by Raymond Chatlani
On Monday, Asian stockmarkets rose as China did not raise interest rates as expected. Analysts believe that the next interest rate raise will commence in 2011. European stocks rose as upbeat U.S. and Chinese data boosted investors' risk appetite, and on hopes that Beijing may not raise interest rates anytime soon. Us stocks started off on a positive note after China refrained from raising its benchmark interest rate but gave up gains in the last hour with the indices ending mixed.
On Tuesday, Asian markets rose supported by optimism that China would shun aggressive measures to curb inflation that could inhibit its strong economic growth or blunt its voracious demand for raw materials. European indices rose on good US retail sales. US stocks rose after the Commerce Department reported that retail sales rose for the fifth straight month in November.
On Wednesday, Asian stocks fell on the Federal Reserve's decision not to increase its quantitive easing program on Tuesday which strengthened the US Dollar and drove riskier assets such as miners and oil to fall back. Sentiment in Asia was further dampaned by the Bank of Japan's Tankan survey for December showing that confidence among big manufacturers fell for the first time in seven quarters. Spanish shares led Europe lower on debt fears as Moody's warned that it may downgrade Spain's debt. US markets fell due to inflationary concerns reflected in the bond market as yields keep rising.
On Thursday, Asian markets fell except for Australia and India on low volume. This is a sign that investors are cutting back on exposure to equities in the region for the rest of the year. European stockmarkets closed flat and mixed although Spanish bond yields were forced higher during an auction of sovereign debt. US stocks rose as it was reported that jobless claims fell slightly and housing starts rose in November. Also, European leaders agreed to change the EU treaty to create a permanent financial safety net which further boosted sentiment.
This morning Asian markets rose after two days of declines although on declining volumes. European stocks fell modestly on another Irish debt downgrade. US stockmarkets fell although the U.S. Congress passed an $858 billion bill extending for two years all Bush-era tax cuts.
Sentiment has been bullish this week on strong economic data in the USA as it was reported that jobless claims fell slightly and housing starts rose in November and on some positive policy announcements in the United States in the past weeks especially the plan announced by the U.S. administration this month to extend all Bush-era tax cuts for two years. December's reduced trading volumes and holidays typically cause whippy price action and make big bets difficult to hold for long, so we may see volatility over the last two weeks of this year.
Emereging markets and commodities have hardly moved this week probably due to low volumes. Let's hope that we have a January rally based on the improving economic news that we have been seeing this month.
Monday, December 20, 2010
Thursday, December 16, 2010
Weekly Market Review
by Raymond Chatlani
On Monday, Asian stocks rose amid investor hopes for more Federal Reserve action to boost the U.S. economy, although the Nikkei fell modestly due to pressure on Japanese shares from a stronger yen. European stockmarkets closed mixed with banks falling and oil shares rising. US markets fell modestly with investors taking profits and looking for further action from European officials to prevent a debt crisis from spreading. Gold temporarily hit a record high of $1,429.40 an ounce with silver reaching a thirty year high.
On Tuesday, Asian stockmarkets all rose except for Japan due to a strengthening Yen and India. European and US stocks rose due to the agreement by President Obama and Republicans to extend the Bush-era tax cuts for two years, along with an extension of unemployment benefits and a 2% cut in payroll taxes.
On Wednesday, Asian markets mostly fell amid expectations of Chinese interest rate hikes. European stockmarkets closed mixed. US stocks rose as much of the focus remained on President Obama's decision to help middle class Americans with the two-year tax cut extension.
On Thursday, Asian equities were higher across much of the region with Sydney hitting a four-week high on strong employment data while a weaker yen overnight continued to boost Japanese shares. European markets rose boosted by technology and bank shares. US Stocks closed mixed as traders waited to see whether a tax compromise brokered by the White House and Republicans would pass the Democratic-controlled House.
This morning, Asian indices were mostly down on profit taking. European stocks rose modestly on easing sovereign concerns. US markets are modestly down at the time of writing.
This week European and US markets rose as debt concerns eased and on improving US economic data. Commodities and emerging markets lost some ground this week on fears that China will raise interest rates this weekend.
Perhaps the most important event this week is that bond yields are appreciating which is decimating the price of bonds. As investors flee, where will this money go? Cash has almost no return, so stocks could benefit over the next few months. Also, volatility has been tame this week compared to the last few months. This is generally a good sign for markets to appreciate.
On Monday, Asian stocks rose amid investor hopes for more Federal Reserve action to boost the U.S. economy, although the Nikkei fell modestly due to pressure on Japanese shares from a stronger yen. European stockmarkets closed mixed with banks falling and oil shares rising. US markets fell modestly with investors taking profits and looking for further action from European officials to prevent a debt crisis from spreading. Gold temporarily hit a record high of $1,429.40 an ounce with silver reaching a thirty year high.
On Tuesday, Asian stockmarkets all rose except for Japan due to a strengthening Yen and India. European and US stocks rose due to the agreement by President Obama and Republicans to extend the Bush-era tax cuts for two years, along with an extension of unemployment benefits and a 2% cut in payroll taxes.
On Wednesday, Asian markets mostly fell amid expectations of Chinese interest rate hikes. European stockmarkets closed mixed. US stocks rose as much of the focus remained on President Obama's decision to help middle class Americans with the two-year tax cut extension.
On Thursday, Asian equities were higher across much of the region with Sydney hitting a four-week high on strong employment data while a weaker yen overnight continued to boost Japanese shares. European markets rose boosted by technology and bank shares. US Stocks closed mixed as traders waited to see whether a tax compromise brokered by the White House and Republicans would pass the Democratic-controlled House.
This morning, Asian indices were mostly down on profit taking. European stocks rose modestly on easing sovereign concerns. US markets are modestly down at the time of writing.
This week European and US markets rose as debt concerns eased and on improving US economic data. Commodities and emerging markets lost some ground this week on fears that China will raise interest rates this weekend.
Perhaps the most important event this week is that bond yields are appreciating which is decimating the price of bonds. As investors flee, where will this money go? Cash has almost no return, so stocks could benefit over the next few months. Also, volatility has been tame this week compared to the last few months. This is generally a good sign for markets to appreciate.
Wednesday, December 15, 2010
The versatile portfolio manager
A myth often observed by investors is that in order to spread your risk into more sophisticated investments and alternative strategies requires substantial capital. The reality is that you can gain exposure to hedge funds, managed futures and structured notes etc at very low entry levels so long as you have a portfolio manager who is able to pool investors' capital.
A diversified portfolio
Having your capital protected is very popular, especially to the new investor. Some High Street Banks offer these as retail products and clients can participate in this 'plain vanilla approach'. But what if the investor wants to invest in gold or oil or the Brazilian stockmarket as opposed to the traditional standard FTSE or Eurostoxx offerings ? Can his advisor do this for him and protect his capital also ? Typically the response is negative as minimum levels for such structures are often in the region of €1 million. If on the other hand, your advisor or portfolio manager can gain access to international banks then the door is opened to a world full of choice. Whereas the minimum trade may be €1 million, the manager can pool individual trades, often from as little as €10,000 then place the one aggregate trade of €1 million.
The same principle applies to many hedge funds or alternative investments. Often perceived only for the rich and famous, investors can now trade from low levels if their manager has a good relationship with the fund managers. Having a sizable asset base allows the manager to bring in new investors who piggy back onto the fund without having to commit large amounts.
Exchange Traded Funds
If you do elect to invest internationally, a mistake often made by investors is to only consider investment funds from recognised banks and financial institutions. There is however a much cheaper, easily accessible way of investing into almost any global stockmarket, commodity or currency in the world. Exchange Traded Funds (ETFs) and IShares are used by many portfolio managers to allow them to trade intra day without surrender penalties or lock in periods like many investment funds. Imagine therefore the following hypothetical portfolio :
| Commodities | Equity Indices | Alternatives |
| Gold Bullion ETF | IShares Brazil | FTSE100 Autocall 11% |
| Short Silver ETF | IShares Eastern Europe | Blue Chip Income Note 8.1% |
| Leveraged Crude Oil ETF | IShares Australia | 3 Year Phoenix Note 18% |
| Grains ETF | ||
| Global Nuclear Energy ETF |
The above contains a truly global exposure to commodities, equities and income notes, the latter being in the form of structured income notes that pay a fixed income with inbuilt capital protection. To the average investor, the use of ETFs and IShares will be unheard of but they are a fabulous way of investing cheaply and effectively into almost any market you choose. You avoid initial fees that you incur with fund managers and they also carry a much lower annual management fee.
A portfolio manager's job is not only about performance but controlling costs also. If he can give the investor a truly international portfolio that includes alternative investments, capital protection and the use of low cost trading tools then the investor is really getting a portfolio that may be perceived to require a very high capital investment. In reality the manager could offer his services and give a diversified approach for in the region of €50,000 upwards - therefore appealing to a lot wider clientele and not just the super rich.
Mark Hollingsworth, Director, Hollingsworth International Financial Services Ltd
Tel: +357 99066840, +356 21316298
e-mail: info@hollingsworth-int.com
Website: www.hollingsworth.eu.com
Authorised by the Malta Financial Services Authority to provide investment services, license IS/32457
Monday, December 6, 2010
Weeket Market Summary
by Raymond Chatlani
EU finance ministers on Sunday endorsed a bailout package of 85 billion euro to help Dublin cover bad bank debts and bridge a huge budget deficit, and outlined a permanent system to resolve the euro zone debt crisis in which investors could share the cost of any future default.
On Monday, Asian mostly rose on the Irish bailout news. European and US stocks fell sharply as concerns about the European debt crisis took the edge off a strong weekend of holiday sales in the USA. US shares recovered late in the session and closed modestly down.
On Tuesday, Asian markets fell as Chinese shares slid on fears of an interest rate hike and the European Union's bailout of Ireland failed to convince investors the continent's debt crisis has been contained. European indices fell as the spread between Spanish 10-year bond yields over those of Germany widened by 20 basis points to 297 basis points, while Italian 10-year spreads rose for a fourth day to 210 basis points. US stocks slid as continuing European debt woes and an 0.7% decline in the Standard & Poor's/Case-Shiller 20-city home price index offset a five month high in consumer confidence.
On Wednesday, gold rocketed to just below $1,400 an ounce with silver exceeding $28 an ounce. Asia markets rose broadly as sentiment was boosted by data showing China's factories revved up production in November with the official Chinese purchasing managers' index (PMI) rising to a seven-month high of 55.2. European indices rose calmed by indications that the European Central Bank could subtantianlly increase purchases of eurozone bonds and on stronger Chinese data. US stocks were sharply higher as upbeat U.S. and Chinese data lifted investor confidence about a global economic recovery. USA data showed an improvement in construction spending while manufacturing activity expanded for the 16th consecutive month.
On Thursday, Asian stock markets rose sharply after improved economic indicators powered big gains on Wall Street and worries eased about Europe's debt problems. European stocks rose on expectations that the ECB would signal action to fight a eurozone debt crisis. US stocks extended gains after data showed pending sales of existing homes unexpectedly surged in October.
This morning, Asian markets closed mixed on good US data and fears that China would raise interest rates. European and US indices were mixed as the US unemployment rate climbed to 9.8 percent in November from 9.6 percent, a seven-month high, as hiring slowed.
At the beginning of the week, markets continued to fall after last week's losses. In the past few days, markets and commodities recovered on improving US data, ECB intervention in the form of purchasing bonds and a statement that unlimited liquidity would be provided to Eurozone banks till the end of March 2011. Chinese data this week also reversed sentiment to a positive stance. Commodities, especially gold, silver and oil appreciated significantly.
It looks like the Korean and EU debt crisis are diminishing in investor's minds and they are focusing on improving US economic data.
EU finance ministers on Sunday endorsed a bailout package of 85 billion euro to help Dublin cover bad bank debts and bridge a huge budget deficit, and outlined a permanent system to resolve the euro zone debt crisis in which investors could share the cost of any future default.
On Monday, Asian mostly rose on the Irish bailout news. European and US stocks fell sharply as concerns about the European debt crisis took the edge off a strong weekend of holiday sales in the USA. US shares recovered late in the session and closed modestly down.
On Tuesday, Asian markets fell as Chinese shares slid on fears of an interest rate hike and the European Union's bailout of Ireland failed to convince investors the continent's debt crisis has been contained. European indices fell as the spread between Spanish 10-year bond yields over those of Germany widened by 20 basis points to 297 basis points, while Italian 10-year spreads rose for a fourth day to 210 basis points. US stocks slid as continuing European debt woes and an 0.7% decline in the Standard & Poor's/Case-Shiller 20-city home price index offset a five month high in consumer confidence.
On Wednesday, gold rocketed to just below $1,400 an ounce with silver exceeding $28 an ounce. Asia markets rose broadly as sentiment was boosted by data showing China's factories revved up production in November with the official Chinese purchasing managers' index (PMI) rising to a seven-month high of 55.2. European indices rose calmed by indications that the European Central Bank could subtantianlly increase purchases of eurozone bonds and on stronger Chinese data. US stocks were sharply higher as upbeat U.S. and Chinese data lifted investor confidence about a global economic recovery. USA data showed an improvement in construction spending while manufacturing activity expanded for the 16th consecutive month.
On Thursday, Asian stock markets rose sharply after improved economic indicators powered big gains on Wall Street and worries eased about Europe's debt problems. European stocks rose on expectations that the ECB would signal action to fight a eurozone debt crisis. US stocks extended gains after data showed pending sales of existing homes unexpectedly surged in October.
This morning, Asian markets closed mixed on good US data and fears that China would raise interest rates. European and US indices were mixed as the US unemployment rate climbed to 9.8 percent in November from 9.6 percent, a seven-month high, as hiring slowed.
At the beginning of the week, markets continued to fall after last week's losses. In the past few days, markets and commodities recovered on improving US data, ECB intervention in the form of purchasing bonds and a statement that unlimited liquidity would be provided to Eurozone banks till the end of March 2011. Chinese data this week also reversed sentiment to a positive stance. Commodities, especially gold, silver and oil appreciated significantly.
It looks like the Korean and EU debt crisis are diminishing in investor's minds and they are focusing on improving US economic data.
