FT.COM
"Like a whodunit writer, Mario Draghi is good at building suspense and a “yikes, how will he solve this one?” sensation. In December, when the eurozone last faced meltdown, the European Central Bank president wrongfooted markets by providing unlimited three-year loans to the eurozone financial system: the pundits had expected a revamped government bond-buying programme.
Eight months later, the uplifting effects of the longer-term refinancing operations, which saw the ECB pump more than €1tn into banks, have faded. Once again the ECB’s existing bond-buying instrument is unlikely to be his weapon of choice, at least in its current form, argues Ralph Atkins"
Tuesday, 31 July 2012
Sunday, 29 July 2012
Breaking News - German banks cut back periphery lending
FT.com
Cross-border lending by German banks to the weaker parts of the eurozone has dropped by nearly a fifth since January and now stands at the lowest level since 2005,
According to new central bank data.
Cross-border lending by German banks to the weaker parts of the eurozone has dropped by nearly a fifth since January and now stands at the lowest level since 2005,
According to new central bank data.
Tuesday, 24 July 2012
Asian Summary 24th July - Are we in another Sovereign Crisis with the downgrades !!
Asian stocks paring earlier losses (MSCI Asia pacific little change after being down 0.4%) as the outlook for China’s manufacturing improved. Copper added 1% after reaching a three-week low. Germany, Netherlands and Luxembourg had their Aaa credit rating outlooks lowered to negative by Moody's Investors on the rising uncertainty about Europe's debt crisis. Greek creditors meet today amid scepticism that the country will attain its bailout targets. Dow closing up 0.32% and the S&P up 0.42% after SA futures close.
Monday, 23 July 2012
Worry about the euro; not price stability
FT.com
By assigning to the European Central Bank the task of “defining and implementing the monetary policy of the Community”, the EU Treaty implicitly considers that there should be only one monetary policy for the entire euro area.
Yet, looking at a variety of indicators – from short or long term interest rates on a wide variety of assets to the flow of money and credit to the private sector – it is difficult to conclude that monetary conditions are currently uniform across the union, writes Lorenzo Bini Smaghi.
Millions of South Africans trapped in debt spiral
FIN 24.com
"Cape Town - Of the 19.5 million credit active consumers in South Africa, 12 million have missed at least one debt instalment, according to an industry expert.
Even more concerning, 9 million - or 46.4% - have impaired credit records as a result of missing three or more instalments,
The biggest culprit when consumers fall into the debt trap is their use of debt to service other debt. Former Reserve Bank governor Tito Mboweni warned as far back as six years ago about the "credit madness", where consumers were offered up to three credit cards from banks and told "they could use the one to pay off the other".
Gardner says about 55% of credit active consumers in South Africa spend more than they earn.
"Consumers typically fall into a debt spiral when they access increasingly more debt merely to make ends meet and pay other existing debt. This is what we call 'borrowing from Peter to pay Paul', and results in the average consumer accumulating up to 11 accounts.
"How consumers react the first time they cannot afford a debt instalment is critical," says Gardner. He shares his top three tips to avoid the debt trap:
1. Spend less than you earn
Any financial planning advice should always start with looking at how you spend your money and whether you have a cash surplus or a cash shortage at the end of the month.
Understanding your spending habits by measuring your spend over a number of months is the first, and most effective, financial habit any consumer should adopt.
• Measure your spend
If you are not measuring, then you are not aware if you are spending less or more than you earn. Understanding whether you are spending on necessities or luxuries is critical for effectively managing your cash flow.
This will also provide an early indicator of bigger problems like excessive life style costs that may need immediate, corrective action.
Seeing your spending patterns in black and white will improve your discipline and prevent impulse purchases by illustrating the consequences of not sticking to your budget.
When you understand that buying those shoes will mean you don't have enough money for the month's groceries, you will be more likely to think twice.
• Set household financial goals
If everyone in your household understands the end goal, they will know why they need to stay disciplined and make sacrifices. Goals provide a sense of financial purpose which will improve discipline and ensure buy-in from all household members.
• Change your consumer norms
Most consumers buy their vehicles on credit and like to buy brand new models that will impress their friends and colleagues.
What they fail to realise is that when you buy a new vehicle, you lose at least 15% of its value on day one, not to mention that you will be paying over 10% for finance costs in the first year alone.
How impressive is a fancy vehicle when you realise you have lost 25% of its value in the first 12 months - and it is still owned by the bank?
"Our interventions are aimed at challenging the current thinking in society, making it more 'cool' to resist your ego and spend less than you earn," says Gardner.
2. Correct your past mistakes
Where you have a negative monthly cash flow, it is usually due to excessive debt instalments. Make sure you address this affordability problem early and effectively.
Accessing more loans to try and cover the shortfall will merely delay the crash and multiply the problem.
If you are struggling to pay your debt instalments, you can contact your credit providers and make payment arrangements, like paying reduced instalments for three to four months.
This will allow you to catch your breath. Trying to hide the problem by making more debt will inevitably lead to a dead end (usually after about 10 accounts) which will require far more drastic action like debt counselling, which can take up to five years to bring you back to financial health.
The sooner you address your negative cash flow, the quicker and easier it will be to correct. Do not ignore letters of demand or default notices, as they will not go away and you will merely accumulate expensive legal and collection fees.
3. Have an emergency savings fund
Emergencies are inevitable. To prevent them from wreaking havoc on your finances, build up a savings fund which you can use to pay for emergencies when they happen.
You should aim to have savings equal to two or three times your monthly salary, but start by saving something every month.
Having an emergency savings fund will save you from having to access expensive unsecured debt when urgent, unexpected payments need to be made.
When debt is accessed out of desperation, we usually don't take the time to understand the costs, risks or consequences, resulting in debt that can easily get out of control. "
Take it slow in these choppy times & wait out the temptation !!
"Cape Town - Of the 19.5 million credit active consumers in South Africa, 12 million have missed at least one debt instalment, according to an industry expert.
Even more concerning, 9 million - or 46.4% - have impaired credit records as a result of missing three or more instalments,
The biggest culprit when consumers fall into the debt trap is their use of debt to service other debt. Former Reserve Bank governor Tito Mboweni warned as far back as six years ago about the "credit madness", where consumers were offered up to three credit cards from banks and told "they could use the one to pay off the other".
Gardner says about 55% of credit active consumers in South Africa spend more than they earn.
"Consumers typically fall into a debt spiral when they access increasingly more debt merely to make ends meet and pay other existing debt. This is what we call 'borrowing from Peter to pay Paul', and results in the average consumer accumulating up to 11 accounts.
"How consumers react the first time they cannot afford a debt instalment is critical," says Gardner. He shares his top three tips to avoid the debt trap:
1. Spend less than you earn
Any financial planning advice should always start with looking at how you spend your money and whether you have a cash surplus or a cash shortage at the end of the month.
Understanding your spending habits by measuring your spend over a number of months is the first, and most effective, financial habit any consumer should adopt.
• Measure your spend
If you are not measuring, then you are not aware if you are spending less or more than you earn. Understanding whether you are spending on necessities or luxuries is critical for effectively managing your cash flow.
This will also provide an early indicator of bigger problems like excessive life style costs that may need immediate, corrective action.
Seeing your spending patterns in black and white will improve your discipline and prevent impulse purchases by illustrating the consequences of not sticking to your budget.
When you understand that buying those shoes will mean you don't have enough money for the month's groceries, you will be more likely to think twice.
• Set household financial goals
If everyone in your household understands the end goal, they will know why they need to stay disciplined and make sacrifices. Goals provide a sense of financial purpose which will improve discipline and ensure buy-in from all household members.
• Change your consumer norms
Most consumers buy their vehicles on credit and like to buy brand new models that will impress their friends and colleagues.
What they fail to realise is that when you buy a new vehicle, you lose at least 15% of its value on day one, not to mention that you will be paying over 10% for finance costs in the first year alone.
How impressive is a fancy vehicle when you realise you have lost 25% of its value in the first 12 months - and it is still owned by the bank?
"Our interventions are aimed at challenging the current thinking in society, making it more 'cool' to resist your ego and spend less than you earn," says Gardner.
2. Correct your past mistakes
Where you have a negative monthly cash flow, it is usually due to excessive debt instalments. Make sure you address this affordability problem early and effectively.
Accessing more loans to try and cover the shortfall will merely delay the crash and multiply the problem.
If you are struggling to pay your debt instalments, you can contact your credit providers and make payment arrangements, like paying reduced instalments for three to four months.
This will allow you to catch your breath. Trying to hide the problem by making more debt will inevitably lead to a dead end (usually after about 10 accounts) which will require far more drastic action like debt counselling, which can take up to five years to bring you back to financial health.
The sooner you address your negative cash flow, the quicker and easier it will be to correct. Do not ignore letters of demand or default notices, as they will not go away and you will merely accumulate expensive legal and collection fees.
3. Have an emergency savings fund
Emergencies are inevitable. To prevent them from wreaking havoc on your finances, build up a savings fund which you can use to pay for emergencies when they happen.
You should aim to have savings equal to two or three times your monthly salary, but start by saving something every month.
Having an emergency savings fund will save you from having to access expensive unsecured debt when urgent, unexpected payments need to be made.
When debt is accessed out of desperation, we usually don't take the time to understand the costs, risks or consequences, resulting in debt that can easily get out of control. "
Take it slow in these choppy times & wait out the temptation !!
Asian Stocks Drop With Euro as Treasuries Gain on Growth Concern
July 23 (Bloomberg) --
"Asian stocks fell, while the euro weakened to an 11-year low against the yen and Treasury 10-year yields dropped to a record as a Chinese central bank board member warned of slowing growth and on concern Greece may exit the currency bloc. Commodities declined.
The MSCI Asia Pacific Index tumbled 1.6 percent at 1:42 p.m. in Tokyo as Hong Kong’s Hang Seng Index slid 2.6 percent. Futures on the Standard & Poor’s 500 Index dropped 0.6 percent while those on the FTSE 100 Index futures lost 0.8 percent. The euro touched a two-year low against the greenback. The yield on the U.S. 10-year note slumped to 1.4347 percent, while Asian government bonds rallied. The S&P GSCI gauge of 24 raw materials lost 1.2 percent.
“It’s going to be volatile, it’s going to be difficult,” said Raymond Chan, chief Asia-Pacific investment officer at Allianz Global Investors, which oversees about $300 billion. “We’ve not seen any solutions to make sure that the euro stays intact.” In China, “we don’t expect a strong recovery but we’ve probably seen the worst already,” Chan said in a Bloomberg Television interview.
China’s economic expansion may cool for a seventh straight quarter to 7.4 percent in the three months to September, said Song Guoqing, a member of the People’s Bank of China monetary policy committee. Greece’s creditors meet this week amid doubts that the country will meet its bailout commitments. German Vice Chancellor Philipp Roesler said he’s “very skeptical” that European leaders will be able to rescue Greece. A July 27 report may show the U.S. economy grew in the second quarter at the slowest pace in a year.
Euro Declines
The euro slipped 0.7 percent to 94.73 yen after touching 94.63, the lowest since November 2000, before a Spanish bill sale tomorrow. It dropped 0.4 percent to $1.2115 after earlier sliding to $1.2106, a level unseen since June 2010, as Spain’s 10-year note yields climbed toward a euro-era record last week.
The Australian and New Zealand dollars retreated for a second day, as global growth concerns reduced demand for riskier assets. South Korea’s five-year government bond yield slumped to a record low and Japan’s 10-year yields tumbled to the lowest since June 2003.
The MSCI Asia Pacific Index slid 0.8 percent on July 20, the most in a week, as China pledged to keep curbs on its property market. Economic growth in the country slowed to 7.6 percent in the three months ended June, the sixth straight deceleration, as Europe’s fiscal crisis sapped exports and a crackdown on property speculation curbed domestic demand.
About eight stocks fell for every one that rose on the MSCI Asia Pacific Index. Ricoh Co., a producer of office equipment that counts on Europe for 21 percent of revenue, retreated 5.8 percent in Tokyo.
