October 18Th International Financial Media Headlines

Bloomberg: two joint venture to abandon iron ore project

The world's two largest iron ore giants, BHP Billiton and Rio Tinto, announced that the two sides will abandon the joint venture to build the world's largest iron ore export agency, because the opposition from regulators in Europe and Asia has led to the increasing difficulty in implementation of the scheme.

In recent Monday's announcement, BHP Billiton, based in Melbourne, Australia, said: "recent signs show that the joint venture scheme is almost impossible to be approved by the regulatory authorities."

Subsequently, Rio Tinto also confirmed in a separate statement that the two companies' plans to merge Australian business have been stranded.

At present, BHP Billiton and Rio Tinto are the world's first and three mineral company respectively.

The two companies had previously said that if they could merge mining, railway and port businesses in the Pilbara area, the two sides could at least save $10 billion.

Pengana Capital Ltd., an investment organization, believes that the global cooperation in the past 16 months has resulted in the collapse of the cooperation plan, which will enable Rio Tinto to benefit more than BHP Billiton because the former's products are mainly made of raw materials for iron and steel production.

CNNMoney:

Last week,

In addition, large financial institutions such as Citigroup Goldman Sachs, Morgan Stanley and Wells Fargo group are also the focus of the market.

Last week, as market investors worried that a comprehensive investigation of foreclosure could damage the bank's mortgage business and provoke endless lawsuits.

Reuters: Mei Gao claims that the problem of foreclosure has made financial institutions humiliated.

Du Nuowen (Shaun Donovan), the Secretary for housing and urban development, said last Sunday that the recent exposure of financial institutions to violate the foreclosure process has made the whole industry dishonest and could lead to a further deterioration in the US real estate crisis.

Du Nuowen also pointed out that the US government has launched a comprehensive investigation of the foreclosure crisis and will take severe legal measures to deal with the problems identified.

It is alleged that the major US banks and mortgage service providers did not seriously hearten relevant redemption documents or provided false statements during the foreclosure proceedings.

At present, the Attorney General of all 50 States has announced the investigation of foreclosure. At the same time, the Justice Department and the securities and Exchange Commission of the United States have begun a preliminary investigation into the matter.

Wall Street Journal: pension fund escapes from the stock market

Like many individual investors, corporate pension funds have experienced strong fluctuations in the stock market and huge impact on their investment performance in the past few years.

Now, these pension funds also plan to take the same investment strategy as many individual investors, that is, to escape from the earlier rising stock market and turn to the bond market which is regarded as a safer investment product.

At present, many pension fund managers admit that their past behavior of seeking maximum benefit is a mistake.

On the contrary, many funds are now seeking more stable investment returns.

Data show that many pension funds entered the market in the stock market boom in the 90s, but the size of these pension funds has generally shrunk by about 30% in the first five years of the new millennium. This figure is basically the same as that of individual investors.

According to the data provided by the retirement research center of Boston University, the stock position held by pension funds has dropped to 45% in July.

Many market analysts point out that this trend will continue.

Thestreet: Ford says it has no relationship with Mazda.

Ford automobile, the US automaker, said on Sunday that its relationship with the Japanese automaker Mazda has never changed and the two sides will continue to cooperate as usual.

It is reported that "Nikkei news" quoted last Saturday's news of an unnamed insider, who reported that Ford would reduce most Mazda shares or the position of the number one shareholder would be given up.

Ford made the above statement in response to this report.

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Ford said the report was only a guess from the media.

I do not want to comment too much on this.

Ford spokesman Mark said that the cooperative relationship with Mazda has never changed.

He said: "we will continue to promote cooperation with Mazda and work together to achieve" win-win "in many areas.

It is understood that Ford's current stake in Mazda is 11%.

YAHOO

The latest survey released on Monday showed that the global luxury industry's recovery in 2010 was better than the previous market expectations, thanks to the re improvement of the consumption situation of the US high-income class and the keen enthusiasm of Chinese rich people for luxury consumption.

According to Bain's annual report, sales of high-end clothing, fur, jewellery, watches and other luxury goods are expected to grow by 10% over the whole of 2010 to 168 billion euros ($236 billion 700 million).

This also means that the luxury industry will recover from the recession of 8% in 2009.

Bain Al Pitts O and Claudia D Arpizio said: "since 2010, consumers' enthusiasm for luxury goods has been impressive, especially in the US and European markets."

Marketwatch: Fed officials say higher inflation acceptable

Evans, chairman of the Chicago branch of the Federal Reserve, said on Saturday that he supported the proposal to raise the short-term inflation target of the Federal Reserve in order to help the US economy get rid of the current decline and reduce its risk of deflation Charles Evans.

Evans believes that temporarily raising the level of inflation is one of the tools that the Federal Reserve can consider, because the previous conventional monetary policy such as reducing short-term interest rates has not had a good effect.

Since about two years ago, the Federal Reserve has kept short-term interest rates at a level of 0 to 0.25%.

But according to the latest forecast, the US economy is still in a doldrums, and the unemployment rate will continue to remain high throughout 2011.

Evans said that from a technical point of view, he supported the price-level targeting, which would be quite different from the previous policy of the Federal Reserve.

CNBC:

After an upsurge in the US stock market, an old problem is reappearing in front of investors: can the recent good performance of the US stock market continue for a period of time? The Dow Jones Industrial Average and the standard & Poor's 500 index rose more than 5% so far in 2010.

Most of the two indexes rose from two major sectors: equipment manufacturing industry for large construction projects, and consumer industries such as hotels, restaurants and clothing department stores.

The average growth rate of these two plates has exceeded 15% so far in 2010.

Among them, the performance of some stocks is even more prominent.

For example, the share price increase of engine maker Cummins Inc. has reached 100%, while Priceline.com Inc. has increased by about 60%.

Some fund managers pointed out that their investment in equipment manufacturing and consumer industries will continue.