Signal fading on radio traffic reports
AP
By DAISY NGUYEN, Associated Press Writer Daisy Nguyen, Associated Press Writer – 36 mins ago
CORONA, Calif. – For more than 20 years, Mike Nolan was known to radio listeners as the "eye in the sky." He flew over Southern California freeways in his single-engine plane, reporting on the nation's worst traffic.
These days, he broadcasts about traffic snarls and lurking gridlock without leaving the ground — without even leaving his home in this Los Angeles suburb. Sitting in a chair behind computer monitors and a television, Nolan gathers traffic data and broadcasts live on two radio stations a day.
"What I'm best suited to do is look out the airplane window and tell people what I see," Nolan, 60, said. "When I was grounded, that world changed considerably so I had to reinvent myself."
His return to earth reflects the evolution of the traffic reporting business as a faltering economy forces news operation cutbacks, technology displaces traditional reporters and motorists increasingly rely on cell phones and GPS to monitor live traffic.
Most traffic news is now generated by reporters on the ground monitoring police reports, live highway cameras, data from ground sensors that can detect traffic speed and tips from drivers.
Reporters can be hundreds of miles away away from the scene and detail the latest traffic jams to three or four radio stations in the same hour, sometimes using aliases. Rebecca Campbell might report at the top of the hour for the Fox sports station using her own name, then 20 minutes later appear as Toni Jordan on an alternative rock station. For a station popular with Latino listeners, she goes by the name Lena Macias.
Even as traffic reporters have had their wings clipped in recent years, the airwaves ahead appear even more bumpy.
Music stations competing for listeners have been cutting back on disc jockey banter, and some industry veterans believe traffic reports could fade altogether.
"A number of years ago it'd be unheard of to have an FM station in L.A. without traffic reports," said Don Bastida, vice president of operations for Airwatch, one of the nation's largest traffic-reporting services. "Now traffic reports on the music stations become just an interruption that gives the listener an opportunity to hit the button and move on to the next station."
He said traffic reports will remain on the AM dial, but they'll decline to the point that they'll only be offered as part of a news story when a major incident happens.
The region's top-rated pop station, KISS-FM, recently dropped afternoon traffic reports after AMP-FM, a new Top 40 station received higher ratings without traffic updates.
Metro Traffic, a division of Westwood One Inc., began consolidating its 60 traffic reporting operations around the nation last year to just 13. As a result, reporters in the Washington D.C. hub also cover traffic news for Maryland, Virginia and North Carolina. Some plane and helicopter reporting flights were cut as part of cost reductions that will amount to $55 million to $63 million annually.
Airwatch, a subsidiary of radio giant Clear Channel Communications Inc., has 60 reporters and producers working around the clock to provide traffic updates to more than 40 Southern California stations. They sit side by side in a small studio overlooking an Orange County freeway, staring at computer monitors and TV screens as they speak into the microphones, sometimes talking over each other as they file live reports.
Airwatch's revenue grew each year for nearly 10 years. But in late 2007, seven reporters lost their jobs when Clear Channel downsized the operation.
Nolan was one of them. He took a substantial pay cut to work from the ground. He chose to work from home rather than commute 40 miles roundtrip to the Airwatch studio in Santa Ana.
He now takes a few steps from his bedroom to his study to start his split shifts, from 5 to 9 a.m. then 3 to 7 p.m. He puts on a headset, turns on the stopwatch application on his iPhone, and pulls up a half-dozen Web pages to gather traffic information.
When it's his turn to come on at the top of the hour, 20 minutes past and bottom of the hour on KFI-AM and twice per hour on KOST-FM, Nolan rattles off a list of congested freeways in 40 second to one minute bursts.
Growing up in the San Fernando Valley in the early 1960s, Nolan saw freeways expand deeper into suburbs. Flying over Southern California day in and day out gave him an understanding of traffic patterns that enhance his reports from the ground.
When he reads traffic maps on the computer, he can picture every tunnel, hill and curve and knows when drivers should be slowing down. He can suggest alternate routes and knows what type of incident is likely to cause more misery.
He said that kind of knowledge can't be replaced by GPS-equipped gadgets.
"The radio reporter is going to tell you what's going on where you're going to be in addition to where you are," Nolan said.
Bastida at Airwatch predicts that in a few years, motorists will steer further away from the radio as carmakers add even more navigation systems and Internet-access equipment to vehicles. Airwatch has a growing service providing traffic updates directly to navigational units in vehicles.
"There will be jobs for people gathering and inputting the traffic data, but jobs for broadcasters will be going away," Bastida said.
Not everyone has a bleak outlook.
John Frawley, executive vice president of broadcast operations for Metro Traffic, said traffic news remains a big draw on news and talk stations. He says a device may tell drivers where the traffic jams are and how far the backup is, but it doesn't explain the cause.
"When our people come on, people pay attention," Frawley said. "They're interested that somebody else is suffering in traffic, too."
