year to 4.2 percent from 3.9 percent, citing a faster expansion in emerging economies including China. Finance chiefs said there is no reason for global investors to desert the euro, touting the European Central Bank’s record in keeping inflation close to its 2 percent ceiling during the currency’s first 11 years. ‘Bad Thing’ “Bigger currency fluctuations are always a bad thing,” Luxembourg Finance Minister Luc Frieden said. “What is important for me is the confidence markets have to have in the euro. We proved through a series of political moves that we support the euro, that the euro has a future and won’t be dropped.” Spain unveiled on May 14 the biggest budget cuts in at least 30 years to bring down a deficit estimated by the EU at 9.8 percent of gross domestic product this year, more than triple the bloc’s 3 percent limit. Portugal followed a day later, pledging to slash wages and raise taxes to pare its projected 8.5 percent shortfall. Spain’s growth in 2011 “will be a few decimal points less” than the government’s current 1.8 percent forecast, though the economy will escape recession, Economy Minister Elena Salgado said. She stuck to estimates of a 0.3 percent contraction in 2010. ‘Necessary Steps’ Rehn hailed the “important, difficult but necessary steps” being taken in Spain and Portugal and said the finance ministers will pass judgment on them on June 7. He said the EU will evaluate the budget programs of all 27 governments in the bloc before the meeting next month. “We will take a look at all member states before June, both in terms of fiscal consolidation and growth prospects,” Rehn said in an interview in Brussels. “That will be the essence of the discussion in June.” Italian officials said on May 16 that the government may make an extraordinary reduction in a deficit projected by the EU to hit 5.3 percent of GDP this year. France, heading for an 8 percent deficit, is slated to submit its latest spending and tax plans to the EU this week. In a first discussion of improvements to Europe’s economic management, the ministers concluded that proposals for better coordination of national budgets, speedier penalties for violators and stricter monitoring of high-debt countries “go in the right direction,” said Luxembourg Prime Minister Jean- Claude Juncker , who chaired last night’s meeting of the euro- area ministers. 11-Year Lifespan Under the euro’s German-inspired Stability and Growth Pact, countries with deficits above the 3 percent limit face fines as high as 0.5 percent of GDP unless they get the budget back into compliance. No country has been fined during the euro’s 11-year lifespan. Germany and France teamed in 2005 to dilute the rules after overstepping the limits for three years in a row. Proposals by the European Commission would extend the threat of sanctions to cover countries that fail to push their budgets toward balance during “good economic times,” even if the deficit is below the threshold. Rehn also called for cutting off EU development-aid funds from the euro region’s poorest countries more quickly to penalize any deficit overruns. Currently six euro countries — Cyprus, Greece, Malta, Portugal, Slovakia and Slovenia — are eligible for the “cohesion” fund, available to countries with GDP per capita less than 90 percent of the EU average. Rehn said he got “by and large encouraging feedback,” while predicting some “shadow boxing” by governments over suspicions that the central EU authorities plan to intrude on national budget-setting. To contact the reporters on this story: James G. Neuger in Brussels at jneuger@bloomberg.net ; Lorenzo Totaro in Brussels at rbuergin1@bloomberg.net @bloomberg.net.

Link:
EU Ministers Vow to Avoid Continent-Wide Austerity

EU Vows to Avoid Continent-Wide Austerity, Keep Recovery Alive

May 18, 2010

By James G. Neuger and Rainer Buergin May 18 (Bloomberg) — European finance ministers vowed to avoid a continent-wide austerity drive in the wake of Greece’s debt crisis that would risk thrusting the economy back into a recession and further undercut the euro. Only high-deficit countries including Greece, Spain and Portugal will be ordered to make additional deficit cuts, while budget policies will remain untouched in better-off nations such as Germany and Finland. “Countries with no or little fiscal space will need to frontload or accelerate measures, while others that have more fiscal space should maintain their less-restrictive fiscal stances for the sake of growth in Europe as a whole,” European Union Economic and Monetary Affairs Commissioner Olli Rehn told reporters in Brussels after a two-day meeting of European finance ministers. Concern that a Europe-wide spree of spending cuts would stifle the economic recovery contributed to the euro’s 3.4 percent drop against the dollar in the week since euro leaders offered an unprecedented 750 billion-euro ($925 billion) rescue package for debt-burdened governments. Finance chiefs meet again on May 21 to work out details of the essential part of the emergency lending mechanism, a 440 billion-euro fund backed by national guarantees that would buy distressed countries’ bonds. The ministers also gave preliminary approval to a draft law to tighten hedge-fund regulations that has drawn objections from the U.K. and the U.S. Lowest Level The euro fell today to its lowest level against the dollar since April 2006, dropping as much as 0.7 percent to $1.2315. It later rebounded, trading at $1.2422 as of 2:45 p.m. in London. The euro-area economy expanded 0.2 percent in the first quarter, faster than the 0.1 percent forecast by economists, as a global recovery boosted exports, offsetting consumers’ reluctance to increase spending. The International Monetary Fund said last month that the region’s economy may expand only 1 percent this year, even as the Washington-based IMF raised its global growth forecast for this year to 4.2 percent from 3.9 percent, citing a faster expansion in emerging economies including China. Finance chiefs said there is no reason for global investors to desert the euro, touting the European Central Bank’s record in keeping inflation close to its 2 percent ceiling during the currency’s first 11 years. ‘Bad Thing’ “Bigger currency fluctuations are always a bad thing,” Luxembourg Finance Minister Luc Frieden said. “What is important for me is the confidence markets have to have in the euro. We proved through a series of political moves that we support the euro, that the euro has a future and won’t be dropped.” Spain unveiled on May 14 the biggest budget cuts in at least 30 years to bring down a deficit estimated by the EU at 9.8 percent of gross domestic product this year, more than triple the bloc’s 3 percent limit. Portugal followed a day later, pledging to slash wages and raise taxes to pare its projected 8.5 percent shortfall. Spain’s growth in 2011 “will be a few decimal points less” than the government’s current 1.8 percent forecast, though the economy will escape recession, Economy Minister Elena Salgado said. She stuck to estimates of a 0.3 percent contraction in 2010. Rehn hailed the “important, difficult but necessary steps” being taken in Spain and Portugal and said the finance ministers will pass judgment on them on June 7. Financial Backstop Italian officials said on May 16 that the government may make an extraordinary reduction in a deficit projected by the EU to hit 5.3 percent of GDP this year. France, heading for an 8 percent deficit, is slated to submit its latest spending and tax plans to the EU this week. In a first discussion of improvements to Europe’s economic management, the ministers concluded that proposals for better coordination of national budgets, speedier penalties for violators and stricter monitoring of high-debt countries “go in the right direction,” said Luxembourg Prime Minister Jean- Claude Juncker , who chaired last night’s meeting of the euro- area ministers. Under the euro’s German-inspired Stability and Growth Pact, countries with deficits above the 3 percent limit face fines as high as 0.5 percent of GDP unless they get the budget back into compliance. No country has been fined during the euro’s 11-year lifespan. Germany and France teamed in 2005 to dilute the rules after overstepping the limits for three years in a row. Sanctions Proposals by the European Commission would extend the threat of sanctions to cover countries that fail to push their budgets toward balance during “good economic times,” even if the deficit is below the threshold. Rehn also called for cutting off EU development-aid funds from the euro region’s poorest countries more quickly to penalize any deficit overruns. Currently six euro countries — Cyprus, Greece, Malta, Portugal, Slovakia and Slovenia — are eligible for the “cohesion” fund, available to countries with GDP per capita less than 90 percent of the EU average. Rehn said he got “by and large encouraging feedback,” while predicting some “shadow boxing” by governments over suspicions that the central EU authorities plan to intrude on national budget-setting. To contact the reporters on this story: James G. Neuger in Brussels at jneuger@bloomberg.net ; Rainer Buergin in Brussels at rbuergin1@bloomberg.net @bloomberg.net.

Read the full article →

European Ministers Vow to Avoid Continent-Wide Austerity Amid Debt Crisis

May 18, 2010

By James G. Neuger and Stephanie Bodoni May 18 (Bloomberg) — European finance ministers said Greece’s debt crisis won’t unleash a continent-wide austerity drive with the potential to tip the economy back into a recession and further undercut the euro. Only high-deficit countries including Spain and Portugal will be ordered to make additional deficit cuts, while budget policies will remain untouched in better-off nations such as Germany and Finland. “Not everyone will accelerate consolidation in a very uniform way,” European Union Economic and Monetary Affairs Commissioner Olli Rehn told reporters early today in Brussels after a meeting of ministers from the 16 euro countries. “That would lead to a very restrictive fiscal stance for the euro area as a whole, which would risk depressing economic growth .” Concern that tight fiscal policies would choke the economy contributed to the euro’s 3.4 percent drop against the dollar in the week since euro leaders offered a 750 billion-euro ($925 billion) rescue package for debt-burdened governments. The meeting resumed at 9 a.m. with all 27 European Union finance ministers set to adopt a draft law to tighten hedge-fund regulations that has drawn objections from the U.K. and the U.S. The euro fell today to its lowest level against the dollar since April 2006, slipping as much as 0.7 percent to $1.2315. It was unchanged at $1.2395 as of 8:20 a.m. in London. ‘Technical Details’ The core of the loan package, a 440 billion-euro fund backed by national guarantees that would buy distressed countries’ bonds, will be set up with the help of the European Investment Bank and will operate under Luxembourg law. The euro-area ministers will meet again on May 21 to work on “a certain number of technical details” of the unprecedented emergency lending mechanism, said Luxembourg Prime Minister Jean-Claude Juncker , who chaired last night’s Brussels meeting. The euro-area economy expanded 0.2 percent in the first quarter, faster than the 0.1 percent forecast by economists, as a global recovery boosted exports, offsetting consumers’ reluctance to increase spending. The International Monetary Fund said last month that the region’s economy may expand only 1 percent this year, even as the Washington-based IMF raised its global growth forecast for this year to 4.2 percent from 3.9 percent, citing a faster expansion in emerging economies including China. ‘Credible Currency’ Finance chiefs said there is no reason for global investors to desert the euro, touting the European Central Bank’s record in keeping inflation close to its 2 percent ceiling during the currency’s first 11 years. “The euro is a credible currency,” Juncker said. “Price stability has been fully maintained in the euro area over 11 years and will equally be maintained in the years to come. This is a major feature of the euro and a major asset for investors.” Spain unveiled on May 14 the biggest budget cuts in at least 30 years to bring down a deficit estimated by the EU at 9.8 percent of gross domestic product this year, more than three times the bloc’s 3 percent limit. Portugal followed a day later, pledging to slash wages and raise taxes to pare its projected 8.5 percent shortfall. “Every time you do some cuts in the budget it is possible to have a small contraction in the economy,” Spanish Economy Minister Elena Salgado said. “But we think this moment the balance has to be on the fiscal consolidation side.” Financial Backstop Juncker hailed the “courageous measures” and said the finance ministers will pass judgment on them on June 7. Italian officials said on May 16 that the government may make an extraordinary reduction in a deficit projected by the EU to hit 5.3 percent of GDP this year. France, heading for an 8 percent deficit, is slated to submit its latest spending and tax plans to the EU this week. In a first discussion of improvements to Europe’s economic management, the ministers concluded that proposals for better coordination of national budgets, speedier penalties for violators and stricter monitoring of high-debt countries “go in the right direction,” Juncker said. Under the euro’s German-inspired Stability and Growth Pact, countries with deficits above the 3 percent limit face fines as high as 0.5 percent of GDP unless they get the budget back into compliance. No country has been fined during the euro’s 11-year lifespan. Germany and France teamed in 2005 to dilute the rules after overstepping the limits for three years in a row. Sanctions Proposals by the European Commission would extend the threat of sanctions to cover countries that fail to push their budgets toward balance during “good economic times,” even if the deficit is below the threshold. Rehn also called for cutting off EU development-aid funds from the euro region’s poorest countries more quickly to penalize any deficit overruns. Currently six euro countries — Cyprus, Greece, Malta, Portugal, Slovakia and Slovenia — are eligible for the “cohesion” fund, available to countries with GDP per capita less than 90 percent of the EU average. To contact the reporters on this story: James G. Neuger in Brussels at jneuger@bloomberg.net ; Stephanie Bodoni in Brussels at sbodoni@bloomberg.net @bloomberg.net.

