The dollar and euro fell against the yen in Asia Tuesday on selling by Japanese exporters to settle their accounts, with trading direction for the rest of the day likely to depend on stock movements, dealers said.
As of 0450 GMT, the dollar stood at JPY92.72 from JPY92.97 in London Monday, while the euro was at JPY132.90 from JPY133.54. The New York market was closed Monday for a holiday. Although the overall volume of trade in Asia was thin, some Japanese exporters and short-term hedge funds sold dollars and euros, dealers noted.
The Euro continued to be buoyant as fresh gains in Asian stocks sent EURJPY higher and Economic data in Europe underpinned gains into the USD1.4300's. July German Industrial Orders at 3.5% vs. 2% forecast. EURGBP was supported on GBP concerns ahead of the UK rate decision Thursday.
GBP peaked at USD1.6378 around the same time, but underperformed thereafter to USD1.6327. The Pound had a large bounce going into Europe as news of a USD16bn takeover offer of Cadbury from Kraft led to speculation of substantial M&A buying. This enthusiasm waned as the offer was rejected and attention turned to the MPC rate announcement on Thursday which has the potential to create further GBP downside if the Asset Purchase program is increased again from the current 175bn pounds.
The Australian dollar Tuesday continued to nudge higher while bond futures followed gains in Treasurys as dealers await a raft of top tier domestic data for the latest health check on the economy.
Market expectation
EURUSD breaks above Monday's high at USD1.4363, with reported stops above USD1.4365 targeted and triggered to take rate on to USD1.4371. Traders note major German name buys behind the move up. Next offers seen placed from USD1.4380 through to USD1.4400, with larger stops noted above here, a break to expose much reported barrier at USD1.4450.
Topping the list of releases Wednesday is housing finance, retail sales and consumer confidence, all of which will be crucial in feeding the debate on whether the Reserve Bank of Australia tightens policy as soon as next month.
Economists expect retail sales to have grown 0.5% in July, but housing finance is forecast to drop 2.0%.
Among the data Friday is China's industrial output. Economists surveyed forecast on average that output may increase by 12.0% in August from a year earlier, faster than July's 10.8% increase.
If results are weaker than expected and spur a fall in Chinese stock prices, the dollar may target JPY90 and the euro may fall below JPY130.00, some dealers said. On the other hand, if results are positive, currency market reaction will likely be limited because players have already factored in such outcomes, dealers noted.
Sunday, March 7, 2010
Daily Forex Overview Mon, Sep 7 2009
The euro rose modestly against the yen and dollar in Asia Monday, as stronger regional share markets encouraged short-term players to buy the risk-sensitive common currency.
If global share markets remain firm this week, the euro could continue edging up, traders said.
In Asia Monday, regional bourses strengthened, with China's benchmark Shanghai Composite Index up 1.60% midday and Japan's Nikkei 225 Stock Average up 1.0%. That came after the Dow Jones Industrial Average's closed up 1.0% Friday, which boosted the euro against its rivals.
But while the dollar fell against other rivals Monday, it gained slightly against the yen, trading hands at JPY93.15 at 0450 GMT compared to JPY93.03 late Friday in New York. Short-term players were buying the currency, prompted by the stronger regional equities and a rise in U.S. long-term interest rates, with the benchmark 10-year Treasury yield up to 3.43% Friday.
Better than forecast US jobs data, along with an absence of talk about a coordinated withdrawal of stimulus measures at the weekend FinMin G20 meeting (with the US expected to lag others in this eventual move) allowed euro-dollar to edge to overnight highs at USD1.4337 with pressure remaining into early Europe, the rate extending the move to USD1.4339.
The British pound remains steady vs. the dollar after the US jobs report for August. The pound's steadiness can also be attributed to British construction Q2 output volume falling by 0.5% which is a vast improvement from the estimated 2.2% decline, prompting speculation about a possible upward revision to GDP in the quarter.
The Australian dollar continue to break loose from its recent trading range Monday, breaching its highest levels in a year as firmer equities and investor appetite pushed the commodity currency into new terrain.
Market expectation
The euro is gaining against the U.S. dollar, UK pound and yen in rising along with stocks, though major pairs were still confined to their well-established summer ranges.
For EURUSD offers seen placed toward USD1.4350, and traders suggesting a fading toward this level on any extended rally. Above here and further offers seen placed toward USD1.4380. Traders remind that the USD1.3950/1.4450 dnt structure remains in place (matures Sep17) and expected to draw protection if either side threatened. Bids USD1.4290/85, a break of USD1.4280 to open a deeper move toward USD1.4250 ahead of USD1.4220 with stronger interest remaining in place around USD1.4190 (Friday low USD1.4191).
Dealers are focused on a raft of top tier domestic data due later this week, including retail sales and employment numbers, which could make or break a case for an October rate hike by the Reserve Bank of Australia.
Players will be watching U.S. Treasury auctions totaling USD70 billion this week for cues on interest rate moves, dealers said.
European stocks are expected to open higher Monday, following a solid finish on Wall Street Friday and an upbeat session in Asia Monday, after Friday's U.S. employment data pleased the market.
If global share markets remain firm this week, the euro could continue edging up, traders said.
In Asia Monday, regional bourses strengthened, with China's benchmark Shanghai Composite Index up 1.60% midday and Japan's Nikkei 225 Stock Average up 1.0%. That came after the Dow Jones Industrial Average's closed up 1.0% Friday, which boosted the euro against its rivals.
But while the dollar fell against other rivals Monday, it gained slightly against the yen, trading hands at JPY93.15 at 0450 GMT compared to JPY93.03 late Friday in New York. Short-term players were buying the currency, prompted by the stronger regional equities and a rise in U.S. long-term interest rates, with the benchmark 10-year Treasury yield up to 3.43% Friday.
Better than forecast US jobs data, along with an absence of talk about a coordinated withdrawal of stimulus measures at the weekend FinMin G20 meeting (with the US expected to lag others in this eventual move) allowed euro-dollar to edge to overnight highs at USD1.4337 with pressure remaining into early Europe, the rate extending the move to USD1.4339.
The British pound remains steady vs. the dollar after the US jobs report for August. The pound's steadiness can also be attributed to British construction Q2 output volume falling by 0.5% which is a vast improvement from the estimated 2.2% decline, prompting speculation about a possible upward revision to GDP in the quarter.
The Australian dollar continue to break loose from its recent trading range Monday, breaching its highest levels in a year as firmer equities and investor appetite pushed the commodity currency into new terrain.
Market expectation
The euro is gaining against the U.S. dollar, UK pound and yen in rising along with stocks, though major pairs were still confined to their well-established summer ranges.
For EURUSD offers seen placed toward USD1.4350, and traders suggesting a fading toward this level on any extended rally. Above here and further offers seen placed toward USD1.4380. Traders remind that the USD1.3950/1.4450 dnt structure remains in place (matures Sep17) and expected to draw protection if either side threatened. Bids USD1.4290/85, a break of USD1.4280 to open a deeper move toward USD1.4250 ahead of USD1.4220 with stronger interest remaining in place around USD1.4190 (Friday low USD1.4191).
Dealers are focused on a raft of top tier domestic data due later this week, including retail sales and employment numbers, which could make or break a case for an October rate hike by the Reserve Bank of Australia.
Players will be watching U.S. Treasury auctions totaling USD70 billion this week for cues on interest rate moves, dealers said.
European stocks are expected to open higher Monday, following a solid finish on Wall Street Friday and an upbeat session in Asia Monday, after Friday's U.S. employment data pleased the market.
Weekly Trading Update - August 31 - September 04 2009
Well thankfully it's been a much more profitable week this week after two winning trades on the EUR/GBP and GBP/USD pairs. There was also an opportunity to trade the EUR/USD pair as well this week but despite the daily Supertrend indicating a bullish trend, I'm reluctant to go long at the moment because I think this pair's heading lower in the next week or so. Plus there's been a lot of sideways action on this pair recently which is enough to put me off.
Anyway back to my trading results for this week and the first trade was on the GBP/USD pair on Tuesday afternoon. I had been waiting for this pair to break downwards and it do so convincingly during one 4-hour period. So as a result of the EMAs crossing downwards I entered on a pull-back at exactly 1.6250.
Thankfully the price continued downwards and I closed half the position for 50 points and let the other half run, moving my stop loss down to break-even. Later on the price had moved down to around 1.6125 so as it was getting late I moved my stop loss to 1.6150 and my target price to 1.6050 and let it run overnight. Sadly the stop loss was the one that got triggered but it was still a decent enough profit.
Incidentally the GBP/USD pair looks as if it may be about to cross downwards before the day is out, but I'm hoping it will hold on until next week because these crossovers often have much more momentum behind them at the start of the trading week.
The other trade was on the EUR/GBP pair and if you've been reading my blog this week you will know all about this trade already because I discussed it in some detail in this blog post. As I mentioned at the time this was a low-risk high-reward trade, and thankfully the 30 point stop loss wasn't triggered and I managed to bank a healthy profit of 74 points.
It has actually dropped another 40 points since then but I was so bored watching this pair that I closed out the position shortly after it hit my initial price target.
Nevertheless it's been a profitable enough week on the whole.
Anyway back to my trading results for this week and the first trade was on the GBP/USD pair on Tuesday afternoon. I had been waiting for this pair to break downwards and it do so convincingly during one 4-hour period. So as a result of the EMAs crossing downwards I entered on a pull-back at exactly 1.6250.
Thankfully the price continued downwards and I closed half the position for 50 points and let the other half run, moving my stop loss down to break-even. Later on the price had moved down to around 1.6125 so as it was getting late I moved my stop loss to 1.6150 and my target price to 1.6050 and let it run overnight. Sadly the stop loss was the one that got triggered but it was still a decent enough profit.
Incidentally the GBP/USD pair looks as if it may be about to cross downwards before the day is out, but I'm hoping it will hold on until next week because these crossovers often have much more momentum behind them at the start of the trading week.
The other trade was on the EUR/GBP pair and if you've been reading my blog this week you will know all about this trade already because I discussed it in some detail in this blog post. As I mentioned at the time this was a low-risk high-reward trade, and thankfully the 30 point stop loss wasn't triggered and I managed to bank a healthy profit of 74 points.
It has actually dropped another 40 points since then but I was so bored watching this pair that I closed out the position shortly after it hit my initial price target.
Nevertheless it's been a profitable enough week on the whole.
Archive for the Forex News
Most of the Asian shares end higher
May 6th, 2009
Majority of the Asian markets closed higher along with the miners and financial stocks growing with the steadiness signs in the worldwide economy. Mr. Jeffrey who is an analyst was of the view that over the last eight weeks they have made a decent amount of money and theye are making their best efforts to keep that amount. He also added that for the longer term they are positive and for the near term theye are quite watchful.
Hang Seng Index of Hong Kong added 0.2 percent ending at 16,430.07; it rose for a fourth straight session and expanding a 5.4 percent. Australia’s S&P/ASX 200 increased 0.1 percent; New Zealand NZX increased 1.8 percent. As for the afternoon trading India’s Sensex also increased 0.3 percent following a soaring 6.2 percent in the prior session while Straits Times Index of Singapore added 2.2 percent.
Taipei and Shanghai registered advancement with the China’s cabinet passed a plan for making developments in the country’s coastal economic zone close to Taiwan. HSBC Holdings shares increased 1.8 percent in Hong Kong following a report in South China Morning Post that it anticipates to be amongst the first ones to register shares in Shanghai.
The airlines in Shanghai continuously concentrated on making advancements on easing the distress of swine flu along with Air China increasing 4.4 percent and China Southern Airlines added 2 percent. Some of the analysts are anticipating the profit-taking to soon take place in Taiwan, Hong Kong, and China. Mr. Johnson who is the consultant president of Marbo Securities was of the view that foreign institutional shareholders will probably carry on buying. Dow Jones Industrial Average futures were lately down 33 points in screen trade.
According to the available data from China and America, it has projected a development lately, though some of the experts have advised to take care seeing the pace of the stock markets. On Thursday, the shareholders were still waiting the outcome of American bank stress test. The officials at Wall Street Journal were likely to direct about ten out of nineteen banks tested for boosting up their capital. One of the experts at UBS was of the view that the rally in risk assets is not showing any signs of stopping.
In Sydney, Yanzhou Coal Mining added 2.3 percent, while Macarthur Coal ended up 2.5 percent, and China Coal Energy increased 3.5 percent in Hong Kong. Capital elevating worries were in progress in Australia, limiting the market profits following BlueScope Steel planned to increase 2.67 billion Australian dollars. It is evident that that stock got discarded from the trade. The stocks joined with the economic cycle increased in Sydney with Rio Tinto adding 5.4 percent and Macquarie Group added 3.6 percent.
After Cosco received its opening job for this fiscal year, Singapore’s subdued shares related to shipping increased. Cosco increased 0.8 percent along with Neptune Orient Lines adding 3.6 percent.
In six months Mexico’s Peso rises to the maximum
May 6th, 2009
Peso of Mexico rose to the maximum in more than six months after Mr. Jose who is the Health Minister of Mexico said that the affect of swine flu has increased. This has strengthened the hope that with the reopening of the business the economy will get better. The Peso rose to 13.2338 which is a climb of 4.1 percent. Since October 13 this was Peso’s highest and it also registered the highest in opposition to the dollar amongst the sixteen of the world’s best currencies.
Mr. Salvador who is the head of the fixed-income planning at Banco Santander SA in Mexico City said that the fact cannot be denied that the country’s economy will get better and this will also be good for the Peso.
Mr. Jose said that though the swine flu has been responsible for 25 deaths but now its affects are decreasing. In a television interview the President of Mexico Mr. Felipe said that the exact loss by the outbreak of swine flu can not be yet calculated, but economy’s some parts will make progress very soon and this week the situation will again become normal. The rally of Peso removed last week’s downfall of 3.1 percent which was encouraged by the outburst of swine flu and it would also affect the economy.
Mr. Dirk and Mr. Chandran of Citigroup Inc. in a report have suggested the investors to purchase the Mexican currency in opposition to the dollar. They also said that it appears that swine flu has gone. As per a survey from a bank, the economists believed that the Peso will become weak this year as compared to their earlier expectation. By the end of the year 2009 the Peso will fall to 13.64 per dollar as compared to the earlier estimate of 14.24.
This survey also concluded that this year GDP (Gross Domestic Product) will come down by four percent. The early prediction by the economists forecasted that the economy would come down by 3.2 percent. Mr. Gabriel (chief economist for Mexico and Chile at UBS AG) in a note to the clients wrote that the economists might just decrease their GDP prediction in the next month survey keeping in mind the outbreak of swine flu.
Mr. Agustin who is the Finance Minister made an approximation last week that the fear of swine flu might decrease GDP by 0.2 percent in the year 2009. According to a statement made by Mexico’s finance ministry that Mexico might have to face a downfall of 2.7 percent with the slump in America. According to the ministry, in the first quarter Mexico probably shrank six percent which is a major quarterly downfall in six years.
At a local auction Banco de Mexico purchased pesos worth hundred million dollars. Since October it has reportedly spent $23.4 billion to support Peso from its foreign reserves.
European stocks opens high
May 6th, 2009
With the worldwide risk appetite seems to be cautiously making a comeback European stocks are likely to open high as they are backed up by impressive performance both in Asia and America. According to Mr. Matt who is a dealer at CMC Markets, oil reached a five month high and this will be a good sign for the petrochemicals market even as some positive Chinese economic data is also making an addition to all this.
Mr. Matt called FTSE 100 index of London, which is reopening after a long time gap, up with 72.7 points at 4316.0. DAX index of Frankfurt was called down 6.4 pints at 4893.0 and CAC-40 index in Paris up by three points at 3241.0. He also observed one more thing which is the fading of the fear of swine flu as victims are still not informed properly outside Mexico.
In the meantime the share markets of Asia were also on the higher side with the coal miners and cyclical stocks growing in the worldwide economy. Though the trading was low with the markets of Thailand, Japan, and South Korea stayed closed. In Taiwan shares witnessed a growth of 0.7 percent after gaining twelve percent while Shanghai Composite Index added 0.3 percent with the approval of the plan of developing coastal economic area near Taiwan. Hang Seng Index of Hong Kong was 0.1 percent higher.
On Monday American stocks increased with the traders making a bet that economic recovery was soon approaching, providing desirable lift for the commodity processors and banking sector. The Standard & Poor’s 500 also shifted positive for the current year and it was closed at the topmost position since January 8th, it rose 29.71 points at 907.23. The Dow Jones Industrial Average increased 214.32 at 8426.72. This was their biggest close since January 13th. The Nasdaq Composite Index increased 44.34 and it closed at 1763.54 which was is biggest close since November 4th.
As for the currencies, the euro following its fresh run up at $1.3371 felt weaker from $1.3404. In the recent weeks the recent currency has rallied in the middle of a worldwide improvement in the risk appetite but on the other hand the euro zone is staying behind. Mr. Jan who is the head of Asian research at Rabobank was of the view that majority of the people will be concerned because of the development prospects in the euro zone didn’t improved as it did in America.
