Forex Investment

Shareholders of Algoma Steel voted strongly in favour of a takeover deal that will see the company acquired by Essar Steel Holdings Ltd. of India.

Algoma said Monday that 82.6 per cent of the votes cast at its annual meeting of shareholders in Toronto were in favour of the takeover.

Canadian steel company takeovers
Company Buyer Price
Algoma Steel Essar Global (India) $1.85B
IPSCO SSAB (Sweden) $8.5B
Dofasco Arcelor/Mittal (Luxembourg) $4.9B
Harris Steel Nucor (USA) $1.25B
Co-Steel Gerdau (Brazil) $600M

Essar offered $56 per share in cash for Algoma back in mid-April, making the deal worth $1.85 billion.

Algoma CEO Denis Turcotte told reporters that Essar will spend $500 million in upgrades within the next three to five years.

The Essar bid is expected to clear its final hurdles and be completed next week.

Algoma went through restructuring under court-ordered creditor protection in the 1990s. The company put itself up for sale in 2005 but could not land a buyer.

The acquisition of Algoma leaves Stelco Inc. as the final Canadian steel company.Stelco has been selling off some assets, and lastweek its CEO said he wanted to sell the company toanother steelmaker.

With files from Canadian Press

Stock futures pointed to a slightly weaker start Friday on recession fears, though tame inflation data helped buck up spirits. Nasdaq futures fell 1 point vs. fair value, S&P 500 lost 2 points and Dow fell 32 points.

Former Fed Chief Alan Greenspan said the odds of a recession have risen to less than 50-50, though that’s not really different that what he said last week.

Foreign markets traded in split fashion. The Shanghai composite charged up 2.6% and Hong Kong’s Hang Seng rose 0.3%. The FTSE 100 fell 0.5% and the Dax slipped 0.1%.

The greenback hit another record low against the euro.

Futures pared some losses after cool inflation data. The core personal consumption expenditure index ticked up 0.1% in August, meeting views. That brought the year-over-year rate down to 1.8%, the lowest in over 3 years and within the Fed’s 1% to 2% comfort zone.

Personal income grew 0.3% in August, the lowest since April and a bit below views. Personal spending climbed 0.6%. Inflation-adjusted spending also rose 0.6%, the best in two years.

The Chicago purchasing managers index will be out at 9:45 a.m. ET and data on construction spending will be out at 10 a.m. ET.

Target () edged up 2% in the pre-market. Merrill Lynch upgraded the retailer to buy from neutral and set a 77 price target. Target had a rough week after warning late Tuesday of weak Sept. sales.

First Solar () climbed 3% after announcing it’ll build another plant in Malaysia.

China Finance Online () gained another 4% to 36.8 ahead of the opening bell. That’s despite Brean Murray’s move to downgrade the stock to hold from buy. China Finance has risen for the last 8 sessions, from just under 15 to nearly 45 intraday on Thursday. Shares did rise 4% that day, but closed at the low end of their range.

Cognos () slipped 2% despite reporting fiscal Q2 income excluding items ahead of views. The software maker also guided Q3 and full-year results mostly in line with estimates. And it said it would buy back up to $200 million or 6 million shares of its own stock.

Wynn Resorts () fell 4.5% in the premarket to 159.42 after soaring to yet another high on Thursday. The casino operator sold 3.75 mil shares at $158 a piece this morning.

(09-12) 11:45 PDT Omaha, Neb. (AP) —

A union representing workers at six Swift & Co. meatpacking plants sued federal immigration authorities Wednesday, alleging agents violated the workers’ rights during raids by roughly handling even those not suspected of crimes.

The United Food and Commercial Workers International Union and the eight workers named as plaintiffs in the lawsuit seek unspecified damages and an order to stop U.S. Immigration and Customs Enforcement from conducting what the union says are illegal raids.

ICE officials investigating identity theft arrested 1,297 workers at the plants in December, but union officials have said that more than 12,000 workers were detained against their will during the raids. Swift has estimated the financial impact at up to $50 million.