Read the full article →

Obama, Medvedev Move to Reduce Nuclear Arsenals in Arms Control Agreement

March 25, 2010

By Viola Gienger and Roger Runningen March 25 (Bloomberg) — President Barack Obama and his Russian counterpart Dmitry Medvedev may sign the first new treaty to reduce their nuclear arsenals in two decades as early as next month, the Kremlin and U.S. analysts said. Negotiators for the two sides have reached agreement on all elements for an accord, and the leaders probably will meet in Prague for the signing, a Kremlin official said yesterday on condition of anonymity in line with the government’s policy. The timing hadn’t been made final. The new Strategic Arms Reduction Treaty probably will lower the number of deployed warheads to 1,600 for each side, at least 25 percent below actual current levels, said Daryl Kimball , executive director of the Arms Control Association in Washington. Bombers and land- or submarine-based missiles that could carry the warheads probably will be capped at a level below 800, he said. Under the treaty that expired in December, each side is permitted a maximum of 2,200 warheads and 1,600 launch vehicles. Obama’s spokesman, Robert Gibbs , said there are “still some things that need to be worked out” before a deal on a replacement agreement is sealed. Obama and Medvedev probably will have another conversation in the next few days, he said. Officials in Prague said they have been notified that the two leaders are seeking to sign the accord in the Czech capital. U.S. Secretary of State Hillary Clinton said last week that a signing ceremony may be held “in early April.” Medvedev is scheduled to visit neighboring Slovakia on April 6-7. “I would anticipate that when we have something to sign, it will be in Prague,” Gibbs said yesterday. The timing would mark a year since Obama pledged in an April 5 speech in Prague to pursue a replacement for the treaty as a step toward the global elimination of atomic weapons. ‘Really Done’ “I think it’s really done,” Kimball said. “If you look at all the tea leaves in the last several days, the two sides have reached agreement on a critically important” treaty. Disagreements that had stalled a final accord since the basic warhead and launcher levels were settled last year appear to have been resolved, said Kimball and Steven Pifer , a former ambassador to Ukraine with expertise in arms control who is now an analyst at the Brookings Institution in Washington. Signals indicate “they’re pretty much done,” Pifer said. Missile Defense Negotiators got stuck on details including Russia’s demands that the treaty address U.S. plans for a missile-defense system in Europe. The final treaty probably will contain wording addressing the connection between the offensive weapons that the agreement primarily addresses and defensive arms that have the potential to undercut agreed levels, Kimball and Pifer said. Such language is contained in the 1991 accord and wouldn’t limit U.S. missile defense plans, they said. Senate Republicans would object to linkages similar to the one in the 1991 treaty, said Ryan Patmintra, a spokesman for Arizona Senator Jon Kyl . Kyl, who is the party’s whip, and Senate Republican Leader Mitch McConnell wrote Obama on March 15, saying lawmakers probably wouldn’t ratify a treaty that includes “unilateral declarations that the Russian Federation could use as leverage against you or your successors when U.S. missile defense decisions are made.” The two Republican leaders also tied ratification to submission of a plan to modernize the U.S. nuclear arsenal with more funding than the administration has requested. Medvedev and Obama have made signing a new nuclear arms accord a priority as they try to repair ties that sank to a post-Cold War low under Obama’s predecessor, George W. Bush . Breakthrough “This is a major diplomatic and domestic political breakthrough for the president at a critical time,” said Stephen Flanagan , vice president of the Center for Strategic and International Studies in Washington. “While the actual reductions achieved would be modest,” he said, it suggests a “reset in relations with Moscow” may lead to more weapons reductions in years ahead. Obama’s and Medvedev’s meeting may occur before the U.S. president’s summit on nuclear security April 12-13 in Washington. Flanagan said having a weapons reduction treaty in hand may help Obama push his broader non-proliferation agenda at the meeting. Obama yesterday privately briefed Senate Foreign Relations Committee Chairman John F. Kerry , a Democrat, and the panel’s top Republican, Senator Richard Lugar , on the arms-reduction talks. They will play key roles in Senate ratification. A treaty also would be subject to approval by the Russian parliament. “I assured the president that we strongly support his efforts, and that if the final negotiations and all that follows go smoothly, we will work to ensure that the Senate can act on the treaty this year,” Kerry, of Massachusetts, said in a statement. He plans to begin hearings sometime after Congress returns from its Easter holiday break. To contact the reporter on this story: Viola Gienger in Washington at vgienger@bloomberg.net . Roger Runningen in Washington at rrunningen@bloomberg.net

Read the full article →

Asia Stocks Rise as U.S. Reports Boost Confidence in Recovery; Yen Weakens

March 18, 2010

By Linus Chua and Saeromi Shin March 19 (Bloomberg) — Asian stocks rose, led by Japanese car and electronics makers, after reports on fewer U.S. jobless claims and higher manufacturing boosted confidence in the recovery of the region’s biggest export market. The yen weakened. The MSCI Asia Pacific Index gained 0.3 percent to 124.74 as of 12:10 p.m. in Tokyo. The yen weakened versus 12 of 16 major counterparts as the U.S. economic report curbed demand for Japan’s currency as a refuge. Futures on the Standard & Poor’s 500 Index were little changed. Investor sentiment was lifted as fewer Americans filed for jobless benefits and consumer prices remained unchanged, signaling that the world’s biggest economy will keep expanding without a pickup in inflation that would prompt higher interest rates. The optimism boosted shares of Asia’s biggest exporters including Sony Corp. and Honda Motor Co . “The job market has been the slowest to pick up among key U.S. economic data and its recovery should give a boost to the markets for the next two months,” said Kim Yong Tae , a Seoul- based fund manager at Yurie Asset Management, which manages the equivalent to $3.5 billion in assets. First-time jobless applications dropped by 5,000 to 457,000 in the week ended March 13, while consumer prices were unchanged in February, the first time they didn’t increase since March 2009, U.S. Labor Department figures showed. Japan, Korea Japan’s Nikkei 225 Stock Average rose 0.7 percent, leading Asia benchmarks higher. Sony , maker of the PlayStation 3 game machine, climbed 2.2 percent. Honda Motor , which gets 44 percent of its sales in North America, gained 1.9 percent. Toyota Motor Corp., the world’s largest automaker, added 1.7 percent. South Korea’s Kospi index increased 0.4 percent, led by Kia Motors Corp. after the nation’s second-largest automaker said it will add a 100 million-euro ($137 million) engine unit in Slovakia to boost production capacity in Europe. The stock climbed 4.4 percent. “The U.S. economy is improving day by day, and so is the global economy,” said Hiroichi Nishi , an equities manager at Nikko Cordial Securities Inc. in Tokyo. “People are beginning to expect better corporate earnings.” The yen traded at 90.44 to the dollar in Tokyo from 90.39 in New York Yesterday. It was at 123.11 yen per euro from 122.99. The euro advanced against all of its 16 major peers after yesterday tumbling 1 percent against the dollar, the most on a closing basis since Feb. 17, and 0.9 percent against the yen. Euro’s Slide The euro slid this week versus 15 of its 16 major counterparts as Greece’s prime minister set a one-week deadline for the European Union to craft a financial aid mechanism for the nation, challenging Germany and damping appetite for the 16- nation currency. The Swiss franc traded near its strongest level in 17 months against the euro as an official said policy makers can’t prevent the currency’s advance indefinitely. European equity funds posted net outflows of $1.06 billion in the week ended March 17, the biggest withdrawals since May 2009, EPFR Global said in a statement. Malaysia’s ringgit declined 0.2 percent to 3.3080 per dollar as concern about Greece also cooled demand for emerging- markets assets. The Thai baht dropped 0.1 percent to 32.34. “The uncertainty about Greece is bugging the market, and until the issue is resolved, the market will be on the defensive,” said Sim Moh Siong , a foreign-exchange strategist at Bank of Singapore Ltd. Rising Bond Risk The cost of protecting bonds from default increased in Japan and the rest of Asia, according to traders of credit- default swaps. The Markit iTraxx Asia index of 50 investment- grade borrowers outside Japan climbed 1 basis point to 94 basis points, Citigroup Inc. prices show. The Markit iTraxx Japan index rose 0.5 basis point to 123.5 basis points, according to Morgan Stanley prices. The increase suggests deteriorating perceptions of credit quality. Copper for three-month delivery advanced 0.3 percent to $7,514 a metric ton and aluminum declined 0.4 percent to $2,268 a ton. Copper may climb next week on speculation the dollar will weaken, boosting the appeal of metals priced in the U.S. currency, a survey showed. Crude oil dropped for a second day in New York amid concern fuel demand in the U.S., the world’s biggest energy consumer, was slipping and as a firmer dollar damped the investment appeal of commodities. Oil dropped 31 cents to $81.90 a barrel after the dollar gained against the euro on speculation Greece may fail to secure financial assistance from the European Union. To contact the reporter for this story: Linus Chua at lchua@bloomberg.net

