Chinese stocks tumble again, ignoring Beijing's blandishments

SHANGHAI | By Pete Sweeney

Investors look at computer screens showing stock information at a brokerage house in Shanghai, May 26, 2015.

Reuters/Aly Song

China stocks fell sharply again on Thursday, fighting off fresh moves by regulators to restore confidence and raising questions about how much more firepower Beijing can bring to bear before a full-scale panic sets in.Shanghai's benchmark share index crashed below 4,000 points for the first time since April - a key support level that analysts said had been seen as a line in the sand that Beijing had to defend, below which more conservative investors would start ejecting from their leveraged positions, widening the rout.
Chinese markets, which had risen as much as 110 percent from November to a peak in June, have collapsed at an incredibly rapid pace in since June 12, losing more than 20 percent in jaw-dropping volatility as money surges in and out of the market.
That drop has wiped out nearly $3 trillion in market capitalization, more

Traders now betting Fed to wait until 2016 for first rate hike

A detail from the front of the United States Federal Reserve Board building is shown in Washington October 28, 2014.

Reuters/Gary Cameron

U.S. short-term interest-rate futures contracts rose on Thursday as a weaker than expected government report on jobs prompted traders to put on bets the Federal Reserve will wait to raise interest rates until next year. Futures contracts show that traders now see January as the first Fed meeting when a rate hike is more likely than not, based on CME FedWatch, which tracks expectations using its Fed funds futures contracts.
Traders see just a 49 percent chance of a December rate hike, down from 57 percent just before the report was published. The report showed a drop in the U.S. unemployment rate to 5.3 percent which reflected an exit of workers from the

Oil rises after weaker-than-expected U.S. jobs data hits dollar

LONDON | By Karolin Schaps

People are seen at a petrol station in Cairo, January 13, 2015.

Reuters/Mohamed Abd El Ghany

Oil prices edged higher on Thursday as the U.S. dollar slipped following weaker-than-expected U.S. non-farm payrolls data. Poll indications that Greek citizens were expected to back a cash-for-reforms deal in a referendum on Sunday added to the bullish momentum, traders said.
Traders were also keeping a close eye on nuclear talks between Western powers and Iran, looking for any sign of a deal to lift sanctions on the oil-rich nation.
Brent futures were trading 60 cents higher at $62.61 per barrel at 1247 GMT. Front-month U.S. crude futures were up 18 cents at $57.14 per barrel.
The payrolls data weighed on the U.S. currency, which in turn lent support to dollar-priced oil. The figures showed U.S. job growth slowed in June and Americans left the labour force in droves.
Oil prices had slumped between 2.5 and 4 percent on Wednesday after a surprise weekly rise in U.S. crude inventories, the first build since April. [EIA/S]
The stock increase came on the back of strong U.S. production.
"Overall, production was supported by

Weak U.S. employment report dampens September rate hike hopes

WASHINGTON | By Lucia Mutikani

Job seekers listen to prospective employers during a job hiring event for marketing, sales and retail positions in San Francisco, California, in this file photo taken June 4, 2015.

Reuters/Robert Galbraith/Files

U.S. job growth slowed in June and Americans left the labor force in droves, tempering expectations for a September interest rate hike from the Federal Reserve. Nonfarm payrolls increased 223,000 last month, with construction employment unchanged and the mining sector purging more jobs, the Labor Department said on Thursday.
Adding to the employment report's soft tone, 60,000 fewer jobs were created in April and May than previously reported.
At least 432,000 people dropped out of the labor force, pushing the unemployment rate two-tenths of a percentage point lower to 5.3 percent, the lowest since April 2008.
The shrinking work force drove the labor force participation rate, or the share of working-age Americans who are employed or at least looking for a job, to 62.6 percent, the lowest reading since October 1977. The participation rate had

S.Africa govt sells stake in Vodacom to fund Eskom: Treasury

Reuters

S.Africa's Treasury says government has sold stake in Vodacom to finance Eskom. PHOTOS: GCIS

South Africa's government has sold its stake in mobile telephone company Vodacom to the Public Investment Corporation to finance a 23 billion rand allocation to cash strapped power utility Eskom, the Treasury said on Wednesday.
(READ MORE: Eskom not bankrupt says acting CEO)
"The sale of the Vodacom stake was the most viable option for ensuring that government was able to swiftly realise the proceeds and inject equity into Eskom to bolster the utility," the Treasury said in a statement.

