Obama Casts Jobs Bill As Recession Insurance

WASHINGTON - President Barack Obama on Thursday cast his jobs bill as insurance against a double-dip recession and urged Congress to pass the measure swiftly. "If we don't take action, we could end up having more significant problems than we have now," Obama said at a news conference. Obama said the European debt crisis posed a serious threat to the recovery. "The problems Europe is having today could have a very real effect on our economy at a time when it is already fragile," Obama said. "The proposals in this bill are not just random investments to create make-work jobs. They are steps we have to take if we want to build an economy that lasts," he said.

Copyright © 2011 MarketWatch, Inc.

TECH STOCKS: Apple, Cisco, RIM Headline Tech Gains

SAN FRANCISCO (MarketWatch) -- Technology stocks rose Wednesday, with gains coming from Apple Inc., Cisco Systems Inc., Hewlett-Packard Co. and Research In Motion.

Apple (AAPL) shares rose $4.28, or 1.1%, to $376.7, a day after the launch of its new iPhone 4S in the prior session failed to create a buzz and on news that Samsung was seeking to ban the product in France and Italy.

Cisco Systems Inc. (CSCO) gained 90 cents, or 5.8%, to $16.48 to lead the Dow Jones Industrial Average (DJI) higher.

AMD (AMD) rose 12 cents, or 2.5%, to $4.84, but remained on edge after Bernstein Research downgraded the stock to market perform.

Last month, the chip company cut its sales forecast citing "manufacturing issues" at GlobalFoundries, the company spun off from its manufacturing operations.

"It is now increasingly clear that even AMD has no visibility into the likely yield trajectory at GlobalFoundries, and potential upside is likely to be limited," Stacy Rasgon, an analyst at Bernstein Research, said in a note. "No short term catalysts exist now given management credibility is shot and we believe shares could trade lower."

The sector also got a lift from SanDisk Corp. (SNDK), which rose 5%, and Juniper Networks (JNPR) gained 7.8%.

H-P (HPQ) added more than 3%, but the beleaguered technology giant took a hit from a J.P. Morgan note resuming coverage with an underweight rating.

"History is not on H-P's side," analyst Mark Moskowitz said in a note. "We think the 'value status' of H-P's stock, given the historical low price-to-earnings multiple, is not an attractive one for investors."

Research In Motion (RIMM) soared more than 11% on yet more buyout talk, this time involving Vodafone. Vodafone (VOD) shares were mostly flat.

The Nasdaq Composite Index (RIXF) climbed more than 40 points to 2,445, while the Morgan Stanley High Tech 35 Index (MSH) and the Philadelphia Semiconductor Index (SOX) were each up more than 2.3%.

Copyright © 2011 Dow Jones Newswires

Sarkozy: No Shale Gas Until Technology Proven Clean

--Sarkozy confirms government cancelled permits for shale gas exploration

--GDF Suez CEO: banning shale gas forever would be a major mistake

--Oil industry group: France is the only country that bans fracking

(Adds comments from industry group, GDF Suez CEO.)

PARIS -(Dow Jones)- French President Nicolas Sarkozy Tuesday reiterated that his government won't authorize the drilling for shale gas until the technology is proven to be environmentally clean.

"There won't be shale gas extraction through hydraulic fracturing in this territory," and extraction "can't be done at any price," said the president.

Sarkozy, speaking in the Gard region in southern France, confirmed the government has cancelled three exploration permits on shale gas fields as the companies maintained their intention to drill the potential fields using a technology which is also known as "fracking", which involves pumping water, sand and chemicals into the ground to crack open the rock and force the oil or gas to the surface.

Shale gas deposits are pockets of gas trapped in pores of sedimentary rocks.

The government's decision represents a blow to efforts by the companies to exploit shale gas in France. A report issued in April following a government request said French shale oil and gas fields are potentially some of the most promising in Europe and banning exploration before the reserves are assessed could be detrimental to France's economy and labor market.

