NORTH AMERICA - LATE EDITION For Friday, July 10, Coming Up

Size: px
Start display at page:

Download "NORTH AMERICA - LATE EDITION For Friday, July 10, 2015. Coming Up"

Transcription

1 NORTH AMERICA - LATE EDITION For Friday, July 10, 2015 TODAY S MARKET RECAP Wall Street bounced back from sharp losses as Beijing halted a rout in Chinese stocks, while Treasuries plunged. The yen and Swiss franc snapped gains as investors bet on riskier assets. Oil rebounded on uncertainties over Iran nuclear deal and spot gold advanced. STOCKS Close Chng %Chng Yr-high Yr-low DJIA Nasdaq S&P Toronto Russell FTSE Eurofirst Nikkei Hang Seng TREASURIES Yield Price 10-year /32 2-year /32 5-year /32 30-year /32 FOREX Last % Chng Euro/Dollar Dollar/Yen Sterling/Dollar Dollar/CAD COMMODITIES ($) Price Chng % chng Front Month Crude /barrel Spot gold (NY/oz) Copper U.S. (front month/lb) Reuters/Jefferies CRB Index Coming Up Federal Reserve Chair Janet Yellen (pictured) will give her views on the prospects for U.S. growth, inflation and the job market amid keen global investor interest on whether she sides with the faction at the Fed that believes the central bank should raise rates just once this year or with those who prefer two rate hikes. Her most influential colleagues are split on the issue and her comments at the City Club of Cleveland, Ohio will be watched for clues on her stance. Separately, the Federal Reserve Bank of Boston President Eric Rosengren, the dovish U.S. central banker, will speak to Reuters exclusively about the economy's ability to absorb its first rate hike in nearly a decade and any misgivings he may have about a rate hike when pockets of the labor market are still struggling. Also, U.S. Treasury Secretary Jack Lew participates in Politico/Nasdaq conversation, "America's Fiscal Future". The Commerce Department releases data KEY ECONOMIC EVENTS on wholesale inventories, which are expected to have increased 0.3 percent in May, a slower pace than the previous month. Sales at wholesalers are also estimated to have risen 0.6 percent in May compared with a rise of 1.6 percent in April. The Canadian jobs market is forecast to have shed 10,000 positions last month, giving back some of the previous month's hefty gain and pushing up the unemployment rate to 6.9 percent. The employment report could be key in shaping investors' expectations around the economy and on what the Bank of Canada might do when it decides on interest rates next week. The economy contracted in the first quarter and at the start of the second, putting at risk the central bank's expectation that growth will regain momentum from the second quarter. Mexico's industrial output data for May will show if the slump in oil production is continuing and it will provide a reading on factory output, which has been shaky this year. LIVECHAT: THE WEEKAHEAD - with Reuters markets editor Mike Dolan Join Mike as he goes through the key macroeconomic and political themes for the coming week at 0600 ET/1000 GMT. To join the Global Markets Forum, click here Events ET Poll Prior S&P 500 Price $ Chng % Chng GAINERS Walgreen Boots Cigna Chesapeake Energy Nasdaq OMX Group LOSERS Baxalta Joy Global Altera Kohl's Wholesale inventories mm for May pct 0.4 pct Wholesale sales mm for May pct 1.6 pct ECRI Weekly Index ECRI weekly annualized pct 1

2 Market Monitor Stocks closed higher on Thursday after Wall Street found relief in Beijing's efforts to halt a rout in Chinese shares, which lifted markets around the world. "The Chinese market has shown a nice rebound for a day but it is important to note that many of the owners are restricted from selling their shares and half the companies have suspended trading," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas. Meanwhile, the New York Stock Exchange said its nearly four-hour trading halt on Wednesday resulted from a technical problem that stemmed from new software rolled out the previous evening. The financial index gained 0.77 percent, at Shares of Walgreens Boots Alliance were up 4.24 percent. Coty's shares fell 4.70 percent and Procter & Gamble was down 0.41 percent. The Dow was up 0.19 percent, the S&P 500 added 0.23 percent, and the Nasdaq rose 0.26 percent. Treasuries fell as China's beaten-down stock markets rose after recent huge falls and Wall Street bounced back from sharp losses. Treasury losses widened on news that U.S. initial jobless claims rose last week to their highest since February. Meanwhile, the Treasury Department sold $13 billion of 30-year bonds to soft demand, paying a yield of percent, higher than traders had expected. The bidto-cover ratio was The 10-year note was down 28/32 yielding 2.30 percent. The 2-year note was last traded down 3/32 to yield 0.59 percent. The safe-haven yen and Swiss franc fell after Chinese stocks rebounded and worries about Greece eased somewhat as Europe awaited reform proposals from the debt-burdened country to back its request for another three-year loan. "The FX market is generally taking its cue from overall risk sentiment and so equities are higher today," said Mark McCormick, currency strategist at Credit Agricole in New York. "Risk-sensitive currencies such as the Aussie dollar are higher as well. But that kind of masks the underlying fundamentals, which continue to favor a better backdrop for the U.S. dollar." The dollar was up 0.49 percent against the yen at yen. The greenback also rose 0.31 percent against the Swiss franc at franc. The euro, meanwhile, was down 0.48 percent against the dollar at $ The dollar index added 0.24 percent at Crude jumped, rebounding forcefully from the three-month lows of this week, as China's stock market steadied from its collapse and uncertainties remained about a nuclear deal that will allow Iran to export more crude. Brent was up 2.66 percent at $58.57 a barrel. U.S. crude rose 2.11 percent to $52.74 a barrel, rebounding from this week's three-month low of $ In Vienna, talks for a nuclear accord between Iran and world powers were extended for a ninth day beyond their original deadline. Iran is seeking to restore oil exports that have dropped from 2.5 million barrels per day in 2011 to about 1 million bpd in 2014 due to Western sanctions arising from its controversial nuclear program. Spot gold rose as a recovery in Chinese shares cooled fears of a wider rout in the major bullion consumer, and after minutes from the Federal Reserve's last meeting suggested caution towards a near-term increase in interest rates. Spot gold was up 0.26 percent at $1, an ounce, while gold futures for August delivery were down 0.29 percent at $1, an ounce. 2