Read the full article →

Eastern Europe, Central Asia Lead Equities in Year Since Post-Lehman Low

March 9, 2010

By Bloomberg News March 9 (Bloomberg) — Eastern European and Central Asian equity markets led gains in the year since global stocks sank to their lowest level after the bankruptcy of Lehman Brothers Holdings Inc. The Ukrainian Equities Index has surged more than fourfold since March 9 last year when global and U.S. benchmark indexes slid to lows. That’s the biggest gain among 93 global stock measures tracked by Bloomberg. Gauges in Kazakhstan, Romania, Russia, Hungary, Estonia and Cyprus have more than doubled. “Emerging markets have gotten over a bad bout of flu and are well on their way to recovery,” said Shane Oliver , Sydney- based head of investment strategy at AMP Capital Investors, which oversees about $90 billion. “For developed markets, the cancer has gone into remission.” The MSCI World Index , which tracks developed markets, has gained 70 percent since March 9 last year, when it sank to the lowest level in more than 13 years. Stocks had plunged worldwide after Lehman Brothers’ bankruptcy filing in September 2008 triggered panic in financial markets and pushed the global economy toward recession. The Standard & Poor’s 500 Index has advanced 68 percent in the past 12 months. Emerging markets are likely to perform better than those in developed nations given better growth prospects, Oliver said. Sri Lanka’s Colombo All-Share Index surged 135 percent in the past year with the end of the island’s civil war. Argentina’s Merval Index and Turkey’s ISE National 100 Index were also among the top 10 gainers. Skyworth Rallies Hong Kong-listed Skyworth Digital Holdings Ltd. , which sells color televisions in China, has surged more than 12-fold in the past year as China sought to boost consumer spending by giving rebates for household appliance purchases by residents in rural areas. Skyworth is the best gainer on the MSCI Emerging Markets Index and the MSCI Asia Pacific Index. Stock measures in Slovakia, Ecuador and Bahrain had the biggest declines in the past year. Acom Co., Japan’s third- largest consumer lender by market value, is the worst performer on the MSCI Asia Pacific Index. Its stock has declined 46 percent as profit plunged 92 percent in the nine months ended Dec. 31, after the company reduced loans and cut jobs to cope with tougher lending laws. — Chua Kong Ho . Editors: Reinie Booysen , Richard Frost To contact the Bloomberg News staff on this story: Chua Kong Ho in Shanghai at Kchua6@bloomberg.net

Read the full article →

Eastern Europe, Central Asia Lead Equities in Year Since Post-Lehman Low

March 9, 2010

By Bloomberg News March 9 (Bloomberg) — Eastern European and Central Asian equity markets led gains in the year since global stocks sank to their lowest level after the bankruptcy of Lehman Brothers Holdings Inc. The Ukrainian Equities Index has surged more than fourfold since March 9 last year when global and U.S. benchmark indexes slid to lows. That’s the biggest gain among 93 global stock measures tracked by Bloomberg. Gauges in Kazakhstan, Romania, Russia, Hungary, Estonia and Cyprus have more than doubled. “Emerging markets have gotten over a bad bout of flu and are well on their way to recovery,” said Shane Oliver , Sydney- based head of investment strategy at AMP Capital Investors, which oversees about $90 billion. “For developed markets, the cancer has gone into remission.” The MSCI World Index , which tracks developed markets, has gained 70 percent since March 9 last year, when it sank to the lowest level in more than 13 years. Stocks had plunged worldwide after Lehman Brothers’ bankruptcy filing in September 2008 triggered panic in financial markets and pushed the global economy toward recession. The Standard & Poor’s 500 Index has advanced 68 percent in the past 12 months. Emerging markets are likely to perform better than those in developed nations given better growth prospects, Oliver said. Sri Lanka’s Colombo All-Share Index surged 135 percent in the past year with the end of the island’s civil war. Argentina’s Merval Index and Turkey’s ISE National 100 Index were also among the top 10 gainers. Skyworth Rallies Hong Kong-listed Skyworth Digital Holdings Ltd. , which sells color televisions in China, has surged more than 12-fold in the past year as China sought to boost consumer spending by giving rebates for household appliance purchases by residents in rural areas. Skyworth is the best gainer on the MSCI Emerging Markets Index and the MSCI Asia Pacific Index. Stock measures in Slovakia, Ecuador and Bahrain had the biggest declines in the past year. Acom Co., Japan’s third- largest consumer lender by market value, is the worst performer on the MSCI Asia Pacific Index. Its stock has declined 46 percent as profit plunged 92 percent in the nine months ended Dec. 31, after the company reduced loans and cut jobs to cope with tougher lending laws. — Chua Kong Ho . Editors: Reinie Booysen , Richard Frost To contact the Bloomberg News staff on this story: Chua Kong Ho in Shanghai at Kchua6@bloomberg.net

Read the full article →

Eastern Europe Bolstered by Greek Woes as Lower Deficits Lure Pimco, HSBC

February 18, 2010

By Laura Cochrane and Ye Xie Feb. 18 (Bloomberg) — Investors are returning to eastern Europe a year after the region’s banking crisis triggered a global market selloff, as concern Greece may be unable to fund itself bolsters countries with lower borrowing needs. Pacific Investment Management Co., manager of the world’s largest bond fund, said it added Polish debt holdings last week and HSBC Holdings Plc, Europe’s biggest bank by market value, said Hungary’s stocks are a “buying opportunity.” Czech, Turkish and Russian bonds are poised to outperform because the countries will have about a third of the debt levels of Greece and Italy by 2011, according to Credit Agricole Cheuvreux, the brokerage unit of France’s largest bank by branches. Investors are seeking to capture the cheapest valuations in seven months for the MSCI EM Eastern Europe equity index relative to the MSCI World Index and the widest gap in bond yields over U.S. Treasuries since December. Hungary, the first European Union member to be bailed out by the International Monetary Fund during the credit crisis, has halved its budget gap since 2006 while Poland has begun a record $10 billion of state asset sales to help fund its shortfall. “We’ve seen the first wave of contagion in which the market was non-discriminating,” said Agnes Belaisch , a London- based emerging-market strategist at Threadneedle Asset Management Ltd. and former senior economist at the IMF. “The second wave, which is happening already, is differentiation.” Greece Strikes Greece’s crisis, which triggered the MSCI world index’s biggest slide in nine months on Feb. 4 as labor unions threatened strikes to block spending cuts, has left the eastern Europe gauge down 3.5 percent this month and cut valuations to an average of 8.5 times 2010 earnings estimates. That compares with 14.3 times expected profit for companies in the MSCI world index , which rose 0.6 percent this month, Bloomberg data show. Poland’s WIG20 index traded at a nine-month low of 11.9 times earnings on Feb. 11 and was at 12.5 times yesterday. The valuation on Hungary’s BUX index dropped to 10.6 times earnings on Feb. 11 and was 11.1 times yesterday. Declines in bonds sold by the region’s governments lifted yields to as high as 2.57 percentage points above similar- maturity U.S. notes on Feb. 5, the widest spread in two months, according to JPMorgan Chase & Co.’s EMBI+ emerging-market bond indexes. The gap was last at 2.38 percentage points. “Investors are looking for reasons to flip their positions,” said Michael Ganske , head of emerging-market research at Commerzbank AG in London. Foreign Mortgages Eastern Europe’s finances have improved from a year ago when a 40 percent plunge in the zloty against the Swiss franc in the seven months to Feb. 17, 2009, sparked doubts borrowers could repay their foreign-currency loans. Poland’s Financial Supervisory Commission estimates 65 percent of the country’s mortgages are in francs or other foreign currencies. Investor concern drove the MSCI eastern Europe index down 15.7 percent in January 2009 and 6.3 percent in February. In the past year, the zloty has gained 23 percent against the franc as the IMF provided a $20.6 billion credit line for Poland. The forint strengthened 14.3 percent versus the euro in the last 12 months as the government cut its budget deficit to an estimated 3.8 percent of gross domestic product from 9.3 percent in 2006 to comply with the terms of loans from the IMF, World Bank and EU totaling about $27 billion. Poland, the only EU country to avoid a recession last year, is targeting 3 percent economic growth in 2010 from 1.7 percent in 2009. The largest of the EU’s eastern European members is offering stakes in state-owned utilities, insurers and chemical producers to quadruple asset sales this year and plans to cut its budget gap to 2.9 percent of GDP in 2012 to meet EU criteria for adopting the euro. ‘Well Run Economy’ Poland “is a well run economy,” Michael Gomez , co-head of emerging markets at Pimco in Newport Beach, California, said in a Feb. 11 interview on Bloomberg Television. “It has a manageable debt load and fiscal deficit.” The country’s debt is equivalent to 51.7 percent of GDP, less than half the level of Greece and below the euro zone average of 78.2 percent, European Commission data for 2009 show. Hungary pared its estimate for the economy’s contraction in 2010 to 0.2 percent from 0.3 percent this week. It’s targeting a budget deficit of 2.8 percent of GDP next year and 2.5 percent in 2012, according to the finance ministry’s euro convergence report on Jan. 29. Investors should own Hungarian stocks in “any way, shape, or form” as the process to adopt the euro will lead to lower capital costs and longer-term growth prospects, Bank of America- Merrill Lynch wrote in a research note Feb. 11. OTP Bank Plc , Hungary’s largest lender, Magyar Telekom, the former phone monopoly, and Mol Nyrt. , Hungary’s largest refiner, will lead equity gains, the Charlotte, North Carolina-based bank said. Lagging China “Even emerging Europe’s most-indebted country, Hungary, looks better than the eurozone periphery, where the pain will come over the next two years,” said Simon Quijano-Evans , head of emerging economics and strategy at Cheuvreux in Vienna. “Eastern Europe has already had stage one of the recovery, EU and IMF support packages are in place and the governments have already started to adjust. Eurozone periphery issues are only just starting to be dealt with now.” Eastern Europe’s economic growth still lags the biggest developing economies. China’s economy will grow 9.5 percent this year and Brazil’s 4.8 percent, according to the average of economist forecasts on Bloomberg. India’s will expand 6.4 percent, the IMF predicts. ‘Right Medicine’ Slower economic growth will cause eastern Europe’s bonds to underperform securities in Asia and Latin America, said Nick Pifer , head of global fixed income at RiverSource Investment in Minneapolis, which manages $95 billion. He’s avoiding debt in Hungary, citing lower demand from the euro region for its exports. “It’s like a rollercoaster ride” in Hungary, said Pifer. The Czech economy unexpectedly contracted 0.6 percent in the fourth quarter from the previous three months, returning the economy to the brink of recession after two quarters of growth, according to government data released Feb. 12. Hungary, Romania and Slovakia all remained in recession, according to preliminary data released the same day. Greece’s budget deficit is set to widen to 12.8 percent in 2011, triple the EU limit of 3 percent of GDP, according to European Commission forecasts. Euro-region finance ministers this week asked Greece to prepare additional deficit-cutting measures in case the government can’t show sufficient progress in reducing the shortfall by a March 16 progress review. Spain had a budget shortfall equivalent to 11.2 percent of GDP last year as unemployment doubled to 19.5 percent, while Portugal’s deficit reached 8 percent. Eastern European bonds will outperform securities in Asia and Latin America because the countries are “tackling their imbalances,” Threadneedle’s Belaishch said. “The market will reward them because they are taking the right medicine.” To contact the reporters on this story: Laura Cochrane in London at lcochrane3@bloomberg.net Ye Xie in New York at yxie6@bloomberg.net