Friday, November 27, 2009
Deflation, surging yen threaten Japan's recovery
Deflation, surging yen threaten Japan's recovery
Falling prices, soaring yen equal double trouble for shaky Japanese economy
* By Tomoko A. Hosaka, Associated Press Writer
* On 7:03 am EST, Friday November 27, 2009
TOKYO (AP) -- Japan got word Friday that prices fell again in October, just as a surging yen threatens to worsen the deflation that is undermining the country's fragile economy.
AP - Jobless people sleep with their belonging at a park in Tokyo, Japan, Friday, Nov. 27, 2009. The number ...
The core consumer price index, which excludes volatile fresh food, retreated at a near-record pace of 2.2 percent from a year earlier, the government said. Prices have now fallen for eight straight months -- a trend that the government highlighted last week for the first time in three years.
The news came amid heightened concern over the Japanese currency, which hit a new 14-year high against the dollar in early Asian trading. The greenback touched 84.41 yen before recovering to low-86 yen levels.
A strong yen and deflation represent a perilous combination for the world's second-biggest economy.
Falling prices, which plagued Japan during its "Lost Decade" in the 1990s, may sound like a good thing. But deflation can hamper economic growth by depressing company profits, sparking wage cuts and causing consumers to postpone purchases. It also can increase debt burdens.
Meanwhile, a strong yen erodes the overseas profits of Japan's big exporters like Sony Corp. and Toyota Motor Corp. It can also aggravate deflation. Prices of imports and raw materials decline, which then pushes domestic consumer prices lower.
"In the midst of deflation, such a sharp rise in the yen is a very serious problem and could drag down the economy," said Fujio Mitarai, head of the Nippon Keidanren, the country's biggest business group. "I certainly hope the government responds with emergency steps."
Concerns overnight about debt problems afflicting Dubai have driven investors to the yen as a safe haven. Dubai World, a government investment fund with debts totaling around $60 billion, has asked creditors if it can postpone payments until May.
The yen also strengthened because of the disappointing comments Thursday by Japanese Finance Minister Hirohisa Fujii, analysts said. He sharpened his tone Friday, calling the yen's recent rise "one-sided" and saying the government would take appropriate measures if needed.
"What the market wants is for him to go a step further and say he is actually going to do something," said Akane Vallery Uchida, foreign exchange strategist at The Royal Bank of Scotland in Tokyo. "Unless he becomes more specific about taking action, it's not convincing enough."
Japan hasn't intervened in the currency market since March 2004. But it looks to be edging closer to some sort of action with prices expected to continue falling. The core consumer price index for Tokyo, seen as a barometer for prices nationwide, declined 1.9 percent.
On the labor front, the government released slightly better news.
Japan's unemployment rate improved to 5.1 percent in October, better than 5.3 percent the previous month and July's record high of 5.7 percent.
The number of jobless, however, rose almost 35 percent from a year earlier to 3.44 million, while the number of employed people fell 1.8 percent to 62.71 million, according to the Ministry of Internal Affairs and Communications.
The ratio of job offers to job seekers stood at 0.44, up for the second month, the labor ministry said. The figure means there were 44 jobs available for every 100 job seekers.
Analysts said the figures confirm that the labor market probably bottomed this summer, but they warn that the future is far from bright. Companies continue to cut costs and wages, and they may be pressured to pare even more as the strong yen and deflation squeeze profits.
Friday's figures also show that many workers have simply given up looking for work and thus are not counted in the official jobless rate.
"Today's unemployment rate should be seen as indicating stagnation rather than improvement in labor conditions," said Chiwoong Lee, economist at Goldman Sachs in Tokyo. "At the same time, the number of involuntary unemployed remains high, suggesting sustain improvement is not about to begin."
Monthly household spending rose 1.6 percent in October from a year earlier, the government said. The figure was lifted by consumer incentives that drove sales of energy efficient appliances and vehicles, analysts said.
The spending outlook appears mixed, with the uptick in labor market conditions, exports and production serving as positive drivers, said Masamichi Adachi, senior economist at JPMorgan Securities in Tokyo.
"But a stall of improvement in business sentiment, particularly with the recent sharp appreciation of yen, and an expected record plunge in winter bonus are discouraging," he said in a note to clients.
Household spending is a key indicator of private consumption, which accounts for about 60 percent of Japan's economy.
Falling prices, soaring yen equal double trouble for shaky Japanese economy
* By Tomoko A. Hosaka, Associated Press Writer
* On 7:03 am EST, Friday November 27, 2009
TOKYO (AP) -- Japan got word Friday that prices fell again in October, just as a surging yen threatens to worsen the deflation that is undermining the country's fragile economy.
AP - Jobless people sleep with their belonging at a park in Tokyo, Japan, Friday, Nov. 27, 2009. The number ...