Mr. David who is a market analyst was of the view that the prices of the oil will probably test the $55 barrel level prior to facing the confrontation. In the meantime, the June bund futures agreement begun at 121.97, it came down by 0.02. In a different place spot gold was over nine hundred dollars a troy ounce, after a very impressive performance in New York.
Brazil’s Real witnessed a six month increase
May 6th, 2009
Encouraged by a rally in the stocks and services across the world the Real of Brazil increased a six month high. The currency became stronger 2.4 percent at 2.1195 per American dollar which is the maximum since November 10. The real rose 9.1 percent in the current year which is considered the finest performance amongst the other currencies of the world after rand of South Africa.
Mr. Mario who is the foreign exchange manager at Sao Paulo based Fair Corretora de Cambio was of the view that with the investors making a return to the stock market of Brazil, it will benefit the real. For the first time the Bovespa stock index increased more than fifty thousand since September with the rumors of growth outlook getting better for two of the country’s main export markets and it will encourage for services.
The real also became stronger with the rally in services prices and country’s two-third exports comprises of iron ore and raw materials. Mr. Jorge who is a foreign exchange manager at Rio de Janeiro-based Banco Prosper SA, the bouncing back of the services prices means extra income from the foreign deals and it will only increase the currency.
According to the Trade Ministry, the trading in Brazil increased from March’s $1.76 billion to $3.70 billion in April as China increased the imports of Brazilian services. According to a survey by some of the best analysts, the outcome was more than the median $3.13 billion. The survey conducted by the central bank the analysts make a prediction of 0.29 percent reduction in Brazilian economy in the current year as compared to the downfall of 0.38 percent which was approximated last week.
In nine months for the first time, the manufacturing developed in China while the American building expenditure concluded a six-month downfall. At an auction the central bank of Brazil settled to lend $804 million of a total of $1 billion to the local banks from foreign reserves. As per a statement the bank acknowledged 13 bids. The yield for Brazil zero-coupon bonds due January 2010 increased three basis points to 9.78 percent.
Berkshire Hathaway holds their annual shareholders meeting
May 6th, 2009
The annual shareholder meeting of Berkshire Hathaway Inc was an assortment of both predictable and unpredictable as Mr. Warren who is the chairman and Mr. Munger who is the vice chairman responded to the queries of investors. This years’ convention was a little different from the previous ones as this time around to avoid any individual query, the reporters have pre-screened the questions. As in the previous meetings Mr. Warren was asked about his relationship with Jesus and what he thinks about the game of baseball.
Mr. Warren who is 78 years old presided over the session along with different sayings, viewpoints, and also offered opening outline of how the company performed in the first quarter. According to the reports the entire results will be listed for next week.
The main focus of the annual meeting was mainly revolving around the matter that who will be taking over Berkshire Hathaway after Mr. Warrant mortality and the investors seemed also quite concerned about it. Mr. Warren didn’t mentioned any name that who will be succeeding the positions of CEO (Chief Executive Officer) and CIO (Chief Investment Officer) but the did mentioned about the candidature and about their performance. First quarter operating earnings of Berkshire Hathaway came down from $1.9 billion to $1.7 billion last year.
Mr. Warren confirmed that over last year the company’s book value per share came down by six percent and the reason behind is because of the downfall in the investments value.
Losses and profits from unoriginal are mainly shown in the net income which was not disclosed. Mr. Warren always has made a selection for those stocks which will be having everlasting value. While most of his investments include utilities and insurance, such firms and non-insurance working firms have experienced terrible economic condition. Early in the meeting one vital question which was asked to Mr. Warren was the fresh Moody’s reduction of Berkshire from Aaa to Aa2. Mr. Warren expressed his confidence that the downfall will not be making any difference to the company.
The board of Berkshire has selected four contenders, both externally and internally, for the position of Chief Investment Officer and three internal contenders for the Chief Executive Officer position. Mr. Howard who is the son of Mr. Warren will be handling the Berkshire’s management and taking over as the Chairman along with fifty billion dollar portfolio will get separated between the chairman, CIO and CEO. Four of the deserving contenders for the post of investment officer were unsuccessful to face 38% downfall S500 Index of S&P in the year 2008.
Uncertainty still prevails whether the profits will continue even after the rise in Asian shares
April 13th, 2009
With the preceding week’s profits on Monday the Asian shares witnessed a high once more along with the rise in the financial stocks through the turn down of the service stocks in Australia. The Nikkei of Japan rose to 2.3 percent, NZX-50 of New Zealand had an addition of 0.5 percent, and Kospi of South Korea gained a high by 1.1 percent. But some of the market analysts were not confident about the continual of the market mood due to the economic slump in America.
One of the experts at RBC Capital Markets was the of the view that with some good days in American market previous week the risk seekers will be able to have their first victory after so many months. Last week The Dow Jones Industrial Average increased to 9.01 percent. No main feedback is observed to the remarks made by Mr. Ben who is the Chairman of Federal Reserve. He was the first Federal chairman to be televised on sixty minutes in over two decades. He said that he believes that the economy will soon get normal and this will only happen after the stabilizing of the various banks and financial markets.
Nymex crude oil decreased in the field of electronics after OPEC chose to support enhanced compliance along with the current decrease amid doubts that with the high prices it could endanger the chances of bouncing back in the world economy. Economic stocks witnessed an increase with UFJ FG of Mitsubishi by 4.5 percent, Shinsei Bank increased by twelve percent, and Sumitomo Mitsui FG increased by 5.3 percent. Macquarie included 3.6 percent and Australia’s Commonwealth Bank increased by 3.5 percent.
According to a person having knowledge about the situation the government of Australia has extended the review of China’s Aluminum Corp or the planned US $19.5 billion investment in Rio of Chinalco. Also with an institutional shareholder with Australian Foundation Investment Co was of the view that Chinalco would give major authority and they don’t even have to pay the premium.
Pioneer shares increased by ten percent in Japan while they were not involved in talks with Mitsubishi Electric. According to Yomiuri Shimbun weekend report, the two had started discussion on alliance in car navigation and other fields of auto parts. In Korea the auto stocks were superior following the posting of the good sales in Europe as compared to their competitors. Kia Motors witnessed a high of 4.1 percent and Hyundai Motor increased by 2.1 percent.
In New Zealand Sentiment was assisted by Nuplex saying that for the time being their banks had given up agreements for its senior debt cover ratio and they are also planning a NZ$110 million capita increase.
Their shares got suspended from trade but in the midst of the active stocks, Mainfreight collected 4.0 percent and Pike River Coal increased by ten percent. The market of currency was uneven where the euro dropped early as compared to the yen of Japan and American dollar. After falling to $1.2832 as compared to Friday’s in New York $1.2919 and Y126.38 in Asia the euro was lately recorded at $1.2872. The American dollar was approximately at Y98.11 at first falling to Y97.56. A group of twenty central bankers and finance ministers discussed all new steps in facing the economic slump.
The profit of China Mobile up by 29.6 percent for the year 2008
April 13th, 2009
On Thursday China Mobile Ltd which is the largest phone company across the world made a statement that their profits for the year 2008 increased 29.6 percent regardless of the slow economy. It was also said that it will benefit from stimulus expenditure in Beijing. One of the Beijing’s company said that the earnings increased to 112.7 billion yuan as the revenue increased 15.4 percent to 412.2 billion yuan regardless of the slump and earthquake in China.
According to the statement released by the company, the China Mobile added over 7.2 million new customers every month in the year 2008 which helped in increasing the total to 456 million accounts. According to the number of customers which is estimated at 649 million accounts, China is ranked as the world’s largest cell phone market.
In a statement made by the chairman and Chief Executive Officer Mr. Wang, the year of 2008 was the year of the challenges and the group attained new heights in different fields. Various efforts made to develop the business really helped in flourishing the business. According to the China Mobile Ltd they are anticipating to earn profit from the China’s four trillion yuan stimulus. This way the demand will be increased for the telecom services and will also support government hard work for encouraging domestic development of the technology.
The economic development of China considerably came down to 6.7 percent for the final quarter of the year 2008 and it was down by 2007’s growth of thirteen percent. There is a prediction that in the current year the development rate will decrease to as low as five percent but it will be a major one as compared to any other main economy. Different carriers and China Mobile Ltd experienced heavy loss in the earthquake that hit Sichuan in the southwest of China on May 12th which killed around ninety thousand. One of the employees of the China Mobile Ltd died during the maintenance work.
In a statement China Mobile Ltd said that they suffered no considerable losses due to the economic crisis across the world. Mr. Wang was quite positive about the rollout of the Chinese Mobile of their 3G cell phone mobile network. The whole system is totally based on Chinese standard and it has not been used before. The experts are of the view that the company probably will face some tests if the company provides the complete services that is based on the technology.
The previous year Beijing reorganized their telecom industry in order to refresh the level of competition. They want to reorganize the carriers in the states in three different groups every carrier with the fixed and mobile resources. Mr. Wang gave a statement that China Mobile Ltd will seek more and more overseas investments but he didn’t mentioned any concrete target markets. In the beginning this year for developing the network, the company will be investing five hundred million with its subordinate in Pakistan, CM Pak Ltd.
The Dollar made a major downfall
April 13th, 2009
As the Federal Reserve is preparing for buying Treasuries promoted a rumor of degrading the greenback, the dollar came down against the currencies of the six of the main American business associates ever since the Plaza Accord which took place a quarter century ago. In an interview Mr. Bill who is co-chief investment officer of Pacific Investment Management Co. made a statement that it has given rise to the currency related problems to the degree which has led the Fed to purchase what is not liked by the foreign owners.
He also added that the Fed can easily maintain the rate of interest where they want at least from six to eighteen month but in the future it has its own disadvantages. With the central bank making a decision for increasing their balance sheet by $1.14 trillion lowered yields which reduced the value of US assets. This week since the month of January for the first time American currency came down further than $1.36 per euro.
With the Fed’s move encouraged the progress in the commodities, the New Zealand dollar and Norwegian Krone rallied. Yesterday the dollar decreased 4.7 percent in value from $1.2927 at $1.3581 per euro on March 13. On March 19 the American currency reached $1.3737 which was considered the best of the levels since January 9. The dollar also registered a drop of 2.1 percent from 97.94 to 95.93 yen. For a fifth week as compared to the yen, yesterday the euro increased 2.8 percent to 130.28 from 130.48 which was the highest level since December 18.
This week the trade-weighted Dollar Index of ICE came down 4.0 percent at 83.82. This was considered to be the highest reduction since the week in the month of September 1985 when the countries like Japan, West Germany, America, France, and Britain decided in bringing together the dollar’ depreciation as compared to deutsche mark and the yen.
On March 18 the American currency came down 3.2 percent as compared to the euro which is considered to be the highest fall since the sixteen nation’s currency debut back in the year 1999. Mr. David
Mr. David who is the global head of foreign-exchange planning at Barclays Capital in London in an interview said that the falling of the dollar this week has been valued in the policy reaction. This week the stocks witnessed progress and the crude oil. The 500 Index of Standard & Poor raised 1.5 percent and the crude oil increased more than fifty dollars a barrel.
As compared to the dollar the Krone of Norway came out as a major player where it increased seven percent at 6.376. As compared to the American cents the Australian dollar increased 4.3 percent. Norway is the biggest exporter of the crude oil and sixty percent of the abroad sales of Australia comprises of the raw materials. The peso of Colombia raised 3.5 percent at 2,358 per dollar.
According to Mr. Wen, the foreigners have fifty percent of the profitable Treasury debts. China is a major foreign holder along with $739 billion and China is concerned for the holdings of Treasuries and they expect a promise about the safety of the investments.
Goldman Sachs Group Inc has increased their betting objectives on March 19 to the dollar at $1.39 per euro. On the same day Citigroup Inc. also gave a proposal that their customers will buy the euro against the dollar. As the Japan bought the government notes and made the subordinate loans in banks to encourage the economy the yen came down a three month low as compared to the euro.
Ringgit of Malaysia move towards five week high
April 13th, 2009
Following the rumors of American attempts for removing the bad assets from the banks, Malaysia’s ringgit jumped a five week high. It will help in opening the credit and encourage the up-and-coming market assets and the bonds also registered a fall. The currency witnessed a rise for the fourth day versus the dollar. This happened after the statement made by the American Tresury for financing around one trillion dollars for buying the bad assets in order to renew the economic business.
MSCI Asia Pacific Index for the regional stocks increased on the second day and it is heading towards the biggest close in the two months. According to Mr. Lim who is the head of treasury at ECM Libra Investment Bank Bhd in Kuala Lumpur there is still hope as for the stock market to rise seeing the steps taken by the America. According to the available data in Kuala Lumpur, the rinngit increased 0.3 percent at 3.6264 per dollar. It touched 3.6201, the highest since February 17th.
According to EPFR Global of Massachusetts which is a research company which manages funds worth eleven trillion dollars, the investors are placing $348 million in the equities of the up and coming market. Asia’s five famous currencies increased in which the yen was not included after Mr. Timothy who is Treasury Secretary made a statement that America will be using seventy-four billion dollars to hundred billion dollars for purchasing property assets. It is evident that Public Private Investment Program is dependant on Federal Deposit Insurance Corp and Federal Reserve financing debt assurances.
This year the ringgit dropped down 4.7 percent. For the consecutive second day three year bonds declined and this lifted the yields. The next week the government is also making plans for selling extra securities. According to Bank Negara of Malaysia which is responsible for the sales for the treasury, on March 30th Malaysia will use 4.4 billion ringgit for auction of 2012 notes.
As per their debt schedule next month one more time the government will be selling three year bonds. Mr. Wei who is a fixed income analyst with OSK Investment Bank Bhd in Kuala Lumpur said that as the calendar for auction has been skewed in the direction of temporary bonds, there is still hope some selling difficulties in the three year time. He also added that the supply will increase in the coming month. The price slashed down 0.32 and the basis point is 0.01 percentage point.
Once more Asian shares are on a rise
April 13th, 2009
On Tuesday the Asian shares once again increased which was maintained by a public gathering on Wall Street for detoxifying the banks of their unpleasant loans. Nikkei 225 of Japan increased 2.1 percent after it increased 3.3 percent along with S&P/ASX 200 of Australia increase by 1.4 percent and Kospi Composite of South Korea up by 1.1 percent. NZX-50 also increased 2.3 percent.
The Dow Jones Industrial Average crossed 6.7 percent on Monday as the investors accepted the particulars for the Treasury’s plans for relieving the banks from the debt. The financial field of S&P 500 increased seventeen percent. Mr. Philip who is the first NZ Capital Broker said that this is related to the basic matters which have now being addressed to in America.
The experts at UBS were of the view that they were anticipating rally in stocks to be one more bear market alteration. Mr. Alex who is a senior dealer with ANZ gave his comment as it is quite madness with the things taking place in the equity market. He also said that he would like to make use of an expression i.e. caveat emptor which means that buyer be cautious. The financial stocks making good progress with the ANZ of Australia increased by 3.5 percent, Adelaide and Bendigo Bank increased by 6.1 percent, Suncorp Metway increased by 3.3 percent and Commonwealth Bank up by 4.6 percent. In Tokyo Mitsubishi UFJ FG increased by 5.5 percent along with Sumitomo Mitsui FG increase of 3.8 percent and Mizuho FG up by 6.3 percent.
In Tokyo the insurers also increased along with Tokio Marine up by 5.1 percent, but there are chances that some of the profit-takers will turn up in the Japan’s shares. The commodity plays were associated by the strong base metals along with Rio Tinto increased by 5.7 percent, Bluescope Steel up by 4.2 percent, Arrow Energy up by 3.8 percent, BHP Billiton increased by 3.1 percent. OZ Minerals came down fifteen percent with the Foreign Investment Review Board expanded their evaluation of China Minmetals’ A$2.5 billion offer for takeover spoiling the planning of OZ of rapid sanction of the contract.
After having the fresh profits auto stocks didn’t performed well enough. Since February 17th the main index of New Zealand for a short time touched its maximum level. Fisher & Paykel Appliances increased by 8.1 percent, Telecom +4.2 percent, and Fletcher Building increased by 4.8 percent. With the euro at Y133.34, the Japanese yen constantly registered a fall with its maximum level since October 21. The euro also touched $1.3670 from $1.3644 along with the American dollar at Y97.65 from Y96.90.
The yen crossed the Australian dollar hit Y69.24 which is its biggest level since November 10th and the Pound reached Y142.52 which was its best since December 1st. According to Mr. Sean who is a Westpac’s senior currency strategist, the merging of the dollar probably will continue. It also included the selling of the euro in the middle of a talk about the possible step taken by European Central Bank in the direction of quantitative easiness should decrease. The quantitative easing is not possible next week. At the dollar’s cost the currencies of Asia increased along with the greenback fell at KRW1, 384.04 versus Korean won from KRW1, 391.59 on Monday.
Despite of the fall in American Treasurys the Asian government bonds were mixed. May Nymex crude oil futures came down twenty percent at $53.58 per barrel on Globex from rising up to $1.72 in New York.