Thursday, December 2, 2010
Hollingsworth Daily Post
- Qantas has begun legal action against the engine supplier Rolls-Royce following the explosion of an engine on one of the airline's Airbus A380s.It said the legal action was back-up in case a settlement could not be reached.Earlier, Australian air safety authorities said they had identified a serious manufacturing fault with some of Rolls-Royce's Trent 900 engines.Rolls-Royce said the Australian findings were "consistent with what we have said before".Qantas has resumed flying some of its A380 planes after grounding the fleet for safety checks following the incident on 4 November.
- The euro has risen in value after the European Central Bank (ECB) confirmed it would continue to purchase European government bonds.The confirmation was given by ECB president Jean-Claude Trichet, although he declined to give any further details.He also confirmed that the ECB would continue its support of struggling banks within the eurozone.The euro was up to $1.3145 from its earlier low of $1.3059.The main share indexes were also higher, with Germany's Dax adding 0.4%, France's Cac up 0.5%, and the UK's FTSE 100 advancing 1.3%.
- Soft drinks maker PepsiCo has said it is buying a 66% stake in Russian dairy and fruit juice maker Wimm-Bill-Dann for $3.8bn (£2.4bn).PepsiCo said it would also seek to buy the remaining shares in Wimm-Bill-Dann when the initial deal is completed.The deal is the biggest foreign investment in Russia outside the energy sector."Wimm-Bill-Dann is a terrific business with significant opportunities," said Zein Abdalla of PepsiCo Europe.
- Brazil's Congress has modified laws relating to the country's oil sector which could increase development of its offshore oil fields.The bill ensures that the state-run oil company Petrobras will have a 30% stake in any new joint exploration ventures in Brazil's offshore fields.Exploitation of the reserves could turn Brazil into a global energy exporter.President-elect Dilma Rousseff helped to draft the proposals while chief of staff in the current government.
- A presidential panel set up to help trim the US budget deficit has called for steep spending cuts and tax rises.The proposal would cut defence, social security and other spending, slashing a total of $4.1tn (£2.62tn) from the budget deficit by 2020.But analysts say the panel is unlikely to ratify the plan with a vote, calling into question whether the US Congress will act on its recommendations."The solution will be painful," the plan reads. "There is no easy way out."The US had a budget deficit of $1.3tn in the year to September, and critics have said the government should do more to narrow the gap
BBC Business News 2nd December 2010
Tuesday, November 30, 2010
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian stockmarkets closed mostly positive after Ireland yesterday applied for a bailout from the European Union and the International Monetary Fund to save its banks. This bailout is expected to be between 80 to 90 Billion Euros which is less than the Greek bailout earlier in May this year. European shares rose in the morning but fell into negative territory in the afternoon as investors waited to see the terms of Ireland's bailout. US indices closed mixed as a bailout for debt-soaked Ireland failed to allay fears of a wider euro zone crisis, prompting investors to seek safety in the U.S. dollar and Treasuries.
On Tuesday, Asian stockmarkets fell, following declines on Wall Street the previous day and after North Korean artillery fired dozens of shells onto a South Korean island near their disputed sea border, wounding several people, setting fire to buildings and prompting a return of fire by the South, Seoul's military and media reported. EU and US stocks, especially miners got hammered on Irish and Korean tensions.
Asian shares initially fell on Wednesday and the euro hovered near a two-month low to the dollar as regional stocks caught up with a sharp sell-off after North Korea's deadly shelling of a South Korean island and investors sought safety in the U.S. currency. However, Asian markets recovered at the close and were mostly in positive territory. European and US stocks gained on economic data as the US Government released a batch of reports on the economy. The government said first-time claims for unemployment fell 34,000 to 407,000 in the week ending Nov. 20 and that personal incomes rose 0.5 percent in October, slightly better than expected.
On Thursday, Asian markets were mostly higher in light trading as investors took heart from data showing an improving economic picture in the U.S. and signs that tensions had cooled at least temporarily on the Korean peninsula. European stocks rose in thin trade on last night's US data. US markets were closed for Thanksgiving.
This morning, Asian stockmarkets fell on worries about China tightening monetary policy to contain inflation, fresh artillery shots fired by North Korea on the disputed island amid warnings of war and fears that European contagion will spread to Portugal and Spain. Banks lead European markets down on the eurozone crisis with miners also losing ground on a strenghtening US dollar. US stocks fell on thin trade due to the long holiday Thanksgiving weekend.
A bad week for equities and commodities. Clearly, the Irish problem and fears that contagion will spread to Portugal and Spain, the uncertainty of when China will probably raise interest rates to control inflation and that North Korea has fired shells on a disputed South Korean island have all contributed to a strenghtening US Dollar against a weakening Euro this week and a flight to US treasuries. Also, trading has also been more volatile in the second half of this week due to US markets being closed on Thursday for the Thanksgiving holiday.
A bright spot this week was that first-time claims for unemployment fell significantly last week, incomes rose last month and consumer spending climbed for a fifth month in the USA. This raises hopes that shoppers will hit the malls in droves the day after Thanksgiving, the start of the holiday shopping season. These are fundamental signs that the US economy may be improving.
Will improving US data drive the markets forward or shall we continue to see this volatility due to the European debt crisis? Short term it is difficult to predict, but the USA is determined to devalue the US Dollar and we should see emerging markets and commodities eventually recover from this recent selloff.
On Monday, Asian stockmarkets closed mostly positive after Ireland yesterday applied for a bailout from the European Union and the International Monetary Fund to save its banks. This bailout is expected to be between 80 to 90 Billion Euros which is less than the Greek bailout earlier in May this year. European shares rose in the morning but fell into negative territory in the afternoon as investors waited to see the terms of Ireland's bailout. US indices closed mixed as a bailout for debt-soaked Ireland failed to allay fears of a wider euro zone crisis, prompting investors to seek safety in the U.S. dollar and Treasuries.
On Tuesday, Asian stockmarkets fell, following declines on Wall Street the previous day and after North Korean artillery fired dozens of shells onto a South Korean island near their disputed sea border, wounding several people, setting fire to buildings and prompting a return of fire by the South, Seoul's military and media reported. EU and US stocks, especially miners got hammered on Irish and Korean tensions.
Asian shares initially fell on Wednesday and the euro hovered near a two-month low to the dollar as regional stocks caught up with a sharp sell-off after North Korea's deadly shelling of a South Korean island and investors sought safety in the U.S. currency. However, Asian markets recovered at the close and were mostly in positive territory. European and US stocks gained on economic data as the US Government released a batch of reports on the economy. The government said first-time claims for unemployment fell 34,000 to 407,000 in the week ending Nov. 20 and that personal incomes rose 0.5 percent in October, slightly better than expected.
On Thursday, Asian markets were mostly higher in light trading as investors took heart from data showing an improving economic picture in the U.S. and signs that tensions had cooled at least temporarily on the Korean peninsula. European stocks rose in thin trade on last night's US data. US markets were closed for Thanksgiving.
This morning, Asian stockmarkets fell on worries about China tightening monetary policy to contain inflation, fresh artillery shots fired by North Korea on the disputed island amid warnings of war and fears that European contagion will spread to Portugal and Spain. Banks lead European markets down on the eurozone crisis with miners also losing ground on a strenghtening US dollar. US stocks fell on thin trade due to the long holiday Thanksgiving weekend.
A bad week for equities and commodities. Clearly, the Irish problem and fears that contagion will spread to Portugal and Spain, the uncertainty of when China will probably raise interest rates to control inflation and that North Korea has fired shells on a disputed South Korean island have all contributed to a strenghtening US Dollar against a weakening Euro this week and a flight to US treasuries. Also, trading has also been more volatile in the second half of this week due to US markets being closed on Thursday for the Thanksgiving holiday.
A bright spot this week was that first-time claims for unemployment fell significantly last week, incomes rose last month and consumer spending climbed for a fifth month in the USA. This raises hopes that shoppers will hit the malls in droves the day after Thanksgiving, the start of the holiday shopping season. These are fundamental signs that the US economy may be improving.
Will improving US data drive the markets forward or shall we continue to see this volatility due to the European debt crisis? Short term it is difficult to predict, but the USA is determined to devalue the US Dollar and we should see emerging markets and commodities eventually recover from this recent selloff.
Monday, November 22, 2010
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian markets closed mixed shrugging off stronger-than-expected growth in Japan amid fears China will take new steps to cool its economy. The Japanese government said the economy expanded an annualized 3.9 percent in the July-September quarter. European markets fell in the early morning but turned into positive territory in the afternoon on news that Ireland was in talks with its European neighbours over how to deal with its financial troubles and on positive eurozone trade data. US stocks closed mixed following a jump in October retail sales and on fears that Ireland may seek a bailout.
On Tuesday, Asian stockmarkets fell as an interest rate hike in South Korea added to speculation China will also tighten monetary policy to cool inflation. Also, persistent concerns about the euro zone debt crisis kept investors cautious. Major European indexes fell on Irish debt woes with fears that this could spread to Portugal. US stocks slid following new worries about rising inflation in Asia and the possibility Ireland might need a bailout.
On Wednesday, Asian stock markets retreated Wednesday, extending a global sell-off triggered by Europe's simmering debt crisis and expectations China will raise interest rates again to tame inflation. European markets rose on optimism that Ireland's crisis may be resolved. US stocks were flat although core inflation, which excludes food and energy costs, climbed 0.6% from October 2009, the smallest rise on record.
On Thursday, Asian indices rose on soft US inflation and news that China would introduce price controls on food rather than an interest rate hike to control inflation. European stockmarkets rocketed on expectations that Ireland would become the second euro zone country after Greece to receive a bailout to cope with high debts and deficits. US stocks surged on expectations that Ireland will get a giant loan to ease its debt crisis and as US weekly jobless claims data were better than expected.
This morning, Asian markets closed mixed on good US weekly jobless claims data, fears of EU debt problems and news that the Chinese Government told banks they must hold more reserves. EU stocks fell on continued uncertainty as to the Irish debt problem as EU sources said that a financial aid plan to help Ireland cope with its battered banks will be unveiled next week. Wall street fell on China's raising of Bank's reserve ratios and worries that a financial rescue package for Ireland is proving more difficult to agree than expected.
This week markets and commodities fell on the Irish banks debt problems and Chinese inflation problems.
With the Irish problem still unresolved, investors have taken profit after two good months in the markets largely on fears that contaign will spread to Portugal and Spain. China ordered its banks to raise their reserve ratios to control inflation today. The move is aimed at cutting down on lending to avoid speculative bubbles and curb inflation. Inflation in China shot up to a more than two-year high last month. There is also growing expectation China will raise key interest rates soon as part of the inflation fight.
These events have given investors an excuse to take profits. The Irish problem should be resolved next week. The Chinese Government's policies should also help the economy from overheating. Short term we may well see markets continue to go down but over the medium term, we should see the US Dollar continue to slide and emerging markets including commodities appreciate.
The main threat that still remains is if the Irish debt problem remains unresolved as contaign will spread throughout the EU and the Euro could be at risk.
On Monday, Asian markets closed mixed shrugging off stronger-than-expected growth in Japan amid fears China will take new steps to cool its economy. The Japanese government said the economy expanded an annualized 3.9 percent in the July-September quarter. European markets fell in the early morning but turned into positive territory in the afternoon on news that Ireland was in talks with its European neighbours over how to deal with its financial troubles and on positive eurozone trade data. US stocks closed mixed following a jump in October retail sales and on fears that Ireland may seek a bailout.
On Tuesday, Asian stockmarkets fell as an interest rate hike in South Korea added to speculation China will also tighten monetary policy to cool inflation. Also, persistent concerns about the euro zone debt crisis kept investors cautious. Major European indexes fell on Irish debt woes with fears that this could spread to Portugal. US stocks slid following new worries about rising inflation in Asia and the possibility Ireland might need a bailout.
On Wednesday, Asian stock markets retreated Wednesday, extending a global sell-off triggered by Europe's simmering debt crisis and expectations China will raise interest rates again to tame inflation. European markets rose on optimism that Ireland's crisis may be resolved. US stocks were flat although core inflation, which excludes food and energy costs, climbed 0.6% from October 2009, the smallest rise on record.
On Thursday, Asian indices rose on soft US inflation and news that China would introduce price controls on food rather than an interest rate hike to control inflation. European stockmarkets rocketed on expectations that Ireland would become the second euro zone country after Greece to receive a bailout to cope with high debts and deficits. US stocks surged on expectations that Ireland will get a giant loan to ease its debt crisis and as US weekly jobless claims data were better than expected.
This morning, Asian markets closed mixed on good US weekly jobless claims data, fears of EU debt problems and news that the Chinese Government told banks they must hold more reserves. EU stocks fell on continued uncertainty as to the Irish debt problem as EU sources said that a financial aid plan to help Ireland cope with its battered banks will be unveiled next week. Wall street fell on China's raising of Bank's reserve ratios and worries that a financial rescue package for Ireland is proving more difficult to agree than expected.
This week markets and commodities fell on the Irish banks debt problems and Chinese inflation problems.
With the Irish problem still unresolved, investors have taken profit after two good months in the markets largely on fears that contaign will spread to Portugal and Spain. China ordered its banks to raise their reserve ratios to control inflation today. The move is aimed at cutting down on lending to avoid speculative bubbles and curb inflation. Inflation in China shot up to a more than two-year high last month. There is also growing expectation China will raise key interest rates soon as part of the inflation fight.
These events have given investors an excuse to take profits. The Irish problem should be resolved next week. The Chinese Government's policies should also help the economy from overheating. Short term we may well see markets continue to go down but over the medium term, we should see the US Dollar continue to slide and emerging markets including commodities appreciate.
The main threat that still remains is if the Irish debt problem remains unresolved as contaign will spread throughout the EU and the Euro could be at risk.
Friday, November 19, 2010
Hollingsworth Daily Post
- The Irish government has insisted it will not raise the country's low corporation tax rate in return for a European Union-led bail-out.Deputy Prime Minister Mary Coughlan said the 12.5% rate - much lower than the EU average - was "non-negotiable".Her comments come as speculation grows that France and Germany want Dublin to raise the tax in return for aid.The Irish government is in bail-out talks with officials from the EU, the European Central Bank and the IMF.An aid package is expected to emerge next week, according to an unnamed source quoted by the Reuters news agency.
- US Federal Reserve chairman Ben Bernanke has criticised countries like China that run large trade surpluses."Currency undervaluation by surplus countries is inhibiting needed international adjustment," he said in a speech to the European Central Bank.He said that by buying dollars, these countries were hurting the US recovery and the global economy with it.He also defended the Fed's policy of "quantitative easing", which has been criticised by China and Germany.Defending QE.China, Germany and others have attacked the Federal Reserve in recent weeks for its decision to purchase another $600bn of US government debt in a bid to stimulate the US economy.They say that the policy will unfairly devalue the dollar in currency markets, and that this could lead to inflation and asset bubbles elsewhere in the world.
