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N.S. government ponies up $36 million for struggling forestry industry

The Nova Scotia government is making up to $36 million in taxpayer’s money available to pulp and paper mills and sawmills in the province over the next five years.

Natural Resources Minister David Morse said Friday the money is needed to help the forestry industry weather what he called an economic “perfect storm.”

Morse denied it is a bailout,saying the industry has been hurt by the soaring loonie, high energy prices, falling housing starts in the United States and changes in global market conditions.

The financial hit adds up to a 50-per-cent drop in revenue for lumber mills, he said.

“I think any of us would appreciate what it would be like to have a 50-per-cent cut in our income. It would dramatically impact the way we run our homes,” the minister said.

Large companies such as Irving, Bowater, StoraEnso and MacTara Ltd. are eligible for the biggest government cheques, Morse said.

Those who own lumber mills will get $16 million more over the next two years to pay for the tree replanting that companies are obliged to do by law.

The province is also setting aside up to $20 million to buy forest land those companies no longer want.

Under the program, the industry’s regional lobby group, the Maritime Lumber Bureau, will get $2 million to help cover legal bills left over from the softwood lumber dispute with the United States.

“We believe that the forest industry in Canada is viable in the long term. It is going through a transition it’s a difficult transition, it’s a global challenge but there are some natural advantages to our forests,” Morse said.

“We have an excellent source of fibre here in Canada and we believe that once we get through this time, that Canada will continue to be the world’s leading exporter of forestry products.”

Other measures in the transition program include a total of $900,000 over three years in additional funding for the Forest Products Association of Nova Scotia Gas Tax Road program, anda total of $210,000 over three years for Forest Safety Society programs.

Forestry in the province employs 16,000 Nova Scotians and has export values of nearly $800 million.

Rio Tinto reports record output of minerals and ores

SYDNEY: Rio Tinto, fighting a takeover approach from a rival mining giant, BHP Billiton, said Wednesday that it produced record levels of iron ore, copper and other industrial minerals in 2007.

Aluminum output rose the most, reflecting Rios acquisition of the Canadian aluminum producer Alcan for $38 billion in November. But, responding to booming demand from China, production records were also set in iron ore, bauxite, alumina, gold and refined copper.

“We are driving the business at record pace, as these numbers clearly show,” the companys chief executive, Tom Albanese, said in a statement accompanying the fourth quarter production report.

BHPs chief executive, Marius Kloppers, has argued that a partnership with Rio would streamline mining operations at a time of high demand for raw materials and would assemble a more efficient supply chain to customers, many of which buy from both companies.

Rio has rejected BHPs three-for-one share swap proposal, worth some $139 billion when it was announced in November.

Analysts said that the robust activity at Rios mines set it on a course to meet profit forecasts of around $7 billion for 2007, though production still appeared restrained by shipping bottlenecks in some locations.

Diversified miners like Rio have faced hurdles with infrastructure, said Grant Craighead, a mining analyst with Stock Resources in Sydney. “The mines are all there and really are running at the capacity of the ports and railways rather than the capacity of the mines,” he said.

Production at Rios Australian coal mines continued to be hindered by rail and port constraints that had led to export quotas being imposed on collieries despite favorable market conditions, Rio said.

While hard coking coal output rose 2 percent in the fourth quarter, production of other coals fell 28 percent.

Fourth quarter refined copper production rose 65 percent, but mined copper fell 14 percent, reflecting a decline in the quality of ore mined from the Kennecott and Northparkes lodes, it said.

Rios 30 percent holding in the Escondida copper mine in Chile, the worlds biggest, delivered a 4 percent rise in mined copper there in the fourth quarter, though refined metal from the mine dropped 7 percent, the companys figures showed.

Fourth quarter iron ore output increased 11 percent over the same period the previous year, driving up full year production to 179 million tons, it said.

Rio Tintos profit from its iron ore division may have topped $3 billion in 2007, maintaining its ranking as the companys second-largest income generator after copper, according to analysts forecasts.

