Weekend HeadlinesBloomberg:- Lord Browne, CEO of oil giant BP Plc, believes that despite claims to the contrary, the world is not running out of oil, and argues that the price of oil is being pushed higher by such “unfounded” claims. Browne forecasts that oil prices could fall as low as $25-$30/bbl. in the long-term, while falling to around $40 in the near-term.
- Global spare oil production capacity may double within 3 years, helping reduce the “fear premium” that is helping boost oil prices, according to BP Plc, Europe’s largest oil company.
- Indian stocks may be too expensive even after plunging from records set last month, and many of the region’s analysts say the market will fail to extend the biggest two-day rally in two years.
- Australian Prime Minister John Howard will not withdraw troops when Iraqi soldiers take over security in southern Iraq, as they are needed for backup.
- Eni SpA and Union Fenosa SA, partners in a liquefied natural gas plan on Egypt’s Mediterranean coast, will spend $1.5 billion to add a second production line and increase sales of the fuel to the US and Europe.
- Asian companies sold a record amount of new stock in the first five months of this year and paid the lowest fees ever as investment banks including Goldman Sachs(GS), Citigroup(C) and UBS AG(UBS) fought for new clients.
- Most Americans would regard an immediate pullout of US troops form Iraq as an “unmitigated disaster,” White House spokesman Tony Snow said, rejecting calls from Democrats for the Bush administration to set a timetable for withdrawal. According to a recent USA Today/Gallup poll, only 17% of Americans want an immediate US withdrawal.
- Bank of China Ltd., the nation’s second-biggest lender by assets, plans to sell as much as $3.9 billion of stock in the nation’s biggest domestic share sale.
- China’s stocks and bonds may fall after the government ordered banks to increase reserves to help curb an investment boom in real estate and factories in the country.
- Goldman Sachs(GS) named Gary Cohn and Jon Winkelried its new co-presidents and chief operating officers, giving Lloyd Blankfein deputies with experience in both trading and investment banking.
- The US dollar rose to an eight-week high against the yen and climbed versus the euro on speculation Federal Reserve Bank of Atlanta President Jack Guynn in a speech today will be upbeat about US economic growth.
- The yen fell to a record agasint the euro on concern lawmakers will put pressure on Bank of Japan Governor Fukui to resign over his investment in a fund founded by Yoshiaki Murakami, who was jailed for insider trading.
Wall Street Journal:- Nokia Oyj(NOK) and Siemens AG agreed to combine their equipment units in a deal worth about $31.6 billion.
NY Times:- General Electric(GE) is investing in its domestic appliance business to win customers who have traditionally gone after more stylish, high-end brands.
- Mississippi has benefited from an increase in oilfield activity as companies seek to take advantage of higher oil prices by drilling for new wells or restarting abandoned wells.
- Mexico’s deportations and detentions rose 74% to 240,000 in the past four years, almost half from illegal entries across its southern border with Guatemala.
- US National Guard troops are beginning to arrive in the four states bordering Mexico to help bolster security as the Border Patrol seeks to hire more agents to prevent illegal border crossings.
- Board members of the ACLU are discussing proposals aimed at prohibiting members from criticizing the organization’s policies and operations.
- Altria Group(MO) Senior VP Parrish said the company may push one more time next year for US FDA regulation of tobacco.
San Francisco Chronicle:- Gap Inc.(GPS) is poised to introduce a new line of clothing at its flagship Gap division next month as the company strives to revive quality and sales.
Newsweek:- A team of al-Qaeda terrorists planned a 2003 cyanide attack on the New York subway system that was called off by the terrorist group’s No. 2 leader, citing government officials and a new book by author Ron Suskind.
Barron’s:- NetRatings(NTRT), a company that measures audiences on the Internet, may be taken private, possibly at a premium to its current share price.
Reuters:-
Investors ignore warnings in volatile markets.Sunday Times:- NYSE Group’s(NYX) merger with Euronext NV, the Paris-based European stock exchange, may fall apart amid European political opposition and declining stock markets.
London-based Times:- London may become the focal point of Google’s(GOOG) next growth phase as the Internet search engine expands its mobile division, citing senior executives at the company.
Daily Graphic:- Golden Star Resources Ltd. expects to boost gold production by 50% to 300,000 ounces this year, citing company spokesman Magnus Adjah-Kodjoe.
Xinhua News Agency:- China plans to increase its use of solar power, biomass power and other forms of renewable energy to 16% of its total supply in the next 15 years.
Tehran Times:- Iran is likely to sign oil development contracts with China in the “coming days."
Weekend RecommendationsBarron's: - Had positive comments on (COF), (RIO) and (RTP).
- Had negative comments on (LTRE).
Night Trading Asian indices are -.75% to -.25% on average.
S&P 500 indicated +.04%
NASDAQ 100 indicated +.16%.
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Economic Releases1:00 pm EST- The NAHB Housing Market Index for June is estimated at 45 versus a reading of 45 in May.
BOTTOM LINE: Asian Indices are lower, weighed down by commodity shares in the region. I expect US stocks to open modestly lower and to rise into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the week.
