Golubkov did not say how many staff will be cut and how much
money it will save.Societe Generale said last month it would cut costs and sell
assets to free up 4 billion euros ($5.5 billion) in fresh
capital in a bid to fight volatility on financial markets.
* Comments from Germany take wind out of equity rally* U.S. earnings in focus, Japan earnings start next weekBy Hideyuki SanoTOKYO, Oct 18 (Reuters) - Japan’s Nikkei share average fell
more than 1 percent on Tuesday from a six-week high hit the
previous day on concerns that Europe’s solution to its debt
crisis may not be as fast and comprehensive as some had hoped
for.Shares in Olympus gyrated wildly, tumbling to a
fresh 2-1/2-year low since its shock dismissal of its CEO, with
the camera and endoscope maker under pressure to disclose
details of payments to advisers in the buyout of a UK-based
medical equipment firm. It later ended morning trade up 1
percent.Germany said on Monday that a summit of EU leaders next
Sunday would not produce a miracle cure for the euro zone’s
sovereign debt crisis, a warning that poured cold water on hopes
of a clear-cut solution to the debt’s crisis.”I’d say more than half of equity rally this month had been
driven by hopes of European policy steps. I thought the rally
would run out of steam after the EU summit but it came faster,”
said Soichiro Monji, chief strategist at Daiwa SB Investments.The Nikkei average fell 1.5 percent to 8,742.57,
while the broader Topix index lost 1.3 percent to
752.36.For now, support for the Nikkei is seen around 8,689, a 38.2
percent retracement of its rally to Monday’s six-week closing
high from its Oct. 5 low, and then at its 25-day moving average,
now around 8,650.”As long as the Nikkei stays above its 25-day moving
average, I think the market’s uptrend will continue,” said
Toshiyuki Kanayama, a market analyst at Monex Securities, adding
that he thinks the market is in a rising trend after formation
of double bottom in late September to early October.Shares of exporters, which had benefited from optimism on
the euro zone’s debt crisis in the past week, underperformed the
overall market.Machinery manufacturers and makers of electronics
goods both fell 1.8 percent.Olympus continued to trade heavily and hit a fresh 2
1/2-year low of 1,455 yen before rising back to end morning
trade at 1,570 yen. The stock has lost 37 percent since the
abrupt firing of its CEO on Friday.The company told investors on Monday that it may take legal
action against ousted Chief Executive Michael Woodford, accusing
him of disclosing confidential information in media interviews.Woodford in turn has accused the board of firing him for
probing allegations of improper payments related to
acquisitions, according to media reports.Investors are also focused on U.S. corporate earnings, with
the scorecard so far mixed at best.This week will see reports from Apple Inc , Intel
Goldman Sachs , Bank of America and other
prominent companies.”Looking at U.S. corporate earning so far, I’m left with the
impression that even though EPS is coming in line with
expectations, the top line is weak at many companies. I expect
global shares to slip towards the end of month,” Monji said.Earning announcements from Japanese companies will also
gather pace in the final week of October. Analysts are generally
upbeat on the past quarter as companies are recovering from the
damage from the earthquake and nuclear accident in March.Still, the yen’s strength and signs of slowdown in the
global economy are hurting some companies, especially exporters.Yaskawa Electric , which cut its operating profit
outlook for the year to March to 14 billion yen from 20 billion
yen on the strong yen and slow sales of motors used in
chipmaking equipment, dropped 6.1 percent to 589 yen.
Sales were rising in Puma’s twelve most important markets,
including Italy and Japan, and stock-market jitters were not
showing in its business, he said.
NEW YORK Oct 13 (Reuters) - Billionaire investor Carl
Icahn reported a 9.8 percent stake in Navistar International
Corp on Thursday and said the truck and engine maker’s
shares have been undervalued.Icahn has held talks with Navistar’s management to discuss
its business and will seek to have additional conversations to
discuss strategies, the investor said in a filing with the U.S.
Securities and Exchange Commission.Navistar shares rose more than 5 percent to $40.75 in
aftermarket trading on Thursday. It closed up 0.3 percent at
$38.68 on the New York Stock Exchange earlier on the day,
valuing the company at about $2.8 billion.Icahn has also discussed the possibility of adding his
nominees to Navistar’s board of directors, but no agreement has
been made on the matter, the filing showed.
* HK rally since Oct. 4 largely on short-covering - dealer* Mainland property leads HK gains after bullish sales* Signs of bearish trend bottoming out in ShanghaiBy Clement TanSHANGHAI, Oct 13 (Reuters) - Hong Kong shares were higher at
midday on Thursday, poised to extend a five-session winning
streak on strength in mainland property developers that posted
strong gains in contract sales for the first three quarters of
the year.Turnover on the Hong Kong bourse remained lacklustre, as it
has been over the last five sessions, suggesting investors are
still cautious despite a boost from a mainland sovereign wealth
fund earlier this week after it raised its controlling stakes in
the “Big Four” Chinese banks.”Retail investors have not been really chasing this rally. A
lot of investors, caught out by this change of sentiment, are
just covering short positions,” said Tanrich Securities
vice-president of equity sales Jackson Wong in Hong Kong.The Hang Seng Index was up 1.91 percent at 18,680.08
at the midday trading break. It has regained almost 15 percent
since hitting a 29-month low on Oct. 4. The China Enterprises
Index outperformed, jumping 3.05 percent.Mainland property developers played a big part in the gains.
China Resources Land Ltd jumped 14.6 percent and
Evergrande Real Estate Group Ltd advanced 20.3 percent
in strong volume.Thursday’s gain came after Evergrande said its property
sales in September jumped 79.4 percent from a year earlier, the
latest major Chinese developer to announcing strong growth in
contract sales in 2011 to date despite Beijing’s efforts to cool
the property market.Fears of a hard landing for the Chinese economy have hit
mainland property and financial stocks hardest as longer-term
investors liquidated positions and as short-selling spiked.
Evergrande lost almost half of its market capitalisation in
September alone.On the Hang Seng Index, gains on Thursday put it at the top
end of a downside gap that opened up between the low of Sept.
21, at 18,698.9, and the high on Sept 22, at 18,296.8, one of
several that opened up after losses topped 14 percent last
month.MATERIALS SUPPORT SHANGHAI GAINSThe Shanghai Composite Index was up 0.5 percent at
midday as the highly cyclical materials sector led gains with
A-share turnover at the highest since Aug. 12, suggesting
investors were regaining an appetite for risk.With the Shanghai benchmark’s 3 percent climb on Wednesday
entirely enveloping Tuesday’s uptick on the charts in a down
trend and in strong volume, there are strong suggestions that
bearishness could be bottoming out on the Shanghai benchmark.Anhui Conch Cement Co Ltd jumped 4.4 percent,
while Aluminium Corp of China Ltd (Chalco) and
Baoshan Iron & Steel Co Ltd each gained 1.7
percent.Anhui Conch lost more than 22.5 percent in September, its
worst month since the 2008 financial crisis, compared with an 8
percent decline on the Shanghai Composite Index.Several funds have been gradually returning to mainland
markets since Central Huijin, the domestic investment arm of the
country’s sovereign wealth fund, was reported on Monday to be
raising its stakes in the “Big Four” Chinese banks over the next
12 months.Several analysts said Huijin’s move was not only seen by
investors as an affirmation of the investment value of banking
stocks but also a boost to sentiment, with investors assured the
government would do all it took to support the market.
About Dortha notes