S.Africa's Eskom expected to seek bigger tariff rise next time

Reuters

S.Africa's Eskom expected to seek bigger tariff rise next time. PHOTOS: Electrification Online

Cash-strapped power firm Eskom will seek an even bigger tariff increase next time around after South Africa's energy regulator rejected the utility's bid to raise prices in July, industry experts said on Tuesday.
State-owned Eskom is struggling to meet demand in Africa's most advanced economy and has been relying on diesel-fired power stations to shore up supply in a bid to prevent power cuts that have become an almost daily feature in the country.
On Monday, the energy regulator turned down Eskom's bid for a 9.58 percent hike to buy diesel to run its gas turbines and pay independent power producers, saying the application lacked crucial information.
However the regulator, NERSA, said it would "leave the door open" for Eskom to reapply.
Some analysts and industry players predicted the

Could Greece become the new Zimbabwe on IMF default?

By Trust Matsilele

Will Greece become the new Zimbabwe? PHOTOS: Youtube

Greece has become the first developed economy to default on loan repayments to the International Monetary Fund.
The country joins some of Africa’s failed states that include Somalia, Sudan and Zimbabwe.
The European country defaulted on a 1.7 billion US dollar loan repayment to the IMF, a move that could further send panic to citizens set to vote on whether or not to approve creditors’ bailout agreement terms this Sunday.
Dylan Bester from Saxo Capital Markets said, the closure of the country’s capital markets would also affect the country’s recovery and quick facilitation of financial flows.
“The country’s GDP has not been great and they have been posting around a negative point six per cent in the past few years. Any move towards the country’s local currency would severely impact on the economy,” he said.
Some analysts predict that Greece might consider pulling out

Commission gives a nod to Vodacom/Neotel merger

By Trust Matsilele

Vodacom will not shed Neotel jobs as a result of the merger with Neotel. PHOTOS: Vodacom

The Competition Commission has approved the Vodacom/Neotel merger with conditions and has recommended the move to the Competition Tribunal.
South Africa’s mobile telecommunications company, Vodacom Group Ltd 3.18% intends to acquire Neotel.
The proposed transaction is likely to substantially lessen or prevent competition in the mobile services market.
“The acquisition will confer first mover advantages to Vodacom relating to network speed, capacity and mobile offerings. Vodacom will not be constrained by other competitors as they are unlikely to match its offering,” said the Commission in a statement.
“These factors taken together will likely lead to reduced choice and higher prices to end customers in the absence of effective constraints on Vodacom. The merger is also likely to have a significant impact on the structure of the South African mobile markets and future competitive dynamics.”
The Commission said there was a negative effect of

Greece defaults on IMF payment despite last-minute overtures to creditors

Reuters

Greece defaults on IMF payment despite last-minute overtures to creditors.

Greece's last-minute overtures to international creditors for financial aid on Tuesday were not enough to save the country from becoming the first developed economy to default on a loan with the International Monetary Fund.
The IMF confirmed that Greece had not made its scheduled 1.6 billion euro loan repayment to the fund. As a result, IMF Managing Director Christine Lagarde will report to the global lender's board that Greece is "in arrears," the official euphemism for default.
Fears of a Greek default have unnerved financial markets on concerns that it would ultimately lead to the country's exit from the euro common currency. The fate of Greece's membership in the 19-nation currency bloc still hangs in the balance ahead of a referendum on Sunday when Greek citizens will vote on whether to accept the austerity terms of continued international aid.
President Barack Obama said on Tuesday the financial crisis in Greece should not create a major shock for the U.S. economy, but warned that its fallout could dampen global growth.
IMF spokesman Gerry Rice said Greece can now only receive further funding from the global lender once the arrears are cleared. He confirmed that

Jennifer Garner-Ben Affleck Divorce Update: Did Affleck’s Drinking, Gambling End Marriage? Duo Never Signed Prenup

By Suman Varandani @suman09 s.varandani@ibtimes.com

After months of speculation about the status of their relationship,Ben Affleck and Jennifer Garner announced Tuesday that they “have made the difficult decision to divorce.” Getty Images/Jason Merritt

Ben Affleck and Jennifer Garner’s 10 years of marriage may have ended because of the former’s excessive drinking and gambling, sources told TMZ. After months of speculation about the status of their relationship, the two announced Tuesday that they “have made the difficult decision to divorce.”
A source close to Garner told TMZ that Affleck’s drinking and gambling had increased over the last few years and the 43-year-old actress was “fed up” and “couldn’t take it anymore.” According to Radar Online, the couple has decided to keep the reason of their split a secret. Affleck and Garner “made a pact that they are never going to talk to anyone about their divorce,” a source told Radar Online. “They’re done talking about it. Even in interviews.”
Rumors about the couple’s divorce first