U.S. Earnings
McDonald’s Corp., the world’s largest restaurant chain, releases results today. Earnings at U.S. companies have exceeded analyst estimates at about 73 percent of the 118 S&P 500 companies that reported quarterly results so far, according to data compiled by Bloomberg. While profits are up 0.4 percent for the group, sales rose an average 2.9 percent, the weakest since a drop of 0.6 percent in the third quarter of 2009.
The S&P 500 rose last week, posting its first back-to-back gain since June, as results from International Business Machines Corp. to Baker Hughes Inc. beat forecasts and Federal Reserve Chairman Ben S. Bernanke said he’s prepared to add stimulus. U.S. consumer confidence and equity valuations are diverging the most in 17 years as price-earnings ratios fall, according to data compiled by Bloomberg.
U.S. gross domestic product, the value of all goods and services the nation produced, rose at a 1.4 percent annual rate after a 1.9 percent gain in the prior quarter, according to the median forecast of 70 economists surveyed by Bloomberg News. Factory orders softened and new-home sales were little changed, other data may show this week.
Corn, Soybeans
Corn for December delivery in Chicago fell to $7.8750 a bushel, after earlier surging to $8 as a drought scorched crops in the U.S., the world’s top producer and exporter. The previous peak for the most-active contract was $7.9925 on June 27, 2008. Soybeans were 1.3 percent lower after touching an all-time high of $16.9150 a bushel.
Roesler, who is Germany’s economy minister, told broadcaster ARD that Greece was unlikely to be able to meet its obligations under a euro-area bailout program as its troika of international creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- hold talks this week in Athens. Should that be the case, the country won’t receive more bailout payments, Roesler said.
The International Monetary Fund will stop paying further rescue aid to Greece, making the country’s insolvency in September more likely, the Der Spiegel magazine reported, citing unidentified European Union officials. Data today may show an index of consumer sentiment in the euro region probably fell to minus 20 in July from minus 19.8 a month earlier, economists predicted in a Bloomberg survey.
To contact the reporters on this story: Glenys Sim at gsim4@bloomberg.net ; Susan Li in Hong Kong at sli31@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
"Asian stocks fell, while the euro weakened to an 11-year low against the yen and Treasury 10-year yields dropped to a record as a Chinese central bank board member warned of slowing growth and on concern Greece may exit the currency bloc. Commodities declined.
The MSCI Asia Pacific Index tumbled 1.6 percent at 1:42 p.m. in Tokyo as Hong Kong’s Hang Seng Index slid 2.6 percent. Futures on the Standard & Poor’s 500 Index dropped 0.6 percent while those on the FTSE 100 Index futures lost 0.8 percent. The euro touched a two-year low against the greenback. The yield on the U.S. 10-year note slumped to 1.4347 percent, while Asian government bonds rallied. The S&P GSCI gauge of 24 raw materials lost 1.2 percent.
“It’s going to be volatile, it’s going to be difficult,” said Raymond Chan, chief Asia-Pacific investment officer at Allianz Global Investors, which oversees about $300 billion. “We’ve not seen any solutions to make sure that the euro stays intact.” In China, “we don’t expect a strong recovery but we’ve probably seen the worst already,” Chan said in a Bloomberg Television interview.
China’s economic expansion may cool for a seventh straight quarter to 7.4 percent in the three months to September, said Song Guoqing, a member of the People’s Bank of China monetary policy committee. Greece’s creditors meet this week amid doubts that the country will meet its bailout commitments. German Vice Chancellor Philipp Roesler said he’s “very skeptical” that European leaders will be able to rescue Greece. A July 27 report may show the U.S. economy grew in the second quarter at the slowest pace in a year.
Euro Declines
The euro slipped 0.7 percent to 94.73 yen after touching 94.63, the lowest since November 2000, before a Spanish bill sale tomorrow. It dropped 0.4 percent to $1.2115 after earlier sliding to $1.2106, a level unseen since June 2010, as Spain’s 10-year note yields climbed toward a euro-era record last week.
The Australian and New Zealand dollars retreated for a second day, as global growth concerns reduced demand for riskier assets. South Korea’s five-year government bond yield slumped to a record low and Japan’s 10-year yields tumbled to the lowest since June 2003.
The MSCI Asia Pacific Index slid 0.8 percent on July 20, the most in a week, as China pledged to keep curbs on its property market. Economic growth in the country slowed to 7.6 percent in the three months ended June, the sixth straight deceleration, as Europe’s fiscal crisis sapped exports and a crackdown on property speculation curbed domestic demand.
About eight stocks fell for every one that rose on the MSCI Asia Pacific Index. Ricoh Co., a producer of office equipment that counts on Europe for 21 percent of revenue, retreated 5.8 percent in Tokyo.
U.S. Earnings
McDonald’s Corp., the world’s largest restaurant chain, releases results today. Earnings at U.S. companies have exceeded analyst estimates at about 73 percent of the 118 S&P 500 companies that reported quarterly results so far, according to data compiled by Bloomberg. While profits are up 0.4 percent for the group, sales rose an average 2.9 percent, the weakest since a drop of 0.6 percent in the third quarter of 2009.
The S&P 500 rose last week, posting its first back-to-back gain since June, as results from International Business Machines Corp. to Baker Hughes Inc. beat forecasts and Federal Reserve Chairman Ben S. Bernanke said he’s prepared to add stimulus. U.S. consumer confidence and equity valuations are diverging the most in 17 years as price-earnings ratios fall, according to data compiled by Bloomberg.
U.S. gross domestic product, the value of all goods and services the nation produced, rose at a 1.4 percent annual rate after a 1.9 percent gain in the prior quarter, according to the median forecast of 70 economists surveyed by Bloomberg News. Factory orders softened and new-home sales were little changed, other data may show this week.
Corn, Soybeans
Corn for December delivery in Chicago fell to $7.8750 a bushel, after earlier surging to $8 as a drought scorched crops in the U.S., the world’s top producer and exporter. The previous peak for the most-active contract was $7.9925 on June 27, 2008. Soybeans were 1.3 percent lower after touching an all-time high of $16.9150 a bushel.
Roesler, who is Germany’s economy minister, told broadcaster ARD that Greece was unlikely to be able to meet its obligations under a euro-area bailout program as its troika of international creditors -- the European Commission, the European Central Bank and the International Monetary Fund -- hold talks this week in Athens. Should that be the case, the country won’t receive more bailout payments, Roesler said.
The International Monetary Fund will stop paying further rescue aid to Greece, making the country’s insolvency in September more likely, the Der Spiegel magazine reported, citing unidentified European Union officials. Data today may show an index of consumer sentiment in the euro region probably fell to minus 20 in July from minus 19.8 a month earlier, economists predicted in a Bloomberg survey.
To contact the reporters on this story: Glenys Sim at gsim4@bloomberg.net ; Susan Li in Hong Kong at sli31@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Friday, 20 July 2012
Asian Stocks Drop With Euro on Global Growth Concern; Oil Falls
July 20 (Bloomberg) --
"Asian stocks and the euro declined amid concern Europe’s debt crisis is dragging on global growth and as China pledged to keep curbs on its property market. Oil dropped from the highest level in nine weeks.
The MSCI Asia Pacific Index fell 0.6 percent at 12:41 p.m. in Tokyo as Japan’s Topix Index lost 1.5 percent for its 10th drop in 11 days. The Shanghai Composite Index retreated 0.4 percent and futures on the Standard & Poor’s 500 Index slid 0.3 percent. The euro weakened against most of its 16 major peers and oil declined 0.7 percent. Corn rose 0.7 percent as a U.S. drought threatened supplies.
“For the market, the environment will continue to be quite challenging,” Steven Sun, an equity strategist at HSBC Holdings Plc., said in a Bloomberg Television interview. “Central banks globally are easing monetary policy to lower financial market volatility and avoid downside growth risk.”
China won’t relax property control policies and will instead seek to keep a “firm grip” on the real estate market to prevent a rebound in housing prices, Xinhua News Agency said. At more than half of 760 listed Chinese companies to report results, net income declined from a year earlier, worse than in the first six months of 2009, Societe Generale SA said yesterday.
Earnings at U.S. companies have exceeded analyst estimates at about 71 percent of the 110 S&P 500 companies that have reported quarterly results so far, according to data compiled by Bloomberg. Profits are down 0.7 percent for the group.
IBM, GE
U.S. stocks rose for a third day yesterday as earnings at companies from International Business Machines Corp., the biggest computer-services provider, and EBay Inc., the largest Internet marketplace, beat estimates. General Electric Co., the world’s biggest maker of jet engines, power generation equipment and health-care imaging devices, will release its results today.
The euro declined 0.1 percent to $1.2266 per dollar. It was little changed at 96.406 yen and set to complete a fourth weekly drop. The Australian dollar traded 0.3 percent from the highest level in 11 weeks.
The dollar and yen rose against most of their 16 major counterparts as the drop in Asian equities and weaker-than- forecast U.S. data boosted demand for safer assets. U.S. initial jobless claims were higher than estimated, and measures of manufacturing activity and sales of existing homes missed estimates, reports yesterday showed.
Toyota, Toshiba
About seven stocks fell for every four that rose on the MSCI Asia Pacific Index, which is headed for a third weekly advance in four weeks. Carmaker Toyota Motor Corp., which depends on North America for a quarter of its sales, dropped 1.4 percent. Toshiba added 0.7 percent after chipmaking partner SanDisk Corp. posted profits that topped analysts’ estimates.
Hong Kong’s Hang Seng Index climbed 0.2 percent as China Unicom Hong Kong Ltd. and Tencent Holdings Ltd. advanced after mobile phones overtook desktop computers as the most popular Internet portals in China.
Oil traded at $92.06 a barrel after climbing to $92.66 yesterday, the highest close since May 16, on concern increased tension in the Middle East will threaten crude supplies. The Organization of Petroleum Exporting Countries, responsible for about 40 percent of global supplies, will curb exports by 0.9 percent to 23.78 million barrels a day in the four weeks to Aug. 4, compared with 24 million a month earlier, Oil Movements said yesterday in an e-mailed report. "
To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net ;
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
"Asian stocks and the euro declined amid concern Europe’s debt crisis is dragging on global growth and as China pledged to keep curbs on its property market. Oil dropped from the highest level in nine weeks.
The MSCI Asia Pacific Index fell 0.6 percent at 12:41 p.m. in Tokyo as Japan’s Topix Index lost 1.5 percent for its 10th drop in 11 days. The Shanghai Composite Index retreated 0.4 percent and futures on the Standard & Poor’s 500 Index slid 0.3 percent. The euro weakened against most of its 16 major peers and oil declined 0.7 percent. Corn rose 0.7 percent as a U.S. drought threatened supplies.
“For the market, the environment will continue to be quite challenging,” Steven Sun, an equity strategist at HSBC Holdings Plc., said in a Bloomberg Television interview. “Central banks globally are easing monetary policy to lower financial market volatility and avoid downside growth risk.”
China won’t relax property control policies and will instead seek to keep a “firm grip” on the real estate market to prevent a rebound in housing prices, Xinhua News Agency said. At more than half of 760 listed Chinese companies to report results, net income declined from a year earlier, worse than in the first six months of 2009, Societe Generale SA said yesterday.
Earnings at U.S. companies have exceeded analyst estimates at about 71 percent of the 110 S&P 500 companies that have reported quarterly results so far, according to data compiled by Bloomberg. Profits are down 0.7 percent for the group.
IBM, GE
U.S. stocks rose for a third day yesterday as earnings at companies from International Business Machines Corp., the biggest computer-services provider, and EBay Inc., the largest Internet marketplace, beat estimates. General Electric Co., the world’s biggest maker of jet engines, power generation equipment and health-care imaging devices, will release its results today.
The euro declined 0.1 percent to $1.2266 per dollar. It was little changed at 96.406 yen and set to complete a fourth weekly drop. The Australian dollar traded 0.3 percent from the highest level in 11 weeks.
The dollar and yen rose against most of their 16 major counterparts as the drop in Asian equities and weaker-than- forecast U.S. data boosted demand for safer assets. U.S. initial jobless claims were higher than estimated, and measures of manufacturing activity and sales of existing homes missed estimates, reports yesterday showed.