The French government banned fracking in May over concerns about the technique's impact on the environment, after activists staged nationwide demonstrations to protest the exploration and possible developments of the fields, fearing the chemicals used in the process could pollute groundwater supplies.

The French oil industry opposes the government decision to cancel the permits as the country badly needs to develop oil and gas. Banning shale gas forever would be a major mistake as several producers in the U.S. are drilling for shale gas preserving the environment, said Gerard Mestrallet, the Chief Executive of French power company GDF Suez (GSZ.FR), according to French newspaper Sud Ouest.

France is the only country that bans fracking, the oil industry group UFIP said in a Tuesday statement.

Copyright © 2011 Dow Jones Newswires

Vale Working On Pact To Grant 35% Of Simandou To Guinea-Co Source

RIO DE JANEIRO -(Dow Jones)- Brazilian miner Vale (VALE,VALE5.BR) is working on an accord with the Guinean government by which it will concede 35% of its Simandou iron ore project to the government in line with new mining laws introduced in the country, according to a manager at Vale.

Vale's expected accord with Guinea would be in the same mould as the agreement recently struck between rival Rio Tinto PLC (RT.LN)and the Guinean government on Rio Tinto's iron ore project in the same area, the manager told Dow Jones Newswires in an interview.

Last month Guinea's government announced adoption of a new mining code allowing it to increase its participation in projects run by commodities companies operating in the country to 35% from the previous 15%, to boost revenues from the country's rich iron ore and bauxite resources.

The government had already struck in April an accord with Rio Tinto to take a 35% stake of the iron ore project Rio Tinto is developing at another part of the rich Simandou deposit.

"Vale's working on an accord in Guinea in the same mould as Rio Tinto's," said the manager.

Vale said in late 2010 that developing the high-quality Simandou project--in which it is a majority partner in a joint venture with a local company--will allow it consolidate its leadership of the global seaborne market for high-grade iron ore. The company said it is spending $861 million in 2011 on developing its Simandou project, which is planned to start up in the second half of 2012 to produce two million metric tons a year, rising to 15 million tons in 2015 and full capacity of 50 million tons a year in 2020 of ore with a high iron content, comparable to the quality of its Carajas mine in Brazil.

The miner is also investing in rail infrastructure in Guinea to transport the ore.

Brazil's business newspaper Valor Economico reported Monday that Vale is also assessing another alternative to the government's taking 35% of Simandou, without saying where it got the information. This option would involve the government continuing with a 15% stake while Vale would agree to pay a special tax on profits made at the mine instead of ceding an additional 20% stakeholding in the project.

A Vale press officer at the miner's Rio de Janeiro headquarters said the company had no comment on the Valor report.

Copyright © 2011 Dow Jones Newswires

Europe, China woes fuel earnings worries

By Caroline Valetkevitch

NEW YORK (Reuters) - Investors are worried U.S. earnings growth may finally fall back to earth as turmoil in Europe and signs of a less robust Chinese economy hurt foreign support.

The euro zone's debt crisis and weakness in China have fueled investor concern that the global economy could tip back into recession, possibly dampening U.S. earnings growth at a time when the U.S. economy is still struggling to gain ground.

Overseas sales have helped U.S. companies beat earnings expectations in the last couple of years, with foreign sales totaling 30 percent on average for Standard & Poor's 500 companies.

"If the euro region is crumbling, that's going to have a tremendous negative impact" on companies like McDonald's , said Todd Schoenberger, managing director at LandColt Trading in Wilmington, Delaware.

"I'm not expecting a big earnings quarter," he said. "We've been getting the clues already."

The most recent company to trouble investors about the earnings outlook is Ingersoll Rand Plc , whose shares tumbled 12.1 percent to $28.09 on Friday after the industrial conglomerate cut its third-quarter and full-year earnings forecast to below market estimates.

Investor pessimism is already high.

