11:18Fed Reserve cuts key interest rate by 0.5% from 3.5% to 3%
Based on the results of a two day meeting the US FOMC decided to reduce the key interest rate by 0.5%. The key interest rate was slashed by 1.25% to 3% in less than two weeks. Based on our estimates, the bold steps towards softening the credit policy have evidently confirmed that the stable development of the US economy is a priority task. The reaction on the key interest rate reduction has been a mixed response from investors. The volatility in the US stock markets sharply increased. However, according to our estimates the decision made by the Fed is likely to have a positive impact on the US economy and the stock market.
11:13Aeroflot released 9M 2007 results
Aeroflot posted an improvement of its key financials in 9M2007 amid the active growth if the Russian air transportation market and on the back of efficient opex controls. We believe that the released report would contribute to upbeat sentiments in the market, however, we note that the sharp price growth for aircraft fuel in 4Q 2007 might have negative implications for FY 2007 results of the company.
11:07The sale of the most expensive power retail company
The information released by the committee of RAO UES on the upcoming approval of the valuation of Mosenergosbyt, which exceeds the company's current market value by two times, is likely to be a price upside driver for its shares. Nevertheless, in our opinion, the asset is not likely to find a buyer given the declared value which is to determine the value of RAO's stake offered in an auction.
UES Common shares:
Price: $1,06 Preferred shares:
Price: $0,92
11:04Gazprom might enter in the charter capital of Kazan Orgsintez
Gazprom's entry in the charter capital of Kazan Orgsintez is positive for the company because presence of the gas monopoly among shareholders would ensure uninterrupted raw material supplies and increase output with the help of joint investment programs.
Kazanorgsintez Common shares:
Price: $0,10 Preferred shares:
Price: $0,11
11:02KuibyshevAzot sells 3.5% of its shares to IFC
The sale by KuibyshevAzot of its shares to International Finance Corporation (IFC) is positive for investors, since it underscores the company's reliability and fairly good development prospects. This move also strengthens the chemical producer's chances to launch a successful IPO.
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