Analysts predict that the prices that mining companies charge steel mills for iron ore will rise by 50 percent or more in the next shipping year starting April 1, 2008 as Rio moves to lift its annual output of ore to 220 million tons.

Fourth quarter aluminum production soared 287 percent, swollen by the inclusion of 618,000 tons produced by Alcan.

BHP, which will report its quarterly production figures on Jan. 23, has until Feb. 6 to make a formal offer for Rio, or walk away under a deadline imposed by Britains Takeover Panel, which oversees mergers and acquisitions.

Shares of Rio Tinto closed 2.95 percent lower on Wednesday, on a day when the broader market fell by 2.5 percent.

Mid-Day Report: Dollar Falls after Unexpected Drop in Existing Home Sales

Action Insight | Written by ActionForex.com | May 25 07 14:40 GMT |
Forex Mid-Day Technical Report Dollar Falls after Unexpected Drop in Existing Home Sales

Existing home sales missed expectation by dropping -2.6% from an upwardly revised 6.15m annualized rate to 5.99m. The disappointment in today’s data casts much doubt on any sign of stabilization in the housing market suggested by yesterday’s strong new home sales data. House prices are down 0.8% yoy while inventory jumped to 8.4 months. Dollar weakens mildly after the news, most notably against the Euro. However, market actions could be limited with market holiday on Monday in sight. EUR/USD

Daily Pivots: (S1) 1.3408; (P) 1.3435; (R1) 1.3455; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/USD’s rebound from 1.3410 extends further in early US session. Break of 1.3410 indicates and short term low could be formed at 1.3410 already and further rebound could be seen to 4 hours 55 EMA (now at 1.3481) or higher). But still, it will take a break above 1.3609 resistance to confirm that fall from 1.3681 has completed. Otherwise, another decline is still in favor and below 1.3410 again will encourage further fall towards 100% projection of 1.3681 to 1.3461 from 1.3609 at 1.3389 first and then 1.3364 cluster support (38.2% retracement of 1.2865 to 1.3681 at 1.3369).

In the bigger picture, risk of 1.3681 being an important medium term top remains high. As discussed before, 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 is treated as resumption of the whole up trend from 1.1639. With such interpretation, we’d expect risk of medium term reversal to increase significantly after EUR/USD met resistance zone between 1.3668 and 100% projection of 1.1639 to 1.2978 from 1.2483 at 1.3822. Hence, focus is now on reversal signals.

On the downside, break of the short term rising channel support is already a warning that the rise from 1.2865 has completed. Decisive break of 1.3364 cluster support (38.2% retracement of 1.2865 to 1.3681 at 1.3369) will confirm such case. More importantly, with bearish divergence condition in daily MACD and RSI, this will warn that the whole rally from 1.2483 has also completed, and, so is the whole up trend from 1.1639. Focus will then be back to medium term rising channel support (now at 1.3032).

GBP/USD

Daily Pivots: (S1) 1.9817; (P) 1.9852; (R1) 1.9877; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

Cable’s sideway consolidation from 1.9895 continues today. As discussed before, further consolidation could not be ruled out and could bring retreat to 4 hours 55 EMA (now at 1.9810). But still, it will take a break below 1.9716 support to indicate fall from 2.0132 has resumed for medium term rising channel support (now at 1.9561) and 1.9545 cluster support (61.8% retracement of 1.9183 to 2.0132 at 1.9546). Otherwise, further rebound is still in favor towards short term falling trend line (now at 1.9960) and 1.9999 resistance.

In the bigger picture, risk of medium term reversal continues to increase. Firstly, the whole up trend from 1.7047 is not clearly impulsive. One interpretation is that rally from 1.7047 ended with three waves up to 1.9024. Subsequent correction ended at 1.8090. Rally from 1.8090 has already met mentioned target of 100% projection of 1.7047 to 1.9024 from 1.8090 at 2.0067. Secondly, regardless of the larger trend, rise from 1.8090 can be interpreted as being a five wave sequence with first wave ended at 1.9142, second at 1.8517, third at 1.9913 and fourth at 1.9183. The channeling property supports this interpretation too. In such case, the fifth wave rally from 1.9183 has also met target of 61.8% projection of 1.8517 to 1.9913 from 1.9183 at 2.0046 too. With bearish divergence condition remains in weekly RSI and daily MACD and key 2.0106 resistance (92 high) not decisively taken out, 2.0132 could be the important medium term top already.

