Oil falls after US bailout deal

SINGAPORE: World oil prices fell in Asian trade Monday after a proposed US government bailout of the financial sector moved closer to Congressional approval, dealers said.

New York's main contract, light sweet crude for November delivery, fell 1.04 dollars to 105.85 dollars from 106.89 at the close of floor trading on the New York Mercantile Exchange Friday.

Brent North Sea crude for November delivery dropped 69 cents to 102.85 dollars a barrel.

On Sunday US lawmakers struck a deal on draft legislation for the bailout of up to 700 billion dollars for struggling Wall Street banks hit by the worst financial crisis since the Great Depression of the 1930s.

Kashmala urges foreign investors to make investment in Pakistan

BEIJING: MNA Kashmala Tariq who is representing Pakistan at the 2008 Summer Davos of the World Economic Forum (WEF) being held in Tianjin urged foreign investors to play their due role in making investments in Pakistan to address the socio-economic problems of the people.

“I have held very fruitful meetings with CEOs of a number of key business tycoons including one dealing with solar energy and another business magnate from Holland that is keen to make investment in dairy and mobile banking in Pakistan, Kashmala Tariq told APP in an interview on Sunday.

Asian currencies higher against dollar

HONG KONG: Asian currencies ended the week mostly higher against the dollar as traders awaited the fate of a massive US rescue package aimed at stabilising the global finance sector and economy.

Japanese yen rose moderately during the week, taking advantage of selling pressure on the dollar after political wrangling held up a proposed Wall Street bailout plan, adding to market jitters, dealers said.

After a volatile week, the Japanese currency stood at 105.68 against the dollar late Friday, up from 107.33 a week earlier.

The Australian dollar was likely to trade in a tight range in the week ahead unless the US government's 700 billion US dollar Wall Street rescue passage succeeded, dealers said.

ECC meets to review economic situation

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) which met here on Tuesday under the chairmanship of Prime Minister Syed Yousuf Raza Gilani reviewed the price situation and it was informed that sensitive price indicator has registered decline during the last two consecutive weeks of this month.

The prices of 17 items have registered increase, while prices of 15 items have registered a decline and 21 items remained unchanged during the week ending September 18.

The ECC also reviewed the wheat stock position which was found comfortable level.

The ECC was further informed that the import of 2.5 million tonnes wheat will be completed by the end of this year.

Gold up at 21,600

KARACHI: Gold moved up by Rs 258 to Rs 21,600 per 10 grams in the local market Tuesday, as its international price remained surged to $ 893 an ounce, market sources said.

Silver escalated to Rs 351.42 per 10 grams.

Etisalat to tie up with Indian Swan

NEW DELHI: Emirates Telecommunications Corp is going to tie up with India's privately held Swan Telecom, India's telecoms minister, Andimuthu Raja, told reporters at an industry event on Tuesday.

"I am told unofficially one of the companies which got spectrum in some of the areas is going to align with Etisalat," he said.

When asked, which Indian company was involved, the minister said: "Swan, Swan ... informally I am told."He declined to give further details.

India's Business Standard newspaper earlier reported Etisalat was to buy a 49 percent stake in India's Swan Telecom for around $1.3 billion.

Etisalat Chief Operating Officer Ahmad Julfar said it the firm was set to announce an acquisition but did not give further details.

Oil prices make historic gain

NEW YORK: The price of oil, below $100 for much of last week, rocketed to its biggest one-day dollar gain in history as speculators had to buy at any price to deliver on contracts expiring that day.

Light, sweet crude oil for October delivery closed the Nymex trading day Monday at $120.92 per barrel, a leap of $16.37 a barrel from Friday's close.

The run-up smacked against Nymex's $10 limit, halting electronic trading for five minutes in the afternoon before the limit automatically reset to $20.

There was no interruption in "open-outcry" trading at the Nymex, says spokeswoman Brenda Guzman.

Pakistan, India agree on Kashmir trade

NEW DELHI: Pakistan and India agreed on Monday to start trading in the disputed Himalayan region of Kashmir.