The core consumer price index, which excludes volatile fresh food, retreated at a near-record pace of 2.2 percent from a year earlier, the government said. Prices have now fallen for eight straight months -- a trend that the government highlighted last week for the first time in three years.
The news came amid heightened concern over the Japanese currency, which hit a new 14-year high against the dollar in early Asian trading. The greenback touched 84.41 yen before recovering to low-86 yen levels.
A strong yen and deflation represent a perilous combination for the world's second-biggest economy.
Falling prices, which plagued Japan during its "Lost Decade" in the 1990s, may sound like a good thing. But deflation can hamper economic growth by depressing company profits, sparking wage cuts and causing consumers to postpone purchases. It also can increase debt burdens.
Meanwhile, a strong yen erodes the overseas profits of Japan's big exporters like Sony Corp. and Toyota Motor Corp. It can also aggravate deflation. Prices of imports and raw materials decline, which then pushes domestic consumer prices lower.
"In the midst of deflation, such a sharp rise in the yen is a very serious problem and could drag down the economy," said Fujio Mitarai, head of the Nippon Keidanren, the country's biggest business group. "I certainly hope the government responds with emergency steps."
Concerns overnight about debt problems afflicting Dubai have driven investors to the yen as a safe haven. Dubai World, a government investment fund with debts totaling around $60 billion, has asked creditors if it can postpone payments until May.
The yen also strengthened because of the disappointing comments Thursday by Japanese Finance Minister Hirohisa Fujii, analysts said. He sharpened his tone Friday, calling the yen's recent rise "one-sided" and saying the government would take appropriate measures if needed.
"What the market wants is for him to go a step further and say he is actually going to do something," said Akane Vallery Uchida, foreign exchange strategist at The Royal Bank of Scotland in Tokyo. "Unless he becomes more specific about taking action, it's not convincing enough."
Japan hasn't intervened in the currency market since March 2004. But it looks to be edging closer to some sort of action with prices expected to continue falling. The core consumer price index for Tokyo, seen as a barometer for prices nationwide, declined 1.9 percent.
On the labor front, the government released slightly better news.
Japan's unemployment rate improved to 5.1 percent in October, better than 5.3 percent the previous month and July's record high of 5.7 percent.
The number of jobless, however, rose almost 35 percent from a year earlier to 3.44 million, while the number of employed people fell 1.8 percent to 62.71 million, according to the Ministry of Internal Affairs and Communications.
The ratio of job offers to job seekers stood at 0.44, up for the second month, the labor ministry said. The figure means there were 44 jobs available for every 100 job seekers.
Analysts said the figures confirm that the labor market probably bottomed this summer, but they warn that the future is far from bright. Companies continue to cut costs and wages, and they may be pressured to pare even more as the strong yen and deflation squeeze profits.
Friday's figures also show that many workers have simply given up looking for work and thus are not counted in the official jobless rate.
"Today's unemployment rate should be seen as indicating stagnation rather than improvement in labor conditions," said Chiwoong Lee, economist at Goldman Sachs in Tokyo. "At the same time, the number of involuntary unemployed remains high, suggesting sustain improvement is not about to begin."
Monthly household spending rose 1.6 percent in October from a year earlier, the government said. The figure was lifted by consumer incentives that drove sales of energy efficient appliances and vehicles, analysts said.
The spending outlook appears mixed, with the uptick in labor market conditions, exports and production serving as positive drivers, said Masamichi Adachi, senior economist at JPMorgan Securities in Tokyo.
"But a stall of improvement in business sentiment, particularly with the recent sharp appreciation of yen, and an expected record plunge in winter bonus are discouraging," he said in a note to clients.
Household spending is a key indicator of private consumption, which accounts for about 60 percent of Japan's economy.
Shoppers pack stores as holiday season revs up
Shoppers pack stores as holiday season revs up
Ready, set, shop: Stores open doors to crowds for traditional start of holiday buying season
* By Anne D'Innocenzio, AP Retail Writer
* On 8:56 am EST, Friday November 27, 2009
Shoppers crowded stores and malls in the wee hours Friday, some after spending the night waiting in line, to grab early morning deals and hard-to-find items.
AP - Shoppers line up to pay for their purchases at a Kohl's store in Omaha, Neb., Friday, Nov. 27, ...
The nation's retailers expanded their hours and offered deep discounts on everything from toys to TVs in hopes of getting consumers, many of whom are worried about high unemployment and tight credit, to open their wallets.
A number of stores, including Walmart and many Old Navy locations, opened on Thanksgiving, hoping to make the most of the extra hours. Toys R Us opened most of its stores just after midnight Friday.
But worries about jobs clearly were on top of shoppers' minds as they focused on big bargains on TVs and practical gifts.
At a Best Buy in suburban Cincinnati, store officials said some people starting camping out with tents at 5:30 p.m. Wednesday. The store started handing out tickets for big items, like laptop computers and televisions, around 4 a.m. Friday.
