Golden Fibonacci

June 30 (Bloomberg) — Crude oil rose for a second day, climbing above $72 a barrel in New York after Nigerian militants shut a field operated by Royal Dutch Shell Plc, disrupting supply from Africa’s largest producer.

Crude oil for August delivery gained as much as 76 cents, or 1.1 percent, to $72.25 on the New York Mercantile Exchange. It was at $72.17 at 9:01 a.m. in Singapore. Yesterday, the contract gained $2.33, or 3.4 percent, to settle at $71.49 a barrel, the highest close since June 12.

To contact the reporter on this story: Ann Koh in Singapore at akoh15@bloomberg.net

June 29 (Bloomberg) — Japan’s industrial output rose at a pace that matched the steepest increase in 56 years as companies rebuilt inventories and the economy started to climb out of its deepest postwar recession.

Production climbed 5.9 percent in May from a month earlier, the Trade Ministry said today in Tokyo, the same rate as the previous month, which was the biggest gain since 1953. Economists surveyed by Bloomberg predicted a 6.9 percent rise. Factories were still producing 29.5 percent less than last year.

The report adds to evidence the economy resumed growing in the three months ending tomorrow, following record contractions in the previous two quarters. Some $2.2 trillion in government stimulus worldwide propped up demand for Japanese exports and leaner stockpiles allowed manufacturers to raise output. Ream more »

June 26 (Bloomberg) — Consumer spending rose in May as benefits from the Obama administration’s stimulus plan spurred a jump in American incomes, a sign that efforts to revive the economy are starting to pay off.

The 0.3 percent increase in purchases was the first gain in three months, the Commerce Department said today in Washington. Earnings climbed 1.4 percent, the most in a year, driving the savings rate to a 15-year high. Another report showed consumer sentiment rose in June to the highest level since February 2008.

Government efforts to restore the flow of credit and prop up incomes are making it possible for consumers to spend even as unemployment climbs to levels last seen in the early 1980s. At the same time, the wealth destruction caused by the housing slump may force households to keep rebuilding savings, indicating an economic recovery will be slow to develop. Ream more »

By Masaki Kondo and Toshiro Hasegawa

June 26 (Bloomberg) — Japanese stocks rose after prices for oil and metals jumped, raising the earnings outlook for resource-related companies.

Mitsubishi Corp., a Japanese trading company that gets more than half its sales from commodities, climbed 1.8 percent. Mitsui Mining & Smelting Co. jumped 2.1 percent. Nippon Electric Glass Co. gained 5.8 percent after increasing its earnings target. Bridgestone Corp., the world’s largest tiremaker, was set to jump after narrowing its loss estimate.

The Nikkei 225 Stock Average climbed 32.21, or 0.3 percent, to 9,828.29 as of 9:05 a.m. in Tokyo. The broader Topix index rose 6.43, or 0.7 percent, to 926.20.

“Uncertainty over the global economy has receded,” said Kazuhiro Takahashi, a general manager at Tokyo-based Daiwa Securities SMBC Co. “Business conditions aren’t as bad as some have feared and I’m expecting companies to lift their targets.” Ream more »

June 24 (Bloomberg) — The Federal Reserve refrained from increasing its $1.75 trillion bond-purchase program, said the pace of economic contraction is slowing and predicted inflation will remain “subdued for some time.”

“Substantial resource slack is likely to dampen cost pressures, and the Committee expects that inflation will remain subdued for some time,” the Federal Open Market Committee said in a statement after a two-day meeting in Washington where it also kept the benchmark interest rate between zero and 0.25 percent. The rate will stay at “exceptionally low levels” for an “extended period.”

Chairman Ben S. Bernanke is watching to see how quickly the economy can recover from the deepest recession in five decades: Orders for durable goods unexpectedly rose in May, a government report showed today, while unemployment continues to climb. The Fed also wants to quell concerns that the $1 trillion expansion in its balance sheet will fuel inflation, pushing bond yields higher and crippling any rebound in the economy. Ream more »

By Shani Raja

June 24 (Bloomberg) — Asian stocks rose, led by commodity producers, as higher oil and copper prices in New York boosted earnings prospects.