3 Top News Coty buying P&G beauty business for $12.5 billion Coty will buy Procter & Gamble's perfume, hair care and make-up businesses for $12.5 billion in the biggest cosmetics merger in recent history. In a tax-efficient deal designed as a "Reverse Morris Trust" transaction, P&G will separate 43 of its cosmetics, fragrance and haircare brands and fold them into Coty. The deal is a game-changer for Coty as it adds popular brands to its portfolio. For P&G, the sale is part of a plan to narrow its focus on fewer, faster-growing brands. The combined company is expected to have annual revenue of more than $10 billion - double Coty's turnover - and will be led by Coty CEO Bart Becht. Coty said it expects to generate about $4.5 billion in annual sales from its fragrance business, making it the world's largest fragrance company by sales. It also expects to become the third largest brand in the color and cosmetics sector. Based on Coty's current stock price, outstanding shares and equity grants, the value of the transaction is about $15 billion, P&G said. China stems stocks rout, but market faces lengthy hangover Beijing's increasingly frantic attempts to stem a stock market rout were finally rewarded as Chinese shares bounced, but the costs of heavy-handed state intervention are likely to weigh on the market for a long time. The rebound came after China's securities regulator, in its most drastic step yet to arrest the slump, banned shareholders with large stakes in listed firms from selling. But China's malfunctioning stock markets remained semi-frozen, with the shares of around 1,500 listed companies worth around $2.8 trillion - roughly half the market - suspended, and many of those still trading propped up by state-directed buying. "The authorities are capable of slowing the selling and extending market support," said Mark Konyn, chief executive officer at Cathay Conning Asset Management Ltd in Hong Kong. "However, this high level of intervention comes at a significant cost. Such intervention locks up ownership of shares, reduces liquidity and creates an overhang that could plague the market for years." PepsiCo profit, revenue beat estimates as higher pricing pays off PepsiCo reported better-than-expected quarterly profit and sales and recorded revenue growth in its Americas beverages business for just the second time in nearly four years, helped by higher demand and an increase in prices. Revenue from the company's Americas beverages business, rose 1 percent to $5.34 billion in the second quarter, helped by a 1 percent rise in organic volume sales and its strategy of raising product prices overseas to offset the impact of a strong dollar. Frito-Lay snacks sales in North America, PepsiCo's second-largest business, grew 2 percent to $3.45 billion in the quarter. The company raised its forecast for 2015 adjusted earnings per share growth to 8 percent on a constant currency basis, or about $5 per share, from 7 percent. Net income attributable to PepsiCo rose to $1.98 billion, or $1.33 per share, in the quarter ended June 13. Excluding items, it earned $1.32 per share, beating the average analyst estimate. Net revenue fell 5.7 percent to $15.92 billion as a stronger dollar continued to weigh on overseas sales, but also trumped estimates. Germany concedes Greece needs debt relief; Greek plan awaited Germany conceded that Greece would need some debt restructuring as part of any new loan programme to make its economy viable as the Greek cabinet raced to finalise reform proposals to avert an imminent economic meltdown. The admission by German Finance Minister Wolfgang Schaeuble came hours before a midnight deadline for Athens to submit a reform plan meant to convince European partners to give it another loan to save it from a possible exit from the euro. Schaeuble told a conference in Frankfurt: "Debt sustainability is not feasible without a haircut and I think the IMF is correct in saying that. But he added: "There cannot be a haircut because it would infringe the system of the European Union." He offered no solution to the conundrum, which implied that Greece's debt problem might not be soluble within the euro zone. European Council President Donald Tusk, who will chair an emergency euro zone summit on Sunday to decide Greece's fate, joined growing international calls for Athens to be granted some form of debt relief as part of any new loan deal if Prime Minister Alexis Tsipras finally delivers convincing reforms. U.S. jobless claims rise to highest level since February New applications for U.S. unemployment insurance benefits rose last week to their highest level since February, suggesting some slowdown in the labor market recovery. Initial claims for state unemployment benefits rose 15,000 to a seasonally adjusted 297,000 for the week that ended July 4, the U.S. Department of Labor said. Economists polled by Reuters had expected new applications to fall >>> 3

4 A Muslim woman cries near the coffin of her relative among the 136 newly identified victims of the 1995 Srebrenica massacre lined up for a joint burial in Potocari, Bosnia and Herzegovina. >>> to 275,000 last week. The four-week moving average of claims, which smoothes out week-to-week fluctuations and is therefore considered a better gauge of the labor market, rose 4,500 to 279,500 last week. Continued claims - the number of people still claiming jobless benefits after an initial week of aid - rose 69,000 to million in the week ended June 27, the Labor Department said. China fears propel Apple shares toward five-day losing streak Apple's stock was heading toward its first five-session losing streak since January as investors worried about the economic health of China, a key market for iphones. In the first three months of the year, for the first time, Apple sold more iphones in China than in the United States, a trend expected to grow as Chinese consumers upgrade from less expensive handsets. But with around 30 percent knocked off the value of Chinese shares since mid June, some investors fear that the turmoil could hurt consumer demand and the Chinese economy as a whole. Individuals account for a major chunk of stock investing in China and the market selloff may curb their disposable incomes. Also rattling investors was a report this week by research firm Slice Intelligence that sales of the Apple Watch have dropped since its launch in April. Anthem, Cigna progressing towards deal CNBC Anthem and Cigna were moving ahead to sign a merger deal as Cigna backed down on its differences over governance issues, CNBC tweeted, citing sources. The tweets also quoted sources as saying that UnitedHealth Group was looking to bid for Cigna. Anthem had made several offers for Cigna, but a deal had been hung up in part due to differences over leadership. Anthem made its bid public on June 20, offering Cigna $47 billion in cash and stock. The biggest U.S. health insurers are seeking acquisitions to boost membership in government-paid healthcare plans and the employer-based insurance that is Cigna's specialty. Being bigger can help them negotiate better prices and improve their network of doctors. Experts expect a potential acquisition of Cigna by Anthem to come under antitrust scrutiny. Thomas H. Lee in the lead to buy ebay's enterprise unit sources Private equity firm Thomas H. Lee Partners is in advanced talks to acquire the enterprise business of ebay for close to $1 billion, according to people familiar with the matter. Thomas H. Lee has so far outbid other parties in the auction for the business, though disagreements over price persist and there is no certainty that a deal will be reached, the people said. EBay's enterprise business, formerly known as GSI Commerce, helps retailers around the world beef up their online presence and e- commerce capabilities. EBay said in January that it would explore strategic alternatives for the unit, which does >>> 4