- China's central bank has raised the amount of money that lenders must keep in reserve, as it moves again to try to control the country's high inflation.The People's Bank of China said the reserve ratio would go up by a further 0.5 percentage points on 29 November.It is the fifth time this year that the central bank has made such a move, and the second announcement this month.It comes after Chinese inflation hit a two-year high of 4.4% last week on the back of the fast-growing economy.The central bank hopes that increasing the level of funds Chinese banks have to keep in reserve will help to dampen inflation, as it will limit the amount of money the banks can lend.
- China's exports to Japan of rare earths could resume next week, the Japanese trade minister has said.Shipments of the minerals, vital for making a number of hi-tech products, have been halted by Beijing for almost two months.This came after the Japan's navy arrested a Chinese fishing boat captain near disputed East China Sea islands.Japan's Trade Minister Akihiro Ohata said he hoped shipments would now return to normal.He added: "I think the Chinese understand that stalled exports of rare earths to Japan would in turn have a big impact on China's production of computers.
- Further details have been released of the difficulties faced by the pilots of the Qantas A380 superjumbo that saw one of its engines explode.Airbus, the plane's manufacturer, has said that flying debris from the Rolls-Royce engine severed cables in the aircraft's wing.A separate report by the AP new agency said the explosion caused a series of system failures in the plane.The pilots made a successful emergency landing in Singapore on 4 November.Airbus made its comments in its latest report to airlines.
Thursday, November 18, 2010
Hollingsworth Daily Post
- Irish Central Bank governor Patrick Honohan has said he expects the Irish Republic to accept a "very substantial loan" as part of an EU-backed bail-out. Mr Honohan told RTE radio he expected the loan to amount to "tens of billions" of euros.The final decision will be up to the Irish government, which has yet to comment.Mr Honohan's comments come as a team of international officials meet in Dublin for further talks on the debt crisis.Representatives from the International Monetary Fund, the European Central Bank and the EU will meet the Irish government, which has denied that it has asked for aid.
- Shares in General Motors (GM) have risen 7% on the first day of trading following the carmaker's record public share offering.Shares rose to $35.53 in the first few minutes of trade in New York, having been priced at $33 by the company.GM raised $20.1bn (£12.6bn) through its offering, making it the largest share sale in the US to date.President Obama called the sale a "major milestone" for both the company and the US car industry.
- The Greek government has unveiled an austerity budget that aims to cut its 2011 public deficit to 7.4% of the nation's annual economic output or GDP.If achieved, this would mean a 5bn-euro ($6.8bn; £4.3bn) reduction on Greece's projected 9.4% deficit for 2010.Under the budget plans, the government will cut health and defence spending, and increase the sales tax on most retail items from 11% to 14%.Greece had to accept a 110bn-euro ($150bn; £93bn) rescue deal in May.
- Brewer SABMiller has reported a 13% increase in half-year profits, as sales growth in emerging markets offset a decline in Europe and North America.The owner of beer brands as Grolsch and Peroni made a pre-tax profit of $1.7bn (£1bn) in the six months to 30 September, up from $1.5bn a year ago.Revenues at SAB, whose headquarters is in London, rose 7% to $14.2bn.Its sales volumes were down 5% in Europe, but increased by 11% in Africa and by 10% in Asia.Sales in the US and Canada were 5% lower.
- The Paris Club of creditor nations has cancelled $7.35bn (£4.6bn) of debt owed by the Democratic Republic of Congo.The deal was agreed following a meeting between representatives of Paris Club members and senior figures from the DR Congo government.In a statement, the Paris Club said the figure represented more than half of DR Congo's foreign debt.It added that the DR Congo government had pledged more work to reduce poverty.
- An industry taskforce has called on the government to act to protect the UK economy against a new threat of rising oil prices.A consortium of British business, including retailers Kingfisher and transport group, Stagecoach, say the UK must prepare for the next oil shock.It says not to do so would present energy security problems.A barrel of oil is currently around $80 a barrel, well below the last peak of $145 two-and-a-half years ago.
BBC Business News 18th November 2010
Monday, November 15, 2010
Weekly Market Summary
by Raymond Chatlani
Global stockmarkets and commodities rocketed higher last week after the Federal Reserve announced on Wednesday that it would use $600 Billion over the next eight months ($75 Billion a month) to purchase medium term treasuries to keep interest rates low for the forseeable future. It looks like emerging markets and commodities will continue to appreciate over the next 12 months as this liquidity will probably enter these areas as investors continue to seek higher returns.
On Monday, Asian stocks closed mostly up as traders welcomed better than expected jobs data out of the United States on friday while sentiment was still up after the Federal Reserve's huge stimulus plan announced last week. European markets closed modestly down on Sovereign debt concerns as fears that nations will have difficulty cutting deficits resurfaced, while commodities slid on a strenghtening US Dollar. US stocks were dented by a stronger dollar. Gold climbed to an all-time record high for a third running day, powered by worries over Ireland's debt.
On Tuesday, gold hit a new high of $1,421 an ounce while silver appreciated to over $28 an ounce on eurozone debt fears. Asian stockmarkets mostly fell on profit taking after large gains last week. European shares rose on corporate results and miners as commodities recovered. Wall street fell on a stronger US Dollar as traders pared positions and booked some profits. Commodities all fell with gold falling below $1,400 an ounce and silver below $28 an ounce.
On Wednesday, Asian markets closed mixed with China, Hong Kong, India and Australia falling while Japan, Indonesia and South Korea all rose. European stocks fell as investors -- betting that the country soon could join Greece in seeking a bailout from the European Union -- drove the interest rate on the country's 10-year borrowing to a new high. today. US markets fell inspite of an unexpected drop in first-time claims for unemployment benefits as normally an upbeat jobs report would be enough to send stocks higher. Instead investors are focusing on an upcoming meeting of world leaders and as Europe continues to grapple with government debt problems.
This week, markets and commodities gave up some gains as the US Dollar strenghtened. Investors are also scared that a new debt crisis is brewing in Europe, especially in Ireland. Also, this week's meeting of the G20 is not going well with Governments' disagreeing as to what action to take to aid the global economy. The G20 statement will be released at the end of their meeting this Friday.
Could this be the start of a bear market? If there is a serious credit crisis in Europe, then it could materalise, but It is very doubtful as the Greeks were in a worse position in spring. Also, the markets have run up too fast over the past two months and a period of consolidation is required.
Global stockmarkets and commodities rocketed higher last week after the Federal Reserve announced on Wednesday that it would use $600 Billion over the next eight months ($75 Billion a month) to purchase medium term treasuries to keep interest rates low for the forseeable future. It looks like emerging markets and commodities will continue to appreciate over the next 12 months as this liquidity will probably enter these areas as investors continue to seek higher returns.
On Monday, Asian stocks closed mostly up as traders welcomed better than expected jobs data out of the United States on friday while sentiment was still up after the Federal Reserve's huge stimulus plan announced last week. European markets closed modestly down on Sovereign debt concerns as fears that nations will have difficulty cutting deficits resurfaced, while commodities slid on a strenghtening US Dollar. US stocks were dented by a stronger dollar. Gold climbed to an all-time record high for a third running day, powered by worries over Ireland's debt.
On Tuesday, gold hit a new high of $1,421 an ounce while silver appreciated to over $28 an ounce on eurozone debt fears. Asian stockmarkets mostly fell on profit taking after large gains last week. European shares rose on corporate results and miners as commodities recovered. Wall street fell on a stronger US Dollar as traders pared positions and booked some profits. Commodities all fell with gold falling below $1,400 an ounce and silver below $28 an ounce.
On Wednesday, Asian markets closed mixed with China, Hong Kong, India and Australia falling while Japan, Indonesia and South Korea all rose. European stocks fell as investors -- betting that the country soon could join Greece in seeking a bailout from the European Union -- drove the interest rate on the country's 10-year borrowing to a new high. today. US markets fell inspite of an unexpected drop in first-time claims for unemployment benefits as normally an upbeat jobs report would be enough to send stocks higher. Instead investors are focusing on an upcoming meeting of world leaders and as Europe continues to grapple with government debt problems.
This week, markets and commodities gave up some gains as the US Dollar strenghtened. Investors are also scared that a new debt crisis is brewing in Europe, especially in Ireland. Also, this week's meeting of the G20 is not going well with Governments' disagreeing as to what action to take to aid the global economy. The G20 statement will be released at the end of their meeting this Friday.
Could this be the start of a bear market? If there is a serious credit crisis in Europe, then it could materalise, but It is very doubtful as the Greeks were in a worse position in spring. Also, the markets have run up too fast over the past two months and a period of consolidation is required.
Wednesday, November 10, 2010
Weekly Market Summary
by Raymond Chatlani
Global stockmarkets and commodities rocketed higher last week after the Federal Reserve announced on Wednesday that it would use $600 Billion over the next eight months ($75 Billion a month) to purchase medium term treasuries to keep interest rates low for the forseeable future. It looks like emerging markets and commodities will continue to appreciate over the next 12 months as this liquidity will probably enter these areas as investors continue to seek higher returns.
On Monday, Asian stocks closed mostly up as traders welcomed better than expected jobs data out of the United States on friday while sentiment was still up after the Federal Reserve's huge stimulus plan announced last week. European markets closed modestly down on Sovereign debt concerns as fears that nations will have difficulty cutting deficits resurfaced, while commodities slid on a strenghtening US Dollar. US stocks were dented by a stronger dollar. Gold climbed to an all-time record high for a third running day, powered by worries over Ireland's debt.
On Tuesday, gold hit a new high of $1,421 an ounce while silver appreciated to over $28 an ounce on eurozone debt fears. Asian stockmarkets mostly fell on profit taking after large gains last week. European shares rose on corporate results and miners as commodities recovered. Wall street fell on a stronger US Dollar as traders pared positions and booked some profits. Commodities all fell with gold falling below $1,400 an ounce and silver below $28 an ounce.
On Wednesday, Asian markets closed mixed with China, Hong Kong, India and Australia falling while Japan, Indonesia and South Korea all rose. European stocks fell as investors -- betting that the country soon could join Greece in seeking a bailout from the European Union -- drove the interest rate on the country's 10-year borrowing to a new high. today. US markets fell inspite of an unexpected drop in first-time claims for unemployment benefits as normally an upbeat jobs report would be enough to send stocks higher. Instead investors are focusing on an upcoming meeting of world leaders and as Europe continues to grapple with government debt problems.
This week, markets and commodities gave up some gains as the US Dollar strenghtened. Investors are also scared that a new debt crisis is brewing in Europe, especially in Ireland. Also, this week's meeting of the G20 is not going well with Governments' disagreeing as to what action to take to aid the global economy. The G20 statement will be released at the end of their meeting this Friday.
Could this be the start of a bear market? If there is a serious credit crisis in Europe, then it could materalise, but It is very doubtful as the Greeks were in a worse position in spring. Also, the markets have run up too fast over the past two months and a period of consolidation is required.
Global stockmarkets and commodities rocketed higher last week after the Federal Reserve announced on Wednesday that it would use $600 Billion over the next eight months ($75 Billion a month) to purchase medium term treasuries to keep interest rates low for the forseeable future. It looks like emerging markets and commodities will continue to appreciate over the next 12 months as this liquidity will probably enter these areas as investors continue to seek higher returns.
On Monday, Asian stocks closed mostly up as traders welcomed better than expected jobs data out of the United States on friday while sentiment was still up after the Federal Reserve's huge stimulus plan announced last week. European markets closed modestly down on Sovereign debt concerns as fears that nations will have difficulty cutting deficits resurfaced, while commodities slid on a strenghtening US Dollar. US stocks were dented by a stronger dollar. Gold climbed to an all-time record high for a third running day, powered by worries over Ireland's debt.
On Tuesday, gold hit a new high of $1,421 an ounce while silver appreciated to over $28 an ounce on eurozone debt fears. Asian stockmarkets mostly fell on profit taking after large gains last week. European shares rose on corporate results and miners as commodities recovered. Wall street fell on a stronger US Dollar as traders pared positions and booked some profits. Commodities all fell with gold falling below $1,400 an ounce and silver below $28 an ounce.
On Wednesday, Asian markets closed mixed with China, Hong Kong, India and Australia falling while Japan, Indonesia and South Korea all rose. European stocks fell as investors -- betting that the country soon could join Greece in seeking a bailout from the European Union -- drove the interest rate on the country's 10-year borrowing to a new high. today. US markets fell inspite of an unexpected drop in first-time claims for unemployment benefits as normally an upbeat jobs report would be enough to send stocks higher. Instead investors are focusing on an upcoming meeting of world leaders and as Europe continues to grapple with government debt problems.
This week, markets and commodities gave up some gains as the US Dollar strenghtened. Investors are also scared that a new debt crisis is brewing in Europe, especially in Ireland. Also, this week's meeting of the G20 is not going well with Governments' disagreeing as to what action to take to aid the global economy. The G20 statement will be released at the end of their meeting this Friday.
Could this be the start of a bear market? If there is a serious credit crisis in Europe, then it could materalise, but It is very doubtful as the Greeks were in a worse position in spring. Also, the markets have run up too fast over the past two months and a period of consolidation is required.
Wednesday, November 3, 2010
Hollingsworth Daily Post
- The Federal Reserve will announce later its plans to stimulate the US economy, with expectations high that they will feature the reintroduction of so-called quantitative easing (QE).Many analysts expect the Fed to start pumping around $500bn (£310bn) into the economy to boost the fragile recovery.The economy grew by an annual rate of 2% between July and September - not enough to reduce high unemployment.Some analysts see QE as the last chance to get the US economy back on track.Interest rates are already close to zero, which means the Fed cannot reduce rates any further in order to boost demand - the more traditional policy used by central banks to stimulate growth.Instead, it is likely to announce a fresh round of QE, in which it would pump hundreds of billions of dollars into the economy by creating money to buy government bonds.The programme has been dubbed QE2, after the Fed pumped $1.75tn into the economy during the downturn in its first round of QE.