Rio Tinto Group, the world’s third-largest mining company, gained 2.5 percent in Sydney, while Inpex Corp., Japan’s largest oil explorer, climbed 2 percent in Tokyo. Showa Shell Sekiyu KK, a Japanese refiner and solar-equipment maker, surged 8.1 percent after saying it will build solar power plants in Saudi Arabia with state-owned Saudi Arabian Oil Co.

The MSCI Asia Pacific Index gained 0.3 percent to 99.95 as of 9:37 a.m. in Tokyo. The gauge retreated by the most since May 14 yesterday as a World Bank forecast for a deeper global recession triggered a sell-off in commodities. Stocks in the gauge traded at 22.83 times estimated earnings yesterday, the lowest level since May 26, according to Bloomberg data. Ream more »

By Shani Raja

June 23 (Bloomberg) — Asian stocks extended a slump in the U.S. and Europe, led by mining companies and automakers, on concern the global economic recovery will falter.

BHP Billiton Ltd., the biggest mining company globally, sank 3.8 percent in Sydney after the World Bank’s forecast of a deeper recession sparked a slump in commodity prices. Japan’s Mitsubishi Corp., a trading company that gets almost half its sales from resources, lost 5.5 percent. Honda Motor Co., which gets 45 percent of its sales from North America, sank 2.7 percent in Tokyo.

“The World Bank has ostensibly poured a big jug of ice- cold water over those looking for a bounce in economic growth globally,” said Tim Schroeders, who helps manage $1 billion at Pengana Capital Ltd. in Melbourne. “Given the muted growth outlook, the focus will now switch onto the appropriateness of valuations.” Ream more »

June 22 (Bloomberg) — Japanese manufacturers became less pessimistic this quarter and demand for services rose in April amid signs the country’s worst postwar recession is easing.

Sentiment was minus 13.2 points this quarter compared with minus 66 three months earlier, a joint survey by the Cabinet Office and Finance Ministry showed today. The tertiary index, a gauge of money spent on phone calls, power and transportation, climbed 2.2 percent from March, the Trade Ministry said.

The Nikkei 225 Stock Average has climbed 39 percent since dropping to a 26-year low on March 10, buoyed by speculation $2.2 trillion in stimulus spending by governments worldwide will rekindle overseas demand for Japanese products. Tax breaks and shopping incentives introduced by Prime Minister Taro Aso have helped lift consumer confidence to a 14-month high. Ream more »

Born : Newton, Massachusetts, in 1944.

Affiliations:

• Fidelity Investments, Inc.
• Fidelity Management & Research Company

Most Famous For: Peter Lynch managed the Fidelity Magellan Fund from 1977 to 1990, during which time the fund’s assets grew from $20 million to $14 billion. More importantly, Lynch reportedly beat the S&P 500 Index benchmark in 11 of those 13 years, achieving an annual average return of 29%.

He is also famous for several books including, “One Up On Wall Street” (1989) and “Beating The Street” (1993), which are widely considered to be mandatory reading for any investor. Ream more »

If you aspire to become a stock market investor, it pays to look at some of the most famous and successful investors of the past and present.

Here are a few of the best:

John Paulson

Paulson is the Chairman of hedge fund Paulson & Co and number 78 on the Forbes 400 list of wealthiest Americans. Paulson predicted the market falls of 2008 and his hedge fund returned 19% in the first nine months of that year, following producing one of the best performances in the industry during 2007 as well. By November 2008 Paulson & Co managed over $35 billion, making them one of the ten largest hedge funds managers.

Warren Buffett

CEO and Chairman of Berkshire Hathaway since 1970 and now nearing 80 years old, Warren Buffett , nicknamed the “Sage of Omaha” is regarded as the king of stock market investors. Buffett is the leading advocate of “value investing”. This involves buying shares that are undervalued when subjected to fundamental analysis. Buffett is quoted as saying “if a business does well, the stock generally follows.” Voted in 1999 the Investor of the Century, Buffett is 2nd on the Forbes 400 list Ream more »