The decision was taken after talks involving senior officials and chaired by the deputy foreign ministers of the two countries.

An agreement is now expected to be signed during a meeting between India's Prime Minister Manmohan Singh and Pakistan's newly-elected president, Asif Ali Zardari, in New York later this week.

The meeting will be held on the sidelines of the current UN General Assembly session.The news channel said trade will begin at the Srinagar-Muzaffarabad and Poonch-Rawlakot checkpoints.

It also said that the lists of items subject for trade on both sides had been exchanged.

Sindh flour mills shutdown

KARACHI: Sindh flour mills have been shut down for indefinite period from today after a row between the Sindh Flour Mills Association and provincial ministry of food.

Chairman Flour Mills Association Sindh Circle Iqbal Dawood Pakwala has said that the flour mill owners have decided to close the mills after raids by the food vigilance committees of the food department and armed men of the provincial minister of food Mir Nadir Ali Magsi.

He alleged that the illegal food vigilance committees demanding Rs. 30 per wheat bag as gratification from all flour mills throughout Sindh. They are demanding monthly Rs. 45 millions from the mills, he further claimed.

Meanwhile, provincial minister of food Mir Nadir Ali Magsi has warned the millers to avoid the strike otherwise strong action will be taken against them including cancellation of the wheat quota of the mills.

“The vigilance committees’ raids will be continued in Karachi,” he added.

India, Pak to discuss cross-LoC CBMs tomorrow

ISLAMABAD: India and Pakistan will discuss the modalities for launching cross-LoC trade and other confidence-building measures related to Jammu and Kashmir.

The Joint Working Group on cross-LoC CBMs, comprising senior officials, will seek to marry ideas of the two sides in an effort to ensure early start of new measures, official sources said here today.

Launch of commerce on the Srinagar-Muzaffarabad route would be high on agenda of the discussions, they said.

India and Pakistan both has been keen on launching the cross-LoC trade since the proposal was first mooted in 2005 but the two countries have failed to reach a consensus on issues like items to be traded.

US crisis may delay market reforms in Asia

WASHINGTON: The American financial crisis is expected to delay capital market reforms in China and other developing Asian economies stunned by the colossal damage unleashed by complex financial contracts on the United States, experts say.

Flush with cash reserves, many developing Asian nations have been prodded by Western financial institutions to deepen their capital markets by introducing sophisticated financial derivatives to hedge against various risks.

US crisis may delay market reforms in Asia

WASHINGTON: The American financial crisis is expected to delay capital market reforms in China and other developing Asian economies stunned by the colossal damage unleashed by complex financial contracts on the United States, experts say. Flush with cash reserves, many developing Asian nations have been prodded by Western financial institutions to deepen their capital markets by introducing sophisticated financial derivatives to hedge against various risks.

But as derivatives tied to housing mortgages-backed securities were blamed for the American turmoil whose losses could reach one trillion dollars, Asian economies would tread more cautiously in adopting complex financial trading contracts, the experts said.

Plan for economic aid to Pakistan to be discussed next week

WASHINGTON: A special high-level conference aimed at evolving a comprehensive plan to provide urgently-needed economic assistance to Pakistan will take place in New York on September 26 on the sidelines of the U.N.

General Assembly, a Pakistani embassy spokesman said Saturday.

The "Friends of Pakistan" will be hosted by President Asif Ali Zardari, who will lead the Pakistan delegation to the Assembly's 63rd session, US Secretary of State Condoleezza Rice and British Foreign Secretary David Miliband.

The G-8 countries -- France, United States, United Kingdom, Russia, Germany, Japan, Italy and Canada -- China, Saudi Arabia and United Aran Emirates (UAE) will participate in the conference.

Oil trades mixed in Asia

ISLAMABAD: World oil prices were mixed in Asia Friday in a market focussed on global financial turmoil after US officials met to discuss a plan for addressing bad assets at the root of a world credit crisis, analysts said.

New York's main contract, light sweet crude for delivery in October, rose 24 cents to 98.12 dollars a barrel after a gain of 72 cents to 97.88 dollars at the close of trading on the New York Mercantile Exchange on Thursday.