May 6th, 2009
Majority of the Asian markets closed higher along with the miners and financial stocks growing with the steadiness signs in the worldwide economy. Mr. Jeffrey who is an analyst was of the view that over the last eight weeks they have made a decent amount of money and theye are making their best efforts to keep that amount. He also added that for the longer term they are positive and for the near term theye are quite watchful.
Hang Seng Index of Hong Kong added 0.2 percent ending at 16,430.07; it rose for a fourth straight session and expanding a 5.4 percent. Australia’s S&P/ASX 200 increased 0.1 percent; New Zealand NZX increased 1.8 percent. As for the afternoon trading India’s Sensex also increased 0.3 percent following a soaring 6.2 percent in the prior session while Straits Times Index of Singapore added 2.2 percent.
Taipei and Shanghai registered advancement with the China’s cabinet passed a plan for making developments in the country’s coastal economic zone close to Taiwan. HSBC Holdings shares increased 1.8 percent in Hong Kong following a report in South China Morning Post that it anticipates to be amongst the first ones to register shares in Shanghai.
The airlines in Shanghai continuously concentrated on making advancements on easing the distress of swine flu along with Air China increasing 4.4 percent and China Southern Airlines added 2 percent. Some of the analysts are anticipating the profit-taking to soon take place in Taiwan, Hong Kong, and China. Mr. Johnson who is the consultant president of Marbo Securities was of the view that foreign institutional shareholders will probably carry on buying. Dow Jones Industrial Average futures were lately down 33 points in screen trade.
According to the available data from China and America, it has projected a development lately, though some of the experts have advised to take care seeing the pace of the stock markets. On Thursday, the shareholders were still waiting the outcome of American bank stress test. The officials at Wall Street Journal were likely to direct about ten out of nineteen banks tested for boosting up their capital. One of the experts at UBS was of the view that the rally in risk assets is not showing any signs of stopping.
In Sydney, Yanzhou Coal Mining added 2.3 percent, while Macarthur Coal ended up 2.5 percent, and China Coal Energy increased 3.5 percent in Hong Kong. Capital elevating worries were in progress in Australia, limiting the market profits following BlueScope Steel planned to increase 2.67 billion Australian dollars. It is evident that that stock got discarded from the trade. The stocks joined with the economic cycle increased in Sydney with Rio Tinto adding 5.4 percent and Macquarie Group added 3.6 percent.
After Cosco received its opening job for this fiscal year, Singapore’s subdued shares related to shipping increased. Cosco increased 0.8 percent along with Neptune Orient Lines adding 3.6 percent.
In six months Mexico’s Peso rises to the maximum
May 6th, 2009
Peso of Mexico rose to the maximum in more than six months after Mr. Jose who is the Health Minister of Mexico said that the affect of swine flu has increased. This has strengthened the hope that with the reopening of the business the economy will get better. The Peso rose to 13.2338 which is a climb of 4.1 percent. Since October 13 this was Peso’s highest and it also registered the highest in opposition to the dollar amongst the sixteen of the world’s best currencies.
Mr. Salvador who is the head of the fixed-income planning at Banco Santander SA in Mexico City said that the fact cannot be denied that the country’s economy will get better and this will also be good for the Peso.
Mr. Jose said that though the swine flu has been responsible for 25 deaths but now its affects are decreasing. In a television interview the President of Mexico Mr. Felipe said that the exact loss by the outbreak of swine flu can not be yet calculated, but economy’s some parts will make progress very soon and this week the situation will again become normal. The rally of Peso removed last week’s downfall of 3.1 percent which was encouraged by the outburst of swine flu and it would also affect the economy.
Mr. Dirk and Mr. Chandran of Citigroup Inc. in a report have suggested the investors to purchase the Mexican currency in opposition to the dollar. They also said that it appears that swine flu has gone. As per a survey from a bank, the economists believed that the Peso will become weak this year as compared to their earlier expectation. By the end of the year 2009 the Peso will fall to 13.64 per dollar as compared to the earlier estimate of 14.24.
This survey also concluded that this year GDP (Gross Domestic Product) will come down by four percent. The early prediction by the economists forecasted that the economy would come down by 3.2 percent. Mr. Gabriel (chief economist for Mexico and Chile at UBS AG) in a note to the clients wrote that the economists might just decrease their GDP prediction in the next month survey keeping in mind the outbreak of swine flu.
Mr. Agustin who is the Finance Minister made an approximation last week that the fear of swine flu might decrease GDP by 0.2 percent in the year 2009. According to a statement made by Mexico’s finance ministry that Mexico might have to face a downfall of 2.7 percent with the slump in America. According to the ministry, in the first quarter Mexico probably shrank six percent which is a major quarterly downfall in six years.
At a local auction Banco de Mexico purchased pesos worth hundred million dollars. Since October it has reportedly spent $23.4 billion to support Peso from its foreign reserves.
European stocks opens high
May 6th, 2009
With the worldwide risk appetite seems to be cautiously making a comeback European stocks are likely to open high as they are backed up by impressive performance both in Asia and America. According to Mr. Matt who is a dealer at CMC Markets, oil reached a five month high and this will be a good sign for the petrochemicals market even as some positive Chinese economic data is also making an addition to all this.
Mr. Matt called FTSE 100 index of London, which is reopening after a long time gap, up with 72.7 points at 4316.0. DAX index of Frankfurt was called down 6.4 pints at 4893.0 and CAC-40 index in Paris up by three points at 3241.0. He also observed one more thing which is the fading of the fear of swine flu as victims are still not informed properly outside Mexico.
In the meantime the share markets of Asia were also on the higher side with the coal miners and cyclical stocks growing in the worldwide economy. Though the trading was low with the markets of Thailand, Japan, and South Korea stayed closed. In Taiwan shares witnessed a growth of 0.7 percent after gaining twelve percent while Shanghai Composite Index added 0.3 percent with the approval of the plan of developing coastal economic area near Taiwan. Hang Seng Index of Hong Kong was 0.1 percent higher.
On Monday American stocks increased with the traders making a bet that economic recovery was soon approaching, providing desirable lift for the commodity processors and banking sector. The Standard & Poor’s 500 also shifted positive for the current year and it was closed at the topmost position since January 8th, it rose 29.71 points at 907.23. The Dow Jones Industrial Average increased 214.32 at 8426.72. This was their biggest close since January 13th. The Nasdaq Composite Index increased 44.34 and it closed at 1763.54 which was is biggest close since November 4th.
As for the currencies, the euro following its fresh run up at $1.3371 felt weaker from $1.3404. In the recent weeks the recent currency has rallied in the middle of a worldwide improvement in the risk appetite but on the other hand the euro zone is staying behind. Mr. Jan who is the head of Asian research at Rabobank was of the view that majority of the people will be concerned because of the development prospects in the euro zone didn’t improved as it did in America.
Mr. David who is a market analyst was of the view that the prices of the oil will probably test the $55 barrel level prior to facing the confrontation. In the meantime, the June bund futures agreement begun at 121.97, it came down by 0.02. In a different place spot gold was over nine hundred dollars a troy ounce, after a very impressive performance in New York.
Brazil’s Real witnessed a six month increase
May 6th, 2009
Encouraged by a rally in the stocks and services across the world the Real of Brazil increased a six month high. The currency became stronger 2.4 percent at 2.1195 per American dollar which is the maximum since November 10. The real rose 9.1 percent in the current year which is considered the finest performance amongst the other currencies of the world after rand of South Africa.
Mr. Mario who is the foreign exchange manager at Sao Paulo based Fair Corretora de Cambio was of the view that with the investors making a return to the stock market of Brazil, it will benefit the real. For the first time the Bovespa stock index increased more than fifty thousand since September with the rumors of growth outlook getting better for two of the country’s main export markets and it will encourage for services.
The real also became stronger with the rally in services prices and country’s two-third exports comprises of iron ore and raw materials. Mr. Jorge who is a foreign exchange manager at Rio de Janeiro-based Banco Prosper SA, the bouncing back of the services prices means extra income from the foreign deals and it will only increase the currency.
According to the Trade Ministry, the trading in Brazil increased from March’s $1.76 billion to $3.70 billion in April as China increased the imports of Brazilian services. According to a survey by some of the best analysts, the outcome was more than the median $3.13 billion. The survey conducted by the central bank the analysts make a prediction of 0.29 percent reduction in Brazilian economy in the current year as compared to the downfall of 0.38 percent which was approximated last week.
In nine months for the first time, the manufacturing developed in China while the American building expenditure concluded a six-month downfall. At an auction the central bank of Brazil settled to lend $804 million of a total of $1 billion to the local banks from foreign reserves. As per a statement the bank acknowledged 13 bids. The yield for Brazil zero-coupon bonds due January 2010 increased three basis points to 9.78 percent.
Berkshire Hathaway holds their annual shareholders meeting
May 6th, 2009
The annual shareholder meeting of Berkshire Hathaway Inc was an assortment of both predictable and unpredictable as Mr. Warren who is the chairman and Mr. Munger who is the vice chairman responded to the queries of investors. This years’ convention was a little different from the previous ones as this time around to avoid any individual query, the reporters have pre-screened the questions. As in the previous meetings Mr. Warren was asked about his relationship with Jesus and what he thinks about the game of baseball.
Mr. Warren who is 78 years old presided over the session along with different sayings, viewpoints, and also offered opening outline of how the company performed in the first quarter. According to the reports the entire results will be listed for next week.
The main focus of the annual meeting was mainly revolving around the matter that who will be taking over Berkshire Hathaway after Mr. Warrant mortality and the investors seemed also quite concerned about it. Mr. Warren didn’t mentioned any name that who will be succeeding the positions of CEO (Chief Executive Officer) and CIO (Chief Investment Officer) but the did mentioned about the candidature and about their performance. First quarter operating earnings of Berkshire Hathaway came down from $1.9 billion to $1.7 billion last year.
Mr. Warren confirmed that over last year the company’s book value per share came down by six percent and the reason behind is because of the downfall in the investments value.
Losses and profits from unoriginal are mainly shown in the net income which was not disclosed. Mr. Warren always has made a selection for those stocks which will be having everlasting value. While most of his investments include utilities and insurance, such firms and non-insurance working firms have experienced terrible economic condition. Early in the meeting one vital question which was asked to Mr. Warren was the fresh Moody’s reduction of Berkshire from Aaa to Aa2. Mr. Warren expressed his confidence that the downfall will not be making any difference to the company.
The board of Berkshire has selected four contenders, both externally and internally, for the position of Chief Investment Officer and three internal contenders for the Chief Executive Officer position. Mr. Howard who is the son of Mr. Warren will be handling the Berkshire’s management and taking over as the Chairman along with fifty billion dollar portfolio will get separated between the chairman, CIO and CEO. Four of the deserving contenders for the post of investment officer were unsuccessful to face 38% downfall S500 Index of S&P in the year 2008.
Uncertainty still prevails whether the profits will continue even after the rise in Asian shares
April 13th, 2009
With the preceding week’s profits on Monday the Asian shares witnessed a high once more along with the rise in the financial stocks through the turn down of the service stocks in Australia. The Nikkei of Japan rose to 2.3 percent, NZX-50 of New Zealand had an addition of 0.5 percent, and Kospi of South Korea gained a high by 1.1 percent. But some of the market analysts were not confident about the continual of the market mood due to the economic slump in America.
One of the experts at RBC Capital Markets was the of the view that with some good days in American market previous week the risk seekers will be able to have their first victory after so many months. Last week The Dow Jones Industrial Average increased to 9.01 percent. No main feedback is observed to the remarks made by Mr. Ben who is the Chairman of Federal Reserve. He was the first Federal chairman to be televised on sixty minutes in over two decades. He said that he believes that the economy will soon get normal and this will only happen after the stabilizing of the various banks and financial markets.
Nymex crude oil decreased in the field of electronics after OPEC chose to support enhanced compliance along with the current decrease amid doubts that with the high prices it could endanger the chances of bouncing back in the world economy. Economic stocks witnessed an increase with UFJ FG of Mitsubishi by 4.5 percent, Shinsei Bank increased by twelve percent, and Sumitomo Mitsui FG increased by 5.3 percent. Macquarie included 3.6 percent and Australia’s Commonwealth Bank increased by 3.5 percent.
According to a person having knowledge about the situation the government of Australia has extended the review of China’s Aluminum Corp or the planned US $19.5 billion investment in Rio of Chinalco. Also with an institutional shareholder with Australian Foundation Investment Co was of the view that Chinalco would give major authority and they don’t even have to pay the premium.
Pioneer shares increased by ten percent in Japan while they were not involved in talks with Mitsubishi Electric. According to Yomiuri Shimbun weekend report, the two had started discussion on alliance in car navigation and other fields of auto parts. In Korea the auto stocks were superior following the posting of the good sales in Europe as compared to their competitors. Kia Motors witnessed a high of 4.1 percent and Hyundai Motor increased by 2.1 percent.
In New Zealand Sentiment was assisted by Nuplex saying that for the time being their banks had given up agreements for its senior debt cover ratio and they are also planning a NZ$110 million capita increase.
Their shares got suspended from trade but in the midst of the active stocks, Mainfreight collected 4.0 percent and Pike River Coal increased by ten percent. The market of currency was uneven where the euro dropped early as compared to the yen of Japan and American dollar. After falling to $1.2832 as compared to Friday’s in New York $1.2919 and Y126.38 in Asia the euro was lately recorded at $1.2872. The American dollar was approximately at Y98.11 at first falling to Y97.56. A group of twenty central bankers and finance ministers discussed all new steps in facing the economic slump.
The profit of China Mobile up by 29.6 percent for the year 2008
April 13th, 2009
On Thursday China Mobile Ltd which is the largest phone company across the world made a statement that their profits for the year 2008 increased 29.6 percent regardless of the slow economy. It was also said that it will benefit from stimulus expenditure in Beijing. One of the Beijing’s company said that the earnings increased to 112.7 billion yuan as the revenue increased 15.4 percent to 412.2 billion yuan regardless of the slump and earthquake in China.
According to the statement released by the company, the China Mobile added over 7.2 million new customers every month in the year 2008 which helped in increasing the total to 456 million accounts. According to the number of customers which is estimated at 649 million accounts, China is ranked as the world’s largest cell phone market.
In a statement made by the chairman and Chief Executive Officer Mr. Wang, the year of 2008 was the year of the challenges and the group attained new heights in different fields. Various efforts made to develop the business really helped in flourishing the business. According to the China Mobile Ltd they are anticipating to earn profit from the China’s four trillion yuan stimulus. This way the demand will be increased for the telecom services and will also support government hard work for encouraging domestic development of the technology.
The economic development of China considerably came down to 6.7 percent for the final quarter of the year 2008 and it was down by 2007’s growth of thirteen percent. There is a prediction that in the current year the development rate will decrease to as low as five percent but it will be a major one as compared to any other main economy. Different carriers and China Mobile Ltd experienced heavy loss in the earthquake that hit Sichuan in the southwest of China on May 12th which killed around ninety thousand. One of the employees of the China Mobile Ltd died during the maintenance work.
In a statement China Mobile Ltd said that they suffered no considerable losses due to the economic crisis across the world. Mr. Wang was quite positive about the rollout of the Chinese Mobile of their 3G cell phone mobile network. The whole system is totally based on Chinese standard and it has not been used before. The experts are of the view that the company probably will face some tests if the company provides the complete services that is based on the technology.
The previous year Beijing reorganized their telecom industry in order to refresh the level of competition. They want to reorganize the carriers in the states in three different groups every carrier with the fixed and mobile resources. Mr. Wang gave a statement that China Mobile Ltd will seek more and more overseas investments but he didn’t mentioned any concrete target markets. In the beginning this year for developing the network, the company will be investing five hundred million with its subordinate in Pakistan, CM Pak Ltd.
The Dollar made a major downfall
April 13th, 2009
As the Federal Reserve is preparing for buying Treasuries promoted a rumor of degrading the greenback, the dollar came down against the currencies of the six of the main American business associates ever since the Plaza Accord which took place a quarter century ago. In an interview Mr. Bill who is co-chief investment officer of Pacific Investment Management Co. made a statement that it has given rise to the currency related problems to the degree which has led the Fed to purchase what is not liked by the foreign owners.
He also added that the Fed can easily maintain the rate of interest where they want at least from six to eighteen month but in the future it has its own disadvantages. With the central bank making a decision for increasing their balance sheet by $1.14 trillion lowered yields which reduced the value of US assets. This week since the month of January for the first time American currency came down further than $1.36 per euro.
With the Fed’s move encouraged the progress in the commodities, the New Zealand dollar and Norwegian Krone rallied. Yesterday the dollar decreased 4.7 percent in value from $1.2927 at $1.3581 per euro on March 13. On March 19 the American currency reached $1.3737 which was considered the best of the levels since January 9. The dollar also registered a drop of 2.1 percent from 97.94 to 95.93 yen. For a fifth week as compared to the yen, yesterday the euro increased 2.8 percent to 130.28 from 130.48 which was the highest level since December 18.
This week the trade-weighted Dollar Index of ICE came down 4.0 percent at 83.82. This was considered to be the highest reduction since the week in the month of September 1985 when the countries like Japan, West Germany, America, France, and Britain decided in bringing together the dollar’ depreciation as compared to deutsche mark and the yen.
