The Wall Street stocks retreated on Thursday after an index of factory activity worsened unexpectedly, adding to concerns that the US economy is falling into a recession.

The major indices rose in early trade but energy companies later led a sell-off as crude oil prices declined from recent highs. Banking stocks also came under pressure on worries about earnings prospects.

An analyst upgrade of Cisco (NASDAQ:CSCO) and a higher subscriber forecast from Research In Motion initially boosted optimism in the technology sector but this rally also fell victim to waning confidence.

The S&P 500 closed down 1.3 per cent lower at 1,342.51 points, having climbed 0.6 per cent when the market opened. The Dow Jones Industrial Average gave up 1.2 per cent to 12,284.30 as General Motors (NYSE:GM)’ shares slumped 4.9 per cent amid the growing economic malaise. The Nasdaq Composite fell 1.2 per cent to 2,299.78. Read more

EU targets aluminium giant Alcan over possible rule breach. The EU’s competition watchdog said Friday that it believes the aluminium giant Alcan has broken European rules by linking its dominant smelting technology to headling equipment sold by a subsidiary.

The European Commission on Thursday sent a statement of objections to the company, headquartered in Canada, complaining that “its behaviour risks limiting innovation in the aluminium production sector and effecting competition on the 70-billion-euro worldwide market for aluminium.

The objection concerns Alcan contracts for the sale of its aluminium smelting technology which force purchasers to also buy handling euqipment from ECL, a subsidiary company.

The commission added that the practice was likely to have a “negative impact on aluminium prices.” Read more

The EU’s competition watchdog said Friday that it believes the aluminium giant Alcan has broken European rules by linking its dominant smelting technology to headling equipment sold by a subsidiary.
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The European Commission on Thursday sent a statement of objections to the company, headquartered in Canada, complaining that “its behaviour risks limiting innovation in the aluminium production sector and effecting competition on the 70-billion-euro worldwide market for aluminium.
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The objection concerns Alcan contracts for the sale of its aluminium smelting

Leading industries eventually roll over and make way for new leaders. That’s called sector rotation, and it helps investors identify emerging opportunities.

Historically, the best market leaders fall by an average 72% once they peak. It doesn’t pay to wait for them to rebound, either. Nearly half of former leaders never return to their earlier highs.

But after every purge, new leaders rise.

How’s The Market?, usually on Page B2, provides a close-to-the-pulse view of the stock market and includes IBD’s daily rankings on 197 industries.

An important tool, the Industry Sub-Group Rankings, tracks shifts among industries.

The table keeps tabs on the collective performance of stocks in various parts of the economy.
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That’s a copper-gold producer Philex Mining Corp. has earmarked about P1.5 billion in capital expenditure this year for current exploration activities and operations of its mine in Padcal in Tuba, Benguet.

Company chairman Walter Brown and vice-president for finance Renato Migriño said that P900 million of the total amount will be spent for the Padcal mine alone while about P625 million was allocated for drilling activities in Negros Occidental, Surigao, Zamboanga and in Madagascar.

“The capex will be funded through internal cash only,” said Migriño.

Migriño said the company was eyeing to produce at least nine million tons of copper concentrates this year or about 27,000 tons a day.

Brown meanwhile said he expects copper prices to remain “good” over the next two to three years, averaging between $6,000 and $8,000 per ton. Read more

DENVER (AP) – Newmont Mining says it swung to a fourth-quarter loss due to a large write-down.

The Denver-based mining company lost $289 million, or 63 cents per share, last quarter. That compares with a profit of $223 million, or 49 cents per share, a year earlier.

Revenue slid 1 percent to $1.41 billion from $1.42 billion.

Thomson Financial said analysts expected a profit of 37 cents per share, on average.

Results included a $1.1 billion non-cash impairment charge to write down the value of its exploration segment. That’s because Newmont Mining Corp. has not replaced enough of its reserves and accounting rules have changed.
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The mining and exploration company, which has recently announced the Conrad silver and Elsmore tin projects in the Inverell district, is hoping this will be one of many donations to the community.

Managing director Garry Lowder said he wanted to be able to help the community where he could.

“With the nature of mining and exploration, we may one day have to call on the services of the VRA, which is why we wanted to help them out,” Mr Lowder said.

“We are also hoping to keep in contact with the VRA so we can help them out where we can.”

Inverell Rescue Squad volunteer Des Clark said the money would go towards fitting out the new truck for the squad.

“We are pleased about the donation and we appreciate Malachite’s generosity,” Mr Clark said.