Brent North Sea crude for November delivery dropped four cents to 95.15 dollars after advancing 35 cents to settle at 95.19 dollars Thursday in London.

US Fed pop up $3 trillion money-market fund

WASHINGTON: The federal government has stepped in to bolster the teetering $3 trillion money-market mutual fund industry and stem a wave of withdrawals that resembled a Depression-era run on the banks.

The Treasury Department said Friday it will tap into a $50 billion fund created during the Depression and temporarily provide guarantees for the popular investment products, held in some 38 million accounts that enable investors to see modest returns while keeping cash readily available if needed.

Providing additional support, the Federal Reserve took steps to back typically safe commercial short-term lending that underlies fund assets.

The moves have been criticized as risky by the American Bankers Association.

Dollar peaks at fresh high of Rs77.80

KARACHI: The value of rupee in the inter-bank market today further declined by paisa 5 to a dollar closing at the fresh high of Rs77.80.

Forex market dealers said that the greenback, which yesterday had closed at Rs77.75, carried over the pressure for the whole day today, which saw it at a time traded as low as at Rs78.25, but the rupee later on some recovery, yet eroded by paisa 5 wrapped up at Rs77.80.Analysts said that the depleting foreign exchange reserves in the country, soaring imports and the absence of dollar inflow from foreign investors continuing the erosion of the value of rupee.

They further said that the Central Bank was selling dollar in future by buying it from the ready market, which continued triggering rupee melt down.

Oil trades mixed in Asia

SINGAPORE: World oil prices were mixed in Asia Friday in a market focussed on global financial turmoil after US officials met to discuss a plan for addressing bad assets at the root of a world credit crisis, analysts said.

New York's main contract, light sweet crude for delivery in October, rose 24 cents to 98.12 dollars a barrel after a gain of 72 cents to 97.88 dollars at the close of trading on the New York Mercantile Exchange on Thursday.

Brent North Sea crude for November delivery dropped four cents to 95.15 dollars after advancing 35 cents to settle at 95.19 dollars Thursday in London.

Oil rebounds three dollars in Asia

SINGAPORE: Oil prices rebounded by more than three dollars in Asia on Wednesday after dropping to seven-month lows on worries for slowing energy demand.

New York's main contract, light sweet crude for October delivery, rose 3.17 dollars to 94.32 dollars a barrel after a fall of 4.56 dollars to 91.15 at the close of floor trading on the New York Mercantile Exchange Tuesday.

Brent North Sea crude for delivery in November was 3.47 dollars higher at 92.69. The contract tumbled 3.16 dollars to 89.22, a seven-month low, on Tuesday in London.

Global economic worries have helped pull oil down from record highs above 147 dollars a barrel reached in early July.

US Government bails out AIG with $85 billion loan

WASHINGTON: For the second time this month, the U.S. government put taxpayer money on the hook to rescue a private financial company, saying the failure of the huge insurer American International Group Inc. would further disrupt markets and threaten the already fragile economy.

The Federal Reserve said Tuesday it would provide up to $85 billion in an emergency, two-year loan to rescue AIG, which teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued. In return, the government will get a 79.9 percent stake in AIG and the right to remove senior management.

Oil falls more than three dollars in Asia

SINGAPORE: Oil prices dropped more than three dollars in Asian trade on Tuesday after the collapse of US investment bank Lehman Brothers accentuated fears for global economic health, analysts said.

New York's main contract, light sweet crude for October delivery, plunged 3.95 dollars to 91.76 dollars a barrel following a fall of 5.47 dollars to 95.71 at the New York Mercantile Exchange on Monday.

Brent North Sea crude for November delivery dropped 3.32 dollars to 90.92 dollars. The October contract, which expired Monday, tumbled 5.20 dollars to close at 92.38 dollars.

The collapse of Lehman Brothers and the 50-billion-dollar takeover by Bank of America of ailing Wall Street investment bank Merrill Lynch continue to reverberate.