Union president Joseph Hansen said workers were handcuffed and held for hours and denied access to phones, bathrooms, legal counsel and their families.

“What happened to the Swift workers … is absolutely an outrage,” Hansen said Tuesday.

According to ICE, 274 of those arrested during the raids were charged with identity theft or other crimes unrelated to immigration law. Nearly all were convicted, ICE spokesman Tim Counts said Tuesday. He disputed the claim that workers weren’t allowed access to phones.

Of those arrested for being in the country illegally, 649 had been deported as of March 1, according to the most recent numbers available from ICE. All were sent to Latin American countries.

ICE returned to the plants in July and arrested 20 more people, including a human resources manager and a union representative on charges of recruiting and harboring illegal immigrants. The latter two cases are pending.

The lawsuit, filed in federal court in Amarillo, Texas, names as defendants Homeland Security Secretary Michael Chertoff and Assistant Secretary Julie Myers, the two agencies and unnamed federal agents who conducted the raids.

A Department of Homeland Security official referred questions to ICE. Counts said ICE attorneys had not yet seen the lawsuit but planned to fight it.

“From what we’ve heard from the complaints, they are baseless,” Counts said.

Counts said civil search warrants gave the agency the right to fully search the plants and question everyone there. Workers were allowed to use their cell phones, company phones and even the phones of federal agents during the operation, he said.

The Food and Commercial Workers union represents 1.3 million workers in the United States, including 250,000 workers in packing and food processing. The plants raided were in Grand Island, Neb.; Cactus, Texas; Greeley, Colo.; Hyrum, Utah; Marshalltown, Iowa; and Worthington, Minn.

Officials at Swift, which is not named as a defendant, did not immediately return a message left Wednesday seeking comment on the lawsuit. Brazilian firm JBS S.A. acquired Swift from a private equity firm for about $1.5 billion in July, making the company the world’s largest beef processor.

___

On the Net:

ICE arrest totals from Swift operation:

Swift & Co.:

«tinyurl.com»

«www.swiftbrands.com»

Action Insight | Written by Administrator | Jun 25 07 14:17 GMT |
Forex Mid-Day Technical Report USD Steady after Existing Home Sales, GBP Pressing 2, JPY Recovers

Dollar is steady after existing home sales came in slightly better than expectation at 5.99m in May even though it’s still another month of decline from upwardly revised 6.01m in Apr. Focus will now turn to tomorrow’s new home sales data. Sterling continues to press 2.0000 level against dollar but lacks decisive momentum to take out this psychological resistance yet. The speculation that BoE will raise base rates again in July’s meeting, i.e. next week and the risk of further tightening beyond is continuing to support the pound. Meanwhile Euro remains steady despite Gfk consumer confidence rose to a six month high of 8.4.

It seems like the selling of yen passed a temporary climax last week as the Japanese currency recovers broadly today. Comments from the Bank for International Settlements in its annual report that there was “clearly something anomalous” in the low-yielding yen’s recent decline is giving some help to the yen too. On the other hand, former Japanese Cabinet member Takenaka said BoJ may raise interest rates by as much as 50bps if the ruling LDP party maintains control of parliament in next month’s elections.Yen could also be dropped by risk aversion buying on China Stock’s fall today. EUR/USD

Daily Pivots: (S1) 1.3409; (P) 1.3440; (R1) 1.3499; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

After edging marginally higher to 1.3473 earlier today, EUR/USD continues to engage in choppy sideway trading. Nevertheless, intraday bias remains on the upside as long as 1.3417 minor support holds. Further rally is still expected to be seen to short term falling trend line (now at 1.3487) first. Break will encourage further rise towards resistance zone at 1.3553 and 100% projection of 1.3262 to 1.3436 from 1.3371 at 1.3545. Touching of 1.3417 will turn intraday outlook consolidative first. But a break below 1.3371 is needed to indicate rally from 1.3262 has completed. Otherwise, another rise is still in favor after consolidation.