Read the full article →

Neuner, Ferry Win Biathlon Gold, Snow Delays Skiing

February 17, 2010

By Erik Matuszewski and Michael Buteau Feb. 16 (Bloomberg) — Magdalena Neuner of Germany won the women’s 10-kilometer biathlon pursuit and Bjorn Ferry of Sweden captured the men’s 12.5-kilometer pursuit today at the Vancouver Winter Olympics, where heavy snow postponed the men’s super- combined Alpine ski race. Neuner, 23, finished in 30 minutes, 16 seconds, a margin of 12.3 seconds in front of Slovakia’s Anastazia Kuzmina, who had won gold in the women’s 7.5-kilometer sprint. Marie Laure Brunet of France took the bronze at Whistler Olympic Park. Ferry, 31, pulled away from Christoph Sumann of Austria and France’s Vincent Jay after the event’s final shooting stage and finished in 33 minutes, 38.4 seconds. Sumann, who passed Jay over the closing stretch, crossed the line 16.5 seconds behind Ferry. It was the second medal for Jay, who won the men’s 10- kilometer sprint on Feb. 14. While today’s events in biathlon — which includes cross- country skiing and target shooting with a rifle — went off as scheduled in Whistler, British Columbia, Didier Defago of Switzerland had to wait for a chance at his second Olympic gold. The men’s super-combined event was postponed due to heavy snow at the Alpine skiing venue two hours north of Vancouver. Oldest Champion Defago, 32, became the oldest Olympic downhill winner yesterday, defeating two-time World Cup champions Aksel Lund Svindal of Norway and Bode Miller of the U.S. He was the first Swiss skier to win the downhill since Pirmin Zurbriggen in 1988 at the Calgary Games. The downhill had been pushed back from Feb. 13 because of poor conditions, including rain and fog, which have postponed at least five Alpine events and training sessions at Whistler Creekside. The super-combined includes one downhill run and one slalom run. The downhill portion now will be staged on Feb. 21, followed by the slalom run two days later. Training for the women’s downhill tomorrow also was canceled, another delay for American Lindsey Vonn , a two-time World Cup overall champion recovering from a shin injury. Switzerland has a Winter Games-best three gold medals after wins yesterday by Defago and Dario Cologna in the men’s 15- kilometer cross-country ski race. The U.S. leads all countries with eight medals, having picked up its second gold yesterday when Seth Wescott passed Canada’s Mike Robertson on the penultimate jump to successfully defend his title in men’s snowboard cross. More Medals Germany and France have six medals, followed by Canada with four, then Switzerland, Norway, South Korea and Italy with three. The super-combined competition had been one of five medal events scheduled for today. Lindsey Jacobellis of the U.S. aims to improve on her silver medal in the women’s snowboard cross in Turin, where she fell on the next-to-last jump while attempting a celebratory trick with a large lead. Jacobellis lost her balance, fell on her back was passed for the gold by Switzerland’s Tanja Frieden. Biathlon, Luge Rain and fog at Cypress Mountain pushed back the start of the by an hour. Weather problems also have forced organizers to refund 28,000 standing-room tickets for six snowboard events, at a cost of about $1.4 million, according to Caley Denton, head of ticketing for the Vancouver Olympic Committee. The Canadian men’s ice hockey team has an opening-round game today against Norway. Canada is seeking to become the first host country to capture an Olympic gold medal in hockey since 1980, when the U.S. won at Lake Placid, New York. “This event is so big and the guys want to do so well, they’ll do whatever they have to,” said former Detroit Red Wings captain Steve Yzerman , now executive director of the Canadian hockey team. “I believe it comes down to character. And we have 23 guys that have great character.” To contact the reporter on this story: Erik Matuszewski in Vancouver, at matuszewski@bloomberg.net and Michael Buteau in Vancouver, at mbuteau@bloomberg.net .

Read the full article →

U.S. Tops Olympic Standings; Canada Is Denied Gold at Home

February 14, 2010

By Erik Matuszewski and Christopher Donville Feb. 14 (Bloomberg) — Freestyle skier Hannah Kearney denied Canada its first Olympic gold medal on home soil and vaulted the U.S. atop the medal standings after the first day of competition at the Winter Games in Vancouver. Kearney beat Canada’s defending Olympic champion Jennifer Heil , 26, on the final run of the women’s moguls competition to win the last of yesterday’s five gold medals. “I heard the roar of the crowd when Jenn got her score, so I knew I had to go for it,” said Kearney, 23, who was the favorite at the 2006 Games in Turin and failed to qualify for the finals. “I feel for her but I wanted that medal as well.” Canada failed to win a gold medal the previous two times it hosted the Olympics — the 1976 Summer Games in Montreal and the 1988 Winter Games in Calgary. The U.S. tops the Olympic standings with four medals, while South Korea with two is the only other country with multiple medals. Apolo Anton Ohno took the silver medal behind South Korea’s Jung-Su Lee in the men’s 1,500-meter short track speedskating, tying Bonnie Blair for the most medals by an American athlete in the Winter Olympics. Dutch speedskater Sven Kramer set an Olympic record in winning the men’s 5,000 meters, while Anastazia Kuzmina gave Slovakia its first Winter gold by beating out Germany’s Magdalena Neuner in the women’s 7.5-kilometer biathlon sprint. First Medal Swiss ski jumper Simon Ammann won the Games’ first gold medal in the men’s normal hill event as competition began a day after Nodar Kumaritashvili, a luger from the country of Georgia, was killed in a high-speed crash on a training run. Five more medals are scheduled to be decided today, when Norwegian biathlete Ole Einar Bjoerndalen seeks his 10th career Olympic medal as he competes in the men’s 10-kilometer sprint. Norwegian cross-country skier Bjorn Daehlie holds the Winter Games-record of 12 medals. The men’s luge title will be decided at Whistler’s sliding center. Though an investigation found no track deficiencies, organizers shortened the course by 175 meters (577 feet) to reduce speeds and offer “emotional” support to competitors after Kumaritashvili’s death. Gold medals are also scheduled to be awarded in women’s 3,000-meter speedskating, men’s freestyle skiing moguls and men’s Nordic combined, where brothers Jan and Tommy Schmid will compete for different countries. Born to Swiss parents in Norway, Tommy represents Switzerland while Jan switched his allegiance to Norway after competing for the Swiss in 2006. Race Postponed The women’s super-combined scheduled for today was postponed until Feb. 18 because of poor weather at the Whistler Creekside Alpine Skiing venue. The delay was welcomed by two- time World Cup champion Lindsey Vonn of the U.S., who is trying to recover from a deep bruise in her right shin. “I’m lucking out pretty heavily because of all the cancellations,” said Vonn, who is scheduled for a downhill training run today. “Normally I would be disappointed, but for my shin I think this is the best possible scenario.” The men’s downhill that had been scheduled for yesterday was pushed back to tomorrow, as unseasonably warm temperatures have produced more rain than snow near Vancouver. Outside the Olympic venues, about 200 demonstrators clashed with police in downtown Vancouver as they marched to protest against the Winter Games, resulting in several arrests, local police said. Protesters smashed windows and spray painted vehicles, Vancouver’s police department said in an e-mailed statement today. There were no confirmed injuries, police said. Heil’s Silver In yesterday’s final event, Heil took the lead in the women’s moguls with a score of 25.69 on the next-to-last run as Kearney waited at the top of the hill. Kearney then raced down the moguls course, executing a back flip and a 360-degree spin, to take the gold medal with 26.63 points. American Shannon Bahrke claimed the bronze. Heil said she wasn’t disappointed with second place. “I did what I wanted to do and I’m really proud,” Heil told reporters. “I felt like I was standing on the shoulders of so many Canadians. I felt like I had their wings on my back.” South Korea missed a 1-2-3 finish in short-track speed skating as Ho-Suk Lee and Si-Bak Sung collided and crashed on the last turn of the 1,500m to give Ohno the silver. American J.R. Celski took the bronze. “The whole race there was a lot of contact, bumping, grabbing. It was a crazy race,” Ohno said during a news conference. “Typically in short track, there’s not supposed to be any contact, or very little. But it was an aggressive race. It was a fast race, and it turned out very well (for me).” To contact the reporters on this story: Erik Matuszewski in Vancouver, at matuszewski@bloomberg.net Christopher Donville in Vancouver at cjdonville@bloomberg.net .

Read the full article →

Kramer Sets Olympic Speedskating Record; Slovakia Gets 1st Gold

February 13, 2010

By Christopher Donville and Erik Matuszewski Feb. 13 (Bloomberg) — Dutch speedskater Sven Kramer set an Olympic record in winning the men’s 5,000 meters, one of three gold medals awarded in Vancouver as competition began one day after the death of a Georgian luger in a training run. Kramer, 23, was the pre-race favorite and claimed his first Olympic gold medal in a time of six minutes, 14.60 seconds. He shaved six-hundredths of a second off the previous record set by fellow Dutch skater Jochem Uytdehaage at the 2002 Salt Lake City Games. Swiss ski jumper Simon Ammann won the Games’ first gold medal in the men’s normal hill event, while Anastazia Kuzmina gave Slovakia its first Winter gold by beating out Germany’s Magdalena Neuner in the women’s 7.5-kilometer biathlon sprint. The opening ceremony last night was dedicated to Nodar Kumaritashvili, a luger from the country of Georgia who died in a high-speed crash on a training run. The ceremony was viewed by 6.7 million people in the U.S., the biggest audience ever for a non-U.S. Winter Olympics, NBC said. “With Nodar Kumaritashvili in our hearts, I commit that the men and women of Vancouver 2010 are ready to deliver the performance of a lifetime,” said John Furlong , the head of the Vancouver Olympics committee, in his speech to more than 60,000 people at B.C. Place stadium. Kumaritashvili, 21, died when he was thrown off his sled and collided with an unpadded metal support pole outside the track in Whistler, British Columbia. Paying Tribute Flags were lowered to half-staff around Vancouver in honor of Kumaritashvili, and International Olympic Committee President Jacques Rogge paid tribute to the luger in his speech. The crowd at the opening ceremony gave members of the Georgian Olympic team a standing ovation when they entered the stadium wearing black armbands. This is the second straight Olympics marred by a death before the start of competition. At the 2008 Beijing Summer Games, the father-in-law of U.S. volleyball coach Hugh McCutcheon was stabbed to death while visiting a Beijing tourist site with his wife and daughter. “It is a bit difficult to remain composed,” Rogge told reporters in Vancouver soon after the crash. “This is a very sad day. The IOC is in deep mourning. I have no words to say what we feel.” The luge training runs resumed this morning after International Luge Federation officials completed their investigation into Kumaritashvili’s crash and said there were no “track deficiencies.” Starting Positions Starting today, the men will begin their races further down the hill at the women’s starting line to reduce speed and provide “emotional” support for lugers after the death. Women lugers race about 10 kilometers (6 miles) an hour slower than men, officials said. “The track is fast, but it is not too fast,” said Josef Fendt , the president of the International Luge Federation. Lugers have been racing at about 137 kilometers an hour, he told reporters today in Whistler. This year’s Games also have been plagued by unseasonably warm temperatures that have produced more rain than snow near Vancouver, forcing organizers to postpone the start of some events. Today’s Alpine skiing men’s downhill at Whistler was postponed to Feb. 15, while the women’s super-combined race scheduled for tomorrow was pushed back to Feb. 18. In the first medal event, Switzerland’s Ammann won his third Olympic ski jump title by recording the longest distances in both rounds. Ammann claimed both individual events at the 2002 Salt Lake City Games. World Champion Poland’s Adam Malysz took the silver medal and Austria’s Gregor Schlierenzauer earned bronze. Speedskater Kramer, the world champion in the 5,000 meters, won by more than two seconds to set the Olympic record and improve on his silver medal performance from Turin. South Korea’s Seung-Hoon Lee took the silver medal and Russia’s Ivan Skobrev received the bronze. Defending Olympic champion Chad Hedrick finished 11th and fellow American Shani Davis was 12th. Kuzmina gave Slovakia its second medal ever in the Winter Games by beating out pre-race favorite Neuner in the 7.5km biathlon sprint with a time of 19 minutes, 55.6 seconds. Neuner took the silver with France’s Marie Dorin getting the bronze. Outside the Olympic venues, about 200 demonstrators clashed with police in downtown Vancouver as they marched to protest against the Winter Games, resulting in several arrests, local police said. Protesters smashed windows and spray painted vehicles, Vancouver’s police department said in an e-mailed statement today. There are no confirmed injuries, police said. To contact the reporters on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net . Erik Matuszewski in Vancouver, at matuszewski@bloomberg.net