On March 18 the American currency came down 3.2 percent as compared to the euro which is considered to be the highest fall since the sixteen nation’s currency debut back in the year 1999. Mr. David
Mr. David who is the global head of foreign-exchange planning at Barclays Capital in London in an interview said that the falling of the dollar this week has been valued in the policy reaction. This week the stocks witnessed progress and the crude oil. The 500 Index of Standard & Poor raised 1.5 percent and the crude oil increased more than fifty dollars a barrel.
As compared to the dollar the Krone of Norway came out as a major player where it increased seven percent at 6.376. As compared to the American cents the Australian dollar increased 4.3 percent. Norway is the biggest exporter of the crude oil and sixty percent of the abroad sales of Australia comprises of the raw materials. The peso of Colombia raised 3.5 percent at 2,358 per dollar.
According to Mr. Wen, the foreigners have fifty percent of the profitable Treasury debts. China is a major foreign holder along with $739 billion and China is concerned for the holdings of Treasuries and they expect a promise about the safety of the investments.
Goldman Sachs Group Inc has increased their betting objectives on March 19 to the dollar at $1.39 per euro. On the same day Citigroup Inc. also gave a proposal that their customers will buy the euro against the dollar. As the Japan bought the government notes and made the subordinate loans in banks to encourage the economy the yen came down a three month low as compared to the euro.
Ringgit of Malaysia move towards five week high
April 13th, 2009
Following the rumors of American attempts for removing the bad assets from the banks, Malaysia’s ringgit jumped a five week high. It will help in opening the credit and encourage the up-and-coming market assets and the bonds also registered a fall. The currency witnessed a rise for the fourth day versus the dollar. This happened after the statement made by the American Tresury for financing around one trillion dollars for buying the bad assets in order to renew the economic business.
MSCI Asia Pacific Index for the regional stocks increased on the second day and it is heading towards the biggest close in the two months. According to Mr. Lim who is the head of treasury at ECM Libra Investment Bank Bhd in Kuala Lumpur there is still hope as for the stock market to rise seeing the steps taken by the America. According to the available data in Kuala Lumpur, the rinngit increased 0.3 percent at 3.6264 per dollar. It touched 3.6201, the highest since February 17th.
According to EPFR Global of Massachusetts which is a research company which manages funds worth eleven trillion dollars, the investors are placing $348 million in the equities of the up and coming market. Asia’s five famous currencies increased in which the yen was not included after Mr. Timothy who is Treasury Secretary made a statement that America will be using seventy-four billion dollars to hundred billion dollars for purchasing property assets. It is evident that Public Private Investment Program is dependant on Federal Deposit Insurance Corp and Federal Reserve financing debt assurances.
This year the ringgit dropped down 4.7 percent. For the consecutive second day three year bonds declined and this lifted the yields. The next week the government is also making plans for selling extra securities. According to Bank Negara of Malaysia which is responsible for the sales for the treasury, on March 30th Malaysia will use 4.4 billion ringgit for auction of 2012 notes.
As per their debt schedule next month one more time the government will be selling three year bonds. Mr. Wei who is a fixed income analyst with OSK Investment Bank Bhd in Kuala Lumpur said that as the calendar for auction has been skewed in the direction of temporary bonds, there is still hope some selling difficulties in the three year time. He also added that the supply will increase in the coming month. The price slashed down 0.32 and the basis point is 0.01 percentage point.
Once more Asian shares are on a rise
April 13th, 2009
On Tuesday the Asian shares once again increased which was maintained by a public gathering on Wall Street for detoxifying the banks of their unpleasant loans. Nikkei 225 of Japan increased 2.1 percent after it increased 3.3 percent along with S&P/ASX 200 of Australia increase by 1.4 percent and Kospi Composite of South Korea up by 1.1 percent. NZX-50 also increased 2.3 percent.
The Dow Jones Industrial Average crossed 6.7 percent on Monday as the investors accepted the particulars for the Treasury’s plans for relieving the banks from the debt. The financial field of S&P 500 increased seventeen percent. Mr. Philip who is the first NZ Capital Broker said that this is related to the basic matters which have now being addressed to in America.
The experts at UBS were of the view that they were anticipating rally in stocks to be one more bear market alteration. Mr. Alex who is a senior dealer with ANZ gave his comment as it is quite madness with the things taking place in the equity market. He also said that he would like to make use of an expression i.e. caveat emptor which means that buyer be cautious. The financial stocks making good progress with the ANZ of Australia increased by 3.5 percent, Adelaide and Bendigo Bank increased by 6.1 percent, Suncorp Metway increased by 3.3 percent and Commonwealth Bank up by 4.6 percent. In Tokyo Mitsubishi UFJ FG increased by 5.5 percent along with Sumitomo Mitsui FG increase of 3.8 percent and Mizuho FG up by 6.3 percent.
In Tokyo the insurers also increased along with Tokio Marine up by 5.1 percent, but there are chances that some of the profit-takers will turn up in the Japan’s shares. The commodity plays were associated by the strong base metals along with Rio Tinto increased by 5.7 percent, Bluescope Steel up by 4.2 percent, Arrow Energy up by 3.8 percent, BHP Billiton increased by 3.1 percent. OZ Minerals came down fifteen percent with the Foreign Investment Review Board expanded their evaluation of China Minmetals’ A$2.5 billion offer for takeover spoiling the planning of OZ of rapid sanction of the contract.
After having the fresh profits auto stocks didn’t performed well enough. Since February 17th the main index of New Zealand for a short time touched its maximum level. Fisher & Paykel Appliances increased by 8.1 percent, Telecom +4.2 percent, and Fletcher Building increased by 4.8 percent. With the euro at Y133.34, the Japanese yen constantly registered a fall with its maximum level since October 21. The euro also touched $1.3670 from $1.3644 along with the American dollar at Y97.65 from Y96.90.
The yen crossed the Australian dollar hit Y69.24 which is its biggest level since November 10th and the Pound reached Y142.52 which was its best since December 1st. According to Mr. Sean who is a Westpac’s senior currency strategist, the merging of the dollar probably will continue. It also included the selling of the euro in the middle of a talk about the possible step taken by European Central Bank in the direction of quantitative easiness should decrease. The quantitative easing is not possible next week. At the dollar’s cost the currencies of Asia increased along with the greenback fell at KRW1, 384.04 versus Korean won from KRW1, 391.59 on Monday.
Despite of the fall in American Treasurys the Asian government bonds were mixed. May Nymex crude oil futures came down twenty percent at $53.58 per barrel on Globex from rising up to $1.72 in New York.
Archive for the Forex News
Most of the Asian shares end higher
May 6th, 2009
Majority of the Asian markets closed higher along with the miners and financial stocks growing with the steadiness signs in the worldwide economy. Mr. Jeffrey who is an analyst was of the view that over the last eight weeks they have made a decent amount of money and theye are making their best efforts to keep that amount. He also added that for the longer term they are positive and for the near term theye are quite watchful.
Hang Seng Index of Hong Kong added 0.2 percent ending at 16,430.07; it rose for a fourth straight session and expanding a 5.4 percent. Australia’s S&P/ASX 200 increased 0.1 percent; New Zealand NZX increased 1.8 percent. As for the afternoon trading India’s Sensex also increased 0.3 percent following a soaring 6.2 percent in the prior session while Straits Times Index of Singapore added 2.2 percent.
Taipei and Shanghai registered advancement with the China’s cabinet passed a plan for making developments in the country’s coastal economic zone close to Taiwan. HSBC Holdings shares increased 1.8 percent in Hong Kong following a report in South China Morning Post that it anticipates to be amongst the first ones to register shares in Shanghai.
The airlines in Shanghai continuously concentrated on making advancements on easing the distress of swine flu along with Air China increasing 4.4 percent and China Southern Airlines added 2 percent. Some of the analysts are anticipating the profit-taking to soon take place in Taiwan, Hong Kong, and China. Mr. Johnson who is the consultant president of Marbo Securities was of the view that foreign institutional shareholders will probably carry on buying. Dow Jones Industrial Average futures were lately down 33 points in screen trade.
According to the available data from China and America, it has projected a development lately, though some of the experts have advised to take care seeing the pace of the stock markets. On Thursday, the shareholders were still waiting the outcome of American bank stress test. The officials at Wall Street Journal were likely to direct about ten out of nineteen banks tested for boosting up their capital. One of the experts at UBS was of the view that the rally in risk assets is not showing any signs of stopping.
In Sydney, Yanzhou Coal Mining added 2.3 percent, while Macarthur Coal ended up 2.5 percent, and China Coal Energy increased 3.5 percent in Hong Kong. Capital elevating worries were in progress in Australia, limiting the market profits following BlueScope Steel planned to increase 2.67 billion Australian dollars. It is evident that that stock got discarded from the trade. The stocks joined with the economic cycle increased in Sydney with Rio Tinto adding 5.4 percent and Macquarie Group added 3.6 percent.
After Cosco received its opening job for this fiscal year, Singapore’s subdued shares related to shipping increased. Cosco increased 0.8 percent along with Neptune Orient Lines adding 3.6 percent.
In six months Mexico’s Peso rises to the maximum
May 6th, 2009
Peso of Mexico rose to the maximum in more than six months after Mr. Jose who is the Health Minister of Mexico said that the affect of swine flu has increased. This has strengthened the hope that with the reopening of the business the economy will get better. The Peso rose to 13.2338 which is a climb of 4.1 percent. Since October 13 this was Peso’s highest and it also registered the highest in opposition to the dollar amongst the sixteen of the world’s best currencies.
Mr. Salvador who is the head of the fixed-income planning at Banco Santander SA in Mexico City said that the fact cannot be denied that the country’s economy will get better and this will also be good for the Peso.
Mr. Jose said that though the swine flu has been responsible for 25 deaths but now its affects are decreasing. In a television interview the President of Mexico Mr. Felipe said that the exact loss by the outbreak of swine flu can not be yet calculated, but economy’s some parts will make progress very soon and this week the situation will again become normal. The rally of Peso removed last week’s downfall of 3.1 percent which was encouraged by the outburst of swine flu and it would also affect the economy.
Mr. Dirk and Mr. Chandran of Citigroup Inc. in a report have suggested the investors to purchase the Mexican currency in opposition to the dollar. They also said that it appears that swine flu has gone. As per a survey from a bank, the economists believed that the Peso will become weak this year as compared to their earlier expectation. By the end of the year 2009 the Peso will fall to 13.64 per dollar as compared to the earlier estimate of 14.24.
This survey also concluded that this year GDP (Gross Domestic Product) will come down by four percent. The early prediction by the economists forecasted that the economy would come down by 3.2 percent. Mr. Gabriel (chief economist for Mexico and Chile at UBS AG) in a note to the clients wrote that the economists might just decrease their GDP prediction in the next month survey keeping in mind the outbreak of swine flu.
Mr. Agustin who is the Finance Minister made an approximation last week that the fear of swine flu might decrease GDP by 0.2 percent in the year 2009. According to a statement made by Mexico’s finance ministry that Mexico might have to face a downfall of 2.7 percent with the slump in America. According to the ministry, in the first quarter Mexico probably shrank six percent which is a major quarterly downfall in six years.
At a local auction Banco de Mexico purchased pesos worth hundred million dollars. Since October it has reportedly spent $23.4 billion to support Peso from its foreign reserves.
European stocks opens high
May 6th, 2009
With the worldwide risk appetite seems to be cautiously making a comeback European stocks are likely to open high as they are backed up by impressive performance both in Asia and America. According to Mr. Matt who is a dealer at CMC Markets, oil reached a five month high and this will be a good sign for the petrochemicals market even as some positive Chinese economic data is also making an addition to all this.
Mr. Matt called FTSE 100 index of London, which is reopening after a long time gap, up with 72.7 points at 4316.0. DAX index of Frankfurt was called down 6.4 pints at 4893.0 and CAC-40 index in Paris up by three points at 3241.0. He also observed one more thing which is the fading of the fear of swine flu as victims are still not informed properly outside Mexico.
In the meantime the share markets of Asia were also on the higher side with the coal miners and cyclical stocks growing in the worldwide economy. Though the trading was low with the markets of Thailand, Japan, and South Korea stayed closed. In Taiwan shares witnessed a growth of 0.7 percent after gaining twelve percent while Shanghai Composite Index added 0.3 percent with the approval of the plan of developing coastal economic area near Taiwan. Hang Seng Index of Hong Kong was 0.1 percent higher.
On Monday American stocks increased with the traders making a bet that economic recovery was soon approaching, providing desirable lift for the commodity processors and banking sector. The Standard & Poor’s 500 also shifted positive for the current year and it was closed at the topmost position since January 8th, it rose 29.71 points at 907.23. The Dow Jones Industrial Average increased 214.32 at 8426.72. This was their biggest close since January 13th. The Nasdaq Composite Index increased 44.34 and it closed at 1763.54 which was is biggest close since November 4th.
As for the currencies, the euro following its fresh run up at $1.3371 felt weaker from $1.3404. In the recent weeks the recent currency has rallied in the middle of a worldwide improvement in the risk appetite but on the other hand the euro zone is staying behind. Mr. Jan who is the head of Asian research at Rabobank was of the view that majority of the people will be concerned because of the development prospects in the euro zone didn’t improved as it did in America.
Mr. David who is a market analyst was of the view that the prices of the oil will probably test the $55 barrel level prior to facing the confrontation. In the meantime, the June bund futures agreement begun at 121.97, it came down by 0.02. In a different place spot gold was over nine hundred dollars a troy ounce, after a very impressive performance in New York.
Brazil’s Real witnessed a six month increase
May 6th, 2009
Encouraged by a rally in the stocks and services across the world the Real of Brazil increased a six month high. The currency became stronger 2.4 percent at 2.1195 per American dollar which is the maximum since November 10. The real rose 9.1 percent in the current year which is considered the finest performance amongst the other currencies of the world after rand of South Africa.
Mr. Mario who is the foreign exchange manager at Sao Paulo based Fair Corretora de Cambio was of the view that with the investors making a return to the stock market of Brazil, it will benefit the real. For the first time the Bovespa stock index increased more than fifty thousand since September with the rumors of growth outlook getting better for two of the country’s main export markets and it will encourage for services.
The real also became stronger with the rally in services prices and country’s two-third exports comprises of iron ore and raw materials. Mr. Jorge who is a foreign exchange manager at Rio de Janeiro-based Banco Prosper SA, the bouncing back of the services prices means extra income from the foreign deals and it will only increase the currency.
According to the Trade Ministry, the trading in Brazil increased from March’s $1.76 billion to $3.70 billion in April as China increased the imports of Brazilian services. According to a survey by some of the best analysts, the outcome was more than the median $3.13 billion. The survey conducted by the central bank the analysts make a prediction of 0.29 percent reduction in Brazilian economy in the current year as compared to the downfall of 0.38 percent which was approximated last week.
In nine months for the first time, the manufacturing developed in China while the American building expenditure concluded a six-month downfall. At an auction the central bank of Brazil settled to lend $804 million of a total of $1 billion to the local banks from foreign reserves. As per a statement the bank acknowledged 13 bids. The yield for Brazil zero-coupon bonds due January 2010 increased three basis points to 9.78 percent.
Berkshire Hathaway holds their annual shareholders meeting
May 6th, 2009
The annual shareholder meeting of Berkshire Hathaway Inc was an assortment of both predictable and unpredictable as Mr. Warren who is the chairman and Mr. Munger who is the vice chairman responded to the queries of investors. This years’ convention was a little different from the previous ones as this time around to avoid any individual query, the reporters have pre-screened the questions. As in the previous meetings Mr. Warren was asked about his relationship with Jesus and what he thinks about the game of baseball.
Mr. Warren who is 78 years old presided over the session along with different sayings, viewpoints, and also offered opening outline of how the company performed in the first quarter. According to the reports the entire results will be listed for next week.
The main focus of the annual meeting was mainly revolving around the matter that who will be taking over Berkshire Hathaway after Mr. Warrant mortality and the investors seemed also quite concerned about it. Mr. Warren didn’t mentioned any name that who will be succeeding the positions of CEO (Chief Executive Officer) and CIO (Chief Investment Officer) but the did mentioned about the candidature and about their performance. First quarter operating earnings of Berkshire Hathaway came down from $1.9 billion to $1.7 billion last year.
Mr. Warren confirmed that over last year the company’s book value per share came down by six percent and the reason behind is because of the downfall in the investments value.
Losses and profits from unoriginal are mainly shown in the net income which was not disclosed. Mr. Warren always has made a selection for those stocks which will be having everlasting value. While most of his investments include utilities and insurance, such firms and non-insurance working firms have experienced terrible economic condition. Early in the meeting one vital question which was asked to Mr. Warren was the fresh Moody’s reduction of Berkshire from Aaa to Aa2. Mr. Warren expressed his confidence that the downfall will not be making any difference to the company.
The board of Berkshire has selected four contenders, both externally and internally, for the position of Chief Investment Officer and three internal contenders for the Chief Executive Officer position. Mr. Howard who is the son of Mr. Warren will be handling the Berkshire’s management and taking over as the Chairman along with fifty billion dollar portfolio will get separated between the chairman, CIO and CEO. Four of the deserving contenders for the post of investment officer were unsuccessful to face 38% downfall S500 Index of S&P in the year 2008.