In the bigger picture, last week’s strong rebound has dampened the original bearish view, in particular with GBP/USD’s break of 1.9968, which corresponds to EUR/USD’s 1.3553, indicates some more dollar weakness should be seen in the short term. Note that with medium term rising channel remains intact, sustained break of 1.3553 will indicate fall from 1.3681 has completed and is merely a correction in the medium term up trend only, considering that it just met 100% projection of 1.3681 to 1.3391 from 1.3553 at 1.3263 with a 3 wave fall. A retest of 1.3681 would then be seen and the rebound from 1.3262 could extend further towards 61.8% projection of 1.2865 to 1.1.3681 from 1.3262 at 1.3766. But focus will remain on reversal signal as even in such case, the up trend from 1.1639 is still expected to conclude between 1.3668 and 1.3822.

On the downside, break of 1.3371 will indicate the rebound from 1.3262 should have completed and put the immediate bearish scenarios back into focus. That is, rise from 1.2483 has completed at 1.3681, with bearish divergence condition in daily MACD and RSI. As discussed before, whole medium term up trend from 1.1639 is interpreted as having first move completed with three waves up to 1.2978, subsequent sideway consolidation completed at 1.2483. Rise from 1.2483, which is trended as resumption of up trend from 1.1639, is expected to terminate between 1.3668 and 100% projection of 1.1639 to 1.2978 from 1.2483 at 1.3822. With EUR/USD has already touched this resistance zone back in April, it’s also likely that the whole up trend from 1.1639 has completed at 1.3681 too. Focus will then be on medium term rising channel support (now at 1.3094) and next key cluster support at 1.3070 (50% retracement of 1.2483 to 1.3681 at 1.3082, 55 weeks EMA at 1.3065). Sustained break of this support zone will confirm that whole up trend from 1.1639 has ended and turn medium term outlook bearish.

GBP/USD

Daily Pivots: (S1) 1.9937; (P) 1.9965; (R1) 1.0021; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

Cable edges marginally above 2.0000 level to 2.0004 but fails to sustained above 2.0000 psychological resistance so far and turns into sideway trading. Nevertheless, intraday bias remains on the upside as long as 1.9947 minor support holds. As discussed before, break of the short term falling trend line and 1.9968 structural resistance confirms that fall from 2.0132 has completed with three wave down to 1.9261, just being supported by the medium term rising channel. The current rise from 1.9621 is expected to extend further to retest 2.0132 high first. On the downside, below 1.9947 will indicate that a short term top is formed, probably with bearish divergence in 4 hours MACD and RSI too. Pull back should then be seen towards 4 hours 55 EMA (now at 1.9879). But still, further rally is still in expected as long as downside of pull back is contained by 1.9783 resistance turned support.

In the bigger picture, the completion of the fall from 2.0132 in a corrective 3 wave manner and the holding of the medium term rising channel indicates that rise from 1.8090 is still in progress, so is the whole up trend from 1.7047. There are various interpretation of the rally from 1.7047 but none is really convincing. Nevertheless, break of 2.0132 high will encourage further rise to near term target of 61.8% projection of 1.9183 to 2.0132 from 1.9621 at 2.0207 first.

On the other hand, medium term up side momentum remains unconvincing with bearish divergence conditions staying in weekly MACD and RSI as well as daily MACD and RSI. But still, sustained break of the medium term rising channel (now at 1.9687) is needed to confirm completion of the rise from 1.8090 and turn medium term outlook bearish. Otherwise, such rally is still treated as in progress and another rise should be seen even in case of pull back.

USD/CHF

Daily Pivots: (S1) 1.2245; (P) 1.2332; (R1) 1.2380; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/.

