Bloomberg:
"German Finance Minister Wolfgang Schaeuble suggested the euro area could handle Greece dropping
out, raising pressure on Greek political leaders struggling to form a government amid a rise in anti-bailout sentiment.
“We have learned a lot in the last two years and built in protective mechanisms,” Schaeuble told the Rheinische Post newspaper in an interview published today, when asked whether the euro area is girded for a Greek exit. His comments were confirmed by the Finance Ministry in Berlin.
“The risks of contagion for other countries of the euro zone have been reduced and the euro zone as a whole has become more resistant,” Schaeuble said. “The notion that we wouldn’t be able to react in a short time to something unforeseen is wrong.”
Evangelos Venizelos, the Pasok leader and former finance minister, will try to put together a unity government today as Greece enters a fifth day of post-election impasse. He is due to hold talks with Democratic Left leader Fotis Kouvelis on plans to keep Greece in the euro while attempting to negotiate a gradual “disengagement” from bailout austerity measures.
As Greece kicks back against the budget cuts and economic overhaul required under its financial rescue, anyone who tells Greeks there’s an easier, less painful way out is spouting “nonsense,” Schaeuble said.
“We have to tell our Greek friends and partners honestly, fairly and openly that there is no way other than the one we jointly agreed,” Schaeuble said. Other European governments and private investors have gone “extraordinarily far” in making concessions, so Greece “has to understand that must fulfill its commitments in return.”
“We want Greece to stay in the euro zone,” Schaeuble said. “But it has to want this and has to accept its commitments. We can’t force anyone. Europe won’t go under that quickly.”
To contact the reporter on this story: Tony Czuczka in Berlin at aczuczka@bloomberg.net "
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Friday, 11 May 2012
The week that was, Sell in May and Go Away
Asian stocks fell (MSCI ASia pacific down 0.7%), heading for the biggest weekly decline since November.
US Equities dropped after JP Morgan's surprise $2bn loss on synthetic Credit sec's.
After the SA futures close the Dow fell 0.2% and the S&P fell 0.15%. Uk and US PPI numbers released today.
US Equities dropped after JP Morgan's surprise $2bn loss on synthetic Credit sec's.
After the SA futures close the Dow fell 0.2% and the S&P fell 0.15%. Uk and US PPI numbers released today.
Thursday, 10 May 2012
Ghosts from the 1930s have returned to haunt us
The A-List: Stephen King - Ghosts from the 1930s have returned to haunt us
We may not yet have succumbed to a Great Depression but depression, in one form or another, is all around us. And we are witnessing the rise of political extremism, a nationalist backlash against a country’s obligations towards its – typically foreign – creditors.
Food for Thought !!
We may not yet have succumbed to a Great Depression but depression, in one form or another, is all around us. And we are witnessing the rise of political extremism, a nationalist backlash against a country’s obligations towards its – typically foreign – creditors.
Food for Thought !!
7 (Seven) Deal Killers in M & A Activity - Beware
I just read this interesting article about the 7 Deal Killers in M and A Activity.
Take Note :
1 Skeletons in the Closet
2 Changing the deal
3 Missing your numbers
4 Hiring inexperienced deal professionals
5 Sewating the small stuff
6 Being penny-wise but pound-foolish
7 Forgetting about SARS &; Uncle Sam !!
I will write a bit more tomorrow on each point !!
Don't forget to come back and review !!
Steven
Take Note :
1 Skeletons in the Closet
2 Changing the deal
3 Missing your numbers
4 Hiring inexperienced deal professionals
5 Sewating the small stuff
6 Being penny-wise but pound-foolish
7 Forgetting about SARS &; Uncle Sam !!
I will write a bit more tomorrow on each point !!
Don't forget to come back and review !!
Steven
Wednesday, 9 May 2012
Wednesday 9th May - Will the Carnage carry on !!
REF : Compass Global Markets
"Markets have reeled as concerns escalate that a change in the political landscape in Greece could derail the bailout agreements as parties that have promised to cancel bailout accords have the opportunity to form a new government. Speculation is mounting that such a move would inevitably lead to the exit of Greece from the eurozone and result in further complications for a Europe that is still on the brink of financial disaster. The failure of eurozone policymakers to keep Greece in the fold could precipitate a contagion that could sabotage the global economy. The EUR continues to slide and is trading around the psychological 1.3000 level.