- Lloyds Banking Group says its new chief executive will be Santander UK's current boss, Antonio Horta-Osorio.He will replace the current chief executive of Lloyds, Eric Daniels, who is retiring, on 1 March.Lloyds, which is 41%-owned by the UK government, is Europe's fourth-largest bank by market value.The Portuguese banker's replacement at Santander UK will be Ana Patricia Botin, according to BBC business editor Robert Peston.
Lloyds' share price rose more than 3% on the news, to nearly 70p, following the announcement by the UK bank, while in Madrid, Santander's shares fell 1.4% before recovering slightly.Ms Botin is the daughter of Santander's chairman, Emilio Botin. She has worked for the bank since 1988, having previously worked at investment bank JP Morgan in the US.
BBC Business News 3rd November 2010
Investor Protection
By Mark Hollingsworth in Money Magazine
There is no doubt that the internet has opened the floodgates for potential investment scams. So called boiler room cold calling is common place and unlicensed financial consultants recommend investment products that offer no protection of capital. Sadly, many individuals, often those that can not take financial risks are taken in by these practices with serious financial consequences.
Before making any investment decisions, certain steps should be taken to quantify the advice and recommendations being received. Certain questions should be asked and backed up in writing before parting with your life savings. A legitimate investment recommendation must be supported by facts and you must be aware of the complaints procedure in the event that things unfortunately go wrong. You must be fully armed and prepared for all eventualities. The following list is aimed at helping you make the right investment decisions and from the right source :
Licensed and regulated advisors : If a firm claims to be offering you investment advice but is not authorised to do so then this should be an obvious reason not to proceed. A list of license holders can be found on the MFSA's website, www.mfsa.com.mt. There are approximately 75 license holders whose services include banking, insurance and investments. The category of the license holder is also very important as this can determine amongst other things whether the firm can handle client's money or can act with a delegated authority.
Investor protection : Are you aware of your rights if the advice that you have received turns out to be inappropriate or deemed bad advice ? Can you make a claim against the firm and do they have adequate Professional indemnity insurance to settle any potential claims ? We are very fortunate to have a specialist complaints unit within the MFSA whose role is to handle any consumer complaints. The unit also provides an education platform to assist both existing and potential investors. During 2009, the unit received 324 written complaints, 90 of which related to investments. In addition there were 39 verbal complaints and 147 consumer queries relating to investments. The role of the MFSA as arbitrator cannot be underestimated with a freephone helpline and dedicated consumer website www.mymoneybox.mfsa.com.mt as examples of the regulators commitment to helping investors.
Bank Protection scheme : Bank account holders in Malta are protected in the event that their bank fails up to €100,000. The need to spread your cash deposits across more than one bank is therefore advisable if your cash wealth exceeds this limit. The collapse of certain Icelandic banks in 2008 is still very fresh and severe lessons have been learned by savers who have deposited their savings with banks who offer headline grabbing rates of interest.
Experience of the individual providing advice : How long as the advisor been in the industry and what are his industry qualifications ? He should be able to provide you with their professional qualifications and adequate experience cannot be ignored. Unfortunately, salesman often from the US or Asia regularly contact potential investors to buy into stocks with great enthusiasm. Such unsolicited actions often result in individuals entering into contracts that are worthless, buying more and more shares as the share price supposedly rockets. When attempting to recover your gains, the salesman has disappeared along with your savings. If you wish to speculate on the stockmarket then obtain professional advice and support and never act on the basis of a hot tip from a stranger.
In summary, you invest with the expectation of making a profit over time. By seeking professional advice from licensed institutions, you are taking the right first steps. If things go wrong then you have the peace of mind that Malta has a very strong regulatory framework which is committed to supporting aggrieved investors. All license holders are required to have Professional Indemnity Insurance to cover any claims and investors can be reassured that investing through a Maltese firm offers strong levels of protection.
Mark Hollingsworth, Director, Hollingsworth International Financial Services Ltd
Tel: +356 21316298
e-mail: info@hollingsworth-int.com
Website: www.hollingsworth.eu.com
Authorised by the Malta Financial Services Authority to provide investment services, license IS/32457
There is no doubt that the internet has opened the floodgates for potential investment scams. So called boiler room cold calling is common place and unlicensed financial consultants recommend investment products that offer no protection of capital. Sadly, many individuals, often those that can not take financial risks are taken in by these practices with serious financial consequences.
Before making any investment decisions, certain steps should be taken to quantify the advice and recommendations being received. Certain questions should be asked and backed up in writing before parting with your life savings. A legitimate investment recommendation must be supported by facts and you must be aware of the complaints procedure in the event that things unfortunately go wrong. You must be fully armed and prepared for all eventualities. The following list is aimed at helping you make the right investment decisions and from the right source :
Licensed and regulated advisors : If a firm claims to be offering you investment advice but is not authorised to do so then this should be an obvious reason not to proceed. A list of license holders can be found on the MFSA's website, www.mfsa.com.mt. There are approximately 75 license holders whose services include banking, insurance and investments. The category of the license holder is also very important as this can determine amongst other things whether the firm can handle client's money or can act with a delegated authority.
Investor protection : Are you aware of your rights if the advice that you have received turns out to be inappropriate or deemed bad advice ? Can you make a claim against the firm and do they have adequate Professional indemnity insurance to settle any potential claims ? We are very fortunate to have a specialist complaints unit within the MFSA whose role is to handle any consumer complaints. The unit also provides an education platform to assist both existing and potential investors. During 2009, the unit received 324 written complaints, 90 of which related to investments. In addition there were 39 verbal complaints and 147 consumer queries relating to investments. The role of the MFSA as arbitrator cannot be underestimated with a freephone helpline and dedicated consumer website www.mymoneybox.mfsa.com.mt as examples of the regulators commitment to helping investors.
Bank Protection scheme : Bank account holders in Malta are protected in the event that their bank fails up to €100,000. The need to spread your cash deposits across more than one bank is therefore advisable if your cash wealth exceeds this limit. The collapse of certain Icelandic banks in 2008 is still very fresh and severe lessons have been learned by savers who have deposited their savings with banks who offer headline grabbing rates of interest.
Experience of the individual providing advice : How long as the advisor been in the industry and what are his industry qualifications ? He should be able to provide you with their professional qualifications and adequate experience cannot be ignored. Unfortunately, salesman often from the US or Asia regularly contact potential investors to buy into stocks with great enthusiasm. Such unsolicited actions often result in individuals entering into contracts that are worthless, buying more and more shares as the share price supposedly rockets. When attempting to recover your gains, the salesman has disappeared along with your savings. If you wish to speculate on the stockmarket then obtain professional advice and support and never act on the basis of a hot tip from a stranger.
In summary, you invest with the expectation of making a profit over time. By seeking professional advice from licensed institutions, you are taking the right first steps. If things go wrong then you have the peace of mind that Malta has a very strong regulatory framework which is committed to supporting aggrieved investors. All license holders are required to have Professional Indemnity Insurance to cover any claims and investors can be reassured that investing through a Maltese firm offers strong levels of protection.
Mark Hollingsworth, Director, Hollingsworth International Financial Services Ltd
Tel: +356 21316298
e-mail: info@hollingsworth-int.com
Website: www.hollingsworth.eu.com
Authorised by the Malta Financial Services Authority to provide investment services, license IS/32457
Friday, October 29, 2010
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian stockmarkets rose as investors reacted positively to the G20 statement that they would avoid competitive devaluations between their nations. European markets especially commodity stocks rose as the US Dollar fell on the back of the G20 statement. US stocks rose modestly as US existing home sales soared 10% in September.
On Tuesday, Asian markets were mixed making only small gains or losses. European stocks fell as European corporate earnings mostly left investors disappointed ahead of more releases from the U.S. and Asia. Disappointing earnings and a slightly stronger US Dollar sent US stocks lower but these recovered at the close and closed slightly positive.
On Wednesday, Asian indices fell as investors pared positions and took some profits on quantitive easing uncertainty as they wait for the outcome of the Federal Open market Committee meeting next week on 2-3 November and as South Korea's GDP slowed sharply to 0.7% in the third quarter from 1.4% in the second quarter of 2010. European stocks fell on lower commodity prices as doubts grew over the size of the next economic stimulus. US markets fell as investors questioned whether the Federal Reserve's expected plan to buy Treasury bonds might be as big as anticipated.
On Thursday, Asian stocks mostly rose modestly ahead of earnings from the region's major companies and amid uncertainty over the size of the U.S. Federal Reserve's bond-buying program aimed at stimulating the economy. European markets rose on strong corporate earnings and a weaker US Dollar. US stocks closed flat as investors dug through a raft of earnings reports that painted a mixed picture about the economy.
This morning, Asian markets sank amid weak Japanese factory production figures as investors trimmed bets ahead of a U.S. economic reports on gross domestic product, consumer sentiment and manufacturing and likely Federal Reserve stimulus measures. Japan's industrial production fell for the fourth straight month in September, underscoring the country's fragile recovery as factory output tumbled 1.9 percent from the previous month as makers of cars and electronic devices cut production, much worse than a 0.6 percent fall forecast by analysts. European markets were modestly up on a weaker US Dollar. US stocks were flat on reports that GDP grew 2% in the third quarter which is considered too low to create employment.
For the second week in a row, markets and commodities have fluctuated without any sense of direction although corporate earnings in the US, UK and EU have exceeded earning expectations. Investors are largely ignoring fundamentals of improving economies to drive stocks higher. Rather, investors are waiting for the FEDS announcement after their meeting on 2-3 November 2010 as to how large their programme of quantitive easing will be. If the amount of quantitive easing will not be up to expectations then this rally will probably be over as traders will book profits.
On Monday, Asian stockmarkets rose as investors reacted positively to the G20 statement that they would avoid competitive devaluations between their nations. European markets especially commodity stocks rose as the US Dollar fell on the back of the G20 statement. US stocks rose modestly as US existing home sales soared 10% in September.
On Tuesday, Asian markets were mixed making only small gains or losses. European stocks fell as European corporate earnings mostly left investors disappointed ahead of more releases from the U.S. and Asia. Disappointing earnings and a slightly stronger US Dollar sent US stocks lower but these recovered at the close and closed slightly positive.
On Wednesday, Asian indices fell as investors pared positions and took some profits on quantitive easing uncertainty as they wait for the outcome of the Federal Open market Committee meeting next week on 2-3 November and as South Korea's GDP slowed sharply to 0.7% in the third quarter from 1.4% in the second quarter of 2010. European stocks fell on lower commodity prices as doubts grew over the size of the next economic stimulus. US markets fell as investors questioned whether the Federal Reserve's expected plan to buy Treasury bonds might be as big as anticipated.
On Thursday, Asian stocks mostly rose modestly ahead of earnings from the region's major companies and amid uncertainty over the size of the U.S. Federal Reserve's bond-buying program aimed at stimulating the economy. European markets rose on strong corporate earnings and a weaker US Dollar. US stocks closed flat as investors dug through a raft of earnings reports that painted a mixed picture about the economy.
This morning, Asian markets sank amid weak Japanese factory production figures as investors trimmed bets ahead of a U.S. economic reports on gross domestic product, consumer sentiment and manufacturing and likely Federal Reserve stimulus measures. Japan's industrial production fell for the fourth straight month in September, underscoring the country's fragile recovery as factory output tumbled 1.9 percent from the previous month as makers of cars and electronic devices cut production, much worse than a 0.6 percent fall forecast by analysts. European markets were modestly up on a weaker US Dollar. US stocks were flat on reports that GDP grew 2% in the third quarter which is considered too low to create employment.
For the second week in a row, markets and commodities have fluctuated without any sense of direction although corporate earnings in the US, UK and EU have exceeded earning expectations. Investors are largely ignoring fundamentals of improving economies to drive stocks higher. Rather, investors are waiting for the FEDS announcement after their meeting on 2-3 November 2010 as to how large their programme of quantitive easing will be. If the amount of quantitive easing will not be up to expectations then this rally will probably be over as traders will book profits.
Tuesday, October 26, 2010
Hollingsworth Daily Post
- The Swiss banking giant, UBS, has reported a net profit of 1.66bn Swiss francs ($1.65bn, £1.1bn) for the three months to the end of September.The number was boosted by a major one-off tax credit of 825m francs.It compares with a loss of 564m for the same three months last year.The bank - Switzerland's biggest - said it had suffered difficult market conditions, marked by low levels of client activity, and had also been hit by a rise in the franc.The Swiss currency has strengthened against both the dollar and the euro.UBS made a net profit of 2bn Swiss francs in the April-to-June quarter.
- The UK's economy grew at 0.8% between July and September, official figures show, suggesting the economy is recovering faster than expected.It follows 1.2% growth in the second quarter of the year, and is double the 0.4% expected by analysts.The gross domestic product (GDP) figures released by the Office for National Statistics (ONS) is only a first estimate, and may be revised.
- Bank of England Governor Mervyn King has attacked the 'absurd' level of risk taken on by banks in a speech.He called the banks' reliance on short-term debt to meet funding needs in 2008 an "accident waiting to happen".He said that, in future, banks must be forced to rely much more on equity to finance their risky activities.His comments raise the prospect that big UK banks will be required to hold significantly more equity than new international rules require.
- ArcelorMittal, the world's biggest steel company, has said profits jumped 48% in the three months to the end of September compared with the same period a year earlier.Third-quarter net profit was $1.35bn (£858bn), up from $910m a year earlier.Sales increased by 30% against a year ago, to $21.04bn.But compared with the second quarter this year, earnings were down and the company warned of higher raw materials prices and slowing demand.ArcelorMittal's chairman, Lakshmi Mittal, said the business had not matched expectations and that he was uncertain about the final three months of the year.
BBC Business News 27 October 2010
Monday, October 25, 2010
Hollingsworth Daily Post
- The Singapore stock exchange (SGX) has unveiled a multi-billion dollar bid for the company that owns the Australian Stock Exchange (ASX) in Sydney.If approved, the $8.3bn takeover would mark the first stock exchange merger in the Asia Pacific region.The deal would enhance Singapore as a major financial hub in the region and benefit Australian investors by giving them greater access to Asian markets.A merged exchange would hope to compete more effectively with Hong Kong.ASX shares soared more than 20% to A$43.49 ($43.17) after the announcement, while SGX shares fell back 4.35% to S$9.13 ($7.05).