USD/CHF edges further lower to 1.2270 today and is now pressing 61.8% retracement of 1.2146 to 1.2468 at 1.2269. At this point, intraday bias remains on the downside as long as 1.2308 minor resistance holds. Break of 1.2269 fibo support will encourage further fall towards short term rising trend line (now at 1.2209). Above 1.2308 will turn intraday outlook consolidation first and probably bring recovery towards 4 hours 55 EMA (now at 1.2364). However, still, break of 1.2427 resistance is needed to confirm decline from 1.2467 has completed. Otherwise, another fall is still in favor.

In the bigger picture, last week’s sharp decline, together with broad based weakness in dollar, is turning outlook a bit mixed. On the one hand, USD/CHF should have completed a medium term head and shoulder bottom formation (ls: 1.1919, h: 1.1878, rs: 1.1993) after taking out the neckline resistance. However, this is not confirmed by breaking of 1.2571 resistance yet. Choppy price actions from 1.1919 could still be merely part of a medium term triangle consolidation.

Nevertheless, favor is still in the former case as long as 1.2146 support holds. Above 1.2427 will indicate rise from 1.1993 has likely resumed for 1.2571 resistance first. Break will confirm the head and shoulder bottom and have medium term outlook turned bullish for 1.2768 resistance and then 1.3283 high. However, break of 1.2146 support will indicate the rally from 1.1993 support has completed. In such case, favor will be switched back to the case that choppy price actions from 1.1919 is merely part of a medium term triangle consolidation. And, down trend from 1.3283 should still resume after completing such consolidation in such case.

USD/JPY

Daily Pivots: (S1) 123.66; (P) 123.89; (R1) 124.12; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

USD/JPY’s retreat from 124.13 continues today and break of 123.45 minor support confirms that a short term top is formed there, with bearish divergence condition in 4 hours MACD and RSI. At this point, intraday bias is turned to the downside and further retreat to 38.2% retracement of 120.78 to 124.13 at 122.85. However, downside should be contained by 122.13 resistance turned support and bring another rally. Above 123.93 will bring retest of 124.13 high.

In the bigger picture break of 122.17 key resistance and 123.28 projection target cleared doubts on the medium term picture. Rise from 108.99 is still in progress after correction 122.17 completed at 115.13. Also, the whole up trend from 101.65, with interim correction from 121.38 completed at 108.99, is still in force. Next upside target will be resistance zone of 100% projection of 101.65 to 121.38 from 108.99 at 128.72 and 100% projection of 108.99 to 122.17 from 115.13 at 128.31. On the downside, break of 120.78 low is needed to raise the possibility that rally from 115.13 has completed and put focus back to this low.

Also, note that USD/JPY is staying comfortably above the long term falling trend line (147.68 to 135.20). Multi-year consolidation pattern that started from 147.60 should have already completed. But, whether current rise from 101.65 represents the resumption of whole up trend from 79.75 remains to be seen. Note that above mentioned medium term projection target of 100% projection of 108.99 to 122.17 from 115.13 at 128.31 and 100% projection of 101.65 to 121.38 from 108.99 at 128.72 are in proximity to 78.6% of 135.20 to 101.65 at 127.95. This cluster resistance zone will be important to determine the long term trend.

EUR/JPY

Daily Pivots: (S1) 165.99; (P) 166.45; (R1) 167.32; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/JPY’s retreat from 166.94 continues today. Upside momentum is seen diminishing with bearish divergence in 4 hours MACD and RSI. A short term top might be in place at 166.94. But still, break of 165.33 support is needed to confirm. Otherwise, further rally is still expected towards next upside target of 61.8% projection of 161.49 to 166.11 from 165.20 at 168.05. Touching of 165.33 will bring consolidation and pull back.

In the bigger picture, strong break of 61.8% projection of 137.16 to 159.63 from 150.75 at 164.64 was also a significant development that indicates the underlying bullishness of EUR/JPY is stronger than we originally thought. Though, interpretation of the rise from 130.60 remains unchanged. First wave up ended at 143.60, subsequent correction ended at 137.167. The third wave up ended at 159.63 while fourth wave correction has ended at 150.75. Rise from there represents the final advance in this structure. Hence next upside target will be 100% projection of 137.16 to 159.63 from 150.75 at 173.22. On the downside, it will take a break of 161.49 support to indicate rise from 150.75 has completed. Otherwise, further rally is still in favor even in case of pull back.