Australian treasurer Wayne Swan has delivered a budget designed to spread the benefits of the nation's mining boom to the so called 'battler' in an attempt to claw back support in opinion polls for his beleaguered government under the failing leadership of Prime Minister Julia Gillard. Whilst outlining spending cuts of over $33 billion over five years to bring it back to surplus, the budget allowed for cash payments to parents, higher funding for dental care, and support for the elderly and disabled. As usual, the Australian dollar barely moved as the budget was announced but is trading lower at 1.0100 as markets fall on increasing jitters surrounding Greece.
Equity markets have reacted poorly to the political turmoil in Europe. 8 out of the 10 industry groups on the S&P 500 have lost ground, led by falls in financial and commodity stocks, as the index closed down for the fourth session in five, losing 0.43% to 1,364. McDonald's lost more than 2% as global sales forecasts missed estimates while Fossil plunged 35%. Earlier in Europe, bourses closed significantly lower with France's CAC plunging almost 3% while the DAX lost 1.9%. The Greek equity index has slumped to a 20 year low after losing 3.6%. Asian stocks had earlier made modest gains but look set for significant falls in trade today as they take the lead from overnight trade.
Commodity prices continue to fall seeing most of the gains on the S&P GSCI for 2012 evaporate and the CRB losing 2.33 points to 296.34. WTI crude slumped further on official Saudi comments that prices are “still a little high.” WTI is settling at 97.40 after losing 0.6%. Precious metals have plummeted outside of recent ranges with gold losing 2% to $1,607 while silver is also down 2% to $29.50. Soft commodities are mixed with sugar and soybean futures down the most while copper has lost 2.2%."
"Markets have reeled as concerns escalate that a change in the political landscape in Greece could derail the bailout agreements as parties that have promised to cancel bailout accords have the opportunity to form a new government. Speculation is mounting that such a move would inevitably lead to the exit of Greece from the eurozone and result in further complications for a Europe that is still on the brink of financial disaster. The failure of eurozone policymakers to keep Greece in the fold could precipitate a contagion that could sabotage the global economy. The EUR continues to slide and is trading around the psychological 1.3000 level.
Australian treasurer Wayne Swan has delivered a budget designed to spread the benefits of the nation's mining boom to the so called 'battler' in an attempt to claw back support in opinion polls for his beleaguered government under the failing leadership of Prime Minister Julia Gillard. Whilst outlining spending cuts of over $33 billion over five years to bring it back to surplus, the budget allowed for cash payments to parents, higher funding for dental care, and support for the elderly and disabled. As usual, the Australian dollar barely moved as the budget was announced but is trading lower at 1.0100 as markets fall on increasing jitters surrounding Greece.
Equity markets have reacted poorly to the political turmoil in Europe. 8 out of the 10 industry groups on the S&P 500 have lost ground, led by falls in financial and commodity stocks, as the index closed down for the fourth session in five, losing 0.43% to 1,364. McDonald's lost more than 2% as global sales forecasts missed estimates while Fossil plunged 35%. Earlier in Europe, bourses closed significantly lower with France's CAC plunging almost 3% while the DAX lost 1.9%. The Greek equity index has slumped to a 20 year low after losing 3.6%. Asian stocks had earlier made modest gains but look set for significant falls in trade today as they take the lead from overnight trade.
Commodity prices continue to fall seeing most of the gains on the S&P GSCI for 2012 evaporate and the CRB losing 2.33 points to 296.34. WTI crude slumped further on official Saudi comments that prices are “still a little high.” WTI is settling at 97.40 after losing 0.6%. Precious metals have plummeted outside of recent ranges with gold losing 2% to $1,607 while silver is also down 2% to $29.50. Soft commodities are mixed with sugar and soybean futures down the most while copper has lost 2.2%."
Tuesday, 8 May 2012
Stocks, Commodities Fall as Euro Extends Slump on Greece
RED on the Dance Floor !!
