Stock exchange M&A pace quickens as NYSE initiates talks
London: The London Stock Exchange (LSE) may be facing a critical week a s far as its future is concerned as the New York Stock Exchange (NYSE) made contact with it last week. The contact comes on the back of rival exchange Nadaq picking up 15 per cent of LSE last week.

In a statement filed with the US Securities and Exchange Commission, the American financial watchdog late on Friday, the NYSE said that it was in talks with rival exchanges about a merger, and that contact between the New York exchange and its London counterpart had been made in the past few days.

For NYSE the situation assumes a certain urgency since Nasdaq, the fully electronic exchange and its arch-rival, picked up 15 per cent of LSE last week, by way of a pre-emptive strike. Under takeover rules, Nasdaq would be allowed to buy a further 10 per cent of the LSE's shares this week and another 5 per cent the following week.

The NYSE and Nasdaq report their earnings on Wednesday and Thursday respectively and investors will be watching closely for updates on their intentions towards the LSE. The LSE is also urgently seeking a meeting with Nasdaq. In a statement last week, the London market said it was exploring options available to it, including "discussions with other major exchanges".

Other key players in any exchange consolidation are Euronext, the pan-European exchange, and Germany's Deutsche Börse. The NYSE's chief, John Thain, has said that he is monitoring both of the exchanges as well as the LSE. He has also identified the Chicago Mercantile Exchange and the Chicago Board Options Exchange as possible takeover targets. The NYSE has only just completed its merger with Archipelago, an electronic trading platform in the US.

Euronext is in talks with Deutsche Börse about a tie-up but has also made approaches to the LSE. Clara Furse, the LSE boss, is said to favour a deal with Euronext, which owns the Paris and Amsterdam bourses.
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Chinese economy in overheat mode as Q1 growth up at 10.2 per cent
Beijing: China's president, Hu Jintao expressed concerns yesterday over China's overly rapid growth after figures showed growth in the first quarter far exceeded expectations. Hu Jintao said the country's annual economic growth quickened to 10.2 per cent in the first three months of the year, well above previous growth estimates for 2006.

Government, as well as World Bank and private economists, had earlier offered predictions of 8.5-9 per cent for this year. Hu said the rapid growth could put pressure on the Chinese Govt. to let the yuan rise faster.

"We do not seek high-speed economic growth," he said during a meeting with Lien Chan, a former Taiwan opposition leader, in Beijing. "We are concerned about the pace of development and the quality and effect of our growth."

The unrelenting pace picks-up from the fourth quarter of 2005, when gross domestic product rose 9.9 per cent from a year earlier. China's economy has overshot official targets for the past few years.
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Crude oil price at $70 a barrel in Monday Asian trades
New York, USA: Crude futures touched $70 a barrel in Asian trading Monday, driven by concerns over declining gasoline stocks in the United States and Iran's nuclear standoff with the international community.

Light, sweet crude for May delivery rose to $70 a barrel in intra-day trading before slipping slightly to $69.95 a barrel, up 50 cents in electronic trading on the New York Mercantile Exchange, midmorning in Singapore.

The last time crude futures surpassed $70 a barrel was on Aug. 30 last year, when they traded at a record $70.85 a barrel, on Aug. 30 after Hurricane Katrina struck the U.S. Gulf coast.
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