Uncertainty still prevails whether the profits will continue even after the rise in Asian shares
April 13th, 2009
With the preceding week’s profits on Monday the Asian shares witnessed a high once more along with the rise in the financial stocks through the turn down of the service stocks in Australia. The Nikkei of Japan rose to 2.3 percent, NZX-50 of New Zealand had an addition of 0.5 percent, and Kospi of South Korea gained a high by 1.1 percent. But some of the market analysts were not confident about the continual of the market mood due to the economic slump in America.
One of the experts at RBC Capital Markets was the of the view that with some good days in American market previous week the risk seekers will be able to have their first victory after so many months. Last week The Dow Jones Industrial Average increased to 9.01 percent. No main feedback is observed to the remarks made by Mr. Ben who is the Chairman of Federal Reserve. He was the first Federal chairman to be televised on sixty minutes in over two decades. He said that he believes that the economy will soon get normal and this will only happen after the stabilizing of the various banks and financial markets.
Nymex crude oil decreased in the field of electronics after OPEC chose to support enhanced compliance along with the current decrease amid doubts that with the high prices it could endanger the chances of bouncing back in the world economy. Economic stocks witnessed an increase with UFJ FG of Mitsubishi by 4.5 percent, Shinsei Bank increased by twelve percent, and Sumitomo Mitsui FG increased by 5.3 percent. Macquarie included 3.6 percent and Australia’s Commonwealth Bank increased by 3.5 percent.
According to a person having knowledge about the situation the government of Australia has extended the review of China’s Aluminum Corp or the planned US $19.5 billion investment in Rio of Chinalco. Also with an institutional shareholder with Australian Foundation Investment Co was of the view that Chinalco would give major authority and they don’t even have to pay the premium.
Pioneer shares increased by ten percent in Japan while they were not involved in talks with Mitsubishi Electric. According to Yomiuri Shimbun weekend report, the two had started discussion on alliance in car navigation and other fields of auto parts. In Korea the auto stocks were superior following the posting of the good sales in Europe as compared to their competitors. Kia Motors witnessed a high of 4.1 percent and Hyundai Motor increased by 2.1 percent.
In New Zealand Sentiment was assisted by Nuplex saying that for the time being their banks had given up agreements for its senior debt cover ratio and they are also planning a NZ$110 million capita increase.
Their shares got suspended from trade but in the midst of the active stocks, Mainfreight collected 4.0 percent and Pike River Coal increased by ten percent. The market of currency was uneven where the euro dropped early as compared to the yen of Japan and American dollar. After falling to $1.2832 as compared to Friday’s in New York $1.2919 and Y126.38 in Asia the euro was lately recorded at $1.2872. The American dollar was approximately at Y98.11 at first falling to Y97.56. A group of twenty central bankers and finance ministers discussed all new steps in facing the economic slump.
The profit of China Mobile up by 29.6 percent for the year 2008
April 13th, 2009
On Thursday China Mobile Ltd which is the largest phone company across the world made a statement that their profits for the year 2008 increased 29.6 percent regardless of the slow economy. It was also said that it will benefit from stimulus expenditure in Beijing. One of the Beijing’s company said that the earnings increased to 112.7 billion yuan as the revenue increased 15.4 percent to 412.2 billion yuan regardless of the slump and earthquake in China.
According to the statement released by the company, the China Mobile added over 7.2 million new customers every month in the year 2008 which helped in increasing the total to 456 million accounts. According to the number of customers which is estimated at 649 million accounts, China is ranked as the world’s largest cell phone market.
In a statement made by the chairman and Chief Executive Officer Mr. Wang, the year of 2008 was the year of the challenges and the group attained new heights in different fields. Various efforts made to develop the business really helped in flourishing the business. According to the China Mobile Ltd they are anticipating to earn profit from the China’s four trillion yuan stimulus. This way the demand will be increased for the telecom services and will also support government hard work for encouraging domestic development of the technology.
The economic development of China considerably came down to 6.7 percent for the final quarter of the year 2008 and it was down by 2007’s growth of thirteen percent. There is a prediction that in the current year the development rate will decrease to as low as five percent but it will be a major one as compared to any other main economy. Different carriers and China Mobile Ltd experienced heavy loss in the earthquake that hit Sichuan in the southwest of China on May 12th which killed around ninety thousand. One of the employees of the China Mobile Ltd died during the maintenance work.
In a statement China Mobile Ltd said that they suffered no considerable losses due to the economic crisis across the world. Mr. Wang was quite positive about the rollout of the Chinese Mobile of their 3G cell phone mobile network. The whole system is totally based on Chinese standard and it has not been used before. The experts are of the view that the company probably will face some tests if the company provides the complete services that is based on the technology.
The previous year Beijing reorganized their telecom industry in order to refresh the level of competition. They want to reorganize the carriers in the states in three different groups every carrier with the fixed and mobile resources. Mr. Wang gave a statement that China Mobile Ltd will seek more and more overseas investments but he didn’t mentioned any concrete target markets. In the beginning this year for developing the network, the company will be investing five hundred million with its subordinate in Pakistan, CM Pak Ltd.
The Dollar made a major downfall
April 13th, 2009
As the Federal Reserve is preparing for buying Treasuries promoted a rumor of degrading the greenback, the dollar came down against the currencies of the six of the main American business associates ever since the Plaza Accord which took place a quarter century ago. In an interview Mr. Bill who is co-chief investment officer of Pacific Investment Management Co. made a statement that it has given rise to the currency related problems to the degree which has led the Fed to purchase what is not liked by the foreign owners.
He also added that the Fed can easily maintain the rate of interest where they want at least from six to eighteen month but in the future it has its own disadvantages. With the central bank making a decision for increasing their balance sheet by $1.14 trillion lowered yields which reduced the value of US assets. This week since the month of January for the first time American currency came down further than $1.36 per euro.
With the Fed’s move encouraged the progress in the commodities, the New Zealand dollar and Norwegian Krone rallied. Yesterday the dollar decreased 4.7 percent in value from $1.2927 at $1.3581 per euro on March 13. On March 19 the American currency reached $1.3737 which was considered the best of the levels since January 9. The dollar also registered a drop of 2.1 percent from 97.94 to 95.93 yen. For a fifth week as compared to the yen, yesterday the euro increased 2.8 percent to 130.28 from 130.48 which was the highest level since December 18.
This week the trade-weighted Dollar Index of ICE came down 4.0 percent at 83.82. This was considered to be the highest reduction since the week in the month of September 1985 when the countries like Japan, West Germany, America, France, and Britain decided in bringing together the dollar’ depreciation as compared to deutsche mark and the yen.
On March 18 the American currency came down 3.2 percent as compared to the euro which is considered to be the highest fall since the sixteen nation’s currency debut back in the year 1999. Mr. David
Mr. David who is the global head of foreign-exchange planning at Barclays Capital in London in an interview said that the falling of the dollar this week has been valued in the policy reaction. This week the stocks witnessed progress and the crude oil. The 500 Index of Standard & Poor raised 1.5 percent and the crude oil increased more than fifty dollars a barrel.
As compared to the dollar the Krone of Norway came out as a major player where it increased seven percent at 6.376. As compared to the American cents the Australian dollar increased 4.3 percent. Norway is the biggest exporter of the crude oil and sixty percent of the abroad sales of Australia comprises of the raw materials. The peso of Colombia raised 3.5 percent at 2,358 per dollar.
According to Mr. Wen, the foreigners have fifty percent of the profitable Treasury debts. China is a major foreign holder along with $739 billion and China is concerned for the holdings of Treasuries and they expect a promise about the safety of the investments.
Goldman Sachs Group Inc has increased their betting objectives on March 19 to the dollar at $1.39 per euro. On the same day Citigroup Inc. also gave a proposal that their customers will buy the euro against the dollar. As the Japan bought the government notes and made the subordinate loans in banks to encourage the economy the yen came down a three month low as compared to the euro.
Ringgit of Malaysia move towards five week high
April 13th, 2009
Following the rumors of American attempts for removing the bad assets from the banks, Malaysia’s ringgit jumped a five week high. It will help in opening the credit and encourage the up-and-coming market assets and the bonds also registered a fall. The currency witnessed a rise for the fourth day versus the dollar. This happened after the statement made by the American Tresury for financing around one trillion dollars for buying the bad assets in order to renew the economic business.
MSCI Asia Pacific Index for the regional stocks increased on the second day and it is heading towards the biggest close in the two months. According to Mr. Lim who is the head of treasury at ECM Libra Investment Bank Bhd in Kuala Lumpur there is still hope as for the stock market to rise seeing the steps taken by the America. According to the available data in Kuala Lumpur, the rinngit increased 0.3 percent at 3.6264 per dollar. It touched 3.6201, the highest since February 17th.
According to EPFR Global of Massachusetts which is a research company which manages funds worth eleven trillion dollars, the investors are placing $348 million in the equities of the up and coming market. Asia’s five famous currencies increased in which the yen was not included after Mr. Timothy who is Treasury Secretary made a statement that America will be using seventy-four billion dollars to hundred billion dollars for purchasing property assets. It is evident that Public Private Investment Program is dependant on Federal Deposit Insurance Corp and Federal Reserve financing debt assurances.
This year the ringgit dropped down 4.7 percent. For the consecutive second day three year bonds declined and this lifted the yields. The next week the government is also making plans for selling extra securities. According to Bank Negara of Malaysia which is responsible for the sales for the treasury, on March 30th Malaysia will use 4.4 billion ringgit for auction of 2012 notes.
As per their debt schedule next month one more time the government will be selling three year bonds. Mr. Wei who is a fixed income analyst with OSK Investment Bank Bhd in Kuala Lumpur said that as the calendar for auction has been skewed in the direction of temporary bonds, there is still hope some selling difficulties in the three year time. He also added that the supply will increase in the coming month. The price slashed down 0.32 and the basis point is 0.01 percentage point.
Once more Asian shares are on a rise
April 13th, 2009
On Tuesday the Asian shares once again increased which was maintained by a public gathering on Wall Street for detoxifying the banks of their unpleasant loans. Nikkei 225 of Japan increased 2.1 percent after it increased 3.3 percent along with S&P/ASX 200 of Australia increase by 1.4 percent and Kospi Composite of South Korea up by 1.1 percent. NZX-50 also increased 2.3 percent.
The Dow Jones Industrial Average crossed 6.7 percent on Monday as the investors accepted the particulars for the Treasury’s plans for relieving the banks from the debt. The financial field of S&P 500 increased seventeen percent. Mr. Philip who is the first NZ Capital Broker said that this is related to the basic matters which have now being addressed to in America.
The experts at UBS were of the view that they were anticipating rally in stocks to be one more bear market alteration. Mr. Alex who is a senior dealer with ANZ gave his comment as it is quite madness with the things taking place in the equity market. He also said that he would like to make use of an expression i.e. caveat emptor which means that buyer be cautious. The financial stocks making good progress with the ANZ of Australia increased by 3.5 percent, Adelaide and Bendigo Bank increased by 6.1 percent, Suncorp Metway increased by 3.3 percent and Commonwealth Bank up by 4.6 percent. In Tokyo Mitsubishi UFJ FG increased by 5.5 percent along with Sumitomo Mitsui FG increase of 3.8 percent and Mizuho FG up by 6.3 percent.
In Tokyo the insurers also increased along with Tokio Marine up by 5.1 percent, but there are chances that some of the profit-takers will turn up in the Japan’s shares. The commodity plays were associated by the strong base metals along with Rio Tinto increased by 5.7 percent, Bluescope Steel up by 4.2 percent, Arrow Energy up by 3.8 percent, BHP Billiton increased by 3.1 percent. OZ Minerals came down fifteen percent with the Foreign Investment Review Board expanded their evaluation of China Minmetals’ A$2.5 billion offer for takeover spoiling the planning of OZ of rapid sanction of the contract.
After having the fresh profits auto stocks didn’t performed well enough. Since February 17th the main index of New Zealand for a short time touched its maximum level. Fisher & Paykel Appliances increased by 8.1 percent, Telecom +4.2 percent, and Fletcher Building increased by 4.8 percent. With the euro at Y133.34, the Japanese yen constantly registered a fall with its maximum level since October 21. The euro also touched $1.3670 from $1.3644 along with the American dollar at Y97.65 from Y96.90.
The yen crossed the Australian dollar hit Y69.24 which is its biggest level since November 10th and the Pound reached Y142.52 which was its best since December 1st. According to Mr. Sean who is a Westpac’s senior currency strategist, the merging of the dollar probably will continue. It also included the selling of the euro in the middle of a talk about the possible step taken by European Central Bank in the direction of quantitative easiness should decrease. The quantitative easing is not possible next week. At the dollar’s cost the currencies of Asia increased along with the greenback fell at KRW1, 384.04 versus Korean won from KRW1, 391.59 on Monday.
Despite of the fall in American Treasurys the Asian government bonds were mixed. May Nymex crude oil futures came down twenty percent at $53.58 per barrel on Globex from rising up to $1.72 in New York.
May 6th, 2009
Majority of the Asian markets closed higher along with the miners and financial stocks growing with the steadiness signs in the worldwide economy. Mr. Jeffrey who is an analyst was of the view that over the last eight weeks they have made a decent amount of money and theye are making their best efforts to keep that amount. He also added that for the longer term they are positive and for the near term theye are quite watchful.
Hang Seng Index of Hong Kong added 0.2 percent ending at 16,430.07; it rose for a fourth straight session and expanding a 5.4 percent. Australia’s S&P/ASX 200 increased 0.1 percent; New Zealand NZX increased 1.8 percent. As for the afternoon trading India’s Sensex also increased 0.3 percent following a soaring 6.2 percent in the prior session while Straits Times Index of Singapore added 2.2 percent.
Taipei and Shanghai registered advancement with the China’s cabinet passed a plan for making developments in the country’s coastal economic zone close to Taiwan. HSBC Holdings shares increased 1.8 percent in Hong Kong following a report in South China Morning Post that it anticipates to be amongst the first ones to register shares in Shanghai.
The airlines in Shanghai continuously concentrated on making advancements on easing the distress of swine flu along with Air China increasing 4.4 percent and China Southern Airlines added 2 percent. Some of the analysts are anticipating the profit-taking to soon take place in Taiwan, Hong Kong, and China. Mr. Johnson who is the consultant president of Marbo Securities was of the view that foreign institutional shareholders will probably carry on buying. Dow Jones Industrial Average futures were lately down 33 points in screen trade.
According to the available data from China and America, it has projected a development lately, though some of the experts have advised to take care seeing the pace of the stock markets. On Thursday, the shareholders were still waiting the outcome of American bank stress test. The officials at Wall Street Journal were likely to direct about ten out of nineteen banks tested for boosting up their capital. One of the experts at UBS was of the view that the rally in risk assets is not showing any signs of stopping.
In Sydney, Yanzhou Coal Mining added 2.3 percent, while Macarthur Coal ended up 2.5 percent, and China Coal Energy increased 3.5 percent in Hong Kong. Capital elevating worries were in progress in Australia, limiting the market profits following BlueScope Steel planned to increase 2.67 billion Australian dollars. It is evident that that stock got discarded from the trade. The stocks joined with the economic cycle increased in Sydney with Rio Tinto adding 5.4 percent and Macquarie Group added 3.6 percent.
After Cosco received its opening job for this fiscal year, Singapore’s subdued shares related to shipping increased. Cosco increased 0.8 percent along with Neptune Orient Lines adding 3.6 percent.
In six months Mexico’s Peso rises to the maximum
May 6th, 2009
Peso of Mexico rose to the maximum in more than six months after Mr. Jose who is the Health Minister of Mexico said that the affect of swine flu has increased. This has strengthened the hope that with the reopening of the business the economy will get better. The Peso rose to 13.2338 which is a climb of 4.1 percent. Since October 13 this was Peso’s highest and it also registered the highest in opposition to the dollar amongst the sixteen of the world’s best currencies.
Mr. Salvador who is the head of the fixed-income planning at Banco Santander SA in Mexico City said that the fact cannot be denied that the country’s economy will get better and this will also be good for the Peso.
Mr. Jose said that though the swine flu has been responsible for 25 deaths but now its affects are decreasing. In a television interview the President of Mexico Mr. Felipe said that the exact loss by the outbreak of swine flu can not be yet calculated, but economy’s some parts will make progress very soon and this week the situation will again become normal. The rally of Peso removed last week’s downfall of 3.1 percent which was encouraged by the outburst of swine flu and it would also affect the economy.
Mr. Dirk and Mr. Chandran of Citigroup Inc. in a report have suggested the investors to purchase the Mexican currency in opposition to the dollar. They also said that it appears that swine flu has gone. As per a survey from a bank, the economists believed that the Peso will become weak this year as compared to their earlier expectation. By the end of the year 2009 the Peso will fall to 13.64 per dollar as compared to the earlier estimate of 14.24.