5 >>> not fit neatly with its PayPal and marketplace divisions. It generated $288 million in revenue in the first quarter. Toys R Us Inc, a client of GSI Commerce since 2006, announced it was launching its own online platform, a move that could take away more business from the unit. Walgreens raises full-year outlook, appoints CEO Walgreens Boots Alliance raised its fullyear profit forecast and said acting Chief Executive Officer Stefano Pessina will take over on a permanent basis. Walgreens Boots also reported a stronger-thanexpected quarterly profit for the third straight quarter as it benefits from higher sales and lower operating costs at its U.S. retail business. Sales at the company's U.S. retail pharmacy division rose 5.3 percent to $20.4 billion in the third quarter, accounting for about threequarters of total revenue. Walgreens Boots raised its full-year 2015 profit forecast to $3.70-$3.80 per share from $3.45-$3.65 per share. Analysts, on average, had expected full-year earnings of $3.64. Net income attributable to Walgreens Boots rose to $1.30 billion, or $1.18 per share, in the third quarter from $714 million, or 74 cents per share, a year earlier. Excluding items, the company earned $1.02 per share, beating analysts' average estimate of 87 cents. Net sales rose 48 percent to $28.80 billion. Analysts, on average, had expected sales of $29.6 billion. Ford to move production of Focus, C- Max cars from Michigan Ford Motor will move production of its Focus small cars and C-Max hybrids from its Michigan Assembly Plant near Detroit in 2018, it said, highlighting difficulties U.S. automakers are having building fuelefficient vehicles profitably at home. The announcement casts doubt on the future of one of Ford's largest U.S. factories and comes just days before executives and leaders of the United Auto Workers formally kick off talks toward a new labor agreement. Ford did not say where it would build the next-generation Focus and C-Max for the U.S. market. Spokeswoman Kristina Adamski said the company must make production decisions that allow it to remain competitive. "We actively are pursuing future vehicle alternatives to produce at Michigan Assembly and will discuss this issue with United Auto Workers leadership as part of the upcoming negotiations," she said. Whole Foods revamps director nomination rules, pleasing critic Whole Foods Market adopted new rules to make it easier for groups of small shareholders to run candidates for the company's board of directors, according to a U.S. securities filing that outlines changes sought by a critic. In the filing dated June 29, the Texas-based grocery chain said its board approved bylaw amendments to allow a group of up to 20 shareholders owning at least 3 percent of the company's stock to nominate director candidates and have them included on the company's proxy materials. Whole Foods previously had opposed the changes, known as "proxy access." Regulators initially sided with Whole Foods but then stepped back in January, opening the door for a rush of proxy-access resolutions this year at other companies that have drawn widespread support. Proponents say the changes will make companies more responsive, though some issuers worry about making it easier for short-term activist investors to claim board seats. U.S. bank earnings to be hit by bond trading slump analysts Many Wall Street banks are expected to report underwhelming second-quarter results next week, after light bond market activity in the spring worsened into a downturn by June, analysts said. Investor worries spanned the globe last quarter, ranging from fiscal woes in Greece to crashing stock markets in China, to concerns that the U.S. Federal Reserve will not be able to raise interest rates later this year. As the concerns worsened with less certain outcomes, investors pulled back from markets to avoid getting burned, analysts said. In the 13 days that passed between investor conferences in late May and early June, top Bank of America executives changed their characterization of trading revenue from flat-to-down to simply down. Deutsche Bank analysts downgraded Goldman Sachs Group in late June partly because of expected weakness in trading. Banks' fixed income, currencies and commodities (FICC) trading businesses were hurt the most. T-Mobile adds 2.1 million net customers, offers free calls to Mexico, Canada T-Mobile said that aggressive pricing helped boost its net customer additions in the second quarter by 41 percent over a year ago to 2.1 million, and also offered free calls to and from Mexico and Canada. The company unveiled its "Mobile without Borders" plan, which includes calling, texting and high-speed data services at no extra cost for U.S customers on its "Simple Choice" unlimited service plan traveling in Mexico and Canada. The company has revamped its pricing plans, eliminated service contracts and launched aggressive marketing campaigns to help turn around years of subscriber losses. The company also said its T-Mobile branded postpaid phone net additions, or new customers who pay on a monthly basis, grew 31 percent form a year ago to 760,000 in the second quarter. Investors are keeping a close watch on T-Mobile's subscriber numbers, now up to 58.9 million for the quarter ended June 30, to see if it will overtake No. 3 U.S. carrier Sprint Corp S.N, which finished the first quarter with 57.1 million subscribers. Former Tencent employees, including Alibaba exec, held in graft probe Tencent Holdings said that around half a dozen former employees had been detained by the authorities as part of an ongoing graft investigation. It did not name those detained, but a spokesman for rival Alibaba Group Holding said Patrick Liu, president of the e-commerce giant's digital entertainment unit, who was previously head of Tencent Video, was also taken into custody. "An internal investigation brought to light bribery and corruption among some online video employees," Tencent said in a statement. "The police have been notified and we are waiting for the results." Liu and other former members of Tencent's video business left the company following a leadership reshuffle around 2013, later joining Alibaba. "We understand Patrick Liu with our digital entertainment unit has been detained by the authorities. This issue is related to his time at Tencent and has nothing to do with Alibaba," Alibaba spokesman Bob Christie said. 5

6 MARKET MONITOR Canada's main stock index ended sharply lower on Thursday, with investors shunning most sectors in a broad retreat, while some miners found favor as gold and copper prices rose. The Toronto Stock Exchange's S&P/ TSX composite index was down 0.93 percent, at 14, Pacific Rubiales Energy plunged percent after Mexican industrial conglomerate Alfa SAB de CV and energy investment firm Harbour Energy Ltd dropped their plans to buy the Canadian oil and gas company. Royal Bank of Canada fell 0.16 percent, and Manulife Financial lost 0.31 percent. The dollar fell 0.31 percent, at C$ Top News Coming Up The Canadian jobs market is forecast to have shed 10,000 positions last month, giving back some of the previous month's hefty gain and pushing up the unemployment rate to 6.9 percent. The employment report could be key in shaping investors' expectations around the economy and on what the Bank of Canada might do when it decides on interest rates next week. The economy contracted in the first quarter and at the start of the second, putting at risk the central bank's expectation that growth will regain momentum from the second quarter. Toronto Stock Exchange's S&P/TSX composite Price $ chng % chng GAINERS Labrador Iron Ore Royalty Bellatrix Exploration Silver Standard Resources LOSERS Pacific Rubiales Bombardier Trican Well Services Canadian housing holds strength as rest of economy sags Canadian housing starts rose more than expected in June and new home prices climbed in May, reports showed, suggesting Canada's long housing boom still has momentum even as the rest of the economy struggles. The Canadian Mortgage and Housing Corp said the seasonally adjusted annualized rate of housing starts rose to 202,818 units in June from a downwardly revised 196,981 in May. Analysts had expected a slowdown to 190,000. The building boom in June followed a greater-than-expected 0.2 percent increase in new home prices in May from April, according to a report by Statistics Canada. The price gain outpaced forecasts for a 0.1 percent increase and was spurred by a 0.5 percent rise in Toronto's hot housing market. Financial authorities have spoken of a three-speed housing market, with Toronto and Vancouver sizzling, Canada's energyproducing heartland of Alberta and Saskatchewan suffering due to low oil prices, and the rest of the country relatively stagnant. Despite the overall rise, new home prices were still only 1.2 percent higher than in May K+S investors see Potash Corp deal within reach despite rebuff Shareholders in takeover target K+S say a deal could be done because suitor Potash Corp's main aim is to get control over its German rival's ambitious Canadian project and scale it back. K+S's "Legacy" mine in the prairies in western Canada would be the first built from scratch in the global potash industry in almost 40 years. Suitor Potash should be able to squeeze more value from K+S. According to J.P. Morgan, the German company has an 11 percent market share, plus potentially about 3 percent from its new Canadian mine. Another fund manager, one of the German group's top 15 shareholders, said he believed a bid of around 43 euros could be the basis of an agreement. The shareholders added that Potash Corp -- with its mind on the Legacy project -- can afford to give guarantees for enough German jobs to placate politicians there as well as the target's top management, which by law has to defend the interests of the entire company, not just its owners. Ordinary Canadians turn bankers as shadow mortgage lending rises Canada's housing boom is increasingly driving homebuyers to seek mortgages from private lenders, who demand rates that can be more than five times higher than those charged by the nation's banks. Some analysts say a housing investment is increasingly risky because the pace of price increases has vastly outstripped wage growth, all amid a time of historically low interest rates and record debt levels. To read more, click here 6