The S&P 500 finished the quarter with its worst performance since 2008, and many strategists have slashed their forecasts for year-end.

The S&P 500 dropped 14.3 percent in the third quarter, losing about $1.7 trillion in market capitalization.

A disappointing third-quarter earnings period, which begins the second week of October, could only trigger more losses, analysts said. Stronger-than-expected earnings helped stocks claw back fro 12-year lows in 2009.

Next week, investors also will be bracing for data on the U.S. job market, among the weakest parts of the economy. The government's September employment report is due Friday, while U.S. manufacturing data from the Institute for Supply Management is due Monday. The ISM services-sector index is set for release on Wednesday.

CURRENCY CUSHION MAY BE THINNER

Companies reporting earnings have benefited for the last decade from weakness in the dollar, which helped overseas revenue figures.

With the euro down 7.4 percent this quarter, the biggest quarterly loss by percentage since mid-2010, companies could lose some of that currency cushion.

"I think you'll see a lot of companies blaming problems on Europe," said Justin Walters, co-founder of Bespoke Investment Group in Harrison, New York.

Walters said excluding companies that report no international sales, the average percentage of overseas revenue for the S&P 500 is 41 percent.

The euro-zone debt crisis has investors worried about a repeat of the 2008 financial crisis.

In China, which has been a major engine of growth for the global economy, data has shown some weakness. On Friday, figures showed the country's manufacturing shrank for the third month in a row and had the longest contractional streak since 2009.

Analysts have slowly been reducing earnings forecasts for the quarter.

Third-quarter earnings are expected to have risen 13.3 percent from a year ago, according to Thomson Reuters data. The forecast was for 17 percent growth on July 1.

"If there's a very drastic downturn in the European economic zone, that portion of U.S. earnings will be impacted," said Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland, which manages about $14.8 billion.

But she and other strategists are optimistic that the earnings period will not disappoint, and could even present a buying opportunity.

"U.S. multinationals don't necessarily derive all of their additional earnings (from Europe), and in China, data seems to be showing a slowdown but not in hard-landing territory," Trunow said.

Other strategists said the dramatic cost-cutting that U.S. companies started in the 2008 financial crisis will help to keep bottom-line earnings numbers relatively healthy.

"In our view, corporate America has learned to make money in this environment," said Hank Smith, chief investment officer at Haverford Trust Co. in Philadelphia.

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal)

PRESS RELEASE: Braskem Solidifies Its U.S. Polypropylene Leadership and Global Expansion Efforts

Braskem Solidifies Its U.S. Polypropylene Leadership and Global Expansion Efforts

The company completes its acquisition of The Dow Chemical Company Polypropylene Business; builds its global polypropylene capacity to four (4) million tons per year.

PR Newswire

SAO PAULO, Sept. 30, 2011

SAO PAULO, Sept. 30, 2011 /PRNewswire/ -- Braskem, the leading resin producer in the Americas, announced the completion of its acquisition of the Polypropylene Business from The Dow Chemical Company, an important milestone in the Company's global expansion. The transaction, announced on July 27, was approved by the European Commission and the Federal Trade Commission and the Antitrust Division of the Justice Department of the United States of America.

The assets involved in the deal include two manufacturing plants in the U.S. and two in Germany, with a total annual polypropylene production capacity of 1.05 million tons. The two US manufacturing plants located in Freeport, Texas and Seadrift, Texas will be fully integrated into Braskem America, Inc. The two German plants located in Wesseling and Schkopau will operate under Braskem Europe GmbH.

The deal will deliver approximately $140 million in synergies through a more diversified portfolio, leveraged fixed cost base and working capital, logistics and supply optimization.

This acquisition brings a strong team that, combined with a worldwide polypropylene production capacity of 4 million tons per year, positions Braskem to provide a broader portfolio of products and services to its customers.