Toyota, Toshiba
About seven stocks fell for every four that rose on the MSCI Asia Pacific Index, which is headed for a third weekly advance in four weeks. Carmaker Toyota Motor Corp., which depends on North America for a quarter of its sales, dropped 1.4 percent. Toshiba added 0.7 percent after chipmaking partner SanDisk Corp. posted profits that topped analysts’ estimates.
Hong Kong’s Hang Seng Index climbed 0.2 percent as China Unicom Hong Kong Ltd. and Tencent Holdings Ltd. advanced after mobile phones overtook desktop computers as the most popular Internet portals in China.
Oil traded at $92.06 a barrel after climbing to $92.66 yesterday, the highest close since May 16, on concern increased tension in the Middle East will threaten crude supplies. The Organization of Petroleum Exporting Countries, responsible for about 40 percent of global supplies, will curb exports by 0.9 percent to 23.78 million barrels a day in the four weeks to Aug. 4, compared with 24 million a month earlier, Oil Movements said yesterday in an e-mailed report. "
To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net ;
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Thursday, 19 July 2012
Asian Stocks & Aussie Market on Stimulus Outlook;
"July 19 (Bloomberg) -- Asian stocks advanced toward the biggest gain this month, South Korea’s won and copper climbed on speculation monetary easing by central banks around the world will spur economic growth. Bond risk in the region fell.
The MSCI Asia Pacific Index rose 1.5 percent at 12:09 p.m. in Tokyo as South Korea’s Kospi index gained 1.9 percent. Standard & Poor’s 500 Index futures added 0.3 percent. The won and Malaysia’s ringgit both advanced 0.4 percent. Copper in London climbed for a second day. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan lost 2 basis points to 163, Credit Agricole SA prices show.
“The market is hoping that some stimulus measures from the U.S. and China are on the table,” said Irene Cheung, a Singapore-based currency strategist at Australia & New Zealand Banking Group. “This will be supportive of risk assets.”
Bond yields in emerging markets are falling to record lows as inflation tumbles compared with benchmark interest rates, providing policy makers with more opportunities to lower borrowing costs. U.S. data today may show first-time claims for jobless benefits rose, boosting prospects the Federal Reserve will increase stimulus measures. Fed Chairman Ben S. Bernanke yesterday outlined options to ease policy further in case the flagging economic recovery fails to lower unemployment.
China has “relatively large” room to boost fiscal spending to support economic growth as its budget deficit is still small and at a reasonable level, a government researcher said. The Bank of England restarted bond purchases this month to aid the economy and said the near-term outlook had “weakened.”
U.S. Housing
U.S. stocks rose for a second day yesterday as housing starts jumped to a four-year high and earnings at companies from Intel Corp. to Honeywell International Inc. beat estimates. Earnings have exceeded analyst estimates at 37 percent of the 51 companies in the S&P 500 that have reported results this month, according to data compiled by Bloomberg. Profits have slumped 5.5 percent for the group.
About four stocks rose for every one that fell on MSCI’s Asia stocks gauge, led by technology and energy shares. BHP Billiton Ltd., Australia’s biggest oil producer, gained 2.5 percent as crude prices exceeded $90 a barrel for the first time since May.
Oil advanced for a seventh day, the longest run of gains since February, after U.S. gasoline stockpiles unexpectedly dropped. Futures rose as much as 0.5 percent to a seven-week high of $90.29 in New York. Gasoline supplies decreased by 1.8 million barrels, according to an Energy Department report. They were projected to climb by 1.2 million, according to a Bloomberg News survey.
Bond Risk
The Markit iTraxx Australia index slid 4 basis points to 172 basis points, according to Westpac Banking Corp. The gauge is set for its lowest close since July 4, according to data provider CMA. The Markit iTraxx Asia index is also headed for its lowest close since July 4 according to CMA.
Consumer price increases in 15 developing nations from Brazil to China slowed to an average 4 percent last month, even as central banks cut the mean policy rate to 5.5 percent. The 1.5 percentage-point gap was the widest since Dec. 18, 2009, two weeks before the JPMorgan GBI-EM Global Diversified Index started an 11 percent rally, the biggest advance in six years.
Slower inflation and weaker economic growth will prompt policy makers to reduce interest rates further, spurring gains in developing-nation bonds, according to GAM Investment and JPMorgan Chase & Co. That’s a turnaround from four years ago, when inflation exceeded benchmark borrowing costs and investors fled emerging markets as the global economy sank into a recession.
“We think the rising tide of monetary accommodation will put a floor under economic activity before the global economy hard lands,” Prakash Sakpal, a Singapore-based economist at ING Groep NV, wrote in a report today.
To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net ; David Yong in Singapore at dyong@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
The MSCI Asia Pacific Index rose 1.5 percent at 12:09 p.m. in Tokyo as South Korea’s Kospi index gained 1.9 percent. Standard & Poor’s 500 Index futures added 0.3 percent. The won and Malaysia’s ringgit both advanced 0.4 percent. Copper in London climbed for a second day. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan lost 2 basis points to 163, Credit Agricole SA prices show.
“The market is hoping that some stimulus measures from the U.S. and China are on the table,” said Irene Cheung, a Singapore-based currency strategist at Australia & New Zealand Banking Group. “This will be supportive of risk assets.”
Bond yields in emerging markets are falling to record lows as inflation tumbles compared with benchmark interest rates, providing policy makers with more opportunities to lower borrowing costs. U.S. data today may show first-time claims for jobless benefits rose, boosting prospects the Federal Reserve will increase stimulus measures. Fed Chairman Ben S. Bernanke yesterday outlined options to ease policy further in case the flagging economic recovery fails to lower unemployment.
China has “relatively large” room to boost fiscal spending to support economic growth as its budget deficit is still small and at a reasonable level, a government researcher said. The Bank of England restarted bond purchases this month to aid the economy and said the near-term outlook had “weakened.”
U.S. Housing
U.S. stocks rose for a second day yesterday as housing starts jumped to a four-year high and earnings at companies from Intel Corp. to Honeywell International Inc. beat estimates. Earnings have exceeded analyst estimates at 37 percent of the 51 companies in the S&P 500 that have reported results this month, according to data compiled by Bloomberg. Profits have slumped 5.5 percent for the group.
About four stocks rose for every one that fell on MSCI’s Asia stocks gauge, led by technology and energy shares. BHP Billiton Ltd., Australia’s biggest oil producer, gained 2.5 percent as crude prices exceeded $90 a barrel for the first time since May.
Oil advanced for a seventh day, the longest run of gains since February, after U.S. gasoline stockpiles unexpectedly dropped. Futures rose as much as 0.5 percent to a seven-week high of $90.29 in New York. Gasoline supplies decreased by 1.8 million barrels, according to an Energy Department report. They were projected to climb by 1.2 million, according to a Bloomberg News survey.
Bond Risk
The Markit iTraxx Australia index slid 4 basis points to 172 basis points, according to Westpac Banking Corp. The gauge is set for its lowest close since July 4, according to data provider CMA. The Markit iTraxx Asia index is also headed for its lowest close since July 4 according to CMA.
Consumer price increases in 15 developing nations from Brazil to China slowed to an average 4 percent last month, even as central banks cut the mean policy rate to 5.5 percent. The 1.5 percentage-point gap was the widest since Dec. 18, 2009, two weeks before the JPMorgan GBI-EM Global Diversified Index started an 11 percent rally, the biggest advance in six years.
Slower inflation and weaker economic growth will prompt policy makers to reduce interest rates further, spurring gains in developing-nation bonds, according to GAM Investment and JPMorgan Chase & Co. That’s a turnaround from four years ago, when inflation exceeded benchmark borrowing costs and investors fled emerging markets as the global economy sank into a recession.
“We think the rising tide of monetary accommodation will put a floor under economic activity before the global economy hard lands,” Prakash Sakpal, a Singapore-based economist at ING Groep NV, wrote in a report today.
To contact the reporters on this story: Glenys Sim in Singapore at gsim4@bloomberg.net ; David Yong in Singapore at dyong@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Tuesday, 17 July 2012
Asian Stocks, Oil Climb on Fed Outlook
July 17 (Bloomberg) --
"Asian stocks advanced for a third day, oil climbed and the Japanese yen weakened as an unexpected drop in U.S. retail sales stoked speculation Federal Reserve Chairman Ben S. Bernanke will hint at further stimulus today.
The MSCI Asia Pacific Index increased 0.5 percent at 11:47 a.m. in Tokyo and Standard & Poor’s 500 Index futures were 0.4 percent stronger. Oil in New York was up 0.3 percent at $88.65 a barrel for a fifth day of gains. The Japanese yen weakened against all 16 of its major peers and was down 0.3 percent to the euro. The South Korean won advanced 0.4 percent.
Bernanke will deliver his semiannual report on the economy and monetary policy before Congress today, after a report yesterday showing a contraction in June retail sales kindled speculation the Fed will introduce more measures to support the world’s largest economy.
“There is market positioning for Bernanke to deliver something today,” said Joseph Capurso, a strategist in Sydney at Commonwealth Bank of Australia, the nation’s biggest lender. “There is a high risk of more policy easing before the end of this year.”
A third monthly drop in U.S. retail sales showed limited employment gains are taking a toll on the biggest part of the economy. The IMF lowered its 2013 forecast for global economic growth yesterday to 3.9 percent from 4.1 percent as Europe’s debt crisis prolongs Spain’s recession and slows expansions in emerging markets from China to India.
The last time corn conditions tumbled for six straight weeks was the period through Sept. 5, 2003, according to the U.S. Department of Agriculture. The most-active contract hit an all-time high of $7.9925 during the food crisis in June 2008.
Precious metals advanced, with gold for immediate delivery up 0.3 percent to $1,594.27 an ounce and spot silver 0.5 percent higher at $27.49 an ounce. Platinum gained 0.7 percent.
Japan’s Nikkei 225 Stock Average increased 0.6 percent after Japanese markets were closed yesterday for a public holiday. South Korea’s Kospi was 0.6 percent stronger, Australia’s S&P/ASX 200 Index climbed 0.8 percent and Hong Kong’s Hang Seng Index rose 1.4 percent.
U.S. Fed
The Dollar Index, which tracks the greenback against the currencies of six U.S. trading partners, fell for a third day, the longest period of losses in a month. The euro rose 0.3 percent to $1.2299 and 97.06 yen.
The Federal Open Market Committee’s June 19 to June 20 meeting debated the need for further stimulus measures, the minutes released July 11 showed. Two participants supported additional bond purchases, while two others said only a further deterioration in the economy would warrant them.
The U.S. economy won’t grow much faster than 2 percent this year, restrained by caution among consumers and businesses, Kansas City Fed President Esther George said yesterday. The economy “is growing slowly for sure and some may characterize it as growing erratically,” George said in a speech in Kansas City, Missouri.
Australian Dollar
The Australian dollar strengthened against all its major peers and was up 0.5 percent to $1.0293. Australia’s central bank kept borrowing costs unchanged this month as domestic job growth and previous interest-rate reductions help the local economy weather global disruptions, minutes of its July 3 policy meeting released today showed.
The cost of insuring corporate and sovereign bonds in Japan and Australia from non-payment increased, according to traders of credit-default swaps. The Markit iTraxx Australia index climbed 2 basis points to 178.5 basis points, Westpac Banking Corp.’s prices show. The Markit iTraxx Japan index added 1.5 basis points from its close last week to 178, Citigroup Inc. prices show. "
To contact Bloomberg News staff for this story: Chua Baizhen in Beijing at bchua14@bloomberg.net
Mini Asian Summary
Asian stocks climb again overnight (MSCI Asia Pacific adding 0.5%) as data released from the U.S. showed an unexpected drop in retail sales and stoked speculation the Fed will hint at further stimulus today in the semi-annual report on the economy and monetary policy.
As crop conditions worsened Corn climbed 1.2% in Chicago. U.S. Consumer price index and industrial production figures are set to be released later today.
Dow and the S&P both closing down 0.2% after SA futures close
Regards
Steven
"Asian stocks advanced for a third day, oil climbed and the Japanese yen weakened as an unexpected drop in U.S. retail sales stoked speculation Federal Reserve Chairman Ben S. Bernanke will hint at further stimulus today.