7 ANALYSIS & INSIGHT U.S. funds not bailing on China yet amid free-fall in stocks BY DAVID RANDALL AND TIMOTHY MCLAUGHLIN A fter almost a month of watching Chinese stocks in free fall, some U.S. fund managers are buying shares at what they consider distressed prices, though they predict continuing volatility - and perhaps more declines - ahead. The Shanghai Composite Index's sell-off took a break on Thursday as government efforts to prop up the market pushed shares up 5.8 percent, the biggest one-day gain in six years. The Shanghai Composite has tumbled by about a third since mid-june, wiping out about $3 trillion in market value and ending a rally that had previously seen the market double from its June 2014 low. In response, Beijing has cut interest rates and stopped the trading of thousands of stocks, preventing some shareholders from selling their positions in hopes of ending the downturn. The measures have instead helped spread the rout to the Hong Kong-based Hang Seng index, whose listings of socalled H share companies are largely owned by foreign investors and trade at lower valuations, fund managers said. You've had some misguided efforts to cushion the selloff and that's ultimately led to the unintended consequence of making the situation worse, said Charles Wilson, co-portfolio manager of the $2 billion Thornburg Developing World fund who has been adding to his positions in Chinese consumer, internet and utility stocks over the last few days of the selloff. The Hang Seng index fell 5.8 percent Wednesday, its biggest decline so far this year, before rebounding by 3.7 percent on Thursday. The index is still up 3.3 percent for the year to date, while the Shanghai index is up 14.7 percent over the same time. Reuters contacted several prominent mutual fund managers, including the $8.7 billion T Rowe Price Emerging Markets Stock fund, the $1 billion Columbia Global Equity Value fund, and the $76 million Morgan Stanley Global Opportunity fund, who all declined to comment. It's the widest selloff in China, home of the world's second biggest economy, since the global financial crisis of Investors look at computer screens showing stock information at a brokerage house in Shanghai, China. While it is unclear what will happen when Chinese markets resume full trading, most fund managers and analysts expect there to be further losses as sell orders move through the market. Beijing has moved to curb new listings and extracted promises from fund managers and brokerages to buy at least $19 billion in stocks to provide support for blue chip shares. In addition, the China Securities Finance Corp, the country's official margin lender for brokerages, has raised its capital base to 100 billion yuan ($16.1 billion) from 24 billion yuan, in order to stabilize markets. On Wednesday night in China, the securities regulator ordered shareholders with stakes of more than 5 percent from selling shares for the next six months in a bid to halt the plunge in stock prices. This largely does not affect U.S. investors, as there are no institutional funds that own more than 5 percent of any Shenzen or Shanghai-traded issue. OUTLOOK DEPENDS ON BEIJING While U.S. investors say that they remain largely bullish that consumer spending will expand and the fallout from the stock market crisis will be limited to the relatively small upper class of speculators that own A shares, every portfolio manager interviewed by Reuters noted that additional policy changes by Beijing could alter their outlook. At the same time, fund managers like Wilson say the volatility and selloff is making the Chinese market more attractive for long-term investors, even if the market has not hit bottom yet. Emily Alejos, portfolio manager of the $20.8 million Nuveen Tradewinds Emerging Markets fund, noted that companies that focus on domestic consumption in the country are trading at enticing prices. For a long-term investor, some of these valuations [in H shares] are quite compelling, she said, adding that the steep declines are not affecting her outlook for the Chinese economy because the losses in wealth among the relatively small percentage of Chinese who own stocks are not likely to dent the country's expected GDP growth of 7 percent. Frederick Jiang, co-manager of the $724 million Ivy Emerging Markets Equity fund, echoed that sentiment. If you look at the Chinese market, it's a bipolar market with the high growth A shares trading at very expensive valuations and the H shares trading below 10. It's probably the cheapest major market in the world, he said. Jiang, whose fund has large >>> 7

8 >>> positions in the H shares of Chinese companies including Fosun International and Bank of China Ltd, said that he did not see any evidence that the booming stock market affected personal consumption levels in China apart from housing prices in major cities and thus expects the effect of the market decline on spending to be muted. High levels of margin trading coupled with a frenzy among Chinese investors for A shares - those small and mid-cap companies whose ownership is largely restricted to domestic owners - sent valuations above 50 times earnings this year. H shares, by comparison, trade at approximately 10 times earnings. To be sure, finding true price to earnings ratios and other valuation metrics for Chinese companies can be difficult given the scant accounting laws and other forms of investor protection Stretched margin levels are one reason why Robert Bao, portfolio manager of the $2 billion Fidelity China Region Fund, is most worried about China's brokerage sector. What does this mean to their earnings and balance sheets Bao said. And they're very levered to the stock market. Yu Zhang, lead manager of the $5.9 billion Matthew Asia Dividend fund, said that the market decline could lead to more monetary easing in China, which in turn would boost the appeal of high-dividend paying stocks such as insurance companies. We're not sure how long this volatile period will last, but to me the medium- to long-term outlook for China is still trending up, he said. POPULAR BET The market plunge comes at a time when China had become an increasingly popular option for both retail and professional investors in the US. Retail investors have sent $3.4 billion to China-focused mutual funds and ETFs for the year to date, the largest amount since 2009, according to Lipper data. International funds, meanwhile, now have an average of 3.2 percent of assets invested in China, up from 2.2 percent in 2012, while U.S. large cap funds that own Chinese stocks have an average of 2 percent of assets in Hong Kong listed companies, up from 1.3 percent in Even as he expects those fund inflows to reverse course, Jiang, the Ivy fund manager, said that Beijing still has further policy moves to make in order to stabilize the market. When your house is on fire, you find a way to put it out, he said. Then you can talk about the market finding a natural bottom. KEY RESULTS vs. THOMSON REUTERS I/B/E/S ESTIMATES No S&P Companies are scheduled to report for the day RESEARCH SUMMARY Company Name Action Amgen UBS cut rating to neutral from buy citing that the loss of bro-mab puts more emphasis on the base business to continue to deliver upside. Cigna L Brands Viacom Western Union Susquehanna raised target price to $184 from $155 driven by M&A chatter, the recently rejected Anthem proposal, and believing that Anthem could potentially bid a higher price. Cantor cut price target to $84 from $85 and maintained hold rating as June same store sales growth was in line with the consensus forecast. Nomura maintained neutral rating driven by continued Nielsen-measured viewership declines at many of the company s cable networks. Monness Crespi Hardt raised rating to buy from neutral saying that the company has demonstrated consistent C2C performance, which has stabilized around single-digit transaction growth and in the near term faces potential tailwinds from further price cuts. All analysts' estimates are according to Thomson Reuters I/B/E/S The Day Ahead - North America is compiled by Sourav Bose, Nivedita Balu and Hardik Vyas in Bengaluru. For questions or comments about this report, us at: Visit the Thomson Reuters Equities Community Site at: For more information about our products: Send us a sales enquiry at: Thomson Reuters. All rights reserved. This content is the intellectual property of Thomson Reuters and its affiliates. Any copying, distribution or redistribution of this content is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. 8

Over a barrel: Causes and consequences of the fall in oil prices

Over a barrel: Causes and consequences of the fall in oil prices November 14, 2014 Over a barrel: Causes and consequences of the fall in oil prices Executive Summary The $30 fall in oil prices since July reflects greater U.S. supply as well as worries about a significant

More information

Economic Snapshot January 2013

Economic Snapshot January 2013 January 2013 In summary January saw 2013 begin on a good note with strong gains on local markets. In percentage terms the Australian share market rose approximately 5%. This means the market has risen

More information

Market Commentary July 2015

Market Commentary July 2015 Investment Markets in July 2015 Highlights Equities gained in July as markets reacted positively to Greece s capitulation to creditor demands at the start of the month and acceptance of a package of preconditions

More information

Statement to Parliamentary Committee

Statement to Parliamentary Committee Statement to Parliamentary Committee Opening Remarks by Mr Glenn Stevens, Governor, in testimony to the House of Representatives Standing Committee on Economics, Sydney, 14 August 2009. The Bank s Statement

More information

The Impact of Gold Trading

The Impact of Gold Trading The Impact of Gold Trading By: Dan Edward, Market Analyst: FOREXYARD Date: December 2010 In this Issue: I. Introduction A brief history of gold trading II. What affects commodity prices? III. The Global

More information

Global Financials Update April 13, 2012

Global Financials Update April 13, 2012 Global Financials Update April 13, 2012 Global Market Update After posting a fairly strong and consistent rally over much of the last six months, the global equity markets have changed course over the

More information

Global Markets Update Signature Global Advisors

Global Markets Update Signature Global Advisors SIGNATURE GLOBAL ADVISORS MARKETS UPDATE AUGUST 3, 2011 The following comments come from an internal interview with Chief Investment Officer, Eric Bushell. They represent Signature s current market views