Read the full article →

Skype Rival Fring of Israel Lures Mobile-Phone Users to Free Video Calls

February 8, 2010

By Gwen Ackerman Feb. 8 (Bloomberg) — Israeli startup Fring , backed by founders of instant messenger ICQ, is bringing free video calls to mobile phones and offering wireless services similar to those of Skype Technologies SA. “We overlap with what Skype does, but our starting point is different,” said Chief Executive Officer Avi Shechter. Skype lets users call each other for free via the Internet. “We don’t even have a computer solution,” said Shechter, who previously headed ICQ , sold to AOL for $287 million in 1998. “We believe in mobile and that mobile is where the growth will be.” Fring is adding more than 500,000 users a month and allows them to call, message, and chat with each other over mobile phones. The average user is on Bnei Brak-based Fring’s service for four hours a day, Shechter said in an interview. “The company has a good chance of coming into a market dominated by Skype by offering something marginally better,” said Gilad Alper , an analyst at Tel Aviv-based Excellence Investments Ltd. He added that it could take years “to become very important in terms of mass adoption.” Fring, set up three years ago, also lets users see one another’s locations and integrate friend lists from other social networks, such as Facebook and Twitter. Its investors include Yossi Vardi , who backed ICQ, and Pitango Venture Capital, an Israeli fund with $1.4 billion under management. ‘The Hottest Space’ “Fring’s potential is that it is operating in maybe the hottest space, mobile internet,” said Rami Kalish , Pitango co- founder and managing general partner. Mobile Internet use in the U.S. grew 34 percent from the first quarter of 2008 to the first quarter of 2009, reaching 51 million mobile Internet users in March 2009, according to California-based TMT Strategic Advisors. Fring’s mobile instant messaging component is “a good example of how mobile instant messaging can successfully evolve,” researcher Gartner Inc. said in an October report. Skype, with more than 520 million customers, lets users call each other for free over the Internet from computers and mobile phones. It makes money when customers use the service to call regular phones and pay for voice-mail, call forwarding and text messaging services. EBay Inc., which sold its controlling stake in Skype for about $2 billion in November, had predicted Skype sales will exceed $1 billion in 2011. Advertising Revenue Fring is making money on advertising and plans to start add-on paid services soon, Shechter said. The company has signed deals with Telefonica 02 Slovakia and Telekom Austria AG’s domestic wireless unit Mobilkom. Phone companies are seeking to make more money from data services such as mobile Internet as voice revenue falls. Israel in 2008 drew more than twice the venture capital per citizen than the U.S. and 30 times as much as continental Europe, according to Saul Singer , co-author of the book “Start- up Nation,” which made the New York Times list of hardcover business best sellers. Israel currently has 64 companies trading on the Nasdaq and is the second-largest foreign contingent after China, according to Nasdaq official Asaf Homossany . To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net .

Read the full article →

Nadal, Murray, Henin, Roddick, Clijsters Advance at Australian Open

January 20, 2010

By Rob Gloster Jan. 20 (Bloomberg) — Justine Henin’s tennis comeback picked up momentum today when she eliminated fifth-seeded Elena Dementieva 7-5, 7-6 (8-6) at the Australian Open. Men’s defending champion Rafael Nadal also advanced. Henin, a seven-time Grand Slam title holder who was No. 1 in the world when she retired in May 2008, is playing in her first major tournament in two years. “I’m exhausted now, it was so intense,” Henin said in a television interview. “I was almost cramping at the end.” Nadal dropped six games as he moved into the third round at Melbourne Park. U.S. Open champion Juan Martin del Potro had a much tougher time advancing. Andy Roddick , Andy Murray and Kim Clijsters also won at the season-opening tennis Grand Slam. Henin, a 27-year-old unseeded Belgian who doesn’t have a ranking from the WTA Tour yet, saved two set points in the 83- minute opening set. Then she broke Dementieva’s serve four times in the second, overcoming four breaks of her serve as well, and won in a tiebreaker to run her career record to 10-2 against the Russian. Henin, who ended her 20-month retirement earlier this month, served twice for the match but lost both of those games and was forced into the tiebreaker. “It was really difficult for me to close out the match,” she said in a courtside interview. “Finally I made it, so it’s a relief.” The second-seeded Nadal beat Lukas Lacko of Slovakia 6-2, 6-2, 6-2 on Rod Laver Arena to set up a match against No. 27 Philipp Kohlschreiber of Germany, who defeated unseeded American Wayne Odesnik . “I came here with confidence,” Nadal said in a televised interview after winning in an hour and 53 minutes. “I’m in the right way to come back and play my best tennis.” The Spaniard is seeking his first Grand Slam title since he beat Roger Federer in the Australian Open final a year ago. Del Potro, an Argentine seeded fourth, battled through five sets before defeating unseeded American James Blake 6- 4, 6-7 (3-7), 5-7, 6-3, 10-8. The match between del Potro and Blake, who was an All- American tennis player at Harvard University in the late 1990s, lasted 4 hours, 17 minutes. No. 7 seed Roddick thought he’d won twice before finally eliminating Thomaz Bellucci 6-3, 6-4, 6-4. On the American’s first match point, a forehand from Bellucci was called out. Roddick and his unseeded opponent went to the net to shake hands, then turned around as the Brazilian’s challenge of the call was upheld. Roddick then appeared to serve an ace to end the match. That call also was challenged by Bellucci and was reversed. The 27-year-old Roddick, who won his only Grand Slam title at the 2003 U.S. Open, finished off the match on his second serve. ‘Felt Good’ “I felt good out there today,” Roddick told reporters. “It was just a matter of kind of getting the ins and outs of the points. I thought I did a pretty good job of that.” Roddick, who served 11 aces, will play unseeded Spaniard Feliciano Lopez for a place in the fourth round. No. 5 seed Murray of Britain won 6-1, 6-4, 6-3 over Marc Gicquel of France. No. 11 seed Fernando Gonzalez of Chile, No. 12 Gael Monfils of France and No. 33 John Isner of the United States were winners. No. 21 Tomas Berdych of the Czech Republic was a loser. Clijsters dropped three games in each set against Tamarine Tanasugarn of Thailand. The 26-year-old Belgian, who returned to the sport last year after taking two years off to have a daughter, had six aces and 35 winners. “I’ve been pretty consistent with my level,” the 15th- seeded Clijsters said in a courtside interview. “I was able to step it up in the second set.” Safina, Kuznetsova Second-seeded Dinara Safina won in straight sets. Another Russian, French Open champion Svetlana Kuznetsova , seeded third, reached the third round for the 17th consecutive time at a Grand Slam. Kuznetsova could face Clijsters in the fourth round. No. 8 Jelena Jankovic of Serbia and No. 11 Marion Bartoli of France also won. No. 12 Flavia Pennetta of Italy lost to unseeded Belgian Yanina Wickmayer . In a first-round match that was delayed because of rain on day one, fourth-seeded Dane Caroline Wozniacki , the 2009 U.S. Open runner-up, defeated Canadian Aleksandra Wozniak . Seventh-seeded Victoria Azarenka of Belarus, No. 9 Vera Zvonareva of Russia and No. 16 Li Na of China also won first- round matches today. To contact the reporter on this story: Rob Gloster in San Francisco at rgloster@bloomberg.net

Read the full article →

England to Play U.S., Mexico to Face South Africa at World Cup Group Stage

December 4, 2009

By Christopher Elser Dec. 4 (Bloomberg) — England will face the U.S. in the group stage of soccer’s World Cup next year. The groups were drawn in Cape Town today. South Africa will face Mexico, France and Uruguay in the group stage. Argentina will face Nigeria, South Korea and Greece in Group B. England and the U.S. will also face Algeria and Slovenia in Group C. Germany, Australia, Ghana and Serbia are in Group D, while the Netherlands, Japan, Cameroon and Denmark are in Group E. Italy, New Zealand, Paraguay and Slovakia will play in Group F, while Brazil, North Korea, Ivory Coast and Portugal are in Group G. Spain, Honduras, Chile and Switzerland make up Group H. Thirty-two countries have qualified for the South African tournament, the first to be held in Africa. Going into today’s draw, European champion Spain and record five-time World Cup holder Brazil are co-favorites at 9-2 at U.K. bookmaker William Hill. That means a bet of $2 would return the original wager plus $9.