- US Treasury Secretary Timothy Geithner has said he believes China is now "committed" to allowing the yuan to go up in value.Mr Geithner made the comment in a TV interview before he held talks with China's Vice-Premier, Wang Qishan.The US has long said China keeps the value of the yuan artificially low to make its exports more competitive, something Beijing denies.On Saturday, G20 finance ministers said they would refrain from such tactics.Finance ministers from the G20 leading economies have agreed reforms of the International Monetary Fund, giving major developing nations more of a say.At a meeting in South Korea, they agreed a shift of about 6% of the votes in the IMF towards some of the fast-growing developing countries.Those nations will also have more seats on the IMF's Board, while Western Europe will lose two seats.But the US will retain the veto it has over key decisions.Such decisions require an 85% vote - Washington holds 17% under the IMF's weighted voting system.The ministers also agreed to refrain from competitive devaluations of their currencies and move towards more market-determined currency systems.
- The French Senate has passed a controversial pension reform bill, which has caused a series of strikes and protests around France.The senators approved President Nicolas Sarkozy's plan to raise the retirement age from 60 to 62, and it could become law as early as next week.Mr Sarkozy says the measure is necessary to reduce the deficit.
- Indian tax authorities have given Vodafone 30 days to pay a 112bn rupee ($2.5bn, £1.6bn) tax bill, as part of an ongoing tax dispute.The formal demand relates to the mobile phone company's 2007 purchase of the Indian telephone assets of Hong Kong conglomerate Hutchison Whampoa.Vodafone will appeal against the tax at the Indian supreme court on Monday.The firm says the $11bn transaction was exempt from tax because it took place between two offshore entities.
- The Cuban government has outlined the taxes that will have to be paid by the country's growing number of self-employed workers.It is the latest stage of President Raul Castro's reforms to move Cuba away from a solely state-run economy.Self-employed workers will have to pay 10% income tax, while those who take on staff will pay more.It comes after the government announced last month that it was laying off half a million state workers.Cuba's new tax code is detailed in the latest edition of the country's Communist Party newspaper - Granma.
- Spanish airport operator Ferrovial has said it will sell a 10% stake in BAA, the operator of Heathrow airport.The partial sale would help the Spanish company establish a market value for its stake, said Ferrovial's chief executive, Inigo Meiras."Heathrow is one of the best infrastructure assets in the world," boasted Mr Meiras, who reaffirmed his company's long-term commitment to BAA.Proceeds will be used to fund other investments and to pay down debts.
BBC Business News 25 October 2010
Weekly Market Summary
By Raymond Chatlani
On Monday, Asian indices fell except for New Zealand which was flat as the US Dollar strenghtened, rising moderately from recent lows. European markets were up on financials as Citigroup reported a profit for the third quarter in a row as losses from failed loans declined. US stocks rose on earnings reports.
On Tuesday, Asian markets all rose except for New Zealand and South Korea. European indices fell on miners and tech, though banks were firm. US stocks tanked as shares in U.S. banks fell on renewed concern over mortgage foreclosure and on news that China increased interest rates for the first time in 3 years and on mixed earnings from corporate heavyweights which disappointed investors.
On Wednesday, Asian stocks and commodity markets fell except for South Korea and Taiwan as the US Dollar strengthened after the Chinese rate hike reflecting concern that higher rates will slow chinese growth. European indices were mixed on the UK announcement of the largest cuts in public spending since world war 2 in a 5 year austerity plan but closed mostly modestly positive before the close on US earnings reports. US markets rose following strong earnings reports from manufacturing and airline companies.
On Thursday, Asian equities closed mixed on reports that China's GDP slowed down to 9.6% in the third quarter of this year from 10.3% over the second quarter. European markets rose as corporate results exceeded expectations. US stocks climbed for a second day after the Labor Department said first-time claims for unemployment benefits fell last week and on upbeat earnings as Caterpillar Inc., Travelers Cos. and McDonald's Corp. all beat expectations and AT&T Inc. matched forecasts, but only closed modestly higher as the US Dollar rebounded.
This morning, Asian stock markets were mostly higher after a slew of better-than-expected U.S. earnings but gains were tempered as currency tensions overshadowed a summit of major economies (G20) who are meeting today and tomorrow in South Korea to discuss reforms to the global economy. European markets fell modestly as traders took some profit before the G20 summit that is to be held this weekend. US indices are mixed and fluctuating in a tight range as investors pour through another batch of earnings looking for clues as to the health of the US economy.
This week both stockmarkets and commodities traded within tight ranges as on the one hand company earnings are beating expectations and on the other hand tensions are simmering between nations as they may start a currency war.
We still believe that this rally will continue and we may have entered a period of consolidation before the next leg up.
On Monday, Asian indices fell except for New Zealand which was flat as the US Dollar strenghtened, rising moderately from recent lows. European markets were up on financials as Citigroup reported a profit for the third quarter in a row as losses from failed loans declined. US stocks rose on earnings reports.
On Tuesday, Asian markets all rose except for New Zealand and South Korea. European indices fell on miners and tech, though banks were firm. US stocks tanked as shares in U.S. banks fell on renewed concern over mortgage foreclosure and on news that China increased interest rates for the first time in 3 years and on mixed earnings from corporate heavyweights which disappointed investors.
On Wednesday, Asian stocks and commodity markets fell except for South Korea and Taiwan as the US Dollar strengthened after the Chinese rate hike reflecting concern that higher rates will slow chinese growth. European indices were mixed on the UK announcement of the largest cuts in public spending since world war 2 in a 5 year austerity plan but closed mostly modestly positive before the close on US earnings reports. US markets rose following strong earnings reports from manufacturing and airline companies.
On Thursday, Asian equities closed mixed on reports that China's GDP slowed down to 9.6% in the third quarter of this year from 10.3% over the second quarter. European markets rose as corporate results exceeded expectations. US stocks climbed for a second day after the Labor Department said first-time claims for unemployment benefits fell last week and on upbeat earnings as Caterpillar Inc., Travelers Cos. and McDonald's Corp. all beat expectations and AT&T Inc. matched forecasts, but only closed modestly higher as the US Dollar rebounded.
This morning, Asian stock markets were mostly higher after a slew of better-than-expected U.S. earnings but gains were tempered as currency tensions overshadowed a summit of major economies (G20) who are meeting today and tomorrow in South Korea to discuss reforms to the global economy. European markets fell modestly as traders took some profit before the G20 summit that is to be held this weekend. US indices are mixed and fluctuating in a tight range as investors pour through another batch of earnings looking for clues as to the health of the US economy.
This week both stockmarkets and commodities traded within tight ranges as on the one hand company earnings are beating expectations and on the other hand tensions are simmering between nations as they may start a currency war.
We still believe that this rally will continue and we may have entered a period of consolidation before the next leg up.
Friday, October 22, 2010
Hollingsworth Daily Post
- Finance ministers from the G20 leading economies are meeting in Gyeongju, South Korea, ahead of a summit by heads of state and government next month.Continuing tensions over exchange rates are likely to dominate proceedings.China is resisting pressure to allow the yuan to appreciate significantly, and many developing countries also fear a currency rise could hit exports.Low interest rates in wealthy countries have encouraged investors to seek better returns in emerging economies.
- Saskatchewan province, home to Potash Corporation, has asked the Canadian government to block mining giant BHP Billiton's hostile bid for the fertiliser group.The province's governor said the takeover was not in the interests of Saskatchewan or of Canada.Last month, Potash asked a US court to block the bid.The Anglo-Australian mining group offered $39bn (£25bn) for the firm in August.
- AIA, the Asian arm of US insurance giant AIG, has announced the price of a share offering that it hopes will raise about $18bn (£11.4bn).Shares will be priced at 19.68 Hong Kong dollars ($2.53; £1.61) when they begin trading next week.The money raised will be used to help AIG repay the US government, which bailed out the insurer during the financial crisis.AIG failed to sell AIA to UK insurer Prudential earlier this year.AIG is 80%-owned by the US government after it was bailed out for $182bn during the financial crisis.Last month, the company announced plans to begin repaying the US taxpayer.
- Quarterly profits at Chinese internet search engine Baidu have more than doubled as it benefits from Google's troubles in the country.Net profit between July and September came in at 1.1bn yuan ($158m; £100m) compared with 492m yuan a year earlier.Revenue for the quarter was 2.3bn yuan, slightly above analysts' expectations.Baidu now commands more than 70% of China's search engine market, a figure that has risen following Google's spat with the Chinese authorities.Earlier this year, Google threatened to pull out of China in a row over censorship.
- The online retailer, Amazon, has reported a 16% rise in third-quarter profit, as its Kindle e-book reader continues to bolster sales.Amazon made a net profit of $231m (£147m) in the three months to September, up from the $199m it made in the same period a year earlier.Revenues rose 39% to $7.56bn.But the firm also said that its total operating expenses rose more than 40% to $7.29bn, sending its shares down 5% in after-hours trading.
- UK broadcaster BSkyB added 96,000 new customers in the three months to 30 September, leaving it just shy of 10 million in total.Analysts had predicted an increase of only about 69,000 subscribers.Total revenues were £1.53bn ($2.41bn), a 15% rise on a year ago, as customers took up a broader range of services."We have made a very good start to the year with... a record take-up of our additional subscription products," said chief executive Jeremy Darroch.
BBC Business News 22 October 2010
Thursday, October 21, 2010
Hollingsworth Daily Post
- China says its economy has maintained robust growth in the third quarter of 2010, albeit at a slightly lower rate.Official figures show a drop from just over 10% growth to 9.6%, still far ahead of any other major economy.The Chinese government has been taking measures to cool a credit boom in order to achieve more sustainable growth levels.Meanwhile consumer prices rose at the fastest pace in nearly two years in September, official data showed.
- Toyota has announced a recall of more than 1.5 million cars worldwide over brake and fuel pump defects.The carmaker said the decision affected certain Avalon, Highlander and Lexus cars, including 740,000 cars in the US, 600,000 in Japan and 17,000 in the UK.It wants to ensure that fluid does not leak from the brake master cylinder, causing the warning light to turn on.The fault could cause the brake pedal to feel spongy, and braking performance to "gradually decline".
- Credit Suisse's profits fell 74% in the third quarter, thanks to choppy stock markets hitting its investment bank.The Swiss bank earned 609m Swiss francs ($630m, £400m) during the three months, down from 2.4bn francs a year ago.Investment banking revenues fell by 30%, mainly because of low client activity in the group's equity advisory and underwriting businesses.Stock markets took a battering over the summer because of fears over eurozone debt and a US double-dip recession.
- Chancellor George Osborne has defended the "fairness" of his UK spending cuts after Labour claims they were reckless and would hit the poorest hardest.He told the BBC that, including Budget measures, the top 10% of earners would be hit hardest but everyone was making a contribution to cutting the deficit.He said "the path to economic ruin" lay ahead if the deficit was not tackled.
- UK retail sales fell again September, the second month in succession they have declined, official data has shown.Sales last month were 0.2% lower than August, led by falls in clothing and car fuel sales, said the Office for National Statistics (ONS).The ONS also revised down August's decline, saying sales that month slipped by 0.7% compared with its original calculation of 0.5%.The data comes as a number of retailers have warned of weak trading conditions.
- Apple is cashing in on the popularity of its iPhone and iPad to boost demand for its oldest product, the Macintosh.The company announced that its popular app store for the iPhone and the iPad would soon be coming to its laptops.It also launched a revamped MacBook Air at an event at its headquarters.The computer is seen as a marriage of what Apple has learned from desktop computing and mobile devices. Like the iPad, the Air will have no hard drive and rely on flash memory.
BBC Business News 21 October 2010
Wednesday, October 20, 2010
Hollingsworth Daily Post
- Chancellor George Osborne is setting out details of the biggest programme of public spending cuts attempted by a UK government since the Second World War.Unveiling his Spending Review in the Commons, Mr Osborne is expected to cut the budgets of Whitehall departments by an average of 25% - or £83bn in total.He vowed "fairness" would underpin the cuts, telling MPs "those with the most should pay the most".He also insisted economic growth and reform were at the heart of his plans.He began his statement by saying: "Today is the day when Britain steps back from the brink, when we confront the bills from a decade of debt."
- Mining giant Rio Tinto has announced a $3.1bn (£2bn) expansion of its Australian iron ore operations in what it calls the "largest ever mining project" undertaken in the country.The move would increase production by almost 30%, from 220 million tonnes to 283 million tonnes, the company said.The announcement comes just two days after Rio and BHP Billiton dropped plans to combine their Australian iron ore operations.
- Euro MPs have backed a controversial draft law to extend maternity leave to 20 weeks on full pay and make that mandatory in the EU.UK business leaders and Conservative MEPs lobbied against the proposal. The European Commission earlier recommended an extension to 18 weeks.One assessment said the 20-week proposal could cost UK businesses an extra £2.5bn (2.8bn euros) a year. Minimum maternity leave in the EU is currently 14 weeks.Even though MEPs have approved the 20-week plan it cannot become law unless EU governments back it too, and the UK's coalition government is among those lobbying against it.
- The Bank of England's Monetary Policy Committee was split three ways during its October meeting, released minutes have revealed.Seven of its members voted for no change to interest rates and no additional stimulus spending, while one person wanted to see rates rise.The ninth member, Adam Posen, voted to see quantitative easing (QE) - the bank's main stimulus measure - restart.This is the means by which the Bank puts more money into the economy.The French government has used the security forces to lift blockades by strikers at three fuel depots serving the west of the country.President Nicolas Sarkozy has authorised police to break all remaining blockades at fuel depots.French workers are taking their rolling strike against planned pension reforms into its seventh day.Masked youths have been roaming the streets of the Paris suburb of Nanterre, skirmishing with police.In the centre of Paris, hundreds of students gathered outside the Senate, chanting, "Resistance".The Senate, the upper house of the French legislature, is due to vote on the proposed retirement age later this week.
- British Airways cabin crews are to be balloted on a new deal that could end their long-running industrial dispute.The new offer was reached in talks between BA chief executive Willie Walsh and Unite joint leader Tony Woodley.The union has been pressing for the restoration of travel concessions removed from members who went on strike earlier in the year.It has also been trying to reverse disciplinary sanctions imposed on union members during the dispute.
BBC Business News 20th October 2010
Monday, October 18, 2010
Hollingsworth Daily Post
by Raymond Chatlani
On Monday, Asian indices were all higher except for South Korea and Taiwan as investors plowed cash into stocks amid expectations the U.S. Federal Reserve will take action to prevent the American economy from slipping back into recession. European stocks followed Asia's momentum on hopes for US Feds action. US markets ended flat before the start of a busy earnings week.