"Braskem has a long term commitment to the polymers industry. We see enormous potential for growth and innovation in thermoplastics resins because of the endless uses in people's everyday lives," said Braskem's Executive Vice President of the International Business Unit, Luiz de Mendonca. "We are very excited to grow our partnership with our clients in North America and Europe."

Mark Nikolich, formerly VP of Commercial and Supply Chain for Braskem America, has been named CEO and General Manager of Braskem Europe GmbH. Mr. Nikolich brings to this role over twenty years of experience in polyolefins and chemicals.

Robert Nadin, formerly VP of Innovation and Technology for Braskem America, has been appointed VP of Commercial and Supply Chain for polypropylene in North America. Mr. Nadin has more than 25 years of industry experience in a variety of positions in research and development, business management, business development, and technology licensing.

ABOUT BRASKEM

Braskem is the largest manufacturer of thermoplastic resins in the Americas. With 35 industrial plants in Brazil, the United States and Germany, the company produces more than 16 million tons of thermoplastic resins and other petrochemical products annually.

Headquartered in Philadelphia, Braskem America, a wholly owned subsidiary of Braskem S.A., has five production facilities, including three in Texas, one in Pennsylvania and one in West Virginia, as well as its Technology and Innovation Center in Pittsburgh. Braskem Europe GmbH, a wholly owned subsidiary of Braskem S.A., operates two production facilities in Schkopau Germany and Wesseling Germany.

CONTACT: Kerry Butler +1-215-790-4371 kbutler@tierneyagency.com

SOURCE Braskem S.A.

Copyright © 2011 Dow Jones Newswires

Morgan Stanley Shares Plummet

Reuters

Morgan Stanley shares fell as much as 7.8 percent Friday because of concerns about its exposure to European banks.

Shares of the second-largest U.S. investment bank were down 6.7 percent at $14.08, having earlier fell 7.8 percent to an intraday low of $13.91.

Comparable financial stocks were also down. Goldman Sachs Group Inc fell 2.6 percent to $30.58 and the NYSE Arca Securities Broker/Dealer Index, which includes Morgan Stanley, was down 3.4 percent.

Morgan Stanley shares hit their lowest level since December 2008 last week after finance blog Zero Hedge reported the bank was at risk because of its exposure to French banks.

Morgan Stanley has zero net exposure to France, including French sovereign debt and French banks, a source familiar with the matter said Friday.

Nonetheless, investors appeared to be reacting to fear signals in the credit markets related to Morgan Stanley.

The cost of insuring the bank's five-year bonds against default has spiked in recent days, and is almost three times what it was on June 30.

Its credit default swaps were more expensive than some European lenders such as Societe Generale, which outlined a plan to sell assets to raise capital last month, and Bank of America Corp , which has been plagued by investor concerns about its legal risk and capital adequacy, said Markit analyst Oatis Casey.

``Morgan Stanley CDS are among the widest of its U.S. peers in CDS trading and significantly wider than French banks,'' said Casey. ``In part, it's hurt by perception because the markets are jittery.''

A higher swap price indicates that the market perceives a higher risk.

Credit default swaps are very thinly traded compared to equities, but many stock investors still view the product as an important measure of risk because they portended problems leading up to the financial crisis.

``Investors are still worried about Morgan Stanley's exposure to Europe and that's going to weigh on the stock,'' said Derek Pilecki, founder of Tampa, Florida-based Gator Capital Management, which operates long-short equity strategies in financial stocks. ``I think this will pass, but it may take some time.''

Morgan Stanley is likely to offer detailed information about its European exposure when it reports third-quarter results next month, analysts said. Wall Street has cut its earnings expectations for large U.S. banks sharply in recent weeks, due to declining asset values, low interest rates and a weak business environment.

Analysts now expect Morgan Stanley to report third-quarter earnings per share of 36 cents, on average, according to Thomson Reuters I/B/E/S, down from 47 cents a month ago. (Reporting by Lauren Tara LaCapra. Editing by Robert MacMillan)