Robin Fryman, 47, of Mount Orab, Ohio, said she and her daughter, a friend and her husband got out at 6:30 a.m. for deals at Best Buy. Her hours as a food worker were recently cut from 40 to 25 per week.
"I've definitely cut down. You have to cut down, because you have to eat," Fryman said. "It's definitely made a difference in the way I'm shopping."
She said she usually shops on Black Friday, but got out earlier this year to find a camera for her daughter. They bought a $300 Nikon camera for $172. Other than that, she's focusing mostly on practical items like clothing.
Dondrae May, a manager at Best Buy's Framingham, Mass., store, said shoppers started lining up at 4 p.m. Thursday for the 5 a.m. opening for the limited early morning specials like the $299 32-inch Dynex flat-panel TV.
He noted that crowds were larger than last year and that shoppers were filling their basket with more items than a year ago, when they were shellshocked following the ballooning of the financial meltdown. The biggest draws were laptops, TVs and GPS systems, he said.
"A year ago, they were focused on what they needed," he said.
At a Walmart in suburban Marietta, Ga, early morning specials on flat-panel TVs, cameras and other electronics were sold out before 7 a.m., two hours after the store started selling the early morning specials. Aside from electronics, store clerks said $2 bath towels, kitchen items and children's toys also were selling well.
Most of the Walmart stores were open on Thanksgiving to prevent the mad dash for the 5 a.m. opening in the aftermath of the death of a Walmart worker on Black Friday in a Long Island store.
After suffering the worst sales decline in several decades last holiday season, the good news is that the retail industry is heading into the Christmas selling period armed with lean inventories and more practical goods on their shelves that reflect shoppers' new psyche.
Still, with unemployment at 10.2 percent, many analysts expect that total holiday sales will be at best about even from a year ago.
Optimism rose in early fall as shoppers spent a little more, but stores say they've seen a sales slowdown since Halloween, putting merchants more on edge.
The promotional blitz typical for the traditional start of the holiday shopping season has high stakes for retailers who've suffered through a year of sales declines. It's also important for the broader economy, which could use a kickstart from consumer spending.
Black Friday gets its name because it traditionally was the day when huge crowds would push stores into "the black," or profitability. But the weekend doesn't provide a forecast for the rest of the season, which accounts for as much as 40 percent of annual sales and profits for many stores.
Still, retailers closely study buying patterns for the Thanksgiving weekend to gauge shoppers' mindset -- what kinds of items they're buying, what deals are luring them.
Stores need to perform well for the traditional start because chances are slim they'll be able to make up for lost sales for the rest of the season.
Associated Press Writer Lisa Cornwell in Cincinnati, AP Writer Kate Brumback in Atlanta and AP Retail Writers Betsy Vereckey and Mae Anderson in New York City contributed to this report.
Ready, set, shop: Stores open doors to crowds for traditional start of holiday buying season
* By Anne D'Innocenzio, AP Retail Writer
* On 8:56 am EST, Friday November 27, 2009
Shoppers crowded stores and malls in the wee hours Friday, some after spending the night waiting in line, to grab early morning deals and hard-to-find items.
AP - Shoppers line up to pay for their purchases at a Kohl's store in Omaha, Neb., Friday, Nov. 27, ...
The nation's retailers expanded their hours and offered deep discounts on everything from toys to TVs in hopes of getting consumers, many of whom are worried about high unemployment and tight credit, to open their wallets.
A number of stores, including Walmart and many Old Navy locations, opened on Thanksgiving, hoping to make the most of the extra hours. Toys R Us opened most of its stores just after midnight Friday.
But worries about jobs clearly were on top of shoppers' minds as they focused on big bargains on TVs and practical gifts.
At a Best Buy in suburban Cincinnati, store officials said some people starting camping out with tents at 5:30 p.m. Wednesday. The store started handing out tickets for big items, like laptop computers and televisions, around 4 a.m. Friday.
Robin Fryman, 47, of Mount Orab, Ohio, said she and her daughter, a friend and her husband got out at 6:30 a.m. for deals at Best Buy. Her hours as a food worker were recently cut from 40 to 25 per week.
"I've definitely cut down. You have to cut down, because you have to eat," Fryman said. "It's definitely made a difference in the way I'm shopping."
She said she usually shops on Black Friday, but got out earlier this year to find a camera for her daughter. They bought a $300 Nikon camera for $172. Other than that, she's focusing mostly on practical items like clothing.
Dondrae May, a manager at Best Buy's Framingham, Mass., store, said shoppers started lining up at 4 p.m. Thursday for the 5 a.m. opening for the limited early morning specials like the $299 32-inch Dynex flat-panel TV.
He noted that crowds were larger than last year and that shoppers were filling their basket with more items than a year ago, when they were shellshocked following the ballooning of the financial meltdown. The biggest draws were laptops, TVs and GPS systems, he said.