"May 8 (Bloomberg) -- Stocks and commodities slid, while the euro extended its longest slump versus the dollar since 2008, as the struggle by Greek political leaders to form a coalition underscored growing concern about the region’s debt crisis.
The Standard & Poor’s 500 Index fell 0.9 percent to 1,357.85 at 10:09 a.m. in New York, extending its slump from an almost four-year high last month to more than 4 percent. Copper slipped 2.9 percent and oil retreated 1.6 percent as the S&P GSCI Index of commodities slumped for a fifth straight day. The euro depreciated for a seventh straight day, losing 0.5 percent to $1.2992. The 10-year Treasury yield fell three basis points to trade near a three-month low. The Stoxx Europe 600 Index slid 1 percent, erasing yesterday’s gain.
Greece’s New Democracy leader Antonis Samaras said he failed to form a coalition government following the weekend election, passing the opportunity to Alexis Tsipras’s Syriza party. Tsipras said he would forge ahead with plans to form a government of left-wing parties that would nationalize banks, repeal recent labor reforms and cancel the nation’s bailout accords.
“It’s the Greece situation and the implications that most risk-averse people are worried about,” said Michael Holland, chairman and founder of New York-based Holland & Co. His firm oversees more than $4 billion. “People are preparing for a shock that may or may not occur.”
Market Leaders
The S&P 500 dropped for the fourth time in five days as consumer-discretionary and commodity companies led losses in eight of 10 of the main industry groups. Home Depot Inc. tumbled 3 percent while Hewlett-Packard Co. and Bank of America Corp. lost 1.9 percent to lead the Dow Jones Industrial Average down as much as 96 points.
The 10-year U.S. Treasury note yield fell for the third straight day, losing three basis points to 1.84 percent, near the lowest level since February 3. The government sells $32 billion of three-year notes, the first of three sales this week totaling $72 billion.
Three shares declined for each that gained in the Stoxx 600 as automakers, mining and financial-services companies led the retreat. Bankia SA slid 5.1 percent in Madrid as El Confidencial said the Spanish government will nationalize the lender. Royal KPN NV rallied 15 percent as America Movil SAB, the wireless carrier owned by the world’s richest man, Carlos Slim, offered 2.6 billion euros ($3.4 billion) to increase its stake.
The euro fell 0.6 percent versus the yen. The Dollar Index, which tracks the U.S. currency against those of six trading partners, climbed 0.4 percent, advancing for the seventh consecutive day. The so-called Aussie weakened against 13 of its 16 major peers after the nation reported a larger-than-estimated trade deficit.
Commodities Decline
Oil in New York declined for a fifth day, the longest streak in three months, after Saudi Arabian Oil Minister Ali al- Naimi said prices are too high. Copper traded in New York fell 2.9 percent to $3.6655 a pound. The London Metal Exchange was closed yesterday for a holiday.
Gasoline in New York fell for a seventh day. Prices at the pump fell, with the national average price for regular gasoline dropping 1 percent to $3.79 a gallon as of yesterday from a week earlier, the Energy Information Administration said in a report.
German power for 2013, Europe’s benchmark contract, slipped 0.2 percent to 49.45 euros a megawatt-hour after touching a record low of 49.35, according to broker data compiled by Bloomberg.
The MSCI Emerging Markets Index sank 0.9 percent as benchmark indexes in Mexico and Brazil lost more than 1.7 percent and India’s Sensex sank 2.2 percent. The Hang Seng China Enterprises Index of Chinese stocks listed in Hong Kong slid 0.5 percent as residential land sales dropped 92 percent in major Chinese cities. "
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net ; Rita Nazareth in New York at rnazareth@bloomberg.net
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
"May 8 (Bloomberg) -- Stocks and commodities slid, while the euro extended its longest slump versus the dollar since 2008, as the struggle by Greek political leaders to form a coalition underscored growing concern about the region’s debt crisis.
The Standard & Poor’s 500 Index fell 0.9 percent to 1,357.85 at 10:09 a.m. in New York, extending its slump from an almost four-year high last month to more than 4 percent. Copper slipped 2.9 percent and oil retreated 1.6 percent as the S&P GSCI Index of commodities slumped for a fifth straight day. The euro depreciated for a seventh straight day, losing 0.5 percent to $1.2992. The 10-year Treasury yield fell three basis points to trade near a three-month low. The Stoxx Europe 600 Index slid 1 percent, erasing yesterday’s gain.