The MSCI Asia Pacific Index increased 0.5 percent at 11:47 a.m. in Tokyo and Standard & Poor’s 500 Index futures were 0.4 percent stronger. Oil in New York was up 0.3 percent at $88.65 a barrel for a fifth day of gains. The Japanese yen weakened against all 16 of its major peers and was down 0.3 percent to the euro. The South Korean won advanced 0.4 percent.
Bernanke will deliver his semiannual report on the economy and monetary policy before Congress today, after a report yesterday showing a contraction in June retail sales kindled speculation the Fed will introduce more measures to support the world’s largest economy.
“There is market positioning for Bernanke to deliver something today,” said Joseph Capurso, a strategist in Sydney at Commonwealth Bank of Australia, the nation’s biggest lender. “There is a high risk of more policy easing before the end of this year.”
A third monthly drop in U.S. retail sales showed limited employment gains are taking a toll on the biggest part of the economy. The IMF lowered its 2013 forecast for global economic growth yesterday to 3.9 percent from 4.1 percent as Europe’s debt crisis prolongs Spain’s recession and slows expansions in emerging markets from China to India.
The last time corn conditions tumbled for six straight weeks was the period through Sept. 5, 2003, according to the U.S. Department of Agriculture. The most-active contract hit an all-time high of $7.9925 during the food crisis in June 2008.
Precious metals advanced, with gold for immediate delivery up 0.3 percent to $1,594.27 an ounce and spot silver 0.5 percent higher at $27.49 an ounce. Platinum gained 0.7 percent.
Japan’s Nikkei 225 Stock Average increased 0.6 percent after Japanese markets were closed yesterday for a public holiday. South Korea’s Kospi was 0.6 percent stronger, Australia’s S&P/ASX 200 Index climbed 0.8 percent and Hong Kong’s Hang Seng Index rose 1.4 percent.
U.S. Fed
The Dollar Index, which tracks the greenback against the currencies of six U.S. trading partners, fell for a third day, the longest period of losses in a month. The euro rose 0.3 percent to $1.2299 and 97.06 yen.
The Federal Open Market Committee’s June 19 to June 20 meeting debated the need for further stimulus measures, the minutes released July 11 showed. Two participants supported additional bond purchases, while two others said only a further deterioration in the economy would warrant them.
The U.S. economy won’t grow much faster than 2 percent this year, restrained by caution among consumers and businesses, Kansas City Fed President Esther George said yesterday. The economy “is growing slowly for sure and some may characterize it as growing erratically,” George said in a speech in Kansas City, Missouri.
Australian Dollar
The Australian dollar strengthened against all its major peers and was up 0.5 percent to $1.0293. Australia’s central bank kept borrowing costs unchanged this month as domestic job growth and previous interest-rate reductions help the local economy weather global disruptions, minutes of its July 3 policy meeting released today showed.
The cost of insuring corporate and sovereign bonds in Japan and Australia from non-payment increased, according to traders of credit-default swaps. The Markit iTraxx Australia index climbed 2 basis points to 178.5 basis points, Westpac Banking Corp.’s prices show. The Markit iTraxx Japan index added 1.5 basis points from its close last week to 178, Citigroup Inc. prices show. "
To contact Bloomberg News staff for this story: Chua Baizhen in Beijing at bchua14@bloomberg.net
Mini Asian Summary
Asian stocks climb again overnight (MSCI Asia Pacific adding 0.5%) as data released from the U.S. showed an unexpected drop in retail sales and stoked speculation the Fed will hint at further stimulus today in the semi-annual report on the economy and monetary policy.
As crop conditions worsened Corn climbed 1.2% in Chicago. U.S. Consumer price index and industrial production figures are set to be released later today.
Dow and the S&P both closing down 0.2% after SA futures close
Regards
Steven
Thursday, 12 July 2012
Asian Stocks Fall for Sixth Day on Growth Concern; Won Tumbles
"July 12 (Bloomberg) -- Asian stocks fell for a sixth day as South Korea unexpectedly cut interest rates and Australia’s jobless rate rose, adding to concern the global economic slowdown is deepening. The won and the Australian dollar slid.
The MSCI Asia Pacific Index dropped 1.2 percent as of 1:21 p.m. in Tokyo, heading for the longest losing streak in two months. The Nikkei 225 Stock Average retreated 1.3 percent. Futures on the Standard & Poor’s 500 Index declined 0.3 percent. The won touched a two-week low against the dollar, while the so- called Aussie sank 0.7 percent. The yen rallied against all 16 of its major peers after the Bank of Japan kept its benchmark interest rates unchanged.
Australian employers unexpectedly cut payrolls in June while a report today may show manufacturing output in the euro region remained stagnant in May. Chinese companies from Cosco Shipping Co. to Dongfeng Automobile Co. reported slumping profit before the country releases economic data tomorrow. A few U.S. Federal Reserve policy makers said the central bank will probably need to take more action to boost the labor market, according to minutes of their meeting.
“The global economy is deteriorating faster than central banks can ease policy,” said Tomomi Yamashita, a senior fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6.3 billion. “Your best bet is to hold on to cash.”
Rate Cuts
Governor Kim Choong Soo and his board at the central bank lowered the benchmark seven-day repurchase rate by 25 basis points to 3 percent, the first cut since February 2009, the central bank said today. Two of 16 economists surveyed by Bloomberg News predicted the move. Brazil cut its benchmark interest rate for an eighth straight time late yesterday.
Japan’s central bank kept its benchmark interest rates between zero and 0.1 percent and monthly bond purchases at 1.8 trillion yen ($22.7 billion), the bank said in the statement today.
Almost four stocks fell for each one that rose on MSCI’s Asian Pacific gauge, which is extending a five-day, 2.3 percent decline. Commodity producers and technology companies reliant on discretionary spending by consumers led losses. Infosys Ltd., India’s second-largest software exporter, tumbled 10 percent after cutting its dollar sales forecast.
The Hang Seng China Enterprises Index sank 1.9 percent, heading for its lowest close since October.
China’s economy grew 7.7 percent in the three months through June from a year earlier, according to a Bloomberg poll. That compares with an 8.1 percent increase in the previous quarter.
Australian Jobless
The won dropped 0.7 percent to 1,149.15 per dollar, while the Australian dollar slid 0.7 percent to $1.0180.
The number of people employed fell by 27,000, almost erasing a revised 27,800 gain in May, Australia’s statistics bureau said in Sydney today. The jobless rate rose for a second month, to 5.2 percent from 5.1 percent.
The yen rose 0.3 percent to 79.49 per dollar. The Bank of Japan increased its asset purchase program for a third time this year by 5 trillion yen to 45 trillion yen, while cutting the size of a credit loan facility by the same amount to 25 trillion yen.
Industrial production in the euro area probably failed to grow in May after two months of decline, according to the median estimate of economists in a Bloomberg survey before the European Union’s statistics office publishes the data today.
-- With assistance from Kana Nishizawa in Hong Kong. Editors: Shelley Smith, Alexander Kwiatkowski "
"Asian stocks descending overnight (MSCI Asia Pacific falling 1.2%) after South Korea unexpectedly cut interest rates and Brazil cut it's benchmark interest rate for an eighth straight time.
Data reported from Australia showed jobless rate rose.
Dow closed down 0.12% and the S&P virtually unchanged after the SA futures close"
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
The MSCI Asia Pacific Index dropped 1.2 percent as of 1:21 p.m. in Tokyo, heading for the longest losing streak in two months. The Nikkei 225 Stock Average retreated 1.3 percent. Futures on the Standard & Poor’s 500 Index declined 0.3 percent. The won touched a two-week low against the dollar, while the so- called Aussie sank 0.7 percent. The yen rallied against all 16 of its major peers after the Bank of Japan kept its benchmark interest rates unchanged.
Australian employers unexpectedly cut payrolls in June while a report today may show manufacturing output in the euro region remained stagnant in May. Chinese companies from Cosco Shipping Co. to Dongfeng Automobile Co. reported slumping profit before the country releases economic data tomorrow. A few U.S. Federal Reserve policy makers said the central bank will probably need to take more action to boost the labor market, according to minutes of their meeting.
“The global economy is deteriorating faster than central banks can ease policy,” said Tomomi Yamashita, a senior fund manager in Tokyo at Shinkin Asset Management Co., which oversees about $6.3 billion. “Your best bet is to hold on to cash.”
Rate Cuts
Governor Kim Choong Soo and his board at the central bank lowered the benchmark seven-day repurchase rate by 25 basis points to 3 percent, the first cut since February 2009, the central bank said today. Two of 16 economists surveyed by Bloomberg News predicted the move. Brazil cut its benchmark interest rate for an eighth straight time late yesterday.
Japan’s central bank kept its benchmark interest rates between zero and 0.1 percent and monthly bond purchases at 1.8 trillion yen ($22.7 billion), the bank said in the statement today.
Almost four stocks fell for each one that rose on MSCI’s Asian Pacific gauge, which is extending a five-day, 2.3 percent decline. Commodity producers and technology companies reliant on discretionary spending by consumers led losses. Infosys Ltd., India’s second-largest software exporter, tumbled 10 percent after cutting its dollar sales forecast.
The Hang Seng China Enterprises Index sank 1.9 percent, heading for its lowest close since October.
China’s economy grew 7.7 percent in the three months through June from a year earlier, according to a Bloomberg poll. That compares with an 8.1 percent increase in the previous quarter.
Australian Jobless
The won dropped 0.7 percent to 1,149.15 per dollar, while the Australian dollar slid 0.7 percent to $1.0180.
The number of people employed fell by 27,000, almost erasing a revised 27,800 gain in May, Australia’s statistics bureau said in Sydney today. The jobless rate rose for a second month, to 5.2 percent from 5.1 percent.
The yen rose 0.3 percent to 79.49 per dollar. The Bank of Japan increased its asset purchase program for a third time this year by 5 trillion yen to 45 trillion yen, while cutting the size of a credit loan facility by the same amount to 25 trillion yen.
Industrial production in the euro area probably failed to grow in May after two months of decline, according to the median estimate of economists in a Bloomberg survey before the European Union’s statistics office publishes the data today.
-- With assistance from Kana Nishizawa in Hong Kong. Editors: Shelley Smith, Alexander Kwiatkowski "
"Asian stocks descending overnight (MSCI Asia Pacific falling 1.2%) after South Korea unexpectedly cut interest rates and Brazil cut it's benchmark interest rate for an eighth straight time.
Data reported from Australia showed jobless rate rose.
Dow closed down 0.12% and the S&P virtually unchanged after the SA futures close"
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Wednesday, 11 July 2012
Asian Stocks Drop for Fifth Day on Growth Concern; Yen Advances
REF : BLOOMBERG
"July 11 (Bloomberg) -- Asian stocks declined for a fifth day, rubber dropped and the yen rose on concern slowing global growth will reduce demand for products from computer chips to air travel.
The MSCI Asia Pacific Index fell 0.3 percent as of 8:14 a.m. in Tokyo, heading for its longest losing streak since May. The Nikkei 225 Stock Average slid 0.5 percent, while futures on the Standard & Poor’s 500 Index were little changed. Rubber dropped 0.4 percent in Tokyo market while oil rose after slumping 2.4 percent yesterday. The yen strengthened against all 16 of its major peers.
Applied Materials Inc., the chipmaking-equipment provider, reduced its fiscal 2012 sales and profit forecasts amid weakness in Europe, China and the personal-computer market. China Southern Airlines Co., the nation’s biggest carrier by passengers, said first-half profit may fall more than 50 percent because of slowing economic growth and higher jet fuel prices.
To contact the reporter on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net "
Also quick Asian Summary 11 July 2012.
Asian stocks decline for a fifth day (MSCI Asia Pacific sliding 0.1%) on the continuing concern the slowing global economy will curb earnings growth. Commodities a mixed bag sees Oil gain 0.9% and Rubber losing 1.1%. Mondi group plans to acquire 93.4% of Nordenia International. Dow closes down 0.77% and the S&P declines 0.65% after SA futures close.
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
"July 11 (Bloomberg) -- Asian stocks declined for a fifth day, rubber dropped and the yen rose on concern slowing global growth will reduce demand for products from computer chips to air travel.