"A year ago, they were focused on what they needed," he said.
At a Walmart in suburban Marietta, Ga, early morning specials on flat-panel TVs, cameras and other electronics were sold out before 7 a.m., two hours after the store started selling the early morning specials. Aside from electronics, store clerks said $2 bath towels, kitchen items and children's toys also were selling well.
Most of the Walmart stores were open on Thanksgiving to prevent the mad dash for the 5 a.m. opening in the aftermath of the death of a Walmart worker on Black Friday in a Long Island store.
After suffering the worst sales decline in several decades last holiday season, the good news is that the retail industry is heading into the Christmas selling period armed with lean inventories and more practical goods on their shelves that reflect shoppers' new psyche.
Still, with unemployment at 10.2 percent, many analysts expect that total holiday sales will be at best about even from a year ago.
Optimism rose in early fall as shoppers spent a little more, but stores say they've seen a sales slowdown since Halloween, putting merchants more on edge.
The promotional blitz typical for the traditional start of the holiday shopping season has high stakes for retailers who've suffered through a year of sales declines. It's also important for the broader economy, which could use a kickstart from consumer spending.
Black Friday gets its name because it traditionally was the day when huge crowds would push stores into "the black," or profitability. But the weekend doesn't provide a forecast for the rest of the season, which accounts for as much as 40 percent of annual sales and profits for many stores.
Still, retailers closely study buying patterns for the Thanksgiving weekend to gauge shoppers' mindset -- what kinds of items they're buying, what deals are luring them.
Stores need to perform well for the traditional start because chances are slim they'll be able to make up for lost sales for the rest of the season.
Associated Press Writer Lisa Cornwell in Cincinnati, AP Writer Kate Brumback in Atlanta and AP Retail Writers Betsy Vereckey and Mae Anderson in New York City contributed to this report.
Chile Ministry Formally Answers Peru Espionage Allegations
Chile Ministry Formally Answers Peru Espionage Allegations
SANTIAGO -(Dow Jones)- Chile's Foreign Affairs Ministry handed Peruvian authorities a formal response Tuesday to Peru's accusations Chile has been spying on its neighbor.
Peruvian authorities recently detained a Peruvian military officer, alleging he had spied for neighboring Chile, increasing tensions between the two nations- -which are currently disputing a shared maritime border.
Through diplomatic channels, the Ministry sent its Peruvian counterpart a " verbal note" in which it said that Chile will carry out a "careful study" of documents sent by Peru as evidence of the alleged espionage. Chile's Foreign Ministry, however, does not mention whether a formal investigation will be launched. The results will be sent to Peru once the study is finished, the ministry said in a statement.
Last week Peru's foreign relations minister, García Belaunde, said that if Chile doesn't "investigate" the supposed case of espionage "the whole of the two countries' ties would be evaluated." Some members of Peru's Parliament have asked for the bilateral trade agreement with Chile to be revoked.
The Chilean response also states that the tone of Peru's allegations aren't conducive to "the constructive spirit in which bilateral relations should be conducted."
Relations between the two countries had already been especially cool this year because of increased Chilean arms purchases, and Peru's demands at the International Court of Justice at The Hague over a maritime border Chile considers its own.
-By Anthony Esposito, Dow Jones Newswires;
SANTIAGO -(Dow Jones)- Chile's Foreign Affairs Ministry handed Peruvian authorities a formal response Tuesday to Peru's accusations Chile has been spying on its neighbor.
Peruvian authorities recently detained a Peruvian military officer, alleging he had spied for neighboring Chile, increasing tensions between the two nations- -which are currently disputing a shared maritime border.
Through diplomatic channels, the Ministry sent its Peruvian counterpart a " verbal note" in which it said that Chile will carry out a "careful study" of documents sent by Peru as evidence of the alleged espionage. Chile's Foreign Ministry, however, does not mention whether a formal investigation will be launched. The results will be sent to Peru once the study is finished, the ministry said in a statement.
Last week Peru's foreign relations minister, García Belaunde, said that if Chile doesn't "investigate" the supposed case of espionage "the whole of the two countries' ties would be evaluated." Some members of Peru's Parliament have asked for the bilateral trade agreement with Chile to be revoked.
The Chilean response also states that the tone of Peru's allegations aren't conducive to "the constructive spirit in which bilateral relations should be conducted."
Relations between the two countries had already been especially cool this year because of increased Chilean arms purchases, and Peru's demands at the International Court of Justice at The Hague over a maritime border Chile considers its own.
-By Anthony Esposito, Dow Jones Newswires;
Oil slides below $74 as Dubai woes roil markets
Oil slides below $74 as Dubai woes roil markets
Oil price slides below $74 in Europe as Dubai woes roil markets, deepen economic concerns
* By Barry Hatton, Associated Press Writer
* On 6:38 am EST, Friday November 27, 2009
Oil prices dipped below $74 a barrel Friday as Dubai's debt problems jolted world markets and raised concern about the prospects for global economic recovery.