Read the full article →

Trichet May Unveil ECB’s Exit Plan While Keeping Key Rate at 1% Record Low

December 2, 2009

By Frances Robinson Dec. 3 (Bloomberg) — The European Central Bank may today announce plans to scale back its emergency lending while keeping interest rates at a record low to foster an economic recovery. ECB policy makers meeting in Frankfurt will leave the benchmark interest rate at 1 percent, according to all 54 economists in a Bloomberg News survey. President Jean-Claude Trichet will say the ECB’s third offer of 12-month loans to banks on Dec. 15 will be the last and may also signal a reduction in other lending operations, economists said. The ECB, which has been flooding banks with cheap cash to fight Europe’s worst recession since World War II, said last month it will gradually withdraw the extra liquidity to prevent inflation as the economy gathers strength. At the same time, officials don’t want to give the impression they’re moving closer to rate increases, people familiar with their discussions said. Any indication that the ECB could tighten policy sooner than the Federal Reserve may fuel further gains in the euro. “This is going to be the big one,” said James Nixon , co- chief European economist at Societe Generale SA in London. “They need to very, very carefully set out a timetable for how liquidity will be drawn down, but they don’t want to plant expectations that the exit implies they’ll raise interest rates.” The ECB announces its rate decision at 1:45 p.m. and Trichet holds a press conference 45 minutes later. Global Stimulus While Australia’s central bank has raised rates three times in as many months, the Fed and the Bank of England have signaled they’re in no rush to increase borrowing costs from record lows as their economies struggle to shake off the effects of the biggest global slump since the Great Depression. The Bank of Japan announced new measures this week, saying it will offer three-month loans to banks at 0.1 percent to combat deflation. Trichet will today unveil the ECB’s new staff projections, including the first forecasts for 2011. Governing Council members such as Luxembourg’s Yves Mersch and Slovakia’s Ivan Sramko have said they expect the bank to revise up its outlook for the 16-nation economy, which emerged from recession in the third quarter. In September, the central bank said it expected gross domestic product to grow 0.2 percent in 2010 after shrinking 4.1 this year. It projected inflation of 0.4 percent this year and 1.2 percent next year. The ECB aims to keep inflation just below 2 percent over the medium term. ‘Gradual Recovery’ The December projections will show “a gradual recovery and moderately positive inflation,” said Nick Matthews , an economist at Royal Bank of Scotland Group Plc in London. “They’ll be consistent with the view that the policy rate can remain low for a long time.” The euro has gained 20 percent against the dollar since mid-February, rising above $1.51 yesterday, which is threatening to hurt European exports. Some policy makers have nevertheless expressed concern that banks are becoming too reliant on ECB cash, and are pushing for the extraordinary lending measures to be withdrawn. “Not all our liquidity measures will be needed to the same extent as in the past,” Trichet said on Nov. 20. “Eventually, the administration of painkillers must be stopped if patients are to get on their own two feet.” Trichet signaled on Nov. 5 that the ECB is unlikely to renew its 12-month loans to banks after December’s offering and promised to give details today. He’ll also say whether the ECB has decided to alter the interest rate on the loans. People familiar with the deliberations said last week that policy makers were leaning toward keeping the rate fixed at 1 percent. ‘Balancing Act’ The ECB may announce plans to reduce the frequency of its three-month and six-month loans, which it currently offers every month. The “first steps of a gradual phasing-out of non- standard measures” may include “a lower frequency for three- month and six-month refinancing operations,” Belgian council member Guy Quaden said Nov. 16. Trichet could also field questions about Dubai’s decision to seek to delay debt repayments, which roiled financial markets this week, and Greece’s ballooning budget deficit. ECB Vice President Lucas Papademos met with Greek Prime Minister George Papandreou last weekend to discuss the issue. With markets still jittery about the sustainability of the economic recovery, the ECB will be wary of upsetting the apple cart, said Colin Ellis , an economist at Daiwa Securities SMBC Europe Ltd. in London. “The message Trichet wants to convey is that the ECB is well placed to remove its monetary stimulus and has a strategy for doing so, but that it’s not going to do it too quickly,” he said. “It’s a bit of a balancing act.” To contact the reporter on this story: Frances Robinson in Frankfurt at frobinson6@bloomberg.net

Read the full article →

Russia, Slovakia plan gas distribution JV

November 17, 2009

Russia, Slovakia plan gas distribution JV

Read the full article →

Swaps Signal Worst Yen Since ’05 as Mounting Debt Overwhelms Market Demand

November 15, 2009

By Chris Fournier and Yasuhiko Seki Nov. 16 (Bloomberg) — The yen is poised for its worst tumble since 2005 as doubts about Japan’s fiscal footing double the cost of insuring its debt. The price of hedging against losses on $10 million of the country’s bonds with credit-default swaps soared this month to as much as $76,160 a year from $37,000 in August, as the new government planned record spending and borrowing even with tax revenue falling. The rise in debt protection costs contrasts with that of the U.S., where prices have fallen to about the lowest in a year amid unprecedented issuance. The difference in prices reached the widest ever on Nov. 9 after Japan’s debt grew to almost twice the size of the economy. “The Japanese fiscal situation is horrific,” said Richard Benson , who helps oversee $11 billion of currency funds at Millennium Global Asset Management in London. “We went short the yen against the dollar and the euro about a month ago” and then turned “more aggressive” on the trade as credit-default swaps rose and investors dumped Japanese bonds, he said, declining to specify the firm’s gains. Selling yen for euros and dollars would have returned as much as 4.3 percent since Oct. 1, data compiled by Bloomberg show. Japan’s unprecedented debt, near-zero benchmark interest rate, ballooning budget deficit, sinking savings rate and worst postwar recession all are aligned against the yen. Standing Alone The Bank of Japan will stand alone in keeping borrowing costs at near-record lows next year to revive the Group of 10’s fastest-shrinking economy, making its assets less attractive to investors, median Bloomberg survey predictions show. The world’s second-biggest economy last year at $4.9 trillion will contract 5.7 percent in 2009, compared with an average of 2.5 percent for the nine other largest economies, according to median forecasts. “We can’t rule out the possibility of capital flight away from Japan due to its deteriorating fiscal position,” said Yuji Saito , head of the foreign-exchange group in Tokyo at Societe Generale SA, France’s third-largest bank. The yen has outperformed all 171 other currencies tracked by Bloomberg over the past two years, appreciating 24 percent to 89.53 per dollar today. The currency is up 12.9 percent from a five-month low on April 6, and has gained 1.3 percent this year. Now, 34 of 38 strategists in a Bloomberg survey see it falling by June 2010, including Landesbank Baden-Wuerttemberg, the most accurate of 46 forecasters in the six quarters ending June 30. Steep Tumble The Stuttgart-based bank predicts a 9.9 percent decline to 100 from 90.09 at the end of October, which would be the steepest eight-month drop in four years. Goldman Sachs Group Inc. in New York forecasts 105 in 12 months, a 14.8 percent slide from the Nov. 13 close. Option traders are the least bullish on the yen since July 2007 after the spread between demand for three-month contracts to buy and sell the currency narrowed by the most ever in the past year, so-called risk-reversal rates show. “Declines in risk reversal rates suggest underlying strong pressure to sell the yen,” Societe Generale’s Saito said. Outstanding government loans and bonds totaled a record 864.5 trillion yen ($9.6 trillion) on Sept. 30, making Japan the world’s most indebted nation. That’s 181 percent of gross domestic product , up from 94 percent a decade earlier and the most among the 30 countries of the Organization for Economic Cooperation and Development, which averages 79 percent. The U.S. has about $7 trillion of marketable debt outstanding, or about 50 percent of its GDP, according to government data. Increased Unease While credit-default swaps indicate less than a 6 percent chance the world’s second-largest foreign-reserves holder will default, they show increased unease with the debt’s quality. The five-year contracts cost 67.42 basis points, or 0.6742 percentage point, of the sum covered a year. Of 20 developed countries tracked by Bloomberg, only Greece, Ireland, Spain and Italy have pricier swaps. Insuring the debt of Slovakia and Slovenia, which have the same credit ratings as Japan or worse, is cheaper. Hedging against losses on U.S. bonds cost 27.5 basis points on Nov. 13, down from 100 on Feb. 24. The U.S. will sell a record $2.1 trillion in Treasuries this year and $2.5 trillion next, according to London-based Barclay’s Plc, one of 18 primary dealers that trade with the Federal Reserve. Government bond yields are used as a benchmark for companies such as Shiseido Co., Japan’s biggest cosmetics maker, and brewer Kirin Holdings Co. as they sell debt. ‘Difficult’ Situation “It’s not really a question of default” by Japan, said Carlos Leitao at Montreal-based Laurentian Bank Securities, the second-most accurate economist in a Bloomberg survey last year. “It’s more the situation becoming so difficult, the government is forced to adopt more restrictive fiscal policies to bring deficits under control. That would further slow the economy.” Finance Minister Hirohisa Fujii said on Nov. 10 that “maintaining the trust of investors in the government bond market is our priority” because “the most pressing issue we have to bear in mind when we outline next fiscal year’s budget is that government bond yields are surging.” International demand is already faltering. Foreign investors have sold a net weekly average of 130 billion yen in Japanese bonds this year, after averaging 94 billion in purchases the prior five years, Ministry of Finance data show. Yields on 10-year bonds, which reached 1.485 percent this month on an intraday basis, the highest since June, may rise toward 1.7 percent, said Kazuto Uchida , chief economist for Bank of Tokyo Mitsubishi UFJ Ltd., Japan’s biggest lender. Interest Expense Japan will spend 10.2 trillion yen on interest payments this year, or 26.2 percent of tax revenue, up from 18 percent in 1990 and 18.9 percent in 2004, JPMorgan Chase & Co. of New York estimated in an Oct. 21 report. The percentage may rise to 36.8 in 2014 and 73.9 in 2019, the bank estimated. Domestic buyers will shore up demand for the securities, limiting yield increases, according to Koichi Kurose , chief strategist in Tokyo at Resona Bank Ltd. “The sell-Japan campaign is not likely to become a mainstream move, given the fact that Japanese investors hold over 90 percent of outstanding debt issued by the government,” said Kurose, whose employer is part of the nation’s fourth- largest banking group. “In a country like Japan, where there’s a stable current-account surplus, rising debt issues won’t push up yields perpetually.” Japan almost always exports more than it imports, current- account data show. That broad trade measure shows its surplus rose 0.2 percent to 1.57 trillion yen in September from a year earlier after also rising in August — the first two straight increases since early 2008, the Finance Ministry said Nov. 10. The surplus allows Japan to finance deficit domestically so it doesn’t have to rely on overseas lenders. Saving Less JPMorgan said in its report that Japan’s dependence on domestic bond buyers may hurt demand. Such investors owned 93 percent of the government’s debt as of December, according to a ministry report. Because the Japanese are saving less, they will buy fewer bonds and drive yields up, the bank said, predicting that average families will be squirreling away none of their income within five years, down from about 17 percent in 1980. “A reasonable estimate that falling savings pushes interest rates higher” by 2 percentage points “would quadruple debt service costs in 10 years,” JPMorgan said. Vice Finance Minister Yoshihiko Noda estimated last month that bond sales may hit 50 trillion yen in the fiscal year that started April 1 due to slumping tax revenue, up from the unprecedented 44 trillion estimated in a budget that called for spending a record 102.5 trillion yen. Falling Revenue Tax revenue from April 1 through Sept. 30 totaled 10 trillion yen, 24 percent less than at the same point in the prior fiscal year and the least in 11 years or more, Finance Ministry statistics show. Japan’s deficit “is one of the most significant negative factors” weighing on its credit rating, said Takahira Ogawa , Singapore-based director for sovereign rankings at Standard & Poor’s. S&P isn’t considering changing its “stable” outlook for Japan’s AA international-debt grade, the company’s third highest, he said. Fitch Ratings may review its AA- grade on locally denominated debt if the country violates its pledge to keep next fiscal year’s bond-issuance below 44 trillion yen, said David Riley , the firm’s head of sovereign ratings in London, in a Nov. 10 Reuters Television interview . “Economic conditions point toward a possibly extended period of deflation,” Riley said in a Nov. 10 statement. “Should this happen, it will represent a material risk to the public debt outlook.” In a Nov. 13 e-mail, he said he “cannot comment” on what sum might “trigger a rating action.” Japan Deflation Consumer prices in Japan have fallen from a year earlier for eight consecutive months through September, including a July’s unprecedented 2.3 percent drop. Median quarterly forecasts predict that trend continuing through mid-2011. “If Japan’s sovereign debt loses its current rating, it would also lose its status as a safe-haven asset,” said Soichiro Mori , manager of foreign-exchange promotion at FXOnline Japan Co. “Foreign investors definitely won’t be motivated to hold such debt.” The DPJ won power on Aug. 30 by pledging to boost spending and cut taxes, unseating the Liberal Democratic Party, which reigned for all but 10 months since 1955. Postal Service Concern about DPJ fiscal policies worsened when Prime Minister Yukio Hatoyama , 62, appointed a former finance ministry civil servant, Jiro Saito , to head the postal service, according to investors such as Makoto Kojima , general manager of global markets at SBI Liquidity Market Co., a unit of financier SBI Holdings Inc. The party vowed to curtail bureaucrats’ power by opposing so-called amakudari, the practice of giving them jobs at state-run companies. The Nikkei 225 Stock Average has lost 7.4 percent in yen terms since Aug. 28 , the trading day before the election, making it one of the six worst performers of 89 primary equity indexes tracked by Bloomberg. The yen’s value “is not consistent with the underlying fundamentals, and that’s a huge opportunity,” said Michael Hasenstab , who oversees $45 billion in fixed-income assets for Franklin Templeton Investments and is using forward contracts to bet on the yen’s decline. “The yen is very vulnerable.” To contact the reporters on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net ; Yasuhiko Seki in Tokyo at Yseki5@bloomberg.net .