The MSCI Asia Pacific Index fell 0.3 percent as of 8:14 a.m. in Tokyo, heading for its longest losing streak since May. The Nikkei 225 Stock Average slid 0.5 percent, while futures on the Standard & Poor’s 500 Index were little changed. Rubber dropped 0.4 percent in Tokyo market while oil rose after slumping 2.4 percent yesterday. The yen strengthened against all 16 of its major peers.
Applied Materials Inc., the chipmaking-equipment provider, reduced its fiscal 2012 sales and profit forecasts amid weakness in Europe, China and the personal-computer market. China Southern Airlines Co., the nation’s biggest carrier by passengers, said first-half profit may fall more than 50 percent because of slowing economic growth and higher jet fuel prices.
To contact the reporter on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net "
Also quick Asian Summary 11 July 2012.
Asian stocks decline for a fifth day (MSCI Asia Pacific sliding 0.1%) on the continuing concern the slowing global economy will curb earnings growth. Commodities a mixed bag sees Oil gain 0.9% and Rubber losing 1.1%. Mondi group plans to acquire 93.4% of Nordenia International. Dow closes down 0.77% and the S&P declines 0.65% after SA futures close.
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Richard Haass - Beware old troubles in the new Egypt
FT .com
"We are now a year and a half into what many persist in calling the Arab Spring even though there is no end in sight to the turbulence and it is hardly certain to have a happy ending.
Nowhere is this more the case than in Egypt, the most populous and by many measures the most important country in the Middle East."
"We are now a year and a half into what many persist in calling the Arab Spring even though there is no end in sight to the turbulence and it is hardly certain to have a happy ending.
Nowhere is this more the case than in Egypt, the most populous and by many measures the most important country in the Middle East."
Tuesday, 10 July 2012
Why the US recovery remains weak !!
FT.com - Roger Altman
Three full years have now passed since the trough of the recession.
But the US grew at only 1.9% and an estimated 1.5% for the first and second quarters of this year, respectively.
For the full year, the consensus estimate is only 2%.
Such figures, well below the economy’s long run growth potential, are just not good enough to offset population growth and improve labour markets.
Steven
Steven Morris Chartered Accountant (SA)
3 Bickley Road
Sea Point
Cape Town
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Three full years have now passed since the trough of the recession.
But the US grew at only 1.9% and an estimated 1.5% for the first and second quarters of this year, respectively.
For the full year, the consensus estimate is only 2%.
Such figures, well below the economy’s long run growth potential, are just not good enough to offset population growth and improve labour markets.
Steven
Steven Morris Chartered Accountant (SA)
3 Bickley Road
Sea Point
Cape Town
8005
Mobile :+27 83 943 1858
Facsimile : 0866 712 498
E-mail : steven@global.co.za
Website : www.stevenmorris.co.za
ASIA - 10 July 2012
Asian stocks falling overnight (MSCI Asia Pacific losing 0.3%) after China's imports rose less than expected whilst export growth slowed.
Oil fell 1.1% as Norway ended an energy strike.
ECB President Mario Draghi said the bank may be open to another rate cut if the economic outlook warrants it, when he addressed lawmakers in Brussels yesterday.
Dow closing up 0.22% and the S&P the same.
Oil fell 1.1% as Norway ended an energy strike.
ECB President Mario Draghi said the bank may be open to another rate cut if the economic outlook warrants it, when he addressed lawmakers in Brussels yesterday.
Dow closing up 0.22% and the S&P the same.
European Futures, Asian Stocks Drop on China Data
July 10 (Bloomberg) --
"European stock futures dropped and Asian shares fell for a fourth day as Chinese trade data added to signs of slowing economic growth. The Australian dollar weakened and oil slumped as Norway halted an energy strike.
Futures on the Euro Stoxx 50 Index declined 0.1 percent at 7:05 a.m. in London, while those for the Standard & Poor’s 500 Index slid 0.3 percent. The MSCI Asia Pacific Index dropped 0.4 percent. The so-called Aussie retreated against 14 of its 16 major peers. The euro fell toward the lowest level in two years before reports forecast to show manufacturing is shrinking in France and Italy. Oil fell 1.3 percent in New York, while corn retreated from its highest level in 10 months.
China’s imports rose less than anticipated in June while export growth slowed, data from the customs bureau showed today. European governments will jump-start as much as 100 billion euros ($123 billion) in loans to shore up Spain’s banks, Luxembourg Prime Minister Jean-Claude Juncker said after chairing a nine-hour meeting of euro-region finance ministers.
“The market is getting even more cautious as people worry about a further deterioration in the macro-economic picture,” Benjamin Tam, who helps manage about $1.5 billion at IG Investment in Hong Kong, said in a phone interview. “The trade data was pretty weak and weaker than the market expected. I don’t see a significant change in the macro environment any time soon, and we’re waiting for bigger collective measures from the authorities.”
China Concern
Commodity producers were among the biggest losers on MSCI’s Asian equities gauge today, with BHP Billiton Ltd., the world’s biggest mining company, dropping 0.9 percent in Sydney and Newcrest Mining Ltd. falling the most in three weeks. Stocks in Asia tumbled 1.5 percent yesterday as Chinese Premier Wen Jiabao said the nation’s economy faces “relatively large” downward pressure.
China’s imports increased 6.3 percent last month from a year earlier, compared with the 11 percent median estimate in a Bloomberg News economist survey. Exports slowed to 11.3 percent from 15.3 percent. Business confidence in Australia, which counts China as its biggest trading partner, fell to a 10-month low in June, a private survey showed today.
The Hang Seng China Enterprises Index sank 0.5 percent in Hong Kong and Taiwan’s Taiex Index fell 0.8 percent. Today’s data add to signs of flagging momentum in the world’s biggest exporter as Europe’s debt crisis curbs foreign sales and China’s property controls restrain domestic demand.
Juncker told reporters 30 billion euros will be lent to Spanish banks by the end of July with the goal of eventually using the euro-area bailout fund to recapitalize lenders directly instead of saddling the nation’s government with the debt.
EU Pragmatic
“It’s positive progress showing that the European Union is moving towards a banking union,” Norman Chan, head of investment at Calibre Asset Management Ltd., a unit of National Australia Bank Ltd., said in an interview with Bloomberg Television. “It shows the EU is being pragmatic.”
Data today may show French industrial production dropped 1 percent in May from the previous month, when it climbed 1.5 percent, according to the median estimate in a Bloomberg survey. A separate poll showed industrial output in Italy may have fallen 0.6 percent in the same period after weakening 1.9 percent in April.
European Central Bank President Mario Draghi signaled the bank may be open to another interest-rate cut if the economic outlook warrants it, when he addressed lawmakers in Brussels yesterday. The ECB lowered the main refinancing rate to a record 0.75 percent and cut the deposit rate to zero on July 5.
Dollar Parity
The euro fell 0.2 percent to $1.2289, while the Australian currency depreciated 0.3 percent to $1.0174.
“The concern is that slower Chinese growth is going to be a negative factor for Australia,” said Todd Elmer, head of Group-of-10 currency strategy for Asia excluding Japan at Citigroup Inc. in Singapore.
The Aussie will weaken to end a year below $1 for the first time since 2009 as the slowing global economy damps prices for the nation’s commodity exports, according to National Australia Bank Ltd., the currency’s most accurate forecaster.
Oil dropped to $84.88 a barrel. The Norwegian government ordered compulsory arbitration, preventing a lockout of platform workers that was scheduled to start at midnight yesterday. Norway pumped 1.63 million barrels of oil a day in May, or about 1.8 percent of global consumption, data from the Norwegian Petroleum Directorate show.
Corn futures dropped 1.1 percent to $7.22 a bushel in Chicago after gaining yesterday to the highest level since September as drought damaged the U.S. crop.
About 40 percent of the corn crop was in good or excellent condition as of July 8, down from 48 percent a week earlier and the lowest level for this time of year since a drought in 1988, the U.S. Department of Agriculture said yesterday. Drought now covers more than half the contiguous 48 U.S. states.
To contact the reporters on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net ; Adam Haigh in Sydney at ahaigh1@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
"European stock futures dropped and Asian shares fell for a fourth day as Chinese trade data added to signs of slowing economic growth. The Australian dollar weakened and oil slumped as Norway halted an energy strike.
Futures on the Euro Stoxx 50 Index declined 0.1 percent at 7:05 a.m. in London, while those for the Standard & Poor’s 500 Index slid 0.3 percent. The MSCI Asia Pacific Index dropped 0.4 percent. The so-called Aussie retreated against 14 of its 16 major peers. The euro fell toward the lowest level in two years before reports forecast to show manufacturing is shrinking in France and Italy. Oil fell 1.3 percent in New York, while corn retreated from its highest level in 10 months.
China’s imports rose less than anticipated in June while export growth slowed, data from the customs bureau showed today. European governments will jump-start as much as 100 billion euros ($123 billion) in loans to shore up Spain’s banks, Luxembourg Prime Minister Jean-Claude Juncker said after chairing a nine-hour meeting of euro-region finance ministers.
“The market is getting even more cautious as people worry about a further deterioration in the macro-economic picture,” Benjamin Tam, who helps manage about $1.5 billion at IG Investment in Hong Kong, said in a phone interview. “The trade data was pretty weak and weaker than the market expected. I don’t see a significant change in the macro environment any time soon, and we’re waiting for bigger collective measures from the authorities.”
China Concern
Commodity producers were among the biggest losers on MSCI’s Asian equities gauge today, with BHP Billiton Ltd., the world’s biggest mining company, dropping 0.9 percent in Sydney and Newcrest Mining Ltd. falling the most in three weeks. Stocks in Asia tumbled 1.5 percent yesterday as Chinese Premier Wen Jiabao said the nation’s economy faces “relatively large” downward pressure.
China’s imports increased 6.3 percent last month from a year earlier, compared with the 11 percent median estimate in a Bloomberg News economist survey. Exports slowed to 11.3 percent from 15.3 percent. Business confidence in Australia, which counts China as its biggest trading partner, fell to a 10-month low in June, a private survey showed today.
The Hang Seng China Enterprises Index sank 0.5 percent in Hong Kong and Taiwan’s Taiex Index fell 0.8 percent. Today’s data add to signs of flagging momentum in the world’s biggest exporter as Europe’s debt crisis curbs foreign sales and China’s property controls restrain domestic demand.
Juncker told reporters 30 billion euros will be lent to Spanish banks by the end of July with the goal of eventually using the euro-area bailout fund to recapitalize lenders directly instead of saddling the nation’s government with the debt.
EU Pragmatic
“It’s positive progress showing that the European Union is moving towards a banking union,” Norman Chan, head of investment at Calibre Asset Management Ltd., a unit of National Australia Bank Ltd., said in an interview with Bloomberg Television. “It shows the EU is being pragmatic.”
Data today may show French industrial production dropped 1 percent in May from the previous month, when it climbed 1.5 percent, according to the median estimate in a Bloomberg survey. A separate poll showed industrial output in Italy may have fallen 0.6 percent in the same period after weakening 1.9 percent in April.
European Central Bank President Mario Draghi signaled the bank may be open to another interest-rate cut if the economic outlook warrants it, when he addressed lawmakers in Brussels yesterday. The ECB lowered the main refinancing rate to a record 0.75 percent and cut the deposit rate to zero on July 5.
Dollar Parity
The euro fell 0.2 percent to $1.2289, while the Australian currency depreciated 0.3 percent to $1.0174.
“The concern is that slower Chinese growth is going to be a negative factor for Australia,” said Todd Elmer, head of Group-of-10 currency strategy for Asia excluding Japan at Citigroup Inc. in Singapore.
The Aussie will weaken to end a year below $1 for the first time since 2009 as the slowing global economy damps prices for the nation’s commodity exports, according to National Australia Bank Ltd., the currency’s most accurate forecaster.
Oil dropped to $84.88 a barrel. The Norwegian government ordered compulsory arbitration, preventing a lockout of platform workers that was scheduled to start at midnight yesterday. Norway pumped 1.63 million barrels of oil a day in May, or about 1.8 percent of global consumption, data from the Norwegian Petroleum Directorate show.
Corn futures dropped 1.1 percent to $7.22 a bushel in Chicago after gaining yesterday to the highest level since September as drought damaged the U.S. crop.