More information

Explaining Russia s New Normal

Explaining Russia s New Normal Explaining Russia s New Normal Chris Weafer of Macro-Advisory This Op- Ed appeared on BNE.eu on September 11 2015 One of the slogans now regularly deployed to describe Russia s current economic condition

More information

EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA

EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA EUROSYSTEM STAFF MACROECONOMIC PROJECTIONS FOR THE EURO AREA On the basis of the information available up to 22 May 2009, Eurosystem staff have prepared projections for macroeconomic developments in the

More information

First Quarter 2015 Financial Market Commentary April, 2015. Stocks Hit New Highs in a Volatile Quarter

First Quarter 2015 Financial Market Commentary April, 2015. Stocks Hit New Highs in a Volatile Quarter Hit New Highs in a Volatile Quarter Stock investors in the U.S. and around the globe had plenty to cheer about during the first quarter of 2015 as at least 17 world stock indexes set news highs due to

More information

2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013

2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 2013 global economic outlook: Are promising growth trends sustainable? Timothy Hopper, Ph.D., Chief Economist, TIAA-CREF January 24, 2013 U.S. stock market performance in 2012 * +12.59% total return +6.35%

More information

PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT

PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT PENSIONS INVESTMENTS LIFE INSURANCE PERSONAL RETIREMENT SAVINGS ACCOUNT INVESTMENT REPORT FOR PERSONAL RETIREMENT SAVINGS ACCOUNT () PRODUCTS WITH AN ANNUAL FUND MANAGEMENT CHARGE OF 1% - JULY 201 Thank

More information

Consolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2011 [Japanese Standards]

Consolidated Settlement of Accounts for the First 3 Quarters Ended December 31, 2011 [Japanese Standards] The figures for these Financial Statements are prepared in accordance with the accounting principles based on Japanese law. Accordingly, they do not necessarily match the figures in the Annual Report issued

More information

Oil prices tumble as speculative bubble burst

Oil prices tumble as speculative bubble burst Oil prices tumble as speculative bubble burst The financial and sovereign debt crisis continues to set the agenda for almost every investment decision being taken at the moment. During May the crisis in

More information

FLEXIBLE EXCHANGE RATES

FLEXIBLE EXCHANGE RATES FLEXIBLE EXCHANGE RATES Along with globalization has come a high degree of interdependence. Central to this is a flexible exchange rate system, where exchange rates are determined each business day by

More information

Rhodes Precious Metals Consultancy DMCC Weekly Precious Metals Market Review

Rhodes Precious Metals Consultancy DMCC Weekly Precious Metals Market Review Weekly Precious Metals Market Review Indications only open & closing prices are bids data source Thomson Reuters important disclaimer below times are GMT OTC$Market$Data Date 18.Jan.15 Week$Ending$16/01/2015

More information

China s Unwinding Stock Market Bubble

China s Unwinding Stock Market Bubble China s Unwinding Stock Market Bubble The Chinese equity market is experiencing significant volatility, exhibiting the classic signs of a bubble fueled by changing government regulation. Chinese authorities

More information

Wednesday, December 16, 2015 MAJOR COMMODITIES. News & Development. For Private Circulation Only

Wednesday, December 16, 2015 MAJOR COMMODITIES. News & Development. For Private Circulation Only Wednesday, December 16, 2015 For Private Circulation Only MAJOR COMMODITIES Commodity Expiry High Low Close Change Commodity Expiry High Low Close ($) Change Gold 5-Feb 25419 25190 25266-81 Gold (Oz) Feb

More information

Short-Term Energy Outlook Market Prices and Uncertainty Report

Short-Term Energy Outlook Market Prices and Uncertainty Report February 2016 Short-Term Energy Outlook Market Prices and Uncertainty Report Crude Oil Prices: The North Sea Brent front month futures price settled at $34.46/b on February 4 $2.76 per barrel (b) below

More information

Economic Outlook 2009/2010

Economic Outlook 2009/2010 Economic Outlook 29/21 s Twenty-Eighth Annual Forecast Luncheon Paul R. Portney Dean, Professor of Economics, and Halle Chair in Leadership Marshall J. Vest Director Economic and Business Research Center

More information

THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP

THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP OCTOBER 2013 THE POTENTIAL MACROECONOMIC EFFECT OF DEBT CEILING BRINKMANSHIP Introduction The United States has never defaulted on its obligations, and the U. S. dollar and Treasury securities are at the

More information

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges

Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Further Developments of Hong Kong s Offshore RMB Market: Opportunities and Challenges Zhang Ying, Senior Economist In recent years, as the internationalization of the RMB has been steadily carrying out,

More information

INVESTMENT DICTIONARY

INVESTMENT DICTIONARY INVESTMENT DICTIONARY Annual Report An annual report is a document that offers information about the company s activities and operations and contains financial details, cash flow statement, profit and

More information

Gauging Current Conditions: The Economic Outlook and Its Impact on Workers Compensation

Gauging Current Conditions: The Economic Outlook and Its Impact on Workers Compensation August 2014 Gauging Current Conditions: The Economic Outlook and Its Impact on Workers Compensation The exhibits below are updated to reflect the current economic outlook for factors that typically impact

More information

Balanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth.

Balanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth. Wealth for Life Glossary Aggressive growth fund: A mutual fund that aims for the highest capital gains. They often invest in smaller emerging companies that offer maximum growth potential. Adjustable Rate

More information

MACROECONOMIC OVERVIEW

MACROECONOMIC OVERVIEW MACROECONOMIC OVERVIEW MAY 20 Koç Holding CONTENTS Global Economy... 3 Global Financial Markets... 3 Global Economic Growth Forecasts... 3 Turkey Macroeconomic Indicators... Economic Growth... Industrial

More information

Kusske Financial Management Inc. ADD TAGLINE OR SLOGAN EYE ON THE MARKET. September 2014 Express MARKET DATA

Kusske Financial Management Inc. ADD TAGLINE OR SLOGAN EYE ON THE MARKET. September 2014 Express MARKET DATA OMPANY LOGO HERE Kusske Financial Management Inc. ADD TAGLINE OR SLOGAN 11986 Portland Ave South Burnsville, MN 55337 952-895- 6963 NPH Due Diligence MARKET DATA August 3 Mo. YTD 1 Year S&P 500 3.77% 4.15%

More information

Section I: Reasoning. Section II: Chart Analysis

Section I: Reasoning. Section II: Chart Analysis Section I: Reasoning How many triangles and rectangles can you count in the figure above? 8 triangles and 10 rectangles 10 triangles and 10 rectangles 10 triangles and 6 rectangles 8 triangles and 6 rectangles

More information

Statement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services

Statement by. Janet L. Yellen. Chair. Board of Governors of the Federal Reserve System. before the. Committee on Financial Services For release at 8:30 a.m. EST February 10, 2016 Statement by Janet L. Yellen Chair Board of Governors of the Federal Reserve System before the Committee on Financial Services U.S. House of Representatives

More information

Stocks Fall on Worries about Global Slowdown, Fed Uncertainty. Could this be the end of the bull market? September Fed Decision Dominates the Quarter

Stocks Fall on Worries about Global Slowdown, Fed Uncertainty. Could this be the end of the bull market? September Fed Decision Dominates the Quarter INVESTMENT MANAGEMENT UPDATE A QUARTERLY NEWSLETTER FROM BREMER ASSET MANAGEMENT 4th 2015 Stocks Fall on Worries about Global Slowdown, Fed Uncertainty Could this be the end of the bull market? September