Read the full article →

Safina Loses, Joins Roddick, Sharapova in Upsets at U.S. Open

September 6, 2009

By Danielle Rossingh Sept. 6 (Bloomberg) — Women’s top seed Dinara Safina joined former U.S. Open champions Andy Roddick and Maria Sharapova as losers in the third round of the U.S. Open. Petra Kvitova from the Czech Republic beat Safina 6-4, 2-6, 7-6 (7-5) at Louis Armstrong Stadium at the U.S. Open. Safina failed to convert three match points in a match that lasted two hours, 34 minutes. “I don’t know what to say, it’s amazing here,” Kvitova said in a court-side interview. “I love New York.” She’ll play Belgium’s Yanina Wickmayer next. It was Safina’s earliest exit from a Grand Slam event since a third-round loss at Wimbledon last year. The sister of former U.S. Open champion Marat Safin , Safina lost the finals of this year’s Australian Open and French Open. Kvitova is ranked 72nd on the WTA Tour . Safina, who will remain No. 1 for at least another two weeks, is the highest seed to fall in the third round. Earlier, former U.S. Open champions Andy Roddick and Maria Sharapova both lost to unseeded Americans John Isner and Melanie Oudin. Spain’s Tommy Robredo beat James Blake , the No. 21 seed from the U.S., while defending champion Roger Federer advanced. In matches today, Daniela Hantuchova of Slovakia plays defending champion Serena Williams, while former top-ranked Rafael Nadal faces fellow Spaniard Nicolas Almagro. Belgium’s Kim Clijsters meets Venus Williams while Britain’s Andy Murray will end the day against Taylor Dent of the U.S. Biggest Upset John Isner caused the biggest upset of the men’s tournament by defeating fellow American Roddick 7-6 (7-3), 6-3, 3-6, 5-7, 7-6 (7-5) at Arthur Ashe Stadium. “I had to play the match of my life,” Isner, who served 38 aces, said in a televised interview after the match. “I’ve proven I can play with anybody.” Wimbledon finalist Roddick is the last American man to have won a major, at the 2003 U.S. Open. He made the quarterfinals last year and was widely regarded as one of the favorites for the title after he narrowly lost the Wimbledon finals to Federer. “It was a tough one to lose,” Roddick, who served 20 aces, said at a news conference. “Especially after kind of coming back all that way.” Second Straight Earlier in the day, 17-year-old Melanie Oudin pulled her second straight upset at the U.S. Open by defeating 2006 champion Sharapova 3-6, 6-4, 7-5 in the third round. “I just kept fighting as hard as I could, I just tried as hard as I could, I just can’t even believe it,” Oudin said in a court-side interview. Oudin also defeated fourth-seeded Elena Dementieva of Russia in the second round. Sharapova was playing her first U.S. Open in two years after undergoing shoulder surgery. She produced 21 double faults in the match at the Billie Jean King National Tennis Center, the most of any women’s tour level match this year. The 6-foot-2 Sharapova failed to find rhythm on her serve, serving 21 double faults and 63 unforced errors in total. Oudin produced 6 double faults and made 44 mistakes. “I got lucky,” Oudin said. “She double faulted a couple of times. I put pressure on her second serve.” Sharapova was full of praise for her opponent. “She played really well,” the Russian said at a news conference. “I thought she has many weapons. She certainly held her ground.” Arms Lifted Oudin lifted both arms above her head after ending the match with a forehand cross-court winner. Tears streamed down her face as she thanked the crowd for their support. She’ll play another Russian, No. 13 seed Nadia Petrova , next. Just like Sharapova against Oudin, Roddick struggled to find an answer against his lesser-known opponent, who is ranked 55th on the ATP World Tour. In the first two sets, the six-foot-nine North Carolinian sent 37 winners past the former world No. 1. Roddick, who is six-foot-two, and had 15 winners. The momentum shifted in the third set, when Roddick broke serve for 5-3 as he hit a backhand winner at full stretch past Isner. Roddick converted his first set point with an ace. Isner, 24, had lost both previous meetings on hard court against the 27-year-old Roddick before this year’s U.S. Open. The serve-and-volley specialist had only come back to the ATP World Tour in July, after being sidelined for three months with energy-sapping mononucleosis. Just like in the Wimbledon final, where Roddick didn’t lose his serve until match point in a 30-game final set against Federer, his serve saved him at crucial moments. In the fourth set, Roddick fended off a match point with an ace as he trailed 5-4. Isner then dropped serve and Roddick forced a fifth set on his own serve after more than three hours of play. In the final set, both players didn’t drop serve, forcing a deciding tie-break. Roddick fended off another match point with an ace as he trailed 6-3. Isner won the match on the next one as Roddick hit a forehand in the net. “In the fifth set, I knew I wanted to finish it before it got to a tiebreaker and kind of became a shootout,” Roddick said. “It didn’t happen. He came up with the goods at the end.” Roger Federer overcame problems with his forehand to beat former winner Lleyton Hewitt 4-6, 6-3, 7-5, 6-4. The Swiss last lost a U.S. Open match in 2003. “The way I came through, I was very happy, because I knew that being down a set against Lleyton is always going to be a difficult situation for me to be in,” Federer, who won a record 15th Grand Slam singles title at Wimbledon in July, told a news conference. “Make one more mistake and I’m in the fifth set maybe, or I go down completely. So I was relieved coming through.” Top-seeded Federer struggled with his serve and forehand, hitting the ball in the service box 54 percent of the time while committing 59 unforced errors. Hewitt had a first-serve percentage of 50, while producing only nine mistakes. Next Opponent Federer will next play Spain’s Tommy Robredo , who beat James Blake 7-6 (7-2), 6-4, 6-4. The 28-year-old Swiss is trying to become the first man to win six consecutive U.S. Open titles since tennis turned professional in 1968. Bill Tilden won six straight U.S. national titles from 1920 to 1925. Novak Djokovic of Serbia withstood a challenge from Jesse Witten , an American qualifier who had never won an ATP World Tour match before the U.S. Open, to win 6-7 2-7, 6-3, 7-6 (7-2), 6-4. Witten, who was the lowest-ranked man left in the draw at No. 276, almost quit the sport at the beginning of the year. He was one of six American men through to the third round, which is the best result for the host nation since 2003. In other results, American Sam Querrey , the winner of the U.S. Open series of hardcourt tournaments this summer, lost to French Open finalist Robin Soderling of Sweden in four sets. Radek Stepanek , the No. 15 seed from the Czech Republic, and No. 8 seed Nikolay Davydenko from Russia also won. Former champion Svetlana Kuznetsova of Russia and No. 10 seed Fernando Verdasco , who will play Isner in the fourth round, also advanced. Denmark’s Caroline Wozniacki, the No. 9 seed, also won. To contact the reporter on this story: Danielle Rossingh at the U.S. Open through the London sports desk at