This survey also concluded that this year GDP (Gross Domestic Product) will come down by four percent. The early prediction by the economists forecasted that the economy would come down by 3.2 percent. Mr. Gabriel (chief economist for Mexico and Chile at UBS AG) in a note to the clients wrote that the economists might just decrease their GDP prediction in the next month survey keeping in mind the outbreak of swine flu.
Mr. Agustin who is the Finance Minister made an approximation last week that the fear of swine flu might decrease GDP by 0.2 percent in the year 2009. According to a statement made by Mexico’s finance ministry that Mexico might have to face a downfall of 2.7 percent with the slump in America. According to the ministry, in the first quarter Mexico probably shrank six percent which is a major quarterly downfall in six years.
At a local auction Banco de Mexico purchased pesos worth hundred million dollars. Since October it has reportedly spent $23.4 billion to support Peso from its foreign reserves.
European stocks opens high
May 6th, 2009
With the worldwide risk appetite seems to be cautiously making a comeback European stocks are likely to open high as they are backed up by impressive performance both in Asia and America. According to Mr. Matt who is a dealer at CMC Markets, oil reached a five month high and this will be a good sign for the petrochemicals market even as some positive Chinese economic data is also making an addition to all this.
Mr. Matt called FTSE 100 index of London, which is reopening after a long time gap, up with 72.7 points at 4316.0. DAX index of Frankfurt was called down 6.4 pints at 4893.0 and CAC-40 index in Paris up by three points at 3241.0. He also observed one more thing which is the fading of the fear of swine flu as victims are still not informed properly outside Mexico.
In the meantime the share markets of Asia were also on the higher side with the coal miners and cyclical stocks growing in the worldwide economy. Though the trading was low with the markets of Thailand, Japan, and South Korea stayed closed. In Taiwan shares witnessed a growth of 0.7 percent after gaining twelve percent while Shanghai Composite Index added 0.3 percent with the approval of the plan of developing coastal economic area near Taiwan. Hang Seng Index of Hong Kong was 0.1 percent higher.
On Monday American stocks increased with the traders making a bet that economic recovery was soon approaching, providing desirable lift for the commodity processors and banking sector. The Standard & Poor’s 500 also shifted positive for the current year and it was closed at the topmost position since January 8th, it rose 29.71 points at 907.23. The Dow Jones Industrial Average increased 214.32 at 8426.72. This was their biggest close since January 13th. The Nasdaq Composite Index increased 44.34 and it closed at 1763.54 which was is biggest close since November 4th.
As for the currencies, the euro following its fresh run up at $1.3371 felt weaker from $1.3404. In the recent weeks the recent currency has rallied in the middle of a worldwide improvement in the risk appetite but on the other hand the euro zone is staying behind. Mr. Jan who is the head of Asian research at Rabobank was of the view that majority of the people will be concerned because of the development prospects in the euro zone didn’t improved as it did in America.
Mr. David who is a market analyst was of the view that the prices of the oil will probably test the $55 barrel level prior to facing the confrontation. In the meantime, the June bund futures agreement begun at 121.97, it came down by 0.02. In a different place spot gold was over nine hundred dollars a troy ounce, after a very impressive performance in New York.
Brazil’s Real witnessed a six month increase
May 6th, 2009
Encouraged by a rally in the stocks and services across the world the Real of Brazil increased a six month high. The currency became stronger 2.4 percent at 2.1195 per American dollar which is the maximum since November 10. The real rose 9.1 percent in the current year which is considered the finest performance amongst the other currencies of the world after rand of South Africa.
Mr. Mario who is the foreign exchange manager at Sao Paulo based Fair Corretora de Cambio was of the view that with the investors making a return to the stock market of Brazil, it will benefit the real. For the first time the Bovespa stock index increased more than fifty thousand since September with the rumors of growth outlook getting better for two of the country’s main export markets and it will encourage for services.
The real also became stronger with the rally in services prices and country’s two-third exports comprises of iron ore and raw materials. Mr. Jorge who is a foreign exchange manager at Rio de Janeiro-based Banco Prosper SA, the bouncing back of the services prices means extra income from the foreign deals and it will only increase the currency.
According to the Trade Ministry, the trading in Brazil increased from March’s $1.76 billion to $3.70 billion in April as China increased the imports of Brazilian services. According to a survey by some of the best analysts, the outcome was more than the median $3.13 billion. The survey conducted by the central bank the analysts make a prediction of 0.29 percent reduction in Brazilian economy in the current year as compared to the downfall of 0.38 percent which was approximated last week.
In nine months for the first time, the manufacturing developed in China while the American building expenditure concluded a six-month downfall. At an auction the central bank of Brazil settled to lend $804 million of a total of $1 billion to the local banks from foreign reserves. As per a statement the bank acknowledged 13 bids. The yield for Brazil zero-coupon bonds due January 2010 increased three basis points to 9.78 percent.
Berkshire Hathaway holds their annual shareholders meeting
May 6th, 2009
The annual shareholder meeting of Berkshire Hathaway Inc was an assortment of both predictable and unpredictable as Mr. Warren who is the chairman and Mr. Munger who is the vice chairman responded to the queries of investors. This years’ convention was a little different from the previous ones as this time around to avoid any individual query, the reporters have pre-screened the questions. As in the previous meetings Mr. Warren was asked about his relationship with Jesus and what he thinks about the game of baseball.
Mr. Warren who is 78 years old presided over the session along with different sayings, viewpoints, and also offered opening outline of how the company performed in the first quarter. According to the reports the entire results will be listed for next week.
The main focus of the annual meeting was mainly revolving around the matter that who will be taking over Berkshire Hathaway after Mr. Warrant mortality and the investors seemed also quite concerned about it. Mr. Warren didn’t mentioned any name that who will be succeeding the positions of CEO (Chief Executive Officer) and CIO (Chief Investment Officer) but the did mentioned about the candidature and about their performance. First quarter operating earnings of Berkshire Hathaway came down from $1.9 billion to $1.7 billion last year.
Mr. Warren confirmed that over last year the company’s book value per share came down by six percent and the reason behind is because of the downfall in the investments value.
Losses and profits from unoriginal are mainly shown in the net income which was not disclosed. Mr. Warren always has made a selection for those stocks which will be having everlasting value. While most of his investments include utilities and insurance, such firms and non-insurance working firms have experienced terrible economic condition. Early in the meeting one vital question which was asked to Mr. Warren was the fresh Moody’s reduction of Berkshire from Aaa to Aa2. Mr. Warren expressed his confidence that the downfall will not be making any difference to the company.
The board of Berkshire has selected four contenders, both externally and internally, for the position of Chief Investment Officer and three internal contenders for the Chief Executive Officer position. Mr. Howard who is the son of Mr. Warren will be handling the Berkshire’s management and taking over as the Chairman along with fifty billion dollar portfolio will get separated between the chairman, CIO and CEO. Four of the deserving contenders for the post of investment officer were unsuccessful to face 38% downfall S500 Index of S&P in the year 2008.
Uncertainty still prevails whether the profits will continue even after the rise in Asian shares
April 13th, 2009
With the preceding week’s profits on Monday the Asian shares witnessed a high once more along with the rise in the financial stocks through the turn down of the service stocks in Australia. The Nikkei of Japan rose to 2.3 percent, NZX-50 of New Zealand had an addition of 0.5 percent, and Kospi of South Korea gained a high by 1.1 percent. But some of the market analysts were not confident about the continual of the market mood due to the economic slump in America.
One of the experts at RBC Capital Markets was the of the view that with some good days in American market previous week the risk seekers will be able to have their first victory after so many months. Last week The Dow Jones Industrial Average increased to 9.01 percent. No main feedback is observed to the remarks made by Mr. Ben who is the Chairman of Federal Reserve. He was the first Federal chairman to be televised on sixty minutes in over two decades. He said that he believes that the economy will soon get normal and this will only happen after the stabilizing of the various banks and financial markets.
Nymex crude oil decreased in the field of electronics after OPEC chose to support enhanced compliance along with the current decrease amid doubts that with the high prices it could endanger the chances of bouncing back in the world economy. Economic stocks witnessed an increase with UFJ FG of Mitsubishi by 4.5 percent, Shinsei Bank increased by twelve percent, and Sumitomo Mitsui FG increased by 5.3 percent. Macquarie included 3.6 percent and Australia’s Commonwealth Bank increased by 3.5 percent.
According to a person having knowledge about the situation the government of Australia has extended the review of China’s Aluminum Corp or the planned US $19.5 billion investment in Rio of Chinalco. Also with an institutional shareholder with Australian Foundation Investment Co was of the view that Chinalco would give major authority and they don’t even have to pay the premium.
Pioneer shares increased by ten percent in Japan while they were not involved in talks with Mitsubishi Electric. According to Yomiuri Shimbun weekend report, the two had started discussion on alliance in car navigation and other fields of auto parts. In Korea the auto stocks were superior following the posting of the good sales in Europe as compared to their competitors. Kia Motors witnessed a high of 4.1 percent and Hyundai Motor increased by 2.1 percent.
In New Zealand Sentiment was assisted by Nuplex saying that for the time being their banks had given up agreements for its senior debt cover ratio and they are also planning a NZ$110 million capita increase.
Their shares got suspended from trade but in the midst of the active stocks, Mainfreight collected 4.0 percent and Pike River Coal increased by ten percent. The market of currency was uneven where the euro dropped early as compared to the yen of Japan and American dollar. After falling to $1.2832 as compared to Friday’s in New York $1.2919 and Y126.38 in Asia the euro was lately recorded at $1.2872. The American dollar was approximately at Y98.11 at first falling to Y97.56. A group of twenty central bankers and finance ministers discussed all new steps in facing the economic slump.
The profit of China Mobile up by 29.6 percent for the year 2008
April 13th, 2009
On Thursday China Mobile Ltd which is the largest phone company across the world made a statement that their profits for the year 2008 increased 29.6 percent regardless of the slow economy. It was also said that it will benefit from stimulus expenditure in Beijing. One of the Beijing’s company said that the earnings increased to 112.7 billion yuan as the revenue increased 15.4 percent to 412.2 billion yuan regardless of the slump and earthquake in China.
According to the statement released by the company, the China Mobile added over 7.2 million new customers every month in the year 2008 which helped in increasing the total to 456 million accounts. According to the number of customers which is estimated at 649 million accounts, China is ranked as the world’s largest cell phone market.
In a statement made by the chairman and Chief Executive Officer Mr. Wang, the year of 2008 was the year of the challenges and the group attained new heights in different fields. Various efforts made to develop the business really helped in flourishing the business. According to the China Mobile Ltd they are anticipating to earn profit from the China’s four trillion yuan stimulus. This way the demand will be increased for the telecom services and will also support government hard work for encouraging domestic development of the technology.
The economic development of China considerably came down to 6.7 percent for the final quarter of the year 2008 and it was down by 2007’s growth of thirteen percent. There is a prediction that in the current year the development rate will decrease to as low as five percent but it will be a major one as compared to any other main economy. Different carriers and China Mobile Ltd experienced heavy loss in the earthquake that hit Sichuan in the southwest of China on May 12th which killed around ninety thousand. One of the employees of the China Mobile Ltd died during the maintenance work.
In a statement China Mobile Ltd said that they suffered no considerable losses due to the economic crisis across the world. Mr. Wang was quite positive about the rollout of the Chinese Mobile of their 3G cell phone mobile network. The whole system is totally based on Chinese standard and it has not been used before. The experts are of the view that the company probably will face some tests if the company provides the complete services that is based on the technology.
The previous year Beijing reorganized their telecom industry in order to refresh the level of competition. They want to reorganize the carriers in the states in three different groups every carrier with the fixed and mobile resources. Mr. Wang gave a statement that China Mobile Ltd will seek more and more overseas investments but he didn’t mentioned any concrete target markets. In the beginning this year for developing the network, the company will be investing five hundred million with its subordinate in Pakistan, CM Pak Ltd.
The Dollar made a major downfall
April 13th, 2009
As the Federal Reserve is preparing for buying Treasuries promoted a rumor of degrading the greenback, the dollar came down against the currencies of the six of the main American business associates ever since the Plaza Accord which took place a quarter century ago. In an interview Mr. Bill who is co-chief investment officer of Pacific Investment Management Co. made a statement that it has given rise to the currency related problems to the degree which has led the Fed to purchase what is not liked by the foreign owners.
He also added that the Fed can easily maintain the rate of interest where they want at least from six to eighteen month but in the future it has its own disadvantages. With the central bank making a decision for increasing their balance sheet by $1.14 trillion lowered yields which reduced the value of US assets. This week since the month of January for the first time American currency came down further than $1.36 per euro.
With the Fed’s move encouraged the progress in the commodities, the New Zealand dollar and Norwegian Krone rallied. Yesterday the dollar decreased 4.7 percent in value from $1.2927 at $1.3581 per euro on March 13. On March 19 the American currency reached $1.3737 which was considered the best of the levels since January 9. The dollar also registered a drop of 2.1 percent from 97.94 to 95.93 yen. For a fifth week as compared to the yen, yesterday the euro increased 2.8 percent to 130.28 from 130.48 which was the highest level since December 18.
This week the trade-weighted Dollar Index of ICE came down 4.0 percent at 83.82. This was considered to be the highest reduction since the week in the month of September 1985 when the countries like Japan, West Germany, America, France, and Britain decided in bringing together the dollar’ depreciation as compared to deutsche mark and the yen.
On March 18 the American currency came down 3.2 percent as compared to the euro which is considered to be the highest fall since the sixteen nation’s currency debut back in the year 1999. Mr. David
Mr. David who is the global head of foreign-exchange planning at Barclays Capital in London in an interview said that the falling of the dollar this week has been valued in the policy reaction. This week the stocks witnessed progress and the crude oil. The 500 Index of Standard & Poor raised 1.5 percent and the crude oil increased more than fifty dollars a barrel.
As compared to the dollar the Krone of Norway came out as a major player where it increased seven percent at 6.376. As compared to the American cents the Australian dollar increased 4.3 percent. Norway is the biggest exporter of the crude oil and sixty percent of the abroad sales of Australia comprises of the raw materials. The peso of Colombia raised 3.5 percent at 2,358 per dollar.
According to Mr. Wen, the foreigners have fifty percent of the profitable Treasury debts. China is a major foreign holder along with $739 billion and China is concerned for the holdings of Treasuries and they expect a promise about the safety of the investments.
Goldman Sachs Group Inc has increased their betting objectives on March 19 to the dollar at $1.39 per euro. On the same day Citigroup Inc. also gave a proposal that their customers will buy the euro against the dollar. As the Japan bought the government notes and made the subordinate loans in banks to encourage the economy the yen came down a three month low as compared to the euro.
Ringgit of Malaysia move towards five week high
April 13th, 2009
Following the rumors of American attempts for removing the bad assets from the banks, Malaysia’s ringgit jumped a five week high. It will help in opening the credit and encourage the up-and-coming market assets and the bonds also registered a fall. The currency witnessed a rise for the fourth day versus the dollar. This happened after the statement made by the American Tresury for financing around one trillion dollars for buying the bad assets in order to renew the economic business.
MSCI Asia Pacific Index for the regional stocks increased on the second day and it is heading towards the biggest close in the two months. According to Mr. Lim who is the head of treasury at ECM Libra Investment Bank Bhd in Kuala Lumpur there is still hope as for the stock market to rise seeing the steps taken by the America. According to the available data in Kuala Lumpur, the rinngit increased 0.3 percent at 3.6264 per dollar. It touched 3.6201, the highest since February 17th.
According to EPFR Global of Massachusetts which is a research company which manages funds worth eleven trillion dollars, the investors are placing $348 million in the equities of the up and coming market. Asia’s five famous currencies increased in which the yen was not included after Mr. Timothy who is Treasury Secretary made a statement that America will be using seventy-four billion dollars to hundred billion dollars for purchasing property assets. It is evident that Public Private Investment Program is dependant on Federal Deposit Insurance Corp and Federal Reserve financing debt assurances.
This year the ringgit dropped down 4.7 percent. For the consecutive second day three year bonds declined and this lifted the yields. The next week the government is also making plans for selling extra securities. According to Bank Negara of Malaysia which is responsible for the sales for the treasury, on March 30th Malaysia will use 4.4 billion ringgit for auction of 2012 notes.
As per their debt schedule next month one more time the government will be selling three year bonds. Mr. Wei who is a fixed income analyst with OSK Investment Bank Bhd in Kuala Lumpur said that as the calendar for auction has been skewed in the direction of temporary bonds, there is still hope some selling difficulties in the three year time. He also added that the supply will increase in the coming month. The price slashed down 0.32 and the basis point is 0.01 percentage point.
Once more Asian shares are on a rise
April 13th, 2009
On Tuesday the Asian shares once again increased which was maintained by a public gathering on Wall Street for detoxifying the banks of their unpleasant loans. Nikkei 225 of Japan increased 2.1 percent after it increased 3.3 percent along with S&P/ASX 200 of Australia increase by 1.4 percent and Kospi Composite of South Korea up by 1.1 percent. NZX-50 also increased 2.3 percent.