By early afternoon in Europe, benchmark crude for January delivery was down $4.01 to $73.95 in electronic trading on the New York Mercantile Exchange. The contract rose $1.94 to settle at $77.96 on Wednesday.
Just a year after the global downturn derailed Dubai's explosive growth, the emirate is now so swamped in debt that it's asking for a six-month reprieve on paying its bills. Its main development engine, Dubai World, has said it would ask creditors for a "standstill" on paying back its $60 billion debt until at least May.
That news roiled markets worldwide and sent crude tumbling more than 6 percent in Asia to $72.39 a barrel before the price recovered.
Dubai "provided a wake-up call that not all is yet back to normal" with the world economy, Petromatrix Research said in a report.
"The main factor in the fall seems to be the events in Dubai," said Nick Raffan, head of mining and resources research at consultancy Fat Prophets in Sydney. "People are suddenly reevaluating their risk appetite."
Raffan said oil's losses Friday were driven by increased wariness about investment in riskier assets such as stocks and commodities rather than new information about actual demand for oil.
However, recent figures on durable goods orders in the U.S. suggest growth in demand for oil is likely to remain subdued for awhile, he said.
"Overall U.S. demand for petroleum products remains weak," Petromatrix Research said, adding that most OPEC countries are exceeding their production quota despite the uncertain market for crude.
Trading in the U.S. was closed Thursday for the Thanksgiving holiday.
After zooming to $147 a barrel in July 2008 and crashing to $32 in December, oil prices have meandered in the high $70s for more than a month as investors weigh a slow U.S. recovery against surging Asian demand.
In other Nymex trading, heating oil fell 7.5 cents to $1.9152 a gallon. Gasoline for December delivery dropped 8.9 cents to $1.9083 a gallon. Natural gas for January delivery slid 8.3 cents to $5.080 per 1,000 cubic feet.
In London, Brent crude for January delivery was down $1.87 to $75.12 on the ICE Futures exchange.
Associated Press writer Stephen Wright in Bangkok contributed to this report.
Oil price slides below $74 in Europe as Dubai woes roil markets, deepen economic concerns
* By Barry Hatton, Associated Press Writer
* On 6:38 am EST, Friday November 27, 2009
Oil prices dipped below $74 a barrel Friday as Dubai's debt problems jolted world markets and raised concern about the prospects for global economic recovery.
By early afternoon in Europe, benchmark crude for January delivery was down $4.01 to $73.95 in electronic trading on the New York Mercantile Exchange. The contract rose $1.94 to settle at $77.96 on Wednesday.
Just a year after the global downturn derailed Dubai's explosive growth, the emirate is now so swamped in debt that it's asking for a six-month reprieve on paying its bills. Its main development engine, Dubai World, has said it would ask creditors for a "standstill" on paying back its $60 billion debt until at least May.
That news roiled markets worldwide and sent crude tumbling more than 6 percent in Asia to $72.39 a barrel before the price recovered.
Dubai "provided a wake-up call that not all is yet back to normal" with the world economy, Petromatrix Research said in a report.
"The main factor in the fall seems to be the events in Dubai," said Nick Raffan, head of mining and resources research at consultancy Fat Prophets in Sydney. "People are suddenly reevaluating their risk appetite."
Raffan said oil's losses Friday were driven by increased wariness about investment in riskier assets such as stocks and commodities rather than new information about actual demand for oil.
However, recent figures on durable goods orders in the U.S. suggest growth in demand for oil is likely to remain subdued for awhile, he said.
"Overall U.S. demand for petroleum products remains weak," Petromatrix Research said, adding that most OPEC countries are exceeding their production quota despite the uncertain market for crude.
Trading in the U.S. was closed Thursday for the Thanksgiving holiday.
After zooming to $147 a barrel in July 2008 and crashing to $32 in December, oil prices have meandered in the high $70s for more than a month as investors weigh a slow U.S. recovery against surging Asian demand.
In other Nymex trading, heating oil fell 7.5 cents to $1.9152 a gallon. Gasoline for December delivery dropped 8.9 cents to $1.9083 a gallon. Natural gas for January delivery slid 8.3 cents to $5.080 per 1,000 cubic feet.
In London, Brent crude for January delivery was down $1.87 to $75.12 on the ICE Futures exchange.
Associated Press writer Stephen Wright in Bangkok contributed to this report.
European Banks Have Total UAE Loan Exposure Of $83.7 Billion -RBS
European Banks Have Total UAE Loan Exposure Of $83.7 Billion -RBS
LONDON -(Dow Jones)- European banks have a total of $83.7 billion of loan exposure to the United Arab Emirates, Jaques Callioux, Chief euro-zone Economist at the Royal Bank of Scotland said in a report released Friday.