On Tuesday, Asian markets fell except for China amid reports China had raised reserve requirements for banks to cool lending and as investors awaited earnings from U.S. companies. China told its top six banks to increase reserves in a new move to control lending as Beijing tries to cool inflation and housing prices without derailing its recovery from the global slump. European indices fell modestly on China's aim to curb lending. US stocks opened mixed but closed higher upon the release of the minutes from the FOMC's meeting on September 21. According to the minutes, members of the FOMC are prepared to provide additional accommodation, if needed, to support the economic recovery and to return inflation, over time, to levels consistent with the FOMC mandate. In other words, further quantitive easing.
On Wednesday, Asian stocks rose following an upbeat fourth-quarter forecast from computer chipmaker Intel last night and as Japan's machinery orders, a closely watched indicator of future business investment, rose 10.1% from the previous month which was far better than a 4.0 percent drop projected by economists, marking the third straight month of growth. European shares rocketed after the minutes of the FOMC suggested it was closer to introducing fresh stimulus measures to support the economy. US markets rose after solid earnings news and on hopes for further quantitative easing.
On Thursday, gold hit a new high of $1,379 an ounce with silver exceeding $24 an ounce. Asian stockmarkets rose except for India which was flat following better than expected earnings by US corporations. European markets were mostly lower except for Germany. US stocks edged lower after another disappointing report on jobs where weekly jobless claims rose by 462,000 , but losses were limited because traders expect the Federal Reserve will act soon to strengthen the economy.
This morning Asian indices were mostly lower as the US jobs market remains weak and on a strenghtening Japanese Yen with South Korea, Singapore and China rising; the latter rocketing 2.88%. European markets were mostly lower except for germany. US markets declined as consumer sentiment unexpectedly dipped in early October to its weakest level since July, with buying plans on the decline, a survey released Friday showed. The Nasdaq rose on Intel's and Google's strong earnings.
On Monday, Asian indices were all higher except for South Korea and Taiwan as investors plowed cash into stocks amid expectations the U.S. Federal Reserve will take action to prevent the American economy from slipping back into recession. European stocks followed Asia's momentum on hopes for US Feds action. US markets ended flat before the start of a busy earnings week.
On Tuesday, Asian markets fell except for China amid reports China had raised reserve requirements for banks to cool lending and as investors awaited earnings from U.S. companies. China told its top six banks to increase reserves in a new move to control lending as Beijing tries to cool inflation and housing prices without derailing its recovery from the global slump. European indices fell modestly on China's aim to curb lending. US stocks opened mixed but closed higher upon the release of the minutes from the FOMC's meeting on September 21. According to the minutes, members of the FOMC are prepared to provide additional accommodation, if needed, to support the economic recovery and to return inflation, over time, to levels consistent with the FOMC mandate. In other words, further quantitive easing.
On Wednesday, Asian stocks rose following an upbeat fourth-quarter forecast from computer chipmaker Intel last night and as Japan's machinery orders, a closely watched indicator of future business investment, rose 10.1% from the previous month which was far better than a 4.0 percent drop projected by economists, marking the third straight month of growth. European shares rocketed after the minutes of the FOMC suggested it was closer to introducing fresh stimulus measures to support the economy. US markets rose after solid earnings news and on hopes for further quantitative easing.
On Thursday, gold hit a new high of $1,379 an ounce with silver exceeding $24 an ounce. Asian stockmarkets rose except for India which was flat following better than expected earnings by US corporations. European markets were mostly lower except for Germany. US stocks edged lower after another disappointing report on jobs where weekly jobless claims rose by 462,000 , but losses were limited because traders expect the Federal Reserve will act soon to strengthen the economy.
This morning Asian indices were mostly lower as the US jobs market remains weak and on a strenghtening Japanese Yen with South Korea, Singapore and China rising; the latter rocketing 2.88%. European markets were mostly lower except for germany. US markets declined as consumer sentiment unexpectedly dipped in early October to its weakest level since July, with buying plans on the decline, a survey released Friday showed. The Nasdaq rose on Intel's and Google's strong earnings.
Thursday, October 14, 2010
Hollingsworth Daily Post
- The US trade deficit was wider than expected in August, figures have shown, in the wake of record imports from China.US Commerce Department figures showed the gap between imported and exported goods grew by 8.8% to $46.4bn (£29bn).Imports from China grew 6.1% in August to a record $35.3bn. The US trade deficit with China also set a new record of $28.0bn.US exports to China remained essentially unchanged at $7.3bn.
- The US dollar has reached another fresh 15-year low against the Japanese yen at the end of trading in Tokyo.The dollar was worth as little as 81.12 yen at one stage, just above the post World War II low of 79.75 yen.The dollar's continued fall reflects speculation that the US Federal Reserve will expand its quantitative easing programme.But Japan's central bankers have also repeatedly threatened further action to curb the recent rises in the yen. A strong yen is hurting Japanese export companies, which are relied upon to spearhead a recovery in Japan's struggling economy.
- Mining company Rio Tinto says it has produced record quantities of iron ore in the past quarter, thanks to a surge in demand from China.47.6 million tonnes of the ore in the three months to September.China is continuing to import huge amounts of the ore for steel production.Rio Tinto's Australia-listed shares rose to a two-year high in response to the news.In London, its shares were up more than 1.5% in the first hour of trading.
- South Korea's central bank has kept interest rates on hold at 2.25% following its latest policy meeting.The decision came as a surprise as most economists had expected an interest rate rise to 2.5%.The Bank of Korea (BoK) had left the rate at a record low 2% for 17 months in response to the economic downturn, before raising it to 2.25% in July.The bank said it was not the right time to be raising the cost of borrowing in what is Asia's fourth-largest economy.
- More than one quarter of loans to Chinese local government are at risk of default, according to a report.About two trillion yuan ($300bn; £187bn), or 26% of the 7.66tn in loans to local authority financing vehicles, is at risk says state media.The figures, published in the official China Securities Journal (CSJ), were slightly higher than prior estimates which put 23% of these loans at risk.In 2009, banks lent heavily to regional financing vehicles for construction.
- Stationery and books chain WH Smith has reported better-than-expected profits - helped by a strong performance at its stores in airports, train stations and motorway service stations.Pre-tax profits were £89m in the year to 31 August, up 9% from last year.The profits rise came despite a 4% fall in like-for-like sales.At WH Smith's 516 stores at travel locations, profits increased by 10% after the retailer improved profit margins.
- All 50 US states have started a joint investigation into whether mortgage firms were wrong to repossess hundreds of thousands of homes.It follows allegations that the companies often mishandled documents when people behind on their mortgages had their houses taken from them.According to industry figures, more than 2.5 million US homes have been repossessed since December 2007.
BBC Business News 14 November 2010
Wednesday, October 13, 2010
Hollingsworth Daily Post
- The gap between China's imports and exports narrowed in September, official data has shown.But analysts say the decline is unlikely to ease the pressure on Beijing to strengthen its currency.The US has been among its strongest critics, claiming China deliberately undervalues the yuan, boosting China's exports by making them cheap.
- JP Morgan has reported a 23% rise in profit in the third quarter, as the bank was able to set aside less money to cover loan losses.The company reported a net profit of $4.4bn (£2.8bn), compared with a profit of $3.6bn a year ago.The bank set aside $1.55bn for retail credit losses during the quarter, less than half the $3.99bn it set aside during the third quarter of 2009.
- Standard Chartered has announced plans to bolster its balance sheet, issuing £3.3bn of shares in the banking group.The move follows global rules agreed last month on how much capital banks should hold in reserve.The new regulations, called Basel III, were designed to prevent another financial crisis.Standard said it saw many opportunities for growth across Asia, Africa and the Middle East but that these would be limited unless more money was raised.
- The number of people unemployed in the UK fell by 20,000 to 2.45 million in the three months to August.This meant the overall UK unemployment rate fell to 7.7% from 7.8% the Office for National Statistics (ONS) said.However, the figures also showed the claimant count - those out of work and receiving unemployment benefit - rose by 5,300 in September to 1.47 million.
- Tom Hicks and George Gillett have failed in their High Court attempt to wrest back control of Liverpool.The unpopular American co-owners had tried to oust the boardroom rivals that had sanctioned the sale of the club to New England Sports Ventures (NESV).But Mr Justice Floyd ruled they did not have the power to do so.The decision means the sale to NESV can proceed, although club chairman Martin Broughton hinted rival bids may now be considered at a meeting on Wednesday."I am absolutely elated, it's a very important day for our club," said Broughton as he left the Royal Courts of Justice in London."This will clear the way for the sale, we will have a board meeting this evening and proceed with the sale.
- French strikers are disrupting services for a second day running, as they seek to build pressure on the government over its pension reform plans.Tuesday saw the biggest strikes and demonstrations so far in the campaign, and several unions say they will continue their stoppages indefinitely.Rail services are still restricted, causing congestion and delays.And strikers forced the closure of all six of the Total oil group's refineries in France, threatening fuel shortages.
- Lloyds Banking Group is to cut about 4,500 jobs in its IT operations.It said 1,600 would be roles held by permanent staff with a further 1,150 working on temporary contracts. The other 1,750 jobs are held overseas.The bank said the cuts, to happen by 2012, were part of its integration of IT operations between Lloyds and HBOS.
BBC Business News 13th October 2010
Tuesday, October 12, 2010
Hollingsworth Daily Post
- Iceland remains the country that has the greatest equality between men and women, according to an annual report by the World Economic Forum (WEF).It is the second year in succession that Iceland has topped the foundation's Global Gender Gap Report.Nordic nations dominate the top of the list of 134 countries, with Norway in second place and Finland third.The report measures equity in the areas of politics, education, employment and health.
- The case to decide the future ownership of Liverpool Football Club will be heard in the High Court on Tuesday.The Royal Bank of Scotland (RBS), the club's major creditors, have submitted an application to the court against co-owners Tom Hicks and George Gillett.Hicks and Gillett, who bought the Reds in March 2007, owe RBS £240m but are blocking the £300m sale of the club to New England Sports Ventures (NESV).The American duo have opposed the sale as they say it undervalues the club.The case is one of a number to be heard by Mr Justice Floyd at 1030 BST and revolves around whether chairman Martin Broughton has the authority to sell Liverpool to NESV against the wishes of Hicks and Gillett.
- US clothes retailer Gap has scrapped a new logo just one week after its introduction following an "outpouring of comments" online.The original logo, which has used been used for more than 20 years, has a blue box with "GAP" written in white inside.The new logo on the website had "Gap" written in black against a light background with a small blue square laid over the top of the letter "p".But critics attacked the rebranding on social networks and online forums.More than 2,000 comments were posted on the company's Facebook page on the issue, with many demanding the return of the traditional logo.
- French unions are staging a national day of strikes and demonstrations in opposition to the government's pension reforms - the third in a month.Hundreds of thousands of people are expected to march in cities across France, with transport workers, civil servants and teachers stopping work.Ministers want to raise the minimum retirement age from 60 to 62, and the state pension age from 65 to 67.Meanwhile, key workers are set to vote on whether to begin open-ended strikes.
- UK Consumer Prices Index (CPI) inflation remained unchanged in September at 3.1%, according to the Office for National Statistics (ONS).It means the rate has been above the Bank of England's 2% target for 10 months in a row.Inflation as measured by the Retail Prices Index (RPI) fell back from 4.7% in August to 4.6% in September.RPI - which factors in a greater chunk of the cost of housing - is important for wage negotiations.
- Growth in the UK economy is slowing, with the service sector particularly affected, two surveys have suggested.A report from the British Chambers of Commerce (BCC) said economic growth in the third quarter was "considerably" slower than the previous quarter.The BCC warned businesses faced serious challenges in the coming months.The British Retail Consortium (BRC) said retail sales growth slowed last month, with like-for-like sales up 0.5% from a year ago.
BBC Business News 12 October 2010
Monday, October 11, 2010
Weekly Market Summary
by Raymond Chatlani
On Monday, Asian markets all rose except for Japan although the Chinese stock exchange will be closed all this week for public holidays. EU and UK stocks fell as German new car sales tumbled 18% in September and fears that reports this afternoon may show slowing factory orders in the USA. US indices fell as factory orders fell 0.5% in August, slightly worse than expected. The U.S. dollar gained broadly on Monday on lingering concerns about euro-zone debt especially against the Euro.
On Tuesday, weak U.S. economic indicators sent most Asian markets lower with only Indonesia, Malaysia and Japan up. Japanese indices rose 1.5% as the Yen weakened on news that the Japanese Central Bank cut rates to virtually zero would use quantitive easing by allocating 35 trillion Yen to purchase a pool of equities and bonds and broaden its loan program. Gold hit a new record high of $1,331 an ounce. European stockmarkets rose strongly on Japan's surprise rate cut and proposed cash injection into the domestic economy. US shares rocketed on Japan's announcement of quantitive easing and reports that activity in the nation’s services sector expanded for a ninth straight month during September.
On Wednesday, gold hit a new high of $1,347 an ounce. Asian stockmarkets rallied Wednesday, buoyed by growing expectations that the Federal Reserve will take steps to bolster the U.S. economy following the Bank of Japan's surprise interest rate cut. European indices rose by following Asia's buoyant mood, but pared gains in the afternoon on US job market reports. US stocks closed mixed with the Dow Jones up and the Nasdaq down and S & P 500 flat after a disappointing report that private employers recruited less staff than expected renewed concern about the health of the economy.
On Thursday, gold hit a new record high of $1,3660 an ounce with silver hitting a new 30 year high of over $23 an ounce. Asian indices were modestly down except for Indonesia which fell over 1% as investors digested the yen's overnight climb to a new 15-year high against the dollar and a disappointing U.S. jobs report. European stocks rose on good US data except for the ETSE100 and Ireland as irish debt was downgraded. US shares initally rose on reports that applications for unemployment benefits fell last week for the fourth time in five weeks, a sign that layoffs are declining and that September sales results were better than expected, but closed flat as traders opted for caution ahead of Friday's employment report from the Labor Department, the most crucial piece of news on the economic calendar this week. Gold pulled back to S1,335 on profit taking.
Today, Asian indices were mostly lower except for China and Hong Kong as investors pared bets ahead of a key U.S. jobs report later in the day and the yen traded at a 15-year high against the dollar. Shares in China jumped as investors playing catch-up as financial markets reopened after the weeklong National Day holidays and after Moody’s Investors Service said it may raise the nation’s debt rating and retail sales surged during a five-day public holiday. European stocks were mostly down as traders pared back positions before the US jobs report later today. US stocks are flat although employers in America cut more jobs than forecast in September.