Greece’s New Democracy leader Antonis Samaras said he failed to form a coalition government following the weekend election, passing the opportunity to Alexis Tsipras’s Syriza party. Tsipras said he would forge ahead with plans to form a government of left-wing parties that would nationalize banks, repeal recent labor reforms and cancel the nation’s bailout accords.
“It’s the Greece situation and the implications that most risk-averse people are worried about,” said Michael Holland, chairman and founder of New York-based Holland & Co. His firm oversees more than $4 billion. “People are preparing for a shock that may or may not occur.”
Market Leaders
The S&P 500 dropped for the fourth time in five days as consumer-discretionary and commodity companies led losses in eight of 10 of the main industry groups. Home Depot Inc. tumbled 3 percent while Hewlett-Packard Co. and Bank of America Corp. lost 1.9 percent to lead the Dow Jones Industrial Average down as much as 96 points.
The 10-year U.S. Treasury note yield fell for the third straight day, losing three basis points to 1.84 percent, near the lowest level since February 3. The government sells $32 billion of three-year notes, the first of three sales this week totaling $72 billion.
Three shares declined for each that gained in the Stoxx 600 as automakers, mining and financial-services companies led the retreat. Bankia SA slid 5.1 percent in Madrid as El Confidencial said the Spanish government will nationalize the lender. Royal KPN NV rallied 15 percent as America Movil SAB, the wireless carrier owned by the world’s richest man, Carlos Slim, offered 2.6 billion euros ($3.4 billion) to increase its stake.
The euro fell 0.6 percent versus the yen. The Dollar Index, which tracks the U.S. currency against those of six trading partners, climbed 0.4 percent, advancing for the seventh consecutive day. The so-called Aussie weakened against 13 of its 16 major peers after the nation reported a larger-than-estimated trade deficit.
Commodities Decline
Oil in New York declined for a fifth day, the longest streak in three months, after Saudi Arabian Oil Minister Ali al- Naimi said prices are too high. Copper traded in New York fell 2.9 percent to $3.6655 a pound. The London Metal Exchange was closed yesterday for a holiday.
Gasoline in New York fell for a seventh day. Prices at the pump fell, with the national average price for regular gasoline dropping 1 percent to $3.79 a gallon as of yesterday from a week earlier, the Energy Information Administration said in a report.
German power for 2013, Europe’s benchmark contract, slipped 0.2 percent to 49.45 euros a megawatt-hour after touching a record low of 49.35, according to broker data compiled by Bloomberg.
The MSCI Emerging Markets Index sank 0.9 percent as benchmark indexes in Mexico and Brazil lost more than 1.7 percent and India’s Sensex sank 2.2 percent. The Hang Seng China Enterprises Index of Chinese stocks listed in Hong Kong slid 0.5 percent as residential land sales dropped 92 percent in major Chinese cities. "
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net ; Rita Nazareth in New York at rnazareth@bloomberg.net
Steven Morris CA (SA)
Mobie : 083 943 1858
Fax: 086 671 2498
E-Mail: steven@global.co.za
Facebook IPO is no place for an amateur
FT.com
"The A-List: Steven Rattner - Facebook IPO is no place for an amateur
The most closely watched initial public offering in a decade – that of social media giant Facebook – will reportedly include a dollop of shares earmarked for small investors. Here’s my advice: don’t buy any. Facebook is an extraordinary company and its shares could easily march upward but its IPO is a timely reminder that amateurs (or even money managers like mutual funds) shouldn’t be picking stocks."
"The A-List: Steven Rattner - Facebook IPO is no place for an amateur
The most closely watched initial public offering in a decade – that of social media giant Facebook – will reportedly include a dollop of shares earmarked for small investors. Here’s my advice: don’t buy any. Facebook is an extraordinary company and its shares could easily march upward but its IPO is a timely reminder that amateurs (or even money managers like mutual funds) shouldn’t be picking stocks."
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