Forex News Digest

http://www.bloomberg.com/apps/news?pid=20601083&sid=a0p1.djE5aJ4&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=atuNqrljz4iQ&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aGTVxhuWKqJQ&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aWdc3e1i3hmQ&refer=currency

http://c.moreover.com/click/here.pl?r989947088
Mon, 25 Jun 2007 11:06:00 GMT from Miami Herald

http://c.moreover.com/click/here.pl?r989944003
Mon, 25 Jun 2007 11:04:00 GMT from Macro World Investor

http://c.moreover.com/click/here.pl?r989931822
Mon, 25 Jun 2007 10:54:00 GMT from Washington Post

http://c.moreover.com/click/here.pl?r989907812
Mon, 25 Jun 2007 10:34:00 GMT from Reuters

http://www.actionforex.com/latest_news/latest_news/forex_news_20060323537/ Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised
06:00 EUR Germany Gfk survey Jul 8.4 7.9 7.3 7.4
12:30 USD U.S. Chicago Fed survey May -0.22% N/A -0.10%
14:00 USD U.S. Existing home sales May 5.99M 5.97 M 5.99 M 6.01M
14:00 USD U.S. Existing home sales M/M May -0.30% -0.30% -2.60% -2.30%

http://www.actionforex.com/general_information/forex_newsletters/forex_newsletter_200507301487/

- (Correcting to say fall in core CPI was the first time in 10 months)

TOKYO (XFN-ASIA) - The core consumer price index, which excludes volatile prices of fresh food but includes energy prices, marked its first annual decline in 10 months in February due to a drop in fuel prices, government data showed.

The Ministry of Internal Affairs and Communications said core CPI last month dropped 0.1 pct from a year earlier, matching market expectations.

The core CPI was flat in May 2006 but rose year-on-year between June and December last year, before being flat again in January this year amid declining crude oil prices.

Bank of Japan governor Toshihiko Fukui recently hinted at the possibility that consumer prices may drop again due to easing crude oil and gasoline prices, but said this does not mean that Japan was

heading back to deflation.

For the first time in nearly three years, gasoline prices fell 0.3 pct from a year earlier in February. The last time that gasoline prices marked a year-on-year drop was in April 2004.

Overall CPI eased 0.2 pct in February from a year earlier, the first decline in 10 months, after being unchanged in January.

For the Tokyo area, core CPI dropped 0.1 pct in March from a year ago after being flat in February. Economists had forecast a flat outcome for March.

The Tokyo CPI is the leading indicator for national price trends and is released a month earlier.

Overall CPI for Tokyo in March was unchanged year-on-year after also being flat in February.

In August last year the ministry changed the base year in computing the CPI to 2005 from 2000 as part of a regular update done every five years to correct for statistical upward drift.

The ministry also reshuffled the CPI basket and the weighting of goods and services covered in the data to reflect Japan’s more high-tech and health-conscious lifestyle. It included DVD recorders, flat-screen televisions and global positioning systems on automobiles to the product basket and revamped the weight of all items.

Prices of most of these products continued to decline last month.

Prices of flat TVs fell 26.0 pct from a year earlier following a 26.7 pct decline in January.

Prices of notebook PCs dropped 19.4 pct while prices of desktop PCs tumbled 15.6 pct. Prices of mobile phone services eased 2.3 pct following a 0.2 pct dip in January.

Based on US standards, which exclude food and energy costs, Japan’s CPI fell 0.3 pct year-on-year in February, down for the 14th straight month, after dropping 0.2 pct in January.

(1 usd = 118.04 yen)

yasuhiko.seki@xfn.com

ys/mas

For more information and to contact AFX: www.afxnews.com and www.afxpress.com