Using data compiled by the Bank for International Settlements, Callioux said U.K. banks have by far the largest exposure at $49.5 billion, while French and German banks top the euro-zone list with $11.3 billion and $10.2 billion respectively.
Dutch banks have exposure of $4.7 billion, while Swiss banks have $4.3 billion and Italian and Belgian banks share in $3.2 billion.
The scramble to assess which banks have the largest exposure comes after Dubai World, a state-controlled investment company in property and financial services, announced earlier this week that it is asking for a six-month standstill on its debts.
Dubai is one of seven emirates comprising the UAE.
Around half of Dubai World's $60 billion in liabilities have been estimated by Credit Suisse analysts to be held by European banks.
Indeed, analysts at Unicredit commented in their morning credit note that exposure is most likely concentrated in euro-zone and U.K. banks which could " still represent a blow to several names."
Most banks have so far said that either their exposure to Dubai and Dubai World is small, or wouldn't comment on the situation.
RBS's Callioux stressed that, while the data in the report measure exposure to the United Arab Emirates and not to Dubai, they should still serve to provide a rough guide to relative European country exposures.
Callioux also noted that the data only covers loans and not bonds.
-By Michael Wilson, Dow Jones Newswires; 44 20 7842 9349, michael.wilson@ dowjones.com
LONDON -(Dow Jones)- European banks have a total of $83.7 billion of loan exposure to the United Arab Emirates, Jaques Callioux, Chief euro-zone Economist at the Royal Bank of Scotland said in a report released Friday.
Using data compiled by the Bank for International Settlements, Callioux said U.K. banks have by far the largest exposure at $49.5 billion, while French and German banks top the euro-zone list with $11.3 billion and $10.2 billion respectively.
Dutch banks have exposure of $4.7 billion, while Swiss banks have $4.3 billion and Italian and Belgian banks share in $3.2 billion.
The scramble to assess which banks have the largest exposure comes after Dubai World, a state-controlled investment company in property and financial services, announced earlier this week that it is asking for a six-month standstill on its debts.
Dubai is one of seven emirates comprising the UAE.
Around half of Dubai World's $60 billion in liabilities have been estimated by Credit Suisse analysts to be held by European banks.
Indeed, analysts at Unicredit commented in their morning credit note that exposure is most likely concentrated in euro-zone and U.K. banks which could " still represent a blow to several names."
Most banks have so far said that either their exposure to Dubai and Dubai World is small, or wouldn't comment on the situation.
RBS's Callioux stressed that, while the data in the report measure exposure to the United Arab Emirates and not to Dubai, they should still serve to provide a rough guide to relative European country exposures.
Callioux also noted that the data only covers loans and not bonds.
-By Michael Wilson, Dow Jones Newswires; 44 20 7842 9349, michael.wilson@ dowjones.com
US stock futures tumble as world market slide on fears over fallout from Dubai debt problems
US stock futures tumble on fears over Dubai debt
US stock futures tumble as world market slide on fears over fallout from Dubai debt problems
- On 7:22 am EST, Friday November 27, 2009
Stock futures fell more than 2 percent and Treasury prices jumped sharply. The dollar gained against most other major currencies as investors sought safety following steep drops in overseas markets Thursday and again Friday. Commodities prices tumbled.
U.S. markets were closed Thursday for Thanksgiving.
Investors are worried that a default by a government investment company in Dubai over $60 billion in debt payments could have a ripple effect in world financial markets. The fear is that losses in the small emirate, which has drawn wealthy tourists from around the globe in the past decade with its Las Vegas-in-the-Middle East appeal, could imperil a nascent economic rebound.
Worries about bad debt are fresh in investors' minds after the collapse of the U.S. brokerage Lehman Brothers in September last year pushed the world overnight deeper into recession as banks halted lending on fears of a domino effect of bad loans.
The latest trouble on Wall Street come as the U.S. kicks off the unofficial start to the holiday shopping season. Investors will be tracking news from retailers for insights into how much consumers will spend in the coming month. Consumer spending is the biggest driver of the U.S. economy.
Dow Jones industrial average futures are down 222, or 2.1 percent, at 10,220. Standard & Poor's 500 index futures are down 29.20, or 2.6 percent, at 1,079.70. Nasdaq 100 index futures are down 47.25, or 2.6 percent, at 1,747.00.
Trading volume had been expected to be light ahead of a shortened trading session. Light volume could trigger volatility. Stock markets close three hours early, at 1 p.m. EST. Bond markets close a 2 p.m.
Investors rushed into the safety of U.S. government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.22 percent from 3.28 percent late Wednesday. The yield on the three-month T-bill rose to 0.04 percent from 0.03 percent.
The ICE Futures U.S. dollar index, which measures the greenback against a basket of foreign currencies, rose 0.6 percent. The yen, also a safe-haven currency, was higher, hitting a 14-year high against the dollar.