On the downside, firm break of the medium term rising channel support (now at 1.9569) will indicate that the whole rally from 1.8090 has completed and add much credence to the case that an important medium term top is already formed and put focus to 1.9183 low. However, sustained trading above mentioned 2.0106 resistance will dampen the above interpretation and indicates that underlying bullishness in cable is much stronger then we thought.

USD/CHF

Daily Pivots: (S1) 1.2257; (P) 1.2284; (R1) 1.2305; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

USD/CHF’s consolidation from 1.2231 continues and weakens mildly to 4 hours 55 EMA (now at 1.2253) in early US session. At this point, further retreat cannot be ruled out as long as USD/CHF stays below 1.2313 resistance. Bust still, rally from 1.1993 is in force with short term rising trend line (now at 1.2204) remains intact. Above 1.2313 resistance will suggest that rise from 1.1993 has resumed for next upside target of 61.8% retracement of 1.2571 to 1.1993 at 1.2350.

In the bigger picture, previous break of 1.2282 cluster resistance (50% retracement of 1.2571 to 1.1993 at 1.2282) confirms that fall from 1.2571 has already completed at 1.1993 with bullish convergence condition in daily MACD and RSI. More importantly, this will increase the chance that USD/CHF is about to complete a medium term head and shoulder bottom formation (ls: 1.1919, h: 1.1878, rs: 1.1993). Sustained break of 61.8% retracement at 1.2350 and neckline resistance (1.2768 to 1.2571, now at 1.2347) will add more weight to this case. Stronger rally should then be seen to 1.2571 first and then 1.2768.

However, below 1.2124 support 61.8% retracement of 1.1993 to 1.2331 at 1.2122) will indicate that rebound from 1.1993 has possible completed and save the case that recent choppy price actions could merely be 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) 121.19; (P) 121.43; (R1) 121.62; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

USD/JPY rebound strongly after dipping to 120.85 but is still limited below 121.87 high. Consolidation is still in progress as long as USD/JPY stays below this 121.87 high and another fall could be seen. Break of the inner rising trend line support (now at 120.60 will encourage further fall towards 119.43 support. On the upside, above 121.87 will indicate recent rally has resumed for 122.17 high. But still, upside momentum is unconvincing at this moment and upside of the current rally from 117.60 could be limited by this 122.17 key resistance.

In the bigger picture, previous break of medium term rising channel support (108.99, 114.41, 117.87) indicates the whole medium term rally from 108.99 has completed at 122.17. However, current strong rally from 115.13 suggest that price actions from 122.17 is just developing into sideway consolidation to rise from 108.99 only, instead of a sharp reversal. Hence, a retest of 122.17 high is expected to be seen. But still, firm break above this resistance is needed to confirm medium term rally from 108.99 has resumed. Otherwise, medium term outlook will be neutral at best and there should still be another fall to retest 115.13 low before completing such consolidation.

On the downside, below 119.43 support will indicate that the rise from 117.60 has finished and thus warn that the whole rebound from 115.13 has completed too. Focus will then be on 117.60 support and firm break will confirm such case. Deeper fall should then be seen to retest this low and probably further towards 114.02/41 support zone (61.8% retracement of 108.99 to 122.17 at 114.02).

EUR/JPY

Daily Pivots: (S1) 162.67; (P) 163.20; (R1) 163.53; http://www.actionforex.com/forex_analysis_and_forecasts/pivot_points/pivot_points_summary_200603205734/

EUR/JPY’s recovery from 162.18 extends further into US session and is set to retest 164.01 high. However, risk of short term reversal remains high after previous break of the short term rising channel, with bearish divergence condition staying in 4 hours MACD and RSI and with daily MACD remains below signal line. EUR/JPY could now be in formation of a diagonal triangle to conclude the rally from 150.75. Hence, even though another rise could be seen to above 164.01 again, upside will likely be limited by 61.8% projection of 137.16 to 159.63 from 150.75 at 164.64 on further loss of momentum and bring reversal. On the downside, break of 161.05 support will add much weight that rise from 150.75 has ended and deeper decline should then follow to 159.60 support first.