The Dow Jones Industrial Average crossed 6.7 percent on Monday as the investors accepted the particulars for the Treasury’s plans for relieving the banks from the debt. The financial field of S&P 500 increased seventeen percent. Mr. Philip who is the first NZ Capital Broker said that this is related to the basic matters which have now being addressed to in America.
The experts at UBS were of the view that they were anticipating rally in stocks to be one more bear market alteration. Mr. Alex who is a senior dealer with ANZ gave his comment as it is quite madness with the things taking place in the equity market. He also said that he would like to make use of an expression i.e. caveat emptor which means that buyer be cautious. The financial stocks making good progress with the ANZ of Australia increased by 3.5 percent, Adelaide and Bendigo Bank increased by 6.1 percent, Suncorp Metway increased by 3.3 percent and Commonwealth Bank up by 4.6 percent. In Tokyo Mitsubishi UFJ FG increased by 5.5 percent along with Sumitomo Mitsui FG increase of 3.8 percent and Mizuho FG up by 6.3 percent.
In Tokyo the insurers also increased along with Tokio Marine up by 5.1 percent, but there are chances that some of the profit-takers will turn up in the Japan’s shares. The commodity plays were associated by the strong base metals along with Rio Tinto increased by 5.7 percent, Bluescope Steel up by 4.2 percent, Arrow Energy up by 3.8 percent, BHP Billiton increased by 3.1 percent. OZ Minerals came down fifteen percent with the Foreign Investment Review Board expanded their evaluation of China Minmetals’ A$2.5 billion offer for takeover spoiling the planning of OZ of rapid sanction of the contract.
After having the fresh profits auto stocks didn’t performed well enough. Since February 17th the main index of New Zealand for a short time touched its maximum level. Fisher & Paykel Appliances increased by 8.1 percent, Telecom +4.2 percent, and Fletcher Building increased by 4.8 percent. With the euro at Y133.34, the Japanese yen constantly registered a fall with its maximum level since October 21. The euro also touched $1.3670 from $1.3644 along with the American dollar at Y97.65 from Y96.90.
The yen crossed the Australian dollar hit Y69.24 which is its biggest level since November 10th and the Pound reached Y142.52 which was its best since December 1st. According to Mr. Sean who is a Westpac’s senior currency strategist, the merging of the dollar probably will continue. It also included the selling of the euro in the middle of a talk about the possible step taken by European Central Bank in the direction of quantitative easiness should decrease. The quantitative easing is not possible next week. At the dollar’s cost the currencies of Asia increased along with the greenback fell at KRW1, 384.04 versus Korean won from KRW1, 391.59 on Monday.
Despite of the fall in American Treasurys the Asian government bonds were mixed. May Nymex crude oil futures came down twenty percent at $53.58 per barrel on Globex from rising up to $1.72 in New York.
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Stock gains pushed US dollar up against yen
Monday, October 13th, 2008
On Tuesday, dollar moved up session high as strengthened by recovery in stock bazaar of US with the rise in technology shares. A gain in US equities was observed buoyed by $700-billion rescue scheme of government of United States.
Investors are hoping that the bailout package will help in soothing down the lending as well as strengthen the capital spending.
After trading half percent up at 105.94 on Monday, dollar rose session high at 105.99 against the yen at EBS.
Director of foreign exchange trading at Scotia Capital in Toronto, Steven Butler, said that according to the scenario it looks like the trading sector is being forced to buy US currency. He also said that while the rise in stocks is easing the market, it still doesn’t t mean much as the market is unstable.
On Monday the Australian dollar rose to a three-week high
Tuesday, October 7th, 2008
Maintaining the craving for high yielding currencies after the government of America declared a plan that will help in stabilizing worn out financial system, on Monday the Australian dollar witnessed a three-week high. In a week three-year Australian bond futures posted their major one day downfall with a loss of 0.22 points at 94.44 along with the ten year bond contract came down 0.254 points to 94.194.
With the investors came back to their trades, the Australian Dollar also increased as compared to the yen. The local currency was at 88.43 yen off at 89.78 which is a two-week high of 89.78, but up from 86.59 on Friday. It was around 4:10 p.m. that the Australian dollar was at $0.8299 as compared to American dollar, already raised to $0.8402 which was a three week high earlier.
On September 17th the Australian dollar came down to $0.7799 which was one-year low with the credit markets witnessed disorder of the carry trades. It also reduced the whole viewpoint of universal development and prices for the goods/services. On Friday the American Treasury moved to settle the financial markets, with a plan worth $700 billion for the purchasing of the bad mortgage related liabilities from various financial institutions. This also included American units of foreign banks in an attempt to stem the most awful financial crisis.
According to Mr. Joseph Capurso who is a currency strategist at Commonwealth Bank, risk hunger has been strengthened considerably on American news and with this the markets has been confident that a major upset may be saved. If the plans are accepted by the market then there are probabilities that this week we can witness a rise in the Australian dollar.
After the investment bank Lehman Brothers fell down the American package came up, the Federal Reserve gave $84 billion in help to American International Group and Treasury took over the mortgage leaders Fannie Mae and Freddie Mae. Morgan Stanley and Goldman Sachs also renounced their status of investment banking to be converted into bank holding companies those are controlled by American Federal Reserve for providing security in financial scarcity.
The Australian dollar also increased with the high prices of commodity along with the increase in oil prices which is stable over $104 a barrel and the gold with $867 per ounce. For the past few years Australia has been very good with the resources and is a big exporter of products/services. On Monday Australian Bureau of Agricultural and Resource Economics was of the view that both the iron ore and copper will be going ahead from its previous predictions.
Morgan Stanley signs a letter to sell 20% stake
Tuesday, October 7th, 2008
On Monday, Morgan Stanley announced that a letter has been signed with objective of selling of 20 percent of the firm to Mitsubishi UFJ Financial Group Inc.
The firm did not disclose the financial terms of the deal. While the letter signed by the banks is said to be nonbinding, Morgan Stanley hopes to raise a price based on its book value following the completion of diligence review by the largest bank of Japan, if the deal is done.
The whole idea of the deal comes after the approval from fed to Morgan Stanley for becoming a bank holding firm. This major investment bank of Wall Street was allowed by Federal Reserve to become commercial bank in order to accept deposits. Now, this key firm of Wall Street will not be regulated by Securities and Exchange Commission anymore; instead will come under the Federal Reserve.
Morgan Stanley’s chairman and chief executive, John Mack, in a statement said that the deal would give opportunity to grow to both the banks as well as chance to make it big globally. He also added that the partnership would help the changeover of Morgan Stanley to a commercial bank as well as give a financial support to the firm in shoring its capital base in the time of credit crisis.
Past week has been busy with reports of sale of Merrill Lynch & Co to Bank of America, filing of bankruptcy by Lehman Brothers Holdings Inc and selling of Morgan Stanley.
Indian Rupee touches 2 year low against greenback
Monday, October 6th, 2008
Rupee reclaimed its ground at 45.85/86 against US dollar, after it lowered down in early trade with a two year low of 46. The gain had been a result of drop in local stocks and dollar’s weak position in abroad.
The Indian rupee strengthen at 45.53/55 against dollar after it had a close of 45.75/76 and later the currency reached 45.46, pushed by fall of dollar against major currencies. Although in late morning trade, rupee dropped to 45.85/86 against dollar, a level last reached in 10th October 2006 with a close of 45.80/81 a dollar.
In early trade, the Indian currency was found 25 paise down to 46 in opposition to greenback. According to foreign exchange dealers, the outcome of rupee hitting a low is a result of fall of Asian stocks as well as fine amount of dollar purchase done by banks.
Greek Unemployed Rate Falls to 10 Yr Low In 2Q
Friday, October 3rd, 2008
The quarterly unemployment rate of Greece came down to 7.1% in the second quarter of the year and the most striking part is that it is their ten year low. According to the data available from National Statistics Service on Thursday, it came down from 8.2% rate in the first quarter. According to the available data there was an ongoing job increase in just about all the industries and areas and brought continual unemployment rate in order with the Euro-zone averages in Greece.
According to a statement by Manolis Kontopyrakis who is the chief of the statistics services, with this data we are very pleased that we are experiencing a downfall in unemployment in all areas and sectors of the country. He also added that we have sufficient facts and figures to make a prediction that in the coming two quarters the ratio of unemployment will fall down more. This is for the first time that the yearly rate of unemployment for the current year will be below eight percent since the analysis got began in the year 1998.
Especially for the current year Mr. Manolis made a prediction that the standard rate of unemployment would be 7.7%. According to the new received data as compared to first quarter’s 4.50 million, the number of employed went up to 4.56 million in the second quarter. In the second quarter the unemployment rate for male was 4.6% which also witnessed a downfall from a 5.4%. As for the females the unemployment came down to 10.8% which was earlier 12.2%
Going according to the age group, the unemployment rate mainly comprised of the young population, here also the unemployment for the age group between 15-24 age groups came down to 15.4% in the second quarter which was 17.3% in the first quarter. Going according to the region in the year’s first three months main unemployment rate was in the industrial region of Western Macedonia where the unemployment was 12.3% which came down a little from 12.5%.
The islands of northern Aegean having the lowest unemployment rate, here also the unemployment fell to 4.1% in the second quarter earlier which was 5.3%. Attica where half of the Greek population lives, unemployment rate came down to 6.0% in the second quarter from 6.5% in the first.
Greece is happy with a healthy economic growth i.e. of 3.4% in the second quarter so far which is not influenced by any financial problems. But the employment opportunities stayed poor and were quite behind the average mark.
Dollar falls as Lehman talks of filing for Bankruptcy
Wednesday, October 1st, 2008
Monday witnessed a fall in US currency in Asian trade bazaar, as Lehman Brothers statement raised concerns regarding stability of financial system of United States. The Brothers sparked possibility of rate cut by Federal Reserve, by confirming about their plans for filing for bankruptcy.
From Friday’s closing point of 107.86, US dollar fell 2.3 percent down at 105.45 yen . Whereas the euro stumbled from 153.43 to 152.26 yen. With trade being thin during holiday in Japan, yen gained heavy with investors hanging on to it. Yen hasn’t gained this big since 2002.
On Sunday, chain of urgent and emergency actions was taken by Federal Reserve. The measures were aimed at controlling economical markets as well as to calm down commotion or disturbance following the end of Lehman. Out of the steps measures, one major step was to take equities the same as collateral. According to this change, equities will taken as collateral in support of cash at special credit facility. Fed has taken such step first time in its history so far.
Head of investment research at Bank Julius Baer, V. Anantha Nageswaran, called Federal Reserve’s such ability as a negative point for the United States currency. On Monday, Treasuries scaled on to the concern regarding Lehman, as the measures for rescuing Wall Street investment bank weakened along with the talks that insurer AIG was in quest for urgent funding. According to the statement made by Lehman Brothers, the firm would file for economic failure. Lehman also added that the filing would not include any of its broker-dealer subsidiaries.
In the meantime, reports came regarding acquirement of Merrill Lynch & Co Inc by Bank of America Corp for an amount of $44 billion.
Head of bond fund Pimco, bill gross, said that the decision of filing for bankruptcy could lead to turbulence in the market.
America faces business differences against China
Tuesday, September 30th, 2008
According to China’s WTO mission on Friday, China has started a dispute against America at WTO (World Trade Organization) over the American actions of importing certain steel pipes, woven sacks, and tyres. According to a statement, believing that two-sided discussion between China and America failed to resolve the problems of China. China had asked for consultation with America under the WTO dispute settlement mechanism concerning those measures.
This is the second trade case that was initiated by China. It is evident that it was in the previous year’s month of September when China challenged the actions of America against their imports of coated sheet paper. One of the Chinese officials was of the view that going according to the consultations under WTO dispute method with America, Washington had ruled out that there is in fact no danger to the American business of paper and for that case there are no actions that needs to be used.
Without going to WTO panel China solved the case in their favor, though WTO didn’t gave any sort of confirmation that the case was really solved. It was the year of 2002 when China joined the case, after few months of joining the WTO, started by European Union against American actions on steel imports which afterwards America lost. China being the second largest exporter regularly has to face trade issues and America challenged China so many times from importing taxes on car parts to the safeguarding of the intellectual property.
It was the July’s unsuccessful ministerial talk looking for a get through in WTO’s Doha round where China conflicted with America over America calls to get rid of the taxes in some of the industrial areas and suggestions to protect the countries from the impact of agricultural tax cuts. According to mission statement, China has time after time showed their concern to America about the Commerce Department actions undertaking unjustly pricing, Chinese subsidies for various products, and imports. These include- round welded carbon quality steel pipe, laminated woven sacks, light-walled pipes and tubes in rectangular shape, and new pneumatic off-road tyres.
Week high rise in Taiwan Dollar
Thursday, September 25th, 2008
Monday witness a week high rise in Taiwan Dollar on quick foreign finance inflows following a stock market pushed forward, due to intervention to lift the local currency by central bank. Taiwan Dollar augmented to around T$31.498 to USD, which is 1.2 percent higher to T$31.875 i.e. the close of Friday.
The soaring point of the day was also the strongest intraday level ever since September 1. The Taiwan dollar had soared to a high of T$31.610, by 0239 GMT. At the first hour and 30 minutes, the main Taipei Forex Inc exchange volume was $896 million, which was $426 million higher than what it was at the same period in preceding session.
After trending down for last few months following the weak status of stock market, on Monday the Taiwan Dollar recovered from its losses. However, the currency is stills 5.3 percent low since it touched a 10-1/2-year high of T$30.
According dealers in Taipei, the Taiwan dollar has experienced a huge push following the improvement in Taiwan stocks, which got its boost due to foreign fund buying. With central bank trying to support and sustain Taiwan Dollar for last few months, officials on Friday made calls to dealers inquiring about USD purchases with currency hitting six and half month lows. Many dealers said the move of central bank of Taiwan calling up to inquire about USD was intended to make sure the Taiwan currency does not deteriorate or weakens after hitting six and half months lows.
With six-month NDFs quoted at -0.430/-0.380 in contrast to Friday’s session of -0.180/-0.130, USD sales were in on the go momentum, in non-deliverable forwards market. This clearly meant that the investors believed in huge degree strengthening of Taiwan Dollar, in half a year. From the last close of T$31.903, Taiwan Dollar toughened to T$31.610 to the USD on smaller Cosmos exchange.
Traders look forward to ECB and Boe, as the dollar trips
Tuesday, September 23rd, 2008
With traders locking in profit from the remarkable gains by dollar in last few weeks, Thursday saw the currency slipping down the board. As the dollar slipped, investors anticipated interest rate judgments by European Central Bank and Bank of England.
On Wednesday Euro touched an eight month low, as the US currency positioned itself to smash a five-day winning line. After the rate pronouncement, traders were left to anticipate any comments from Jean-Claude Trichet, the ECB president.
The rates are being left unchanged by ECB at 4.25 percent. While re-leaping collateral regulations, it is being anticipated that ECB might issue new set of financial or economical projections. The rate announcement is expected to come at 1145 GMT prior to a news conference of Jean-Claude Trichet.
Analysts and experts are expecting Jean-Claude to steady his acknowledgment slow and lower growth with a strict and sturdy attitude on the consequences of knock-on price rise.
Strategist at RBS Global Banking, Paul Robson, said that people hoping that Jean-Claude would maintain his tough attitude. He said that the new collateral regulations as well as the higher inflation outlook and descending growth prediction is expected to offered mixture of policy issues for the market and experts to think over, which might add to instability of euro.
Robson also added that the day of unchanged rates in UK and euroland could prove to be a remarkable one with the press conference of ECB. Rate decisions from central bank became the theme for the day, as Riksbank of Sweden raised the rates to 4.75 percent by 25 basis points in highly anticipated decision. But with a prediction of a fall in borrowing costs in upcoming weeks has put Sweden under a pressure of selling.
The European currency rose to $1.4510 as it pulled back from the previous day’s hit of $1.4384, a 0.1 percent of rise since January, where as the dollar was found moving up as it touched 108.50 yen.
With a 0.4 percent of increase in oil prices, the currency of US was weighed down as the dollar index .DXY skidded to 0.1 percent. The fall in oil prices is recovering from a fall of 9 percent so far in the current week.
Prior to any holding of rates by BoE at 5 percent, Sterling moved up to $1.7820 with a rise in 0.4 percent. But in order to support weak economy there is expected a cut in the works. On Wednesday, the anticipation of cut has pushed the currency of UK to a two and half year low.
Following an announcement from Riksbank, euro moved up to 9.4761 with a 0.2 percent rise.
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Reserve Bank of India generated surplus on weak rupee
Monday, September 22nd, 2008
Reserve Bank of India has cashed huge surplus on weak rupee. To stay steady in foreign exchange market, RBI sold a part of Forex reserves.
RBI has witnessed an increase in its growth by 45% for year 2007-2008 from foreign exchange market. The record growth is assisted with a record Rs 15,011 crore surpluses transferred to the government, whose accounting year finished in the June of 2008.
The total income of central bank rose 41 percent more, as it saw the growth of income from initial amount of 41,039.73 crore (the profit earned by the sale of SBI shares is excluded) to Rs 57,750 crore in the year 2007-2008. Central bank’s major source of income is foreign exchange operations, capital gains/losses on foreign currency securities, discounts gains/losses in Forex trading, and comprising interest.