Read the full article →

Safina Loses, Joins Roddick, Sharapova in Upsets at U.S. Open

September 6, 2009

By Danielle Rossingh Sept. 6 (Bloomberg) — Women’s top seed Dinara Safina joined former U.S. Open champions Andy Roddick and Maria Sharapova as losers in the third round of the U.S. Open. Petra Kvitova from the Czech Republic beat Safina 6-4, 2-6, 7-6 (7-5) at Louis Armstrong Stadium at the U.S. Open. Safina failed to convert three match points in a match that lasted two hours, 34 minutes. “I don’t know what to say, it’s amazing here,” Kvitova said in a court-side interview. “I love New York.” She’ll play Belgium’s Yanina Wickmayer next. It was Safina’s earliest exit from a Grand Slam event since a third-round loss at Wimbledon last year. The sister of former U.S. Open champion Marat Safin , Safina lost the finals of this year’s Australian Open and French Open. Kvitova is ranked 72nd on the WTA Tour . Safina, who will remain No. 1 for at least another two weeks, is the highest seed to fall in the third round. Earlier, former U.S. Open champions Andy Roddick and Maria Sharapova both lost to unseeded Americans John Isner and Melanie Oudin. Spain’s Tommy Robredo beat James Blake , the No. 21 seed from the U.S., while defending champion Roger Federer advanced. In matches today, Daniela Hantuchova of Slovakia plays defending champion Serena Williams, while former top-ranked Rafael Nadal faces fellow Spaniard Nicolas Almagro. Belgium’s Kim Clijsters meets Venus Williams while Britain’s Andy Murray will end the day against Taylor Dent of the U.S. Biggest Upset John Isner caused the biggest upset of the men’s tournament by defeating fellow American Roddick 7-6 (7-3), 6-3, 3-6, 5-7, 7-6 (7-5) at Arthur Ashe Stadium. “I had to play the match of my life,” Isner, who served 38 aces, said in a televised interview after the match. “I’ve proven I can play with anybody.” Wimbledon finalist Roddick is the last American man to have won a major, at the 2003 U.S. Open. He made the quarterfinals last year and was widely regarded as one of the favorites for the title after he narrowly lost the Wimbledon finals to Federer. “It was a tough one to lose,” Roddick, who served 20 aces, said at a news conference. “Especially after kind of coming back all that way.” Second Straight Earlier in the day, 17-year-old Melanie Oudin pulled her second straight upset at the U.S. Open by defeating 2006 champion Sharapova 3-6, 6-4, 7-5 in the third round. “I just kept fighting as hard as I could, I just tried as hard as I could, I just can’t even believe it,” Oudin said in a court-side interview. Oudin also defeated fourth-seeded Elena Dementieva of Russia in the second round. Sharapova was playing her first U.S. Open in two years after undergoing shoulder surgery. She produced 21 double faults in the match at the Billie Jean King National Tennis Center, the most of any women’s tour level match this year. The 6-foot-2 Sharapova failed to find rhythm on her serve, serving 21 double faults and 63 unforced errors in total. Oudin produced 6 double faults and made 44 mistakes. “I got lucky,” Oudin said. “She double faulted a couple of times. I put pressure on her second serve.” Sharapova was full of praise for her opponent. “She played really well,” the Russian said at a news conference. “I thought she has many weapons. She certainly held her ground.” Arms Lifted Oudin lifted both arms above her head after ending the match with a forehand cross-court winner. Tears streamed down her face as she thanked the crowd for their support. She’ll play another Russian, No. 13 seed Nadia Petrova , next. Just like Sharapova against Oudin, Roddick struggled to find an answer against his lesser-known opponent, who is ranked 55th on the ATP World Tour. In the first two sets, the six-foot-nine North Carolinian sent 37 winners past the former world No. 1. Roddick, who is six-foot-two, and had 15 winners. The momentum shifted in the third set, when Roddick broke serve for 5-3 as he hit a backhand winner at full stretch past Isner. Roddick converted his first set point with an ace. Isner, 24, had lost both previous meetings on hard court against the 27-year-old Roddick before this year’s U.S. Open. The serve-and-volley specialist had only come back to the ATP World Tour in July, after being sidelined for three months with energy-sapping mononucleosis. Just like in the Wimbledon final, where Roddick didn’t lose his serve until match point in a 30-game final set against Federer, his serve saved him at crucial moments. In the fourth set, Roddick fended off a match point with an ace as he trailed 5-4. Isner then dropped serve and Roddick forced a fifth set on his own serve after more than three hours of play. In the final set, both players didn’t drop serve, forcing a deciding tie-break. Roddick fended off another match point with an ace as he trailed 6-3. Isner won the match on the next one as Roddick hit a forehand in the net. “In the fifth set, I knew I wanted to finish it before it got to a tiebreaker and kind of became a shootout,” Roddick said. “It didn’t happen. He came up with the goods at the end.” Roger Federer overcame problems with his forehand to beat former winner Lleyton Hewitt 4-6, 6-3, 7-5, 6-4. The Swiss last lost a U.S. Open match in 2003. “The way I came through, I was very happy, because I knew that being down a set against Lleyton is always going to be a difficult situation for me to be in,” Federer, who won a record 15th Grand Slam singles title at Wimbledon in July, told a news conference. “Make one more mistake and I’m in the fifth set maybe, or I go down completely. So I was relieved coming through.” Top-seeded Federer struggled with his serve and forehand, hitting the ball in the service box 54 percent of the time while committing 59 unforced errors. Hewitt had a first-serve percentage of 50, while producing only nine mistakes. Next Opponent Federer will next play Spain’s Tommy Robredo , who beat James Blake 7-6 (7-2), 6-4, 6-4. The 28-year-old Swiss is trying to become the first man to win six consecutive U.S. Open titles since tennis turned professional in 1968. Bill Tilden won six straight U.S. national titles from 1920 to 1925. Novak Djokovic of Serbia withstood a challenge from Jesse Witten , an American qualifier who had never won an ATP World Tour match before the U.S. Open, to win 6-7 2-7, 6-3, 7-6 (7-2), 6-4. Witten, who was the lowest-ranked man left in the draw at No. 276, almost quit the sport at the beginning of the year. He was one of six American men through to the third round, which is the best result for the host nation since 2003. In other results, American Sam Querrey , the winner of the U.S. Open series of hardcourt tournaments this summer, lost to French Open finalist Robin Soderling of Sweden in four sets. Radek Stepanek , the No. 15 seed from the Czech Republic, and No. 8 seed Nikolay Davydenko from Russia also won. Former champion Svetlana Kuznetsova of Russia and No. 10 seed Fernando Verdasco , who will play Isner in the fourth round, also advanced. Denmark’s Caroline Wozniacki, the No. 9 seed, also won. To contact the reporter on this story: Danielle Rossingh at the U.S. Open through the London sports desk at

Read the full article →

Oudin Records Biggest Upset of U.S. Open, Faces Sharapova Next

September 4, 2009

By Erik Matuszewski Sept. 4 (Bloomberg) — American teenager Melanie Oudin continued a run of women’s upsets at the U.S. Open, eliminating fourth-seeded Elena Dementieva yesterday to set up a third-round meeting with former champion Maria Sharapova . Dementieva and No. 5 Jelena Jankovic , the 2008 runner-up, were among five seeded women to lose yesterday at the season’s final Grand Slam tennis tournament. The 11 men’s seeds in action won, including No. 4 Novak Djokovic and No. 5 Andy Roddick , the last American man to win the title, in 2003. While top-seeded Dinara Safina rallied in three sets to advance, 16 women’s seeds failed to reach the third round at the National Tennis Center in New York. It’s the second-most since the four majors expanded to 32 seeds in 2001 and Sharapova said she was aware of the upsets before her 6-2, 6-1 win over Christina McHale last night. “This game on most occasions is more mental,” Sharapova told reporters. “It’s all about competing and fighting and knowing that, no matter what the score line is, it’s not over until you’re shaking hands.” Oudin, a 17-year-old American, sported the word “Believe” on her sneakers as she beat Dementieva 5-7, 6-4, 6-3 on the Arthur Ashe Stadium court. “I played with no fear,” said Oudin, who is 70th in the WTA Tour rankings. “She’s expected to win and I just went out there and played my game and I came out with a win.” Williams Sisters Women’s third-round play begins today in New York, where No. 2 seed and defending champion Serena Williams meets Spain’s Maria Jose Martinez Sanchez , and No. 3 Venus Williams faces Slovakia’s Magdalena Rybarikova in the opening night match. Safina, a Russian seeking her first major title, joined them in the third round yesterday by rallying past Germany’s Kristina Barrois 6-7 (5-7), 6-2, 6-3. Sixth-seeded Svetlana Kuznetsova , No. 9 Caroline Wozniacki , No. 13 Nadia Petrova and No. 29 Sharapova were straight-set winners. Jankovic followed Dementieva out of the tournament after losing a third-set tiebreaker to Yaroslava Shvedova of Kazakhstan. Serbia’s Jankovic said after the match she was negatively affected by the recent death of her grandmother. “My head wasn’t really there,” Jankovic told reporters. “It was like a shadow of myself.” Other women’s seeds to lose yesterday were No. 19 Patty Schnyder of Switzerland, No. 23 Sabine Lisicki of Germany and No. 30 Alona Bondarenko of the Ukraine. Men’s Winners Serbia’s Djokovic, the U.S. Open runner-up in 2007, moved into the third round with a 6-3, 6-4, 6-4 win over Australia’s Carsten Ball. He’ll next face American qualifier Jesse Witten . Roddick has yet to drop a set after beating Frenchman Marc Gicquel 6-1, 6-4, 6-4, to complete yesterday’s play and set up a third-round meeting with fellow American John Isner . Roddick has won both prior meetings against the 24-year-old Isner. “John’s been playing a lot better and it’s going to be a completely different match-up,” Roddick said in a televised courtside interview. “It’s going to come down to a couple of points here and there.” The top-10 men’s seeds have yet to drop a set through the first four days of the tournament. No. 21 James Blake of the U.S. defeated Belgium’s Olivier Rochus 6-4, 3-6, 7-6, 6-3, while Sam Querrey , the 22nd seed, was a four-set winner over fellow American Kevin Kim . The other men’s seeds advancing yesterday were No. 8 Nikolay Davydenko of Russia, No. 10 Fernando Verdasco of Spain, No. 12 Robin Soderling of Sweden, No. 14 Tommy Robredo of Spain, No. 15 Radek Stepanek of the Czech Republic, No. 20 Tommy Haas of Germany, and No. 23 Philipp Kohlschreiber of Germany. Second-seeded Andy Murray of Britain plays a second-round match today against Chile’s Paul Capdeville , while No. 3 Rafael Nadal of Spain will meet Germany’s Nicolas Kiefer in the final night match on Day 5. To contact the reporter on this story: Erik Matuszewski at the U.S. Open at matuszewski@bloomberg.net

Read the full article →

U.S. Steel Forecasts Third-Quarter Loss as Recession Hurts Domestic Demand

July 28, 2009

By Jack Kaskey July 28 (Bloomberg) — U.S. Steel Corp. , the largest U.S.- based steelmaker, forecast a third straight loss for the current quarter as the recession continues to hurt its North American business. All three business segments will report operating losses in the third quarter, as they did in the previous period, because of low operating rates, the cost of keeping plants idled and weak average prices, Pittsburgh-based U.S

Read the full article →

U.S. Steel Forecasts Third-Quarter Loss as Recession Hurts Domestic Demand

July 28, 2009

By Jack Kaskey July 28 (Bloomberg) — U.S. Steel Corp. , the largest U.S.- based steelmaker, forecast a third straight loss for the current quarter as the recession continues to hurt its North American business. All three business segments will report operating losses in the third quarter, as they did in the previous period, because of low operating rates, the cost of keeping plants idled and weak average prices, Pittsburgh-based U.S

Read the full article →

U.S. Steel Forecasts Third-Quarter Loss as Recession Hurts Domestic Demand

July 28, 2009

By Jack Kaskey July 28 (Bloomberg) — U.S. Steel Corp. , the largest U.S.- based steelmaker, forecast a third straight loss for the current quarter as the recession continues to hurt its North American business. All three business segments will report operating losses in the third quarter, as they did in the previous period, because of low operating rates, the cost of keeping plants idled and weak average prices, Pittsburgh-based U.S.

Read the full article →