About 40 percent of the corn crop was in good or excellent condition as of July 8, down from 48 percent a week earlier and the lowest level for this time of year since a drought in 1988, the U.S. Department of Agriculture said yesterday. Drought now covers more than half the contiguous 48 U.S. states.
To contact the reporters on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net ; Adam Haigh in Sydney at ahaigh1@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Monday, 9 July 2012
9 July 2012 - Summary from Asia
Asian stocks fell, (MSCI Asia Pacific Index fell 1.4%) with the regional benchmark index headed for the biggest slide in a month.
BHP slid 2% as metal prices dropped following the US jobs report showing hiring isn't increasing fast enough to lower the unemployment rate.
The World's most accurate foreign exchange strategists say the worst os over for the Euro this year, putting them at odds with traders who see more pain as the economy shrinks.
BHP slid 2% as metal prices dropped following the US jobs report showing hiring isn't increasing fast enough to lower the unemployment rate.
The World's most accurate foreign exchange strategists say the worst os over for the Euro this year, putting them at odds with traders who see more pain as the economy shrinks.
Friday, 6 July 2012
Breaking News - US economy adds 80,000 jobs in June - Still a slow down
Breaking News
US economy adds 80,000 jobs in June
The US economy added 80,000 jobs in June, disappointing hopes of an acceleration in payroll formation. The lower-than-expected figure points to a continuation of the slowdown in the world's biggest economy seen in recent months amid eurozone turmoil.The unemployment rate was unchanged at 8.2 per cent
Thursday, 5 July 2012
Diamond Apologizes for ‘Reprehensible’ Barclays Libor Behavior
July 4 (Bloomberg) --
"Robert Diamond, who quit yesterday as chief executive officer of Barclays Plc, apologized for the “reprehensible” behavior at the bank that led to record fines for rigging interest rates.
“Clearly there were mistakes,” Diamond, 60, said in testimony before Parliament’s Treasury Select Committee in London today. “Clearly there was behavior that was reprehensible.”
Barclays, the U.K.’s second-largest bank by assets, was fined a record 290 million pounds ($453.4 million) on June 25 for rigging the London interbank offered rate. Lawmakers are trying to determine what Diamond knew about disclosures last week that Barclays tried to manipulate the benchmark for profit and to mask its difficulty borrowing money during the credit crisis.
Diamond said the backlash that has led to the resignations of senior managers and erased $5 billion from the London-based bank’s market value is a consequence of the lender being the first sanctioned for rigging interest rates.
“There has been an unfortunate series of events in the last week in the fact that Barclays was identified as the first bank,” Diamond said. It became “clear to me” by July 2 that he had lost the support of regulators to remain CEO, he said.
‘Physically Ill’
The conduct was limited to 14 traders within a bank that employs about 2,000 traders, Diamond said. Regulators released e-mails from those traders a week ago describing their actions. The behavior has been dealt with and “eradicated,” he said.
“When I read the e-mails from those traders, I got physically ill,” he said.
Barclays has defended itself by detailing its attempts to warn regulators about competitors’ misconduct and by providing documents suggesting the U.K. government pressed it to lower its Libor submissions during the 2008 financial crisis.
The settlements with the U.K. Financial Services Authority, the U.S. Commodity Futures Trading Commission and the U.S. Justice Department resolved claims going back to 2005 that Barclays derivatives traders requested false Libor submissions to benefit swap and futures positions tied to the rate.
The regulators also said senior Barclays managers told staff to submit artificially low rates from August 2007 until 2009.
The Barclays accord was the first in an investigation by regulators around the globe that has ensnared at least 12 banks, including Citigroup Inc., HSBC Holdings Plc, UBS AG, Credit Suisse Group AG and Royal Bank of Scotland Group Plc.
Learned This Month
In addition to Diamond, the Libor scandal has triggered the resignations of Barclays Chairman Marcus Agius, 65, and Chief Operating Officer Jerry Del Missier, 50.
Libor is calculated by a survey of banks’ daily estimates of how much it would cost them to borrow from one another for different time frames and in different currencies. Because submissions aren’t based on real trades, the potential exists for the benchmark to be manipulated by traders seeking to profit from where the rate is set.
Diamond, in his testimony today, said he didn’t learn that Barclays’s Libor setters submitted artificially low rates during the financial crisis until “this month.” The fines were announced last week, at the end of June.
Barclays released a statement yesterday before the hearing that said it “repeatedly raised concerns” with regulators over “an extended period” about how banks were lowering their Libor quotes in 2007 amid investor concern about the health of lenders and in 2008 after the failure of Lehman Brothers Holdings Inc.
Differentiating Conduct
Barclays also tried to differentiate the submission of low rates during the financial crisis from the conduct of its swaps traders, which the bank called “an attempt to manipulate ultimate reference rates.” Many of the traders who tried to rig Libor no longer work at Barclays and “certain” traders who remain employed at the bank have had their bonuses withheld, according to the statement.
Barclays said it has conducted an “exhaustive” internal investigation over three years that cost almost 100 million pounds. The bank reviewed 22 million documents, listened to one million audio files and conducted more than 75 interviews, the statement said. The results of the probe were shared with regulators, who then conducted additional interviews and made their own requests for documents, Barclays said.
Barclays also released notes the bank said were written by Diamond following an Oct. 29, 2008 phone conversation he had with Paul Tucker, now deputy governor of the Bank of England.
Tucker Call
Tucker called Diamond to inform the banker that “senior” Whitehall officials had asked why Barclays’ Libor submissions were always at the “top end.” Diamond asked Tucker to tell the officials that not all banks were providing quotes that represented the true level at which they could borrow money.
Tucker told Diamond that Barclays’s submissions didn’t always need to be as high as they had been recently, according to Diamond’s note.
The conversation between Diamond and Tucker was passed on to Del Missier, who misinterpreted it as the government granting Barclays permission to offer lower quotes, according to Barclays.
Diamond, in his testimony, said he doesn’t believe government officials wanted Barclays to “fiddle” with its Libor submissions. Diamond added that at the time he and Tucker discussed Libor there was a concern that the market might conclude Barclays needed to be nationalized by the government. Barclays had no difficulty accessing funding, he said.
Trader E-Mails
Tucker today made a request to appear before Parliament “as soon as possible” to give evidence on Libor, according to a statement released by the Bank of England.
On Sept 13, 2006, a Barclays trader in New York e-mailed the person who submitted the rate, “Hi Guys, We got a big position in 3m libor for the next 3 days. Can we please keep the lib or fixing at 5.39 for the next few days. It would really help,” according to the bank’s CFTC settlement.
In another exchange, from April 7, 2006, a submitter responded to a request for low U.S. dollar Libor submissions from a swaps trader with “Done ... for you big boy,” the CFTC said.
Those emails do “not represent the Barclays that I know and I love,” Diamond said.
To contact the reporters on this story: Jesse Westbrook in London at jwestbrook1@bloomberg.net ; Liam Vaughan in London at lvaughan6@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
"Robert Diamond, who quit yesterday as chief executive officer of Barclays Plc, apologized for the “reprehensible” behavior at the bank that led to record fines for rigging interest rates.
“Clearly there were mistakes,” Diamond, 60, said in testimony before Parliament’s Treasury Select Committee in London today. “Clearly there was behavior that was reprehensible.”
Barclays, the U.K.’s second-largest bank by assets, was fined a record 290 million pounds ($453.4 million) on June 25 for rigging the London interbank offered rate. Lawmakers are trying to determine what Diamond knew about disclosures last week that Barclays tried to manipulate the benchmark for profit and to mask its difficulty borrowing money during the credit crisis.
Diamond said the backlash that has led to the resignations of senior managers and erased $5 billion from the London-based bank’s market value is a consequence of the lender being the first sanctioned for rigging interest rates.
“There has been an unfortunate series of events in the last week in the fact that Barclays was identified as the first bank,” Diamond said. It became “clear to me” by July 2 that he had lost the support of regulators to remain CEO, he said.
‘Physically Ill’
The conduct was limited to 14 traders within a bank that employs about 2,000 traders, Diamond said. Regulators released e-mails from those traders a week ago describing their actions. The behavior has been dealt with and “eradicated,” he said.
“When I read the e-mails from those traders, I got physically ill,” he said.
Barclays has defended itself by detailing its attempts to warn regulators about competitors’ misconduct and by providing documents suggesting the U.K. government pressed it to lower its Libor submissions during the 2008 financial crisis.
The settlements with the U.K. Financial Services Authority, the U.S. Commodity Futures Trading Commission and the U.S. Justice Department resolved claims going back to 2005 that Barclays derivatives traders requested false Libor submissions to benefit swap and futures positions tied to the rate.
The regulators also said senior Barclays managers told staff to submit artificially low rates from August 2007 until 2009.
The Barclays accord was the first in an investigation by regulators around the globe that has ensnared at least 12 banks, including Citigroup Inc., HSBC Holdings Plc, UBS AG, Credit Suisse Group AG and Royal Bank of Scotland Group Plc.
Learned This Month
In addition to Diamond, the Libor scandal has triggered the resignations of Barclays Chairman Marcus Agius, 65, and Chief Operating Officer Jerry Del Missier, 50.
Libor is calculated by a survey of banks’ daily estimates of how much it would cost them to borrow from one another for different time frames and in different currencies. Because submissions aren’t based on real trades, the potential exists for the benchmark to be manipulated by traders seeking to profit from where the rate is set.
Diamond, in his testimony today, said he didn’t learn that Barclays’s Libor setters submitted artificially low rates during the financial crisis until “this month.” The fines were announced last week, at the end of June.
Barclays released a statement yesterday before the hearing that said it “repeatedly raised concerns” with regulators over “an extended period” about how banks were lowering their Libor quotes in 2007 amid investor concern about the health of lenders and in 2008 after the failure of Lehman Brothers Holdings Inc.
Differentiating Conduct
Barclays also tried to differentiate the submission of low rates during the financial crisis from the conduct of its swaps traders, which the bank called “an attempt to manipulate ultimate reference rates.” Many of the traders who tried to rig Libor no longer work at Barclays and “certain” traders who remain employed at the bank have had their bonuses withheld, according to the statement.
Barclays said it has conducted an “exhaustive” internal investigation over three years that cost almost 100 million pounds. The bank reviewed 22 million documents, listened to one million audio files and conducted more than 75 interviews, the statement said. The results of the probe were shared with regulators, who then conducted additional interviews and made their own requests for documents, Barclays said.
Barclays also released notes the bank said were written by Diamond following an Oct. 29, 2008 phone conversation he had with Paul Tucker, now deputy governor of the Bank of England.
Tucker Call
Tucker called Diamond to inform the banker that “senior” Whitehall officials had asked why Barclays’ Libor submissions were always at the “top end.” Diamond asked Tucker to tell the officials that not all banks were providing quotes that represented the true level at which they could borrow money.
Tucker told Diamond that Barclays’s submissions didn’t always need to be as high as they had been recently, according to Diamond’s note.
The conversation between Diamond and Tucker was passed on to Del Missier, who misinterpreted it as the government granting Barclays permission to offer lower quotes, according to Barclays.
Diamond, in his testimony, said he doesn’t believe government officials wanted Barclays to “fiddle” with its Libor submissions. Diamond added that at the time he and Tucker discussed Libor there was a concern that the market might conclude Barclays needed to be nationalized by the government. Barclays had no difficulty accessing funding, he said.
Trader E-Mails
Tucker today made a request to appear before Parliament “as soon as possible” to give evidence on Libor, according to a statement released by the Bank of England.
On Sept 13, 2006, a Barclays trader in New York e-mailed the person who submitted the rate, “Hi Guys, We got a big position in 3m libor for the next 3 days. Can we please keep the lib or fixing at 5.39 for the next few days. It would really help,” according to the bank’s CFTC settlement.
In another exchange, from April 7, 2006, a submitter responded to a request for low U.S. dollar Libor submissions from a swaps trader with “Done ... for you big boy,” the CFTC said.
Those emails do “not represent the Barclays that I know and I love,” Diamond said.