More information

Renminbi Depreciation and the Hong Kong Economy

Renminbi Depreciation and the Hong Kong Economy Thomas Shik Acting Chief Economist thomasshik@hangseng.com Renminbi Depreciation and the Hong Kong Economy If the recent weakness of the renminbi persists, it is likely to have a positive direct impact

More information

MORE UPSIDE FOR THE AUSTRALIAN DOLLAR

MORE UPSIDE FOR THE AUSTRALIAN DOLLAR Dec. 23 Jan. 2 ECONOMY AND STRATEGY 51.879.2529 Clément Gignac Strategist and Chief Economist Stéfane Marion Assistant Chief Economist Paul-André Pinsonnault Senior Fixed Income Economist Marc Pinsonneault

More information

A Checklist for a Bond Market Sell-off

A Checklist for a Bond Market Sell-off A Checklist for a Bond Market Sell-off New Zealand Fixed Income Monthly Commentary February 2013 Christian@harbourasset.co.nz +64 4 460 8309 Just like 2011 and 2012, the start of a new year has again prompted

More information

Introduction To Financial Markets & Investing

Introduction To Financial Markets & Investing Introduction To Financial Markets & Investing Matthew Lawson, M.D. Getting Started A true story Internal Medicine Intern Recently married Husband has Financial Planner assigned through his employer Neither

More information

How Smaller Stocks May Offer Larger Returns

How Smaller Stocks May Offer Larger Returns Strategic Advisory Solutions April 2015 How Smaller Stocks May Offer Larger Returns In an environment where the US continues to be the growth engine of the developed world, investors may find opportunity

More information

Asian Morning Briefing: Dow, S&P 500 Edge Higher

Asian Morning Briefing: Dow, S&P 500 Edge Higher Asian Morning Briefing: Dow, S&P 500 Edge Higher Dan Strumpf November 17, 2014 MARKETS AT A GLANCE SNAPSHOT The Dow industrials and S&P 500 eked out gains on hopes for additional stimulus in Japan and

More information

London Market Snapshot October 2015 10/15

London Market Snapshot October 2015 10/15 London Market Snapshot October 2015 10/15 Global Macro Overview Global equities experienced their sharpest falls since 2011, with most major markets moving into correction territory (a fall of more than

More information

Economic & Market Outlook

Economic & Market Outlook Monthly Portfolio Commentary December 31, 2015 Economic & Market Outlook Stocks rebounded in 2015 s fourth quarter, but provided little reward for the year as a whole. The S&P 500 Index recovered from

More information

CREDIT UNION TRENDS REPORT

CREDIT UNION TRENDS REPORT CREDIT UNION TRENDS REPORT CUNA Mutual Group Economics July 2 (May 2 data) Highlights First quarter data revisions were modest. The number of credit unions was revised down by and assets and loans were

More information

Better domestic economy but lower rates

Better domestic economy but lower rates ZACH PANDL, PORTFOLIO MANAGER AND STRATEGIST 215 PERSPECTIVES INTEREST RATES: FAREWELL, LIQUIDITY TRAP With continued growth and further improvement in labor markets, the Federal Reserve (the Fed) looks

More information

Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014

Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014 Blyth Fund: Fixed Income Currencies & Commodities Coverage Group May 27, 2014 VP: Miraj Rahematpura Associate: John Cherian Analysts: Reinier Eenkema van Dijk, Michael Limandibhratha, Ian Naccarella, David

More information

A Closer Look at the Stock Markets

A Closer Look at the Stock Markets We b E x t e n s i o n 1 C A Closer Look at the Stock Markets This Web Extension provides additional discussion of stock markets and trading, beginning with stock indexes. Stock Indexes Stock indexes try

More information

October 2015. PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy

October 2015. PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy October 2015 Market Volatility likely to Remain Elevated on China Growth Concerns & Fed Rate Uncertainty. Stocks

More information

Section 2 Evaluation of current account balance fluctuations

Section 2 Evaluation of current account balance fluctuations Section 2 Evaluation of current account balance fluctuations Key points 1. The Japanese economy and IS balance trends From a macroeconomic perspective, the current account balance weighs the Japanese economy

More information

Main Economic & Financial Indicators Russian Federation

Main Economic & Financial Indicators Russian Federation Main Economic & Financial Indicators Russian Federation 02 NOVEMBER 201 NAOKO ISHIHARA ECONOMIST ECONOMIC RESEARCH OFFICE (LONDON) T +44-(0)20-777-2179 E naoko.ishihara@uk.mufg.jp Overview The Bank of

More information

Leith Wheeler Canadian Equity Fund

Leith Wheeler Canadian Equity Fund Leith Wheeler Canadian Equity Fund ANNUAL MANAGEMENT REPORT OF FUND PERFORMANCE December 31, 2014 This annual management report of fund performance contains financial highlights, but does not contain complete

More information

General Risk Disclosure

General Risk Disclosure General Risk Disclosure Colmex Pro Ltd (hereinafter called the Company ) is an Investment Firm regulated by the Cyprus Securities and Exchange Commission (license number 123/10). This notice is provided

More information

2013 global equity outlook: Searching for alpha in a stock picker s market

2013 global equity outlook: Searching for alpha in a stock picker s market March 2013 2013 global equity outlook: Searching for alpha in a stock picker s market Saira Malik, Head of Global Equity Research, TIAA-CREF Executive summary The outlook for equity markets is favorable

More information

CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS. Bryan Taylor

CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS. Bryan Taylor CAN INVESTORS PROFIT FROM DEVALUATIONS? THE PERFORMANCE OF WORLD STOCK MARKETS AFTER DEVALUATIONS Introduction Bryan Taylor The recent devaluations in Asia have drawn attention to the risk investors face

More information

MBA Forecast Commentary Lynn Fisher, Mike Fratantoni, Joel Kan

MBA Forecast Commentary Lynn Fisher, Mike Fratantoni, Joel Kan MBA Forecast Commentary Lynn Fisher, Mike Fratantoni, Joel Kan Stronger Data Lead to Upward Revisions in Purchase Originations Forecast for 2015 and 2016 MBA Economic and Mortgage Finance Commentary: July

More information

Opportunity in High Yield Bonds

Opportunity in High Yield Bonds Research Opportunity in High Yield Bonds 2016 Q1 Quarterly Commentary Weyland Capital Management LLC - 22 Deer Street - Portsmouth, New Hampshire 03801 p. 603.433.8994 www.weyland.com This document reflects

More information

Outlook. for theus Dollar

Outlook. for theus Dollar Outlook for theus Dollar The US dollar staged one of its most powerful rallies in August, with the 1 rising nearly 6% 2 that month. The breadth of the rally was also impressive, with the currency rising

More information

Economic Data. November 06, 2015. November 05, 2015

Economic Data. November 06, 2015. November 05, 2015 Economic Data November 05, 2015 Country Economic Data Actual Expected Previous JPY BOJ Minutes for Oct. 6-7 Meeting CHF SECO Consumer Confidence Oct -18-19 EUR German Factory Orders M/M Sep -1.70% 1.00%

More information

Annual Management Report of Fund Performance

Annual Management Report of Fund Performance Statutory Document 2007 Annual Management Report of Fund Performance NexGen Financial Limited Partnership Mutual Funds www.nexgenfinancial.ca The Annual Management Report of Fund Performance (MRFP) contains

More information

The economy. The bond market. The stock market

The economy. The bond market. The stock market The economy Global headlines trump steady U.S. economy The U.S. economy continues to plod its way forward at a slow and steady pace. Short-term setbacks seem to be the norm, but a general sense of an improving