With 90 percent of Reserve Bank of India’s income being generated from foreign exchange, the financial year of 2007 saw an increase in foreign sources as it went soaring from Rs 35,152.99 crore to Rs 51,883.27 crore.
Another area of profit used by central bank was the sale of dollar since the beginning of April, when dollar reached higher level of price from the level it was brought, which benefited the bank a lot. Reserve management strategy of the bank for the year included a prominent feature where it pulled out of deposits with reign commercial banks those hit by sub-prime emergency.
Since central bank has been lending to banks suffering tight cash situations on regular basis, it is expected of it to profit from hike in repo rate in the existing year. The cash situation of many banks has been stiffening up due to a hike in reserve requirements (CRR) by the central bank, which is a part or amount of deposits with the Reserve Bank of India. The funds or amount of money parked with central bank as CRR does not provides any interest rates to banks.
Monday, October 13th, 2008
On Tuesday, dollar moved up session high as strengthened by recovery in stock bazaar of US with the rise in technology shares. A gain in US equities was observed buoyed by $700-billion rescue scheme of government of United States.
Investors are hoping that the bailout package will help in soothing down the lending as well as strengthen the capital spending.
After trading half percent up at 105.94 on Monday, dollar rose session high at 105.99 against the yen at EBS.
Director of foreign exchange trading at Scotia Capital in Toronto, Steven Butler, said that according to the scenario it looks like the trading sector is being forced to buy US currency. He also said that while the rise in stocks is easing the market, it still doesn’t t mean much as the market is unstable.
On Monday the Australian dollar rose to a three-week high
Tuesday, October 7th, 2008
Maintaining the craving for high yielding currencies after the government of America declared a plan that will help in stabilizing worn out financial system, on Monday the Australian dollar witnessed a three-week high. In a week three-year Australian bond futures posted their major one day downfall with a loss of 0.22 points at 94.44 along with the ten year bond contract came down 0.254 points to 94.194.
With the investors came back to their trades, the Australian Dollar also increased as compared to the yen. The local currency was at 88.43 yen off at 89.78 which is a two-week high of 89.78, but up from 86.59 on Friday. It was around 4:10 p.m. that the Australian dollar was at $0.8299 as compared to American dollar, already raised to $0.8402 which was a three week high earlier.
On September 17th the Australian dollar came down to $0.7799 which was one-year low with the credit markets witnessed disorder of the carry trades. It also reduced the whole viewpoint of universal development and prices for the goods/services. On Friday the American Treasury moved to settle the financial markets, with a plan worth $700 billion for the purchasing of the bad mortgage related liabilities from various financial institutions. This also included American units of foreign banks in an attempt to stem the most awful financial crisis.
According to Mr. Joseph Capurso who is a currency strategist at Commonwealth Bank, risk hunger has been strengthened considerably on American news and with this the markets has been confident that a major upset may be saved. If the plans are accepted by the market then there are probabilities that this week we can witness a rise in the Australian dollar.
After the investment bank Lehman Brothers fell down the American package came up, the Federal Reserve gave $84 billion in help to American International Group and Treasury took over the mortgage leaders Fannie Mae and Freddie Mae. Morgan Stanley and Goldman Sachs also renounced their status of investment banking to be converted into bank holding companies those are controlled by American Federal Reserve for providing security in financial scarcity.
The Australian dollar also increased with the high prices of commodity along with the increase in oil prices which is stable over $104 a barrel and the gold with $867 per ounce. For the past few years Australia has been very good with the resources and is a big exporter of products/services. On Monday Australian Bureau of Agricultural and Resource Economics was of the view that both the iron ore and copper will be going ahead from its previous predictions.
Morgan Stanley signs a letter to sell 20% stake
Tuesday, October 7th, 2008
On Monday, Morgan Stanley announced that a letter has been signed with objective of selling of 20 percent of the firm to Mitsubishi UFJ Financial Group Inc.
The firm did not disclose the financial terms of the deal. While the letter signed by the banks is said to be nonbinding, Morgan Stanley hopes to raise a price based on its book value following the completion of diligence review by the largest bank of Japan, if the deal is done.
The whole idea of the deal comes after the approval from fed to Morgan Stanley for becoming a bank holding firm. This major investment bank of Wall Street was allowed by Federal Reserve to become commercial bank in order to accept deposits. Now, this key firm of Wall Street will not be regulated by Securities and Exchange Commission anymore; instead will come under the Federal Reserve.
Morgan Stanley’s chairman and chief executive, John Mack, in a statement said that the deal would give opportunity to grow to both the banks as well as chance to make it big globally. He also added that the partnership would help the changeover of Morgan Stanley to a commercial bank as well as give a financial support to the firm in shoring its capital base in the time of credit crisis.
Past week has been busy with reports of sale of Merrill Lynch & Co to Bank of America, filing of bankruptcy by Lehman Brothers Holdings Inc and selling of Morgan Stanley.
Indian Rupee touches 2 year low against greenback
Monday, October 6th, 2008
Rupee reclaimed its ground at 45.85/86 against US dollar, after it lowered down in early trade with a two year low of 46. The gain had been a result of drop in local stocks and dollar’s weak position in abroad.
The Indian rupee strengthen at 45.53/55 against dollar after it had a close of 45.75/76 and later the currency reached 45.46, pushed by fall of dollar against major currencies. Although in late morning trade, rupee dropped to 45.85/86 against dollar, a level last reached in 10th October 2006 with a close of 45.80/81 a dollar.
In early trade, the Indian currency was found 25 paise down to 46 in opposition to greenback. According to foreign exchange dealers, the outcome of rupee hitting a low is a result of fall of Asian stocks as well as fine amount of dollar purchase done by banks.
Greek Unemployed Rate Falls to 10 Yr Low In 2Q
Friday, October 3rd, 2008
The quarterly unemployment rate of Greece came down to 7.1% in the second quarter of the year and the most striking part is that it is their ten year low. According to the data available from National Statistics Service on Thursday, it came down from 8.2% rate in the first quarter. According to the available data there was an ongoing job increase in just about all the industries and areas and brought continual unemployment rate in order with the Euro-zone averages in Greece.
According to a statement by Manolis Kontopyrakis who is the chief of the statistics services, with this data we are very pleased that we are experiencing a downfall in unemployment in all areas and sectors of the country. He also added that we have sufficient facts and figures to make a prediction that in the coming two quarters the ratio of unemployment will fall down more. This is for the first time that the yearly rate of unemployment for the current year will be below eight percent since the analysis got began in the year 1998.
Especially for the current year Mr. Manolis made a prediction that the standard rate of unemployment would be 7.7%. According to the new received data as compared to first quarter’s 4.50 million, the number of employed went up to 4.56 million in the second quarter. In the second quarter the unemployment rate for male was 4.6% which also witnessed a downfall from a 5.4%. As for the females the unemployment came down to 10.8% which was earlier 12.2%
Going according to the age group, the unemployment rate mainly comprised of the young population, here also the unemployment for the age group between 15-24 age groups came down to 15.4% in the second quarter which was 17.3% in the first quarter. Going according to the region in the year’s first three months main unemployment rate was in the industrial region of Western Macedonia where the unemployment was 12.3% which came down a little from 12.5%.
The islands of northern Aegean having the lowest unemployment rate, here also the unemployment fell to 4.1% in the second quarter earlier which was 5.3%. Attica where half of the Greek population lives, unemployment rate came down to 6.0% in the second quarter from 6.5% in the first.
Greece is happy with a healthy economic growth i.e. of 3.4% in the second quarter so far which is not influenced by any financial problems. But the employment opportunities stayed poor and were quite behind the average mark.
Dollar falls as Lehman talks of filing for Bankruptcy
Wednesday, October 1st, 2008
Monday witnessed a fall in US currency in Asian trade bazaar, as Lehman Brothers statement raised concerns regarding stability of financial system of United States. The Brothers sparked possibility of rate cut by Federal Reserve, by confirming about their plans for filing for bankruptcy.
From Friday’s closing point of 107.86, US dollar fell 2.3 percent down at 105.45 yen . Whereas the euro stumbled from 153.43 to 152.26 yen. With trade being thin during holiday in Japan, yen gained heavy with investors hanging on to it. Yen hasn’t gained this big since 2002.
On Sunday, chain of urgent and emergency actions was taken by Federal Reserve. The measures were aimed at controlling economical markets as well as to calm down commotion or disturbance following the end of Lehman. Out of the steps measures, one major step was to take equities the same as collateral. According to this change, equities will taken as collateral in support of cash at special credit facility. Fed has taken such step first time in its history so far.
Head of investment research at Bank Julius Baer, V. Anantha Nageswaran, called Federal Reserve’s such ability as a negative point for the United States currency. On Monday, Treasuries scaled on to the concern regarding Lehman, as the measures for rescuing Wall Street investment bank weakened along with the talks that insurer AIG was in quest for urgent funding. According to the statement made by Lehman Brothers, the firm would file for economic failure. Lehman also added that the filing would not include any of its broker-dealer subsidiaries.
In the meantime, reports came regarding acquirement of Merrill Lynch & Co Inc by Bank of America Corp for an amount of $44 billion.
Head of bond fund Pimco, bill gross, said that the decision of filing for bankruptcy could lead to turbulence in the market.
America faces business differences against China
Tuesday, September 30th, 2008
According to China’s WTO mission on Friday, China has started a dispute against America at WTO (World Trade Organization) over the American actions of importing certain steel pipes, woven sacks, and tyres. According to a statement, believing that two-sided discussion between China and America failed to resolve the problems of China. China had asked for consultation with America under the WTO dispute settlement mechanism concerning those measures.
This is the second trade case that was initiated by China. It is evident that it was in the previous year’s month of September when China challenged the actions of America against their imports of coated sheet paper. One of the Chinese officials was of the view that going according to the consultations under WTO dispute method with America, Washington had ruled out that there is in fact no danger to the American business of paper and for that case there are no actions that needs to be used.
Without going to WTO panel China solved the case in their favor, though WTO didn’t gave any sort of confirmation that the case was really solved. It was the year of 2002 when China joined the case, after few months of joining the WTO, started by European Union against American actions on steel imports which afterwards America lost. China being the second largest exporter regularly has to face trade issues and America challenged China so many times from importing taxes on car parts to the safeguarding of the intellectual property.
It was the July’s unsuccessful ministerial talk looking for a get through in WTO’s Doha round where China conflicted with America over America calls to get rid of the taxes in some of the industrial areas and suggestions to protect the countries from the impact of agricultural tax cuts. According to mission statement, China has time after time showed their concern to America about the Commerce Department actions undertaking unjustly pricing, Chinese subsidies for various products, and imports. These include- round welded carbon quality steel pipe, laminated woven sacks, light-walled pipes and tubes in rectangular shape, and new pneumatic off-road tyres.
Week high rise in Taiwan Dollar
Thursday, September 25th, 2008
Monday witness a week high rise in Taiwan Dollar on quick foreign finance inflows following a stock market pushed forward, due to intervention to lift the local currency by central bank. Taiwan Dollar augmented to around T$31.498 to USD, which is 1.2 percent higher to T$31.875 i.e. the close of Friday.
The soaring point of the day was also the strongest intraday level ever since September 1. The Taiwan dollar had soared to a high of T$31.610, by 0239 GMT. At the first hour and 30 minutes, the main Taipei Forex Inc exchange volume was $896 million, which was $426 million higher than what it was at the same period in preceding session.
After trending down for last few months following the weak status of stock market, on Monday the Taiwan Dollar recovered from its losses. However, the currency is stills 5.3 percent low since it touched a 10-1/2-year high of T$30.
According dealers in Taipei, the Taiwan dollar has experienced a huge push following the improvement in Taiwan stocks, which got its boost due to foreign fund buying. With central bank trying to support and sustain Taiwan Dollar for last few months, officials on Friday made calls to dealers inquiring about USD purchases with currency hitting six and half month lows. Many dealers said the move of central bank of Taiwan calling up to inquire about USD was intended to make sure the Taiwan currency does not deteriorate or weakens after hitting six and half months lows.
With six-month NDFs quoted at -0.430/-0.380 in contrast to Friday’s session of -0.180/-0.130, USD sales were in on the go momentum, in non-deliverable forwards market. This clearly meant that the investors believed in huge degree strengthening of Taiwan Dollar, in half a year. From the last close of T$31.903, Taiwan Dollar toughened to T$31.610 to the USD on smaller Cosmos exchange.
Traders look forward to ECB and Boe, as the dollar trips
Tuesday, September 23rd, 2008
With traders locking in profit from the remarkable gains by dollar in last few weeks, Thursday saw the currency slipping down the board. As the dollar slipped, investors anticipated interest rate judgments by European Central Bank and Bank of England.
On Wednesday Euro touched an eight month low, as the US currency positioned itself to smash a five-day winning line. After the rate pronouncement, traders were left to anticipate any comments from Jean-Claude Trichet, the ECB president.
The rates are being left unchanged by ECB at 4.25 percent. While re-leaping collateral regulations, it is being anticipated that ECB might issue new set of financial or economical projections. The rate announcement is expected to come at 1145 GMT prior to a news conference of Jean-Claude Trichet.
Analysts and experts are expecting Jean-Claude to steady his acknowledgment slow and lower growth with a strict and sturdy attitude on the consequences of knock-on price rise.
Strategist at RBS Global Banking, Paul Robson, said that people hoping that Jean-Claude would maintain his tough attitude. He said that the new collateral regulations as well as the higher inflation outlook and descending growth prediction is expected to offered mixture of policy issues for the market and experts to think over, which might add to instability of euro.
Robson also added that the day of unchanged rates in UK and euroland could prove to be a remarkable one with the press conference of ECB. Rate decisions from central bank became the theme for the day, as Riksbank of Sweden raised the rates to 4.75 percent by 25 basis points in highly anticipated decision. But with a prediction of a fall in borrowing costs in upcoming weeks has put Sweden under a pressure of selling.
The European currency rose to $1.4510 as it pulled back from the previous day’s hit of $1.4384, a 0.1 percent of rise since January, where as the dollar was found moving up as it touched 108.50 yen.
With a 0.4 percent of increase in oil prices, the currency of US was weighed down as the dollar index .DXY skidded to 0.1 percent. The fall in oil prices is recovering from a fall of 9 percent so far in the current week.
Prior to any holding of rates by BoE at 5 percent, Sterling moved up to $1.7820 with a rise in 0.4 percent. But in order to support weak economy there is expected a cut in the works. On Wednesday, the anticipation of cut has pushed the currency of UK to a two and half year low.
Following an announcement from Riksbank, euro moved up to 9.4761 with a 0.2 percent rise.
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Reserve Bank of India generated surplus on weak rupee
Monday, September 22nd, 2008
Reserve Bank of India has cashed huge surplus on weak rupee. To stay steady in foreign exchange market, RBI sold a part of Forex reserves.
RBI has witnessed an increase in its growth by 45% for year 2007-2008 from foreign exchange market. The record growth is assisted with a record Rs 15,011 crore surpluses transferred to the government, whose accounting year finished in the June of 2008.
The total income of central bank rose 41 percent more, as it saw the growth of income from initial amount of 41,039.73 crore (the profit earned by the sale of SBI shares is excluded) to Rs 57,750 crore in the year 2007-2008. Central bank’s major source of income is foreign exchange operations, capital gains/losses on foreign currency securities, discounts gains/losses in Forex trading, and comprising interest.
With 90 percent of Reserve Bank of India’s income being generated from foreign exchange, the financial year of 2007 saw an increase in foreign sources as it went soaring from Rs 35,152.99 crore to Rs 51,883.27 crore.
Another area of profit used by central bank was the sale of dollar since the beginning of April, when dollar reached higher level of price from the level it was brought, which benefited the bank a lot. Reserve management strategy of the bank for the year included a prominent feature where it pulled out of deposits with reign commercial banks those hit by sub-prime emergency.
Since central bank has been lending to banks suffering tight cash situations on regular basis, it is expected of it to profit from hike in repo rate in the existing year. The cash situation of many banks has been stiffening up due to a hike in reserve requirements (CRR) by the central bank, which is a part or amount of deposits with the Reserve Bank of India. The funds or amount of money parked with central bank as CRR does not provides any interest rates to banks.
Forex: USD/JPY moves in ranges between 92.35 and 92.00
fxstreet.com
USD/JPY has been moving inside a range with support at 92.00 and resistance at 92.35, since the beginning of the American session. The pair is now near resistance zone of the range, in case the Dollar recovers further the next resistance lies at 92.55. On the other side, if the pair managed to break below 92.00 the next support lies at 91.70 and below at 91.40. Greenback is falling for the fifth consecutive week and is facing a downward trend that started two year ago.
USD/JPY has been moving inside a range with support at 92.00 and resistance at 92.35, since the beginning of the American session. The pair is now near resistance zone of the range, in case the Dollar recovers further the next resistance lies at 92.55. On the other side, if the pair managed to break below 92.00 the next support lies at 91.70 and below at 91.40. Greenback is falling for the fifth consecutive week and is facing a downward trend that started two year ago.
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