To contact the reporters on this story: Jesse Westbrook in London at jwestbrook1@bloomberg.net ; Liam Vaughan in London at lvaughan6@bloomberg.net "
Steven
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Wednesday, 4 July 2012
Breaking News from Reuters - Barclays, Diamond pay
Reuters -
What if Barclays hadn't lowered Libor submissions?
The bank certainly reduced its vulnerability by submitting lower rates mid-crisis. What would honesty have cost? Would Barclays have secured funds from Middle East investors, avoided nationalisation and protected bonuses? No one knows, but the timeline is suggestive.
Diamond should exit Barclays with decorum not cash
The UK bank’s new ex-CEO could collect as much as 30 mln stg after his forced resignation. The lawyers and the board can argue about entitlements and ethics, but in the long term Diamond might well be better off financially if he agrees to leave empty handed.
What if Barclays hadn't lowered Libor submissions?
The bank certainly reduced its vulnerability by submitting lower rates mid-crisis. What would honesty have cost? Would Barclays have secured funds from Middle East investors, avoided nationalisation and protected bonuses? No one knows, but the timeline is suggestive.
Diamond should exit Barclays with decorum not cash
The UK bank’s new ex-CEO could collect as much as 30 mln stg after his forced resignation. The lawyers and the board can argue about entitlements and ethics, but in the long term Diamond might well be better off financially if he agrees to leave empty handed.
ECO DATA - 4 July 2012
MARKET MONITOR
"Asian stocks rising overnight (MSCI Asia Pacific adding 0.5%) on further speculation central bankers in China and Europe will ease monetary policy.
Rubber advanced 3.3% as U.S. factory orders and auto sales beat estimates.
BHP Billiton rose more than 2% as a surge in the past week boosted the earnings outlook.
Manchester United filed to raise $100 million in a U.S. initial public offering.
Both the S&P and the Dow closed unchanged after SA futures close.
U.S. markets are closed today for the Fourth of July holiday."
• Brent crude slipped, but stayed above $100 per barrel as weak global economic data fuelled expectations of a stimulus response by central banks, and rising tension over Iran's nuclear programme fed worries about supply disruption.
• The euro inched lower on bond redemption-related selling, with some investors stuck on the sidelines for the U.S. market holiday, while others took positions before a European Central Bank policy meeting on Thursday
• London copper edged down as investors locked in recent steep gains, waiting for more signs from central banks to revive a faltering global economy that has dented demand for industrial metals.
• Gold hovered near a two-week high, helped by hopes central banks will ease monetary policy in a bid to nurture a fragile recovery in the global economy.
• Asian shares rose to a seven-week high as investors kept hopes high for more monetary policy stimulus to support the faltering global economy, starting with a likely rate cut by the European Central Bank. European stock index futures pointed to a slightly lower open, with investors seen taking some profits from two-month highs ahead of policy meetings of the European Central Bank and the Bank of England on Thursday. U.S. stocks extended a rally for a third day on Tuesday as sharp gains in oil prices lifted energy shares and traders factored in increased expectations for central bank stimulus."
"Asian stocks rising overnight (MSCI Asia Pacific adding 0.5%) on further speculation central bankers in China and Europe will ease monetary policy.
Rubber advanced 3.3% as U.S. factory orders and auto sales beat estimates.
BHP Billiton rose more than 2% as a surge in the past week boosted the earnings outlook.
Manchester United filed to raise $100 million in a U.S. initial public offering.
Both the S&P and the Dow closed unchanged after SA futures close.
U.S. markets are closed today for the Fourth of July holiday."
• Brent crude slipped, but stayed above $100 per barrel as weak global economic data fuelled expectations of a stimulus response by central banks, and rising tension over Iran's nuclear programme fed worries about supply disruption.
• The euro inched lower on bond redemption-related selling, with some investors stuck on the sidelines for the U.S. market holiday, while others took positions before a European Central Bank policy meeting on Thursday
• London copper edged down as investors locked in recent steep gains, waiting for more signs from central banks to revive a faltering global economy that has dented demand for industrial metals.
• Gold hovered near a two-week high, helped by hopes central banks will ease monetary policy in a bid to nurture a fragile recovery in the global economy.
• Asian shares rose to a seven-week high as investors kept hopes high for more monetary policy stimulus to support the faltering global economy, starting with a likely rate cut by the European Central Bank. European stock index futures pointed to a slightly lower open, with investors seen taking some profits from two-month highs ahead of policy meetings of the European Central Bank and the Bank of England on Thursday. U.S. stocks extended a rally for a third day on Tuesday as sharp gains in oil prices lifted energy shares and traders factored in increased expectations for central bank stimulus."
Breaking News : Diamond lets loose over Libor
FT.com
"Bob Diamond lobbed a political grenade at the leading candidate to run the Bank of England as well as the previous Labour government just hours after his forced departure as Barclays’ chief executive on Tuesday over the Libor-rigging scandal.
The resignation of the swashbuckling US investment banker, who faces a grilling by a parliamentary committee on Wednesday, left a gaping hole in the leadership of one of Britain’s biggest global banks"
"Bob Diamond lobbed a political grenade at the leading candidate to run the Bank of England as well as the previous Labour government just hours after his forced departure as Barclays’ chief executive on Tuesday over the Libor-rigging scandal.
The resignation of the swashbuckling US investment banker, who faces a grilling by a parliamentary committee on Wednesday, left a gaping hole in the leadership of one of Britain’s biggest global banks"
Tuesday, 3 July 2012
Asia Stocks, Commodities Rise on Stimulus Bets
July 3 (Bloomberg) -- Asian stocks headed for their biggest five-day gain this year and commodities rose to a one-month high on expectations that central banks in Europe and China will ease monetary policy to spur economic growth. The South Korean won and Australian dollar climbed.
The MSCI Asia Pacific Index gained 0.7 percent as of 2:04 p.m. in Tokyo while Standard & Poor’s 500 Index futures rose 0.1 percent. The S&P GSCI Index of commodities rose 0.9 percent as oil and corn futures advanced. The won strengthened 0.5 percent to 1,140.05 per dollar, near an eight-week high. The so-called Aussie rose 0.2 percent to $1.0266. Credit-default swaps for Asia ex-Japan gained for the first time in six days.
The European Central Bank is forecast by economists to cut interest rates this week to help curb the debt crisis, while a state-owned newspaper in China said the time is ripe for a reduction in banks’ reserve-requirement ratios. Declining employment figures in the U.S. this week may prompt the Federal Reserve to initiate fresh stimulus, BNP Paribas SA said. The Reserve Bank of Australia left borrowing costs unchanged today after cuts in each of the past two months.
“Disappointing economic readings are spurring expectations for more stimulus measures,” said Chung Yun Sik, the Seoul- based chief investment officer for equities at ING Investment Management Korea Ltd., which oversees about $17 billion. “Investors’ focus, at least for now, appears to have shifted away from Europe’s debt woes.”
More than three stocks rose for every one that fell on the MSCI Asia Pacific Index. The stocks gauge recorded its first quarterly decline since September in the three months through June 30 as Europe’s debt crisis and slowing growth in China and the U.S. dented the outlook for the region’s economies.
Five-Day Gain
The MSCI Asia Pacific Index has climbed 4.7 percent in five days, the most since the period ended Dec. 5 and the longest winning streak since March. All 10 major industry groups advanced today.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, advanced 2.6 percent, leading gains among financial firms. Canon Inc., a camera maker that gets about 31 percent of sales from Europe, climbed 1.4 percent in Tokyo. Tencent Holdings Ltd. led technology stocks higher in Hong Kong after Micron Technology Inc. agreed to buy Elpida Memory Inc. in the memory-chip industry’s largest consolidation in four years.
South Korea’s Kospi index increased 0.8 percent and Australia’s S&P/ASX 200 Index was down 0.1 percent.
BRICs Irresistible
The MSCI BRIC Index, which tracks equities in China, Brazil, Russia and India -- the so-called BRIC countries -- fell 1.8 percent during the first half of the year while the MSCI World Index of developed market stocks advanced 4.5 percent. That’s led to the widest valuation gap in seven years in terms of the value of stocks versus the BRIC economies’ contribution to global output, according to the International Monetary Fund and data compiled by Bloomberg.
The 4 percentage point difference makes stocks in these markets irresistible, according to Jim O’Neill, the chairman of Goldman Sachs Asset Management who coined the term BRIC in a 2001 research report.
Hong Kong’s Hang Seng Index, which tracks China’s biggest companies including the state-owned banks and energy producers, rose 1.5 percent, headed for the biggest two-day gain this year. The index didn’t trade yesterday because of a holiday.
Cutting reserve requirements may become the top choice for the People’s Bank of China to increase liquidity in the banking system, according to a commentary today on the front page of the China Securities Journal, which is published by the official Xinhua News Agency. The central bank announced a cut to interest rates on June 7, a day after the newspaper published a commentary urging the move.
RBA Decision
The Aussie rose as much as 0.4 percent against the dollar before the Reserve Bank of Australia announced it kept its cash- rate target at 3.5 percent, as expected by all 28 economists in a Bloomberg poll.
The U.S. dollar declined against all of its 16 major peers except the Japanese yen, before a report today forecast to show factory orders stagnating. Labor Department data on July 6 is forecast to show employers added fewer than 100,000 jobs for a third month, a sign that the world’s largest economy is cooling.
Concern about the pace of U.S. economic growth rose yesterday after the Institute for Supply Management’s manufacturing index for June showed a contraction for the first time in almost three years.
The yen fell against all its major peers as heightened risk appetite sapped demand for haven assets. The currency fell 0.3 percent to 79.72 per dollar.
“The yen is being sold as risk aversion eases,” Masakazu Sato, a foreign exchange adviser for Gaitame Online Co. in Tokyo. “The market is pricing in a rate cut by the ECB.”
ECB Stimulus?
European leaders will seek help from the European Central Bank when it meets on July 5. ECB officials will lower their benchmark rate by 25 basis points to a record low 0.75 percent, according to the median forecast in a Bloomberg survey of 57 economists. The bank has a track record of action following political progress, including bond purchases that followed bailout programs and unlimited three-year loans.
The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan climbed 2 basis points to 170 in Singapore, Standard Chartered Plc prices show. The index, which has ranged between 210 and 132.5 this year, had fallen for five consecutive days prior, according to CMA, which compiles prices quoted by dealers in the privately negotiated market.
Corn for December delivery surged as much as 2.5 percent to $6.72 a bushel on the Chicago Board of Trade, after jumping 15 percent last week. Crop conditions in the U.S., the biggest producer and exporter, deteriorated for a fourth straight week on hot, dry weather. Soybeans gained 0.6 percent and wheat futures rose 1 percent.
Oil in New York rose 0.8 percent to $84.38 a barrel. Copper in London surged 2 percent to $7,780 per metric ton, zinc climbed 1 percent and nickel was up 0.8 percent.
To contact Bloomberg News staff for this story: Chua Baizhen in Beijing at bchua14@bloomberg.net "
Steven Morris
CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
The MSCI Asia Pacific Index gained 0.7 percent as of 2:04 p.m. in Tokyo while Standard & Poor’s 500 Index futures rose 0.1 percent. The S&P GSCI Index of commodities rose 0.9 percent as oil and corn futures advanced. The won strengthened 0.5 percent to 1,140.05 per dollar, near an eight-week high. The so-called Aussie rose 0.2 percent to $1.0266. Credit-default swaps for Asia ex-Japan gained for the first time in six days.
The European Central Bank is forecast by economists to cut interest rates this week to help curb the debt crisis, while a state-owned newspaper in China said the time is ripe for a reduction in banks’ reserve-requirement ratios. Declining employment figures in the U.S. this week may prompt the Federal Reserve to initiate fresh stimulus, BNP Paribas SA said. The Reserve Bank of Australia left borrowing costs unchanged today after cuts in each of the past two months.
“Disappointing economic readings are spurring expectations for more stimulus measures,” said Chung Yun Sik, the Seoul- based chief investment officer for equities at ING Investment Management Korea Ltd., which oversees about $17 billion. “Investors’ focus, at least for now, appears to have shifted away from Europe’s debt woes.”
More than three stocks rose for every one that fell on the MSCI Asia Pacific Index. The stocks gauge recorded its first quarterly decline since September in the three months through June 30 as Europe’s debt crisis and slowing growth in China and the U.S. dented the outlook for the region’s economies.