More information

THE STATE OF THE ECONOMY

THE STATE OF THE ECONOMY THE STATE OF THE ECONOMY CARLY HARRISON Portland State University Following data revisions, the economy continues to grow steadily, but slowly, in line with expectations. Gross domestic product has increased,

More information

Large and Small Companies Exhibit Diverging Bankruptcy Trends

Large and Small Companies Exhibit Diverging Bankruptcy Trends JANUARY, 22 NUMBER 2-1 D I V I S I O N O F I N S U R A N C E Bank Trends Analysis of Emerging Risks In Banking WASHINGTON, D.C. ALAN DEATON (22) 898-738 adeaton@fdic.gov Large and Small Companies Exhibit

More information

A VERY DIFFERENT NASDAQ

A VERY DIFFERENT NASDAQ LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS The Nasdaq Composite just hit 5000 today as this report was going to press and is nearing its all-time record closing high of 5048. Even with the Nasdaq

More information

Institutional Investors and the CEE Stock Exchange Group in 2014

Institutional Investors and the CEE Stock Exchange Group in 2014 Institutional Investors and the CEE Stock Exchange Group in 2014 Institutional Investors and the CEE Stock Exchange Group in 2014 The top group of investors in the combined free float of the member exchanges

More information

QUARTERLY INVESTMENT UPDATE

QUARTERLY INVESTMENT UPDATE QUARTERLY INVESTMENT UPDATE December 31, 2015 Quarterly Market Perspectives Global equity markets staged an impressive rally from their late summer swoon across the first two months of the quarter ended

More information

Management s Discussion and Analysis

Management s Discussion and Analysis Management s Discussion and Analysis 6 Financial Policy Sysmex regards increasing its market capitalization to maximize corporate value an important management objective and pays careful attention to stable

More information

5. Foreign Exchange Market

5. Foreign Exchange Market CBC Annual Report 5. Foreign Exchange Market Slight Appreciation of the NT Dollar On a daily average basis, the trade-weighted nominal effective exchange rate index of the NT dollar slightly increased

More information

Euro US dollar. 2015 Quarterly Forecast. In this forecast: April June 2015

Euro US dollar. 2015 Quarterly Forecast. In this forecast: April June 2015 OF CURRENCY CONSULTANCY FOR BUS I NESS GROWTH Euro US dollar Quarterly Forecast April June In this forecast: Review of Eurozone and US economies Looking ahead to the rest of Currency forecast for Euro

More information

Why a Floating Exchange Rate Regime Makes Sense for Canada

Why a Floating Exchange Rate Regime Makes Sense for Canada Remarks by Gordon Thiessen Governor of the Bank of Canada to the Chambre de commerce du Montréal métropolitain Montreal, Quebec 4 December 2000 Why a Floating Exchange Rate Regime Makes Sense for Canada

More information

Project LINK Meeting New York, 20-22 October 2010. Country Report: Australia

Project LINK Meeting New York, 20-22 October 2010. Country Report: Australia Project LINK Meeting New York, - October 1 Country Report: Australia Prepared by Peter Brain: National Institute of Economic and Industry Research, and Duncan Ironmonger: Department of Economics, University

More information

What is stock? What drives stock prices? To introduce what Stock Index CFD is, we d like to introduce to you what stock. trading is first.

What is stock? What drives stock prices? To introduce what Stock Index CFD is, we d like to introduce to you what stock. trading is first. To introduce what Stock Index CFD is, we d like to introduce to you what stock trading is first. What is stock? our private enterprise system. They spur job creation and economic growth while creating

More information

Monthly Economic Dashboard

Monthly Economic Dashboard RETIREMENT INSTITUTE SM Economic perspective Monthly Economic Dashboard Modest acceleration in economic growth appears in store for 2016 as the inventory-caused soft patch ends, while monetary policy moves

More information

Consolidated Nine-month Report of Baader Bank AG as of 30 September 2012

Consolidated Nine-month Report of Baader Bank AG as of 30 September 2012 Consolidated Nine-month Report of Baader Bank AG as of 30 September 2012 Overview of key figures EARNINGS 1 Jan. - 30 Sept. 2012 1 Jan. - 30 Sept. 2011 Change % Net interest income thou. 4.06 4.66-13.0

More information

The U.S. current account deficit has grown steadily since 1991,

The U.S. current account deficit has grown steadily since 1991, Is The Large U.S. Current Account Deficit Sustainable? By Jill A. Holman The U.S. current account deficit has grown steadily since 1991, hitting record levels of 3.6 percent of GDP in 1999 and 4.4 percent

More information

Trading Education. July 2014. The Five Key Elements of CFD Trading. The Five Key Elements of CFD Trading INTRODUCTION

Trading Education. July 2014. The Five Key Elements of CFD Trading. The Five Key Elements of CFD Trading INTRODUCTION READ OUR FULL RISK WARNING. Spread betting, Contracts for Differences (CFDs) & Foreign Exchange (FX) are leveraged products & carry a high level of risk to your capital as prices might move rapidly against

More information

Mawer Canadian Bond Fund. Interim Management Report of Fund Performance

Mawer Canadian Bond Fund. Interim Management Report of Fund Performance Interim Management Report of Fund Performance For the Period Ended June 30, 2015 This interim management report of fund performance contains financial highlights but does not contain either interim or

More information

UK Economic Forecast Q3 2014

UK Economic Forecast Q3 2014 UK Economic Forecast Q3 2014 David Kern, Chief Economist at the BCC The main purpose of the BCC Economic Forecast is to articulate a BCC view on economic topics that are relevant to our members, and to

More information

UK Economic Forecast Q1 2015

UK Economic Forecast Q1 2015 UK Economic Forecast Q1 2015 David Kern, Chief Economist at the BCC The main purpose of the BCC Economic Forecast is to articulate a BCC view on economic topics that are relevant to our members, and to

More information

Economic Data. November 20, 2015. November 19, 2015

Economic Data. November 20, 2015. November 19, 2015 Economic Data November 19, 2015 Country Economic Data Actual Expected Previous JPY BoJ Monetary Policy Statement NZD PPI Inputs Q/Q Q3 1.60% 0.10% -0.30% NZD PPI Outputs Q/Q Q3 1.30% 0.20% -0.20% JPY Trade

More information

Gold Long-Term Outlook

Gold Long-Term Outlook Gold Long-Term Outlook A comprehensive study of the global gold market including projections through 2021 of gold supply by mine and scrap, demand by end-use, and prices. New This Year Dedicated Section

More information

Fixed Income Market Comments

Fixed Income Market Comments Strategy Fixed Income Weekly Fixed Income Market Comments Weaker economic data and comments from a couple of Federal Reserve Board Governors, who tend to not to speak often as the Federal Reserve District

More information

Answers to Concepts in Review

Answers to Concepts in Review Answers to Concepts in Review 1. (a) In the money market, short-term securities such as CDs, T-bills, and banker s acceptances are traded. Long-term securities such as stocks and bonds are traded in the

More information

Commodities not finding much traction despite USD weakness

Commodities not finding much traction despite USD weakness Commodities not finding much traction despite USD weakness Commodities continued to show weakness into the second week of 2013 despite rising stock markets and a falling US dollar. Investors are generally

More information

Consolidated sales of 6,347 million euros, up 10% on a like-for-like basis (7% as reported)

Consolidated sales of 6,347 million euros, up 10% on a like-for-like basis (7% as reported) 14.18 Order intake surged 25% to 9.1 billion euros Sales came in at 6.3 billion euros, up 10% like for like (7% as reported) Operating margin (1) up 15% to 442 million euros, or 7.0% of sales Net income

More information

Readiness Activity. (An activity to be done before viewing the program)

Readiness Activity. (An activity to be done before viewing the program) Knowledge Unlimited NEWS Matters The Stock Market: What Goes Up...? Vol. 3 No. 2 About NewsMatters The Stock Market: What Goes Up...? is one in a series of NewsMatters programs. Each 15-20 minute program

More information

The U.S. Economy after September 11. 1. pushing us from sluggish growth to an outright contraction. b and there s a lot of uncertainty.