At the beginning of this week global stocks surged on Japan's surprise quantitive easing and on speculation that other Governments will take additional actions to reinvigorate the global economic recovery. On Thursday and Friday, global stocks were flat as investors seem divided as to whether the Feds will execute another round of quantitive easing due to poor employment in the American economy.
Important Further Update
Further to the summary below, on Friday US markets surged by the end of the session and the Dow Jones breached an important barrier by ending above 11,000. This is an excellent signal that this rally should continue.
This morning Asian stocks rose as investors plowed cash into stocks amid expectations the U.S. Federal Reserve will take action to prevent the American economy from slipping back into recession
On Monday, Asian markets all rose except for Japan although the Chinese stock exchange will be closed all this week for public holidays. EU and UK stocks fell as German new car sales tumbled 18% in September and fears that reports this afternoon may show slowing factory orders in the USA. US indices fell as factory orders fell 0.5% in August, slightly worse than expected. The U.S. dollar gained broadly on Monday on lingering concerns about euro-zone debt especially against the Euro.
On Tuesday, weak U.S. economic indicators sent most Asian markets lower with only Indonesia, Malaysia and Japan up. Japanese indices rose 1.5% as the Yen weakened on news that the Japanese Central Bank cut rates to virtually zero would use quantitive easing by allocating 35 trillion Yen to purchase a pool of equities and bonds and broaden its loan program. Gold hit a new record high of $1,331 an ounce. European stockmarkets rose strongly on Japan's surprise rate cut and proposed cash injection into the domestic economy. US shares rocketed on Japan's announcement of quantitive easing and reports that activity in the nation’s services sector expanded for a ninth straight month during September.
On Wednesday, gold hit a new high of $1,347 an ounce. Asian stockmarkets rallied Wednesday, buoyed by growing expectations that the Federal Reserve will take steps to bolster the U.S. economy following the Bank of Japan's surprise interest rate cut. European indices rose by following Asia's buoyant mood, but pared gains in the afternoon on US job market reports. US stocks closed mixed with the Dow Jones up and the Nasdaq down and S & P 500 flat after a disappointing report that private employers recruited less staff than expected renewed concern about the health of the economy.
On Thursday, gold hit a new record high of $1,3660 an ounce with silver hitting a new 30 year high of over $23 an ounce. Asian indices were modestly down except for Indonesia which fell over 1% as investors digested the yen's overnight climb to a new 15-year high against the dollar and a disappointing U.S. jobs report. European stocks rose on good US data except for the ETSE100 and Ireland as irish debt was downgraded. US shares initally rose on reports that applications for unemployment benefits fell last week for the fourth time in five weeks, a sign that layoffs are declining and that September sales results were better than expected, but closed flat as traders opted for caution ahead of Friday's employment report from the Labor Department, the most crucial piece of news on the economic calendar this week. Gold pulled back to S1,335 on profit taking.
Today, Asian indices were mostly lower except for China and Hong Kong as investors pared bets ahead of a key U.S. jobs report later in the day and the yen traded at a 15-year high against the dollar. Shares in China jumped as investors playing catch-up as financial markets reopened after the weeklong National Day holidays and after Moody’s Investors Service said it may raise the nation’s debt rating and retail sales surged during a five-day public holiday. European stocks were mostly down as traders pared back positions before the US jobs report later today. US stocks are flat although employers in America cut more jobs than forecast in September.
At the beginning of this week global stocks surged on Japan's surprise quantitive easing and on speculation that other Governments will take additional actions to reinvigorate the global economic recovery. On Thursday and Friday, global stocks were flat as investors seem divided as to whether the Feds will execute another round of quantitive easing due to poor employment in the American economy.
Important Further Update
Further to the summary below, on Friday US markets surged by the end of the session and the Dow Jones breached an important barrier by ending above 11,000. This is an excellent signal that this rally should continue.
This morning Asian stocks rose as investors plowed cash into stocks amid expectations the U.S. Federal Reserve will take action to prevent the American economy from slipping back into recession
Friday, October 8, 2010
Hollingsworth Daily Post
- European regulators have backed tougher than expected draft rules on bankers' pay despite pressure from the UK and France to water down the restrictions.If the draft rules are implemented, it would cap the amount of a bonus able to be taken in cash to a maximum of 30%.On Thursday, the measures were passed by the Committee of European Banking Supervisors, made up of financial watchdogs from the EU's 27 members.London argues that the new regime will make the European Union uncompetitive.
- The Japanese cabinet has approved a plan to pump more than $60bn (£38bn) into the country's struggling economy.The aim of the plan - which still needs approval from parliament - is to boost growth, jobs and spending.The Japanese economy is suffering from deflation and a strong currency; prices keep falling, but consumers hold off spending in hope of lower prices.Analysts said the key problem is that the yen is at a 15-year high, making exports more expensive.
- Migrant workers are suffering worst in the aftermath of the global recession, according to a special report commissioned by the BBC World Service.Foreign workers in developed nations are more likely to be jobless than their native-born counterparts, as the employment gap widens between the two.At the same time, immigration to developed countries has slowed sharply.
- Hollywood film studio Metro Goldwyn Mayer has begun plans to file for bankruptcy protection in an effort to rid itself of $4bn (£2.5bn) of debts.The company behind the James Bond films wants more than 100 of its creditors to agree plans to enter chapter 11 bankruptcy while it restructures.Creditors will get a 95% stake in the company as part of the deal.Chapter 11 allows MGM to operate as normal, but money troubles have held up production of new 007 and Hobbit films.
- Global currency wars pose "a real threat" to economic recovery, the head of the International Monetary Fund, Dominique Strauss-Kahn, has warned.In an interview with the BBC, he said currency disputes showed countries were not co-operating as well as they had during the financial crisis.In recent weeks both the US and Europe have led criticism of China over its undervalued yuan.Meanwhile, Japan has been forced to intervene to curb rises in the yen.
- Shanghai authorities have imposed limits on home buying in an attempt to cool the city's property market.Families in Shanghai will temporarily be allowed to buy only one more home, and banks must restrict mortgages.It follows moves by the central government to curb property speculation on the back of big price rises.Earlier this week, authorities in Shenzhen announced that anyone owning two houses or more would be stopped from buying further properties.
- Thomas Cook and the Co-operative Group are to merge their High Street travel businesses to create the largest such network in the UK.The move will bring together 1,204 stores, but both Thomas Cook and Co-operative Travel will retain their separate branding.They will create a new joint subsidiary company to be 70%-owned by Thomas Cook, with 30% held by the Co-operative.Thomas Cook admitted the deal may mean "hundreds" of job cuts.
BBC Business News 8th October 2010
Monday, October 4, 2010
Weekly Market Summary
BY RAYMOND CHATLANI
On Monday, Asian stock markets kicked off a new week of trading in good spirits, encouraged by an improvement in U.S. indicators that provided respite from worries about the durability of the economic recovery. Last Friday's report of an increase in US corporate spending lifted Asian indices. European and US markets edged lower as investors pocketed profits.
On Tuesday, Asian equities were lower on lingering concerns about eurozone debt. European markets fell slightly as traders are again weary of the health of Europe's financial markets and how countries there will be able to cope with mounting debt. US markets rose on reports that house prices have risen for five straight months and merger and takeover activity although consumer confidence dropped to its lowest level since February.
On Wednesday, Asian markets mostly rose on speculation that the Fed and Bank of Japan look to pump more funds into markets via bond purchases and other measures to help their struggling economies. European shares fell on massive street protests against austerity measures renewed worries about the region's finances with banks leading the downfall. Gold hit a new high of $1,313 an ounce at one point. US indices were down modestly as concerns over Europe's debt problems dampened sentiment.
On Thursday, Asian markets were mostly down except for China which rocketed over 1.5 percent on speculation government measures to tame real- estate prices will end policy tightening earlier and prevent asset bubbles from hurting the economy. European markets fell on concerns over Ireland and Spain's debt problems as Ireland’s government is preparing to take majority control of Allied Irish Banks Plc and pump extra cash into Anglo Irish Bank Corp. to draw a line under its financial crisis and as Moody's lowered Spain's credit rating from Aaa to Aa1. European markets later recovered in the afternoon and went into positive territory after economic reports in the USA topped expectations but finally closed mixed. American stocks rose on news that second quarter GDP grew 1.7% which was higher than estimated a month ago and that jobless claims figures were lower than expected but closed in negative territory at the end as investors booked profits for the month.
Today, most Asian stock markets rose although Hong Kong and China were closed for public holidays on stronger growth in Chinese manufacturing in September which suggests the world's No. 2 economy isn't slowing as sharply as feared. European markets fell except for the Uk on fears of a possible debt crisis on austerity protests. Gold hit a new high today at 1,318 an ounce driven by the US Dollar's weakness against the Euro. US stocks were flat as American personal spending topped estimates and data showed the manufacturing sector grew at a slower pace in September.
Another good week for equities and commodities. Data from the USA and China are showing slow growth in the US economy and high growth in Asia. EU markets were the exception this week and fell on debt worries stoked by the problems in Ireland and the downgrade of Spanish debt.
Gold new highs this week signifies that the market is looking ahead and probably sees inflation coming. If the market's view is correct, then our portfolios will continue to perform as the US Dollar continues its fall and emerging market's assets continue to appreciate.
On Monday, Asian stock markets kicked off a new week of trading in good spirits, encouraged by an improvement in U.S. indicators that provided respite from worries about the durability of the economic recovery. Last Friday's report of an increase in US corporate spending lifted Asian indices. European and US markets edged lower as investors pocketed profits.
On Tuesday, Asian equities were lower on lingering concerns about eurozone debt. European markets fell slightly as traders are again weary of the health of Europe's financial markets and how countries there will be able to cope with mounting debt. US markets rose on reports that house prices have risen for five straight months and merger and takeover activity although consumer confidence dropped to its lowest level since February.
On Wednesday, Asian markets mostly rose on speculation that the Fed and Bank of Japan look to pump more funds into markets via bond purchases and other measures to help their struggling economies. European shares fell on massive street protests against austerity measures renewed worries about the region's finances with banks leading the downfall. Gold hit a new high of $1,313 an ounce at one point. US indices were down modestly as concerns over Europe's debt problems dampened sentiment.
On Thursday, Asian markets were mostly down except for China which rocketed over 1.5 percent on speculation government measures to tame real- estate prices will end policy tightening earlier and prevent asset bubbles from hurting the economy. European markets fell on concerns over Ireland and Spain's debt problems as Ireland’s government is preparing to take majority control of Allied Irish Banks Plc and pump extra cash into Anglo Irish Bank Corp. to draw a line under its financial crisis and as Moody's lowered Spain's credit rating from Aaa to Aa1. European markets later recovered in the afternoon and went into positive territory after economic reports in the USA topped expectations but finally closed mixed. American stocks rose on news that second quarter GDP grew 1.7% which was higher than estimated a month ago and that jobless claims figures were lower than expected but closed in negative territory at the end as investors booked profits for the month.
Today, most Asian stock markets rose although Hong Kong and China were closed for public holidays on stronger growth in Chinese manufacturing in September which suggests the world's No. 2 economy isn't slowing as sharply as feared. European markets fell except for the Uk on fears of a possible debt crisis on austerity protests. Gold hit a new high today at 1,318 an ounce driven by the US Dollar's weakness against the Euro. US stocks were flat as American personal spending topped estimates and data showed the manufacturing sector grew at a slower pace in September.
Another good week for equities and commodities. Data from the USA and China are showing slow growth in the US economy and high growth in Asia. EU markets were the exception this week and fell on debt worries stoked by the problems in Ireland and the downgrade of Spanish debt.
Gold new highs this week signifies that the market is looking ahead and probably sees inflation coming. If the market's view is correct, then our portfolios will continue to perform as the US Dollar continues its fall and emerging market's assets continue to appreciate.
Thursday, September 30, 2010
Hollingsworth Daily Post
- The Irish central bank has said bailing out Anglo Irish Bank will cost up to 34bn euros ($46bn; £29bn) under a worst-case scenario.It said bailing out Anglo Irish would cost 29.3bn euros under a "base" scenario, but it could cost another 5bn euros in a "stress scenario".Last month, the cost of the bail out was estimated at between 22-25bn euros.Anglo Irish was most dependent on property values, the sector worse affected by the credit crunch.
- Shares in games company Nintendo have sunk following news that its new console will not go on sales during the crucial Christmas season.Nintendo admitted that its 3DS machine, which features 3D technology, will not be ready in time, and more than halved its profit forecast for the year.In Tokyo, shares in Nintendo closed down 9.3%.The 3DS will now go on sale in Japan in February, and reach shops in Europe and the US in March.
- Spain has lost its last triple-A credit rating with the major rating agencies, following a downgrade from Moody's.The agency downgraded Spanish debt by one level to Aa1, following similar moves by Fitch and Standard & Poor's earlier this year.Moody's said the downgrade reflected the "considerable deterioration" in Spain's public finances.The slow growth in the Spanish economy would also present challenges, it said.
- UK-based Lotus has revealed details about five new sportscars ahead of their unveiling in Paris on Thursday.The cars, which will hit the road over a five-year period, mark a new start for the carmaker, Lotus says."This is not just about the cars, it's about the complete remake of the brand," boss Dany Bahar told BBC News.
- The US House of Representatives has backed legislation that would pave the way for trade sanctions on China.The Democrat-backed bill passed by 348 to 79, and targets countries that hold down the value of their currencies, as many accuse China of doing.To become law, the bill would also need to be passed by the Senate - unlikely before November mid-term elections - and then signed by President Obama.China said the bill contravened World Trade Organization rules.
- Air France-KLM and sister cargo carrier Martinair are being sued by hundreds of European companies, led by Ericsson and Philips, the firms' lawyer says.The carriers face claims of up to 500m euros ($681m; £432m) in compensation for alleged air cargo price-fixing.They say they were overcharged by 10% on international air freight between 2000 and 2007 because of an illegal price-fixing deal between airlines.The case is being brought in Amsterdam with papers to be filed on Thursday.
