Oil steady below $83 as stock market rally cools
Oil prices hovered below $83 a barrel Friday in Asia as a global stock rally stumbled and the US dollar stabilized.
Benchmark oil for November delivery was up 19 cents at $82.88 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost 32 cents to settle at $82.69 on Thursday.
Oil prices broke above $80 last month as crude traders took their cues from surging stock markets and a weakening dollar, which makes dollar-based commodities such as oil cheaper for investors with foreign currencies.
However, the Dow Jones industrial average was flat Thursday and Asian stock markets were mostly lower. The euro was higher at $1.4076 from $1.4038 the previous day while the dollar dropped to 81.24 yen from 81.56 yen.
Google 3Q profit up 32 pct
as online ads strong
Google Inc.’s third-quarter earnings demonstrated that the Internet search leader is capable of surpassing investors’ short-term expectations while still investing heavily in long-range projects.
Google reported a 32% jump in net income Thursday and provided the most persuasive evidence yet that its past investments are paying off, helping it diversify away from search advertising.
Wall Street was encouraged, and sent Google’s shares soaring 9% to $590.01 in extended trading after the release of results.
Text links placed above or alongside search results are still Google’s main source of revenue, but the company has laid out billions to beef up its ability to sell image-based “display” ads, ads inside Web videos and on mobile phones.
The company paid $3.2 billion for DoubleClick, a display ad network, and $681 million for mobile-ad firm AdMob.
Germany to block BHP, Rio Tinto joint venture
German regulators are planning to block a $120 billion iron ore venture between mining giants Rio Tinto and BHP Billiton Ltd. in Australia, the companies said Friday.
In a statement, Rio Tinto and BHP said they were disappointed that the German Federal Cartel Office has signaled it will prohibit the joint production venture in Western Australia state’s remote Pilbara region.
The companies said they expect to receive a formal notification from the German regulator next week.
“The parties continue to believe that the joint venture is pro-competitive and will increase the supply of iron ore,” the statement said. “However, both BHP Billiton and Rio Tinto acknowledge the concerns expressed by some regulators and the obstacles to achieving clearance for the joint venture.”
BHP and Rio Tinto plan to save at least $10 billion by combining their operations in the Pilbara region.
Euro near $1.41 ahead of Bernanke speech
The euro is within sight of nine-month highs against the dollar ahead of a speech by Federal Reserve Chairman Ben Bernanke that could give more details of new action to stimulate the US economy.
The 16-nation euro bought $1.4094 in Friday morning European trading. That was below the $1.4121 it reached the previous day, its highest since late January, but above its level of around $1.4050 later Thursday.
The British pound, which slipped below $1.60 on Thursday, was up to $1.6034.
The dollar remained weak against the Japanese currency, buying 81.20 yen — still above Thursday’s 15-year low of 80.94 yen.
Currency markets have focused recently on expectations that the Fed will soon announce a bond-buying program, driving interest rates still lower.
China says foreign direct investment rebounds
Foreign direct investment in China rebounded in September, the government said Friday, in a possible sign of renewed confidence in the economy.
Foreign investment in factories and other nonfinancial assets rose 6.1% over a year earlier to $8.4 billion, the Commerce Ministry said. That was up from August’s 1.4% growth rate and $7.6 billion in investment.
Total FDI for the first nine months of the year was $74.3 billion, the ministry said.
Foreign direct investment in China plunged following the global crisis as companies cut back spending.
It revived earlier this year with the growth rate surging to 29.2% in July before August’s decline.
Foreign direct investment includes spending on factories, real estate and other assets but excludes investment in stocks and other financial instruments.