The U.S. Economy after September 11. 1. pushing us from sluggish growth to an outright contraction. b and there s a lot of uncertainty. Presentation to the University of Washington Business School For delivery November 15, 2001 at approximately 8:05 AM Pacific Standard Time (11:05 AM Eastern) By Robert T. Parry, President and CEO of the

More information

Preparing for 2015 Housing Market Opportunities

Preparing for 2015 Housing Market Opportunities January U.S. Economic & Housing Market Outlook Preparing for 2015 Housing Market Opportunities As we enter 2015, the U.S. economy and housing markets are prepared for a robust start. Unlike one year ago,

More information

HSBC Mutual Funds. Simplified Prospectus June 15, 2016

HSBC Mutual Funds. Simplified Prospectus June 15, 2016 HSBC Mutual Funds Simplified Prospectus June 15, 2016 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: Cash and Money Market

More information

Schwab Target Funds. Go paperless today. Simplify your financial life by viewing these documents online. Sign up at schwab.

Schwab Target Funds. Go paperless today. Simplify your financial life by viewing these documents online. Sign up at schwab. Annual report dated October 31, 2015, enclosed. Schwab Target Funds Schwab Target 2010 Fund Schwab Target 2015 Fund Schwab Target 2020 Fund Schwab Target 2025 Fund Schwab Target 2030 Fund Schwab Target

More information

Markit Global Business Outlook Survey

Markit Global Business Outlook Survey News Release EMBARGOED UNTIL: 00:01 (UK), 14 July 2014 Markit Global Business Outlook Survey Worldwide business confidence wanes Global optimism slips from two-year high Waning confidence centred on eurozone

More information

ECONOMY is GEARING: #7 Bank Lending & #8 State Jobs!!!

ECONOMY is GEARING: #7 Bank Lending & #8 State Jobs!!! ECONOMY is GEARING: #7 Bank Lending & #8 State Jobs!!! Total U.S. Bank Loans State Government Total Tax Collections vs. State Government Employment ECONOMY is GEARING: #9 Net Exports!!! U. S. Real Exports

More information

Financial Analysis Project. Apple Inc.

Financial Analysis Project. Apple Inc. MBA 606, Managerial Finance Spring 2008 Pfeiffer/Triangle Financial Analysis Project Apple Inc. Prepared by: Radoslav Petrov Course Instructor: Dr. Rosemary E. Minyard Submission Date: 5 May 2008 Petrov,

More information

BANK OF ISRAEL Office of the Spokesperson and Economic Information. Report to the public on the Bank of Israel s discussions prior to deciding on the

BANK OF ISRAEL Office of the Spokesperson and Economic Information. Report to the public on the Bank of Israel s discussions prior to deciding on the BANK OF ISRAEL Office of the Spokesperson and Economic Information September 7, 2015 Report to the public on the Bank of Israel s discussions prior to deciding on the General interest rate for September

More information

Stocks: An Introduction

Stocks: An Introduction Stocks: An Introduction Page 1 of 7, see disclaimer on final page Stocks: An Introduction What are stocks? Stock equals ownership A stock represents a share of ownership in a business. When you hold one

More information

4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital

4. The minimum amount of owners' equity in a bank mandated by regulators is called a requirement. A) reserve B) margin C) liquidity D) capital Chapter 4 - Sample Questions 1. Quantitative easing is most closely akin to: A) discount lending. B) open-market operations. C) fractional-reserve banking. D) capital requirements. 2. Money market mutual

More information

Why the Lack of Inflation Is a Problem

Why the Lack of Inflation Is a Problem Why the Lack of Inflation Is a Problem May 21, 2013 by Chris Maxey, Ryan Davis of Fortigent Equity Markets Keep Pace Equity markets continued on their tear last week, rising for the fourth straight week.

More information

Adjusting to a Changing Economic World. Good afternoon, ladies and gentlemen. It s a pleasure to be with you here in Montréal today.

Adjusting to a Changing Economic World. Good afternoon, ladies and gentlemen. It s a pleasure to be with you here in Montréal today. Remarks by David Dodge Governor of the Bank of Canada to the Board of Trade of Metropolitan Montreal Montréal, Quebec 11 February 2004 Adjusting to a Changing Economic World Good afternoon, ladies and

More information

Challenging Conventional Wisdom

Challenging Conventional Wisdom with Rick Golod GLOBAL INVESTMENT INSIGHT August 7, 2015 Challenging Conventional Wisdom Rick Golod Chief Global Strategist It wasn t just a difficult month for investors; it s been a difficult year. Perhaps

More information

CANADA AND U.S. AUTO SALES: ROOM FOR FUR- THER GROWTH? October 2014. Factors supporting the U.S. sales outlook: Employment Growth

CANADA AND U.S. AUTO SALES: ROOM FOR FUR- THER GROWTH? October 2014. Factors supporting the U.S. sales outlook: Employment Growth 93619 CANADA AND U.S. AUTO SALES: ROOM FOR FUR- THER GROWTH? October 2014 Canadian and U.S. auto sales have strengthened significantly from recession lows. Canadian new motor vehicle sales have surprised

More information

Consolidated Financial Results for the First Two Quarters of the Fiscal Year Ending March 31, 2016 (Japan GAAP)

Consolidated Financial Results for the First Two Quarters of the Fiscal Year Ending March 31, 2016 (Japan GAAP) Consolidated Financial Results for the First Two Quarters of the Fiscal Year Ending March 31, 2016 (Japan GAAP) Name of Listed Company: Yokogawa Electric Corporation (the Company herein) Stock Exchanges

More information

Chapter Seven STOCK SELECTION

Chapter Seven STOCK SELECTION Chapter Seven STOCK SELECTION 1. Introduction The purpose of Part Two is to examine the patterns of each of the main Dow Jones sectors and establish relationships between the relative strength line of

More information

Economy, Capital Markets & Strategy

Economy, Capital Markets & Strategy Sébastien Mc Mahon, CFA Economist Member, Asset Mix Committee Economy, Capital Markets & Strategy 2014 National Business Conference October 2014 1 October 23, 2014 Disclaimer Opinions expressed in this

More information

ECONOMIC AND MARKET COMMENTARY

ECONOMIC AND MARKET COMMENTARY OUR MISSION Smith Shellnut Wilson is a registered investment advisor* specializing in managing investment portfolios for banks, individuals, corporations, foundations and public entities. Smith Shellnut

More information

Please note the Weekly Market Commentary will be on hiatus until January 5, 2014.

Please note the Weekly Market Commentary will be on hiatus until January 5, 2014. Weekly Market Commentary: December 16, 2013 Will 2014 Bring An End to Central Bank Intervention? Please note the Weekly Market Commentary will be on hiatus until January 5, 2014. Economic Data - Previous

More information

Why Are Government Bond Yields Still Low, and Are They Going up Any Time Soon?

Why Are Government Bond Yields Still Low, and Are They Going up Any Time Soon? September 015 MONTHLY MARKET INSIGHT Why Are Government Bond Yields Still Low, and Are They Going up Any Time Soon? The fear of rising interest rates, which has clouded investors psyches for years, has

More information