BBC Business News 30th September 2010
Monday, September 27, 2010
Weekly Market Summary
by Raymond Chatlani
With the Japanese stockmarket closed on Monday, Asian equities were mixed as investors wait for the FEDS statement on the US economy on Tuesday. European markets extended gains after US shares rose on a report showing that U.S. homebuilder sentiment unexpectedly held steady in September. US indices closed over 1% higher as investors expect the Feds on Tuesday to state that more quantitive easing may be forthcoming if necessary.
On Tuesday, Asian markets rose modestly following the US markets. EU indices closed mixed although Irish, Spanish and Greek Government bond issues were all successful. Consequently, the Euro climbed strongly against the US Dollar. US stockmarkets were flat although housing starts in August rose more than expected. The U.S. Federal Reserve announced that it was ready to provide more support for the economy and expressed stronger concerns about low inflation, while keeping interest rates on hold and not offering a timetable for when it might provide that support. Investors heard what they wanted but did not push US indices higher. It seems that they are waiting to see if further quantitive easing actually occurs. Gold hit a new high of $1,290 an ounce.
On Wednesday, Asian stocks were mixed in thin trade as markets were closed for holidays in South Korea, mainland China and Taiwan. The FTSE 100 fell on speculation over government plans to introduce a new bank windfall tax which hit financials. EU markets fell also. Gold hit a new record high of $1,295 an ounce as the US Dollar tanked against the Euro. US indices fell as some technology companies slumped and the Federal Reserve's downbeat assesment of the U.S. economy weighed on sentiment. Investors are realizing things will have to deteriorate first in the economy before the Fed is going to intervene.
On Thursday, Asian markets that were open fell modestly in thin trade as major markets in Japan, mainland China, Hong Kong and South Korea were closed for holidays. European and US indices fell as investors worried about growth prospects in the developed world as a surprise contraction in Ireland's GDP and news that US unemployment claims climbed and that sales of previously-owned homes in the US rose to a 4.13m annual pace in the month, second lowest only to July which was the worst in a decade's worth of figures from the National Association of Realtors.
This morning, Asian stockmarkets were mixed on the back of US unemployment figures providing evidence of a poor recovery in the world's biggest economy. Gold hit an all time high of $1,299.95 an ounce before pulling back slightly while silver rose to a thirty year high of $21.37 an ounce. European markets rose upon US macro data after opening flat during the day. US shares rallied almost 2 percent as demand for American capital equipment rebounded and German business confidence improved. Growth in orders for US durable goods excluding transportation equipment grew 2 percent while German business confidence unexpectedly rose to the highest level in more than three years.
This week economic data has again improved and the US Federal Reserve's implied action of quantitive easing has contributed to emerging markets gains. Today's improvement in US durable goods orders may be a significant event as it implies that US companies are now spending and investing to grow their business. While we are still seeing the western economies of the USA, EU, UK and Japan struggling to grow as unemployment and housing still remain weak, emerging markets and commodities are taking off. Our recent changes to be more aggressive and invest into emerging markets is working. As long as the developed economies do not go into another recession, then we should see further gains.
With the Japanese stockmarket closed on Monday, Asian equities were mixed as investors wait for the FEDS statement on the US economy on Tuesday. European markets extended gains after US shares rose on a report showing that U.S. homebuilder sentiment unexpectedly held steady in September. US indices closed over 1% higher as investors expect the Feds on Tuesday to state that more quantitive easing may be forthcoming if necessary.
On Tuesday, Asian markets rose modestly following the US markets. EU indices closed mixed although Irish, Spanish and Greek Government bond issues were all successful. Consequently, the Euro climbed strongly against the US Dollar. US stockmarkets were flat although housing starts in August rose more than expected. The U.S. Federal Reserve announced that it was ready to provide more support for the economy and expressed stronger concerns about low inflation, while keeping interest rates on hold and not offering a timetable for when it might provide that support. Investors heard what they wanted but did not push US indices higher. It seems that they are waiting to see if further quantitive easing actually occurs. Gold hit a new high of $1,290 an ounce.
On Wednesday, Asian stocks were mixed in thin trade as markets were closed for holidays in South Korea, mainland China and Taiwan. The FTSE 100 fell on speculation over government plans to introduce a new bank windfall tax which hit financials. EU markets fell also. Gold hit a new record high of $1,295 an ounce as the US Dollar tanked against the Euro. US indices fell as some technology companies slumped and the Federal Reserve's downbeat assesment of the U.S. economy weighed on sentiment. Investors are realizing things will have to deteriorate first in the economy before the Fed is going to intervene.
On Thursday, Asian markets that were open fell modestly in thin trade as major markets in Japan, mainland China, Hong Kong and South Korea were closed for holidays. European and US indices fell as investors worried about growth prospects in the developed world as a surprise contraction in Ireland's GDP and news that US unemployment claims climbed and that sales of previously-owned homes in the US rose to a 4.13m annual pace in the month, second lowest only to July which was the worst in a decade's worth of figures from the National Association of Realtors.
This morning, Asian stockmarkets were mixed on the back of US unemployment figures providing evidence of a poor recovery in the world's biggest economy. Gold hit an all time high of $1,299.95 an ounce before pulling back slightly while silver rose to a thirty year high of $21.37 an ounce. European markets rose upon US macro data after opening flat during the day. US shares rallied almost 2 percent as demand for American capital equipment rebounded and German business confidence improved. Growth in orders for US durable goods excluding transportation equipment grew 2 percent while German business confidence unexpectedly rose to the highest level in more than three years.
This week economic data has again improved and the US Federal Reserve's implied action of quantitive easing has contributed to emerging markets gains. Today's improvement in US durable goods orders may be a significant event as it implies that US companies are now spending and investing to grow their business. While we are still seeing the western economies of the USA, EU, UK and Japan struggling to grow as unemployment and housing still remain weak, emerging markets and commodities are taking off. Our recent changes to be more aggressive and invest into emerging markets is working. As long as the developed economies do not go into another recession, then we should see further gains.
Friday, September 17, 2010
Weekly Market Summary
by Raymond Chatlani
On Friday, industrial production data showed that factory output in July in India expanded 13.8% from a year earlier, nearly double analyst estimates and the fastest pace since April.
On Monday, Asian stockmarkets climbed as robust Chinese economic indicators boosted confidence in the economic recovery. China's industrial production growth accelerated to 13.9 percent year-on-year in August from July's 13.4 percent increase. Investment in factories and other fixed assets soared 24.8 percent while retail sales of consumer goods rose 18.4 percent due to better-than-expected auto sales. EU and US indices rose on China's robust data and relief that new global bank rules would not mean a rush to raise billions of dollars in extra capital. The new banking regulation Basel 3 gives institutions up to 2019 to adequately raise their capital/ liquidity ratios to conform with this new legislation.
On Tuesday, Asian markets were up except for Japan, Singapore and South Korea who are heavily dependant on exports. This can be attributed to their strenghtening currencies against the US Dollar with the Yen hitting a 15 year high against the American Dollar. European and US indices closed mixed as German consumer confidence fell sharply in September and industrial production unexpectedly stagnated during July in the countries that use the euro, while US retail sales grew more than forecast as sales rose in August to their highest gain in 5 months. Gold hit a new record high as the US Dollar fell against most global currencies.
On Wednesday, Japan led Asian stockmarkets higher soaring nearly 3 percent after the government announced its first currency intervention to weaken the yen since 2004. European stocks fell after a gauge of manufacturing in New York State unexpectedly fell to its lowest level in more than a year in September. US stocks rose when the Federal Reserve reported that industrial production in the USA rose modestly in August and the manufacturing sector grew for the 12th time in 14 months.
On Thursday, Asian markets dropped as the US dollar posted its largest gain against the Yen in the last two years as Japan began selling its currency on foreign exchange markets on Wednesday and on speculation that China's banking regulator was considering raising capital adequacy ratios at banks to constrain excesses in the property market. European stocks were lower on unemployment data in the USA. US indices were little changed although the Labor Department said first-time claims for unemployment benefits fell to a two-month low, but still remain at levels that indicate economic growth is sluggish. Claims dropped to 450,000 last week which is below the figure of 460,000 expected by economists.
On Friday, Asian indices all rose amid confidence that the region's growth will be sustained despite slow economic recoveries in the U.S. and Europe. Gold hit a new record high of $1,282 an ounce as the US dollar resumed its fall against most major currencies but pulled back to $1,276 at the time of writing. European markets were up on acquisition news and recediing fears of recession but fell into negative territory at the close after consumer confidence fell in the USA. In the USA consumer sentiment edged down in August and US indices were flat.
This week we have seen economic data improve again. In the USA, the third drop in jobless claims in four weeks and a mild uptick in wholesale prices in August add to evidence that a second recession is unlikely. Economists are less worried that the U.S. will experience another round of mass layoffs and its first bout of deflation since the 1930s. The US economy is still growing, but at a pace too slow to create many jobs.
Last week we started to invest a little bit into emerging markets for a few select clients and this week we have restructured most of our clients' portfolios from an allocation of 75% bonds / 25% cash into 75% bonds / 25% emerging market equities. If economic data continues to improve in the next few weeks, we shall continue to increase exposure to more risky assets.
On Friday, industrial production data showed that factory output in July in India expanded 13.8% from a year earlier, nearly double analyst estimates and the fastest pace since April.
On Monday, Asian stockmarkets climbed as robust Chinese economic indicators boosted confidence in the economic recovery. China's industrial production growth accelerated to 13.9 percent year-on-year in August from July's 13.4 percent increase. Investment in factories and other fixed assets soared 24.8 percent while retail sales of consumer goods rose 18.4 percent due to better-than-expected auto sales. EU and US indices rose on China's robust data and relief that new global bank rules would not mean a rush to raise billions of dollars in extra capital. The new banking regulation Basel 3 gives institutions up to 2019 to adequately raise their capital/ liquidity ratios to conform with this new legislation.
On Tuesday, Asian markets were up except for Japan, Singapore and South Korea who are heavily dependant on exports. This can be attributed to their strenghtening currencies against the US Dollar with the Yen hitting a 15 year high against the American Dollar. European and US indices closed mixed as German consumer confidence fell sharply in September and industrial production unexpectedly stagnated during July in the countries that use the euro, while US retail sales grew more than forecast as sales rose in August to their highest gain in 5 months. Gold hit a new record high as the US Dollar fell against most global currencies.
On Wednesday, Japan led Asian stockmarkets higher soaring nearly 3 percent after the government announced its first currency intervention to weaken the yen since 2004. European stocks fell after a gauge of manufacturing in New York State unexpectedly fell to its lowest level in more than a year in September. US stocks rose when the Federal Reserve reported that industrial production in the USA rose modestly in August and the manufacturing sector grew for the 12th time in 14 months.
On Thursday, Asian markets dropped as the US dollar posted its largest gain against the Yen in the last two years as Japan began selling its currency on foreign exchange markets on Wednesday and on speculation that China's banking regulator was considering raising capital adequacy ratios at banks to constrain excesses in the property market. European stocks were lower on unemployment data in the USA. US indices were little changed although the Labor Department said first-time claims for unemployment benefits fell to a two-month low, but still remain at levels that indicate economic growth is sluggish. Claims dropped to 450,000 last week which is below the figure of 460,000 expected by economists.
On Friday, Asian indices all rose amid confidence that the region's growth will be sustained despite slow economic recoveries in the U.S. and Europe. Gold hit a new record high of $1,282 an ounce as the US dollar resumed its fall against most major currencies but pulled back to $1,276 at the time of writing. European markets were up on acquisition news and recediing fears of recession but fell into negative territory at the close after consumer confidence fell in the USA. In the USA consumer sentiment edged down in August and US indices were flat.
This week we have seen economic data improve again. In the USA, the third drop in jobless claims in four weeks and a mild uptick in wholesale prices in August add to evidence that a second recession is unlikely. Economists are less worried that the U.S. will experience another round of mass layoffs and its first bout of deflation since the 1930s. The US economy is still growing, but at a pace too slow to create many jobs.
Last week we started to invest a little bit into emerging markets for a few select clients and this week we have restructured most of our clients' portfolios from an allocation of 75% bonds / 25% cash into 75% bonds / 25% emerging market equities. If economic data continues to improve in the next few weeks, we shall continue to increase exposure to more risky assets.
Hollingsworth Daily Post
- Shares in Blackberry-maker Research in Motion (RIM) rose more than 4% in after-hours trade after the firm posted stronger-than-expected profits.Net profit for the three months to August rose to $796.7m (£507m) from $475.6m a year earlier.The company has recently been involved in a row over data security in India and the Middle East.This was partly to blame for the firm adding fewer subscribers than expected in the quarter, RIM said.
- The UK's interim cap on immigration from outside the EU is damaging to British business, Lib Dem Business Secretary Vince Cable has said.Some companies were considering moving jobs abroad because they could not recruit the staff they needed, he said.He told the Financial Times he backs plans for a permanent cap from next April but wants it to be more flexible.The Home Office said the temporary cap, introduced in July, still allowed the brightest and best to enter the UK.
- European plans to change maternity rights will cost UK firms £2.5bn a year, a business group has warned.Under proposals to be voted on next month, women leaving work to having a child would be entitled to 20 weeks' leave on full pay.The British Chambers of Commerce (BCC) argues this is unaffordable, especially in the current financial crisis.However, others insist that it is wrong to allow policy to be influenced by temporary economic downturns.
- One in seven Americans was living in poverty in 2009 with the level of working-age poor the highest since the 1960s, the US Census Bureau says.The number of people in poverty increased by nearly 4m - to 43.6m - between 2008 and 2009, officials said.The bureau defines poverty as any family of four living on less than $21,954 a year.Meanwhile, new figures showed home foreclosures in August hit the highest level since the mortgage crisis began.
- The US Treasury Secretary, Timothy Geithner, says China's currency is significantly undervalued.Mr Geithner told a key committee of Senators that he was examining what mix of tools would encourage China to let the yuan appreciate more quickly.Unlike most other major currencies, China does not allow its currency to fluctuate freely according to market demand.It intervenes to keep it low, but said in June it should be allowed to rise.Mr Geithner said the yuan had appreciated just 1.9% against the dollar since then.
- Shareholders in the Italian carmaker Fiat have agreed to spin off its non-car assets and split the business.The move was approved by a large margin.John Elkann, Fiat's 34-year-old chairman and the grandson of the founder, Gianni Agnelli, called the vote an "historic" event that "gives birth to two Fiats".The split is designed to help Fiat integrate with Chrysler but also to form other alliances.Many major car makers have forged ventures with firms in the fast-growing markets of India and China.
BBC Business News 17th September 2010
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