WORLD NEWS 070108

US news get from (Bloomberg) -- Companies in the U.S. eliminated an estimated 693,000 jobs in December, the most since records began in 2001, a private report based on payroll data showed.


The drop in the ADP Employer Services gauge was larger than the median estimate of economists surveyed by Bloomberg News. Today’s report is the first to reflect methodological changes that ADP says will limit the differences between its calculations and the government’s payroll numbers.


15-Year High
The government may report on Jan. 9 that total payrolls fell by 500,000 last month, and the unemployment rate rose to a 15- year high of 7 percent, according to the Bloomberg survey median. The economy lost 1.9 million jobs in the first 11 months of the year.


Other labor-market reports have also shown weakness. Job cuts announced by U.S. employers rose 275 percent last month from December 2007, to 166,348, Chicago-based Challenger. Gray & Christmas Inc. said today. For all of 2008, employers announced 1.22 million job cuts, the most in five years.

Today’s ADP report showed a decrease of 220,000 jobs in goods-producing industries including manufacturers and construction companies. Service providers cut 473,000 workers. Employment in construction fell by 102,000, the 21st consecutive month of cuts in the industry.

Because of that dow fut now minus 100!!

Indonesia news made by myself. Decrease BI Rate 50 bps to 8.75% that will provide positive sentiment for the banking sector, but was wrong (bond prices rise) and IHSG (Indonesia Stock Exchange) surged 14,067 points (0,98%) to 1.421,470. BI rate decrease followed by a decrease in bank loan interest rate from the current 18% to 14-15%. Interest rates are lower can be expected economic stimulus. But lender hope loan rate will become 11- 12%. People still hope interest rate down to 7.5%. BI Rate decline to give positive sentiment against foreign investors because of the size of the gap between the BI Rate with the Fed and other banks.

BUMI it self closed with auto rejection, because of it’s a acquisition action up two subsidiaries Bakrie groups, gave negative sentiment, it will be a burden corporate balance sheet. DO NOT BUY BUMI!!

Crude Palm Oil price which continues to climb penetrate to RM1900/ton level. GOOD FOR CPO SECTOR!!