In the bigger picture, EUR/JPY’s previous break above medium term rising channel resistance suggests that strength of the rally from 150.75 is stronger than we originally thought. But still, interpretation of rally 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, targeting 61.8% projection of 137.16 to 159.63 from 150.75 at 164.64 and could terminate there.

On the downside, rise from 150.75 could still resume as long as 159.60 support holds. However, sustained trading below 159.60 will warn that prior break of medium term rising channel resistance was merely a throw-over. Also, this will give a serious warning signal that the whole rise rise from 130.60 has ended. EUR/JPY should set to test the medium channel support (now at 153.51) in such case.

Forex News Digest

http://www.bloomberg.com/apps/news?pid=20601087&sid=agxKazDf_Z7U&refer=home

http://www.bloomberg.com/apps/news?pid=20601083&sid=aLcZH7w93zpI&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=aTbYLa6TNh20&refer=currency

http://www.bloomberg.com/apps/news?pid=20601083&sid=a71cW_7ZGvYE&refer=currency

http://c.moreover.com/click/here.pl?r949642015
Fri, 25 May 2007 12:29:00 GMT from Street Insider

http://c.moreover.com/click/here.pl?r949635107
Fri, 25 May 2007 12:25:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r949574390
Fri, 25 May 2007 11:37:00 GMT from Bloomberg

http://c.moreover.com/click/here.pl?r949548448
Fri, 25 May 2007 11:16:00 GMT from Bloomberg

http://www.actionforex.com/latest_news/latest_news/forex_news_20060323537/ Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised
23:30 JPY Japan CPI Y/Y Apr 0.00% 0% -0.10%
23:30 JPY Japan Core CPI Y/Y Apr -0.10% -0.10% -0.30%
23:30 JPY Japan Tokyo CPI Y/Y Apr 0.00% 0.00% 0.00%
06:00 EUR Germany Gfk index Jun 7.3 6 5.5 5.7
06:00 EUR Germany Import price M/M Apr 0.90% 0.50% 0.60%
06:00 EUR Germany Import price Y/Y Apr 0.50% 0% 0.90%
08:30 GBP U.K. GDP Q/Q Q1 0.70% 0.70% 0.70%
08:30 GBP U.K. GDP Y/Y Q1 2.90% 2.80% 2.80%
09:30 CHF Swiss KOF indicator May 1.96 1.95 1.9
14:00 USD U.S. Existing home sales Apr 5.99M 6.14 M 6.12 M 6.15M
14:00 USD U.S. Existing home sales M/M Apr -2.60% -0.10% -8.40% -7.90%

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

UN urges change in planning as towns and cities face slum surge

THE world will reach a turning point next year when, for the first time, most of its population will be living in towns and cities, a UN agency has said, warning that the change must be managed carefully.

Unless urban planners make provision for this inevitability, particularly in the developing world, towns and cities risk being swamped, Thoraya Obaid, head of the UN population fund (UNFPA) said.

“Urban growth is happening,” Obaid said as the organisation’s State of the World Population 2007 report was published.

“But unless you manage it, it will manage you and could become a hotbed of political unrest and armed conflict.”

The UN has sounded the warning several times before, most notably in the UN Habitat’s 2003 report on the growth of slums, which are home to a third of the world’s urban population.

But the UNFPA’s latest report is the clearest message yet.

It says by 2008 more than 3.3 billion of the earth’s 6.6 billion people will be urbanised, rising to five billion in 2030. Most will be in developing countries, living in cities in low-lying coastal areas at high risk from flooding due to global warming.

Between 2000 and 2030, Asia’s urban population is expected to double to 2.6 billion people, while Africa’s will more than double to 742 million from 294 million. In Latin America and the Caribbean, it will surge to 609 million from 394 million.