Commodities, which are priced in dollars, fell as the dollar gained. The move reflected an unwinding of trades that relied on a weak dollar to finance purchases of higher-yielding assets. Spooked traders reversing the so-called "carry trade" were demanding safe-haven assets.
Light, sweet crude fell $3.68 to $74.28 in electronic trading ahead of the open of the New York Mercantile Exchange.
European markets, which fell more than 3 percent Thursday, pulled off their worst levels Friday. In afternoon trading, Britain's FTSE 100 fell 0.5 percent, Germany's DAX index fell 0.5 percent and France's CAC-40 fell 0.3 percent.
In Asia, Japan's Nikkei stock average slid 3.2 percent. Hong Kong's Hang Seng index tumbled 4.8 percent. South Korea's benchmark dropped 4.7 percent.
****************************************************************************
Dubai woes hit world stocks again; Asia down most
Dubai debt trouble weighs on world markets again; Asia bears brunt of selling
* By Pan Pylas, AP Business Writer
* On 7:38 am EST, Friday November 27, 2009
LONDON (AP) -- European stock markets regained their poise Friday but Asia fell sharply as investors weighed the impact that Dubai's trouble with $60 billion in debt would have on the global financial and economic recovery.
AP - A money trader work at a dealing room the U.S. dollar rate against Japanese yen on the Foreign ...
AP - A money trader work at a dealing room the U.S. dollar rate against Japanese yen on the Foreign ...
Market confidence has been hit hard by Wednesday's news that Dubai World, a government investment company, has asked creditors if it can postpone its forthcoming payments until May. That stoked fears, mainly in Europe on Thursday, of a potential default and contagion around the global financial system, particularly in emerging markets.
Asian stocks were particularly badly hit as they played catch-up following the big losses in Europe in the previous session. Hong Kong's Hang Seng closed 1,075.91 points, or 4.8 percent, lower at 21,134.50, while South Korea's benchmark plummeted 4.7 percent to 1,524.50.
In Europe, the FTSE 100 index of leading British shares was down 14.18 points, or 0.3 percent, at 5,179.95, while Germany's DAX fell 13.08 points, or 0.2 percent, to 5,601.09. The CAC-40 in France was 15.02 points, or 0.4 percent, lower at 3,664.21. On Thursday, Europe's main indexes slid over 3 percent, with banks, especially those thought to have exposure to Dubai such as Barclays PLC, HSBC PLC and Standard Chartered PLC, particularly badly hit.
All eyes in Europe will be on Wall Street, which was closed Thursday for the Thanksgiving Holiday. Expectations are that it will open down but that the selling won't turn into a rout -- Dow futures were down 236 points, or 2.3 percent, at 10,206 while the broader Standard & Poor's 500 futures slid 31.1 points, or 2.8 percent, at 1,077.80.
"It is likely to take at least a few days before the implications of the impact of a possible default from Dubai are properly digested but for the present it seems that the market is seeing this negative news as a blow to the global recovery but not one that will push it off course," said Jane Foley, research director at Forex.com.
Across all markets, there is a growing awareness that investors may use the upcoming year-end to lock-in whatever profits have been made over the last 12 months.
"Market cynics have been looking for a correction in the equity market, which has blazed the trail in the past seven months," said David Buik, markets analyst at BGC Partners.
"However they have been unable to find sufficient reasons to nail their flag to the mast, by taking profits, whilst alternative asset classes were unattractive options -- well they certainly found an excuse yesterday with the Dubai debt debacle," he added.
Investors were also keeping a close eye on associated developments in the currency markets after the dollar slid to a new 14-year low of 84.81 yen.
However, the dollar climbed back off its lows to 86.46 yen amid mounting expectations that the Bank of Japan may intervene in the markets by buying dollars or selling yen after Japan's finance minister Hirohisa Fujii said he was "extremely nervous" about the movements in the yen and that the "market had moved too far in one direction."
On Thursday, the Swiss National Bank reportedly intervened to buy dollars to prevent the export-sapping appreciation of the Swiss franc. That seems to have worked -- for now, at least -- as the dollar has moved back above parity, trading 0.9 percent higher at 1.0118 Swiss francs.
The British pound has also been battered amid fears about the exposure of Britain's banks to the region. The pound was down 0.9 percent at $1.6375.
Another currency losing some of its shine was the euro, which fell 0.8 percent to $1.4906 -- in times of uncertainty the dollar is considered to be more of a safe haven currency. Investors are also concerned about the exposure of European banks to Dubai.
Elsewhere in Asia, Japan's Nikkei 225 stock average fell 301.72 points, or 3.2 percent, to 9,081.52 while Australia's index dropped 2.9 percent. China's main Shanghai stock measure was off 2.4 percent.
Oil, meanwhile, tracked developments in stock markets and benchmark crude for January delivery fell $3.79 to $74.17 a barrel in electronic trading on the New York Mercantile Exchange.
AP Business Writer Jeremiah Marquez in Hong Kong contributed to this report.
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