Five-Day Gain
The MSCI Asia Pacific Index has climbed 4.7 percent in five days, the most since the period ended Dec. 5 and the longest winning streak since March. All 10 major industry groups advanced today.
Mitsubishi UFJ Financial Group Inc., Japan’s biggest bank, advanced 2.6 percent, leading gains among financial firms. Canon Inc., a camera maker that gets about 31 percent of sales from Europe, climbed 1.4 percent in Tokyo. Tencent Holdings Ltd. led technology stocks higher in Hong Kong after Micron Technology Inc. agreed to buy Elpida Memory Inc. in the memory-chip industry’s largest consolidation in four years.
South Korea’s Kospi index increased 0.8 percent and Australia’s S&P/ASX 200 Index was down 0.1 percent.
BRICs Irresistible
The MSCI BRIC Index, which tracks equities in China, Brazil, Russia and India -- the so-called BRIC countries -- fell 1.8 percent during the first half of the year while the MSCI World Index of developed market stocks advanced 4.5 percent. That’s led to the widest valuation gap in seven years in terms of the value of stocks versus the BRIC economies’ contribution to global output, according to the International Monetary Fund and data compiled by Bloomberg.
The 4 percentage point difference makes stocks in these markets irresistible, according to Jim O’Neill, the chairman of Goldman Sachs Asset Management who coined the term BRIC in a 2001 research report.
Hong Kong’s Hang Seng Index, which tracks China’s biggest companies including the state-owned banks and energy producers, rose 1.5 percent, headed for the biggest two-day gain this year. The index didn’t trade yesterday because of a holiday.
Cutting reserve requirements may become the top choice for the People’s Bank of China to increase liquidity in the banking system, according to a commentary today on the front page of the China Securities Journal, which is published by the official Xinhua News Agency. The central bank announced a cut to interest rates on June 7, a day after the newspaper published a commentary urging the move.
RBA Decision
The Aussie rose as much as 0.4 percent against the dollar before the Reserve Bank of Australia announced it kept its cash- rate target at 3.5 percent, as expected by all 28 economists in a Bloomberg poll.
The U.S. dollar declined against all of its 16 major peers except the Japanese yen, before a report today forecast to show factory orders stagnating. Labor Department data on July 6 is forecast to show employers added fewer than 100,000 jobs for a third month, a sign that the world’s largest economy is cooling.
Concern about the pace of U.S. economic growth rose yesterday after the Institute for Supply Management’s manufacturing index for June showed a contraction for the first time in almost three years.
The yen fell against all its major peers as heightened risk appetite sapped demand for haven assets. The currency fell 0.3 percent to 79.72 per dollar.
“The yen is being sold as risk aversion eases,” Masakazu Sato, a foreign exchange adviser for Gaitame Online Co. in Tokyo. “The market is pricing in a rate cut by the ECB.”
ECB Stimulus?
European leaders will seek help from the European Central Bank when it meets on July 5. ECB officials will lower their benchmark rate by 25 basis points to a record low 0.75 percent, according to the median forecast in a Bloomberg survey of 57 economists. The bank has a track record of action following political progress, including bond purchases that followed bailout programs and unlimited three-year loans.
The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan climbed 2 basis points to 170 in Singapore, Standard Chartered Plc prices show. The index, which has ranged between 210 and 132.5 this year, had fallen for five consecutive days prior, according to CMA, which compiles prices quoted by dealers in the privately negotiated market.
Corn for December delivery surged as much as 2.5 percent to $6.72 a bushel on the Chicago Board of Trade, after jumping 15 percent last week. Crop conditions in the U.S., the biggest producer and exporter, deteriorated for a fourth straight week on hot, dry weather. Soybeans gained 0.6 percent and wheat futures rose 1 percent.
Oil in New York rose 0.8 percent to $84.38 a barrel. Copper in London surged 2 percent to $7,780 per metric ton, zinc climbed 1 percent and nickel was up 0.8 percent.
To contact Bloomberg News staff for this story: Chua Baizhen in Beijing at bchua14@bloomberg.net "
Steven Morris
CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Website: www.stevenmorris.co.za
Breaking News : Diamond quits as Barclays chief executive
Diamond quits as Barclays chief executive
Bob Diamond quit as chief executive of Barclays after days of speculation about his future following a £290m fine by authorities in the UK and the US related to manipulation of interbank lending rates.
Mr Diamond resigned with immediate effect and Marcus Agius outgoing chairman will lead the search for a new chief executive.
Australia Holds Key Rate at 3.5% as Prior Cuts Buoy Economy
July 3 (Bloomberg) --
"Australia’s central bank kept interest rates unchanged at a 2 1/2-year low today, saying its recent reductions in borrowing costs will help the economy weather a more subdued global outlook.
Governor Glenn Stevens and his board left the overnight cash-rate target at 3.5 percent, the Reserve Bank of Australia said in a statement in Sydney. The decision was predicted by all 28 economists surveyed by Bloomberg News.
Australia recorded its best January-to-May period of hiring in five years and a A$500 billion ($513 billion) investment pipeline is driving growth in some regions, even as export prices have slumped. Stevens, who cut rates by a total of 75 basis points in May and June, held after European Union leaders agreed last week on measures to help Italy and Spain reduce the cost of servicing debt.
“There has been a material easing in monetary policy over the past six months,” Stevens said. “The board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate.”
The local currency pared gains, trading at $1.0258 at 2:53 p.m. in Sydney from $1.0278 before the decision was announced.
“The exchange rate has been volatile recently, but overall remains high,” Stevens said today.
China’s Easing
Two days after Stevens eased last month, the central bank in China, Australia’s largest trading partner, reduced rates for the first time since 2008 as Europe’s turmoil threatened to disrupt the global economy.
China may introduce “more proactive” policies to support growth by stabilizing foreign trade and expanding infrastructure investment, the China Securities Journal reported June 27.
Even after last month’s rate cut, Australia has the highest borrowing costs among major developed nations as Stevens seeks to manage an economy powered by the biggest resource boom since prospectors in New South Wales set off a gold rush in the 1850s.
The latest bonanza -- for iron ore, coal and natural gas -- is bringing investment projects and helped keep the unemployment rate at 5.1 percent in May. That’s lower than 8.2 percent in the U.S. and 11.1 percent in the euro area.
Currency’s Strength
The mining boom, rate differentials and the opportunity to bet on Chinese growth has driven a 45 percent appreciation in Australia’s currency since Jan. 1, 2009. The so-called Aussie advanced 5.2 percent in June, the biggest monthly increase since October.
The sustained strength of the local dollar has helped douse consumer prices. A private gauge of Australian inflation released this week dropped in June on weaker fuel and furniture prices, signaling little cost pressure on consumers in the second quarter.
Stevens today said the central bank’s inflation outlook hasn’t changed, even with the July 1 introduction of a tax on pollution emissions that will boost prices. “Maintaining low inflation over the longer term will, however, require growth in domestic costs to slow as the effects of the earlier exchange rate appreciation wane,” he said.
Australia unexpectedly added 38,900 workers in May, and annual economic growth of 4.3 percent in the first quarter was the fastest pace since 2007, government reports showed since the RBA’s June 5 meeting.
Credit Growth
“Interest rates for borrowers have declined, to be a little below their medium-term averages,” Stevens said today. “Business credit has increased more strongly in recent months, though credit growth remains modest overall.”
Earlier today, the Australian Bureau of Statistics said building approvals in May jumped 27.3 percent from the previous month, the biggest monthly gain on record.
Stevens said today the housing market “remains subdued.”
Other data in the past month showed Australia posted monthly trade deficits from January through April, consumer confidence near the lowest level of the year and a manufacturing industry in a fourth month of contraction.
The RBA has cut the cash rate four times in the past eight months -- by 25 basis points at successive meetings in November and December, by 50 points on May 1 and by another 25 points last month.
European Union leaders ushered in the strongest rally in the single currency and in Spanish bonds this year after agreeing at their June 28-29 summit to loosen bailout rules, lay the foundations for a banking union and break the link between sovereign and banking debt through the direct recapitalization of lenders.
To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net "
"Australia’s central bank kept interest rates unchanged at a 2 1/2-year low today, saying its recent reductions in borrowing costs will help the economy weather a more subdued global outlook.
Governor Glenn Stevens and his board left the overnight cash-rate target at 3.5 percent, the Reserve Bank of Australia said in a statement in Sydney. The decision was predicted by all 28 economists surveyed by Bloomberg News.
Australia recorded its best January-to-May period of hiring in five years and a A$500 billion ($513 billion) investment pipeline is driving growth in some regions, even as export prices have slumped. Stevens, who cut rates by a total of 75 basis points in May and June, held after European Union leaders agreed last week on measures to help Italy and Spain reduce the cost of servicing debt.
“There has been a material easing in monetary policy over the past six months,” Stevens said. “The board judged that, with inflation expected to be consistent with the target and growth close to trend, but with a more subdued international outlook than was the case a few months ago, the stance of monetary policy remained appropriate.”
The local currency pared gains, trading at $1.0258 at 2:53 p.m. in Sydney from $1.0278 before the decision was announced.
“The exchange rate has been volatile recently, but overall remains high,” Stevens said today.
China’s Easing
Two days after Stevens eased last month, the central bank in China, Australia’s largest trading partner, reduced rates for the first time since 2008 as Europe’s turmoil threatened to disrupt the global economy.
China may introduce “more proactive” policies to support growth by stabilizing foreign trade and expanding infrastructure investment, the China Securities Journal reported June 27.
Even after last month’s rate cut, Australia has the highest borrowing costs among major developed nations as Stevens seeks to manage an economy powered by the biggest resource boom since prospectors in New South Wales set off a gold rush in the 1850s.
The latest bonanza -- for iron ore, coal and natural gas -- is bringing investment projects and helped keep the unemployment rate at 5.1 percent in May. That’s lower than 8.2 percent in the U.S. and 11.1 percent in the euro area.
Currency’s Strength
The mining boom, rate differentials and the opportunity to bet on Chinese growth has driven a 45 percent appreciation in Australia’s currency since Jan. 1, 2009. The so-called Aussie advanced 5.2 percent in June, the biggest monthly increase since October.
The sustained strength of the local dollar has helped douse consumer prices. A private gauge of Australian inflation released this week dropped in June on weaker fuel and furniture prices, signaling little cost pressure on consumers in the second quarter.
Stevens today said the central bank’s inflation outlook hasn’t changed, even with the July 1 introduction of a tax on pollution emissions that will boost prices. “Maintaining low inflation over the longer term will, however, require growth in domestic costs to slow as the effects of the earlier exchange rate appreciation wane,” he said.
Australia unexpectedly added 38,900 workers in May, and annual economic growth of 4.3 percent in the first quarter was the fastest pace since 2007, government reports showed since the RBA’s June 5 meeting.
Credit Growth
“Interest rates for borrowers have declined, to be a little below their medium-term averages,” Stevens said today. “Business credit has increased more strongly in recent months, though credit growth remains modest overall.”
Earlier today, the Australian Bureau of Statistics said building approvals in May jumped 27.3 percent from the previous month, the biggest monthly gain on record.
Stevens said today the housing market “remains subdued.”
Other data in the past month showed Australia posted monthly trade deficits from January through April, consumer confidence near the lowest level of the year and a manufacturing industry in a fourth month of contraction.
The RBA has cut the cash rate four times in the past eight months -- by 25 basis points at successive meetings in November and December, by 50 points on May 1 and by another 25 points last month.
European Union leaders ushered in the strongest rally in the single currency and in Spanish bonds this year after agreeing at their June 28-29 summit to loosen bailout rules, lay the foundations for a banking union and break the link between sovereign and banking debt through the direct recapitalization of lenders.
To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net "
Monday, 2 July 2012
Eco Data 2 JULY 2012
Asian stocks gaining overnight (MSCI Asia Pacific up 0.4%) as manufacturing indicators in Japan and China beat forecasts and European leaders agreed on measures to ease the regions debt crisis. Hong Kong market is closed today for a holiday. BHP Billiton climbed 1.2% in Australia after commodity prices rallied last week. Barclays said Chairman Marcus Agius will stand down in a statement released today.
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