“If we want to capitalise on the potential of this urban migration, then we should change our mindset,” Obaid said.

“Policies have to be changed and the proper investments and programmes have to be made,” she said. “Slums, poverty and violence exist because urban growth has not been well managed.”

Obaid said rather than try to keep back the tide of urban migration, as is generally the case, urban planners have to set aside land with basic services like water, shelter and sanitation to accommodate them.

That would allow for proper spatial planning and avoid the unfettered mushroom-like growth of slums, and bring incoming people into the urban fold and the local economy - part-icularly women and the young.

“Urbanisation is a force for good if it is well harnessed and well managed,” Obaid said, noting greater independence for urban women and better access to health and family planning facilities.

“We have to try to change the way people think and act, and we must start now, before it is too late,” Obaid concluded.

Stocks Open Higher On Renewed Optimism

Stocks opened solidly higher as continued overseas central bank injections appeared to buoy financial markets.

As of 10:06 a.m. ET, the Nasdaq rose 0.7%, the S&P 500 0.6% and the Dow 0.5%. The small-cap S&P 600 was the clear leader once again for a 2nd straight session, up 1.2%.

But the major averages are off their highs. Anyone who’s been watching stocks in the last few weeks knows that the market can turn on a dime at a moment’s notice.

Oil prices and Treasury yields are both up on easing fears about the U.S. economy.

Investment banks such as Bear Stearns () are mostly higher. Transports are doing well, notably oceanic shippers such as Dryships (). Retail groups are among the best performers, helped by solid retail sales data. Zumiez () remains a leader.

Chipotle Mexican Grill () is enjoying a solid day for restaurants while Crocs () and Deckers Outdoor () are putting their best foot forward for shoe makers.

Battery and shaving specialist Energizer () shot up 6% toward its 50-day moving average after rebounding off its 200-day line on Friday.

On the downside, many lenders still struggled.

Fannie Mae () fell after federal regulators said Fannie and fellow gov’t-sponsored mortgage giants such as Freddie Mac () could not increase the size of the mortgage portfolio cap.

Accredited Home Lenders () dived 32% as buyout firm Lone Star Funds said it may not complete the deal, citing “drastic deterioration” of the lender’s financials.

9:15 a.m. ET Update: Futures Point To Strong Open

By Vincent Mao

Stock futures pointed to a very strong open Monday ahead of a busy week of economic and earnings news. The Nasdaq is up 15 points vs. fair value, the S&P 500 up 9 points and the Dow up 68.

Last week, the major averages edged higher despite growing turmoil in the credit markets.

The European Central Bank added another 47.67 billion euros ($65.3 billion) into their banking system Monday. Japan’s central bank injected 600 billion yen or $5 billion. European and Asian stock markets were higher.

The Fed will decide at 9:30 a.m. ET, if additional injections are needed.

Retail sales rose 0.3% in July, beating views of 0.2%. Excluding autos, sales climbed 0.4%, bouncing back from a 0.2% dip in June. Economists expected 0.3%.

In M&A news, Akzo Nobel () agreed to buy rival Imperial Chemical Industries for $16.2 billion in cash.

Midwest Air Group () said it would accept a $16-a share bid from TPG Capital. Air Trans () had been pursuing the company for months.

Investment banking giant Goldman Sachs () rose about 2% in the premarket. The company said that a group of investors will invest $3 billion in its Global Equity Opportunities fund, which has lost about 14% over the past 12 months.

Blackstone Group () jumped 9% in pre-market trading on strong earnings. The investment manager has seen some rough times since coming public in June.

Sears Holding () rose 2% despite warning that Q2 earnings may come in below estimates. But the company said it would buy back an additional $1.5 billion of its shares.

Hovnanian Enterprises () edged higher in the premarket. The home builder delivered 3,179 new homes in the third quarter, down 31% from a year ago.

Piper Jaffray upgraded Nordstorm () to outperform from market perform and lifted its price target. The department store retailer reports earnings on Thursday.